95-188� 11�'� � � � � Council File # I�� ��
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3 ��(� Green Sheet # I�.,'� 7y �
Presemed By
Referred To
RESOLUTION
OF SAINT PAUL, MiNNESOTA
Committee: Date
1 ACCEPTING PROPOSAL ON SALE OF
2 $3,110,000 GENERAL OBLIGATION STREET IMPROVEMENT
3 SPECIAL ASSESSMENT BONDS, SERIES 1995C,
4 PROVIDING FOR THEIR ISSUANCE, AND LEVYING
5 A TAX FOR THE PAYMENT THEREOF
6 WHEREAS, the Director, Department of Finance and
7 Management Services, has presented proposals received for the
8 sale of $3,110,000 General Obligation Street Improvement Special
9 Assessment Bonds, Series 1995C (the "Bonds"), of the City of
l0 Saint Paul, Minnesota (the "City"); and
il WHEREAS, the proposals set forth on Exhibit A attached
12 hereto were received pursuant to the Terms of Proposal at the
13 offices of Springsted Incorporated at 10:30 A.M., Central Time,
14 this same day; and
15 WHEREAS, the Director, Department of Finance and
16 Mana em nt Se ices ha adt/i ed this Council that the proposal
17 of��i�D�,7` i��9.��/'i1�7��vas found to be the most
18 advantageou an has recommended that said proposal be accepted;
19 and
20 WHEREAS, the proceeds of the Bonds will finance certain
21 street improvements to be specially assessed, for which the City
22 is proceeding pursuant to its Charter and not Minnesota Statutes,
23 Chapter 429, with any excess to be used for any other purpose
24 permitted by law; and
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WHEREAS, the City has heretofore issued registered
obligations in certificated form, and incurs substantial costs
associated with their printing and issuance, and substantial
continuing transaction costs relatinq to their payment, transfer
and exchange; and
WHEREAS, the City has determined that significant
savings in transaction costs will result from issuing bonds in
"global book-entry form'�, by which bonds are issued in
certificated form in large 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"j 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
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
WHEREAS, Midwest Securities Trust Company, a limited
gurpose trust company organized under the laws of the State of
Illinois, 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 there is
before this Council a form of letter agreement (the ��Depository
Letter Agreement") setting forth various matters relating to the
Depository and its role with respect to the Bonds; and
WHEREA5, 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
(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
smaller denominations unless the City determines to issue
Replacement Bonds as provided below; and
date
for
WHEREAS, the City will be able to replace the
Depository or under certain circumstances to abandon the ��global
book-entry form" by permitting the Global Certificates to be
exchanged for smaller denominations typical of ordinary bonds
registered on the City's bond register; and "Replacement Bonds"
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1 means the certificates representing the Bonds so authenticated
2 and delivered by the Bond Registrar pursuant to paragraphs 6 and
3 12 hereof; and
4 WfiEREAS, "Holder" as used herein means the person in
5 whose name a Bond is registered on the registration books of the
6 City maintained by the City Treasurer or a successor reqistrar
7 appointed as provided in paragraph 8(the "Bond Registrar"); and
8 WHEREAS, pursuant to Minnesota Statutes, Section
9 475.60, Subdivision 2(9), public sale requirements do not apply
10 to the Bonds if the City retains an independent financial advisor
11 and determines to sell the Bonds by private negotiation, and the
12 City has instead authorized a competitive sale without
13 publication of notice thereof; and
14 WHEREAS, proposals for the Bonds have been solicited by
15 Springsted Incorporated pursuant to an official Statement and
16 Terms of Proposal therein:
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NOW, THEREFORE, BE IT RESOLVED by the Council of the
City of Saint Paul, Minnesota, as follows:
1. Accentance of Pronosal. The proposal of Fidelity
Capital Markets (the "Purchaser") to purchase $3,110,00o General
Obligation Street Improvement Special Assessment Bonds, Series
1995C, 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 $3,083,455.10, plus interest acarued to settlement, is
hereby found, determined and declared to be the most favorable
proposal received and is hereby accepted, and the Bonds are
hereby awarded to the Purchaser. The Director, Department of
Finance and Management 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; Oriainal Issue Date• Denominations•
Maturities. The Bonds shall be titled "General Obligation Street
Improvement Special Assessment Bonds, Series 1995C", shall be
dated March 1, 1995, 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 upward. Global Certificates
shall each be in �he 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 paragraph 6, shall be
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1 in the denomination of $5,00o each or in any integral multiple
2 thereof of a single maturity. The Bonds shall mature on March 1
3 in the years and amounts as follows:
4 Year Amount
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1996
1997
1998
1999
2000
2001
For purgoses
maturities of
of the City�s
Bonds, series
Year Amount
$840,000 2002 $ 115,000
150,000 2003 115,000
125,000 2004 115,000
120,000 2005 115,000
120,000 2006 110,000
115,000 2007 1,070,000
of Minnesota Statutes, Section 475.54, the serial
the Bonds are combined with the serial maturities
$12,500,000 General Obligation Capital Improvement
1995B.
3. Purnose. The Bonds shall provide funds for the
construction of various street improvements (the "Improvements")
in the City, and any excess funds shall be devoted to any other
purpose permitted by law. The total cost of the Improvements,
which shall include all costs enumerated in Minnesota Statutes,
Section 475.65, is estimated to be at least equal to the amount
of the Bonds. Work on the Improvements shall proceed with due
diligence to completion.
4. Interest. The Bonds shall bear interest payable
semiannually on March 1 and September 1 of each year (each, an
"Interest Payment Date"), commencing September 1, 1995,
calculated on the basis of a 360-day year of twelve 30-day
months, at the respective rates per annum set forth opposite the
maturity years as follows:
29 Maturity Year
30 1996
31 1997
32 1998
33 1999
34 2000
35 2001
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Interest Rate
Maturitv Year
Interest Rate
4.20$
4.60
4.70
4.75
4.85
4.90
2002
2003
2004
2005
2006
2007
5.00%
5.00
5.10
5.10
5.25
5.30
5. Descrintion of the Global Certificates and Global
Book-Entrv Svstem. Upon their original issuance the Bonds will
be issued in the form o£ a single Global Certificate for each
maturity, deposited with the Depository 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
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paragraph 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
Depository 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 Registrar 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 qoverning 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 transferring funds as may be requested by
the Holder of a Global Certificate.
6. Immobilization of Global Certificates by the
Denositorv; Successor DeDOSitorv• Renlacement 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.
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 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 otherwise transferring ownership of interests in any Bond is
to receive, hold or deliver any bond certificates so long as the
Depository holds the Global Certificates immobilized from
circulation, except as provided below in this paragraph and in
paragraph 12.
Certificates evidencing the Bonds may not after their
original delivery be transferred or exchanged except:
(i) Upon registration o£ transfer of ownership of a
Global Certificate, as provided in paragraph 12,
43 (iij
44 nominee) or
45 depository")
To any successor of the Depository (or its
any substitute depository (a "substitute
designated pursuant to clause (iii) of this
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1 subparagraph, provided that any successor of the Depository
2 or any substitute depository must be both a"clearing
3 corporation" as defined in the Minnesota Uniform Commercial
4 Code at Minnesota Statutes, Section 336.8-102, and a
5 qualified and registered ��clearing agency'� as provided in
6 Section 17A of the Securities Exchange Act of 1934, as
7 amended,
8 (iiij To a substitute depository designated by and
9 acceptable to the City upon (a) the determination by the
10 Depository that the Bonds shall no longer be eligible for
11 its depository services or (b) a determination by the City
12 that the Depository is no longer able to carry out its
13 functions, provided that any substitute depository must be
14 qualified to act as such, as provided in clause (ii) of this
15 subparagraph, or
16 (iv) To those persons to whom transfer is requested
17 in written transfer instructions in the event that:
1$ (a) the Depository shall resign or discontinue
19 its services for the Bonds and the City is unable to
20 locate a substitute depository within two (2) months
21 following the resignation or determination of non-
ZZ eligibility, or
z3 (b) upon a determination by the City in its sole
24 discretion that (1) the continuation of the book-entry
25 system described herein, which precludes the issuance
z6 of certificates (other than Global Certificates) to any
27 Holder other than the Depository (or its nominee),
2$ might adversely affect the interest of the beneficial
Z9 owners of the Bonds, or (2) that it is in the best
30 interest of the beneficial owners of the Bonds that
31 they be able to obtain certificated bonds,
3z in either of which events the City shall notify Holders of
33 its determination and of the availability of certificates
34 (the "Replacement Bonds") to Holders requesting the same and
35 the registration, transfer and exchange of such Bonds will
36 be conducted as provided in paragraphs 9B and 12 hereof.
37 In the event of a succession of the Depository as may
38 be authorized by this paragraph, the Bond Registrar upon
39 presentation of Global Certificates shall register their transfer
40 to the substitute or successor depository, and the substitute or
41 successor depository shall be treated as the Depository for a11
42 purposes and functions under this resolution. The Depository
43 Letter Agreement shall not apply to a substitute or successor
44 depository unless the City and the substitute or successor
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depository so agree, and a similar agreement may be entered into.
7. Redemption. All Bonds maturing in the years 2004
through 2007, both inclusive, shall be subject to redemption and
prepayment at the option of the City on March 1, 2003, 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 ger maturity as the City shall determine; and if only part
of the Bonds having a common maturity date are called for
prepayment, the Global Certificates may be prepaid in $5,000
increments of principal and, if applicable, the specific
Replacement Bonds to be prepaid shall be chosen by lot by the
Bond Registrar. Bonds or portions thereof called for redemption
shall be due and payable on the redemption date, and interest
thereon shall cease to accrue from and after the redemption date.
17 Upon a reduction in the aggregate principal amount of a
18 Global Certificate, the Holder may make a notation of such
19 redemptiott on the panel provided on the Global Certificate
20 stating the amount so redeemed, or may return the Global
21 Certificate to the Bond Registrar in exchanqe for a new Global
22 Certificate auChenticated by the Bond Registrar, in proper
23 principal amount. Such notation, if made by the Holder, shall be
24 for reference only, and may not be relied upon by any other
25 person as being in any way determinative of the principal amount
26 of such Global Certificate outstanding, unless the Bond Registrar
27 has signed the appropriate column of the panel.
Z$ To effect a partial redemption of Replacement Bonds
29 having a common maturity date, the Bond Registrar prior to giving
30 notice of redemption shall assign to each Replacement Bond having
31 a common maturity date a distinctive number for each $5,000 of
32 the principal amount of such Replacement Bond. The Bond
33 Registrar shall then select by lot, using such methqd of
39 selection as it shall deem proper in its discretion, from the
35 numbers so assigned to such Replacement Bonds, as many numbers
36 as, at $5,000 for each number, shall egual the principal amount
37 of such Replacement Bonds to be redeemed. The Replacement Bonds
38 to be redeemed shall be the Replacement Bonds to which were
39 assigned numbers so selected; provided, however, that only so
40 much of the principal amount of each such Replacement Bond of a
41 denomination of more than $5,000 shall be redeemed as shall equal
42 $5,000 for each number assigned to it and so selected.
43 If a Replacement Bond is to be redeemed only in part,
44 it shall be surrendered to the Bond Registrar (with, if the City
45 or Bond Registrar so requires, a written instrument of transfer
46 in form satisfactory to the City and Bond Reqistrar duly executed
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by the Aolder thereof or his, her or 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 charge, 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.
The Bond Registrar shall 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 o£ the City, in written form 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.
Mailed notice of redemption shall be given to the
paying agent (if other than a City officer) and to each affected
Holder. 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 thirty (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:
(a)
(b)
The redemption date;
The redemption price;
30 (c) If less than all outstanding Bonds are to be
31 redeemed, the identification (and, in the case of
32 partial redemption, the respective principal
33 amounts) of the Bonds to be redeemed;
34 (d) That on the redemption date, the redemption price
35 will become due and payable upon each such Bond,
36 and that interest thereon shall cease to accrue
3 � from and after said date; and
3 $ (e) The place where such Bonds are to be surrendered
3 9 for payment of the redemption price (which shall
¢� be the office of the Bond Registrar).
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Notices to Midwest Securities Trust Company or its
nominee shall contain the CUSIP numbers o£ 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 Revistrar. The Treasurer o£ the City is
appointed to act as bond registrar 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. 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) oP
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 are made
available as provided in paragraph 6. Each form of bond may
contain such additional or dif£erent terms and provisions as to
the Porm of payment, record date, notices and other matters as
are consistent with the Depository Letter Agreement and approved
by the City Attorney.
Z9 A. Global Certificates. The Global Certificates,
30 together with the Certificate of Registration, the Register of
31 Partial Payments, the form of Assignment and the registration
32 information thereon, shall be in substantially the following form
33 and may be typewritten rather than printed:
2844993 9
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REGISTERED OWNER:
7 GENERAL OBLIGATION STREET IMPROVEMENT
$ SPECIAL ASSESSMENT BOND, SERIES 1995C
9 INTEREST
10 RATE
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PRINCIPAL AMOUNT:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
RAMSEY COUNTY
CITY OF SAINT PAUL
MATURITY
DATE
DATE OF
ORIGINAL ISSUE
CUSIP
March 1,
DOLI�ARS
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 maturity date specified above, unless called for earlier
redemption, and to pay interest thereon semiannually on March 1
and September 1 of each year (each, an "Interest Payment Date"),
commencing September 1, 1995, 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 interest has been paid or, if no interest
has been paid, from the date of original issue hereof. The
principal of and premium, if any, on this Bond are payable in
same-day funds by 2:30 p.m., Eastern time, upon presentation and
surrender hereof at the principal office of tihe Treasurer of the
Issuer in Saint Paul, 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
March 1, 1995
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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 p.m., 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 calendar day 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 2:30 p.m., Eastern time, if the Bond is
surrendered for payment enough in advance to permit payment to be
made by such time. Any interest not so 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.
2 $ Date of Pavment Not Business Dav. If the date for
29 payment of the principal of, premium, if any, or interest on this
30 Bond shall be a Saturday, Sunday, legal holiday or a day on which
31 banking institutions in the City of Chicago, Illinois, or the
32 city where the principal office of the Bond Registrar is located
33 are authorized by law or executive order to close, then the date
34 for such payment shall be the next succeeding day which is not a
35 Saturday, Sunday, legal holiday or a day on which such banking
36 institutions are authorized to close, and payment on such date
37 shall have the same force and effect as if made on the nominal
38 date of payment.
39 Redemntion. All Bonds of this issue (the "Bonds")
40 maturing in the years 2004 through 2007, both inclusive, are
41 subject to redemption and prepayment at the option of the Issuer
42 on March 1, 2003, and on any day thereafter at a price of par
43 plus accrued interest. Redemption may be in whole or in part of
44 the Bonds subject to prepayment. If redemption is in part, those
45 Bonds remaining unpaid may be prepaid in such order of maturity
46 and in such amount per maturity as the City shall determine; and
47 if only part of the Bonds having a common maturity date are
48 called for prepayment, this Bond may be prepaid in $5,000
284499.3 1 1
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1 increments of principal. Bonds or portions
2 redemption shall be due and payable on the
3 interest thereon shall cease to accrue from
4 redemption date.
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thereof called for
redemption date, and
and after the
Notice of RedemDtion. Mailed notice of redemption
shall be given to the paying agent (if other than a City officer)
and to each a£fected Holder of the Bonds. In the event any o£
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 "CUSIP"
numbers assigned to the Bonds shall be used.
Redemntion. 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 af 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 outstandinq, unless the Bond
Registrar has signed the appropriate column of the panel.
Otherwise, the Aolder 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 Registrar 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 of the same series having the same
stated maturity and interest rate and of the authorized
denomination in aggregate principal amount equal to and in
exchanqe for the unredeemed portion of the principal of the Bond
so surrendered.
Issuance• Purnose• General Obliaation. This Bond is
one oP an issue in the total principal amount of $3,110,000, 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 conformity
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 on March 1, 1995 (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
284499.3
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1 and full payment of
2 when the same become
3 powers of the Issuer
4 pledged.
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its principal, premium, if any, and interest
due, the full faith and credit and taxing
have been and are hereby irrevocably
Denominations; Exchanae: 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 £ully registered bonds of
smaller denominations except to evidence a partial prepayment or
in exchange Por Replacement Bonds if then available. Replacement
Bonds, if made available as provided below, are issuable solely
as fu11y registered bonds in the denominations of $5,000 and
integral multiples thereof oP a single maturity and are
exchangeable for fully registered Bonds of other authorized
denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner
and subject to the limitations provided in the Resolution.
Reference is hereby made to the Resolution for a description of
the rights and duties of the Bond Registrar. Copies of the
Resolution are on file in the principal office of the Bond
Registrar.
Renlacement 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.
40 Transfer. This Bond shall be registered in the name of
41 the payee on the books of the Issuer by presenting this Bond for
4z registration to the Bond Registrar, who will endorse his, her or
43 its name and note the date of registration opposite the name of
44 the payee in the certificate of registration attached hereto.
45 Thereafter this Bond may be transferred by delivery with an
2844993 13
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assignment duly executed by the Holder or his, her or its legal
representatives, and the Issuer and Bond Registrar may treat the
Holder as the person exclusively entitled to exercise all the
rights and powers of an owner until this Bond is presented with
such assignment for registration of transfer, accompanied by
assurance of the nature provided by law that the assignment is
genuine and ePfeative, and until such transfer is registered on
said books and noted hereon by 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 Registrar. Transfer of this Bond
may, at the direction and expense of the Issuer, be subject to
certain other restrictions if required to qualify this Bond as
being '�in registered form" within the meaning of Section 149(a)
of the federal Internal Revenue Code of 1986, as amended.
16 Fees upon Transfer or Loss. The Bond Registrar may
17 require payment of a sum sufficient to cover any tax or other
18 governmental charge payable in connection with the transfer or
19 exchange of this Bond and any leqal or unusual costs regarding
20 transfers and lost Bonds.
21 Treatment of Registered Owner. The Issuer and Bond
22 Registrar may treat the person in whose name this Bond is
23 registered as the owner hereof for the purpose of receivinq
24 payment as herein provided (except as otherwise provided with
25 respect to the Record Date) and for all other purposes, whether
26 or not this Bond shall be overdue, and neither the Issuer nor the
27 Bond Registrar shall be affected by notice to the contrary.
2$ Authentication. This Bond shall not be valid ar become
29 obligatory for any purpose or be entitled to any security unless
30 the Certificate of Authentication hereon shall have been exeouted
31 by the Bond Registrar.
32 Not Oualified Tax-Exembt Obligations. The Bonds have
33 not been designated by the Issuer as "qualified tax-exempt
34 obligations" for purposes of Section 265(b)(3) of the federal
35 Internal Revenue Code of 1986, as amended.
36 IT IS HEREBY CERTIFIED AND RECITED that all acts,
37 conditions and things required by the Constitution and laws of
38 the State of Minnesota and the Charter of the Issuer to be done,
39 to happen and to be performed, precedent to and in the issuance
40 of this Bond, have been done, have happened and have been
41 performed, in regular and due form, time and manner as required
42 by law, and this Bond, together with all other debts of the
43 Issuer outstanding on the date of original issue hereof and on
44 the date of its issuance and delivery to the oriqinal purchaser,
45 does not exceed any constitutional or statutory or Charter
2844993 1q
� 5 - td�
1 limitation of indebtedness.
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,
Department of Finance and Management Services.
2&4993 15
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1
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4
Date of Registration:
Registrable by:
Payable at:
5 BOND REGISTRAR'S
6 CERTIFICATE OF
7 AUTHENTICATION
8 This Bond is one of the
9 Bonds described in the
l0 Resolution mentioned
11 within.
12
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15 ,
16 Bond Registrar
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i8
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24
By
Authorized Signature
(SEAL)
CITY OF SAINT PAUI,,
RAMSEY COUNTY, MINNESOTA
Mayor
Attest:
City Clerk
Countersigned:
Director, Department of Finance
and Management Services
General Obligation Street Improvement Special Assessment Bond,
Series 1995C, No. R- .
284499.3
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%I
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0
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CERTIFICATE OF REGISTRATION
The transfer of ownership of �the principal amount of the attached
Bond may be made only by the registered owner or his, her or its
legal representative last noted below.
DATE OF
REGISTRATION
REGISTERED OWNER
SIGNATURE OF
BOND REGESTRAR
284499.3
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2
REGISTER OF PARTIAL PAYMENTS
3 The principal amount of the attached Bond has been prepaid on the
4 dates and in the amounts noted below:
5 Signature of Signature of
6 Date Amount Bondholder Bond Registrar
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23 If a notation is made on this register, such notation has the
24 effect stated in the attached Bond. Partial payments do not
25 Yequire the presentation of the attached Bond to the Bond
26 Registrar, and a Aolder could fail to note the partial payment
27 here.
2�499.3 18
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�
ABBREVIATIONS
2 The £ollowing abbreviations, when used in the inscription on
3 the face of this Bond, shall be construed as though they were
4 written out in full according to applicable laws or regulations:
5 TEN COM - as tenants in common
6 TEN F�LIT - as tenants by the entireties
7 JT TEN - as joint tenants with right of survivorship
8 and not as tenants in common
9 UTMA - as custodian for
10 (Cust) (Minor)
11 under the Uniform Transfers
12 (State)
13 to Minors Act
14 Additional abbreviations may also be used
15 though not in the above list.
284499.3 19
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F�
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5
6
7
8
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.
9 Dated:
10
11
12
13
14
15
16
Notice: 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 or any change
, whatever.
Signature Guaranteed:
17 Signature(s) must be guaranteed by a national bank or trust
18 aompany or by a brokerage firm having a membership in one of the
19 major stock exchanges or any other "Eligible Guarantor
20 Institution" as defined in 17 CFR 240.17Ad-15(a)(2).
21
22
23
24
25
26
27
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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
i£ the Bond is held by joint account.)
284499.3
20
9 S _tis�
1 B. Renlacement Bonds. If the City has notified
2 Holders that Replacement Bonds have been made available as
3 provided in paragraph 6, then for every Bond thereafter
4 transferred or exchanged (including an exchange to reflect the
5 partial prepayment of a Global Certificate not previously
6 exchanqed for Replacement Bonds) the Bond Registrar shall deliver
7 a certificate in the form of the Replacement Bond rather than the
8 Global Certificate, but the Holder of a Global Certificate shall
9 not otherwise be required to exchange the Global Certificate for
10 one or more Replacement Bonds since the City recognizes that some
il beneficial owners may prefer the convenience of the Depository's
12 registered ownership of the Bonds even though the entire issue is
13 no longer required to be in global book-entry form. The
14 Replacement Bonds, together with the Bond Registrar's Certificate
15 of Authentication, the form of Assignment and the registration
16 information thereon, shall be in substantially the following
17 form:
28L499.3 2 1
q5 -t8Y
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5 R-
6 GENERAL OBLIGATION STREET IMPROVEMENT
7 SPECIAL ASSESSMENT BOND, SERTES 1995C
8 INTEREST
9 RATE
�
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OWNER:
PRINCIPAL AMOUNT:
$
CUSIP
fZ�l��l �
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Saint Paul, Ramsey County, Minnesota (the °Issuer" or "City"j,
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 March 1 and September 1 0£ each year (each, an
"Interest Payment Date"), commencing September 1, 1995, 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 interest has been
paid or, if no interest has been paid, from the date of original
issue hereof. The principal of and premium, if any, on this Bond
are payable upon presentation and surrender hereof at the
principal office of , in
, (the "Bond Registrar"),
acting as payinq agent, or any successor paying aqent 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 calendar day 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
UNITED STATES OF AMERICA
STATE OF MINNESOTA
RAMSEY COUNTY
CITY OF SAINT PAUL
MATURITY DATE OF
DATE ORIGINAL ISSUE
March 1, 1995
284499.3 2 2
95-t�P'
1 the Holder hereof as of the Regular Record Date, and shall be
2 payable to the person who is the Holder hereof at the close of
3 business on a date (the "Special Record Date") fixed by the Bond
4 Registrar whenever money becomes available for payment of the
5 de£aulted interest. Notice of the Special Record Date shall be
6 given to Bondholders not less than ten days prior to the Special
7 Record Date. The principal of and premium, if any, and interest
8 on this Bond are payable in lawful money of the United States of
9 America.
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REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF'
THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICA PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
IT 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 this Bond, together with all other debts of the
Issuer outstanding on the date of original issue hereof and on
the date of its issuanae and delivery to the original purchaser,
does not exceed any constitutional or statutory or Charter
limitation of indebtedness.
IN WITNESS WHEREOF, the City of Saint Paul, Ramsey
County, Minnesota, by its City Council has caused this Bond to be
sealed with its of£icial seal or a facsimile thereof and to be
executed on its behalf by the original or facsimile signature of
its Mayor, attested by the original or facsimile siqnature of its
Clerk, and countersigned by the original or facsimile signature
of its Director, DepartmenC of Finance and Management Services.
284499.3 2 3
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Date of Registration:
5 BOND REGISTRAR'S
6 CERTIEICATE OF
7 AUTHENTICATION
8 This Bond is one of the
9 Bonds described in the
10 Resolution mentioned
li within.
12
13
14 ,
15 Bond Registrar
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17
18
19
By
Authorized Signature
20 (SEAL)
284499.3
Registrable by:
Payable at: _
CITY OF SAINT PAUL,
RAMSEY COUNTY, MINNESOTA
Mayor
Attest:
City Clerk
Countersigned:
Director, Department of
Finance and Management Services
24
gS-18�
1
ON REVERSE OF BOND
2 Date of Payment Not Business Day. If the date for
3 payment of the principal of, premium, if any, or interest on this
4 Bond shall be a Saturday, Sunday, legal holiday or a day on which
5 banking institutions in the City of Chicago, Illinois, or the
6 ciCy where the principal of£ice of the Bond Registrar is located
7 are authorized by law or executive order to close, then the date
8 for such payment shall be the next succeeding day which is not a
9 Saturday, Sunday, legal holiday or a day on which such banking
10 institutions are authorized to alose, and payment on such date
11 shall have the same force and effect as if made on the nominal
12 date of payment.
13 Redemption. All Bonds of this issue (the "Bonds")
14 maturing in the years 2004 through 2007, both inclusive, are
15 subject to redemption and prepayment at the option of the Issuer
16 on March 1, 2003, and on any day thereafter at a price of par
17 plus aacrued interest. Redemption may be in whole or in part of
18 the Bonds subject to prepayment. If redemption is in part, those
19 Bonds remaining unpaid may be prepaid in such order of maturity
20 and in such amount per maturity as the City shall determine; and
21 if only part of the Bonds having a common maturity date are
22 called for prepayment, tihe specific Bonds to be prepaid shall be
23 chosen by lot by the Bond Registrar. Bonds or portions thereof
24 called for redemption shall be due and payable on the redemption
25 date, and interest thereon shall cease to accrue from and after
26 the redemption date.
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Notice of Redembtion. 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 ��CUSIP"
numbers assigned to the Bonds shall be used.
Selection of Bonds for Redemotion. 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 princigal 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, shall egual the principal
amount of such Bonds to be redeemed. The Bonds to He redeemed
shall be the Bonds to which were assigned numbers so selected;
284499.3
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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 Registrar 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 charqe, 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: Purpose: General Obligation. This Bond is
one of an issue in the total principal amount of $3,110,000, 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 conformity
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 oP the Issuer on March 1, 1995 (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 taxing
powers of the Issuer have been and are hereby irrevocably
pledged.
Denominations; Exchanae; Resolution. The Bonds are
issuable solely as £ully 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 Registrar. Copies of tihe
Resolution are on file in the principal office of the Bond
Registrar.
284499.3
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`IS -tY�'
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Transfer. This Bond is transferable by the Holder in
person or by his, her or its attorney duly authorized in writing
at the principal office of the Bond Registrar upon presentation
and surrender hereof to the Bond Registrar, 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 Registrar. Thereupon the Issuer shall
execute and the Bond Registrar shall authenticate and deliver, in
exchange for this Bond, one or more new fully registered Bonds in
the name of the transferee (but not registered in blank or to
"bearer" or similar designation), of an authorized denomination
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.
15 Fees unon Transfer or Loss. The Bond Registrar may
16 require payment of a sum sufficient to cover any tax or other
17 governmental charge payable in connection with the transfer or
18 exchanqe of this Sond and any legal or unusual costs regarding
19 transfers and lost Bonds.
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Treatment of Reaistered Owner. The Issuer and Bond
Registrar 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 on the
reverse side hereof with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and
neither the Issuer nor 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 Registrar.
Not Oualified fiax-Exempt Obligations. The Bonds have
not been designated by the Issuer as "qualified tax-exempt
obligations" for purposes of Section 265(b)(3) of the federal
Internal Revenue Code of 1986, as amended.
284499.3
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°�5-t8�
�
ABBREVIATIONS
2 The following abbreviations, when used in the
3 inscription on the face of this Bond, shall be construed as
4 though they were written out in full according to applicable laws
5 or regulations:
6 TEN COM - as tenants in common
7 TEN ENT - as tenants by the entireties
8 JT TEN - as joint tenants with right of survivorship
9 and not as tenants in common
io UTMA - as custodian £or
11 (Cust) (Minor)
12 under the Uniform Transfers
13 (State)
14 to Minors Act
15 Additional abbreviations may also be used
16 though not in the above list.
284499.3 2 8
�5-1�8'
1
ASSIGNMENT
2 For value received, the undersigned hereby sells,
3 assigns and transfers unto
4 the within Bond and does
5 hereby irrevocably constitute and appoint
6 attorney to transfer the Bond on the books kept for the
7 registration thereof, with full power of substitution in the
8 premises.
9 Dated:
10 Notice: The assignor's signature to this assignment
11 must correspond with the name as it appears
12 upon the face of the within Bond in every
13 particular, without alteration or any change
14 whatever.
15 Signature Guaranteed:
16
17 Signature(s) must be guaranteed by a national bank or trust
18 company or by a brokerage firm having a membership in one of the
19 major stock exchanges or any other "Eligible Guarantor
20 Institution" as dePined in 17 CFR 240.17Ad-15(a)(2).
21 The Bond Registrar will not effect transfer of this
22 Bond unless the information concerning the transferee requested
23 below is provided.
24 Name and Address:
25
26
27
28
(Include information for all joint owners
if the Bond is held by joint account.)
2844993 2 9
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10. Execution. The Bonds shall be executed on behalP
ot the City by the signatures of its Mayor, Clerk and Director,
Department of Finance and Management 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
facsimiles and the corporate seal may be omitted on the Bonds as
permitted by law. In the event of disability or resignation or
other absence of any such officer, the Bonds may be signed by the
manual or facsimile signature of that officer who may act on
behalf of such absent or disabled officer. In case any such
of£icer 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 suf£icient for all purposes, the same
as if he or she had remained in office until delivery.
11. Authentication; Date of Reaistration. No Bond
shall be valid or obligatory for any purpose or be entitled to
any security or benefit under this resolution unless a
Certificate of 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 Furchaser, the Bond Registrar shall insert as
the date of registration the date of original issue, which date
is March 1, 1995. The Certificate of Authentication so executed
on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
12. Reafstratfon: Transfer: Exchancxe. The City wili
cause to be kept at the principal office of the Bond Registrar a
bond register in which, subject to such reasonable 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 transferred as
herein provided.
42 A Global Certificate shall be registered in the name of
43 the payee on the books of the Bond Registrar by presenting the
44 Global CeYtificate for registration to the Bond Registrar, who
45 will endorse his or her name and note the date of registration
46 opposite the name of the payee in the certificate of registration
47 on the Global Certificate. Thereafter a Global Certificate may
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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 trans£er, 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 the Resolution and to reasonable regulations of the
City contained in any agreement with, or notice to, the Bond
Registrar.
13 Transfer of a Global Certificate may, at the direction
14 and expense of the City, be subject to other restrictions if
15 required to qualify the Global Certificates as being "in
16 registered form" within the meaning of Section 149(a) of the
17 federal Internal Revenue Code of 1986, as amended.
18 If a Global Certificate is to be exchanged for one or
19 more Replacement Bonds, all of the principal amount of the Global
20 Certificate shall be so exchanged.
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Upon surrender for transfer of any Replacement Bond at
the principal office of the Bond Registrar, the City shall
execute (if necessary), and the Bond Registrar shall
authenticate, insert the date of registration (as provided in
paragraph 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 aqgregate
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
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1 the Bond Registrar and thereafter disposed of as directed by the
2 City.
3 All Bonds delivered in exchange for or upon transfer of
4 Bonds shall be valid general obligations of the City evidencing
5 the same debt, and entitled to the same benefits under this
6 resolution, as the Bonds surrendered for such exchange or
7 transfer.
8 Every Bond presented or surrendered for transfer or
9 exchange shall be duly endorsed or be accompanied by a written
10 instrument of transfer, in form satisfactory to the Bond
11 Registrar, duly executed by the Holder thereof or his, her or its
12 attorney duly authorized in writing.
13 The Bond Registrar may require payment of a sum
14 sufficient to cover any tax or other governmental charge payable
15 in connection with the transfer or exchange of any Bond and any
16 legal or unusual costs regarding transfers and lost Bonds.
17 Transfers shall also be subject to reasonable regula-
18 tions of the City contained in any agreement with, or notice to,
19 the Bond Registrar, including regulations which permit the Bond
20 Registrar to close its transfer books between record dates and
21 payment dates.
22 13. Riahts Uoon Transfer or Exchanqe. Each Bond
23 delivered upon transfer of or in exchange for or in lieu of any
24 other Bond shall carry all the rights to interest accrued and
25 unpaid, and to accrue, which were carried by such other Bond.
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14. Interest Pavment; Record Date. Interest on any
Global Certificate shall be paid as provided in the first
paragraph thereof, and interest on any Replacement Bond shall be
paid on each Interest Payment Date by check or draft mailed to
the person in whose name the Bond is registered (the "Holder") on
the registration books of the City maintained by the Bond
Registrar, and in each case at the address appearing thereon at
the close of business on the fifteenth (15th) calendar day
preceding such Interest Payment Date (the "Regular Record Date").
Any such interest not so timely paid shall cease to be payable to
the person who is the Holder thereof as of the Regular Record
Date, and shall be payable to the person who is the Holder
thereof at the close of business on a date (the "Special Record
Date") £ixed 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.
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Holders.
Z5. Holc3ers: Treatment of Reqistered owner; Consent of
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(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.
14 (B) The City and Bond Registrar may treat the person in
15 whose name any Bond is registered as the owner of such Bond for
16 the purpose of receiving payment of principal of and premium, if
17 any, and interest (subject to the payment provisions in paragraph
18 14 above) on, such Bond and for all other purposes whatsoever
19 whether or not such Bond shall be overdue, and neither the City
20 nor the Bond Registrar shall be affected by notice to the
21 contrary.
22 (C) Any consent, request, direction, approval, objection or
23 other instrument to be signed and executed by the Holders may be
24 in any number of concurrent writings of similar tenor and must be
25 signed or executed by such Holders in person or by agent
26 appointed in writing. Proof of the execution of any such
27 consent, request, direction, approval, objection or other
28 instrument or of the writing appointing any such agent and of the
29 ownership of Bonds, if made in the following manner, shall be
30 sufficient for any of the purposes of this Resolution and shall
31 be conclusive in favor of the City with regard to any action
32 taken by it under such request or other instrument, namely:
33 (1) The fact and date of the execution by any person
34 of any such writing may be proved by the certificate of any
35 officer in any jurisdiction who by law has power to take
36 acknowledgments within such jurisdiction that the person
37 signing such writing acknowledged before him the execution
38 thereof, or by an affidavit of any witness to such
39 execution.
40 (2) Subject to the provisions of subparagraph (A)
41 above, the fact of the ownership by any person of Bonds and
42 the amounts and numbers of such Bonds, and the date of the
43 holding of the same, may be proved by reference to the bond
44 register.
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1 16. Delivery; Application of Proceeds. The Global
2 Certificates when so prepared and executed shall be delivered by
3 the Director, Department of Finance and Management Services, to
4 the Purchaser upon receipt of the purchase price, and the
5 Purchaser shall not be obliged to see to the proper application
6 thereof.
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27. Funds. There is hereby created a special fund to
be designated the "1995 Capital Projects Fund" (numbered C-95,
the ��Capital Fund"), to be administered and maintained by the
City Treasurer as a bookkeeping account separate and apart from
all other accounts maintained in the official financial records
of the City. There has been heretofore created and established
the "General Obligation Special Assessments -- Streets Debt
Service Fund" (numbered 963, the "Debt Service 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 thereon, and Zess any amount paid for the
Bonds in excess of $3,078,900 and less capitalized interest
in the amount of $113,195 (together with interest earnings
thereon and subject to such other adjustments as are
appropriate to provide sufficient funds to pay interest due
or accruing on the Bonds through December, 1995}. 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 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 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 necessary to pay
interest on the Bonds due prior to the anticipated date of
commencement of the collection of taxes 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 permitted by law, or transferred to the
Debt Service Fund. A11 earnings on the Capital Fund shall
be transferred to the Debt Service Fund, or may be retained
in the Capital Fund.
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(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, to the extent
provided in paragraph 19; (b) all accrued interest received
upon delivery of the Bonds; (c) all funds paid for the Bonds
in excess of $3,078,900; (d) capitalized interest in the
amount of $113,195 (together with interest earnings thereon
and subject to such other adjustments as are appropriate to
provide sufficient funds to pay interest due or accruing on
the Bonds through December, 1995); (e) any collections of
all taxes which are levied herein, or which may hereaPter be
levied in the event that the special assessments herein
pledged to the payment of the Bonds and interest thereon are
insufficient therefor; (f) all funds remaining in the
Capital Fund after completion of the Improvements 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 permitted by law; and (g) all investment
earnings on moneys held in such special account in the Debt
Service Fund or 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 or
any other special account therein, and the Bonds are hereby
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 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 directly or
indirectly to acquire higher yielding investments, except (1) for
a reasonable temporary 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-
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applicable federal arbitrage 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 regulations. 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
obligations or deposits issued by, guaranteed by or insured by
the United States or any agency or instrumentality thereof if
to the extent that such investment would cause the Bonds to be
"Pederally guaranteed" within the meaning of Section 149(b) of
the Eederal Internal Revenue Code of 1986, as amended (the
"Code").
in
and
15 18. Assessments; Coveraae Test. The City Council
16 heretofore determined, and does hereby determine, to proceed
17 the Improvements and special assessments with respect thereto
18 under the provisions of the Charter of the City, rather than
19 provisions of Minnesota Statutes, Chapter 429.
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has
with
the
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 benefitted by the Improvements. The City hereby
covenants and agrees that it will let all construction contracts
not heretofore let within one year after ordering each
Improvement financed hereunder unless the resolution orderinq the
Improvement specifies a different time Zimit for the letting of
construction contracts and will do and perform, as soon as they
may be done, all acts and things necessary for 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 error, defect, or
irregularity, 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 ali 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.
42 The special assessments have not heretofore been
43 authorized, and accordingly, for purposes of Minnesota Statutes,
44 Section 475.55, Subdivision 3, the special assessments are hereby
45 authorized. Subject to such adjustments as are required by
46 conditions in existence at the time the assessments are levied,
47 the assessments are hereby authorized and it is hereby determined
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that the assessments shall be payable in equal, consecutive,
annual installments, with general taxes 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:
Smprovement
Desianation
Davern/Edgcumbe
Howell/Montreal
Irvine Avenue
Eustis/Desnoyer
Bates/McLean
Como/Arona
United Children's
Hospital/Smith St.
Ltg. Assess. District
Amount
400,000
937,000
74,000
457,000
331,000
501,000
Lew Years
Collection
Years
TOTAL
410.000
$3,110,000
2995-2014
for all
1996-2025
for al.l
The special assessments shall be such that if collected
in full they, together with estimated collections of other
revenues herein pledged for the payment of the Bonds, will
produce at least five percent (5$) in excess of the amount needed
to meet when due the principal and interest payments on the Bonds
in every year except the final year (2007). At the time the
assessments are in fact levied the City CounciZ sha11, based on
the then-current estimated collections of the assessments, make
any adjustments in any ad valorem taxes 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. Limit on Special Assessments Pledaed. The City
Council hereby finds, determines and declares that the payment of
the Bonds does not require the pledge of all the special
assessments which may be levied with respect to the Improvements
identified in paragraph 18, and that it is necessary, proper and
e�cpedient to provide that payments and prepayments of special
assessments in excess of the debt service requirements of the
Bonds be put to use for other purposes sooner than upon the
termination of the Debt Service Fund. Only $3,110,000 original
principal amount of the special assessments (which amount is the
"Pledged Assessments"), and interest thereon, recognized in
paragraph 18 of this Resolution (of which $930,000 are aecessary
prior to their scheduled receipt in order to pay debt service on
the Bonds on March l, 1996) are or shall be pledged to the
payment of the Bonds, and payments of, or with respect to, such
special assessments in excess of the Pledged Assessments shall be
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credited instead to a special account in the Capital Fund, and
used for the purpose of paying any additional costs of the
Improvements and the costs of other improvements approved by the
City, as follows: (a) the first $930,000 of all prepayments of
special assessments recognized in`paragraph 18 shall be credited
to the Debt Service Fund, (b) thereafter until such time as the
special assessments from time to time outstanding equal in
original principal amount the Pledged Assessments or less,
prepayments of any of the special assessments recognized in
paragraph 18 shall be treated as prepayments of the portion of
the speciaZ assessments not pledged to the Bonds and shall be
credited instead to said special account of the Capital Fund, and
used as provided above, and (c) while the special assessments
from time to time outstanding equal in original principal amount
the Pledged Assessments or more, regular installment payments
made on the Pledged Assessments only (not all of the special
assessments) shall be credited to the Debt Service Fund, and
regular installment payments on that portion, if any, of the
remaining assessments in excess of the Pledged Assessments shall
be credited to said special account oE the Capital Fund, and used
as provided above.
22 20. Tax Levy; Coveraae Test. If taxes are levied as
23 provided in the final part of paragraph I8, the tax levies shall
24 be irrepealable so long as any of the Bonds are outstanding and
25 unpaid, provided that the City reserves the right and power to
26 reduce the levies in the manner and to the extent permitted by
27 Minnesota Statutes, Section 475.61, Subdivision 3.
28 To provide moneys for payment of the principal and
29 interest on the Bonds due to be paid in 2007 there is hereby
30 levied upon all of the taxable property in the City a direct
31 annual ad valorem tax which shall be spread upon the tax rolls
32 and collected with and as part of other general property taxes in
33 the City for the years and in the amounts as follows:
34
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Year of Tax
Levy
Year of Tax
Collection
Amount
2005
2006
$933,566
37 The tax levies are such that if collected in full they,
38 together with estimated collections of special assessments and
39 other revenues herein pledged for the payment of the Bonds, will
40 produce at least five percent (5$) in excess of the amo�nt needed
41 to meet when due the principal and interest payments on the
42 Bonds. The tax levies shall be irrepealable so long as any of
43 the Bonds are outstanding and unpaid, provided that the City
44 reserves the right and power to reduce the levies in the manner
45 and to the extent permitted by Minnesota Statutes, Section
2844993 3 8
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1 475.61, Subdivision 3.
2 21. General Obliaation Pledae. For the prompt and
3 full payment of the principal and interest on the Bonds, as the
4 same respectively become due, the full faith, credit and taxing
5 powers of the City shall be and are hereby irrevocably pledged.
6 If the balance in the special account relating to the Bonds in
7 the Debt Service Fund (as defined in paragraph 17 hereof) is ever
8 insufficient to pay all principal ancl interest then due on the
9 Bonds payable therefrom, the deficiency shall be promptly paid
10 out of any other funds of the City which are available for such
li purpose, including the general fund of the City and the Debt
12 Service Fund and the special accounts therein, and such other
13 funds may be reimbursed with or without interest from the specia2
14 account in the Debt Service Fund relating to the Bonds when a
15 suf£icient balance is available therein.
16 22. Certificate of Reaistration. The Director,
17 Department of Finance and Management Services, is hereby directed
18 to Eile a certified copy of this Resolution with the officer of
19 Ramsey County, Minnesota, performing the functions of the county
20 auditor (the "County Auditor"), together with such other
21 information as the County Auditor shall require, and to obtain
22 the County Auditor's certificate that the Bonds have been entered
23 in the County Auditor's Bond Register, and that the tax levy
24 required by law has been made.
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23. Records and Certificates The of£icers of the
City are 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 o£ 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 appear from the books and records under their custody and
control or as otherwise known to them, and all such certifiec3
copies, certificates and affidavits, including any heretofore
furnished, shall be deemed representations of the City as to the
facts recited therein.
38 24. Necrative Covenants as to Use of Proceeds and
39 Imorovements. The City hereby covenants not to use the proceeds
40 of the Bonds or to use the Improvements, or to cause or permit
41 them to be used, or to enter into any deferred payment
42 arrangements for the cost of the Improvements, in such a manner
43 as to cause the Bonds to be "private activity bonds" within the
44 meaning of Sections 103 and 141 through 150 of the Code. The
45 City hereby covenants not to use the proceeds of the Bonds in
46 such a manner as to cause the Bonds to be "hedge bonds" within
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the meaning o£ Section 149(g) of the Code.
25. Tax-Exempt Status of the Bonds; Rebate; Election.
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 £or
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 the two-year expenditure exception to
the rebate requirements to 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 Director, Department of Finance and
Management Services, or any o£ them, are hereby authorized and
directed to make such elections as they deem necessary,
appropriate or desirable in connection with the Bonds, and all
such elections shall be, and shall be deemed and treated as,
elections of the City.
26. No Desianatfon of Oualified Tax-Exempt
Obliqations. The Bonds, together with other obligations issued
by the City in 1995, exceed in amount those which may be
qualified as "qualified tax-exempt obligations" within the
meaning of Section 265(bj(3j of the Code, and hence are not
designated for such purpose.
27. Depositorv Letter Aqreement. The Depository
Letter Agreement is hereby approved, and shall be executed on
behalf of the City by the Mayor, Treasurer and Director,
Department of Finance and Management Services, in substantially
the form approved, with such changes, modifications, additions
and deletions as sha11 be necessary and appropriate and approved
by the City Attorney. Execution by such officers of the
Depository Letter Agreement shall be conclusive evidence as to
the necessity and propriety of changes and their approval by the
City Attorney. So long as Midwest Securities 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
Depository Letter Agreement, as it may be amended or supplemented
by the City from time to time with the agreement or consent of
Midwest Securities Trust Company.
2844993 ' 4 0
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1 28. Negotiated Sale. The City has retained Springsted
2 Incorporated as an independent financial advisor, and the City
3 has heretofore determined, and hereby determines, to se11 the
4 Bonds by private negotiation, all as provided by Minnesota
5 Statutes, Section 475.60, Subdivision 2(9).
6 29. Severabilitv. Zf any section, paragraph or
7 provision of this resolution shall be held to be invaZid or
8 unenforceable for any reason, the invalidity or unenforceability
9 of such section, paragraph or provision shall not affect any of
lo the remaining provisions of this resolution.
11 30. Headinas. Headings in this resolution are
12 included for convenience of reference only and are not a part
13 hereof, and shall not limit or define the meaning of any
14 provision hereof.
Requested by Departmerrt of:
Finance and Management Services
Rv. � r "•
by Councii Secretary
�
Approved by
By:
Adopted by Council: Date �� � �,� � �
Q
_ - , 9S�/�� Ge�� ����- ✓�
DEPAflTMENT/OPi10E/COU IL DATEINfTIA7ED � � — �� G
Finavice and Management Services � 02J21/95 GREEN SHEE � N _ 2 3 7 9 7
CONTACT PERSON & PHIXJE IN(TIAVDATE �NRIAUDATE
. �OEPAqTMENTDIRECTOR �pNCOUNQL
Mdithd Kantorowicz�� 266-8839 ` a�N � CITYATfORNEV � CiN CLERK
NUYBER FOR O BUDGET DIRECTOR � FIN. 8 MGT. SEfltlICES DIR.
MUST BE ON CAUNCIL AGENDA BY (DA7E7 pp��
, . . OROEfl � �/pYOR (OF ASSISTANS) O
March 1 1995 '
TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATUR�
ACT10N RC-0UESTED: �
Tf3IS RESOLIITION ACCEPTS THE WZNNING PROPOSAL A?ID AWARDS THE BONDS. THIS IS A COMPETITIVE,.BOND SALE AND THE AWARD
IS GOING Tp THE BIDDII2 FODND TO BE THE MOST ADVANTAGEOIIS (LOWEST COST) TO THE CITY_
fiECAMMENDATIONS: APGmve (AJ or Reject (R) pEHSONAL SERVICE CONTRACTS MUST ANSWER TNE FOLLOWING QUESTONS:
_ PLANNING COMMISSION - _ CIVIL SERVIGE COMMISSION �� H23 thi5 p2fSOMfMm 0'aEr WwkOtl undei a COrtrdCl fof tlN5 dePdRment?
X CIB COMMITTEE __ YES NO
X 2. Has this person�rm ever been a ciry employee?
� S7AFF _ VES NO
_ olSiqlC7 COURT _ 3. Does this person�rm possess a skill not normally possessed by any current city employee?
SUPPORTS WHiCH COUNpL O&IECTIVE? YES NO
Explain all yes enswers on separete sheet and attaeh to green sheet
INITIATING PROBLEM, ISSUE. OPPOFTUNITV (Who, lM1Tat, Whan, Where, Why):
These bonds are for the purpose of funding certain street improvements in connection with the 5ewer Separation
program�.and to finance lighting and streetscape improvements.around United and Children's i�tav .
$3,110�000 G.O. Temporary Improvement Special Assessment Bonds �
FOR C013NCIL AGIIdDA OF MARCH 1� 1995 ��� 2� 19g5
������ ��� �
ADVANTAGESIFAPPROVED:
Street improvements in conjunction with Sewer Separation and Streetscape work can begin.
�ISADVANTAGES IF APPR�VED:
None
�� �S��r�§
F�B 2 2 1�95
DISADVANTAGESIFNOTAPPROVED: " —�� ""'°�"'""°'°
Funds will not 6e received in time for construction projects_
TOTAL AMOUNT OF THANSACTfON $ 3� 110 r000 COSTlREVENIlE eUDC'+ETE� (CIRCLE ONE) YES NO
FUNDING SOURCE ACTIYITY NUMBER
PINANC�AL INFORMATION: (EXPLAIN)
9s-i��
EXHIBITS
Exhibit A - Bids
284499.2
�►5—\8d'
85 E. SEVENTH PLACE, SUiTE 100
SAINT PALIL, MN 55101-2143
612-223-3006 FAX: 612-223-3002
�
/
March 1, 1995
Mr. Peter Hames, Director
Department of Financial Management Services
City of Saint Paul
290 City Hall
15 West Keliogg Soulevard
Saint Paul, MN 55102
SPRINGSTED
Publu Finanre ddvisors
/
/
Re: Recommendations for Award of City of Saint Paul's 1995 General Obligation Bonding
Program
Dear Mr. Hames:
This letter summarizes the results of the competitive bids opened by you at 1030 A.M. this
morning for the following issues:
$12,500,000 General Obligation Capital fmprovement Bonds,
$3,110,000 Generai Obligation Street Improvement Speciai
1995C (Assessment Bonds)
Tax-Exempt Interest Rate Market
Series 19956 (CIB Bonds)
Assessment Bonds, Series
Since November 1994, the tax-exempt interest rate market has trended downward. We have
enciosed as Exhibit I a nationai index of iax-exempt interest rates, The Bond Buyer's Index
(BBI). The BBI reached a recent low point in late 1993 at aQproximately 5.20%, peaking in
November 1994 at 7.06%. Today the BBI has falien to 6.11% or approximately half-way back
to the recent fow point.
As the attached graph indicates, the first quarter aiways shows a trough, and that is why we
have annuaily scheduled the City's bond sales during this period.
Sale Resutts
The City received nine (9) bids on the CIB Bonds and six (6) bids on the Assessment Bonds.
Only twice in the last 25 years (1984-85) has the City received more than nine (9) bids on one
of its issues. Of the nine (9) bids received on the CIB Bonds, seven (7) bids came from
Chicago syndicates, one (1) bid from New York and one (1) bid from Twin Cities syndicates.
Many of the Twin Cities underwriters bid through their Chicago underwriting desks or were
grouped into the Twin Cities syndicate.
The reason for the iower number of bids on the Assessment Bonds is that the reduced principai
amount does not draw the same national interest as the CIB Bonds.
591�'T PAUL,.N1 y��ytiE.APOLiS, MN BROOKFfELD,N'I 06'ERL.q�D PARK, KS H'ASHINGTON, DC iOWA QTY, li
�(S -18d
City of Saint Pau{, Minnesota
March 1, 1995
Page 2 _
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 least cost award for the City. We have
enclosed bid tabufation forms for each issue summarizing the bid specifics and composition of
each underwriting syndicate. The results of the bidding by issue are as follows:
Issue
Lowest TIC Low No. of
Bid id r TIC Ranae Bids
$12,500,000 CIB Issue 5.148365% Fidetity 5.14°Jo - 5.34% 8
$3,110,000 Assessment Issue 5.290998% Fidelity 5.29% - 5.46% 6
The principal reason for the difference in the low bid interest rates between the issues reflects
the varying length of repayment terms of each of the issues: longer repayment terms have
higher interest rates.
Recommendation
We recommend award of each issue to Fidelity Capital Markets. This recommendation is
based on the very favorable sale resuits as compared to otherjurisdictions recently completing
their saies. Enclosed as Exhibit II is a comparison of the City's CIB Sonds with five (5) other
recent bond sales, including last week's Saint Paul School District bond sale. At ail maturities
the City has received equal or lower interest rates.
We have also compared this sale with a national daily interest rate index, Delphis Hanover.
This comparison shows the City receiving bids at or better than a"Aaa"-rated security. This
result is consistent with the City's historical performance against the Delphis.
Credit Rating
We wish to rea�rm our comments in last week's letter on Midway Marketplace regarding the
City's three credii ratings. The City received three ratings of "Aa/AA+/qA+" from Moody's
Investors Service, Standard & Poor's and Fitch Investors Service, respectively. These ratings
demonstrate the City's exceilent standing with the rating agencies. We would be pleased to
discuss the contents of their writien reports which you have received previously.
We are again appreciative of the opportunity to be of service to the City. We welcome any
questions or comments on this report.
Respectfully,
'� � �� � � �
`����� ;����`� �.�:t�
David N. MacGiilivray
Principal
Director of Project Management
riw
Enclosures
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