96-258�{°-r��'ff�`�fl i
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RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Preserrted By
Referred To
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Committee: Date
ACCEPTING PROPOSAL ON SALE OF APPROXIMATELY
$6,750,000 GENERAL OBLIGATION STREET IMPROVEMENT
REFUNDING BONDS, SERIES 1996C,
PROVIDING FOR THEIR ISSUANCE, AND LEVYING A TAX
FOR TfiE PAYMENT THEREOF
WHEREAS, the Director, Department of Einance and
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Management Services, has presented an Official Statement
containing Terms of Proposal for approximately $6,750,000 General
Obligation Street Improvement Refunding Bonds, Series 1996C (the
"BOnds"), of the City of Saint Paul, Minnesota (the "City"), for
which proposals were to be considered at this meeting in
accordance with authorization given by this Council to negotiate
the sale of such bonds and others; and
WHEREAS, the proposals set forth on Exhibit A attached
hereto were received pursuant to the Terms of Proposal at the
offices of Springsted Incorporated at 10:30 A.M., Central Time,
this same day;
18 WHEREAS, the Director, Department of Finance and
19 Management Services, has advised this Council that the proposal
20 of (�Q�q� K2�h `F' C-Q, was found to be the most advantageous
21 and as reco mended that said proposal be accepted; and
22 WHEREAS, it is necessary and expedient to provide
23 moneys for a full advance refunding of outstanding bonds of the
24 City's General Obligation Improvement Bonds, Series 1985A (the
25 "1985 Prior Bonds"), dated July 1, 1985, as the date of original
26 issue; and the 1985 Prior Bonds mature on February 1 of each
27 year, were issued in the aggregate principal amount of $1,375,000
28 and are outstanding in the principal amount of $690,000, of which
29 the full $690,000 (the ��1985 Refunded Bonds") are Callable on
30 August 1, 1996, without a premium; and
31 WHEREAS, it is necessary and expedient to provide
32 moneys for a full advance refunding of outstanding bonds of the
33 City's General Obligation Street Improvement Special Assessment
34 Bonds, Series 1986 (the "1986 Prior Bonds"), dated June 1, 1986,
35 as the date of original issue; and the 1986 Prior Bonds mature on
36 February 1 of each year, were issued in the aggregate principal
37 amount of $2,4�0,��0 and are outstanding in the principal amount
38 of $1,320,000 (the "1986 Refunded Bonds"), of which $1,200,000
39 are callable on February 1, 1997, without a premium; and
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WHEREAS, it is necessary and expedient to provide
moneys for a full advance refunding of outstanding bonds of the
City's General Obligation Street Improvement Special Assessment
Bonds, Series 1987 (the "1987 Prior Bonds"), dated April 1, 1987,
as the date of original issue; and the 1987 Prior Bonds mature on
March 1 of each year, were issued in the aggregate principal
amount of $2,280,000 and are outstanding in the principal amount
of $1,400,000, of which the full $1,400,000 (the "1987 Refunded
Bonds") are callable on September 1, 1996, without a premium; and
10 WHEREAS, it is necessary and expedient to provide
11 moneys for a full advance refunding of outstanding bonds of the
12 City's General Obligation Street Improvement Special Assessment
13 Bonds, Series 1988D (the "1988 Prior Bonds"), dated March 1,
14 1988, as the date of original issue; and the 1988 Prior Bonds
15 mature on March 1 of each year, were issued in the aggregate
16 principal amount of $2,700,000 and are outstanding in the
17 principal amount of $1,710,000, of which the full $1,710,000 (the
18 "1988 Refunded Bonds") are callable on September 1, 1996, without
19 a premium; and
20 WHEREAS, it is necessary and expedient to provide
21 moneys for a full advance refunding of outstanding bonds of the
22 City's General Obligation Street Improvement Special Assessment
23 Bonds, Series 1989B (the "1989 Prior Bonds"), dated March 1,
24 1989, as the date of original issue; and the 1989 Prior Bonds
25 mature on March 1 of each year, were issued in the aggregate
26 principal amount of $2,000,000 and are outstanding in the
27 principal amount of $1,350,000 (the "1989 Refunded Bonds"), of
28 which $1,050,000 are first callable on March l, 1999, without a
29 premium; and
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WHEREAS, it is necessary and expedient to provide
moneys for a current refunding of outstanding bonds of the City's
General Obligation Street Improvement Special Assessment Bonds,
Series 1990B (the "1990 Prior Bonds"), dated April 1, 1990, as
the date of original issue; and the 1990 Prior Bonds mature on
March 1 of each year, were issued in the aggregate principal
amount of $3,150,000 and are outstanding in the principal amount
of $1,970,000, of which the full $1,970,000 (the "1990 Refunded
Bonds") are callable on any day (3une 1, 1996, having been
chosen) without a premium; and
40 WHEREAS, the 1985 Prior Bonds, 1986 Prior Bonds, 1987 Prior
41 Sonds, 1988 Prior Bonds, 1989 Prior Bonds and 1990 Prior Bonds
42 are collectively referred to herein as the "Prior Bonds"; and the
43 1985 Refunded Bonds, 1986 Refunded Bonds, 1987 Refunded Bonds,
44 1988 Refunded Bonds, 1989 Refunded Bonds and 1990 Refunded Bonds
45 are collectively referred to herein as the "Refunded Bonds"; and
46 WHEREAS, refunding the Refunded Bonds with the Bonds in
47 the amount set forth in this resolution is consistent with
48 covenants made with the holders thereof, and is necessary and
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1 desirable pursuant
2 Subdivision 3, for
3 City; and
to Minnesota Statutes, Section 475.67,
the reduction of debt service cost to the
4 WHEREAS, the City has heretofore issued registered
5 obligations in certificated form, and incurs substantial costs
6 associated with their printing and issuance, and substantial
7 continuing transaction costs relating to their payment, transfer
8 and exchange; and
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WHEREAS, the City has determined that significant
savings in transaction costs will result from issuing bonds in
"global book-entry form��, by which bonds are issued in
certificated form in large denominations, registered on the books
of the City in the name of a depository or its nominee, and held
in safekeeping and immobilized by such depository, and such
depository as part of the computerized national securities
clearance and settlement system (the "National System") registers
transfers of ownership interests in the bonds by making
computerized book entries on its own books and distributes
payments on the bonds to its Participants shown on its books as
the owners of such interests; and such Participants and other
banks, brokers and dealers participating in the National System
will do likewise (not as agents of the City) if not the
beneficial owners of the bonds; and
24 WHEREAS, "Participants" means those financial insti-
25 tutions for whom the Depository effects book-entry transfers and
26 pledges of securities deposited and immobilized with the
27 Depository; and
28 WHEREAS, The Depository Trust Company, a limited
29 purpose trust company organized under the laws of the State of
30 New York, or any of its successors or successors to its functions
31 hereunder (the "Depository"), will act as such depository with
32 respect to the Bonds except as set forth below, and there is
33 before this Council a form of letter of repre5entations (the
34 '�Letter of Representations") setting forth various matters
35 relating to the Depository and its role with respect to the
36 Bonds; and
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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
45 WHEREAS, the City will be able to replace the
46 Depository or under certain circumstances to abandon the "global
47 book-entry form" by permitting the Global Certificates to be
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1 exchanged for smaller denominations typical of ordinary bonds
2 registered on the City's bond register; and "Replacement Bonds"
3 means the certificates representing the Bonds so authenticated
4 and delivered by the Bond Registrar pursuant to paragraphs 6 and
5 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
10 WHEREAS, Rule 15c2-12 of the Securities and Exchange
11 Commission prohibits "participating underwriters" from purchasing
12 or selling the Bonds unless the City undertakes to provide
13 certain continuing disclosure with respect to the Bonds; and
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WHEREAS, pursuant to Minnesota Statutes, Section
475.60, Subdivision 2(9), public sale requirements do not apply
to the Honds 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
21 WHEREAS, proposals for the Bonds have been solicited
22 Springsted Incorporated pursuant to an Official Statement and
23 Terms of Proposal therein, and the City has retained the right
24 change the issue size from the $6,750,000 proposed to the
25 $6,710,000 set forth in this resolution:
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NOW, THEREFORE, BE IT RESOLVED by the Council of the
City oP Saint Paul, Minnesota, as follows:
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1. Acceptance of Proposal. The proposal of Morgan
Keegan & Company (the "Purchaser'�) to purchase $6,710,000 General
Obligation Street Improvement Refunding Bonds, Series 1996C, of
the City (the "Bonds", or individually a"BOnd"), all in
accordance with the Terms of Proposal for the bond sale, at the
rates of interest set forth hereinafter, and to pay for the Bonds
the sum of $6,638,154.29 (which represents a pro rata adjustment
to the actual proposal of $6,677,726 for the $6,750,000 proposed
principal amount of the Bonds), 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
forthwith return to the others making proposals their good faith
checks or drafts.
2. Title; Original Issue Date: Denominations;
Maturities. The Bonds shall be titled "General Obligation Street
Improvement Refunding Bonds, Series 1996C", shall be dated April
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1 l, 1996, as the date of original issue and shall be issued
2 forthwith on or after such date as fully registered bonds. The
3 Bonds shall be numbered from R-1 upward. Global Certificates
4 shall each be in the denomination of the entire principal amount
5 maturing on a single date. Replacement Bonds, if issued as
6 provided in paragraph 6, shall be in the denomination of $5,0�0
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each or in any integral multiple thereof of a single maturity.
The Bonds shall mature, without option of prepayment, on March 1
in the years and amounts as follows:
Year
1997
1998
1999
2000
2001
2002
2003
2004
Amount
$365,000
565,000
565,000
565,000
575,000
550,000
550,000
550,000
Year
2005
2006
2007
2008
2009
2010
2011
Amount
$550,000
525,000
475,000
350,000
250,000
175,000
100,000
The 1997, 1998, 1999 and 2000 maturities were each proposed
in a $10,0�0 higher amount.
3. Purpose; Findinas. The Bonds (together with other
available funds in the sinking funds created for the Prior Bonds)
shall provide funds for a full advance refunding of the Refunded
Bonds. The Prior Bonds were issued to finance the costs of
various street improvements in the City (the "Projects" or
"Improvements"). It is hereby found, determined and declared
that: (i) this refunding is pursuant to Minnesota Statutes,
Section 475.67, Subdivision 3, and is necessary or desirable for
the reduction of debt service cost to the City; (2) this
refunding is a full advance refunding under federal law governing
tax-exempt bonds of all the Refunded Bonds other than the 1990
Refunded Bonds (for which it is a current refunding), and is an
advance refunding of the 1986 Refunded Bonds and 1989 Refunded
Bonds pursuant to Minnesota Statutes, Section 475.67, Subdivision
12, but is a current refunding of the 1985 Refunded Bonds, 1987
Refunded Bonds, 1988 Refunded Bonds and 1990 Refunded Bonds
within the meaning of Minnesota Statutes, Section 475.67,
Subdivision 12; and (3) as of April 1, 1996, the present value of
the dollar amount of debt service on the Bonds is lower by at
least three percent (3%) than the present value of the dollar
amount of debt service on the 1986 Refunded Bonds and 1989
Refunded Bonds, and also on the Refunded Bonds in the aggregate,
though current refundings are not required to produce such three
percent (30) savings.
45 4. Interest.
46 semiannually on March 1
47 "Interest Payment Date")
48 calculated on the basis
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The Bonds shall bear interest payable
and September 1 of each year (each, an
, commencing September 1, 1996,
of a 360-day year of twelve 30-day
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months, at the respective rates per annum set forth opposite the
maturity years as follows:
Maturity Year
1997
1998
1999
2000
2001
2002
2003
2004
Interest Rate
3.600
4.10
4.20
4.35
4.50
4.60
4.70
4.80
Maturitv Year Interest Rate
2005
2006
2007
2008
2009
2010
2011
4.80%
4.90
5.00
5.10
5.20
5.25
5.25
5. Description of the Global Certificates and Global
Book-Entry System. 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 tenn of the
Bonds, beneficial ownership (and subsequent transfers of
beneficial ownership) of interests in the Global Certificates
will be reflected by book entries made on the records of the
Depository and its Participants and other banks, brokers, and
dealers participating in the National System. The Depository's
book entries of beneficial ownership interests are authorized to
be in increments of $5,000 of principal of the Bonds, but not
smaller increments, despite the larger authorized denominations
of the Global Certificates. Payment of principal of, premium, if
any, and interest on the Global Certificates will be made to the
Bond Registrar as paying agent, and in turn by the Bond Registrar
to the Depository or its nominee as registered owner of the
Global Certificates, and the Depository according to the laws and
rules 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 Che
Holder of a Global Certificate.
39 6. Immobilization of Global Certificates by the
40 Denository; Successor Depository; Replacement Bonds. Pursuant to
41 the request of the Purchaser to the Depository, which request is
42 required by the Terms of Proposal, immediately upon the original
43 delivery of the Bonds the Purchaser will deposit the Global
44 Certificates representing all of the Bonds with the Depository.
45 The Global Certificates shall be in typewritten form or otherwise
46 as acceptable to the Depository, shall be registered in the name
47 of the Depository or its nominee and shall be held immobilized
48 £rom circulation at the offices of the Depository on behalf of
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1 the Purchaser and subsequent bondowners. T`he Depository or its
2 nominee will be the sole holder of record of the Global
3 Certificates and no investor or other party purchasing, selling
4 or otherwise transferring ownership of interests in any Bond is
5 to receive, hold or deliver any bond certificates so long as the
6 Depository holds the Global Certificates immobilized from
7 circulation, except as provided below in this paragraph and in
8 paragraph 12.
9 Certificates evidencing the Bonds may not after their
10 original delivery be transferred or exchanged except:
li (i) Upon registration of transfer of ownership of a
12 Global Certificate, as provided in paragraph 12,
13 (ii) To any successor of the Depository (or its
14 nominee) or any substitute depository (a "substitute
15 depository") designated pursuant to clause (iii) of this
16 subparagraph, provided that any successor of the Depository
17 or any substitute depository must be both a"clearing
18 corporation" as defined in the Minnesota Uniform Commercial
19 Code at Minnesota Statutes, Section 336.8-102, and a
20 qualified and registered ��clearing agency'� as provided in
21 Section 17A of the Securities Exchange Act of 1934, as
22 amended,
23 (iii) To a substitute depository designated by and
24 acceptable to the City upon (a) the determination by the
25 Depository that the Bonds shall no longer be eligible for
26 its depository services or (b} a determination by the City
27 that the Depository is no longer able to carry out its
28 functions, provided that any substitute depository must be
29 qualified to act as such, as provided in clause (ii) of this
30 subparagraph, or
31 (iv) To those persons to whom transfer is requested
32 in written transfer instructions in the event that:
33 (a) the Depository shall resign or discontinue
34 its services for the Bonds and the City is unable to
35 locate a substitute depository within two (2) months
36 following the resignation or determination of non-
37 eligibility, or
38 (b) upon a determination by the City in its sole
39 discretion that (1) the continuation of the book-entry
40 system described herein, which preCludes the issuance
41 of certificates (other than Global Certificates) to any
42 Holder other than the Depository (or its nominee),
43 might adversely affect the interest of the beneficial
44 owners of the Bonds, or (2) that it is in the best
45 interest of the beneficial owners of the Bonds that
46 they be able to obtain certificated bonds,
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1 in either of which events t
2 its detennination and of th
3 (the "Replacement Bonds") t
4 the registration, transfer
5 be conducted as provided in
6 In the event
7 be authorized by this
8 presentation of Global
9 to the substitute or s
10 successor depository s
11 purposes and functions
12 Representations shall
13 depository unless the
14 depository so agree, a
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he City shall notify Holders of
e availability of certificates
o Iiolders requesting the same and
and exchange of such Bonds will
paragraphs 9B and 12 hereof.
of a succession of the Depository as may
paragraph, the Bond Registrar upon
Certificates shall register their transfer
uccessor depository, and the substitute or
hall be treated as the Depository for all
under this resolution. The Letter of
not apply to a substitute or successor
City and the substitute or successor
nd a similar agreement may be entered into.
7. Rede�tion.
(a) O�tional Redemption: Due Date. All Bonds maturing
after March 1, 2004, shall be subject to redemption and
prepayment at the option of the City on such date and on any day
thereafter at a price of par plus accrued interest. Redemption
may be in whole or in part of the Bonds subject to prepayment.
If redemption is in part, those Bonds remaining unpaid may be
prepaid in such order of maturity and in such amount per maturity
as the City shall determine; and if only part of the Bonds having
a common maturity date are called for prepayment, the Global
Certificates may be prepaid in $5,000 increments of principal
and, if applicable, the specific Replacement Sonds to be prepaid
shall be chosen by lot by the Bond Registrar. Bonds or portions
thereof called for redemption shall be due and payable on the
redemption date, and interest thereon shall cease to accrue from
and after the redemption date.
(b) Notation on Global Certificate. Upon a reduction in
the aggregate principal amount of a Global Certificate, the
Holder may make a notation of such redemption on the panel
provided on the Global Certificate stating the amount so
redeemed, or may return the Global Certificate to the Bond
Registrar in exchange for a new Global Certificate authenticated
by the Bond Registrar, in proper principal amount. Such
notation, if made by the Holder, shall be for reference only, and
may not be relied upon by any other person as being in any way
determinative of the principal amount of such Global Certificate
outstanding, unless the Bond Registrar has signed the appropriate
column of the panel.
(c) Selection of Replacement Bonds. To effect a partial
redemption of Replacement Bonds having a common maturity date,
the Bond Registrar prior to giving notice of redemption 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
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lot, using such method o£ 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,OQ0 shall be
redeemed as shall equal $5,000 for each number assigned to it and
so selected.
(d) Partial Redemption of Replacement Bond. If a
Replacement Bond is to be redeemed only in part, it shall be
surrendered to the Bond Registrar (with, if the City or Bond
Registrar so requires, a written instrument of transfer in form
satisfactory to the City and Bond Registrar duly executed by the
Holder thereof or his, her or its attorney duly authorized in
writing) and the City shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Aolder of such
Replacement Bond, without service charge, a new Replacement Bond
or Bonds of the same series having the same stated maturity and
interest rate and of any authorized denomination or
denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed
portion of the principal of the Bond so surrendered.
(e) RecLuest for Redemption. The Bond Registrar shall call
Bonds for redemption and payment as herein provided upon receipt
by the Bond Registrar at least forty-five (45) days prior to the
redemption date of a request of the City, in written form if the
Bond Registrar is other than a City officer. Such request shall
specify the principal amount of Bonds to be called for redemption
and the redemption date.
(f) Notice. Mailed notice of redemption shall be given
the paying agent (if other than a City officer) and to each
affected Holder. If and when the City shall call any of the
Bonds for redemption and payment prior to the stated maturity
thereof, the Bond Registrar shall give written notice in the
of the City of its intention to redeem and pay such Bonds at
office of the Bond Registrar. Notice of redemption shall be
to
name
the
given by first class mail, postage prepaid, mailed not less than
thirty (30) days prior to the redemption date, to each Holder of
Bonds to be redeemed, at the address appearing in the Bond
Register. All notices of redemption shall state:
(i) The redemption date;
44 (ii) The redemption price;
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(iii) If less than all outstanding Bonds are to be
redeemed, the identification (and, in the case of
partial redemption, the respective principal
amounts) of the Bonds to be redeemed;
(iv) That on the redemption date, the redemption price
will become due and payable upon each such Bond,
and that interest thereon shall cease to accrue
from and after said date; and
(v) The place where such Bonds are to be surrendered
for payment of the redemption price (which shall
be the office of the Bond Registrar).
12 (g) Notice to De�ository. Notices to The Depository Trust
13 Company or its nominee shall contain the CUSIP numbers of the
14 Bonds. If there are any Holders of the Bonds other than the
15 Depository or its nominee, the Bond Registrar shall use its best
16 efforts to deliver any such notice to the Depository on the
17 business day next preceding the date of mailing of such notice to
18 all other Holders.
19 8. Bond Re�strar. The Treasurer of the City is
20 appointed to act as bond registrar and transfer agent with
21 respect to the Bonds (the "BOnd Registrar°}, and shali do so
22 unless and until a successor Bond Registrar is duly appointed. A
23 successor Bond Registrar shall be an officer of the City or a
24 bank or trust company eligible for designation as bond registrar
25 pursuant to Minnesota Statutes, Chapter 475, and may be appointed
26 pursuant to any contract the City and such successor Bond
27 Registrar shall execute which is consistent herewith. The Bond
28 Registrar shall also serve as paying agent unless and until a
29 successor paying agent is duly appointed. Principal and interest
30 on the Bonds shall be paid to the Holders (or record holders) of
31 the Bonds in the manner set forth in the forms of Bond and
32 paragraph 14 of this resolution.
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9. Forms of Bond The Bonds shall be in the form of
Global Certificates unless and until Replacement Bonds are made
available as provided in paragraph 6. Each form of bond may
contain such additional or different terms and provisions as to
the form of payment, record date, notices and other matters as
are consistent with the Letter of Representations and approved by
the City Attorney.
40 A. Global Certificates. The Global Certificates,
41 together with the Certificate of Registration, the Register of
42 Partial Payments, the form of Assignment and the registration
43 information thereon, shall be in substantially the following form
44 and may be typewritten rather than printed:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
RAMSEY COUNTY
CITY OF SAINT PAUL
6 GENERAL OBLIGATION STREET IMPROVEMEN'I' REFUNDING
7 BOND, SERIES 1996C
8 INTEREST MATURITY DATE OF
9 RATE DATE ORIGINAL ISSUE
10 March 1,
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REGISTERED OWNER:
April 1, 1996
CUSIP
PRINCIPAL AMOUNT: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Saint Paul, Ramsey Coun�y, Minnesota (the "ISSUer" or "City"),
certifies that it is indebted and for value received promises to
pay to the registered owner specified above or on the certificate
of registration below, or registered assigns, in the manner
hereinafter set forth, the principal amount specified above, on
the maturity date specified above, unless called for earlier
redemption, and to pay interest thereon semiannually on March 1
and September 1 of each year (each, an "Interest Payment Date��),
commencing September 1, 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 made by the
Holder, shall be for reference only, and may not be relied upon
by any other person as being in any way detenninative of the
principal amount of this Bond outstanding, unless the Bond
Registrar has signed the appropriate column of the panel.
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Interest on this Bond will be paid on each Interest Payment Data
in same-day funds by 2:30 p.m., Eastern time, to the person in
whose name this Bond is registered (the "HOlder" or "Bondholder'�)
on the registration books of the Issuer maintained by the Bond
Registrar and at the address appearing thereon at the close of
business on the fifteenth calendar day preceding such Interest
Payment Date (the "Regular Record Date"). Interest payments
shall be received by the Holder no later than 2:30 p.m., Eastern
time; and principal and premium payments shall be received by the
Holder no later than 2:30 p.m., Eastern time, if the Bond is
surrendered for payment enough in advance to permit payment to be
made by such time. Any interest not so timely paid shall cease
to be payable to the person who is the Holder hereof as of the
Regular Record Date, and shall be payable to the person who is
the Holder hereof at the close of business on a date (the
"Special Record Date") fixed by the Bond Registrar whenever money
becomes available for payment of the defaulted interest. Notice
of the Special Record Date shall be given to Bondholders not less
than ten days prior to the Special Record Date. The principal of
and premium, if any, and interest on this Bond are payable in
lawful money of the United States of America.
22 Date of Payment Not Business Day, If the date for
23 payment of the principal of, premium, if any, or interest on this
24 Bond shall be a Saturday, Sunday, legal holiday or a day on which
25 banking institutions in the City of New York, New York, or the
26 city where the principal office of the Bond Registrar is located
27 are authorized by law or executive order to close, then the date
28 for such payment shall be the next succeeding day which is not a
29 Saturday, Sunday, legal holiday or a day on which such banking
30 institutions are authorized to close, and payment on such date
31 sha21 have the same force and effect as if made on the nominal
32 date of payment.
33 RedemAtion. All Bonds of this issue (the '�Bonds'")
34 maturing after March 1, 2004, are subject to redemption and
35 prepayment at the option of the Issuer on such date and on any
36 day thereafter at a price of par plus accrued interest.
37 Redemption may be in whole or in part of the Bonds subject to
38 prepayment. If redemption is in part, those Bonds remaining
39 unpaid may be prepaid in such order oP maturity and in such
40 amount per maturity as the City shall determine; and if only part
41 of the Bonds having a common maturity date are called for
42 prepayment, this Bond may be prepaid in $5,000 increments of
43 principal. Bonds or portions thereof called for redemption shall
44 be due and payable on the redemption date, and interest thereon
45 shall cease to accrue from and after the redemption date.
46 Notice of Redemption. Mailed notice of redemption
47 shall be given to the paying agent (if other than a City officer)
48 and to each affected Holder of the Bonds. In the event any of
49 the Bonds are called for redemption, written notice thereof will
50 be given by first class mail mailed not less than thirty (30)
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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 Notation 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 sa redeemed. Such notation, if
made by the Holder, shall be £or 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 Obliaation. This.Bond is
one of an issue in the total principal amount of $6,710,000, 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 Minnesota Statutes, Section 475.67, 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 a full advance refunding of various of the
Issuer's general obligation street improvement bonds maturing in
1997 and later. This Bond is payable out of the General
Obligation Special Assessments--Streets Debt Service Fund of the
Issuer. This Bond constitutes a general obligation of the
Issuer, and to provide moneys for the prompt and full payment of
its principal, premium, if any, and interest when the same become
due, the full faith and credit and taxing powers of the Issuer
have been and «re hereby irrevocably pledged.
43 Denominations; Exchange: Resolution. The Bonds are
44 issuable originally only as Global Certificates in the denomina-
45 tion of the entire principal amount of the issue maturing on a
46 single date or, if a portion of said principal amount is prepaid,
47 said principal amount less the prepayment. Global Certificates
48 are not exchangeable for fully registered bonds of smaller
49 denominations except to evidence a partial prepayment or in
50 exchange for Replacement Bonds if then available. Replacement
314236.3 13
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1 Bonds, if made available as provided below, are issuable solely
2 as fully registered bonds in the denominations of $5,000 and
3 integral multiples thereof of a single maturity and are
4 exchangeable for fully registered Bonds of other authorized
5 denominations in equal aggregate principal amounts at the
6 principal office of the Bond Registrar, but only in the manner
7 and subject to the limitations provided in the Resolution.
8 Reference is hereby made to the Resolution for a description of
9 the rights and duties of the Bond Registrar. Copies of the
10 Resolution are on file in the principal office of the Bond
11 Registrar.
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Replacement Bonds. Replacement Bonds may be issued by
the Issuer in the event that:
(a) the Depository shall resign or discontinue its
services for the Bonds, and only if the Issuer is unable to
locate a substitute depository within two (2) months
following the resignation or determination of non-
eligibility, or
(b) upon a determination by the Issuer in its sole
discretion that (1) the continuation of the book-entry
system described in the Resolution, which precludes the
issuance of certificates (other than Global Certificates) to
any Holder other than the Depository (or its nominee), might
adversely affect the interest of the beneficial owners of
the Bonds, or (2) that it is in the best interest of the
beneficial owners of the Bonds that they be able to obtain
certificated bonds.
Transfer. This Bond shall be registered in the name of
the payee on the books of the Issuer by presenting this Bond for
registration to the Bond Registrar, who will endorse his, her or
its name and note the date of registration opposite the name of
the payee in the certificate of registration attached hereto_
Thereafter this Bond may be transferred by delivery with an
assignment duly executed by the Holder or his, her or its legal
representatives, and the Issuer and Bond Registrar may treat the
Holder as the person exclusively entitled to exercise all the
rights and powers of an owner until this Bond is presented with
such assignment for registration of transfer, accompanied by
assurance of the nature provided by law that the assignment is
genuine and 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 expense of the Issuer, be subject to
certain other restrictions if required to qualify this Bond as
being "in registered form" within the meaning of Section 149(a)
of the federal Internal Revenue Code of 1986, as amended.
314236.2
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1 Fees upon Transfer or Loss. The Bond Registrar may
2 require payment of a sum sufficient to cover any ta:c or other
3 governmental charge payable in connection with the transfer or
4 exchange of this Bond and any legal or unusual costs regarding
5 transfers and lost Bonds.
6 Treatment of Reaistered Owner. The Issuer and Bond
7 Registrar may treat the person in whose name this Bond is
8 registered as the owner hereof for the purpose of receiving
9 payment as herein provided (except as otherwise provided with
10 respect to the Record Date) and for all other purposes, whether
11 or not this Bond shall be overdue, and neither the Issuer nor the
12 Bond Registrar shall be affected by notice to the contrary.
13 Authentication This Bond shall not be valid or become
14 obligatory for any purpose or be entitled to any security unless
15 the Certificate of Authentication hereon shall have been executed
16 by the Bond Registrar.
17 Not Oualified Tax-Exempt Obliaations. The Bonds have
18 not been designated by the Issuer as ��qualified tax-exempt
19 obligations" for purposes of Section 265(b)(3) of the federal
20 Internal Revenue Code of 1986, as amended.
21 IT IS HEREBY CERTIFIED AND RECITED that all acts,
22 conditions and things required by the Constitution and laws of
23 the State of Minnesota and the Charter of the Issuer to be done,
24 to happen and to be performed, precedent to and in the issuance
25 of this Bond, have been done, have happened and have been
26 performed, in regular and due form, time and manner as required
27 by law, and that this Bond, together with all other debts of the
28 Issuer outstanding on the date of original issue hereof and on
29 the date of its issuance and delivery to the original purchaser,
30 does not exceed any constitutional or statutory or Charter
31 limitation of indebtedness.
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IN WITNESS WHEREOF, the City of Saint Paul, Ramsey
County, Minnesota, by its City Council has caused this Bond to be
sealed with its official seal and to be executed on its behalf by
the photocopied facsimile signature of its Mayor, attested by the
photocopied facsimile signature of its Clerk, and countersigned
by the photocopied facsimile signature of its Director,
Department of Finance and Management Services.
Date of Registration:
12 BOND REGISTRAR'S
13 CERTIFICATE OF
14 AUTHENTICATION
15 This Bond is one of the
16 Bonds described in the
17 Resolution mentioned
18 within.
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22 Bond Registrar
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By
Authorized Signature
(SEAL)
Registrable by:
e at:
CITY OF SAINT PAUL,
RAMSEY COUNTY, MINNESOTA
Mayor
Attest:
City Clerk
Countersigned:
Director, Department of
Finance and Management Services
General Obligation Street Improvement Refunding Bond, Series
1996C, No. R-
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CERTIFICATE OF REGISTRATION
The transfer of ownership of the principal amount of the attached
Bond may be made only by the registered owner or his, her or its
legal representative last noted below.
DATE OF
REGISTRATION
REGISTERED OWNER
SIGNATUREs' OF
BOND REGISTRAR
314236.2
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REGISTER 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
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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.
314236.2 1 $
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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 TEN ENT - as tenants by the entireties
7 JT TEN - as joint tenants with right of survivorship
8 and not as tenants in common
9 UTMA - as custodian for
10 (Cust) (Minor)
li under the Uniform Transfers to Minors Act
12 (State)
13 Additional abbreviations may also be used
14 though not in the above list.
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ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and trans£ers 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:
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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 firnl 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 The Bond Registrar will not effect transfer of this
23 Bond unless the information concerning the transferee requested
24 below is provided.
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Name and Address:
314236_2
(Include information for all joint
owners if the Bond is held by joint
account.)
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B. Renlacement $onds. 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 the Bond Registrar shall deliver a
certificate in the form of the Replacement Bond rather than the
G1obal 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 foYm. The Replace-
ment Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration
information thereon, shall be in substantially the following
form:
314236.2 2 1
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6 GENERAL OBLIGATION STREET IMPROVEMENT
7 REFUNDING BOND, SERIES 1996C
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8 INTERFs'ST MATURITY DATE OF
9 RATE DATE ORIGINAL ISSUE CUSIP
10 Aprii 1, 1996
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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 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 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 business on a date (the
"Special Record Date") fixed by the Bond Registrar whenever money
UNITED STATES OF AMERICA
STATE OF MINNESOTA
RAMSEY COUNTY
CITY OF SAINT PAUL
314236.2 2 2
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1 becomes available for payment of the defaulted interest. Notice
2 of the Special Record Date shall be given to Bondholders not less
3 than ten days prior to the Special Record Date. The principal of
4 and premium, if any, and interest on this Bond are payable in
5 lawful money of the United States of America.
6 REFERENCE IS AEREBY MADE TO THE FURTHER PROVISIONS OF
7 THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL
8 FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
9 IT IS FIEREBY CERTIFIED AND RECITED that all acts,
10 conditions and things required by the Constitution and laws of
11 the State of Minnesota and the Charter of the Issuer to be done,
12 to happen and to be performed, precedent to and in the issuance
13 of this Bond, have been done, have happened and have been
14 performed, in regular and due form, time and manner as required
15 by law, and that this Bond, together with all other debts of the
16 Issuer outstanding on the date of original issue hereof and on
17 the date of its issuance and delivery to the original purchaser,
18 does not exceed any constitutional or statutory or Charter
19 limitation of indebtedness.
20 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey
21 County, Minnesota, by its City Council has caused this Bond to be
22 sealed with its official seal or a facsimile thereof and to be
23 executed on its behalf by the original or facsimile signature of
24 its Mayor, attested by the original or facsimile signature of its
25 Clerk, and countersigned by the original or facsimile signature
26 of its Director, Department of Finance and Management Services.
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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.
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15 Bond Registrar
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By
Authorized Signature
20 (SEAL)
314236.2
CITY OF SAINT PAUL,
RAMSEY COUNTY, MINNESOTA
Mayor
Attest:
City Clerk
Countersigned:
Director, Department of Finance
and Management Services
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ON REVERSE OF BOND
2 Date of Pavment Not Business Day. If the date for
3 payment of the principal of, premium, if any, or interest on this
4 Bond shall be a Saturday, Sunday, legal holiday or a day on which
5 banking institutions in the City of 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 5ubject to
18 prepayment. Tf 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 clas5 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 Redembtion. To effect a partial
36 redempCion 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
374236,2 2 5
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1 such Bond o£ a denomination of more than $5,00� sha11 be redeemed
2 as shall equal $5,000 for each number assigned to it and so
3 selected. If a Bond is to be redeemed only in part, it shall be
4 surrendered to the Bond Registrar (with, if the Issuer or Bond
5 Registrar so requires, a written instrument of transfer in form
6 satisfactory to the Issuer and Bond Registrar duly executed by
7 the Holder thereof or his, her or its attorney duly authorized in
8 writing) and the Issuer shall execute (if necessary) and the Bond
9 Registrar shall authenticate and deliver to the Holder of such
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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; Purpose: General Obligation. This Bond is
one of an issue in the total principal amount of $6,710,000, 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 Minnesota Statutes, Section 475.67, 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 funds for a full
advance refunding of various of the Issuer's general obligation
street improvement bonds maturing in 1997 and later. This Bond
is payable out of the General Obligation Special Assessments--
5treet5 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.
Re£erence 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.
Transfer. This Bond is transferable by the Holder in
person or by his, her or its attorney duly authorized in writing
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1 at the principal office of the Bond Registrar upon presentation
2 and surrender hereof to the Bond Registrar, all subject to the
3 terms and conditions provided in the Resolution and to reasonable
4 regulations of the Issuer contained in any agreement with, or
5 notice to, the Bond Registrar. Thereupon the Issuer shall
6 exeCUte and the Bond Registrar shall authenticate and deliver, in
7 exchange for this Bond, one or more new fully registered Bonds in
8 the name of the transferee (but not registered in blank or to
9 "bearer" or similar designation), of an authorized denomination
10 or denominations, in aggregate principal amount equal to the
11 principal amount of this Bond, of the same maturity and bearing
12 interest at the same rate.
13 Fees upon Transfer or Loss. The Bond Registrar may
14 require payment of a sum sufficient to cover any tax or other
15 governmental charge payable in connection with the transfer or
16 exchange of this Bond and any legal or unusual costs regarding
17 transfers and lost Bonds.
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Treatment of Registered Owner. The Issuer and Bond
Registrar may treat the person in whose name this Bond is
registered as the owner hereof for the purpose of receiving
payment as herein provided (except as otherwise provided on the
reverse side hereof with respect to the Record Date? and for all
other purposes, whether or not this Bond shall be overdue, and
neither the Issuer nor the Bond Registrar shall be affected by
notice to the contrary.
26 Authentication. This Bond shall not be valid or become
27 obligatory for any purpose or be entitled to any security unless
28 the Certificate of Authentication hereon shall have been executed
29 by the Bond Registrar.
30 Not Oualified Tax-Exem�t Obligations. The Bonds have
31 not been designated by the Issuer as "qualified tax-exempt
32 obligations" for purposes of Section 265(b)(3) of the federal
33 Internal Revenue Code of 1986, as amended.
3M14236.2 2 7
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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 tenant5 in common
10 UTMA - as custodian for
11 (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.
374236.2 2 $
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F�
ASSIGNMENT
2 For value received, the undersigned hereby sells,
3 assigns and transfers unto
4 the within Bond and does
5 hereby irrevocably constitute and appoint
6 attorney to transfer the Bond on the books kept for the
7 registration thereof, with fu11 power of substitution in the
8 premises.
9 Dated:
10 Notice: The assignor's signature to this
11 assignment must correspond with the name
12 as it appears upon the face of the
13 within Bond in every particular, without
14 alteration or any change whatever.
15 Signature Guaranteed:
�
17 Signature(s) must be guaranteed by a national bank or trust
18 company or by a brokerage firm having a membership in one of the
19 major stock exchanges or any other "Eligible Guarantor
20 Institution" as defined in 17 CFR 240.17Ad-15(a)(2).
21 The Bond Registrar will not effect transfer of this
22 Bond unless the information concerning the transferee requested
23 below is provided.
24 Name and Address:
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28
(Include information for all joint owners
if the Bond is held by joint account.)
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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 Seivices, each with the
effect noted on the forms of the Bonds, and be sealed with the
seal of the City; provided, however, that the seal of the City
may be a printed or photocopied facsimile; and provided further
that any of such signatures may be printed or photocopied
facsimiles and the corporate seal may be omitted on the Bonds as
permitted by law. In the event of disability or resignation or
other absence of any such officer, the Bonds may be signed by the
manual or facsimile signature of that officer who may act on
behalf of such absent or disabled officer. In case any such
officer whose signature or facsimile of whose signature shall
appear on the Bonds shall cease to be such officer before the
delivery of the Bonds, such signature or facsimile shall
nevertheless be valid and sufficient for all purposes, the same
as if he or she had remained in office until delivery.
11. Authentication: Date of Registration. No Bond
shall be valid or obligatory for any purpose or be entitled to
any security or benefit under this resolution unless a
Certificate of Authentication on such Bond, substantially in the
form hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of
Authentication on different Bonds need not be signed by the same
person. The Bond Registrar shall authenticate the signatures of
officers of the City on each Bond by execution of the Certificate
of Authentication on the Bond and by inserting as the date of
registration in the space provided the date on which the Bond is
authenticated. For purposes of delivering the original Global
Certificates to the Purchaser, the Bond Registrar sha11 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: Exchanqe. 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 tran5ferred 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 CertifiCate 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
314236.2 3 Q
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1 be transferred by deliveiy 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 G1oba1 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, al1 subject to the terms 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 e�ense of the City, be subject to other restrictions if
15 required to qualify the Global Certificates as being "in
16 registered form" within the meaning of Section 149(a) of the
17 federal Internal Revenue Code of 1986, as amended.
18 If a Global Certificate is to be exchanged for one or
19 more Replacement Bonds, all of the principal amount of the G1oba1
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 sha11
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 transferees, 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 Replacement 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
37 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 cleliver 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 denominations.
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1 All Bonds surrendered upon any exchange or transfer
2 provided for in this resolution sha11 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.
1� 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 oP 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. Rights 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.
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14. Interest Payment; Record Date. Intere5t 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 gayable 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
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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. Ror that purpose, the City may ascertain the
identity o£ 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 of such Bond for
18 the purpose of receiving payment of principal of and premium, if
19 any, and interest (subject 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 shall be affected by notice to the
23 contrary.
24 (C) Any consenC, 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 suEfiCient 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 (1) The fact and date of the execution by any person
36 of any such writing may be proved by the certificate of any
37 officer in any jurisdiction who by law has power to take
38 acknowledgments within such jurisdiction that the person
39 signing such writing acknowledged before him or her the
40 execution thereof, or by an affidavit of any witness to such
41 execution.
42 (2) Subject to the provisions of subparagraph (A)
43 above, the fact of the ownership by any person of Bonds and
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the amounts and numbers of such Bonds, and the date of the
holding of the same, may be proved by reference to the bond
register_
16. Deliver�• Application of Proceeds. The Global
Certificates when so prepared and executed shall be delivered by
the Director, Department of Finance and Management Services, to
the Purchaser upon receipt of the purchase price, and the
Purchaser shall not be obliged to see to the proper application
thereof.
17. Fund and Accounts. There has been heretofore
created and established the "General Obligation Special
Assessments - Streets Debt Service Fund" (numbered 963, herein
the "Debt Service Fund"). There is hereby created in the Debt
Service Fund a special account of the City designated the "1996
Street Improvement Refunding Escrow Account" (the "1996 Street
Improvement Refunding Escrow Account"), to be held and
administered by Che Treasurer or Director, Department of Finance
and Management Services, separate and apart from all other
accounts of the City. The Debt Service Fund and the 1996 Street
Improvement Refunding Escrow Account shall be maintained in the
manner herein specified until all of the Bonds and the interest
thereon have been fully paid.
(i) 1996 Street Improvement Refunding Escrow Account.
The 1996 Street Improvement Refunding Escrow Account shall
be maintained as an escrow account with American Bank
National Association (the "Escrow Agent") in Saint Paul,
Minnesota, which is a suitable financial in5titution within
the State whose deposits are insured by the Federal Deposit
Insurance Corporation and whose combined capital and surplus
is not less than $500,000. All proceeds of the sale of the
Bonds shall be received by the Escrow Agent and applied to
fund the 1996 Street Improvement Re£unding EsCrow Account
and pay the Escrow Agent's fees, and the balance returned to
the City to pay costs of issuing the Bonds and funding the
special sinking fund account in the Debt Service Fund.
Proceeds of the Sonds not used to pay costs of issuance, not
used to fund the sinking fund account in the Debt Service
Fund or not representing an excess are hereby irrevocably
pledged and appropriated to the 1996 Street Improvement
Refunding Escrow Account, together with all investment
earnings thereon.
In addition, there shall be credited to the 1996 Street
Improvement Refunding Escrow Account $2,073,000 from the
special sinking fund accounts in the Debt Service Fund from
which the Prior Bonds are payable, or so much thereof as is
necessary, with the proceeds of the Bonds, to purahase the
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investments for the 1996 Street Improvement Refunding Escrow
Account.
The 1996 Street Improvement Re£unding Escrow Account
shall be invested in securities maturing or callable at the
option of the holder on such dates and bearing interest at
such rates as shall be required to provide sufficient funds
to pay when due all debt service due on the Refunded Bonds
after the date hereof until the principal thereon is paid by
reason of maturity or by reason of early redemption;
principal is due by reason of early redemption on Sune 1,
1996, for the 1990 Refunded Bonds, on August 1, 1996, for
the 1985 Refunded Bonds, on September 1, 1996, for the 1987
Refunded Bonds and 1988 Refunded Bonds, on February 1, 1997,
for the 1986 Refunded Bonds maturing thereafter, and on
March 1, 1999, for the 1989 Refunded Bonds maturing
thereafter. From the 1996 Street Improvement Refunding
Escrow Account there shall be paid all debt service due on
the Refunded Bonds after the date hereof until the grincigal
thereon is paid by reason of maturity or by reason of early
redemption; principal is due by reason of early redemption
on June 1, 1996, for the 1990 Refunded Bonds, on August 1,
1996, for the 1985 Refunded Bonds, on September 1, 1996, for
the 1987 Refunded Bonds and 1988 Refunded Bonds, on February
1, 1997, for the 1986 Refunded Bonds maturing thereafter,
and on March 1, 1999, for the 1989 Refunded Bonds maturing
thereafter. The moneys in the 1996 Street Improvement
Refunding Escrow Account shall be used solely for the
purposes herein set forth and for no other purpose, except
that any surplus in the 1996 Street Improvement Refunding
Escrow Account may be remitted to the City, all in
accordance with an agreement (the "Escrow Agreement") by and
between the City and Escrow Agent, a form of which agreement
is on file in the office of the City Clerk. Any proceeds of
the Bonds in excess of amounts necessary to fund the 1996
Street Improvement Refunding Escrow Account and to pay costs
of issuing the Bonds, and any moneys remitted Co the City
upon termination of the Escrow Agreement, shall be deposited
in the Debt Service Fund.
(ii) Special Sinking Fund Account. There is hereby
pledged and there shall be credited Co the Debt Service
Fund, to a special sinking fund account which is hereby
created and established therein for the payment of the
Bonds: (1) all accrued interest received upon delivery of
the Bonds; (2) all funds paid for the Bonds in excess of
$6,636,190; (3) any moneys remaining in the special sinking
fund accounts for the Prior Bonds after the funding of the
1996 Street Improvement Refunding Escrow Account and all
taxes collected for the Prior Bonds after such funding; (4}
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collections of special assessments which were, prior to the
issuance of the Bonds, pledged to the payment of the Prior
Bonds or which were, prior to their payment on February 1,
1996, pledged to the payment of the City�s $2,500,000
General Obligation Temporary Improvement Special Assessment
Bonds, Series 1993B; (5) any collections of all taxes herein
or herea£ter levied for the payment of the Bonds and
interest thereon; (6) all investment earnings on moneys held
in said special account of the Debt Service Fund; and (7)
any and all other moneys which are properly available and
are appropriated by the governing body of the City to said
special account of the Debt Service Fund. If moneys in the
special account of the Debt Service Fund should ever be
insufficient to pay debt service on the Bonds, the Bonds
shall be paid from the Debt Service Fund or any other
special account therein, and the Bonds are hereby made
payable from the Debt Service Fund and any other special
accounts therein for this purpose. Amounts drawn from the
Debt Service Fund or any special account therein may be
repaid with or without interest when moneys sufficient for
such repayment are deposited in the special account relating
to the Bonds in the Debt Service Fund. The amount of any
surplus remaining in said special account of the Debt
Service Fund when the Bonds and interest thereon are paid
shall be used consistent with Minnesota Statutes, Section
475.61, Subdivision 4.
The moneys in said special account in the Debt Service Fund
shall be used solely to pay the principal and interest and any
premiums for redemption of the Bonds and any other general
obligation bonds of the City hereafter issued by the City and
made payable from said special account in the Debt Service Fund
as grovided by law, or to pay any rebate due to Che 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 or such lesser amount as
represents the "minor portion" of the Bonds for federal arbiCrage
purposes. To this effect, any proceeds of the Bonds and any sums
from time to time held in the 1996 Street Improvement Refunding
Escrow Account or said special account in the Debt Service Fund
(or any other City account which will be used to pay principal or
interest to become due on the Bonds) 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_
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account any applicable "temporary periods" or '�minor portion"
made available under the federal arbitrage regulations. In
addition, the proceeds of the Bonds and moneys in the 1996 Street
Improvement Refunding Escrow Account or the Debt Service Fund
shall not be invested in obligations or deposits issued by,
guaranteed by or insured by the United States or any agency or
instrumentality thereof if and to the extent that such investment
would cause the Bonds to be "federally guaranteed" within the
meaning of Section 149{b) of the federal Internal Revenue Code of
1986, as amended (the "Code").
18. Special Assessments; Tax Levy: Coveraqe Test. The
special assessments heretofore pledged to the payment of the
Prior Bonds and to the City's $2,500,o00 General Obligation
Temporary Improvement Special Assessment Bonds, Series 1493B, are
hereby pledged to the payment of the Bonds. Further to provide
moneys for payment of the princigal and interest on the Sonds,
there is hereby levied upon a11 of Che taxable property in the
City a direct annual ad valorem tax which shall be spread upon
the tax ro11s and collected with and as part of other general
property taxes in the City for the years and in the amounts as
follows:
Year of Tax
Levy
Year of Tax
Collection
Amount
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
-0-
50,553
114,171
130,684
109,084
114,339
119,012
123,112
100,966
101,236
18,100
-0-
-0-
-0-
The tax levies are such that if collected in full they,
together with estimated collections of special assessments
pledged to the payment of the Bonds, investment earnings and
other revenues herein pledged for the payment of the Bonds, will
produce at least five percent (50) in excess of the amount needed
to meet when due the principai and interest payments on the
Bonds. The tax levies shall be irrepealable so long as any of
the Bonds are outstanding and unpaid, provided that the City
reserves the right and power to reduce the levies in the manner
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and to the extent permitted by Minnesota Statutes, Section
475.61, Subdivision 3.
19. General Obligation Pledge. For the prompt and
full payment of the principal and interest on the Bonds, as the
same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged.
If the balance in the Debt Service Fund (as defined in paragraph
17 hereof) is ever insufficient to pay a11 principal and interest
then due on the Bonds payable therefrom, the deficiency shall be
promptly paid out of any other £unds of the City which are
available for such purpose, including the general fund of the
City, and such other funds may be reimbursed with or without
interest from the Debt Service Fund when a sufficient balance is
available therein.
15 20. Appropriation. If an initial appropriation to the
16 1996 Street Improvement Refunding Escrow Account in addition to
17 the $2,073,��0 set forth in paragraph 17 is neCessary to
18 accomplish the full advance refunding of the Refunded Bonds, such
19 appropriation is hereby auChorized ancl made, and payment shall be
20 made from the General Fund of the City.
21 21. Refunded Bonds: Securitv. Until retirement of the
22 Refunded Bonds, all provisions heretofore made for the security
23 thereof shall be observed by the City and all of its officers and
24 agents. However, this City Council hereby finds, determines and
25 certifies to the Director of the Department of Property Records
26 and Revenue of Ramsey County that the proceeds of the sale of the
27 Bonds, together with other funds available and appropriated to
28 'the payment of the Refunded Bonds, will be sufficient to permit
29 the cancellation of taxes levied for the Prior Bonds in full for
30 collection in the years 1997 and later.
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22. Securities; Escrow Agent. Securities purchased
from moneys in the 1996 Street Improvement Refunding Escrow
Account shall be limited to securities set forth in Minnesota
Statutes, Section 475.67, Subdivision 8, and any amendments or
supplements thereto. Securities purchased from the 1946 Street
Improvement Refunding Escrow Account shall be purchased
simultaneously with the delivery of the Bonds. The City Council
has investigated the facts and hereby finds and determines that
the Escrow Agent is a suitable financial institution to act as
escrow agent.
41 23. Redem�tion of Refunded Bonds. The Refunded Bonds
42 shall be redeemed and prepaid as follows: on June 1, 1996, the
43 1990 Refunded Bonds, on August 1, 1996, the 1985 Refunded Bonds,
44 on September 1, 1996, the 1987 Refunded Bonds and 1988 Refunded
45 Bonds, on February 1, 1997, the 1986 Refunded Bonds maturing
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1 thereafter, and on March 1, 1999, the 1989 Refunded Bonds
2 maturing thereafter; all in accordance with the terms and
3 conditions set forth in the 13otices of Call for Redemption
4 attached hereto as Exhibit B, which terms and conditions are
5 hereby approved and incorporated herein by reference. Notices of
6 Ca11 for Redemption in substantially such forms sha11 be given by
7 the Treasurer to the bond registrar for the 1985 Refunded Bonds,
8 who shall mail notice of redemption of such issue. The Treasurer
9 as bond registrar for Refunded Bonds other than the 1985 Refunded
10 Bonds shall mail notice of redemption of each such issue of the
11 Refunded Bonds. Mailed notice shall be given as required in the
12 resolutions relating thereto, in each case not less than thirty
13 (30) days prior to the redemption date. For the 1986 Refunded
14 Bonds and 1989 Refunded Bonds, mailed notice sha11 also be given
15 no later than thirty (30) days after issuance of the Bonds.
16 24. Escrow Agreement. On or prior to the delivery of
17 the Bonds the Mayor and Director, Department of Finance and
18 Management Services, sha11, and are hereby authorized and
19 directed to, execute on behalf af the Citiy an Escrow Agreement.
20 All es5ential terms and conditions of such Escrow Agreement are
21 hereby approved and adopted and made a part of this resolution,
22 and the City covenants that it will promptly enforce all
23 provisions thereof in the event of default thereunder by the
24 Escrow Agent.
25 25. Purchase of Securities. The Treasurer, or anyone
26 designated by the Treasurer to act in her behalf, is hereby
27 authorized and directed to purchase securities for the 1996
28 Street Improvement Refunding Escrow Account, including any
29 appropriate United States Treasury Securities, State and Local
30 Government Series ("SLGS"), from the proceeds of the Bonds in
31 accordance with the provisions of this resolution, and to execute
32 all documents (including the appropriate subscription form) which
33 may be required to effect a purchase of SLGS in accordance with
34 the applicable U.S. Treasury Regulations.
35 26. Certificate of ReQistration. The Director,
36 Department of Finance and Management Services, is hereby directed
37 to file a certified copy of this resolution with the officer of
38 Ramsey County, Minnesota, performing the functions of the county
39 auditor (the "CounCy Auditor"), together with such other
40 information as the County Auditor shall require, and to obCain
41 the County Auditor�s certificate that the Bonds have been entered
42 in the County Auditor's Bond Register, and that the tax levy
43 required by law has been made.
44 27, Records and Certificates. The officers of �he
45 City are hereby authorized and directed to prepare and furnish to
46 the Purchaser, and to the attorneys approving the legality of the
3'1423b.3 3 9
y6 �
1 issuance of the Bonds, certified copies of all proceedings and
2 records of the City relating to the Bonds and to the financial
3 condition and affairs of the City, and such other affidavits,
4 certificates and information as are required to show the facts
5 relating to the legality and marketability o£ the Bonds as the
6 same appear from the books and records under their custody and
7 control or as otherwise known to them, and all such certified
8 copies, certificates and affidavits, including any heretofore
9 furnished, shall be deemed representations of the City as to the
10 facts recited therein.
11 28. Negative Covenants as to Use of Proceeds and
12 Proiects. The City hereby covenants not to use the proceeds of
13 the Bonds or to use the Projects financed with the proceeds of
14 the Prior Bonds, or to cause or permit them or any of them to be
15 used, or to enter into any deferred payment arrangements for the
16 cost of the Projects, in such a manner as to cause the Bonds to
17 be "private activity bonds" within the meaning of Sections 103
18 and 141 through 150 of the Code. The City hereby covenants not
19 to use the proceeds of the Bonds in such a manner as to cause the
20 Bonds to be "hedge bonds" within the meaning of Section 149(g) of
21 the Code.
22 29. Tax-Exempt Status of the Bonds; Rebate; Elections.
23 The City shall comply with requirements necessary under the Code
24 to establish and maintain the exclusion from gross income under
25 Section 103 of the Code of the interest on the Sonds, including
26 without limitation requirements relating to temporary periods for
27 investments, limitations on amounts invested at a yield greater
28 than the yield on the Bonds, and the rebate of excess investment
29 earnings to the United States.
30 If any elections are available now or hereafter with
31 respect to arbitrage or rebate matters relating to the Bonds, the
32 Mayor, Clerk, Treasurer and Director, Department of FinanCe and
33 Management Services, or any of them, are hereby authorized and
34 directed to make such elections as they deem necessary,
35 appropriate or desirable in connection with the Bonds, and all
36 such elections shall be, and shall be deemed and treated as,
37 elections o£ the City.
38 30. No Designation of Oualified Tax-Exempt
39 Obligations. The Bonds, together with other obligations issued
40 by the City in 1996, exceed in amount those which may be
41 qualified as "qualified tax-exempt obligations" within the
42 meaning of Section 2651b)(3) of the Code, and hence are not
43 designated for such purpose.
44 31. Letter of Representations. The Letter of
45 Representations is hereby approved, and shall be executed on
374236.3 4 0
9b —�-�8'
1
2
3
4
5
6
7
8
9
10
il
12
13
behalf of the City by the Mayor and Director, Department of
Finance and Management Services, in substantiall� 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
Representations, as it may be amended or supplemented by the City
from time to time with the agreement or consent of The Depository
Trust Company.
14 32. Negotiated Sale. The City has retained Springsted
15 Incorporated as an independent financial advisor, and the City
16 has heretofore determined, and hereby deternlines, to sell the
17 Bonds b�r private negotiation, all as provided by Minnesota
18 Statutes, Section 475.60, Subdivision 2(9).
19 33. Official Statement. Proposals for the Bonds were
20 solicited by Springsted Incorporated, acting on behalf of the
21 City. The use by Springsted Ineorporated of the Official
22 Statement, and the tesms and conditions of the Bonds and the sale
23 set forth in the Terms of Proposal therein, are hereby approved
24 and ratified.
25
26
27
28
29
30
31
34. 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 SecuriCies 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:
32 A. Provide or cause to be provided to each nationally
33 recognized municipal securities information repository
34 (°NRMSIR") and to the appropriate state information
35 depository ("SID°), if any, for the State of Minnesota, in
36 each case as designated by the Commission in accordance with
37 the Rule, certain annual financial infosmation and operating
38 data in accordance with the Undertaking. The City reserves
39 the right to modify from time to time the terms of the
40 Undertaking as provided therein.
41 B. Provide or cause to be provided, in a timely
42 manner, to (i) each NRMSIR or to the Municipal Securities
43 ltulemaking Board ("MSRB") and (ii) the SID, notice of the
44 occurrence of certain material events with respect to the
45 Bonds in accordance with the Undertaking.
314236.3 4 1
�6 -�-�
1 C. Provide or cause
2 manner, to (i) each NRMSIR
3 notice of a failure by the
4 financial inforniation with
5 the Undertaking.
6
7
8
9
10
il
12
to be provided, in a timely
or to the MSRB and (ii) the SID,
City to provide the annual
respect to the City described in
The City agrees that its covenants pursuant to the Rule
set forth in this paragraph 34 and in the Undertaking are
intended to be for the benefit of the Holders of the Bonds and
shall be enforceable on behalf of such Holders; provided that the
right to enforce the provisions of these covenants shall be
limited to a right to obtain specific enforcement of the City's
obligations under the covenants.
314236.3
42
��-' !�}F'!�� 6
:;
�� ��... :�
q�-as�
1 The Mayor and Director, Department of Finance and
2 Management Services, or any other offiCers of the City authorized
3 to act in their stead (the "Officers"), are hereby authorized and
4 directed to execute on behalf of the City the Undertaking in
5 substantially the form presented to the City County, subject to
6 such modifications thereof or additions thereto as are (i)
7 consistent with the requirements under the Rule, (ii) required by
8 the Purchaser, and (iii) acceptable to the Officers.
9 35. Severabilitv. If any section, paragraph or
10 provision of this resolution shall be held to be invalid or
11 unenforceable for any reason, the invalidity or unenforceability
12 of such section, paragraph or provision shall not affect any of
13 the remaining provisions of this resolution.
14 36. Headinas. Headings in this resolution are
15 included for convenience of reference only and are not a part
16 hereof, and shall not limit or define the meaning of any
17 provision hereof.
Adc
Ada
B
APP
By:
Requested by Department of:
De artment of Finance and Mana ement Servi
Rv� �!/.�'{' y \ �
��
Form A , � pprovetl by City Attomey
By . l//.wu�.. T. �---� -
9c- as� ✓
DEPARTMEif�/OFFCE10pUNCA4 DASE INSTIATED 1 V� 3 2 J� O O
Finance and Mana ement Services 3-28-96 GREEN SHEE _
CONTACTPER NdPHONE INRI ATE INfMVDATE
ODEPAFiTMENTDIflECTOF �CITYCOUNCIL
�H'+N CITYATfORNEY pNCLERK
Martha Rantorowicz 266-8836 �ygEpFpp �
MUST BE ON COUt�lL AGENOA BY (OAT� qp�� � BUDGEi DIAECTOR � FIN. & MGT. SERVICES DIH.
ORDEit � MpYOp (OR ASSISTANT) �
MaYCh 13 1496
70TAL # OP SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATUR�
AGTION REQUE5fEU:
This resolution accepts the winning proposal and awards the bid for the $6,750,000 G.O.
Street Improvement Refunding Bonds Series 1996C. This is a competitive bond sale and the
award is going to the bidder found to be the most advantageous (lowest cost) to the City.
RECOMMEN�A7lONS: App�ova (A) w Reiect (R� pERSONAL SERVICE CONTAACTS MUST ANSWER TNE F04LOWING �UESTIONS:
_ PLANNMG CAMMISSION _ CIVIL SERVICE CAMMISSION �� Has ihis perso�rm ever worked under a contract for Nis tlepartment?
�5_ qeCOMMRTEE _ YES 'NO
� S7AFF _ 2. Has this parsonffirm ever been a city empbyee?
YES NO
_ DISTRIC7 COUHr _ 3. Does this personttirm possess a skill not normally possessetl by any curreM city employee?
SUPPOfiTS WHICH COUNCIL OBJECTIVE? YES NO
Explain all yes answers on Separete Sheet and attech to green sheet
INITIATMG PROBLEM, i55UE, OPPORNNI'fY (Who, VJ�et. When, Wtiere. Why):
These bonds are for the purpose of refunding the following Bonds:
- G:O; Impxovement Bonds, Series 1985A
G.O. Street Improvement Bonds, Series 1986, Series 1987, Series 1988D, Series 1989B,
Series 1990B.
$6,750,000 G.O. Street Improvement Refunding Bonds, Series 1996.
FOR COUNCIL AGENDA OF MARCA 13, 1946
ADVANTAGES IFAPPROVED:
�et savings due to the refundings and is approximately $�':623;�1
DISADYANTAGES IF APPROVED:
ds �b e'
" �g t a+t? g"'�+,����,� �.s�t" 4£`
La�:��°"a �
� r,ta� '°:i�;:]
i � �,.
>
DISADVANTACaES IF NOTAPPROVED:
We will miss this opportunity to acheive savings due to very low rates in todays market.
TOTAL AMOUNT OF TRAPISACTION 5 6 JSO, OOO COSTlREVENUE BUDGETEO (CIRCLE ONE) ' YES NO
FUNDIfdG SOURCE ACTIVI7Y NUMBEH
FINANCIAL INFORMATION: (EXPLAIN)
� �. - as�
EXHIBITS
Exhibit A - Proposals
Exhibit B- Notices of Call for Redemption
°I�- as�
EXHIBIT B
NOTICS OF CALL FOR REDEMPTION
$690,000 GENERAL 0&LIGATION
IMPROVEMENT BONDS,
SERIES 1985A
CITY OF SAINT PAUL
RAMSEY COUNTY
MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City
Council of the City of Saint Paul, Ramsey County, Minnesota,
there have been called for redemption and prepayment on
August 1, 1996,
outstanding bonds of the City designated as General Obligation
Improvement Sonds, Series 1985A, dated Ju1y 1, 1985, as the date
of original issue, having stated maturity dates of February 1 in
the years as set forth below, bearing the CUSIP numbers set forth
below, respectively, for such maturity years, bearing interest at
the rates of interest per annum set forth below, respectively,
for such maturity years, and totaling $690,000 in principal
amount, bearing the numbers and in amounts as follows:
Year CUSIP Number Interest
1997
1998
1999
200�
2001
2002
2003
2004
2005
2006
8.00o
8.10
8.20
8.30
8.20
8.20
8.20
8.20
8.20
8.20
Amount
$70,000
70,000
65,000
70,000
70,000
70,000
65,000
70,000
70,000
70,000
All outstanding bonds of the issue maturing on or after February
1, 1997, are being called for redemption. The bonds are being
called at a price of par plus accrued interest to August 1, 1996,
on which date the redemption price will become due and payable
and all interesC on said bonds will Cease to accrue. Holders of
the bonds hereby called for redemption are requested to present
their bonds for payment at the principal office of the paying
314236.2
9�•�5�
agent for the bonds, First Trust National Association, in Saint
Paul, Minnesota, on or before August 1, 1996.
BY ORDER OF THE CITY
COUNCIL
/S/
City Clerk
Additional information
may be obtained from:
SPRINGSTED INCORPORATED
85 East Seventh Place
Suite 100
Saint Paul, Minnesota 55101-2143
(612) 223-3000
31423b.2
�I f. - a. S 8'
SERIES 1986
CITY OF SAINT PAUL
RAMSEY COUNT`Y
MSNNESOTA
NOTICE IS HEREBY GIVEN that by
Council of the City of Saint Paul, Ramsey
there have been called for redemption and
February 1, 1997,
order of the City
County, Minnesota,
prepayment on
outstanding bonds of the City designated as General Obligation
Street Improvement Special Assessment Bonds, Series 1986, dated
June l, 1986, as the date of original issue, having stated
maturity dates of February 1 in the years as set forth below,
bearing the CUSIP numbers set forth below, respectively, for
maturity years, bearing interest at the rates of interest per
annum set forth below, respectively, for such maturity years,
totaling $1,200,000 in principal amount, bearing the numbers
in amounts as follows:
$1,200,000 GENERAL OBLIGATION
STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS,
NOTICE OF CALL FOR REDEMPTION
Year CUSIP
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
79285�
79288a
792880
792880
792880
792880
7928&0
792880
792880 LX2
792880 LYO
LP9
LQ7
LR5
LS3
LT1
LU8
LV6
LW4
Number
R-11
R-12
R-13
R-14
R-15
R-16
R-17
R-18
R-19
R-20
Interest
7.20a
7.30
7.40
7.40
7.50
7.50
7.50
7.60
7.70
7.70
Amount
$120,000
120,000
126,000
izo,000
120,000
120,000
120,000
120,000
120,000
iao,000
such
and
and
All outstanding bonds of the issue maturing on or after
February 1, 1998, are being called for redemption. The bonds are
being called at a price of par plus accrued interest to
February 1, 1997, on which date the redemption price will become
due and payable and all interest on said bonds will cease to
accrue. Holders of the bonds hereby called for redemption are
requested to present their bonds for payment at the principal
office of the paying agent for the bonds, the Treasurer of the
314236.2
q.` - as�
City of Saint Paul, 25 West Kellogg Boulevard, Room 160, Saint
Paul, Minnesota 55102, on or before February 1, 1997.
BY ORDER OF THE CITY
COUNCIL
/s!
City Clerk
Additional information
may be obtained from:
SPRINGSTED INCORPORATED
85 East Seventh Place
Suite 10�
Saint Paul, Minnesota 55101-2143
(612} 223-3000
stiyz36.z
9. ` - a.sr
NOTICE IS HEREBY GIVEN that by order of the City
Council of the City of Saint Paul, Ramsey County, Minnesota,
there have been called for redemption and prepayment on
September 1, 1996,
outstanding bonds of the City designated as General Obligation
Street Improvement Special Assessment Bonds, Series 1987, dated
April 1, 1987, as the date of original issue, having stated
maturity dates of March 1 in the years as set forth below,
bearing the CUSIP numbers set forth below, respectively, for such
maturity years, bearing interest at the rates of interest per
annum set forth below, respectively, for such maturity years, and
totaling $1,400,000 in principal amount, bearing the numbers and
in amounts as follows:
$1,4�0,000 GENERAL OBLIGATION
STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS,
SERIES 1987
CITY OF SAINT PAUL
RAMSEY COUNPY
MINNEsSOTA
NOTICE OF CAL,I, FOR REDEMPTION
Year CUSIP
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
792880
792880
792880
792880
792880
792880
792880
7928$0
792880
792880
792880
792880
MZ6
NC6
NE2
NG7
NJ1
NL6
NN2
NQ5
NR3
NS1
NT9
NU6
Number
R-9
R-10
R-11
R-12
R-13
R-14
R-15
R-16
R-17
R-18
R-19
R-20
Interest Amount
5.60%
5.75
5.90
6.00
6.10
6.25
6.25
6.25
6.25
6.25
6.25
5.00
$125,000
100,000
125,000
125,000
125,000
125,000
125,000
100,000
125,000
100,000
125,000
100,000
All outstanding bonds of the issue maturing on or after March 1,
1997, are being called for redemption. The bonds are being
called at a price of par plus accrued interest to September 1,
1996, on which date the redemption price will become due and
payable and a11 interest on said bonds wi11 cease to accrue.
Holders of the bonds hereby called for redemption are requested
to present their bonds for payment at the principal office of the
paying agent for the bonds, the Treasurer of the City of Saint
314236.2
°► `- as�-
Paul, 25 West Kellogg Boulevard, Room 160, Saint Paul, Minnesota
55102, on or before September 1, 1996.
BY ORDER OF THE CITY
COUNCIL
Additional infozmation
may be obtained from:
City Clerk
SPRINGSTED INCORPORATED
85 East Seventh Place
Suite 100
Saint Paul, Minnesota 55101-2143
(612) 223-3000
314236.2
a�-as�
NOTICE OF CALL FOR REDEMPTION
$1,710,000 GENERAL OBLIGATION
STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS,
SERIES 1988D
CITY OF SAINT PAUL
RAMSEY COUNTY
MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City
Council of the City of Saint Paul, Ramsey County, Minnesota,
there have been called for redemption and prepayment on
September 1, 1996,
outstanding bonds of the City designated as General Obligation
Street Improvement Special Assessment Bonds, Series 1988D, dated
March 1, 1988, as the date of original issue, having stated
maturity dates of March 1 in the years as set forth below,
bearing the CUSIP numbers set forth below, respectively, £or
maturity years, bearing interest at the rates of interest per
annum set forth below, respectively, for such maturity years,
totaling $1,710,000 in principal amount, bearing the numbers
in amount5 as follows:
Year CUSIP
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
792880 PB6
792880 PC4
792880 PD2
792880 PEO
792880 PF7
792880 PG5
792880 PEi3
792880 PJ9
792880 PK6
79288� PL4
792880 PM2
792880 PNO
792880 PN5
Number
R-8
R-9
R-10
R-11
R-12
R-13
R-14
R-15
R-16
R-17
R-18
R-19
R-20
Interest
6.300
6.40
6.50
6.60
6.70
6.80
6.90
7.00
7.00
7.10
7.10
7.20
7.20
Amount
$145,000
145,000
140,000
140,000
135,000
135,000
135,000
130,000
130,�00
125,000
125,000
125,000
100,000
such
and
and
All outstanding bonds of the issue maturing on or after March 1,
1997, are being called for redemption. The bonds are being
called at a price of par plus accrued interest to September 1,
1996, on which date the redemption price will become due and
payable and all interest on said bonds will cease to accrue.
Holders of the bonds hereby Called for redemption are requested
to present their bonds for payment at the principal office of the
paying agent for the bonds, the Treasurer of the City of Saint
314236.2
9 c�— �S P
Paul, 25 West Kellogg Boulevard, Room 160, Saint Paul, Minnesota
55102, on or before September 1, 1996.
BY ORDER OF TE3E CITY
COUNCIL
/s/
City Clerk
Additional information
may be obtained from:
SPRINGSTED INCORPORATED
85 East Seventh Place
suite l00
Saint Paul, Minnesota 55101-2143
(612) 223-3000
314236.2
� !. - �.5�
NOTICE IS HEREBY GIVEN that by
Council of the City of Saint Paul, Ramsey
there have been called for redemption and
March 1, 1999,
order of the City
County, Minnesota,
prepayment on
outstanding bonds of the City designated as General Obligation
Street Improvement Special A5sessment Bonds, Series 1989B, dated
March 1, 1989, as the date of original issue, having stated
maturity dates of March 1 in the years as set forth below,
bearing the CUSIP numbers set forth below, respectively, for such
maturity years, bearing interest at the rates of interest per
annum set forth below, respectively, for such maturity years, and
totaling $1,050,000 in principal amount, bearing the numbers and
in amounts as follows:
$1,050,000 GENERAL OBLIGATION
STREET IMPROVEMENT SPECIAL ASSESSMEN'T BONDS,
SERIES 1989B
CITY OE SAIN`P PAUL
RAMSEY COUNTY
MINNESOTA
NOTICE OF CALL FOR REDEMPTION
Year CUSIP
2000
2001
20�2
2003
2004
2005
2006
2007
2008
2009
2010
792880
792880
792880
792880
792880
792880
792880
792580 SD9
792880 SE7
792880 SF4
792880 SG2
RW8
RX6
RY4
RZ1
SA5
SB3
SCl
Number
R-10
R-11
R-12
R-13
R-14
R-15
R-16
R-17
R-18
R-19
R-20
Interest
6.95a
7.00
7.00
7.05
7.10
7.10
7.20
7.20
7.25
7.25
7.25
Amount
$100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
75,000
75,000
A11 outstanding bonds of the issue maturing on or after March 1,
2000, are being called for redemption. The bonds are being
called at a price of par plus accrued interest to March 1, 1999,
on which date the redemption price will become due and payable
and all interest on said bonds will cease to accrue. Holders of
the bonds hereby called for redemption are requested to present
their bonds for payment at the principal office of the paying
314236.2
R` - a-S�'
agent for the bonds, the Treasurer of the City of Saint Paul, 25
West Kellogg Boulevard, Room 160, Saint Paul, Minnesota 55102,
on or before March 1, 1999.
BY ORDER OF THE CITY
COUNCIL
/s/
City Clerk
Additional information
may be obtained from:
SPRINGSTED INCORPORATED
85 East Seventh Place
Suite 100
Saint Paul, Minnesota 55101-2143
(612) 223-3000
314236.2
��-�SP'
$1,970,000 GENERAL OBLIGATION
STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS,
NOTICE OF CALL FOR REDEMPTION
SERIES 1990B
CITY OF SAINT PAUL
RAMSEY COUNTY
MINNESOTA
Council of
there hav
NOTICE IS HEREBY GIVEN that by
the City of Saint Paul, Ramse
e been called for redemption an
June 1, 1996,
order of the City
y County, Minnesota,
d prepayment on
outstanding bonds of the City designated as General Obligation
Street Improvement Special Assessment Bonds, Series 1990B, dated
April 1, 1990, as the date of original issue, having stated
maturity dates of March 1 in the years as set forth below,
bearing the CUSIP numbers set forth below, respectively, for
maturity years, bearing interest at the rates of interest per
annum set forth below, respectively, for such maturity years,
totaling $1,970,000 in principal amount, bearing the numbers
in amounts as follows:
Year CUSIP Number
1997
1998
1999
2�Q0
2001
2002
2003
2004
2005
2006
2007
2008
2009
201�
2011
792880
7928$0
792880
792880
792880
792880
792880
792880
792880
792880
792880
792880
792880
792880
792880
SW7
SY3
TA4
TCO
TD8
TE6
TF3
TG1
TH9
TJ5
TK2
TLO
TM8
TN6
TP1
R-7
R-8
R-9
R-10
R-11
R-12
R-13
R-14
R-15
R-16
R-17
R-18
R-19
R-2�
R-21
Interest
6.40°s
6.50
6.55
6.60
6.65
6.70
6.75
6.80
6.90
7.00
7.00
7.00
7.00
7.00
7.00
Amount
$140,000
140,000
130,000
130,000
130,000
130,000
130,OD0
130,000
130,�00
130,000
130,000
130,000
130,000
13�,000
130,000
such
and
and
Al1 outstanding bonds of the issue maturing on or after March 1,
1997, are being called for redemption. The bonds are being
called at a price of par plus accrued interest to September 1,
1996, on which date the redemption price will become due and
payable and all interest on said bonds will cease to accrue.
Holders of the bonds hereby called for redemption are requested
314236.2
�c-as�
to present their bonds for payment at the principal office of the
paying agent for the bonds, the Treasurer of the City of Saint
Paul, 25 West Kellogg Boulevard, Room 160, Saint Paul, Minnesota
55102, on or before June l, 1996.
BY ORDER OF THE CITY
COUNCIL
Additional inforniation
may be obtained from:
City C1erk
SPRINGSTED INCORPORATED
85 East Seventh Place
Suite 100
Saint Paul, Minnesota 55101-2143
(612) 223-3000
314236.2
DEPARTMENT OF FINANCE AND
MANAGEMENT SBRVICES
MmthaLarson,Disector Q`�p�s
CIT Y OF SAINT PAUL zvo cu xou Telephone: 6Z2-2665797
Norm Coio�san, Mayor ZS W. Kellogg Bou7evm�d Facrimile: 6I2-2668919
SaintPau;Minnesota 55102 .
February 20, 1996
Mayor Norm Coleman
Council President Dave Thune '
Members of the City Council
Third Floor 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 Cit}�s 1996
general obligation bond sales. The Department of Finance and Management
Services wili present a report including these recommendations to the fuil Council
on February 28, 1996.
The competitive bid sale is scheduled for Wednesday, March 13, 1496, with the
Council awarding the bids at the 3:30 Council meeting 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,
� V � V�- ��-�—
Martha L.arson, Director
ML:mk
attachment
cc: Tom Cran
Shirley Davis
Terry Garvey
Martha Kantorowicz
Jim Snyder
✓Jerry Strathman
F:��n��o�o����
Schedule far March 1996 Bond Sates
City of Saint Paul, Minnesota
'Treasury Divisian
SS4,500,000 Generat Obtigatian Capital fmpravement Bands, Sertes 1996A
�2,220,OQ0 General Obligation Sfraet �mi996B �nt Special Assessment Bor►ds, Series
56,750,000 6enerat Obligation StreeE Improvement Refunding Sonds, Series 19S6C
S9,�I4D,OOD General Obligation Water P1996Dn Abatement Refunding Bonds, Series
February 5, 19s6 (Monday}
February 92, 1996 (Monday)
February 20, 1s96 (Tuesday)
February 21, 199s (Wednesdayj
February 22, 1996 (7hursday}
First draft ot O�ciaf Statement sent to distribution list
Drafting session to review Officia{ Statement- 9:00 A.M., o�ces
of Springsted
Rating teieconference preparation meeting -10;00 A.M., Treasury
Conference Room
Sond Sale Recammendations sent to Staff for Council and Mayor
Second draft of Offcial Statement sent to designated small group
for final review
Deadline for finai Offlciai Statemenf revisions to 5pringsted (A.M.)
February 23, 1996 (Friday) Final Q�cial Sfafement sent to printer for mailing to undetwriters
Rating packages, inctudirtg O!S's and pre{iminary 9995 financiai
statements, sent to rating agencies {end of day)
Letter from Treasury to Council members reminding them of sale
February 26, 9996 {Monday) Resolution awarding the bonds prepared by Briggs and Margan
antl sent to Treasury for distnbution to Counci[ for agenda
February 27, 1996 (Tuesday) pfQSS �B�F�earsai farrat ng te�lecanfersnca e 90:D0 A� M� o�ces of
Sp�ingsted
March 4, 1996 (Monday) Rating tefeconference with Fitch -1:00 P.M., o�ces of Springsfed
March 5, 1996 (Tuesday) RaGng teleconferences with Moody's (9:0o A.M.) and S& P(11:o6
A.M.}, offices oE Springsted
March �13, 1996 {Wednesday)
Weak of April 8, 199B
Receive and apen bids for 3aonds -10:30 A.M.
City Council awards bids - 3:3Q P.M. (Need five Counci! votes)
Settlement for bonds
2/2o/8E
Q(.-�S�
Recommendations
For �
City of Saint Paut, Minnesota
$14,500,000
General Obligation Capital improvement Bonds, Series 1996A
$2,220,000
General Obfigation Street Improvement
Special Assessment Bonds, Series 1996B
$6,750,000
Generai Obligation Street Improvement
Refunding Bonds, Series 1996C
$9,100,000
General Obligation Water Pollution Abatement
Refunding Bonds, Series 1996D
Study No. S0730L4M4N4
SPRINGSTED Incorporated
February 19, 1996
85 E.SEVENTH PLACE,SUITE100
SAINT PAUL, MN 55101-2143
�� 612-223-3000 FAX:612-2233002
i
SPRINGSTED
Publ"u Finance $dvisars
�
February 19, 1996
Mayor Norm Coleman
Members, City Council
Ms. Martha Larson, Director,
Department of Finance and
Ms. Shirley Davis, Treasurer
City of Saint Paul
Saint Paul City Hall
15 West Kellogg Boulevard
Saint Paul, MN 55102
Managemenf Services
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,
Series9996B
$6,750,000 General Obligation Street Improvement Refunding Bonds, Series 1996C
$9,100,000 General Obligation Water Pollution Abatement Refunding Bonds,
Series 1996D
We respecffully request your consideration of our recommendations for the above-named
issues. A summary ot fhe purpose and primary characteristics of each issue is provided herein.
Capital lmprovement Bonds, Series 1996A
The Capital Improvement Bonds are being issued to finance a portion of the Cify's 1996 Capital
Improvement Program.
The Capitai Improvement Bonds are being issued in the total principal amount of $14,500,000,
with principal repayment due March 1, 1997 through 2006. 7he structure for this issue was
determined after discussions with City staff about fluctuations in the annual tax levies for
SAIVT P.4ll1, MN � 47IA'NEAP016, MN - BROOKFIELD,�✓I � OVERLAi�'D PARK, KS � N'hSHI1�GTON, DC � IOWA CITY, IA
City of Saint Paul, Minnesota
February 19, 1996
a`-as�
existing tax-supported debt. The structure was customized to partiaily smooth out levy
requirements in the next several years. Additionai customizing of the structure for Capital
tmprovement Bonds is expected to be conducted for next years issue as wei{.
The Capital Improvement Bonds will be paid primarily from annual tax levies. However,
approx+mate{y $2 mi{lion ot the issue, representing a portion o4 the Wabasha Street Sridge
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
tmprovement Bonds and also shows the franchise fee revenue needed to ofFset the tax levy
(Column 8). Column 9 indicates the esfimated tax levy portion of the issue based on current
interest rates.
The first levy for this issue was made in 1995, payable in 1996, to cover the first interest
payment due on September 1, 1996 and the subsequent principal and interest payment due
March 1, t�97. This payment cycie will continue for the life of the bonds.
Street Improvement Special Assessment Bonds, Series 1996B
The Street improvement Bonds are being issued in the totai principai amount of $2,220,000 to
finance street construction projects for Cretin/Bayard, ComoNalentine, Fourth/Howard,
Hatch/Park and Ivy/Birmingham. This issue will be paid from special assessments against
benefited property. Speciaf assessments totaling approximatefy $2,220,0�0 are expected to be
filed by November 15, 1996. Assessments that are not prepaid by that date will be spread in 20
even annual installments of principaf, with interest on the unpaid balance charged at an
estimated rate of approximately 6.04%. Historically, the City has been receiving prepayments
for approximately 20-30% of the assessments filed each year within 30 days of adoption of the
assessment roils. In accordance with City policy, interest is not charged on prepayments
received during the 30-day period. ,
Page 8 provides an estimated assessment income schedule and assumes approximateiy 20%
of the assessments will be prepa+d. City staff has reviewed severa{ 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 $300,00� in the first year (March 1,
1997), which wiil be made from the projected prepayments received in the first year of
collection.
Typicaliy, the remaining principal payments wouid 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 shoRened up the issue to a t2-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 principai amount from additionaf prepayments which have been accumufating. lf 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 intemal toan or it could be included in the City's annual bond issue for
street improvements.
The debt service schedule for the Stteet Improvement Sonds is provided on page 9. The
shortening of the issue's term to 12 years from 20 years has the potential 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 eariy as Marcfi 1, 2004 or any date thereafter.
Page 2
City of Saint Paul, Minnesota
F9h���fy 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 mafurity fhe
following outstanding issues:
Refurtded Street lm�trovement Bonds
General Obligation improvement Bonds,
Series 1985A, dated July 1, 1985
General Obiigation SVeet Improvement
Special Assessment Bonds, Series 1986,
dated June 1, 1986
General Obligation Street Improvement
Special Assessment Bonds, Series 1987,
dated April 1, 7987
Generat Obligafion Street Improvement
Special Assessment Bonds, Series 1988D,
dated March 1, 1988
General Obligation Street Improvement
Special Assessment Bonds, Series 19896,
dated March 1, 1989
General Obligation SVeet Improvement
Special Assessment Bonds, Series 1990B,
dated April 1, 1990
Total Refunded Debt
Maturities to
be Refunded
1997-2006
1997-2007
9997-2008
1997-2009
1997-2010
1997-2011
Total Amount of
Refunded Princ�l
��:�:T�x�I�AI
1,320,000
1,400,000
1,710,000
1,350,000
• � ���
$8,440,000
Redemption
Date
8-1-96
2-1-97
�
9-1-96
3-1-99
9-1-96
Based on current maricet conditions, we anticipate the 1985 through 1990 issues can be
refinanced at a net effective rate of approximately 4.54%. 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 aii costs of
issuance. A summary of the annual savings is shown in Column E on page 11 of these
recommendations.
Included in the refundings are cash contributions from each old 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 regulat+ons, 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 bailoon payment due on February 1, 1996 for its 1993
Temporary tmpr�vamenf Bonds, rather than extemally refinancing them. Prior to the refunding,
the cash position for the 1985 through 1990 issues totaled approximately $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 approximafely $2,073,000.
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 held by a bank and invested in govemment
securities to pay all of the debt service requirements of the oid bonds through the earliest call
date for each issue.
Page 3
City of Saint Paul, Minnesota
February 19, 1996
��.-as�
The Street Improvement Refunding Bonds will be paid from the same assessme�ts originally
fiied fior the 1985 through 1990 bonds. in addition, assessment income originally filed for the
1993 Temporary Bonds will also be used to cover debt service requirements. The debt service
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 levy occurs, as shown in Column 9. This levy requirement is due to
a situation regarding the 1986 Improvement Bonds. The City staff is reviewing fhe special
assessment coltection history of the 1986 issue.
Water Pollution Abatement Refunding Bonds, Series 1996D
The objective of this refunding is to reduce interest costs on existing debt. Proceeds of the
Water Pollution Abatement (WPA) Refunding Bonds wiil be used to refund in advance of
maturity the following outstanding issues:
Refunded WPA Bonds
General Obiigation Water Poilution
Abatement Refunding Bonds,
Series 1975, dated March 1, 1975
Generai Obligation Water Poliution
Abatement Refunding Bonds,
Series 1987, daied April 1, 1987
Total Refunded Debt
Maturities to
be Refunded
1997-2005
1997-2004
Total Amount of
Refunded Princi�l
$1,410,000
fA�kX�Z�IU
$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 Street lmprovement Refunding, a"fuil net advance" refundiRg. The 1975 WPA Bonds are
outstanding at a net interest rate of 6.25% and the 1987 WPA Bonds are outstanding at a net
interest rate ofi 5.83°l0. Based on current market conditions, we anticipate both issues can be
refinanced at a net effective rate of approximately 4.16%. 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 annuat savings is shown in Column E on page 14.
The City's existing WPA debt is currently being paid from net revenues of the City's sewer fund.
{t is anticipated that the WPA Refunding Bonds wiN cantinue to be paid from this source as
well.
Common to AI� 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:
Sale Date and Time
�
Prepayment 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 caliable 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
Fshn:ary �o, 9996
3.
4.
5.
�
F�
Credit Rating Comments
Bank Qualificafion
Rebate Requirements
Bona Fide Debt Service Fund
Economic Life
Continuing Disclasure
schedule, the WPA Refunding Bonds wi(f not
be subject to redemption prior to their
maturity.
Rating applications will be made to Moody's
Investors Service, Standard & Poors and
Fitch Invesfors Service for these issues.
City staff is currently preparing for rating
teleconferences that will be heid with each of
the agencies prior to the sa(es.
These issues exceed $10,000,000 and are
tfierefore not eligible for bank qualification.
Non-bank-qualified bonds receive interest
rates slightly higher than bank-qualified
bonds.
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
inves#ed in the escrow accounts at a yield
less than the yield on each of the refunding
bond issues.
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 (ife of the
projects being financed. The economic life
for infrastructure improvements is 20 years
and for capital facilities ft is 40-50 years.
`fhese 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 atso been provided to
your staff.
Page 5
City of Saint Paul, Minnesota
February 19, 1996
9. Atfachments
Respectfuliy submitted,
����z`�����c. �,����
SPRINGSTED lncorporated
� �. -as�r
Capital improvement Bonds Debt
Service Schedule
Assessment Income Schedule
Street Improvement Bonds Debt
Service Schedule
Street Improvement Refunding Bonds
Savings Schedule
Street Improvement Refunding Bonds
Debt
Service Schedule
WPA Refunding Bonds Savings Schedule
Terms of Proposai for each issue
mmc
Provided to Staff: Summary of Continuing Disclosure Requirements
Page 6
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Page 9
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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 Cafl Date: Various
1st Callable Date: Various
Total Net Savings: i,6�3,211.82
Preserrt Va[�te 5avings. 915,51&.06
AsDln nf P.V_ ftef� lnt.: 27.5UD
As �lu of P.V. Ref. DiS.: 9.41 �f
Prepared: 02/�7/96
By SPRINGSTED Incorporated
Page 10
St. Paul, Minnesota
G.O. Refunding Bonds, Series 1996
Annual Savings Analysis
Prepared: 02/17/96
By SPRINGSTfiD 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 63I,506.25 631,SQb.25 1,284,035.00
09/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,SSd_00
Q9/O1/20QQ
03/O1/2001 779,000.00 779,000.00 1,079,890.00
09/01/2001
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
09/01/2003
03/O1/2004 685,350.00 685,350.00 908,230.00
09/O1/2004
Savings
or (Loss)
(6)
652,528.75
370,245.OQ
350,130.00
330,425.�0
300,890.OQ
301,955.00
272,062.5Q
222,880_Od
03/Oi/2005 661,70Q.00 661,700.00 887,200.00 225,500_00
09/Ol/2005
03/O1/2006 612,SOO.dO 612,500.04 809,357.50 , 196,857.50
09/O1/2006
03/O1/2007 538,875.00 538,875.00 717,9�2.50 179,d77.50
09/O1/2007
03/O1/2008 392,025.00 392,025.00 530,725.00 138,700.Q�
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 2Z8,637.50 40,062.50
09/O1/2010
03/O1/2011 105,000.00 105,000.00 139,100.00 34,100.00
Totals 8,776,506.25 8,776,506.25 12,466,720.00 3,690,213.75
Present Value Rate_..: 4.35950o Funds from Issuer....: (2,073,22(3
Present Value Savings: 915,518.06 Funds to Sinking Fund: 6,218.35
As ° s of P.V. Ref. D/S: 9.41% Total. Net Savings....:1,623,211.82
Page 11
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Page 12
St. Paul, Minnesota
G.O. Refunding Bonds, Series f 996
Full Net Advance Refunding of
G.O. WPA Bonds, Series 1975 & 1987
Even Annual Savings Structure
tssuer Funds Required: $8,032.54
Date of Bonds: 04/01/96
Delivery Date: 04/10/96
Refunded Cail Date: 09/01/96
1 st Callable Date: 03/01/97
Total �+tef Savir�gs: 5i6(If1�7.2fs
Present Va[ue Sartings, 427,842.2i.
l�s. �a uf. P.�. Ref. lrrt.: 21 _33�
AS �la tsf �.V. Refi. DlS�: 4.49°Y
Prepared: 02117I96
By SPRINGSTED Incorporated
Page 13
�L- as8'
St. Paul, Minnesota
G.0_ Refunding Bonds, Series 1996
Annual Savings Analysis
Prepared: 02/17/96
By SPRINGSTED Incorporated
Refunding I3on-Refunded Total New E�isting
Date Debt Service Debt Service Debt Service Debt Service
(1) (2) (3) (4) (5)
09/O1/96
03f01/97 1,543,702.�8 1,543,7�2.�8 1,621,775.0�
09/O1/97
03/O1/98 1,558,475.00 1,558,475.00 1,609,200.00
09/O1/98
03J01/99 1,539,725.00 1,539,725.00 1,592,325.00
09/O1/99
03/O1/2000 1,567,550.00 1,567,550.00 1,631,000.00
04/al/2Q��
03/O1/2001 1,589,900.00 1,589,900.00 1,652,000.00
o9/oil2ooi
03/O1/2002 1,082,900.00 1,082,900.00 1,142,000.00
o9/oi/zooa
03/O1/2003 1,067,925.00 1,067,925.00 1,127,500.00
09/O1/2003
03/01f2004 5CO,S25.00 500,925.00 535,300.00
09/O1/2004
03/O1i2005 130,500.00 130,500.00 170,000.00
fiotals 10,581,602.08
Present Value Rate...:
Present Value Savings:
As % of P.V. Ref. D/S:
Savings
or (LOSS)
(6)
78,072.92
50,725.00
52,600.00
63,450.00
62,100.00
59,100.00
59,575.00
34,375.00
39,500.00
10,581,602_OS 11,081,100.00 499,497.92
3.98639°s Funds from Issuer....: (8,032.54)
427,842.21 Funds to Sinking Fund: 8,691.88
4.49°s Total Net Savings....: 500,157_26
Page 14
THE CITI' HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTTATE THIS
ISSUE ON TTS BE$AI.F. PROPOSALS WII,L BE RECEIVED ON THE FOLLOWING BASLS:
TERMS OF PROPOSAL
$14,500,000
CITY OF SAINT PAUL, MINNE30TA
GF.NF.RAi. OBLIGATION CAPTTAL IMPROVEMENT BONDS, SERIES 1996A
(BOOK ENTRY ONLI�
Proposals for the Bonds will be received on Wednesday, March 13, 1996, until 10:30 A.M., Central
Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, afrer 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
Proposals may be submitted in a sealed envelope or by fas (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
wffi assume no liabitity for the inabIlity of the bidder to reacfi Springsied prior to the time of sale
specified above. Proposals may also be filed electronically via PARITY, in accordance with PARITY
Rules of Participation and the Ternis of Proposal, 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
Proposai conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. The
normat fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibiliry
of the bidder. For further information about PARITY, potential bidders may contact PARITY at 100
116th Avenue SE, Suite 100, Believue, Washington 98004, telephone (206) 635-3545. Neither the
City nor Springsted Incorporated assuwes any liability if there is a malfunction of PARIT'Y. A]1
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 tfie Proposal submitted.
DETAII,S OF THE BONDS
The Bonds will be dated April 1, 1996, as the date of original issue, and will beaz interest payable on
March 1 and September i of each year, commencing September 1, 1996. Interest will be computed on
the basis of a 360-day year of twelve 30-day months.
The Bonds will mature Mazch 1 in the years and aznounts as follows:
1997 $1,215,000
1998 $1,225,000
1999 $1,250,000
2000 $1,665,000
Z001 $1,375,000
2002 $1,425,000
2003 $1,500,000
2004 $1,550,000
2005 $1,625,000
2006 $1,670,000
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 ,fotm and one Bond, representing the
aggregate principal aznount of the Bonds maturing in each yeaz, will be registered in the name of Cede
8c Co. as nominee of The Depositoty Ttvst Company ("DTC"), New York, New York, which will act
Page 15
q�-zs�
as securities 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 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
beneficia] 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 wiil serve as registrar.
OPTIONAL REDEMPTION
The City may elect on March l, 2004, and on any day thereafrer, 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 City shall determine. If less than all Bonds of a maturity are called for redemption,
the City will notify DTC of the particular amount of such maturiry to be prepaid. DTC will deternvne
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. All
prepaymenu shall be at a price of par plus accmed interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and credit
and power to levy direct general ad valorem taxes. The proceeds will be used to finance approved
projeccs from the Ciry'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 Degosit ("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 ptoposal. 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 suhmitted to Springsted Incorporated prior to the opening
of the proposais. The Financial Surery Bond must identify each underwriter whose Deposit is
guaranteed by such Financial Surety Bond. If the Bonds aze awarded to an undenvriter using a
Financiai 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. Tf such Deposit
is not received by that tune, the Financial Surety Bond may be drawn by the Ciry to satisfy the Deposit
requirement. The City 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 time set for receiving proposals unless the meeting of the Ciry 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 multipies of 5/100 or 1/8 of 1%. 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 proposais will be accepted.
. ��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 Ciry's computation of the interest rate of each groposal, in accordance wich
customary practice, will be controlling.
Page 18
The City wili reserve the right to: (i} waive non-substancive informalicies of any proposal or of mauers
relating to the receipt of proposals and awazd of the Bonds, (n) reject all proposaLs without cause, and,
(iri) reject any proposai wluch the City determines to have failed to comply with the terms herein.
CUSIP NUMBERS
If ihe Bonds qualify for assignmeni of CUSIP numbers such mimbers will be printed on the Boads, but
neither the failure to print such numbers on any Bond nor any enor with respect thereto will consiitute
cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service
Bureau chazge for the assignment of CUSIP identificarion nutnbers shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their awazd, the Bonds wffi be delivered without cosi to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to
receipt by th� 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-litigarion
certificaie. 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 latez than 12:00 Noon,
Central Time. Except as compliance with the terms of payment for the Bonds shall have been made
impossible by acdon of the Ciry, 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�ompliance 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 infozmarion, including audited financial statements of the City, and notices
of certain material evenu, as specified in and required by SEC Rule i5c2-12@)(5).
OFFICIAI. STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within
the meaning of Ryle 15c2-12 of the Securides and Exchange Comm;�cion. For copies of the Official
Statement or for any addirional informarion prior to sale, any prospective purchaser is referred to the
Financial Advisor to the Ciry, Springsted Incorporated, 85 East Seventh Place, Suite I00, Saint Paui,
Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the maturity
dates, principal aznounts and interest rates of the Bonds, iogether with any other information required
by law, shall constiNte a"Final Official Statemeat" of the City with respect to the Bonds, as that term
is defined in Rule 15c2-12. By awazding the Bonds to any undenvriter or undera+riting syndicate
submitting a proposai therefor, the City agrees that, no tnore than seven bvsiness days after the date of
such awazd, it shall provide without cost to the senior managing underwriter of the syndicate to which
tfie 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 its agent for purposes of distributing copies of the Final Official Statement to each
Participating Underwriter. Any undeiwriter 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 contracival 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
GIL-aS�
iH�: i;FIY" HAS AUTIiORIZED SPRINGSTED �TCORI't7ItA3� TO Iv'EGOT3f�T'E TI31.S
ISSUE ON TTS BEHALF. PROPOSALS WILL BE RECEIVID ON THE FOLLOWING BASIS:
I!� : � � ' � ��
$2,220,000
CITY OF SAIIVT PAUL, MINNFSOTA
GIIVERAL OBLIGATION STREET IlILPROVIIIIENT
SPECIAL ASSFSSMENT BONDS, SERIFS 1996B
(BOOK ENTRY ONLI')
Proposais for the Bonds wili be received on Wednesday, Mazch 13, 1996 until 1030 A.M., Central
Time, at the o�ces of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, after which time they will be opened and tabulated. ConsideratSon 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
Proposals may be submitted in a sealed envelope or by faY (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 reach Springsted prior to the time of sale
specified above. Proposals may also be filed electronically via PARITI', in accordance with PARITY
Rules of Participation and the Terms of Proposal, 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 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 PARITI', potential bidders may contact PARITY aY 100
116th Avenue SE, Suite 100, Bellevue, 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
tfie Ciry to purchase the Bonds regazdless of the manner of ffie 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 360day year of twelve 30-day months.
The Bonds will maiure Mazch 1 in the years and amounts as follows:
1997 $300,000
1998 $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 ENTRY SYSTEM
The Bonds will be issued by means of a book entry system wifh no physical distribution of Bonds
made to the public. T'he Bonds will be issued in fully registered "foiin 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
Page 18
as securities depository of the Bonds. Individual purchases of the Bonds may be made in the pcincipal
amount of $5,000 or any mulriple thereof of a single maturity through book entries made on the books
and records of DTC and its participants. Principal and interest are payable by the registraz to DTC or
iu nominee as registered owner of the Bonds. Transfer of principal and interest payments to
participants of DTC wilZ be the responsibility of DTC; transfer of principal and interest payments to
beneficial owners by pazticipants will be the responsibflity of such participants and other nominees of
benefrcial 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.
OPTIONAL REDEMPTION
The City may elect on March 1, 2004, and on any day thereafter, to prepay Bonds due on or after
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 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 detemune
by lot the amount of each participant's interest in such maturiry to be redeemed and each participant
will then select by lot the beneficial ownership interests in such maturiry to be redeemed. All
prepayments shalt be at a price of par plvs accrued interest.
SECURITY AND PURPOSE
The Bonds will 3c generat obiigations of the City for which the City will pledge its full faith and credit
and power to levy direct general ad valorem taxes. in addition the City will pledge special assessments
against benefited property. The proceeds will be used to finance street improvements witfiin tfie Ciry.
TYPE OF PROPOSALS
Proposais 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 ("DeposiY') in the form of a certified
or cashier's check or a Financial Surery Bond in the amount of $22,200, payable to the order of the
City. If a check is used, it must accompany each proposal. If a Financial Surery Bond is used, it must
be from an insurance company licensed to issue such a bond in the State of Minnesota, and
preapproved by the Ciry. Such bond must be submitted to Springsted Incorporated prior to the opeuing
of the proposals. The Financial Surety Bond must identify each underwziter whose Deposit is
guazanteed by such Financiat Surety Bond. If the Bonds aze awazded to an underwriter using a
Financial Surety Bond, then that purchaser is required to submit its Deposit to 5pringsted Incorporated
in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated
not later than 3:30 P.M., Central Time, on the next business day following the award_ If such Deposit
is not received by that time, the Financial Surery Bond may be drawn by the City to satisfy the Deposit
requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fai:s to comply with
the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or
amended after the time set for receiving proposals unless the meeting of the City scheduled for awazd
of the Bonds is adjoumed, recessed, or continued to another date without award of the Bonds having
been made. Rates shall be in inte$ral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending
order. Bonds of the same maturity shall bear a singfe 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 imerest rate of each proposal, in accordance with
customary practice, will be controlling.
Page 19
��-as �
The Ciry will reserve the right to: (i) waive non-substantive infom�alities of any proposal or of matters
relating to the receipt of proposals and awazd of the Bonds, (ri) re,}ect ail proposats without cause, and,
(iii) reject any proposal which the City determines to have failed to comply with the terms herein.
CUSIP NUMBERS
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 resQect thereto will constitute
cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service
Bureau chazge for the assignment of CUSIP identification numbers shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will 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 legal opinion of Briggs and Morgan, Professional Association,
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 equivale�at,
funds which shall be received at the o�ces of the City or its designee not later than 12:00 Noon,
Central Time. Except as compiiance 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 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 Disclosure L7ndertaking whereunder the City will covenant to provide, or cause to be
provided, annual fmancial 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 City has authorized the preparation of an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a neariy-fmal 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 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 OfFcial Statement, when further supplemented by an addendum or addenda specifying the maturity
dates, pcincipal amounts and interest rates of the Bonds, together with any other information required
by law, shall constitute a"Final O�cial Statement" of the City 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 shali provide without cost to the senior managing underwriter of the syndicate to which
the Bonds aze awarded 90 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
awazded 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 iu proposal is accepted by the Ciry (i) it shal] accept such designation and (ii) it shall
enter into a contracrual relationship with ail 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
'I'HE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHAI.F. PROPOSALS WII.L BE Rk�CEIVED ON THE FOLLOWING BASLS:
TERMS OF PROPOSAL
$6,750,000"
CITY OF SAINT PAUL, NIINNESOTA
GENERAL OBLIGATION STREET IMPROVEMENT
REFUNDING BONDS, SERIES 1996C
(BOOK ENTRY ONL1�
Proposals for the Bonds will be received on Wednesday, Mazch 13, 1996, untii 10:30 A.M., Cenual
Time, at the offices of Springsted Incorporated, 85 East Seventfi Place, Suite 100, Saint Paui,
Minnesota, afrer which time they will be opened and tabulated. Considerarion for awazd of the Bonds
will be by the City Council at 3:30 P.M., Central Time, of the same day.
OF PROPOSALS
Proposals may be submitted in a seated envelope or by, fax (612} 223-3002 to Springsted. Sigaed
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 cnay also be filed electronicatly via PARITY, in accordance with PARITY
Rules of Participation and the Terms of Proposal, within a one-hour period prior to tfie time of saIe
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 conuol. The
normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility
of the bidder. For further informarion about PARITY, potential bidders may contact PARITY at 100
116ih Avenue SE, S�ite 100, Bellewe, Washington 98004, telephone (206) 635-3545. Neither the
Ciry nor Springsted Incorporated assumes any liability ff 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.
DETAII,S OF THE BONDS
The Bonds will be dated April i, 1996, as the date of original issue, and will bear interest payable on
March 1 and September i 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 Mazch 1 in the yeazs and amounu 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
?A05 $550,000
2006 $525,000
2007 $475,000
2008 $350,000
2009 $250,000
2010 $175,000
2011 $100,000
* The City reserves the right, after proposals are opened and prior to award, to increase o� reduce the principal
amount of the Bonds offered for sa1e. A�ry such increase ar �educaon wiU be in a total amount not to rxceed
$100,000 and will be made in mulriples of $5,000 in wry of the maturities. !n the event the principal amount
of the Bonds is increased or reduced, wry premium offered or arsy d"ucount taken by the successful brdder will
be increated or reduced by a percentage equal to the percentage by which the principal amow�t of the Bonds
is increased or reduced.
Page 21
BdCiIk Eh"[TcY SYSTENi q`_ a s�'
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 principai amount of the Bonds maturing in each year, will be registered in the name of Cede
& Co. as nominee of The Depository Ttust Company {"DTC"), New York, New York, which will act
as securides 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 participants. Principal and interest are payable by the regisffaz 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. 'I'he purctiaser, 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 registraz.
OPTIONAL REDEMPTION
The City may elect on Mazch 1, 2004, and on any day thereafrer, to prepay Bonds due on or after
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 shail determine. If less than all Bonds of a maturity aze called 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 maturity to be redeemed. All
prepayments shall be at a price of paz plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the Ciry for which the Ciry will pledge its full faith and credit
and power to levy d'uect general ad valorem taxes. In addition the Ciry will pledge special assessmenu
against benefited property. The proceeds will be used to refund in advance of mamrity the following
issues: General Obligation Improvement Bonds, Series 1985A, dated July 1, 1985; General Obligation
Street 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
Sueet Improvement Special Assessment Bonds, Series 1988D, dated Mazch 1, 1988; General
Obligation Street 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
Proposals shall be for not less than $6,675,750 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 Surety 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 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 awazded to an underwriter using a
Financial Surety Bond, then that purchaser is required to;snbmit its Deposit to Springsted Incorporated
in the form of a certified or cashier's check or wire transferras instructed by Springsted Incorporated
not later than 3:30 P.M., Central Time, on the next busuiesswday-following the award. If such Deposit
is not received by that tnne, the Financial Surety Bond may be drawn by the City to satisfy the Deposit
requirement. _ The City wiil 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 City. No proposal can be withdrawn or
Page 22
amended after the time set for receiving proposals unless the meeting of the City scheduled for awazd
of the Bonds is adjoumed, recessed, or continued to another date without awazd of the Bonds having
been made. Rates shall be in integrat multiples of 5/100 or 1/8 of 1%. Rates must be in ascending
order. Bonds of the same maturity shall beaz a single rate from the date of the Bonds to the date of
maturity. 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 interest
cost (TTC) basis. Tfie City's computarion of the interest rate of eacfi proposal, in accordance with
customary pracrice, will be controlling.
The City 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, (ri) reject all proposals without cause, and,
(rii) reject any proposal which the City determines to have failed to comply with the terms herein.
CUSIP NUMBERS
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 failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service
Bureau chazge for the assignment of CUSiP identificarion numbers shall be paid by the purchaser.
SETTI,EMENT
Within 40 days following rhe date of their awazd, the Bonds witl be detivered 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 legal opinion of Briggs and Morgan, Professional Association,
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 iu designee not later than 12:00 Noon,
Cenual Time. Fecept as compliance with the terms of payment for the Bonds shall have been made
impossible by action of the City, or its agents, the purcBaser 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
On the date of the actual issuance and delivery of the Bonds, the Ciry will execute and deliver a
Continuing Disclosure Undertaking whereunder the Ciry will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and norices
of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the prepazarion of an Officiai• Statement containing perfinent information
relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within
ihe meaning of R�ile 15c2-12 of the Securities and Exchange Commission. For copies of the Official
Statement or for any additional informatioa prior to sale, any prospective purchaser is referred to the
Financial Advisor to the City, Springsted Incocporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota 55101, tetephone (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 ottier 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 15c2-12. By awazding the Bonds _3o any underwriter or underwriting syndicate
submitting a progosaltherefor, the Ciry 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
Page 23
q�- as�'
the Bonds aze awarded 270 copies of the O�cial Statement and the addendum or addenda described
above. T4ie City designates the senior managing underwriter of the syndicate to which the Bonds aze
awazded as iu agent for purposes of distributing copies of the Final Official Statement to each
Participating Underwriter. Any undera�riter delivering a proposal witfi respect to the Bonds agrees
thereby that if iu proposal is accepted by the City (i) it shall accept such designation and (ii) it shall
enter into a conuactual 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 24
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEAALF. PROPOSALS WII.L BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$9,100,000'
CTTY OF SAINT PAUL, MINNESOTA
GENERAL OBLIGATION WATER POLLUTION ABATEMEN'P
REFUNDING BONDS, SERIES 1996D
(BOOK ENTRY ONLI�
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 wluch 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
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 fax (612) 223-3002 for inclusion in the submitted Proposal. Springsted
will assume no liabflity 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 Participation and the Tern�s of Proposal, within a one-hour period prior to the rime 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 informarion about PARITY, potenrial bidders may contact PARITY at 100
116th Avenue SE, Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. Neither the
City nor Springsted Incorporated assumes any liability if there is a malfuncrion of PARITY. All
bidders are 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
March 1 and September 1 of each yeaz, commencing September 1, 1996. Interest will be computed on
the basis of a 360-day year of twelve 30-day months.
The Bonds wfll mature March 1 in the years 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 $1,000,000
2004 $ 475,000
2005 $ 125,000
* The Ciry reserves the right, after proposals are opened and prior to award, to increase or reduce the principal
amount of the Bonds offered for sale. Arry such increase or reduction wiU be in a total amoura not to exceed
$I00,000 and will be made in multiples of $5,000 irt mry of the maturities. In the event the principal amount
of the Bonds is increased os reduced, mry premium offered or arry discount taken by the successful btdder will
be increased nr reduced by a percentage equal to the percentage by which the prireapal amount of the Bonds
is increased or reduced.
Page 25
q�•as�
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 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 securities 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 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 payments to
participanu of DTC will be the responsibility of DTC; transfer of principal and interest payments to
beneficial owners by participanu will be the responsibiliry of such participanGS 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.
'�1'7:1:7
The Treasurer of the Ciry will secve as registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to payznent in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the Ciry for which the City 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 General Obiigation Water Poliution Abatement Refunding Bonds,
Series 1975, dated March 1, 1975 and the 1997 ttuough 2004 maturities of the City's Genecal
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 shall be accompanied by a Good Faith Deposit ("DeposiY') 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
City. If a check is used, it must accompany each proposal. If a Pinancial 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 Surery Bond must identify each underwriter whose Deposit is
guaranteed by such Financial Surery Bond. If the Bonds are awarded to an underwriter using a
Financial Surery 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 Band may be drawn by the Ciry to satisfy the Deposit
tequirement. The City 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 wiil be retained; by the Ciry. No proposal can be withdrawn or
amended afrer the time set for receiving proposals untess the meeting af the City scheduled for award
of the Bonds is adjoumed, recessed, or continued ro 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 maturiry shall bear a single rate from the date of the Bonds to the date of
maturity. No conditional proposals will be accepted.
Page 26
AWARD
The Bonds will be awazded on the basis of the lowest interest rate to be deteimined on a true interest
cost (TIC) basis. The City's computauon of the interest rate of each proposal, in accordance with
customary practice, will be controlling_
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.
CLTSIP NUMBERS
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 failure or refusal by the purchaser io accept delivery of the Bonds. The CUSIP Service
Bureau chazge for the assignment of CUSIP identification numbers shali be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their awazd, the Bonds will be delivered without cost to the
purchaser at a ptace mutually sarisfactory to the Ciry and the putchaset. Delivery will be subject to
receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association,
of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-lirigation
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 comptiance with the terms of payment for the Bonds shall have been made
impossible by action of the City, or iu agents, 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 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 fmancial 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 prepazation of an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a neazly-final Official Statement within
the meaning of Rute 15c2-12 of the Securiries and Exchange Commission. For copies of the Offrcial
Statement or for any additional information prior to sale, any prospective purchaser is referred to the
Financial Advisor to the City, Springsted Incorporated, SS East Seventh Place, Suite 100, Saint Paul,
Minnesota 55101, telephone (612) 223-3000.
The Official Siatement, when further supptemented by an addendum or addenda specifying the mancriry
dates, principal amounu and interest rates of the Bonds, togethet with any other information required
by law, sha]] constitute a"Final Official Statement" of the Ciry with respect to the Bonds, as that term
is defined in Rule 15c2-12. By awazding the Bonds to any underwriter or underwriting syndicate
submitting a proposal therefor, the Ciry agrees 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
the Bonds are awarded 365 copies of the- Official Statement and the addendum or addenda described
above. The Ciry designates the senior°managing underwriter of the syndicate to which the Bonds are
awarded as its agent for purposes of. disuibuting copies of the Final Official Statement to each
Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees
thereby that if iu 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
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