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96-256�'`�'`'�'_�'� r ;r� ; -, �'. i .,.� z . t . , i „ ,``.'. ..._ Council Fiie # � � � °� S� Green Sheet # ��D�. AUL, MINNESOTA Preserrted By Referred To a� Committee: Date 1 2 3 4 5 ACCEPTING PROPOSAL ON SALE OF $14,500,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS, SERIES 1996A, PROVIDING FOR THEIR ISSUANCE, AND LEVYING 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 $14,500,000 General Obligation Capital Improvement Bonds, 9 Series 1996A (the "Bonds"), of the City of Saint Paul, Minnesota 10 (the "City"); and li 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 ement f $ervices, has advised this Council that the proposal 17 of �E/���// L,�//�G�'t q-GO. was found to be the most 18 advantageous a d has recommended that said proposal be accepted; 19 and 20 WHEREAS, the proCeeds of the Bonds will finance certain 21 capital improvements, for which the City is proceeding pursuant 22 to its Charter and Laws of Minnesota for 1971, Chapter 773, as 23 amended, with any excess to be used for any other purpose 24 permitted by law; and qc.-as�. � 2 3 4 5 9 10 11 12 13 14 15 16 17 18 19 20 WHEREAS, the City has heretofore issued registered obligations in certificated Eorm, and incurs substantial costs associated with their printing and issuance, and substantial continuing transaction costs relating to their payment, transfer and exchange; and WHEREAS, the City has determined that significant savings in transaction costs wi11 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") registers transfers of ownership interests in the bonds by making computerized book entries on its own books and distributes gayments 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 21 WHEREAS, "Participants" means those financial insti- 22 tutions for whom the Depository effects book-entry transfers and 23 pledges of securities deposited and immobilized with the 24 Depository; and 25 WHEREAS, The Depository Trust Company, a limited 26 purpose trust company organized under the laws of the State of 27 New York, or any of its successors or successors to its functions 28 hereunder (the "Depository"), will act as such depository with 29 respect to the Bonds except as set forth below, and there is 30 before this Council a form of letter of representations (the 31 "Letter of Representations") setting forth various matters 32 relating to the Depository and its role with respect to the 33 Bonds; and 34 35 36 37 38 39 40 41 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 (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 42 WHEREAS, the City will be able to replace the 43 Depository or under certain circumstances to abandon the "global 44 book-entry form" by permitting the Global Certificates to be 45 exchanged for smaller denominations typical of ordinary bonds 314185.2 2 96-aS6 � 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 registered on the City's bond register; and "Replacement Bonds" means the certificates representing 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 City Treasurer or a successor registrar appointed as provided in paragraph 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 determines 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 negotiation; and 20 WHEREAS, proposals for 21 Springsted Incorporated pursuant 22 Terms of Proposal therein: 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 the Bonds have been solicited by to an Official Statement and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. AcCeptance of Proposal. The proposal of Merrill Lynch & Co. (the "Purchaser") to purchase $14,500,000 General Obligation Capital Improvement Bonds, Series 1996A, of the City (the "Bonds", or individually a"BOnd"), in accordance with the Tenns of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for the Bonds the sum of $14,358,855.55, plus interest accrued 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 her designee, is directed to retain the deposit of the Purchaser and to forthwiCh return to the others making proposals their good faith checks or drafts. 38 2. Title; Original Issue Date: Denominations: 39 Maturities. The Bonds shall be titled "General Obligation 40 Capital Improvement Bonds, Series 1996A", shall be dated April 1, 41 1996, as the date of original issue and shall be issued forthwith 42 on or after such date as fully registered bonds. The Bonds shall 43 be numbered from R-1 upward. Global Certificates shall each be 44 in the denomination of the entire principal amount maturing on a 45 single date, or, if a portion of said principal amount is 46 prepaid, said principal amount less the prepayment. Replacement 314185.3 3 q ���� 9 10 Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof o£ a single maturity. The Bonds shall mature on March 1 in the years and amounts as follows: Year Amount Year Amount 1997 $1,215,000 1998 1,225,000 1999 1,250,000 2000 1,665,000 2001 1,375,000 11 3. Purgose. The Bonds shall provide funds for the 12 construction of various capital improvements (the "Improvements") 13 in the City. The proceeds of the Bonds shall be deposited and 14 used as provided in paragraph 17, for the purpose described by 15 Laws of Minnesota for 1971, Chapter 773, as amended, and any 16 excess moneys shall be devoted to any other purpose permitted by 17 law. The total cost of the Improvements, which shall include all 18 costs enumerated in Minnesota Statutes, Section 475.65, is 19 estimated to be at least equal to the amount of the Bonds. Work 20 on the Improvements shall proceed with due diligence to 21 completion. 22 4. Interest. The Bonds shall bear interest payable 23 semiannually on March 1 and September 1 of each year (each, an 24 "Interest Payment Date"}, commencing September 1, 1996, 25 calculated on the basis of a 360-day year of twelve 30-day 26 months, at the respective rates per annum set forth opposite the 27 maturity years as follows: G�z7 29 30 31 32 33 Maturity Year 1997 1998 1999 2000 2001 Interest Rate Maturitv Year Interest Rate 34 35 36 37 38 39 40 41 42 43 44 45 46 4.00Oo 4.000 4.200 4.375 4.400 2002 $1,425,000 2003 1,500,000 2004 1,550,000 2005 1,625,000 2006 1,670,000 2002 4.500% 2003 4.600 2004 4.700 2005 4.800 2006 4.900 5. Description of the Global Certificates and Global Book-Entry Svstem. Upon their original issuance the Bonds will be issued in the form of 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 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 314785.3 �c.•�.s� 2 3 4 5 6 7 � il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 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 Depositoiy 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 transferring funds as may be requested by the Holder of a Global Certificate. 6. Immobilization of Global Certificates by the Depository; Successor Depository; Replacement Bonds. Pursuant to the request of the Purchaser to the Depository, which request is required by the Texms 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 of transfer of ownership of a Global Certificate, as provided in paragraph 12, (ii) To any successor 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 "clearing agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended, 374755.2 °I(. - �5� 1 2 3 4 5 6 7 10 (iii) To a substitute depository designated by and acceptable to the City upon (a) the determination 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 carxy 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: 11 (a) the Depository shall resign or discontinue 12 its services for the Bonds and the City is unable to 13 locate a substitute depository within two (2) months 14 following the resignation or determination of non- 15 eligibility, or 16 (b) upon a determination by the City in its sole 17 discretion that (1) the continuation of the book-entry 18 system described herein, which precludes the issuance 19 of Certificates (other than Global Certificates) to any 20 Holder other than the Depository (or its nominee), 21 might adversely affect the interest of the beneficial 22 owners of the Bonds, or (2) that it is in the best 23 interest of the beneficial owners of the Bonds that 24 they be able to obtain certificated bonds, 25 in either of which events the City shall notify Holders of 26 its determination and of the availability of certificates 27 (the "Replacement Bonds") to Holders requesting the same and 28 the registration, transfer and exchange of such Bonds will 29 be conducted as provided in paragraphs 9B and 12 hereof. 30 31 32 33 34 35 36 37 38 E.�'] In the event of a succession of the Depository as may be authorized by this paragraph, the Bond Registrar upon presentation of Global Certificates shall register their transfer to the substitute or successor depository, and the substitute or successor depository shall be treated as the Depository for all purposes and functions under this resolution. The Letter 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 agreement may be entered into. 7. Redemption 40 (a) Optional Redemption: Due Date. All Bonds maturing 41 after March 1, 2004, shall be subject to redemption and 42 prepayment at the option of the City on such date and on any day 43 thereafter at a price of par plus accrued interest. Redemption 314785.2 q�. • �s s�. 1 may be in whole or in part of the Bonds subject to prepayment. 2 If redemption is in part, those Bonds remaining unpaid may be 3 prepaid in such order of maturity and in such amount per maturity 4 as the City shall determine; and if only part of the Bonds having 5 a common maturity date are called for prepayment, the Global 6 Certificates may be prepaid in $5,�00 increments of principal 7 and, if applicable, the specific Replacement Bonds to be prepaid 8 shall be chosen by lot by the Bond Registrar. Bonds or portions 9 thereof called for redemption shall be due and payable on the 10 redemption date, and interest thereon shall cease to accrue from 11 and after the redemption date. 12 (b) Notation on Global Certificate. Upon a reduction in 13 the aggregate principal amount of a Global Certificate, the 14 Holder may make a notation of such redemption on the panel 15 provided on the Global Certificate stating the amount so 16 redeemed, or may return the Global Certificate to the Bond 17 Registrar in exchange for a new Global Certificate authenticated 18 by the Bond Registrar, in proper principal amount. Such 19 notation, if made by the Holder, shall be for reference only, and 20 may not be relied upon by any other person as being in any way 21 determinative of the principal amount of such Global Certificate 22 outstanding, unless the Bond Registrar has signed the appropriate 23 column of the panel. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (c) Selection of Re�lacement Bonds. To effect a partial redemption of Replacement Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall 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. 40 (d) Partial Redemption of Replacement Bonds. If a 41 Replacement Bond is to be redeemed only in part, it shall be 42 surrendered to the Bond Registrar (with, if the City or Bond 43 Registrar so requires, a written instrument of transfer in form 44 satisfactory to the City and Bond Registrar duly executed by the 45 Holder thereof or his, her or its attorney duly authorized in 46 writing) and the City shall execute (if necessary) and the Bond 47 Registrar shall authenticate and deliver to the Holder of such 314185.2 7 °!c.-as� 1 Replacement Bond, without service charge, a new Replacement Bond 2 or Bonds of the same series having the same stated maturity and 3 interest rate and of any authorized denomination or 4 denominations, as reguested by such Holder, in aggregate 5 principal amount equal to and in exchange for the unredeemed 6 portion of the principal of the Bond so surrendered. 7 (e) Request for Redemption. The Bond Registrar shall Call 8 Bonds for redemption and payment as herein provided upon receipt 9 by the Bond Registrar at least forty-five (45) days prior to the 10 redemption date of a request of the City, in written form if the il Bond Registrar is other than a City officer. Such request shall 12 specify the principal amount of Bonds to be called for redemption 13 and the redemption date. 14 (f) Notice. Mailed notice of redemption shall be given to 15 the paying agent (if other than a City officer) and to each 16 affected Holder. If and when the City shall call any of the 17 Bonds for redemption and payment prior to the stated maturity 18 thereof, the Bond Registrar shall give written notice in the name 19 of the City of its intention to redeem and pay such Bonds at the 20 office of the Bond Registrar. Notice of redemption shall be 21 given by first class mail, postage prepaid, mailed not less than 22 thirty (30) days prior to the redemption date, to each Holder of 23 Bonds to be redeemed, at the address appearing in the Bond 24 Register. All notices of redemption shall state: 25 (i) The redemption date; 26 (ii) The redemption price; 27 (iii) If less than all outstanding Bonds are to be 28 redeemed, the identification (and, in the case of partial 29 redemption, the respective principal amounts) of the Bonds 30 to be redeemed; 31 (iv) That on the redemption date, the redemption price 32 will become due and payable upon each such Bond, and that 33 interest thereon shall cease to accrue from and after said 34 date; and 35 (v) The place where such Bonds are to be surrendered 36 for payment of the redemption price (which shall be the 37 office of the Bond Registrar). 38 (g) Notice to Depository. Notices to The Depository Trust 39 Company or its nominee shall contain the CUSIP numbers of the 40 Bonds. If there are any Holders of the Bonds other than the 41 Depository or its nominee, the Bond Registrar shall use its best 42 efforts to deliver any such notice to the Depository on the 314185.2 8 °l c. - zs�. 1 business day next preceding the date of mailing of such notice to 2 all other Holders. 3 8. Bond Registrar. The Treasurer of the City is 4 appointed to act as bond registrar and transfer agent with 5 respect to the Bonds (the "BOnd Registrar"), and sha11 do so 6 unless and until a successor Bond Registrar is duly appointed. A 7 successor Bond Registrar shall be an officer of the City or a S bank or trust company eligible for designation as bond registrar 9 pursuant to Minnesota Statutes, Chapter 475, and may be appointed 10 pursuant to any contract the City and such successor Bond 11 Registrar shall execute which is consistent herewith. The Bond 12 Registrar shall also serve as paying agent unless and until a 13 successor paying agent is duly appointed. Principal and interest 14 on the Bonds shall be paid to the Holders (or record holders) of 15 the Bonds in the manner set forth in the forms of Bond and 16 paragraph 14 of this resolution. 17 9. Forms of Bond The Bonds shall be in the form of 18 Global Certificates unless and until Replacement Bonds are made 19 availak�le as provided in paragraph 6. Each form of bond may 20 contain such additional or different terms and provisions as to 21 the form of payment, record date, notices and other matters as 22 are consistent with the Letter of Representations and approved by 23 the City Attorney. 24 A. Global Certificates. The Global Certificates, 25 together with the Certificate of Registration, the Register of 26 Partial Payments, the fonn of Assignment and the registration 27 information thereon, shall be in substantially the following form 28 and may be typewritten rather than printed: 3'14185.2 9 q`.asc UNITED STATES OF AMERICA STATE OF MII3NESOTA RAMSEY COUNTY CITY OF SAINT PAUL 5 R- 6 7 8 INTEREST 9 RATE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 GENERAL OBLIGATION CAPITAL IMPROVEMENT BOND, SERIES 1996A MATURITY DATE March 1, REGISTERED OWNER: PRINCIPAL AMOUNT: DATE OF ORIGINAL ISSUE April 1, 1996 KNOW ALL PERSONS BY THESE PRESENTS that th Saint Paul, Ramsey County, Minnesota (the "ISSUer" o certifies that it is indebted and for value received CUSIP DOLLARS e City of r "City"), 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, 1996, 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 the 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 return the Bond to the Bond Registrar in exchange for a new Bond in the proper principal amount. Such notation, if Holder, shall be for reference only, and may not be 374185.2 10 made by the relied upon °I� - �SG 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 by any other person as being in any way detexminative 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"). Intere5t 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. 25 Date of Pavment Not Business Day. If the date for 26 payment of the principal of, premium, if any, or interest on this 27 Bond sha11 be a Saturday, Sunday, 1ega1 haliday or a day on which 28 banking institutions in the City of New York, New York, or the 29 city where the principal office of the Bond Registrar is located 30 are authorized by law or executive order to close, then the date 31 for such payment shall be the next succeeding day which is not a 32 Saturday, Sunday, legal holiday or a day on which such banking 33 institutions are authorized to close, and payment on such date 34 shall have the same force and effect as if made on the nominal 35 date of payment. 36 Redemption. All Bonds of this issue (the "Bonds") 37 maturing after March 1, 2004, are subject to redemption and 38 prepayment at the option of the Issuer on such date and on any 39 day thereafter at a price of par plus accrued interest. 40 Redemption may be in whole or in part of the Bonds subject to 41 prepayment. If redemption is in part, those Bonds remaining 42 unpaid may be prepaid in such order of maturity and in such 43 amount per maturity as the City shall determine; and if only part 44 of the Bonds having a common maturity date are called for 45 prepayment, this Bond may be prepaid in $5,000 increments of 46 principal. Bonds or portions thereof called for redemption shall 47 be due and payable on the redemption date, and interest thereon 48 shall cease to accrue from and after the redemption date. 314185.2 1 1 �tt,- as� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Notice of Redemption. 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. Replacement or I3otation of Bonds after Partial Redemption. 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 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 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 $14,500,000, a11 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, including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 13, 1996 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various capital improvements in the City. This Bond is payable out of the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. 314785.2 1 2 �C•�SL � 2 3 4 5 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 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 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, are issuable solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the 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. ReAlacement 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. 36 Transfer. This Bond shall be registered in the name of 37 the payee on the books of the Issuer by presenting this Bond for 38 registration to the Bond Registrar, who will endorse his, her or 39 its name and note the date of registration opposite the name of 40 the payee in the certificate of registration attached hereto. 41 Thereafter this Bond may be transferred by delivery with an 42 assignment duly executed by the Holder or his, her or its legal 43 representatives, and the Issuer and Bond Registrar may treat the 44 Holder as the person exclusively entitled to exercise all the 45 rights and powers of an owner until this Bond is presented with 46 such assignment for registration of transfer, accompanied by 314185.2 1 3 �ic,•ZS� � 2 3 4 5 6 7 8 9 10 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, 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 e�ense 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. il Fees upon Transfer or Loss. The Bond Registrar may 12 require payment of a sum sufficient to cover any tax or other 13 governmental charge payable in connection with the transfer or 14 exchange of this Bond and any legal or unusual costs regarding 15 tran5fers and lost Bonds. 16 Treatment of Registered Owner. The Issuer and Bond 17 Registrar may treat the person in whose name this Bond is 18 registered as the owner hereof for the purpose of receiving 19 payment as herein provided (except as otherwise provided with 20 respect to the Record Date) and for all other purposes, whether 21 or not this Bond shall be overdue, and neither the Issuer nor the 22 Bond Registrar shall be affected by notice to the contrary. 23 Authentication This Bond shall not be valid or become 24 obligatory for any purpose or be entitled to any security unless 25 the Certificate of Authentication hereon shall have been executed 26 by the Bond Registrar. 27 Not Oualified Tax-Exempt Obligations. The Bonds have 28 not been designated by the Issuer as "qualified tax-exempt 29 obligations" for purposes of Section 265(b)(3) of the federal 30 Internal Revenue Code of 1986, as amended. 314185.2 14 °►�. �SG 1 IT IS HEREBY CERTIFIED AND RECITED that all acts, 2 conditions and things required by the Constitution and laws of 3 the State of Minnesota and the Charter of the Issuer to be done, 4 to happen and to be performed, precedent to and in the issuance 5 of this Bond, have been done, have happened and have been 6 performed, in regular and due fonn, time and manner as required 7 by law, and that this Bond, together with all other debts of the 8 Issuer outstanding on the date of original issue hereof and on 9 the date of its issuance and delivery to the original purchaser, 10 does not exceed any constitutional or statutory or Charter 11 limitation of indebtedness. 12 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey 13 County, Minnesota, by its City Council has caused this Bond to be 14 sealed with its official seal and to be executed on its behalf by 15 the photocopied facsimile signature of its Mayor, attested by the 16 photocopied facsimile signature of its Clerk, and countersigned 17 by the photocopied facsimile signature of its Director, 18 Department of Finance and Management Services. 314185.2 1 5 °�(. ��5� 1 2 3 4 Date of Registration: Registrable by: Payable at: _ 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHFsNTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned il within. 12 13 14 , 15 Bond Registrar 16 17 18 19 20 21 22 23 By Authorized Signature (SEAL) CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City C Countersigned: Director, Department of Finance and Management Services General Obligation Capital Improvement Bond, Series 1996A, No. R- . 374785.2 16 q�• as� � CERTIFICATE OF REGISTRATION 2 The transfer of ownership of the principal amount of the attached 3 Bond may be made only by the registered owner or his, her or its 4 legal representative last noted below. 5 DATE OF SIGNATURE OF 6 REGISTRATION REGISTERED OWNER BOND REGISTRAR 7 � E 10 11 12 13 314185.2 1 7 qc.-asc. ,� REGISTfiR OF PARTIAL PAYMENTS 2 The principal amount of the attached Bond has been prepaid on the 3 dates and in the amounts noted below: 4 Signature of Signature of 5 Date Amount Bondholder Bond Registrar 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 If a notation is made on this register, such notation has the 23 effect stated in the attached Bond. Partial payments do not 24 require the presentation of the attached Bond to the Bond 25 Registrar, and a Holder could fail to note the partial payment 26 here. 314185.2 1 8 �C•�SL � ABBREVIATIONS 2 The following 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 TfiN ENT - as tenants by the entireties 7 JT TEN - as joint tenants with right of survivorship 8 and not as tenants in common 9 UTM.� - as custodian for 10 (Cust) (Minor) 11 under the Uniform Transfers to Minors Act 12 (State) 13 Additional abbreviations may also be used 14 though not in the above list. 314185.2 1 9 �1�•�.5� � 2 3 4 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 17 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: 18 Signature(s) must be guaranteed by a national bank or trust 19 company or by a brokerage firm having a membership in one of the 20 major stock exchanges or any other "Eligible Guarantor 21 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 22 23 24 25 26 27 28 29 30 The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: 374185.2 (Include information for all joint owners if the Bond is held by joint account.) 20 qc.�zs� � 5 6 7 8 9 10 11 12 13 14 15 16 17 B. Replacement Bonds. If the City has notified Holders that Replacement Bonds have been made available as provided in paragraph 6, then for every Bond thereafter transferred or exchanged (including an exchange to reflect the partial prepayment of a Global Certificate not previously exchanged for Replacement Bonds) the Bond RegisCrar 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 exchange 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 foxm of Assignment and the registration information thereon, shall be in substantially the following form: 314185.2 2 1 q�.. �s� 1 UNITED STATES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL 5 R- 6 GENERAL OBLIGATION CAPITAL IMPROVEMENT 7 BOND, SERIES 1996A 8 INTEREST 9 RATE MATURITY DATE OF DATE ORIGINAL ISSUE CUSIP 10 April 1, 1996 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 REGISTERED OWNER: PRINCIPAL AMOUNT: 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 March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September l, 1996, 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 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 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 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 314185.2 2 2 9C,-as� 1 business on a date (the "Special Record Date") fixed by the Bond 2 Registrar whenever money becomes available for payment of the 3 defaulted interest. Notice of the Special Record Date shall be 4 given to Bondholders not less than ten days prior to the Special 5 Record Date. The principal of and premium, if any, and interest 6 on this Bond are payable in lawful money of the United States of 7 America. 8 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF 9 THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL 10 FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 11 IT IS HEREBY CERTIFIED AND RECITED that all acts, 12 conditions and things required by the Constitution and laws of 13 the State of Minnesota and the Charter of the Issuer to be done, 14 to happen and to be performed, precedent to and in the issuance 15 of this Bond, have been done, have happened and have been 16 performed, in regular and due form, time and manner as required 17 by law, and that this Bond, together with all other debts of the 18 Issuer outstanding on the date of original issue hereof and on 19 the date of its issuance and delivery to the original purchaser, 20 does not exceed any constitutional or statutory or Charter 21 limitation of indebtedness. 22 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey 23 County, Minnesota, by its City Council has caused this Bond to be 24 sealed with its official seal or a facsimile thereof and to be 25 executed on its behalf by the original or facsimile signature of 26 its Mayor, attested by the original or facsimile signature of its 27 Clerk, and countersigned by the original or facsimile signature 28 of its Director, Department of Finance and Management Services. 374185.2 2 3 q�•as� 1 2 3 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 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 By Authorized Signature 20 (SEAL) 314185.2 CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Department of Finance and Management Services 24 aI(,��5(0 � ON REVERSE OF BOND 2 Date of Payment Not Business Day. If the date for 3 payment of the principal of, premium, i£ 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 New York, New York, or the 6 city where the principal office 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 close, 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 after March 1, 2004, are subject to redemption and 15 prepayment at the option of the Issuer on such date and on any 16 day thereafter at a price of par plus accrued interest. 17 Redemption may be in whole or in part of the Bonds subject to 18 prepayment. If redemption is in part, those Bonds remaining 19 unpaid may be prepaid in such order of maturity and in such 20 amount per maturity as the City shall determine; and if only part 21 of the Bonds having a common maturity date are called for 22 prepayment, the specific Bonds to be prepaid shall be chosen by 23 lot by the Bond Registrar. Bonds or portions thereof called for 24 redemption shall be due and payable on the redemption date, and 25 interest thereon shall cease to accrue from and after the 26 redemption date. 27 Notice of Redemption. Mailed notice of redemption 28 shall be given to the paying agent (if other than a City officer) 29 and to each affected Holder of the Bonds. In the event any of 30 the Bonds are called for redemption, written notice thereof will 31 be given by first class mail mailed not less than thirty (30) 32 days prior to the redemption date to each Holder of Bonds to be 33 redeemed. In connection with any such notice, the "CUSIP" 34 numbers assigned to the Bonds shall be used. 35 Selection of Bonds for Redemption. To effect a partial 36 redemption of Bonds having a common maturity date, the Bond 37 Registrar shall assign to each Bond having a common maturity date 38 a distinctive number for each $5,000 of the principal amount of 39 such Bond. The Bond Registrar shall then select by lot, using 40 such method of selection as it shall deem proper in its 41 discretion, from the numbers assigned to the Bonds, as many 42 numbers as, at $5,000 for each number, shall equal the principal 43 amount of such Bonds to be redeemed. The Bonds to be redeemed 44 shall be the Bonds to which were assigned numbers so selected; 45 provided, however, that only so much of the principal amount of 314185.2 2 5 q(,- �5� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 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 fonn 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 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; Puroose: General Oblic�ation. This Bond is one of an issue in the total principal amount of $14,500,000, 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 conformity with the Constitution and laws of the State of Minnesota, including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 13, 1996 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various capital improvements in the City. This Bond is payable out of the General Debt ServiCe Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the 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. 314785.2 26 q(.� �.s� 1 Transfer. This Bond is transferable by the Holder in 2 person or by his, her or its attorney duly authorized in writing 3 at the principal office of the Bond Registrar upon presentation 4 and surrender hereof to the Bond Registrar, all subject to the 5 terms and conditions provided in the Resolution and to reasonable 6 regulations of the Issuer contained in any agreement with, or 7 notice to, the Bond Registrar. Thereupon the Issuer shall 8 execute and the Bond Registrar shall authenticate and deliver, in 9 exchange for this Bond, one or more new fully registered Bonds in 10 the name of the transferee (but not registered in blank or to 11 "bearer" or similar designation), of an authorized denomination 12 or denominations, in aggregate principal amount equal to the 13 principal amount of this Bond, of the same maturity and bearing 14 interest at the same rate. 15 Fees upon 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 exchange of this Bond and any legal or unusual costs regarding 19 transfers and lost Bonds. 20 Treatment of Registered Owner. The Issuer and Bond 21 Registrar may treat the person in whose name this Bond is 22 registered as the owner hereof for the purpose of receiving 23 payment as herein provided (except as otherwise provided on the 24 reverse side hereof with respect to the Record Date) and for all 25 other purposes, whether or not this Bond shall be overdue, and 26 neither the Issuer nor the Bond Registrar shall be affected by 27 notice to the contrary. 28 Authentication This Bond shall not be valid or become 29 obligatory for any purpose or be entitled to any security unless 30 the Certificate of Authentication hereon shall have been executed 31 by the Bond Registrar. 32 Not Oualified Tax-Exempt Oblicrations. 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. 314185.2 Z 7 q�- ass. �� 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 £ull 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 10 UTMA - as custodian for il (Cust) (Minor) 12 under the Uniform Transfers to Minors Act 13 (State) 14 Additional abbreviations may also be used 15 though not in the above list. 314785.2 2 $ q�.asb � 2 3 4 5 6 7 8 ASSIGNMENT For value raceived, the undersigned hereby sells, assigns and transfers unto the within 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 17 18 19 20 21 22 23 24 25 26 27 28 Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution�� as defined in 17 CFR 240.17Ad-15(a)(2). The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 314185.2 29 GiC- a5G � 2 3 4 5 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 10. Execution The Bonds shall be executed on behalf of 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 pennitted 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 be£ore 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 Re�istration. No Bond shall be valid or obligatory for any purpose or be entitzed 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 Registrar shall insert as the date of registration the date of original issue, which date is April 1, 1996. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 12. Registration; 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 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 CertiEicate 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 374185.2 3 � q(� -as c. 1 be transferred by delivery with an assignment duly executed by 2 the Holder or his, her or its legal representative, and the City 3 and Bond Registrar may treat the Holder as the person exclusively 4 entitled to exercise all the rights and powers of an owner until 5 a Global Certificate is presented with such assignment for 6 registration of transfer, accompanied by assurance of the nature 7 provided by law that the assignment is genuine and effective, and 8 until such transfer is registered on said books and noted thereon 9 by the Bond Registrar, all subject to the texms and conditions 10 provided in this resolution and to reasonable regulations of the 11 City contained in any agreement with, or notice to, the Bond 12 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 CertificaCes 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. 21 Upon surrender for transfer of any Replacement Bond at 22 the principal office of the Bond Registrar, the City shall 23 execute (if necessary), and the Bond Registrar shall 24 authenticate, insert the date of registration (as provided in 25 paragraph 11) of, and deliver, in the name of the designated 26 transferee or trans£erees, one or more new Replacement Bonds of 27 any authorized denomination or denominations of a like aggregate 28 principal amount, having the same stated maturity and interest 29 rate, as requested by the transferor; provided, however, that no 30 bond may be registered in blank or in the name of ��bearer" or 31 similar designation. 32 At the option of the Holder of a Replacement Bond, 33 Replacement Bonds may be exchanged for ReplacemenC Bonds of any 34 authorized denomination or denominations of a like aggregate 35 principal amount and stated maturity, upon surrender of the 36 Replacement Bonds to be exchanged at the principal office of the 3'7 Bond Registrar. Whenever any Replacement Bonds are so 38 surrendered for exchange, the City shall execute (if necessary), 39 and the Bond Registrar shall authenticate, insert the date of 40 registration of, and deliver the Replacement Bonds which the 41 Holder making the exchange is entitled to receive. Global 42 Certificates may not be exchanged for Global Certificates of 43 smaller denominata.ons. 314185.2 3 1 qc, • asc 1 All Bonds surrendered upon any exchange or transfer 2 provided for in this resolution shall be promptly cancelled by 3 the Bond Registrar and thereafter disposed of as directed by the 4 City. 5 All Bonds delivered in exchange for or upon transfer of 6 Bonds shall be valid general obligations of the City evidencing 7 the same debt, and entitled to the same benefits under this 8 resolution, as the Bonds surrendered for such exchange or 9 transfer. 10 Every Bond presented or surrendered for transfer or 11 exchange shall be duly endorsed or be accompanied by a written 12 instrument of transfer, in form satisfactory to the Bond 13 Registrar, duly executed by the Holder thereof or his, her or its 14 attorney duly authorized in writing. 15 The Bond Registrar may require payment of a sum 16 sufficient to cover any tax or other governmental charge payable 17 in connection with the transfer or exchange of any Bond and any 18 legal or unusual costs regarding transfers and lost Bonds. 19 Transfers shall also be subject to reasonable 20 regulations of the City contained in any agreement with, or 21 notice to, the Bond Registrar, including regulations which permit 22 the Bond Registrar to close its transfer books between record 23 dates and payment dates. 24 13. Riahts Upon Transfer or Exchange. Each Bond 25 delivered upon transfer of or in exchange for or in lieu of any 26 other Bond shall carry all the rights to interest accrued and 27 unpaid, and to accrue, which were carried by such other Bond. 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 14. Interest Payment; 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 (i5th) 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") 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 314785.2 3 2 ��-as� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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) 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. 16 (B) The City and Bond Registrar may treat the person in 17 whose name any Bond is registered as the owner o� such Bond for 18 the purpose of receiving payment of principal of and premium, if 19 any, and interest (sub}ect to the payment provisions in paragraph 20 14 above) on, such Bond and for all other purposes whatsoever 21 whether or not such Bond shall be overdue, and neither the City 22 nor the Bond Registrar sha11 be affected by notice to the 23 contrary. 24 (C? �y consent, request, direction, approval, objection or 25 other instrument to be signed and executed by the Holders may be 26 in any number of concurrent writings of similar tenor and must be 27 signed or executed by such Holders in person or by agent 28 appointed in writing. Proof of the execution of any such 29 consent, request, direction, approval, objection or other 30 instrument or of the writing appointing any such agent and of the 31 ownership of Bonds, if made in the following manner, shall be 32 sufficient for any of the purposes of this resolution, and shall 33 be conclusive in favor of the City with regard to any action 34 taken by it under such request or other instrument, namely: 35 36 37 38 39 40 41 (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 within 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. 314785.2 33 ac.-as� 2 3 4 (2) Subject to the provisions of above, the fact of the ownership by an the amounts and numbers of such Bonds, holding of the same, may be proved by register. subparagraph (A) y person of Bonds and and the date o£ the reference to the bond 6 16. Delivezv; Application of Proceeds. The Global 7 Certificates when so prepared and executed shall be delivered by 8 the Director, Department of Finance and Management Services, to 9 the Purchaser upon receipt of the purchase price, and the 10 Purchaser shall not be obliged to see to the proper application il thereof. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 36 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 17. F'und and Account. There is hereby created a special account to be designated the "Capital Improvement Bonds of 1996 Account" (the "ACCOUnt") 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 Debt Service Fund (numbered 960, herein the "FUnd"). The Fund and the AcCOUnt shall each be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. (i) Account. To the Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for Che Bonds in excess of $14,355,000. From the Account there shall be paid all costs and expenses of making the Improvements, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Account 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 levied herein; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Account, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to Laws of Minnesota for 1971, Chapter 773, as amended, or used for any other purpose permitted by law, or transferred to the Fund. All earnings on the Account shall remain in the Account, or may be transferred to the Fund. 314185.2 �L! ��.as� 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 (ii) F`und. There is hereby pledged and there shall be credited to the Fund, to a special sinking fund account which is hereby created and established therein for the payment of the Bonds: (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $14,355,000; (c) any collections of all taxes which are herein levied for the payment of the Bonds and interest thereon as provided in paragraph 18; (d) all funds remaining in the Account after completion of the Improvements and payment of the costs thereof, not so transferred to the account of another improvement or used for any oCher purpose permitted by law; (e) all investment earnings on moneys held in said special account in the Fund; and (f) any and all other moneys which are properly available and are appropriated by the governing body of the City to said special account in the Fund, including (at the discretion of the City Council) franchise fees paid by the district heating utility. Said special account created in the Fund shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other bonds of the City heretofore or hereafter issued by the City and made payable from said special account in the 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 $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Account or said special account in the Fund (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal 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 Account or the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumen- tality 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"). 374785.2 3 5 �6-as6 1 18. Tax Levy: Coverage Test. To provide moneys for 2 payment of the principal and interest on the Bonds there is 3 hereby levied upon all of the taxable property in the City a 4 direct annual ad valorem tax which shall be spread upon the tax 5 rolls and collected with and as parC of other general property 6 ta�ces in the City for the years and in the amounts as follows: 7 Year of Tax Year of Tax 8 Levy Collection Amount 9 10 11 12 13 14 15 16 17 18 1995` 1996 1997 1998 1999 2000 2001 2002 2003 2004 1996' 1997 1998 1999 2000 2001 2002 2003 2004 2005 $1,900,652' 1,916,932 1,891,732 2,272,357 1,891,371 1,880,346 1,891,764 1,871,814 1,874,072 1,839,422 19 *heretofore levied or provided from other available City funds 20 The tax levies are such that if collected in full they, 21 together with estimated collections of any other revenues herein 22 pledged for the payment of the Bonds, will produce at least five 23 percent (50) in excess of the amount needed to meet when due the 24 principal and interest payments on the Bonds. The tax levies 25 shall be irrepealable so long as any of the Bonds are outstanding 26 and unpaid, provided that the City reserves the right and power 27 to reduce the levies in the manner and to the extent permitted by 28 Minnesota Statutes, Section 475.61, Subdivision 3. 29 19. General Obligation Pledqe. For the prompt and 30 full payment of the principal and interest on the Bonds, as the 31 same respectively become due, the full faith, credit and taxing 32 powers of the City shall be and are hereby irrevocably pledged. 33 If the balance in the Fund (as defined in paragraph 17 hereof) is 34 ever insufficient to pay all principal and interest then due on 35 the Bonds payable therefrom, the deficiency sha11 be promptly 36 paid out of any other funds of the City which are available for 37 such purpose, including the general fund of the City, and such 38 other funds may be reimbursed with or without interest from the 39 Fund when a sufficient balance is available therein. 40 20. Certificate of Reaistration. The Director, 41 Department of Finance and Management Services, is hereby directed 42 to file a certified copy of this resolution with the officer of 43 Ramsey County, Minnesota, performing the functions of the county 44 auditor (the "County Auditor"), together with such other 314785 3 3 6 �,�.as� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 information as the County Auditor shall require, and to obCain 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. 21. Records and Certificates The officers 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 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 appear 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 heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 18 22. Negative Covenants as to Use of Proceeds and 19 Improvements. The City hereby covenants not to use the proceeds 20 of the Bonds or to use the Improvements, or to cause or permit 21 them to be used, or to enter into any deferred payment arrange- 22 ments for the cost of the Improvements, in such a manner as to 23 cause the Bonds to be "private activity bonds" within the meaning 24 of Sections 103 and 141 through 150 of the Code. The City hereby 25 covenants not to use the proceeds of the Bonds in such a manner 26 as to cause the Bonds to be "hedge bonds" within the meaning of 27 Section 149(g) of the Code. 28 23. Tax-Exempt Status of the Bonds: Rebate: EleCtion5. 29 The City shall comply with requirements necessary under the Code 30 to establish and maintain the exclusion from gross income under 31 Section 103 of the Code af the interest on the Bonds, including 32 without limitation requirements relating to temporary periods for 33 investments, limitations on amounts invested at a yield greater 34 than the yield on the Bonds, and the rebate of excess investment 35 earnings to the United States. 36 The City expects that the two-year expenditure exception to 37 the rebate requirements may apply to the construction proceeds of 38 the Bonds. 39 If any elections are available now or hereafter with 40 respect to arbitrage or rebate matters relating to the Bonds, the 41 Mayor, Clerk, Treasurer and Director, Department of Finance and 42 Management Services, or any of them, are hereby authorized and 43 directed to make such elections as they deem necessary, 44 appropriate or desirable in connection with the Bonds, and all 314185.2 3 7 ��. a.sG FI 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ai aa 23 such elections shall be, and shall be deemed and treated as, elections of the City. 24. No Desiqnation of Oualified Tax-Exem�t Obligations. The Bonds, together with other obligations issued by the City in 1996, exceed in amount those which may be qualified as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, and hence are not designated for such purpose. 25. Letter of Representations. The Letter of Representations is hereby approved, and shall be executed on behalf of the City by the Mayor and Director, Department of Finance and Management Services, in substantially the form approved, with such changes, modifications, additions and deletions as shall be necessary and appropriate and approved by the City Attorney. Execution by such officers of the Letter of Representations shall be conclusive evidence as to the necessity and propriety of changes and their approval by the City Attorney. 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 Representa- tions, as it may be amended or supplemented by the City from time to time with the agreement or consent of The Depository Trust Company. 24 26. Negotiated Sale. The City has retained Springsted 25 Incorporated as an independent financial advisor, and the City 26 has heretofore detexmined, and hereby determines, to sell the 27 Bonds by private negotiation, all as provided by Minnesota 28 Statutes, Section 475.60, Subdivision 2(9). 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 27. 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 nationally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository ("SID"), if any, for 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. 314785.2 C�I9 °I(.•�S� 1 2 3 4 5 B. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the Municipal Securities Rulemaking Board ("MSRB") and (ii) the SID, notice of the occurrence of certain material events with respect to the Bonds in accordance with the Undertaking. 6 C. Provide or cause to be provided, in a timely 7 manner, to (i) each NRMSIR or to the MSRB and (ii) the SID, 8 notice of a failure by the City to provide the annual 9 financial information with respect to the City described in 10 the Undertaking. 11 The City agrees that its covenants pursuant to the Rule 12 set forth in this paragraph 27 and in the Undertaking are 13 intended to be for the benefit of the Holders of the Bonds and 14 shall be enforceable on behalf of such Holders; provided that the 15 right to enforce the provisions of these covenants shall be 16 limited to a right to obtain specific enforcement of the City's 17 obligations under the covenants. 18 The Mayor and Director, Department of Finance and 19 Management Services, or any other officers of the City authorized 20 to act in their stead (the "Officers"), are hereby authorized and 21 directed to execute on behalf of the City the Undertaking in 22 substantially the form presented to the City Council, subject to 23 such modifications thereof or additions thereto as are (i) 24 consistent with the requirements under the Rule, (ii) required by 25 the Purchaser, and (iii) acceptable to the Officers. 26 28. Severabilitv. If any section, paragraph or 27 provision of this re5olution shall be held to be invalid or 28 unenforceable for any reason, the invalidity or unenforceability 29 of such section, paragraph or provision shall not affect any of 30 the remaining provisions of this resolution. 374185.2 3 9 ;�.!� �t:, � x -��;= 3 ., . . _ �- . . �-�. w qc,.asG 1 29. Headinas. Headings in this resolution are 2 included for convenience of reference only and are not a part 3 hereof, and shall not limit or define the meaning of any 4 provision hereof. _ �a _ Requested by Department of: Adopted by Council: Adoption Certified By: � Approved by Mayoy. 1 B � De artment of F' and Mana ement Services Rv � e � Form Approved by City Attorney gY . G..+► �. Cj "r-`�--- °Ic, zs4 ` DEPARTMENT/OFPICE/CAUNG�L DME INITIATED N� 3 2 4 0 2 V Finance and Mana ement Services 2-28-36 GREEN SHEE _ CON7ACT PEflSON 8 PNONE INITIAVDATE INITIAL/DATE Q DEPANTMEM DIRECfOR � CIT' COUNqL Martha Rantorowicz �� � GmATTORNEY O CITYCLEFtK MUST BE ON fAUNCiL AGENDA BY (DATE� ROIITING O BUIXdET DIRECTOR O FlN. & MGT. SERVICE$ Dlii. March 13 1996 � � MAVOR (OflASSISTANT� � � TOTAL # OF SiGNATURE PAGES (CUP ALL LOCATIONS FOR SIGMATUH� ACCION PEWESTED: This resolution accepts the winning proposal and awards the bid for the $14,500,000 G.O. Capital Improvement Bonds, Series 1996A. Tliis is a competitive bond sale and the award is going to the bidder found to be the most advantageous (lowest cost) to the Cit;.. RECOMMENDAnoNS:Apprmre(A)arReject(R) pEfiSONALSERVICECONTRACTSMUSTANSWERTHEFOLLOWINCaQUES710NS: _ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION 1. Has this personlfirtn e�er worked under a coMract for this department? �. qe COMMf77EE YES �NO �_ � ^ 2. Has this person/firm ever been a ciry employee? YES NO _ DISTRICT CoURT _ 3. Does this personlfirm po55ess a skill not normally possessed by any curreni cily empioyee? SUPPOFiTSWHICHGOUNCILO&IECTIVEI YES NO Explain all yes answers on seperate sheet and attach to graen sheet INISIATING PqOBLEM, ISSUE, OPPOfiTUNISV (Who, Whet. When. Whera, These bonds are for the purpose of funding the Capital Improvement Budget for 1996. $14,500,000 G.O. Capital Improvement Bonds FOR COUNCIL AGENDA OF MARCH 13, 1996 ADVANTAGESIFAPPROVED. N Funds will be on hand for spring CIB construction projects. DISADVANTAGES IFAPPROVED: None ,y ��S�'",;� �i� ;+�� F , �y `;"3' _._" �.^��' , : � .� i 'is"�.,°�' DISADVANTAGES IF NOT APPflOVED' � Funds will not be received in time for construction projects. TOTALAMOUN70FTRANSACTION $ 14.500.000 COST/REVENU6BUUGETED(CIRCLEONE) YES NO FUNOING SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION. (EXPLAIN) °lc.-�s� EXHIBITS Exhibit A - Bids DEPARTMENT OF FINANCE AND MANAGEMENT SBRVICES Manha I-a,son, D"uecmr q `.a,s . CTI'Y OF SAINT PAUL z�o c� xau Telephone 6Z2-266-8797 Norm Colemax, Mayor 15 W. Ke1[ogg Boulevard Facsimile: 672-266-8919 Saint Pau/, Minnuo(a SSZ02 _ February 20, 1996 Mayor Norm Coleman Council President Dave Thune Members of the City Council Third F1oor City Hall 15 West Kellogg Boulevard Saint Paul, Minnesota 55102 Dear Mayor Coleman, Council President Thune and Members of the City Council: Attached are the recommendations and a calendar of events for the City's 1996 general obligation bond sales. The Department of Finance and Management Services will present a report including these recommendations to the full Council on February 28, 1996. The competitive bid sale is scheduled for Wednesday, March 13, 1996, with the Council awarding the bids at the 330 Council meeti� that afternoon. The law requires five Council votes for passage, so I hope you will plan to attend both of these meetings. If you have any questions pertaining to these recommendations, the schedule, or the bond sales, please do not hesitate to call me at 266-8797 or Martha Kantorowicz at 266-8836. Sincerely, � u� Martha Iarson, Director ML:mk attachment cc: Tom Cran Shirley Davis Terry Garvey Martha Kantorowicz Jim Snyder ✓Jerry Strathman F:\iucrs\kan[orod\ttmvil Schedule for March 1996 Bond Sales City of Saint Paui, Minnesota 7reasury Division s14,500,000 Genera{ Obtigation Capitat tmprovement eands, Series 1998A s2,220,000 C,eneral Obligation 5treet Im 19$v�e Special Assessment Bonds, Series ;6,750,00o General Obtigation StreeE lmprovement Refunding Sands, Series 1998C 59,100,OOQ General Obiigatian Water P1996D� Abatament Refunding Sonds, Seriss February 5, 1996 (Monday) February 12, 1996 (Monday) First draft of Officiaf Statement sent fo distribution list Drafting session to review Officia{ Sfatement - 9:00 A.Nf., offices of Spdngsted February 2�, 1896 (Tuesday) Rating teleconferance prepsration meeting -10:�0 A.M., Treasury Conference Room Sond Sale Recommendations sent to 5taff for Council and Mayor Fa6ruary 21, �1996 (WednesSay) Fekn.tary 22, 1996 (7hursday) Second drsft of Officiai Statement sent to designated smaii group �af fIRB� re�iaw � Deadl+ne for finai Otficiai Statement revisions to Spr+ngsted {A.M.) February 23, 1996 (Friday) Finai O�cial Statement sent ta printer for mailing to underwriters Rating packages, inc{uding OiS's and pre{iminary 1995 financial statements, sent to rating agencies {end of day) Letfer from Treasury to Council members reminding them of sale February 26, 1996 (Monday) Resolution awarding fhe bonds prepared by Brig9s and Morgan and sent to Treasury for distnbution to Councii for agenda Febniary 27, 1996 {Tuesday) p��55 fB forrat ng t�econference e 10:00 A� M� offices ot Springsted March 4, 1996 (Monday) Rating teleconference with Fitch -1:00 P.M., o�cas of Springsfed March 5, '1996 (Tuesday) Rating teieconferences with Moody's (9:00 A.M.) and S& P{i 1:00 A.M.}, o�ces of Springsted March 13, 1996 (Wednesday) Week of April 8, 1996 Receive and open bids for bonds -10:30 A.M. City Council awards bids - 3:30 P.N1. (Need five Council votes) Settlement for bonds 2120/96 °lc.-as � Recommendations For City of Saint Paul, Minnesota $14,500,000 General Obligation Capitat Improvement Bonds, Series 1996A $2,220,000 General Obligation Street lmprovement Special Assessment Bonds, Series 1996B $6,750,000 General Obligation Street Improvement Refunding Bonds, Series 1996C $9,100,000 General Obiigation Water Polfution Abatement Refunding Bonds, Series 1996D Study No. SO'T30L4M4N4 SPRINGSTED.fn�orporated February 19, 1996 .� SS E. SEVENTH PLACE, SUITE 100 SAINTPAUL,MN 55101-2143 612-223-3000 FAX:612-223-3002 SPRINGSTED Public Finance Advisws � s` February 19, 1996 Mayor Norm Coleman Members, City Council Ms. Martha Larson, Director, Department of Finance and Management Services Ms. Shirley Davis, Treasurer City of Saint Paul Saint Paul City Hall 15 West Kellogg Boulevard Saint Paul, MN 55102 Re: Recommendations for the Issuance of: $14,500,000 General Obligation Capital Improvement Bonds, Series 1996A $2,220,000 General Obligation Street Improvement Special Assessment Bonds, Series 19966 $6,750,000 General Obligation Street Improvement Refunding Bonds, Series 1996C $9,100,000 General Obligation Water Pollution Abatement Refunding Bonds, Series 1996D We respect�ully req�est your consideration of our recommendations for the above-named issues. A s��mmary of the purpose and primary characteristics of each issue is provided herein. Capital Improvement Bonds, Series 1996A The Capital Improvement Bonds are being issued to finance a poRion of the City's 1996 Capital tmprovement Program. The Capital lmprovement Bonds are being issued in the total principal amount of $14,500,000, with principal repayment due March 1, 1997 through 2006. The structure for this issue was determined after discussions with City staff about fluctuations in the annual tax levies for SAIST PAUL, MN YlINNEAPOLiS, b1N - BROOKF7ELD, WT � OVERLAND PpRK, KS PIASHIIM1GTON, DC � IOWA CITY, ]A City of Saint Paul, Minnesota February 19, 1996 a(.-as�. existing tax-supported debt. The structure was customized to partially smooth out levy requirements in the next several years. Additional customizing of the struc[ure for Capitai Improvement Bonds is expected to be conducted for next years issue as weil. The Capital Improvement Bonds will be paid primarily from annual tax levies. However, approximately $2 miilion of the issue, representing a portion of the Wabasha Street Bridge financing, is expected to be paid from annual revenues from the District Heating franchise fee. Page 7 of these recommendations indicates the proposed debt service schedule for the Capital Improvement Bonds and also shows the franchise fee revenue needed to offset the tax levy (Column 8). Column 9 indicates the estimated tax levy portion of the issue based on current interest rates. The first levy for this issue was made in 1995, payabfe in 1996, to cover the first interest payment due on September 1, 1996 and the subsequent principal and interest payment due March 1, 1�97. Th'ss payment cycle will continue for the 4ife of the bonds. Street Improvement Special Assessment Bonds, Series 1996B The Street Improvement Bonds are being issued in the total principal amount of $2,220,000 to finance street construction projects for Cretin/Bayard, ComoNalentine, Fourth/Howard, Hatch/Park and IvylBirmingham. This issue wiil be paid from special assessments against benefited property. Special assessments totaling approximately $2,220,000 are expected to be fiied by November 15, 1996. Assessments that are not prepaid by that date wili be spread in 20 even annual instailments of principai, with interest on the unpaid balance charged at an estimated rate of approximately 6.00%. Historically, the City has been receiving prepayments for approximately 20-30% of the assessments filed each year within 30 days of adoption of the assessme�t roils. tn accordance with Gity policy, i�terest is not charged on prepayments received during the 30-day period. , Page 8 provides an estimated assessment income schedule and assumes approximately 20% of the assessments will be prepaid. City staff has reviewed several financing options in an effort to avoid assessment income shortfalls in the event the prepayments received cannot be invested at a rate at least equal to the bond rate. The debt service schedule for this issue has been structured to provide for a large principal payment of $300,000 in the first year (March 1, 1997), which will be made from the projected prepayments received in the first year of col{ection. Typically, the remaining principal payments would be made over the next 19 years to match the remaining term of the assessments. However, prepayments historically continue to come in each year, so we have shortened up the issue to a 12-year obligation with a balloon payment of $950,000 due on March 1, 2008. This will allow the City the flexibility to pay off all or a portion of that principal amount from additional prepayments which have been accumulating. If a portion of the balloon payment cannot be covered by assessment funds on hand, the City can refinance that balance over the remaining term of the assessments. This refinancing could either take the form of an internal loan or it could be included in the City's annual bond issue for street improvements. The debt service schedule for the Street Improvement Bonds is provided on page 9. The shostening of the issue's term to 12 years from 20 years has the potentia{ to significantly reduce overall interest costs to the City. We have included a call feature in this issue which ailows the City to refinance the issue as early as March 1, 2004 or any date thereafter. Page 2 City of Saint Paul, Minnesota Febn���y 19, 1996 Street Improvement Refunding Bonds, Series 1996C The objective of this refunding is to reduce interest costs on certain outstanding debt. Proceeds of the Street Improvement Refunding Bonds will be used to refund in advance of maturity the following outstanding issues: RPf�nded Street Improvement Bonds General Obliga6on Improvement Bonds, Series 1985A, dated July 1, 1985 General Obligation Street Improvement Special Assessment Bonds, Series 1986, dated June 1, 198& General Obligation Street Improvement Special Assessment Bonds, Series 1987, dated April 1, 1987 General Obligation Street Improvement Specia! Assessment Bonds, Series 1988D, dated March 1, 1988 General Obligation Street Improvement Special Assessment Bonds, Series 19896, dated March 1, 1989 General Obligation Street Improvement Special Assessment Bonds, Series 1990B, dated April 1, 1990 Total Refunded Debt Maturities to be Refunded 1997-2006 1997-2007 1997-2008 1997-2009 1997-2010 1997-2011 Total Amount of Refurtded Princioal $ 690,000 1,320,000 1,400,000 1,710,000 1,350,000 • � ��� $8,440,000 Redemption Da�g 8-1-96 2-1-97 � Eb�L 3-1-99 9-1-96 Based on current market conditions, we anticipate the 1985 through 1990 issues can be refinanced at a net effective rate of approximately 4.54°/a. The remaining debt currently outstanding for the 1985 through 1990 bonds carries net interest rates ranging from 6.02% to 8.20%. The net savings anticipated due to the refundings is approximately $1,623,212 and the present value savings is approximately $915,518. These savings figures are net of ali costs of issuance. A summary of the annual savings is shown in Column E on page '11 of tnese recommendations. Included in the refundings are cash contributions from each oid issue, representing existing funds on hand as a result of assessment prepayments and investment income. The contribution of this cash in the refundings is required by arbitrage regulations, but also allows the City to reduce the amount of new principal issued to replace the old bonds. In addition, the City used existing funds to cover a balloon payment due on February 1, 1996 for its 1993 Temporary Impr�v�ment Bonds, rather than extemally refinancing them. Prior to the refunding, the cash position for the 1985 through 1990 issues tota(ed approximatety $3,555,900; payment of the 1993 Temporary Bonds totaled $1,482,295, leaving a net amount of remaining cash used in the refundings of approximately $2,073,QOQ. The 1985 through 1990 issues of street improvement special assessment bonds will be refunded by means of a"full net advance" refunding. For this method of refunding, proceeds of the new issue will be placed in an escrow account he�d by a bank and invested in govemment securities to pay ail of the debt service requirements of the old bonds through the earliest call date for each issue. Page 3 City of Saint Paul, Minnesota February 19, 1996 �1`- as� The Street Improvement Refunding Bonds wiil be paid from the same assessments originally filed for the 1985 through 1990 bonds. In addition, assessment income originally filed for the 1993 Temporary Bonds wifl also be used to cover debt service requirements. The debt senrice schedule for the Street Improvement Refunding Bonds is provided on page 12. Although the remaining assessment income of the 1985 through '1990 and 1993 bonds is pledged to this issue (Column 8), a net tax Ievy occurs, as shown in Column 9. This levy requirement is due to a situation regarding the 1986 Improvement Bonds. The City staff is reviewing the special assessment coltection history of the 1986 issue. Water Poliution Abatement Refunding Bonds, Series 1996D The objective of this refunding is to reduce interest costs on existing debt. Proceeds of the Water Poilution Abatement (WPA) Refunding Bonds will be used to refund in advance of maturity the following outstanding issues: Refunded WPA Bonds General Obligation Water Pollution Abatement Refunding Bonds, Series 1975, dated March 1, 1975 General Obiigation Water Poilution Abatement Refunding Bonds, Series 1987, daied Aprit 1, 1987 Total Refunded Debt Maturities to be Refunded 1997-2005 1997-2004 Total Amount of Refunded Princioal $1,410,000 • ��� $8,845,000 Redemption � 9-1-96 9-1-96 The refunding of the 1975 and 1987 WPA Bonds will be conducted using the same method as the Stseet Improvement Refunding, a"full net advance" refunding. The t975 WPA Bo�ds are outstanding at a net interest rate of 6.25% and the 1987 WPA Bonds are outstanding at a net interest rate of 5.83%. Based on current market conditions, we anticipate both issues can be refinanced at a net effective rate of approximately 4.16°l0. The net savings anticipated due to the refunding is approximately $500,157, with a present value savings of approximately $427,842. A summary of the an�ual savings is shown in Column E o� page 14. The City's existing WPA debt is currently being paid from net revenues of the City's sewer fund. it is anticipated that the WPA Refunding Bonds wiil continue to be paid from this source as weil. Common to All issues in addition to our recommendations above for each individual issue, we recommend the following items, which are common to all four of the bond issues: Sa/e Date and Time 2. P�epayment Provisions Wednesday, March 13, 1996 at 10:30 A.M. with award by the Council at 3:30 P.M. the same day. For each issue, except the WPA Refunding, bonds ; maturing on March 1, 2005 and thereafter will be callable on March 1, 2004 and any date thereafter at par and accrued interest. Due to their short maturity Page 4 City of Saint Paul, Minnesota Feh!��ry?9, 1996 K� Credit Rating Comments schedule, the WPA Refunding Bonds will not be subject to redemption prior to their maturity. Rating applications wili be made to Moody's Investors Service, Standard & Poors and Fitch Investors Service for these issues. Cify staff is currentiy preparing for rating teleconferences that wiil be held with each of the agencies prior to the sales. � 5. C� E� Bank Qualification These issues exceed $10,000,000 and are fherefore not e(igibfe for bank quatificafion. Non-bank-qualified bonds receive interest rates siighNy higher than bank-qualified bonds. Rebate Requirements The bonds are subject to the federal rebate requirements. However, if the City can meet the 18-month or 2-year spend-down requirements for the Capital Improvement and Street Improvement Bonds, these issues will be exempt from rebate. The City will not owe any rebate from the investment of the bond proceeds for the two refunding issues because the proceeds will be invested in the escrow accounts at a yield less than the yield on each of the refunding bond issues. Bona Fide Debt Service Fund Economic Life Continuing Disclosure The City must maintain a bona fide debt service fund for each issue or be subject to yield restriction. The average maturity of the bonds cannot exceed 120% of the economic life of the projects being financed. 'The economic life for infrastructure improvements is 20 years and for capital facilities it is 40-50 years. These issues are within the economic life requirements. These issues are subject to the SEC's new continuing disclosure rules. A summary of the requirements has been provided to your staff. Springsted provides continuing disclosure services under separate contract, copies of which have also been provided to your staff. Page 5 °� l. • '�- S � City of Saint Paul, Minnesota February 19, 1996 9. Attachmenfs Capital lmprovement Bonds Debt Service Schedule Assessment Income Schedule Street Improvement Bonds Debt Service Schedule Street Improvement Refunding Bonds Savings Scheduie Street improvement Refiunding Bonds Debt Service Schedule WPA Refunding Bonds Savings Schedule Terms of Proposal for each lssue Respectfully submitted, ����t�����c���az�� SPRINGSTED lncorporated mmc Provided to Staff: Summary of Continuing Discfosuse Requirements Page 6 �a I � E lL O. ' Q m U r C � W R y � Z a� a � T m N 9 C � m c m E > 0 m a � m � C �� C �G �U � Q ac7 ��W 'wo� V) p" r- p � N N m .` Uhv� � � � � rn '- � I � � W �� m w � m C « � � � m � D��i � � O O � r $ ,. Z � m W � � � � Q m ¢ mam� ����� tON�a t0.-�tOMO IpNd��00� I�r V NY <pf:fD�ffNA�A �ON cOtnC9 NN eFtD �ff(OM cOOD aD NtOOD m ODCDCD T r r N r r T r T r rlpfOlpN10 W rMfD aoaoon�n rno Q lh O W O 1 O 1 C�D N M 1n10GO1901 �fO�Olh [OfD[OCD tD I�tD cOCth �nin�nm�o�oau��n�a T r T r r r r r T r � O"' �(O O 0D (O f0 f0 � O N 7 Cm ar f�1700 W C7 Na0 ,= C � r07G0 t_CO ��CD�� C �� r�0 rc�iaoc� ai W of m nrn�aocon�om�n LL Q• 3 N N N e- r LO N N r m � m li S °��� mNb���.�-�c�+�o � O"'� 1qN�� W t_r<N7 rF f0 PCOION P�r-ON � C NG�DC T T T N r T r T T T � O� O O b N O O O O y � TOprtpNN00 N � O Q'm rw�cnnc� V O�m00>d�W cOM.-�A ~'� C � f0 Iq r f0 IA I� CO I� d' a nnnrnrnnrr_ � r r r N r r r r r r " O� O O� N O O O O m� rGprfON NOO � � r PTtOP t�C7t7f0� .m.. ,�. c70 �Oi <O C i!j � � �M�NNr r v m ¢ n� 0 C a` � � � � � � � w T .� � v � J > O� O` O� O O O O O O O O O O O O O O O O O a»nrnorwc�a�n viriciriavd�av� 0000000000 0000000000 0000000000 �i �ci o ui �ci �ci o o ui o N h � O 1� N O N N h N N N �D c7 � �q ��O f0 T r T T T T T T T T I�ODQI O.-N W �inf0 01 �� O O O O O O O �� r N N N N N N N tnt01� c0� O.-NC7 � CA� CO m� 00000 0) �01 rn � 00000 r-�-r e-N N NNN N A � � � r � ro N � m N m r � `�T � N � n � � � T b � � � rn n r � � � � C9 0 0 0 0 O �I a T � F- O F- go S O O o � v M T � r � � m � O � a = W � v a m � c U � � m � 3 O �N a m � c w �r. O Om o ° m � U m y O � « �R ZUQ F�- � O O � � T O � ° M O W � � � T M �r(O'� m � m :.� m C � 3 � O r C N m � M ¢ � � C c wrC? c3 ro— QaZZ ���a <cuiorn r N l7 '� a � � m � ¢ ��� � � 3 � � � C � II � ¢ � U C7QQF m � � m L U N N O m c 0 .� � m � C � U � C m � W � N � 7 � U �3 m m E E ffi's � c t � � U � U Y � ip w � m a � d � m ` c m � g m �o 3 d � ��.. L c F Page 7 °1�•as� a � m o� r o� ca ,- s. 0 -a � � 0 �, o L C R t+ 7 L O aw mr LLN C7 a Z � N L� �o a a v� m L T am V C E N N m N a r�/ � Q� 'r'� i-' U O N tl) 6 m � C C ++ � m E � m m .-I > (O 7 O m tQ C, � d fir E ++ `r N C y .�+•� fII m L � m m L f7 'f 1-� O (q + >+ • U ++ O C +�1 O U C7 fL W � 0 U 2 Iti F 2 W � y W � N Q 0 1- U W � a f0 � \ N � }+ r U� y r O ^ L a •• m (O Y W O T � C .i .i +� LL a OC9 �O�t70tf70�f101n O�O�O�O �AOtq �� O MO �NOI �rNC70�f �N W OOf N W b� �-+ O {q�N�DrinOtnOf a W l7 W NhN �Orl[%OLL) F• N.-�N ODPI�fOifl�<�tf9M NN �r OOOf � N T T r r T r�^ T r T T T r' r r r T T t6 I�d° 1 C COIn C�C� C�CIn C1nCU�G�C il7Ctn W O (Orl7�f0 f��0 Nf7b(00007 �Naf ln1�00 L O ���� r n m O�O N W 7 O<O M W 1n r h(7 m • +'-NfO�-fOOlnO�t �l'1C0(�f�N �Orfp O!n ++(O � NOO70f COCOf� P.iO�� V�e1'MCO NNr � C � �- � H � . r'� � c� � � O � C rl � L � a � F� � U i � m � . � m � .a > � O � U � � +�1 /0 � � t � LL � � 0 � � 0 � � 0 � � Q Q Q � � � � � � 0 � o��in�in�inn�nin�n�nu�in�nin�inu�in o��.r.r�nnnr.n�r.nnni.nr�nnn tnOfOf�OfCfOfOf OfOfOfOfOfO�Cf W 0f Of �O)� NaDCOtO�maD W c0 mcOCO0Da0cOCOCOaDfDCOt9 7 f0 f�,f9"��O rNf7 attA fOPG00f OrN(7 �1n fD �� W A O O O O O O O O O O T T�- .- � T W����O O O O O O O O O O O O O O O O O r r r r N N N N N N N N N N N N N N N N N � fD1� W� OrNP�� H7 f0h mOf OrNC77tq T ���Of OOOOOOOOOOrrr �+- Of O1 � Of � 0 000 000 000 00000 O r r r r r N N N N N N N N N N N N N N N N m n a f0 � co � n � a � r � 0 O O N N N y a F � F�- N 1-� C c � +-1 a 'i �4 +i Q F L e a L � Y- t� i�-� t�i� O�i E m '- �.�i i � 4+ 0i �- N ++ M m + N N r 1� N C m 0 m 'p i+ N .-�j m L U ++ Q. n 'O S �a a Page 8 �� m LL � � m — � � �Z a_ s �i a m � .� � � � �o� �E� c�� ��� a� ,R m ° M v y C � � � � `o� �N CS vi 6 �i S' ' 1 � � � c%� � � :8 � c �Q� O�ti 39� ���N� � � v � N � � W � � � � � Y � N � N � � � 0 � � � R � � � � � N Q � O O O O N � � � � N � N � c '�S. r . d c� oi�r�cvci� a°9ic`�^c�m^`8g'�' �m o0000000000�00000000o n � Z�� m N 3 � � � � o ° ��� � ~ � v N�OI tOmnr�1�� f��MNN� �00 W � O fV � � �`- � � � � .- � � r �.- � ��- � 0 ���� �a �« � � p � C a � O O O O O O O O O O O O O O O O O O O O Q N N v � omu�Q WoNTu�n�n5� � n$"'c m m�� _nm� n N� fD OD Tr� �� Q� W .�-�. N -���� � � N O r� ��CO ����� f�1 r N C`�' O OOOOO OOO � � �'s �N O�mrM1��tO�'� � � O � M O�� � N V�� N� Hf � Y N b� O O O O O O O O O � ��� ������������ � a� � �� �N 7� W N�� iq Q N p� O O O O O O O O O � C aD�fD rr t�O�fD N�CQ � �� ��������������������� : ' � o� r Q� j 8 � 'p_' 1 � r o�amvn�o� �� ��� N(V (V ��N�N�� N NNN( NNN � ��� �$�'����258�2f�25����00000� F N( V N N N N N N N N N N O � C � a � i � LL p � C � �� m � ,O� ��� a�3 y o � a W O � � l N N � O N N �a m `* � C m ^ � m C S tb m Q �o c m.-U 3 m — d`szz g��� ���� T vo m N � -J G C W .. � � C r a��� � �(J �<$� m � W � � O @ m � � � � r N � � � t � � � � � �� � m , Y � � a � � � � � � �€ c Page 9 °I c. - a: s` St. Paul, Minnesota G.O. Refunding Bonds, Series 1996 Full Net Advance Refunding of 6 Various G.O. Street Imp. Bonds Issuer Funds Required: $2,073,220.28 Date of Bonds: 04/01/96 Delivery Date: 04/09/96 Refunded Call Date: Various 1st Callable Date: Various Comparison: Refunded Refunding Principal: 8,440,000 6,750,000 Bond Years: 46,237.50 Avg. Maturity: 6.850 NIC: 4.543% Total �let �avings. t,623,211.82 Present Va[ue Sa�rings; 975,5i8.Q6 /�s °la of P.V. Ref. lnf�_ 27_5(ID As 9�a of P.V. Ref. I31S:. 9.41 �/ Prepared: 02/17/96 By SPRINGSTED incorporated Page 10 St. Paul, Minnesota G.O. Refunding Bonds, Series 1996 Annual Savings Analysis Prepared: 02/17/96 By SPRINGSTED Incorporated Period Refunding Non-Refunded Total New Existing Ending Debt Service Debt Service Debt Service Debt Service (1) (2) (3) (4) (5) 09/O1/96 03/O1/97 631,506.25 631,506.25 1,284,035.00 04/O1/97 03/O1/98 842,825.00 842,825.00 1,213,070.00 09/O1/98 03/O1/99 822,700.00 822,700.00 1,172,830.00 09/O1/99 03/O1/2000 801,425.00 801,425.00 1,131,850.00 09/O1/2000 03/O1/2001 779,000_00 779,000.00 1,079,890.00 09/O1/2001 03/O1/2002 731,000.00 731,000.00 1,�32,955.00 09/O1/2002 03/O1/2003 708,450.00 708,450.00 980,512.50 09/O1/2003 03/O1/2004 685,350.00 685,350.00 908,230.00 09/O1/2004 Savings or (LOSS) (6) 652,528.75 370,245.00 350,130.00 330,425.Q0 300,890.OQ 301,955.�0 272,062.50 222,880_Od 03/O1/2005 661,700.00 661,700.00 SS7,200.40 225,SOO.OQ 09/O1/2005 03/01/2006 612,500.00 612,500.00 809,357.50 , 196,857.50 09/O1/2006 03/O1/2007 538,875.00 538,875.00 717,9�2.50 179,077.5Q 09/O1/2007 03/O1/2008 392,025_00 392,025.00 530,725.00 138,700.OG 09/O1/2008 03/O1/2009 275,575.00 275,575.00 350,375.00 74,800.00 09/O1/2009 03/O1/2010 188,575.00 188,575.00 228,637.50 09/O1/2010 03/O1/2Q11 105,000.00 105,000.00 Z39,100.00 Totals 8,776,506.25 Present Value Rate...: Present VaZue Savings: As > of P.V. Ref. D/S: 40,062.50 34,100.OQ 8,776,506.25 12,466,720.00 3,690,213.75 4.35950o Funds from Issuer....: (2,^73,220 915,518.Q6 Funds to Sinking Fund: 6,218.35 9.410 Total Net Savings....:1,623,211.82 Page 11 � � � « Q IL Q I p m U T (�' L � Q F � m C3 a`Z ¢ a y a m N a c O m W C a C � � � C m � m > � O o Q- m � C m � � � � �(3U C � � ' O y O � o � m � n U � t � � � � � T � � S � T � M H m « :a mc m ' 3" y � t6 � � � � a � � �� N O O O O O O O O O � n n N� � � Q.,�'� 4Y fD f9 !� O 4� �R �A � �!A r� ���NC�Y � � U >>o �00000000000�����n c a% N nMP�GO a C � � �N 1�<Or ID Q N T c7 7 tD O� T ta 9 Z�� O O O n�� N 0^ O� n O O O O O O Q � `� �t07<O rr-C9C0 tD � � �00�f � O.�-010�1� r � •� � r r (O 7 :.� m � 'G" GI G90NCqt`') N N��tA �N�� I� NP� N N «� E� dN000t0 at NOOD ON O � N(O1� tp ��IphO�ON � N m� V f�.tNO� t� N c7 O O�O O aD<O.-�l7 O O y � �a�Dn nn t�OtO �O N tA ��jMN r0f �a0 r� d w m � Q °.�� c6�M 6�it�ff t�l� �� a �O �00 O �N � O O� W�tQ� �N �D h.-a0�OC70 N c0 �r ~ M� M r h I� M T a M N � m a D O N o �oco<oarccv rna�c 000�,- �oc000aomnnn�cm�naa.-r c� rn .�- p ' - ' �O �ff0 b00000 �q N �NO000 _m� ON ONOOtp tq O hNT�T�O O•V � OJ f� a O O V M f� N f9 O N 1n O �NN �rO�N N W NNODlq ~ � C lOSlNOt�OfO N�D�MOf hODO a fD CD W W f� f� 1� t0 t0 (O lp M N r r 4'S ( O N O N O O O O O O N N� I b O O O O y � ONON00�17 u100 f�N I� PO � �{Df��fOOaMt�tAG00 NNO .m.. t0 i+ A f0 d- � W tq r fr � N tn M� C N N N N N �+ � r� �� N � tll O O O O O O Y 0 O o O o y� o a�� o 0 0 0� o 0 0 0 0 oQ o 0 0 � N�nO�fO�NM7�����O��N ¢ riciric�iv.tvavvvavv�ci�ciuiui O N f0 n n m �O O N � N 0 N O O O O O O O O O O O O O O O O O O O p_�, 000000000000000 O V O O O O O O O O O O O O O O O O = N�� ��OOOOtA tnO0u1 O O ��� h b N N N IU N?� N r �r n a` � t� OD � O N cq 7 N f0 t� cD � O.- N l7 � ��� W T� O O O O O O O O O O � r r r �� � Oi � O O O O O O O O O O O O O O O � r r � N N N N N N t V N N N N( V N N N } "- 7. ^ ln tD P OJ m O N M d' ��O i� W� O r N �� . r ,.. 6� W W�� 0000000000 � r � � J W�� m W O O O O O O O O O O O O O � r�-- r r N N N N N N N N N N N N N Q � ~ O F 0 «� N n M N n O � O T � N N � � .. m C m � N O C � m � m (� � 0 C = m �,U c3 m= ¢aZZ � � o 0 I� (O a�0 N N W N � �t d' a .- N � ��>>m m Q � l6 a� c a� c�U o > >= m¢¢F q�-Zs� m 7 V m t U N N � O N C O .� i m r � C R U K C rn� . 4/ > q O � N U � �a � E E N �C �� C C N � L 0 U V N a 'a � N � y N '� m m l6 'a N C y 3 R K � d m � L c F Page 12 St. Paul, Minnesota G.O. Refunding Bonds, Series 1996 Full Net Advance Refunding of G.O. WPA Bonds, Series i975 & 1987 Even Annual Savings Structure Issuer Funds Required: $8,032.54 Date of Bonds: 04/01/96 Delivery Date: 04/10/96 Refunded Call Date: 09/01/96 1 st Cailable Date: 03(01/97 Total'�+(8f Savirigs; 50Q Present Va[ue Savings: 427,8�2.21 As �fa of P.V. �tef: ln�.. 21.33� As �Ic af �.V. Ref: D1S.. 4:49D/ Prepared: 02/17/96 By SPRINGSTED Incorporated Page 13 °��-as� St_ Paul, Minnesota G.O. Refunding Bonds, Series 1996 Annual Savings Analysis Refunding Non-Refunded Total New Existing Date Debt Service Debt Service Debt Service Debt Service (1) (2) (3) (4) (5) 09/O1/96 03/O1f97 1,543,702.08 1,543,702.08 1,621,775.00 09/O1/97 03/O1/98 1,558,475.00 1,558,475.00 1,609,200.00 09/O1/98 03/O1/99 1,539,725.00 1,539,725.00 1,592,325.00 09JO1j99 03/O1/2000 1,567,550.00 1,567,SSQ.00 1,631,000.00 09/�1/2��� 03/O1/2001 1,589,900.00 1,589,900.00 1,652,000.00 09/O1/2001 03/O1/2002 1,082,900.00 1,082,900.00 1,142,000.00 09/O1/2002 03{O1j2003 1,067,925.00 1,067,925.00 1,127,500.00 09/O1/2003 03/O1/2004 SCO,S25.00 5�0,925.0� 535,300.0� 09/O1/2004 03/O1/2005 130,500.00 130,500.00 170,000.00 Prepared: 02/17/96 By SPRINGST&D InCOrporated Savings or (LOSS) (6) 78,072.92 50,725.00 52,600.00 63,450.00 62,100.00 59,100.00 59,575.Od 34,375.�� 39,500.00 Totals 10,581,602.08 10,581,602.08 11,081,100.00 499,497.92 Present Value Rate...: 3.98639e Eunds from Issuer....: (8,032.54) Present Value Savings: 427,842.21 Funds to Sinking Fund: 8,691.88 As o of P,V. Ref. D(S: 4.49°s Total Net Savings....: 500,157.26 Page 14 THE CITI' HAS AIJTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON TTS BEHALF. PROPOSALS WILL BE RECEIVED ON TI� FOLLOWING BASLS: TERMS OF PTLOPOSAL $14,500,000 CITY OF SAINT PAUL, NIINNESOTA GF.NF.RAi. OBLIGATION CAPTTAL Il14PROVEMENT BONDS, SERIES 1996A (BOOK ENTRY ONLI� Proposals for the Bonds will be received on Wednesday, Mazch 13, 1996, untiI 10:30 A.M., Centrai Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they wilI be opened and fabulated. Consideration for awazd of the Bonds will be by rhe City Council at 3:30 P.M., Centrai Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted. Signed ProposaLs, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (612) 223-3000 or fas (612) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reacfi Springsted prior to tfie time of sale specified above. Proposals may also be filed electronically via PARTfY, in accordance with PARITY RuIes of Participation and the Terms of Proposal, within a one-hour period prior to the time oE sale established above, but no Proposals will be received after that time. If provisions in the Terms of Proposat conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For fnrther informadoa about PARITY, potendal bidders may contact PARiTY at 100 116th Avenue SE, Suite 100, Bellewe, Washington 98004, telephone (206) 635-3545. Neither the City nor Spzingsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders aze advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regazdless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated April i, 1996, as the date of original issue, and will bear interest payable on Mazch 1 and September i of each year, commenciag September i, 1996. Interest will be computed oa the basis of a 360-day yeaz of twelve 30�iay months. The Bonds will mature Mazch 1 in the years and amounts as follows: 1997 $1,215,000 1998 $1,225,000 1999 $I 2000 $1,665,000 2001 $1,375,000 2002 $I,425,000 2003 $1,500,000 2004 $1,550,000 2005 $1,625,000 20Q6 $1,b70,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distriburion of Bonds made to the public. The Bonds wIII be issued in fuily registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which witl act Page 15 �'Ic_asc� as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amommt of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participanu. Principal and interest aze payable by the regisuar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of. beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. r�xe►��ir.�� � The Treasurer of the Ciry will serve as registraz. OPTIONAL REDEMPTION The City may elect on March 1, 2004, and on any day thereafter, to prepay Bonds due on or afrer March 1, 2005. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the Ciry shall determine. If less than all Bonds of a maturity are cailed for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturiry to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the Ciry will pledge iYS full faith and credit and power to levy d'uect general ad valorem taxes. The proceeds will be used to finance approved projects from the City's 1996 Capital Improvement Budget and Program. TYPE OF PROPOSALS Proposals shall be for not less than $14,355,000 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surery Bond in the amount of $145,000, payable to the order of the Ciry. If a check is used, it must accompany each proposal. If a Financial Surery Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financiai Surety Bond, then that purchaser is requued to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that tune, the Financial Surery Bond may be drawn by the City to satisfy the Deposit requirement. The Ciry wiil deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals uniess the meeting of the Ciry scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a singie rate from the date of the Bonds to the date of maturiry. No conditional proposals will be accepted. . �I-\.�/�7�7 The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. Page 16 Tfie City w411 reserve the right to: (i} waive non-substancive iniormalicies of any proposai or of marters relating to the receipt of proposats and awazd of the Bonds, (a) reject all proposals without cause, and, (ni) reject any proposal which the City determines to have failed to comply with the terms herein. CUSIP NUMBERS If the Bonds qualify fot assignment of CUSIP numbers such mimbers will be printed on the Bonds, but neiiher the faIlare Yo print such numbers oa any Bond aor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their awazd, the Bonds will be delivered without cost to the pnrchaser at a place mutually satisfactory to the Ciry and the purchaser. Delivery will be subject to receipt by th� purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary ciosing papers, including a no-lidgation certificate, On the date of setflement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, CentraI Time. Except as compliance with the terms of payment for tfie Bonds shalt have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the Ciry by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing DiscIosure Undertaldng wfiereunder the City wili covenant to provide, or cavse to be provided, annual £mancial informarion, including audited financial statements of the City, and notices of certain material events, as specified in and required by SEC Rale 15c2-12(b)(5). OFFICIAL STATEMENT The City has authorized the prepazarion of an Official Statement containing pertinent information refative to the Bonds, and said Official Statement wi11 serve as a nearIy-final Official Statement witi�in the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statemeni or for any additional information priot to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when fiuther supplemented by an addendum ot addenda specifying the maturity dates, principa[ amounts and interest rates of tfie Bonds, Yogettier witfi any otfier information requ'ued by law, shall consritute a"Final Official Statement" of the City with respect to the Bonds, as that tetm is defined in Ruie 15c2-12. By awa:c3ing the Bonds to any underwriter or urdenvriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such awazd, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds aze awazded 500 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds aze awazded as 8s agent for purposes of distributing copies of the Final Officiai Statement to eacfi Participating Undercvriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby thai if its proposai is accep[cd by ihe City (i) it shall accept such designation and (ii) it shaIl enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. BY ORDER OF THE CITY COUNCIL Page 17 9c-�sc at"� i.i'3'Y' HAS AUTHORIZED SPRI�NGSTED �iCORPt�kA�r:D TO NEGOTYATiE 'i`HiS ISSUE ON ITS BEHALF. PROPOSALS WII,L BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $2,220,000 CITY OF SAINT PAUL, MINNESOTA GF.TVFRAi. OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMEIVT BONDS, SERIES 1996B (BOOK ENTRY QNL� Proposals for the Bonds will be received on Wednesday, Mazch 13, 1996 until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for awazd of the Bonds will be by the Ciry Council at 3:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposats may be submitted in a sealed enveloge or by fas (612) 223-3�02 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the fu�al Proposal price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 foi inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. Proposals may also be filed electronically via PARITY, in accordance with PARITY Rules of Pazticipation and the Terms of Pcoposal, within a one-hour period prior to the tune of sale established above, but no Proposals will be received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE, Suite 100, Bellewe, Washington 98004, telephone (206) 635-3545. Neither the City nor Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders aze advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regazdless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated April 1, 1996, as the date of original issue, and will beaz interest payable on Mazch 1 and September 1 of each year, commencing Mazch 1, 1997. Interest will be computed on the basis of a 360-day year of tweive 30-day months. The Bonds will mature Mazch 1 in the years and amounts as follows: 1997 $300,000 1498 $11�,000 1999 $ 95,000 2000 $ 95,000 2001 $ 95,000 2002 $ 95,000 2003 $ 95,000 2004 $ 95,000 2005 $ 95,000 2006 $ 95,000 2007 $ 95,000 2008 $950,000 BOOK ENTRYSYSTEM The Bonds wiil be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each yeaz, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act Page 18 as securities depository of the Bonds. Individual purchases of the Bonds raay be made in tl�e principal aznount of $5,000 or any multiple thereof of a single maturiry through book entries made on the books and records of DTC and its participants. Principal and interest aze payable by the registraz to DTC or iu nominee as registered owner of tfie Bonds. Transfer of principat and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condirion of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The Treasurer of the City will serve as registraz. OPTIONAL REDEMPTION The City may elect on Mazch 1, 2004, and on any day thereafrer, to prepay Bonds due on or after March 1, 2005. Redempcion may be in whole or in part and if in part at the optioa of the City and in such manner as the City shall deternvne. If less than all Bonds of a maturiry aze called for redemption, the Ciry will notify DTC of the particulaz amount of such maturiry to be prepaid. DTC wili determine by lot the amount of eacfi participanYs interest in such maturiry to be redeemed and each participant wIll then select by lot the beneficial ownerslup interesrs in such maturiry to be redeemed. All prepayments shall be at a price of paz plus accrued interest. SECURITY AND PURPOSE The $onds will Sc general obligations of the City for which the City will pledge iu full faith and credit and power to levy direct general ad valorem tases. In addition the City will pledge special assessmenu against benefited property. The proceeds will be vsed to frnance stteet improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $2,197,800 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the fotm of a certified or cashier's check or a Financial Surety Bond in the amount of $22,200, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company Iicensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds aze awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surery Bond may be drawn by the City to satisfy the Deposit requirement. The Ciry will deposit the check of the purc6aser, the amount of which wiIl be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fai:s to comply with the accepted proposal, said amount will be retained by the Ciry. No proposal can be withdrawn or amended after the ticne set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shail be in integral multiples of 5/100 or 1/8 of i%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted, AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, witl be controlling. Page 19 q�.�.s6 The City will reserve the right to: (i) waive non-substantive informalities of any proposai or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) re}ect any progosal which the City detercnines to have failed to comply with the terms herein. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such irumbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their awatd, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opnuon of Briggs and Morgan, Professional Association, of Saint Paui and Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the Ciry for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking whereunder the City wiil covenant to provide, or cause to be provided, annual financial information, including audited financial statements of the City, and notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5). OFFICIAL STATEMENT The Ciry has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a neuly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financiai Advisor to the Ciry, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The O�cial Statement, when further supplemented by an addendutn or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a"Final Official Statement" of the Ciry with respect to the Bonds, as that term is defined in Ru1e 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days afrer the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 90 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the Ciry (i) it shall accept such designarion and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. BY ORDER OF THE CITY COUNCIL Page 20 THE C1TY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTTATE THIS ISSUE ON TTS BEHALF. PROPOSALS WII.L BE RE`CEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $6,750,000' CITY OF SAINT PAUL,I�IINNESOTA GENERAI.OBLIGATION STREET IMPROVEMENT REFUNDING BONDS, SERIES 1996C (BOOK ENTRY ONL� Propasals for the Bonds will be received oa Wednesday, Mazch 13, 1996, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, SS Fast Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they wffi be opened and tabulated. Considerarion for award of the Bonds will be by the City Council at 3:30 P.M., Central Time, of the sazne day. SUBMISSION OF PROPOSALS Proposals may be submitted in a seated envelope or by,fax (612) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for incIusion in the submitted Proposal. Springsted will assume no liability for the inabitity of the bidder to reach Springsted prior to the time of sale specified above. Proposals may also be filed elecuonically via PARITY, in accordance with PARITY Rules of Participarion and the Terms of Proposai, within a one-hour period prior to the time of sale established above, but no Proposals will be received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules of Participation, the Terms of Proposal shall controi. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARITY, potential bidders may contact PARTfY at 100 116tfi Avenue SE, Suite 100, Bellewe, Washington 98004, telephone (206) 635-3545. Neither the City nor Sgringsted Incorporated assumes any liabiliry if there is a malfunction of PARITY. All bidders aze advised that each Proposai shall be deemed to consritute a conuact between the bidder and the Ciry to purchase the Bonds regudless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated April 1, 1996, as the date of origiaal issue, and wilt beaz interest payable on Mazch 1 and September 1 of each yeaz, commencing September i, 1996. Interest will be computed on the basis of a 360-day yeaz of twelve 30-day mornhs. The Bonds will matute Mazch 1 in the years and amounts as follows: 1997 $375,000 1998 $575,000 1999 $575,000 2000 $575,000 2001 $575,000 2002 $550,000 2003 $550,000 2004 $550,000 2A05 $550,000 2006 $525,000 2007 $475,000 2008 $350,000 2009 $250,000 2010 $175,000 2011 $100,000 * The City �eserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds o}jered for sa1e. Any such increase or reduction will be in a totaZ amowu not to ezceed $100,000 and will be made in muliiples of $5.000 in arry of the masuriries. In the eveni the principal amounr of the Bonds is increared or reduced, a�ry premium ojfered os arry discount taken by the successjul bidder wili be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds isincreased or reduced. Page 21 I�_ , BOC�ii EIvTkY SYSTENi The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each yeaz, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securiries depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participanu. Principal and interest are payable by the registrar to DTC or iu nominee as regisiered owner of the Bonds. Transfer of principal and interest paymenu to pazticipants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The Treasurer of the City will serve as registraz. OP'TIONAL REDEMPTION The City may elect on March 1, 2004, and on any day thereafter, to prepay Bonds due on or afrer Mazch 1, 2005. Redemption may be in whole or in part and if in part at the option of the Ciry and in such manner as the City shall determine. If less than all Bonds of a maturity aze called for redemption, the City will notify DTC of the particulaz amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Ali prepayments shall be at a price of par plus accmed interest. SECURITY AND PURPOSE The Bonds wfll be general obligations of the City for which the Ciry will pledge its full faith and credit and power to levy direct general ad valorem taaces. In addition the City will pledge special assessments against benefited property. The proceeds wIll be used to refund in advance of maturiry the following issues: General Obligation Improvement Bonds, Series 1985A, dated July 1, 1985; General Obligation Sueet Improvement Special Assessment Bonds, Series 1986, dated June 1, 1986; General Obligation Street Improvement Special Assessment Bonds, Series 1987, dated April 1, 1987; General Obligation Street Improvement Special Assessment Bonds, Series 1988D, dated March 1, 1988; General Obligation Sueet Improvement Special Assessment Bonds, Series 1989B, dated March 1, 1989; and General Obligation Street Improvement Special Assessment Bonds, Series 1990B, dated April 1, 1990. TYPE OF PROPOSALS Proposais shall be for not less than $6,675,750 and accrued interest on the total principal amount of the Bonds. Proposals shaU be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surery Bond in the amount of $67,500, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the Ciry. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must idendfy each underwriter whose Deposit is guazanteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surery Bond, then that purchaser is required to submit-its:Beposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer asiinstcucted by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the awazd. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The Ciry will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest wiil accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the Ciry. No proposal can be withdrawn or Page 22 amended afrer the time set for receiving proposals unless the meeting of the Ciry scheduled for awazd of the Bonds is adjourned, recessed, or continued to another date without awazd of the Bonds having been made. Rates shall be in integral multiples of 5l100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturiry shalI beaz a single rate from the date of the Bonds to the date of maturiry. No conditional proposals will be accepted. . �� .�. � The Bonds will be awazded on the basis of the lowest interest rate to be determined on a true inteiest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, witl be controlling. The Ciry will reserve the right to: (i) waive non substantive informatities of any proposal or of matters relating to the receipt of proposals and awazd of the Sonds, (ri) reject all proposals without cause, and, (iri) reject any proposal which the City determines to Lave failed to comply with the terms herein. CUSIP NUMBERS If the Bonds qualify for assignment of CUS1P numbers such numbers will be printed on the $onds, but neither the failure to print sach numbers on any Bond nor any error with respect thereto will constitute cause for failure or refi�sal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identifrcation numbers shall be paid by the purchaser. 3ETTI,EMENT Within 40 days following the date of their awazd, the Bonds witl be delivered without cost to the purchaser at a place mutually satisfactory to the Ciry and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legat opinion of Briggs and Morgan, Professional Association, of Sunt Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-litigarion certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds sball have been made impossible by ac6on of the Ciry, or its agenLS, the purchaser shall be liable to the Ciry for any loss suffered by the Ciry by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of the accual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking whereunder the Ciry will covenant to provide, or cause to be provided, annual financial informarion, including audited financiai statements of the City, and notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5). OFFICIAL STATEMENT The City has authorized the prepazation of an Official• Statement containing pertinent informarion relarive to the Bonds, and said Official Statement will serve as a neazly-final Official Statement within the meaning of R�ile 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to saIe, any prospective purchaser is refened to the Financial Advisor ro the Ciry, Springsted Inwrporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other informarion required by law, shall constitute a"Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule i5c2-12. By awazdiag the Bonds to any underwriter or underwriting syndicaze submitting a proposal therefor, the Ciry agtees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which Page 23 �� a5� the Bonds aze awazded 270 copies of the O�cial Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds aze awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationslup with all Participaiing Underwriters of the Bonds for pucposes of assuring the receipt by each such Participating Underwriter of the Final O�cial Statement. BY ORDER OF THE CITY COUNCIL Page 24 1'HE CITY HAS AUTHORIZED SPRIlVGSTED INCORPORATED TO NEGO'I'IATE THIS ISSUE ON TTS BEHAI.F. PROPOSALS WII,L BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $9,100,000'� CITY OF SAINT PAUL, NIINNESOTA GENERAL OBLIGATION WATER POLLUTION ABATEMENT REFUNDING BONDS, SERIES 1996D (BOOK ENTRY ONLI� Proposals for the Bonds will be received on VJednesday, March 13, 1996, until 1030 A.M., Central Time, at the offices of Springsted Incorponted, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for awazd of the Bonds will be by the City Council at 3:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Progosals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. Proposals may also be filed elecuonically via PARITY, in accordance with PARITY Rules of Pamcipation and the Terms of Proposal, within a one-hour period prior to the time of sale established above, but no Proposals will be received afrer that time. If provisions in the Terms of Proposal conflict with the PARIT'Y Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE, Suite 100, Bellevue, Washington 98004, telephone (206) 6353545. Neither the Ciry nor Springsted Incorporated assumes any liability if there is a malfuncrion of PARITY. All bidders aze advised that each Proposal shall be deemed to constitute a conuact between the bidder and the Ciry to putchase the Bonds regazdless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated April 1, 1996, as the date of original issue, and will bear interest payable on March 1 and September 1 of each yeaz, commencing September 1, 1996. Interest will be computed on the basis of a 360-day yeaz of twelve 30-day months. The Bonds will mature March 1 in the yeazs and amounts as follows: 1997 $1,225,000 1998 $1,250,000 1999 $1,275,000 2000 $1,350,000 2001 $1,425,000 2002 $ 975,000 2003 $I,000,000 2004 $ 475,000 2005 $ 125,000 * The Ciry reserves the righ1, after proposals are opened arul prior to award, to increase or reduce the principal amoura of the Bonds offe�ed for sa[e. A�ry such increase or reduction will be in a total amoura not to exceed $100,000 and wi11 be made ia multiples of $5,000 in arry of the maturities. In the event the principa[ amoura of the Bonds is increased or reduced, arry premium offered or arsy discount taken by the successful bidder wi![ be increosed or reduced by a percentage equal to the percentage by which the principal amnunt of the Bonds is increased or reduced. Page 25 q�,'7_JI�J BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principaI amount of $5,000 or any multiple thereof of a single maturiry ttuough book entries made on the books and records of DTC and iu participants. Principal and interest aze payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest paymenu to participanu of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The Treasurer of the Ciry will serve as registrar. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds wili be generai obligations of the City for which the Ciry will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund the 1997 through 2005 maturities of the City's Generat Obligation Water Pol(ution Abatement Refunding Bonds, Series 1975, dated March 1, 1975 and the 1997 through 2004 maturities of the City's General Obligation Water Pollution Abatement Refunding Bonds, Series 1987, dated April 1, 1987. TYPE OF PROPOSALS Proposals shall be for not less than $9,036,300 and accrued interest on the total principal amount of the Bonds. Proposals shail be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surery Bond in the amount of $91,000, payable to the order of the Ciry. If a check is used, it must accompany each proposal. If a Financial Surery Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an undercvriter using a Financial Surery Bond, then that purchaser is required to submit iu Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The Ciry will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the tune set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjoumed, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of i%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. Page 26 . ,!.��!: The Bonds will be awarded on the basis of the lowest interest rate to be deternrined on a true interest cost (T'IC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be conuolling. The Ciry will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and awazd of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. i' ►C�Ii�i�i u1:3�:.` If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for faflure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purck�aser. SETTLEMENT Within 40 days following the date of their awazd, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Associarion, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the temvs of payment for the Bonds shall have been made ;mpossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking whereunder the City will covenant'to provide, or cause to be provided, annual financial information, including audited financial statecnexcfs of, the Ciry, and notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5). OFFICIAL STATEMENT The City has authorized the prepararion of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a neazly-final O�cial Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sate, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The O�cial Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other informauon required by law, shall constitute a"Final Official Statement" of the Ciry with respect to the Bonds, as that term is defined in Rule 15c2-I2. By awarding the Bonds to any- underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days afrer the date of such awazd, it shall provide without cost to the senior znanaging underwriter of the syndicate to which the Bonds are awarded 365 copies of the O�cial Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as iu agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the Ciry (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final O�cial Statement. BY ORDER OF THE CITY COUNCIL Page 27