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97-305��`" E ���`���".� �' ! � i f � � n4 — % 6 e . i t � R�.z.�..� �� 3��^i a 3'7 � 3 8' n a,.. -�t��(a7 PAUL, MIN Preserted By Referred To Councii File # � �� Green Sheet # —` �� Committee: Date ��/ 1 2 3 4 5 ACCEPTING PROPOSAL ON SALE OF $2,450,000 GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS, SERIES 1997B, PROVIDIY3G FOR THEIR ISSUANCE, AND LEVYIAIG A TAX FOR THE PAYMENT THEREOF 6 WHEREAS, the Director, Office of Financial Services, 7 has presented proposals received for the sale of $2,450,000 8 General Obligation Street Improvement Special Assessment Bonds, 9 Series 1997B (the "Bonds"), of the City of Saint Pau1, Minnesota 10 (the "City"}; and 11 WHEREAS, the proposals set forth on Exhibit A attached 12 hereto were received pursuant to the Terms of Proposal at the 13 offices of Springsted Incorporated at 10:30 A.M., Central Time, 14 this same day; and 15 WHEREAS, the Director, Office of Financial Services, 16 has advised this Council that the proposal of 17 � � ���.�,i ,,L/�G_ was found to be the most advantageous 18 an has recomm�that said proposal be accepted; and 19 WHEREAS, the proceeds of the Bonds will finance certain 2o street improvements to be specially assessed, for which the City 21 is proceeding pursuant to its Charter and not Minnesota Statutes, 22 Chapter 429, with any excess to be used for any other purpose 23 permitted by law; and q7 3�� 1 WHEREAS, the City has heretofore issued registered 2 obligations in certificated form, and incurs substantial costs 3 associated with their printing and issuance, and substantial 4 continuing transaction costs relating to their payment, transfer 5 and exchange; and 6 WHEREAS, the City has determined that significant 7 savings in transaction costs will result from issuing bonds in 8 "global book-entry £orm", by which bonds are issued in 9 certificated form in large denominations, registered on the books 10 of the City in the name of a depository or its nominee, and held il in safekeeping and immobilized by such depository, and such 12 depository as part of the computerized national securities 13 clearance and settlement system (the "National System") registers 14 transfers of ownership interests in the bonds by making 15 computerized book entries on its own books and distributes 16 payments on the bonds to its Participants shown on its books as 17 the owners of such interests; and such Participants and other 18 banks, brokers and dealers participating in the National System 19 will do likewise (not as agents of the City) if not the 20 beneficial owners of the bonds; anci 21 WAEREAS, "Participants" means those financial 22 institutions for whom the Depository effects book-entry transfers 23 and pledges of securities deposited and immobilized with the 24 Depository; and 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 WHEREAS, The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, or any of its successors or successors to its functions hereunder (the "Depository"), will act as such depository with respect to the Bonds except as set forth below, and the City has heretofore delivered a letter of representations (the "Letter of Representations") setting forth various matters relating to the Depository and its role with respect to the Bonds; and WHEREAS, the City will deliver the Bonds in the form of one certificate per maturity, each representing the entire principal amount of the Bonds due on a particular maturity (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 Depository book-ent exchanged registered 346604.2 date for WHEREAS, the City will be able to replace the or under certain circumstances to abandon the "global ry form" by permitting the Global Certificates to be for smaller denominations typical of ordinary bonds on the City's bond register; and "Replacement Bonds" 2 �� 3QS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 means the certificates representing the Bonds so authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and WHEREAS, "Holder" as used herein means the person in whose name a Bond is registered on the registration books of the City maintained by the registrar appointed as provided in paragraph 8 (the "Bond Registrar"); and WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits "participating underwriters" from purchasing or selling the Bonds unless the City undertakes to provide certain continuing disclosure with respect to the Bonds; and WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), public sale requirements do not apply to the Bonds if the City retains an independent financial advisor and determines to sell the Bonds by private negotiation, and the City has instead authorized a competitive sale without publication of notice thereof as a form of private negotiation; and 19 WHEREAS, proposals for the Bonds have been solicited by 20 Springsted Incorporated pursuant to an Official Statement and 21 Terms of Proposal therein: 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of Piper Jaffray, Inc. (the "PUrchaser"), to purchase $2,450,000 General Obligation Street Improvement Special Assessment Bonds, Series 1997B, of the City (the "Bonds", or individually a "Bond"), in accordance with the Terms of Proposal for the bond sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $2,425,667.50, 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, Office of Financial Services, or his designee, is directed to retain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts. 2. Title; Original Issue Date: Denominations; Maturities. The Bonds shall be titled "General Obligation Street Improvement Special Assessment Bonds, Series 1997B", shall be dated April 1, 1997, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R-1 upward. Global Certificates 346604.2 q 7 3czS 1 2 3 4 5 6 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 shall each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on March 1 in the years and amounts as follows: Year Amount 1998 1999 2000 2001 2002 2003 For purposes maturities of of C.he City' s Bonds, Series Year Amount $350,000 2004 $ 100,000 125,000 2005 100,000 100,000 2006 100,000 100,000 2007 100,000 100,000 2008 100,000 100,000 2009 1,075,000 of Minnesota Statutes, Section 475.54, the serial the Bonds are combined with the serial maturities $17,500,000 General Obligation Capital Improvement 1997A. 3. Pur�ose. The Bonds shall provide funds for the construction of various street improvements (the "Improvements") in the City, and any excess funds shall be devoted to any other purpose permitted by law. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 4. Interest. The Bonds shall bear interest payable semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 1997, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year 1998 1999 2000 2001 20�2 2003 Interest Rate Maturit� Year Interest Rate 4.30a 4.30 4.45 4.55 4.65 4.75 2004 2005 2006 2007 2008 2009 4.80 4.90 5.00 5.00 5.10 5.20 40 5. Description of the Global Certificates and Global 41 Book-Entry System. Upon their original issuance the Bonds will 42 be issued in the form of a single Global Certificate for each 346604.2 9`7 3�� 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 maturity, deposited with the Depository by the Purchaser and immobilized as provided in paragraph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respective interests in the Bonds except as provided in paragraph 6. Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent transfers of beneficial ownership) of interests in the Global Certificates will be reflected by book entries made on the records of the Depository and its Participants and other banks, brokers, and dealers participating in the National System. `Phe 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 G1oba1 Certificates, and the Depository according to the laws and rules governing it will receive and forward payments on behalf of the beneficial owners of the Global Certificates. Payment of principal of, premium, if any, and interest on a Global Certificate may in the City�s discretion be made by such other method of transferring funds as may be requested by the Holder of a Global Certificate. 6. Immobilization of Global Certificates bv the Deoositorv: Successor Depository: Replacement Bonds. Pursuant to the request of the Purchaser to the Depository, which request is required by the Terms of Proposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository. The G1oba1 Certificates sha11 be in typewritten form or otherwise as acceptable to the Depository, shall be registered in the name of the Depository or its nominee and shall be held immobilized from circulation at the offices of the Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nominee wi11 be the sole holder of record of the Global Certificates and no investor or other party purchasing, selling or otherwise transferring ownership of interests in any Bond is to receive, hold or deliver any bond certificates so long as the Depository holds the Global Certificates immobilized from circulation, except as provided below in this paragraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transferred or exchanged except: (i) Upon registration of transfer of ownership of a Global Certificate, as provided in paragraph 12, 346604.2 5 97 �3ds 1 (ii) To any successor of the Depository (or its 2 nominee) or any substitute depository (a "substitute 3 depository") designated pursuant to clause (iii) of this 4 subparagraph, provided that any successor of the Depository 5 or any substitute depository must be both a"clearing 6 corporation" as defined in the Minnesota Uniform Commercial 7 Code at Minnesota Statutes, Section 336.8-102, and a 8 qualified and registered "clearing agency" as provided in 9 Section 17A of the Securities Exchange Act o£ 1934, as 10 amended, 11 (iii) To a substitute depository designated by and 12 acceptable to the City upon (a) the determination by the 13 Depository that the Bonds shall no longer be eligible for 14 its depository services or (b) a determination by the City 15 that the Depository is no longer able to carry out its 16 functions, provided that any substitute depository must be 17 qualified to act as such, as provided in clause (ii) o£ this 18 subparagraph, or 19 (iv) To those persons to whom transfer is requested 20 in written transfer instructions in the event that: 21 (a) the DeposiCory shall resign or discontinue 22 its services for the Bonds and the City is unable to 23 locate a substitute depository within two (2) months 24 following the resignation or determination of non- 25 eligibility, or 26 (b) upon a determination by the City in its sole 27 discretion that (1) the continuation of the book-entry 28 system described herein, which precludes the issuance 29 of certificates (other than Global Certificates) to any 30 Holder other than the Depository (or its nominee), 31 might adversely affect the interest of the beneficial 32 owners of the Bonds, or (2) that it is in the best 33 interest of the beneficial owners of the Bonds that 34 they be able to obtain certificated bonds, 35 in either of which events the City shall notify Holders of 36 its determination and of the availability of certificates 37 (the "Replacement Bonds") to Holders requesting the same and 38 the registration, transfer and exchange of such Sonds will 39 be conducted as provided in paragraphs 9B and 12 hereof. 40 In the event of a succession of the Depository as may 41 be authorized by this paragraph, the Bond Registrar upon 42 presentation of Global Certificates shall register their transfer 43 to the substitute or successor depository, and the substitute or 44 successor depository shall be treated as the Depository for all 346604.2 6 97 �3d� purposes and functions under this Representations shall not apply to depository unless the City and the depository so agree, and a similar resolution. The Letter of a substitute or successor substitute or successor agreement may be entered into. 7. Redemption. � 10 11 12 13 14 15 16 17 18 19 20 (a) Optional Redemption; Due Date. All Bonds maturing after March 1, 2005, 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 Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof oalled for redemption sha11 be due and payable on the redemption date, and interest thereon sha11 cease to accrue from and after the redemption date. 21 (b) Notation on Global Certificate. Upon a reduction in 22 the aggregate principal amount of a Global Certificate, the 23 Holder may malce a notation of such redemption on the panel 24 provided on the Global Certificate stating the amount so 25 redeemed, or may return the Global Certificate to the Bond 26 Registrar in exchange for a new Global Certificate authenticated 27 by the Bond Registrar, in proper principal amount. Such 28 notation, if made by the Holder, shall be for reference only, and 29 may not be relied upon by any other person as being in any way 30 determinative of the principal amount of such Global Certificate 31 outstanding, unless the Bond Registrar has signed the appropriate 32 column of the panel. 33 (c) Selection of ReAlacement Bonds. To effect a partial 34 redemption of Replacement Bonds having a common maturity date, 35 the Bond Registrar prior to giving notice of redemption shall 36 assign to each Replacement Bond having a common maturity date a 37 distinctive number for each $5,000 of the principal amount of 38 such Replacement Bond. The Bond Registrar shall then select by 39 lot, using such method of selection as it shall deem proper in 40 its discretion, from the numbers so assigned to such Replacement 41 Bonds, as many numbers as, at $5,000 for each number, shall equal 42 the principal amount of such Replacement Bonds to be redeemed. 43 The Replacement Bonds to be redeemed shall be the Replacement 44 Bonds to which were assigned numbers so selected; provided, 45 however, that only so much of the principal amount of each such 46 Replacement Bond of a denomination of more than $5,000 shall be 346604.2 7 ����5 1 redeemed as shall equal $5,000 for each number assigned to it and 2 so selected. 3 (d) Partial Redemt�tion of Replacement Bond. If a 4 Replacement Bond is to be redeemed only in part, it shall be 5 surrendered to the Bond Registrar (with, if the City or Bond 6 Registrar so requires, a written instrument of transfer in form 7 satisfactory to the City and Bond Registrar duly executed by the 8 Holder thereof or his, her or its attorney duly authorized in 9 writing) and the City shall execute (if necessary) and the Bond 10 Registrar shall authenticate and deliver to the Holder of such 11 Replacement Bond, without service charge, a new Replacement Bond 12 or Bonds of the same series having the same stated maturity and 13 interest rate and of any authorized denomination or 14 denominations, as requested by such Holder, in aggregate 15 principal amount equal to and in exchange for the unredeemed 16 portion of the principal of the Bond so surrendered. 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 (e) Request for RedemAtion. The Bond Registrar shall ca11 Bonds for redemption and payment as herein provided upon receipt by the Bond Registrar at least £orty-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 f.S.] 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: 35 36 37 3S 39 40 41 42 346604.2 (i) The redemption date; (ii) The redemption price; (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, 0 �� 3S 1 and that interest thereon sha11 cease to accrue 2 from and after said date; and 3 (v) The place where such Bonds are to be surrendered 4 for payment of the redemption price (which shall 5 be the office of the Bond Registrar}. 6 (g) Notice to Depositorv. Notices to The Depository Trust 7 Company or its nominee shall contain the CUSIP numbers of the 8 Bonds. If there are any Holders of the Bonds other than the 9 Depository or its nominee, the Bond Registrar shall use its best 10 efforts to deliver any such notice to the Depository on the 11 business day next preceding the date of mailing of such notice to 12 all other Holders. 13 8. Bond Registrar. First Trust National Association, 14 in Saint Paul, Minnesota, is appointed to act as bond registrar 15 and transfer agent with respect to the Bonds (the "Bond 16 Registrar��), and shall do so unless and until a successor Bond 17 Registrar is duly appointed, a11 pursuant to any contract the 18 City and Bond Registrar shall execute which is consistent 19 herewith. A successor Bond Registrar shall be an officer of the 20 City or a bank or trust company eligible for designation as bond 21 registrar pursuant to Minnesota Statutes, Chapter 475, and may be 22 appointed pursuant to any contract the City and such successor 23 Bond Registrar shall execute which is consistent herewith. The 24 Bond Registrar shall also serve as paying agent unless and until 25 a successor paying agent is duly appointed. Principal and 26 interest on the Bonds shall be paid to the Holders (or record 27 holders) of the Bonds in the manner set forth in the forms of 28 Bond and paragraph 14 of this resolution. 29 9. Forms of Bond The Bonds shall be in the form of 30 Global Certificates unless and until Replacement Bonds are made 31 available as provided in paragraph 6. Each form of bond may 32 contain such adclitional or different terms and provisions as to 33 the form of payment, record date, notices and other matters as 34 are consistent with the Letter of Representations and approved by 35 the City Attorney. 36 A. Global Certificates. The Global Certificates, 37 together with the Certificate of Registration, the Register of 38 Partial Payments, the form of Assignment and the registration 39 information thereon, shall be in substantially the following form 40 and may be typewritten rather than printed: 346604.2 9 9� �3�-� 2 3 4 5 6 R- 7 8 9 INTEREST 10 RATE il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BOND, SERIES 1997B MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP March 1, REGISTERED OWNER: PRINCIPAL AMOTJNT: DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "ISSUer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above or on the certificate of registration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the 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, 1997, 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 in , Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer; provided, however, that upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion be paid without presentation of this Bond, which payment shall be received no later than 2:30 p.m., Eastern time, and may make a notation on the panel provided herein of such redemption, stating April l, 1997 346604.2 1 0 q� 3�S 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 the amount so redeemed, or may return the Bond to the Bond Registrar in exchange for a new Bond in the proper principal amount. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being in any way determinative of the principal amount of this Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 2:30 p.m., Eastern time, to Che person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "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 sha11 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. Date of Pavment Not Business Dav. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New York, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Redemotion. All Bonds maturing after March 1, 2005, are prepayment at the option of the Issuer day thereafter at a price of par plus Redemption may be in whole or in part prepayment. If redemption is in part, unpaid may be prepaid in such order of amount per maturity as the City shall of the Bonds having a common maturity 34b604.2 of this issue (the "Bonds") subject to redemption and 11 on such date and on any accrued interest. of the Bonds subject to those Bonds remaining maturity and in such determine; and if only part date are called for 97��5 1 prepayment, 2 principal. 3 be due and 4 shall cease this Bond may be prepaid in $5,000 increments of Bonds or portions thereof called for redemption shall payable on the redemption date, and interest thereon to accrue from and after the redemption date. 5 Notice of Redemption. Mailed notice of redemption 6 shall be given to the paying agent (if other than a City officer) 7 and to each affected Holder of the Bonds. In the event any of 8 the Bonds are called for redemption, written notice thereo£ will 9 be given by first class mail mailed not less than thirty (3�) 10 days prior to the redempCion date to each Holder of Bonds to be 11 redeemed. In connection with any such notice, the "CL3SIP" 12 numbers assigned to the Bonds shall be used. 13 Renlacement or Notation of Bonds after Partial 14 Redemption. Upon a partial redemption of this Bond which results 15 in the stated amount hereof being reduced, the Holder may in its 16 discretion make a notation on the panel provided herein of such 17 redemption, stating the amount so redeemed. Such notation, if 18 made by the Holder, shall be for reference only, and may not be 19 relied upon by any other person as being in any way determinative 20 of the principal amount of the Bond outstanding, unless the Bond 21 Registrar has signed the appropriate column of the panel. 22 Otherwise, the Holder may surrender this Bond to the Bond 23 Registrar (with, if the Issuer or Bond Registrar so requires, a 24 written instrument of transfer in form satisfactory to the Issuer 25 and Bond Registrar duly executed by the Holder thereof or his, 26 her or its attorney duly authorized in writing) and the Issuer 27 shall execute (if necessary) and the Bond Registrar shall 28 authenticate and deliver to the Holder of such Bond, without 29 service charge, a new Bond of the same series having the same 30 stated maturity and interest rate and of the authorized 31 denomination in aggregate principal amount equal to and in 32 exchange for the unredeemed portion of the principal of the Bond 33 so surrendered. 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Issuance; Purpose; General Obliaation. This Bond is one of an issue in the total principal amount of $2,450,000, 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 confor,mity with the Constitution and laws of the State of Minnesota and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 26, 1997 (the "Resolution"), for the purpose of providing money to finance the construction of various street improvements in the City. This Bond is payable out of a special account relating to the Bonds in the General Obligation Special Assessments -- Streets Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt 346604.2 12 �� �� 8 9 10 il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 and full payment of its princigal, when the same become due, the full powers of the Issuer have been and pledged. premium, if any, and interest faith and credit and taxing are hereby irrevocably Denominations; Exchanae; Resolution. The Bonds are issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. G1oba1 Certificates are not exchangeable for fully registered bonds of smaller denominations except to evidence a partial prepayment or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are issuable solely as fully registered bonds in the denominations o£ $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Renlacement Bonds. Replacement Bonds may be issued by the Issuer in the event that: (a) the Depository shall resign or discontinue its services for the Bonds, and only if the Issuer is unable to locate a substitute depository within two (2) months following the resignation or determination of non- eligibility, or (b) upon a determination by the Issuer in its sole discretion that (1) the continuation of the book-entry system described in the Resolution, which precludes the issuance of certificates (other than Global Certificates) to any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds. 40 Transfer. This Bond shall be registered in the name of 41 the payee on the books of the Issuer by presenting this Bond for 42 registration to the Sond Registrar, who wi11 endorse his, her or 43 its name and note the date of registration opposite the name of 44 the payee in the certificate of registration attached hereto. 45 Thereafter this Bond may be transferred by delivery with an 346604.2 1 3 q7 �s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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 Sond-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. 16 Fees upon Transfer or Loss. The Bond Registrar may 17 require payment of a sum sufficient to cover any tax or other 18 governmental charge payable in connection with the transfer or 19 exchange of this Bond and any legal or unusual costs regarding 20 transfers and lost Bonds. 21 22 23 24 25 26 27 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 o£ receiving payment as herein provided (except as otherwise provided with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. 28 Authentication This Bond shall not be valid or become 29 obligatory for any purpose or be entitled to any security unless 30 the Certificate of Authentication hereon shall have been executed 31 by the Bond Registrar. 32 Not Qualified Tax-Exempt Obliaations. The Bonds have 33 not been designated by the Issuer as "qualified tax-exempt 34 obligations" for purposes of Section 265(b)(3) of the federal 35 Internal Revenue Code of 1986, as amended. The Bonds do not 36 qualify for such designation. 37 IT IS AEREBY CERTIFIED AND RECITED that all acts, 38 conditions and things required by the Constitution and laws of 39 the State of Minnesota and the Charter of the Issuer to be done, 40 to happen and to be performed, precedent to and in the issuance 41 of this Bond, have been done, have happened and have been 42 performed, in regular and due form, time and manner as required 43 by 1aw, and that this Bond, together with a11 other debts of the 44 Issuer outstanding on the date of original issue hereof and on 45 the date of its issuance and delivery to the original purchaser, 346604.2 14 9� ��S 1 does not exceed any constitutional or statutory or Charter 2 limitation of indebtedness. 3 IN WSTNESS WHEREOF, the City of Saint Paul, Ramsey 4 County, Minnesota, by its City Council has caused this Bond to be 5 sealed with its official seal and to be executed on its behalf by 6 the photocopied facsimile signature of its Mayor, attested by the 7 photocopied facsimile signature of its Clerk, and countersigned 8 by the photocopied facsimile signature of its Director, Office of 9 Financial Services. 346604.2 1 5 �� �� 1 2 3 4 Date of Registration Registrable by: Payable at: _ 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 15 , 16 Bond Registrar 17 18 19 20 21 22 23 24 By Authorized Signature (SEAL) CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Street Improvement Special Assessment Bond, Series 1997B, No. R- 346604.2 � �.>� FI 2 3 4 � 7 0 �] 10 11 12 CERTIFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Bond may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF REGISTRATION REGISTERED OWNER SIGNATURE OF BOND REGIS'I'RAR 346604.2 17 �� �� � 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 REGISTER OF PARTIAI, PAYMENTS The principal amount of the attached Bond has been prepaid on the dates and in the amounts noted below: Signature of Signature of Date Amount Bondholder Bond Reaistrar If a notation is made on this register, such notation has the effect stated in the attached Bond. Partial payments do not require the presentation of the attached Bond to the Bond Registrar, and a Holder could fail to note the partial payment here. 346604.2 F[1 ���� 1 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 SNT - as tenants by the entireties 7 JT TEN - as joint tenants with right of survivorship 8 and not as tenants in common 9 UTMA - as custodian for 10 (Cust) (Minor) 11 under the Uniform Transfers 12 (State) 13 to Minors Act 14 Additional abbreviations may also be used 15 though not in the above 1ist. 346604.2 1 9 �� .�s � 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the attached Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration or any change whatever. Signature Guaranteed: 17 Signature(s) must be guaranteed by a national bank or trust 18 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 22 23 24 25 26 27 28 The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 346604.2 L�d�] 9�7-3 �S 1 B. Replacement Bonds. If the City has notified 2 Holders that Replacement Bonds have been made available as 3 provided in paragraph 6, then for every Bond thereafter 4 transferred or exchanged (including an exchange to reflect the 5 partial prepayment of a Global Certificate not previously 6 exchanged for Replacement Bonds) the Bond Registrar shall deliver 7 a certificate in the form of the Replacement Bond rather than the 8 Global Certificate, but the Holder of a Global Certificate shall 9 not otherwise be required to exchange the Global Certificate for 10 one or more Replacement Bonds since the City recognizes that some 11 beneficial owners may prefer the convenience of the Depository's 12 registered ownership of the Bonds even though the entire issue is 13 no longer required to be in global book-entry form. The 14 Replacement Bonds, together with the Bond Registrar's Certificate 15 of Authentication, the form of Assignment and the registration 16 information thereon, shall be in substantially the following 17 form: 346604.2 2 1 97 3�� UNITED STATES OF AMERICA STATE OF MINNfiSOTA RAMSEY COUNTY CITY OF SAINT PAUL 5 R- 6 7 8 INTEREST 9 RATE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 GENERAL OBLIGATION STREET IMPROVEMEA7T SPECIAL ASSESSMENT BOND, SERIES 1997B MATURITY DATE OF DATE ORIGINAL ISSUE April 1, 1997 REGISTERED OWNER: PRINCIPAL AMOUNT: $ CUSIP DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or 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, 1997, 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 Sond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar monCh preceding such Interest Payment Date (the '�Regular Record Date'�). Any interest not so timely paid shall cease to be payable to the 346604.2 ' 2 2 97 3S 1 person who is the Holder hereof as of the Regular Record Date, 2 and shall be payable to the person who is the Holder hereof at 3 the close of business on a date (the "Special Record Date��) fixed 4 by the Bond Registrar whenever money becomes available for 5 payment of the defaulted interest. Notice of the Special Record 6 Date shall be given to Bondholders not less than ten days prior 7 to the Special Record Date. The principal of and premium, if 8 any, and interest on this Bond are payable in lawful money of the 9 United States of America. 10 11 12 13 14 15 16 17 18 19 20 21 aa 23 24 25 26 27 28 29 30 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date o£ its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by its City Council has caused this Bond to be sealed with its official seal or a facsimile thereof and to be executed on its behalf by the original or facsimile signature o£ its Mayor, attested by the original or facsimile signature of its Clerk, and countersigned by the original or facsimile signature of its Director, Office of Financial Services. 346604.2 2 3 r7 ��� 1 2 3 4 Date of Registration Registrable by: Payable at: _ _ 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTIiENTICATI0A7 8 This Hond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 By Authorized Signature 20 (SEAL) 3466D4.2 CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Attest: City Clerk Countersigned: Director, Office of Financial Services 24 ��-3a� ON REVERSE OF BOND 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Date of Payment Not Business Day. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New York, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such gayment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Redemption. All Bonds of this issue (the "Bonds") maturing after March 1, 2005, are subjeCt to redemption and prepayment at the option of the Issuer on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be prepaid in such arder 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 specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall Cease to acCrue from and after the redemption date. 27 Notice of Redemption. Mailed notice of redemption 28 shall be given to the paying agent (if other than a City officer) 29 and ta each affected Holder of the Eonds. In the event any of 30 the Bonds are called for redemption, written notice thereof will 31 be given by first class mail mailed not less than thirty (30) 32 days prior to the redemption date to each Holder of Bonds to be 33 redeemed. In connection with any such notice, the "CUSIP" 34 numbers assigned to the Bonds shall be used. 35 Selection of Bonds for Redemption. To effect a partial 36 redemption of Bonds having a commpn 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 Sond 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; 34b604.2 2 5 9'7 .��5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Aolder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose: General Obligatian. This Bond is one of an issue in the total principal amount of $2,450,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and the CharCer of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 26, 1997 (the "Resolution"), for the purpose of providing money to finance the construction of various street improvements in the City. This Bond is payable out of a special account relating to the Bonds in the General Obligation Special Assessments -- Streets Debt Service Fund of the Issuer. This Bond Constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations: Exchange: Resolution. The Bonds are issuable solely as fully registered bonds in the denominations of $5,0�0 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. ReferenCe is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. 346604.2 26 � / J � 1 Transfer. This Bond is transferable by the Holder in 2 person or by his, her or its attorney duly authorized in writing 3 at the principal office of the Bond Registrar upon presentation 4 and surrender hereof to the Bond Registrar, all subject to the 5 terms and conditions provided in the Resolution and to reasonable 6 regulations of the Issuer contained in any agreement with, or 7 notice to, the Bond Registrar. Thereupon the Issuer shall 8 execute and the Bond Registrar shall authenticate and deliver, in 9 exchange for this Bond, one or more new fully registered Bonds in 10 the name of the transferee (but not registered in blank or to 11 "bearer" or similar designation), of an authorized denomination 12 or denominations, in aggregate principal amount equal to the 13 principal amount of this Bond, of the same maturity and bearing 14 interest at the Same rate. 15 Fees upon Transfer or Loss. The Bond Registrar may 16 require payment of a sum sufficient to cover any tax or other 17 governmental charge payable in connection with the transfer or 18 exchange of this Bond and any legal or unusual costs regarding 19 transfers and lost Bonds. 20 Treatment of Reaistered Owner_ The Issuer and Bond 21 Registrar may treat the person in whose name this Bond is 22 registered as the owner hereof for the purpose of receiving 23 payment as herein provided (except as otherwise provided on the 24 reverse side hereof with respect to the Record Date) and for all 25 other purposes, whether or not this Bond shall be overdue, and 26 neither the Issuer nor the Bond Registrar shall be affected by 27 notiCe to the contrary. 28 Authentication. This Bond shall not be valid or become 29 obligatory for any purpose or be entitled to any security unless 30 the Certificate of Authentication hereon shall have been executed 31 by the Bond Registrar. 32 Not Oualified Tax-Exempt Oblicxations. The Bonds have 33 not been designated by the Issuer as "qualified tax-exempt 34 obligations" for purposes of Section 265(b)(3) of the federal 35 Internal Revenue Code of 1986, as amended. The Bonds do not 36 qualify for such designation. 346604.2 2 7 9� .3v� � 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 fu11 according to applicable laws 5 or regulations: 6 TEN COM - as tenants in common 7 TEN ENT - as tenants by the entireties 8 JT fiEN - as joint tenants with right of survivorship 9 and not as tenants in common 10 UTMA - as custodian for il (Cust) (Minor) 12 under the Uniform Transfers 13 (State) 14 to Minors Act 15 Additional abbreviations may also be used 16 though not in the above list. 346604.2 2 8 9 � 3 �� � ASSIGNMENT 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the within Bond and does 5 hereby irrevocably constituCe and appoint 6 attorney to transfer the Bond on the books kept for the 7 registration thereof, with full power of substitution in the S premises. 9 Dated: 10 Notice: The assignor's signature to this assignment 11 must correspond with the name as it appears 12 upon the face of the within Bond in every 13 particular, without alteration or any change 14 whatever. 15 Signature Guaranteed: 16 17 Signature(s) must be guaranteed by a national bank or trust 18 company or by a brokerage firm having a membership in one of the 19 major stock exchanges or any other "Eligible Guarantor 20 Institution" as 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: 25 26 27 za (Include information for all joint owners if the Bond is held by joint account.) 346604.2 2 9 9� 3�S 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, Office of Financial Services, each with the effect noted on the forms of the Bonds, and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed or photocopied facsimile; and provided further that any of such signatures may be printed or photocopied 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, sha11 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, 1997. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 12. Reaistration; `Pransfer; 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 transferred as herein provided. 42 A Global Certificate shall be registered in the name of 43 the payee on the books of the Bond Registrar by presenting the 44 Global 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 34bb04.2 3 0 ����� 2 3 4 8 9 10 11 12 be transferred by delivery with an assignment duly executed by the Holder or his, her or its legal representative, and the City and Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until a Global Certificate is presented with such assignment for registration of transfer, accompanied by assuranee of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. 13 `Transfer o£ a Global CertifiCate may, at the direction 14 and expense of the City, be subject to other restrictions if 15 required to qualify the Global Certificates as being '�in 16 registered form" within the meaning of Section 149(a) of the 17 federal Internal Revenue Code of 1986, as amended. 18 If a Global Certificate is to be exchanged for one or 19 more Replacement Bonds, all of the principal amount of the Global 20 Certificate shall be so exchanged. 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Upon surrender for transfer of any Replacement Bond the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the name of the designated transferee or transferees, one or more new Replacement Bonds at � any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder of a Replacement Bond, Replacement Bonds may be exchanged for Replacement Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Replacement Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Replacement Bonds which the Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for Global Certificates of smaller denominations. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by 346604.2 3 1 �3� 1 the Bond Registrar and thereafter disposed of as directed by the 2 City. 3 Al1 Bonds delivered in exchange for or upon transfer of 4 Bonds shall be valid general obligations of the City evidencing 5 the same debt, and entitled to the same benefits under this 6 resolution, as the Bonds surrendered for such exchange or 7 transfer. 8 Every Bond presented or surrendered for transfer or 9 exchange shall be duly endorsed or be accompanied by a written 10 instrument of transfer, in form satisfactory to the Bond 11 Registrar, duly executed by the Holder thereof or his, her or its 12 attorney duly authorized in writing. 13 The Bond Registrar may require payment of a sum 14 sufficient to cover any tax or other governmental charge payable 15 in connection with the transfer or exchange of any Bond and any_ 16 legal or unusual costs regarding transfers and lost Bonds. 17 Transfers shall also be subject to reasonable regula- 18 tions of the City Contained in any agreement with, or notice to, 19 the Bond Registrar, including regulations which permit the Bond 20 Registrar to close its transfer books between record dates and 21 payment dates. 22 13. Riqhts Upon Transfer or Exchanae. Each Bond 23 delivered upon transfer of or in exchange for or in lieu of any 24 other Bond shall carry all the rights to interest accrued and 25 unpaid, and to accrue, which were carried by such other Bond. 26 14. Interest Payment: Record Date. Interest on any 27 Global Certificate shall be paid as provided in the first 28 paragraph thereof, and interest on any Replacement Bond shall be 29 paid on each Interest Payment Date by check or draft mailed to 30 the person in whose name the Bond is registered (the "HOlder") on 31 the registration books of the City maintained by the Bond 32 Registrar, and in each case at the address appearing thereon at 33 the close of business on the fifteenth (15th) day o£ the calendar 34 month preceding such Interest Payment Date (the "Regular Record 35 Date"). Any such interest not so timely paid shall cease to be 36 payable to the person who is the Holder thereof as of the Regular 37 Reaord Date, and shall be payable to the person who is the Holder 38 thereof at the close o£ business on a date (the "Special Record 39 Date") fixed by the Bond Registrar whenever money becomes 40 available for payment of the defaulted interest. Notice of the 41 Special Record Date shall be given by the Bond Registrar to the 42 Holders not less than ten (10) days prior to the Special Record 43 Date. 346604.2 3 2 �� �3�5 1 2 3 4 5 6 7 8 9 10 il 12 13 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 purehases, the City may (but shall not be obligated to) treat as the Holder of a Bond the beneficial owner of the Bond instead of the person in whose name the Bond is registered_ For that purpose, the City may ascertain the identity of the beneficial owner of the Bond by such means as the Bond Registrar in its sole discretion deems appropriate, including but not limited to a certificate from the person in whose name the Bond is registered identifying such beneficial owner. 14 (B) The City and Bond Registrar may treat the person in 15 whose name any Sond is registered as the owner of such Bond for 16 the purpose of receiving payment of prinaipal of and premium, if 17 any, and interest (subject to the payment provisions in paragraph 18 14 above) on, such Bond and for a11 other purposes whatsoever 19 whether or not such Bond shall be overdue, and neither the City 20 nor the Bond Registrar shall be affected by notice to the 21 contrary. 22 (C) Any consent, request, direction, approval, objection or 23 other instrument to be signed and executed by the Holders may be 24 in any number of concurrent writings of similar tenor and must be 25 signed or executed by such Holders in person or by agent 26 appointed in writing. Proof of the execution of any such 27 consent, request, direction, approval, objection or other 28 instrument or of the writing appointing any such agent and of the 29 ownership of Bonds, if made in the following manner, shall be 30 sufficient for any of the purposes of this Resolution and shall 31 be conclusive in favor of the City with regard to any action 32 taken by it under such request or other instrument, namely: 33 (1) The fact and date of the execution by any person 34 of any such writing may be proved by the certificate of any 35 officer in any jurisdiction who by law has power to take 36 acknowledgments within such jurisdiction that the person 37 signing such writing acknowledged before him or her the 38 execution thereof, or by an affidavit of any witness to such 39 execution. 40 (2) Subject to the provisions of subparagraph (A) 41 above, the fact of the ownership by any person of Bonds and 42 the amounts and numbers of such Bonds, and the date of the 43 holfling of the same, may be proved by reference to the bond 44 register. 34bb04.2 3 3 9� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 16. Delivery; A�,pliaation of Proceeds. The Global Certificates when so prepared and executed shall be delivered by the Director, Office of Einancial Services, to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 17. Funds. There is hereby'created a special fund to be designated the "1997 Capital Projects Fund" (numbered C-97, the "Capital Fund"), to be administered and maintained by the City Treasurer as a bookkeeping account separate and apart from all other accounts maintained in the official financial records of the City. There has been heretofore created and established the "General Obligation Special Assessments -- Streets Debt Service Fund" (numbered 963, the "Debt Service Fund"). The Capital Fund and Debt Service Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. (i) Cabital Fund. To the Capital Fund there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of $2,425,500. From the Capital Fund there shall be paid all costs and expenses of making the Improvements listed in paragraph 18, after they have been ordered in accordance with the Charter of the City, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Capital Rund shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes or special assessments herein covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Capital Fund, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to the City's Charter or Minnesota Statutes, Chapter 429, or used to pay the costs of any other purpose permitted by law, or transferred to the Debt Service Fund. All earnings on the Capital Fund shall be transferred to the Debt Service Fund, or may be retained in the Capital Fund. (ii) Debt Service Fund. There there shall be credited to a special Bonds in the Debt Service Fund: (a) assessments herein covenanted to be 346604.2 34 is hereby pledged and account relating to the collections of special levied, to the extent 9� 3as 1 2 3 4 5 6 7 8 9 10 il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 provided in paragraph 19; (b) all accrued interest received upon delivery of the Bonds; (c) all funds paid for the Bonds in excess of $2,425,500; (d) any collections of all taxes which are levied herein, or which may hereafter be levied in the event that the special assessments herein pledged to the payment of the Bonds and interest thereon are insufficient therefor; (e) all funds remaining in the Capital Fund after completion of the Improvements and payment of the costs thereof, not so transferred to the account of another improvement or used to pay the costs of any other purpose permitted by law; and (f) all investment earnings on moneys held in such special account in the Debt Service Fund or on moneys held in the Capital Fund. If moneys in the special account of the Debt Service Fund should ever be insufficient to pay debt service on the Bonds, the Bonds shall be paid from the Debt Service Fund or any other special account therein, and the Bonds are hereby made payable from the Debt Service Fund and any other special accounts therein for this purpose. Amounts drawn from the Debt Service Fund or any special account therein may be repaid with or without interest when moneys sufficient for such repayment are deposited in the special account relating to the Bonds in the Debt Serviae Fund. The special account relating to the Bonds in the Debt Service Fund shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from such special account in the Debt Service Fund as provided by law, or to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an amount not greater than five percent (5 of the proceeds of the Bonds. To this effect, any sums from time to time held in the Capital Fund or in such special account in the Debt Service Fund (or any other City fund or account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then- applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Capital Fund or in such special account in the Debt Service Fund shall not be invested in 346604.2 3 5 9�-3bs 1 obligations or deposits issued by, guaranteed by or insured by 2 the United States or any agency or instrumentality thereof if and 3 to the extent that such investment would cause the Bonds to be 4 ��federally guaranteed" within the meaning of Section 149ib) of 5 the federal Internal Revenue Code of 1986, as amended (the 6 ��Code"). 7 18. Assessments: Coverage Test. The City CounCil has 8 heretofore determined, and does hereby determine, to proceed with 9 the Improvements and special assessments with respect thereto 10 under the provisions of the Charter of the City, rather than the 11 provisions of Minnesota Statutes, Chapter 429. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 It is hereby determined that no less than twenty percent (20%) of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefitted by the Improvements. The City hereby covenants and agrees that it will let all construation contracts not heretofore let within one year after ordering each Improvement financed hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of construction contracts and will do and perform, as soon as they may be done, all acts and things necessary for the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity, in any action or proceedings taken or to be taken by the City or this Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. 34 The special assessments have not heretofore been 35 authorized, and accordingly, for purposes of Minnesota Statutes, 36 Section 475.55, Subdivision 3, the special assessments are hereby 37 authorized. Subject to such adjustments as are required by 38 conditions in existence at the time the assessments are levied, 39 the assessments are hereby authorized and it is hereby determined 40 that the assessments sha11 be payable in equal, consecutive, 41 annual installments, with general taxes for the years shown below 42 and with interest on the declining balance of all such 43 assessments at a rate per annum approximately one percent (1a) 44 per annum in excess of the net effective rate of interest on the 45 Bonds: 346604.2 3 6 � 7-3o.S � 2 3 4 5 6 7 Improvement Designation Page/Cherokee Lafond/Grotto ArlingtonjRuth MorganjEdgecumbe TOTAL Amount $ 610,000 500,000 520,460 820.000 $2,450,000 Levy Years 1997-2016 for all Collection Years 1998-2017 for all 8 The special assessments shall be such that if collected 9 in full they, together with estimated collections of other 10 revenues herein pledged for the payment of the Bonds, will 11 produce at least five percent (50) in excess of the amount needed 12 to meet when due the principal and interest payments on the Bonds 13 in every year except the final year (2009). At the time the 14 assessments are in fact levied the City Council sha11, baseci on 15 the then-current estimated collections of the assessments, make 16 an�r adjustments in any ad valorem taxes required to be levied in 17 order to assure that the City continues to be in compliance with 18 Minnesota Statutes, Section 475.61, Subdivision 1. 19 19. Limit on Special Assessments Pledged. The City 20 Council hereby finds, determines and declares that the payment of 21 the Bonds does not require the pledge of all the special 22 assessments which may be levied with respect to the Improvements 23 identified in paragraph 18, and that it is necessary, proper and 24 expedient to provide that payments and prepayments of special 25 assessments in excess of the debt service requirements of the 26 Bonds be put to use for other purposes sooner than upon the 27 termination of the Debt Service Fund. Only $2,450,000 original 28 principal amount of the special assessments (which amount is the 29 '�Pledged Assessments"), and interest thereon, recognized in 30 paragraph 18 of this Resolution (of which $410,000 are necessary 31 prior to their scheduled receipt in order to pay debt service on 32 the Bonds on March 1, 1997) are or shall be pledged to the 33 payment of the Bonds, and payments of, or with respect to, such 34 special assessments in excess of the Pledged Assessments shall be 35 credited instead to a special account in the Capital Fund, and 36 used for the purpose of paying any additional costs of the 37 Improvements and the costs of other improvements approved by the 38 City, as follows: (a) the first $410,000 of all prepayments of 39 special assessments recognized in paragraph 18 shall be credited 40 to the Debt Service Fund, (b) thereafter until SllCYl time as the 41 special assessments from time to time outstanding equal in 42 original principal amount the Pledged Assessments or less, 43 prepayments of any of the special assessments recognized in 44 paragraph 18 shall be treated as prepayments of the portion of 45 the special assessments not pledged to the Bonds and sha11 be 46 credited instead to said special account of the Capital Fund, and 346604.2 3 7 9 � 3oS 3 4 5 6 7 8 9 used as provided above, and (c) while the special assessments from time to time outstanding equal in original principal amount the Pledged Assessments or more, regular installment payments made on the Pledged Assessments only (not all of the special assessments) shall be credited to the Debt Service Fund, and regular installment payments on that portion, if any, of the remaining assessments in excess of the Pledged Assessments shall be credited to said special account of the Capital Fund, and used as provided above. 10 20. Tax Levy: Coverage Test. If taxes are levied as 11 provided in the final part of paragraph 18, the tax levies shall 12 be irrepealable so long as any of the Bonds are outstanding and 13 unpaid, provided that the City reserves the right and power to 14 reduce the levies in the manner and to the extent permitted by 15 Minnesota Statutes, Seetion 475.61, Subdivision 3. 16 To provide moneys for payment of the principal and 17 interest on the Bonds due to be paid in 2009 there is hereby 18 levied upon a11 of the taxable property in the City a direct 19 annual ad valorem tax which shall be spread upon the tax rolls 20 and collected with and as part of other general property taxes in 21 the City for the years and in the amounts as follpws: 22 23 24 25 26 27 28 29 30 31 32 33 34 Year of Tax Levy Year of Tax Collection Amount 2007 ��: $1,005,212 The tax levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged far the payment of the Bonds, will produce at least five percent (So) in excess of the amount needed to meet when due the principal 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 and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 35 21. General Obligation Pledqe. For the prompt and 36 full payment of the principal and interest on the Bonds, as the 37 same respectively become due, the full faith, credit and taxing 38 powers of the City shall be and are hereby irrevocably pledged. 39 If the balance in the special account relating to the Bonds in 40 the Debt Service Fund (as defined in paragraph 17 hereof) is ever 41 insufficient to pay all principal and interest then due on the 42 Bonds payable therefrom, the deficiency shall be promptly paid 43 out of any other funds of the City which are available for such 44 purpose, including the general fund of the City and the Debt 34bb04.2 3 $ �3�s 1 Service Fund and the special accounts therein, and such other 2 funds may be reimbursed with or without interest from the special 3 account in the Debt Service Fund relating to the Bonds when a 4 sufficient balance is available therein. 5 22. Certificate of Registration. The Director, Office 6 of Financial Services, is hereby directed to file a certified 7 copy of this Resolution with the officer of Ramsey County, 8 Minnesota, performing the functions of the county auditor (the 9 "County Auditor"), together with such other information as the 10 County Auditor shall require, and to obtain the County Auditor's il certificate that the Bonds have been entered in the Count�r 12 Auditor's Bond Register, and that the tax levy required by law 13 has been made. 14 23. Records and Certificates. The officers of the 15 City are hereby authorized and directed to prepare and furnish to 16 the Purchaser, and to the attorneys approving the legality of the 17 issuance of the Sonds, certified copies of all proceedings and 18 records of the City relating to the Bonds and to the financial 19 condition and affairs of the City, and such other affidavits, 20 certificates and information as are required to show the facts 21 relating to the legality and marketability of the Bonds as the 22 same appear from the books and records under their custody and 23 control or as otherwise known to them, and all such certified 24 copies, certificates and affidavits, including any heretofore 25 furnished, shall be deemed representations of the City as to the 26 facts recited therein. 27 24. Negative Covenants as to Use of Proceeds and 28 Improvements. The City hereby covenants not to use the proceeds 29 of the Bonds or to use the Improvements, or to cause or permit 30 them to be used, or to enter into any deferred payment 31 arrangements for the cost of the Improvements, in such a manner 32 as to cause the Bonds to be "private activity bonds�' within the 33 meaning of Sections 103 and 141 through 150 of the Code. The 34 City hereby covenants not to use the proceeds of the Bonds in 35 such a'manner as to cause the Bonds to be "hedge bonds" within 36 the meaning of Section 149(g) of the Code. 37 25. Tax=Exeml�t Status of the Bonds: Rebate: Election. 38 The Cit�r shall comply with requirements necessary under Che Code 39 to establish and maintain the exclusion from gross income under 40 Section 103 of the Code of the interest on the Bonds, including 41 without limitation requirements relating to temporary periods for 42 investments, limitations on amounts invested at a yield greater 43 than the yield on the Bonds, and the rebate of excess investment 44 earnings to the United States. 346604.2 3 9 \ �7� 1 The City expects that the two-year expenditure 2 exception to the rebate requirements may apply to the 3 construction proceeds of the Bonds. 4 If any elections are available now or hereafter with 5 respect to arbitrage or rebate matters relating to the Bonds, the 6 Mayor, Clerk, Treasurer and Director, Office of Financial 7 Services, or any of them, are hereby authorized and directed to 8 make such elections as they deem necessary, appropriate or 9 desirable in connection with the Bonds, and all such elections 10 shall be, and shall be deemed and treated as, elections of the 11 City. 12 26. No Desi�nation of 4ualified Tax-Exemot 13 Obligations. The Bonds, together with other obligations issued 14 by the City in 1997, exceed in amount those which may be 15 qualified as "qualified tax-exempt obligations" within the 16 meaning of Section 265(b)(3) of the Code, and hence are not 17 designated for such purpose. 18 19 20 21 22 23 24 25 26 27 27. Letter of Representations. The Letter of Representations for the Bonds is hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1996, by the City and received and accepted by The Depository Trust Company. So long as The Depository Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the City shall comply with the provisions of the Letter of Representations, as it may be amended or supplemented by the City from time to time with the agreement or consent of The Depository Trust Company. 28 28. Neqotiated Sale. The City has retained Springsted 29 Incorporated as an independent financial advisor, and the City 30 has heretofore determined, and hereby determines, to sell the 31 Bonds by private negotiation, all as provided by Minnesota 32 Statutes, Section 475.60, Subdivision 2(9). 33 34 35 36 37 38 39 40 41 42 43 44 29. Continuina Disclosure. The City is an obligated person with zespect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the ��Rule��), promulgated by the Securities and Exchange Commission (the '�Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the ��Undertaking") hereinafter described, to: A. Provide or cause to be provided to each nationally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository ("SID"), if any, for the State of Minnesota, in each case as designated by the Commission in accordance with 346604.2 m �� 3 S 1 the Rule, certain annual financial information and operating 2 data in accordance with the Undertaking. The City reserves 3 the right to modify from time to time the terms of the 4 Undertaking as provided therein. 5 B. Provide or cause to be provided, in a timely 6 manner, to (i) each NRMSIR or to the Municipal Securities 7 Rulemaking Board (��MSRB") and (ii) the SID, notice of the 8 occurrence of certain material events with respect to the 9 Bonds in accordance with the Undertaking. 10 C. Provide or cause to be provided, in a timely 11 manner, to (i) eaCh NRMSIR or to the MSRB and (ii) the SID, 12 notice of a failure by the City to provide the annual 13 financial information with respect to the City described in 14 the Undertaking. 15 The City agrees that its covenants pursuant to the Rule 16 set forth in thi5 paragraph 29 and in the Undertaking are 17 intended to be for the benefit of the Holders of the Bonds and 18 shall be enforceable on behalf of such Holders; provided that the 19 right to enforce the provisions of these covenants shall be 20 limited to a right to obtain specific enforcement of the City�s 21 obligations under the covenants. 22 The Mayor and Director, Office of Financial Services, 23 or any other officers of the City authorized to act in their 24 stead (the "Officers"), are hereby authorized and directed to 25 execute on behalf of the City the Undertaking in substantially 26 the form presented to the City Council, subject to such 27 modifications thereof or additions thereto as are (i) consistent 28 with the requirements under the Rule, (ii) required by the 29 Purchaser, and (iii) acceptable to the Officers. 41 97 30� 1 30. Severabilitv. If any section, paragraph or 2 provision of this resolution shall be held to be invalid or 3 unenforceable for any reason, the invalidity or unenforceability 4 of such section, paragraph or provision shall not affect any of 5 the remaining provisions of this resolution. 6 31. Headinas. Headings in this resolution are 7 included for convenience of reference only and are not a part S hereof, and shall not limit or define the meaning of any 9 provision hereof. Adoption Certffied by Council Secretary � App � -. -. . �-.. . _ • .. - ' - �i� t � � ,� `�� � '0 f't..i.�v� ' I . , : -./ . ��� f�/1�.������1 - � � Approved hy ayor for�ssion to Council By: � Adopted by Council: Date �` ��-� a� *� `� `�'� %7'3�S EXHIBITS Exhibit A - Proposals y� 3d� "���.�� OEPAflTMENTAOFFICE/COUNCIL DATE INItIATED � � � � Financial Services 3112f97 GREEN SHEE CONTACT PERSON & PHONE INITIAVDATE INRIAV�ATE O DEPAFi7MENTDIRE l e7I CITYCOUNCII Martha ICantorowicz 266-8836 A$SIGN �CIT'ATTORNEV OCITYCLERK NUMBEpiOP MUST BE ON CAUNC7L AGENDA 8Y (DA7E) qOUTIN6 � BUDGE7 DiREGTOR m FIN. & MG7: SERVICES DIR. March 26, 1997 ONDER �MAVOR(ORAS$ISTIWn � TOTAL # OF SIGNATURE PAGES _.�_ (CLIP A4L LOCATIONS FOR SIGNATURE) ACTION REQUESTED: This resolution accepYS Yhe winning proposal and awards the bid for the $2,450,000 G.O. Street Improvement Special Assessment Bonds Series 1997B. This is a competitive bond sale and the award is going to the bidder found to be the most advantageous to the City. RECOMMENDA710NS: Approva (A) or Reject (R) pERSONAL SEHVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _ CIVIL SERVICE GOMMISSION �� Has this pereonnrm ever worketl untler a corrtrect for this departmeM? _ CIB CAMMITTEE _ YES NO 2. Has this personflirm ever been a ciry employee? _ S7AFF — YES NO _ olsialCi COURi _ 3. Does this person/firm possess a skill not normally possessed by any curtent city employee? SUPPORTSWHIGHCOUNqLOBJECTIVE7 YES NO Explain all yes answers on seperate sheet and ettach to green sheet INITIATING PFOBLEM, ISSUE. OPPGIRTUNITY (Who, WhQt, When, Where. Why)' The bonds are for the purpose of financing certain street improvements within the City, and will be repaid by special assessments. ADVANTAGESIFAPPAOVED: Funds will be available for street improvements. DISADVANTAGES IF APPROVEO: None �ISADVANTACaES IF NOTAPPflOVED� Funds needed for certain street improvements will not be available. b3'SY3�� �i'�.r'�� ��.Y .<.: L 6 f:i,�i 1 TO7AL AMOUNT OF 7RANSACTION $ � Z �150 � OOO COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIIeG SOUBCE ACTIVITV NUMBER FINANCIALINFORM1SATION:(EXPLAIN) 97 �3�..� 1 2 3 means the certificates representing the Bonds so authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and � 4 WHEREAS, "Holder'� as used herein means 5 whose name a Bond is registered on the registrat 6 City maintained by the registrar appointed as p� 7 paragraph 8(the "Bond Registrar"); and � 8 WHEREAS, Rule 15c2-12 of the 9 Commission prohibits "participating un 10 or selling the Bonds unless the City u 11 certain continuing disclosure with res 12 WHEREAS, pursuant to M 13 475.60, Subdivision 2(9), public 14 to the Bonds if the City retains 15 and determines to sell the Bonds 16 City has instead authorized a co 17 publication of notice thereof as 18 and 19 WHEREAS, proposals f r 20 Springsted Incorporated pursu t 21 Terms of Proposal therein: person in books of the ed in r�Cties and Exchange �iters" from purchasing akes to provide to the Bonds; and nneso a Statutes, Section sale requirements do not apply an 'ndependent financial advisor by private negotiation, and the p titive sale without form of private negotiation; the Bonds have been solicited by to an Official Statement and 22 NOW, THEREFORE,� IT RESOLVED by the Council of the 23 City of Saint Paul, Minne ta, as follows: 24 25 26 27 28 29 30 31 32 33 34 35 36 37 1. Acce tance of Pro osal. The proposal of (the "Purchaser"), to purchase $2,450,000 General Obl'gation Street Improvement Special Assessment Bonds, Ser'es 1997B, of the City (the "Bonds", or individually a"Bond'), in accordance with the Terms of Proposal for the bond sale, t the rates of interest hereina£ter set forth, and to pay erefor the sum of $ , plus interest accrued settlement, is hereby found, determined and declared to be t most favorable proposal received and is hereby accepted, and t Bonds are hereby awarded to the Purchaser. The Director, Offic of Financial Services, or his designee, is directed to re ain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts . 38 2. Title; Oriainal Issue Date; Denominations; 39 Maturities The Bonds sha11 be titled "General Obligation Street 40 Improveme t Special Assessment Bonds, Series 1997B", shall be 41 dated Ap il 1, 1997, as the date of original issue and shall be 42 issued rthwith on or after such date as fully registered bonds. 43 The Bo s shall be numbered from R-1 upward. Global Certificates 3 9�7 3�� 1 2 3 4 5 6 7 E: 9 1� 11 12 13 14 shall each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on Marq�i 1 in the years and amounts as follows: / Year 1998 1999 2000 2001 2002 2003 Amount $350,000 125,0�0 100,000 100,000 100,000 100,000 15 For purposes of Minnesota Statutes, Section 5.54, the serial 16 maturities of the Bonds are combined with t e serial maturities 17 of the City's $17,500,000 General Obligati n Capital Improvement 18 Bonds, Series 1997A. 19 20 21 22 23 24 25 26 3. Puroose. The Bonds construction of various street im in the City, and any excess funds purpose permitted by law. The to which shall include all costs enu Section 475.65, is estimated to of the Bonds. Work on the Impr diligence to completion. shal provide funds for the rov ents (the �'Improvements") sh 11 be devoted to any other a cost of the Improvements, rated in Minnesota Statutes, at least equal to the amount ments shall proceed with due 27 4. Interest. The onds shall bear interest payable 28 semiannually on March 1 and September 1 of each year (each, an 29 "Interest Payment Date"), ommencing September 1, 1997, 30 calculated on the basis o a 360-day year of twelve 30-day 31 months, at the respectiv rates per annum set forth opposite the 32 maturity years as foll s: 33 34 35 36 37 38 39 40 41 42 Maturitv Year 1998 1999 2000 2001 2002 2003 , be 3466�4.2 Maturitv Year Interest Rate % 2�04 2005 2006 2007 2008 2009 Year 2004 $ 100 000 2Q05 10 ,0�0 2006 0,000 2007 100,000 2008 100,000 2009 1,075,000 Descrintion of the Global Certificates and Global 5vstem. Upon their original issuance the Bonds will in the £orm of a single Global Certificate for each � 9�-3aS 1 2 3 4 5 6 r� Improvement Desiqnation Page/Cherokee Lafond/Grotto ArlingtonJRUth Morgan/Edgecumbe TOTAL Amount $ 610,000 500,000 520,000 820.000 $2,450,000 Lew Years 1997-2016 for all Collection Years 1998-20�,,7 for a,l'1 8 The special assessments shall be such th i£ collected 9 in full they, together with estimated collections f other 10 revenues herein pledged for the payment of the B ds, will 11 produce at least five percent (5�) in excess of the amount needed 12 to meet when due the principal and interest pa ents on the Bonds 13 in every year except the final year (2009}. t the time the 14 assessments are in fact levied the City Cou il shall, based on 15 the then-current estimated collections of t e assessments, make 16 any adjustments in any ad valorem taxes re uired to be levied in 17 order to assure that the City continues t be in compliance with 18 Minnesota Statutes, Section 475.61, Sub vision 1. 19 19. Limit on S ecial Assess ents Pled ed. The City 20 Council hereby find�, determines and eclares that the payment of 21 the Bonds does not require the pledg of all the special 22 assessments which may be levied wit respect to the Improvements 23 identified in paragraph 18, and t t it is necessary, proper and 24 expedient to provide that payment and prepayments of special 25 assessments in excess of the deb service requirements of the 26 Bonds be put to use for other p rposes sooner than upon the 27 termination of the Debt Servic Fund. Only $2,450,000 original 28 principal amount of the speci 1 assessments (which amount is the 29 "Pledged Assessments"), and nterest thereon, recognized in 30 paragraph 18 of this Resol ion (of which $ ,000 are necessary 31 prior to their scheduled ceipt in order to pay debt service on 32 the Bonds on March 1, 199 ) are or shall be pledged to the 33 payment of the Bonds, a payments of, or with respect to, such 34 special assessments in xcess of the Pledged Assessments shall be 35 credited instead to a pecial account in the Capital Fund, and 36 used for the purpose f paying any additional costs of the 37 Improvements and th costs of other improvements approved by the 38 City, as follows: (a) the first $_,000 of all prepayments of 39 special assessmen s recognized in paragraph 18 shall be credited 40 to the Debt Serv'ce Fund, (b) thereafter until such time as the 41 special assessm nts from time to time outstanding equal in 42 original princ' al amount the Pledged Assessments or less, 43 prepayments o any of the special assessments recognized in 44 paragraph 18 shall be treated as prepayments of the portion of 45 the special assessments not pledged to the Bonds and shall be 46 credited i stead to said special account of the Capital Fund, and 37 �7�.30� 1 used as provided above, and (c) while the special assessments 2 from time to time outstanding equal in original principal amount 3 the Pledged Assessments or more, regular installment payments 4 made on the Pledged Assessments only (not all of the special 5 assessments) shall be credited to the Debt Service Fund, and 6 regular installment payments on that portion, if any, of the 7 remaining assessments in excess of the Pledged Assessments shall 8 be credited to said special account of the Capital Fund, and used 9 as provided above. 10 20. Tax Lew; Coveraae Test. If taxes are levied as 11 provided in the final part of paragraph 18, the tax levies shall 12 be irrepealable so long as any of the Bonds are outstand' g and 13 unpaid, provided that the City reserves the right and p er to 14 reduce the levies in the manner and to the extent per tted by 15 Minnesota Statutes, Section 475.61, Subdivision 3. 16 To provide moneys for payment of the pr'ncipal and 17 interest on the Bonds due to be paid in 2009 th e is hereby 18 levied upon all of the taxable property in the City a direct 19 annual ad valorem tax which shall be spread on the tax rolls 20 and collected with and as part of other gen al property taxes in 21 the City for the years and in the amounts s follows: 22 23 Year of Tax Lew Year of Amount 24 25 26 27 28 29 30 31 32 33 34 2007 20 The taY levies are suc that if collected in full they, together with estimated collect' ns of special assessments and other revenues herein pledged r the payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due the princip 1 and interest payments on the Bonds. The tax levies shal be irrepealable so long as any of the Bonds are outstanding nd unpaid, provided that the City reserves the right and p er to reduce the levies in the manner and to the extent permi ed by Minnesota Statutes, Section 475.61, Subdivision 3. 35 21. Gener Obli ation Pled e. For the prompt and 36 full payment of the rincipal and interest on the Bonds, as the 37 same respectively ecome due, the full faith, credit and taxing 38 powers of the Cit shall be and are hereby irrevocably pledged. 39 If the balance i the special account relating to the Bonds in 40 the Debt Servic Fund (as defined in paragraph 17 hereof) is ever 41 insufficient t pay all principal and interest then due on the 42 Bonds payable herefrom, the deficiency shall be promptly paid 43 out of any o er funds of the City which are available for such 44 purpose, in uding the general fund of the City and the Debt 346604.2 3 8 �� 85 E. SEVENTi9 PLACE SU37f f00 SA1M PAUL, MN 5 5 101-214 3 612-223-3000 FA7C:612-223-3002 � r7 — � c�5 SPRINGSTED PubGt Finana Advuors March 26, 1987 Mr. Joe Reid, Director Office of Financial Services City of Saint Paul 240 City Hali 15 West Kei{ogg Boufevard Saint Paui, MN 55102 Re: Recommendations for Award of City of Saint Paui's $17,500,000 General Obligation Capital Improvement Bonds {CIB), Series 1997A $2,450,000 General Obligation Street improvemeni Special Assessment Bonds, Series 19978 Dear Mr. Reid: This letter summarizes the results of the competitive bids opened at 10:30 this moming for these issues. Purpose of issues The purpose of this CiB issue is to provide funding for various ppitai improvements as part of the City's annuaf Capitai improvement Program, to inciude partial funding for the pubiic costs associated with the Science Museum and the Wabasha Bridge. The purpose of the Street issue is to fund portions of the City's annuai street improvement program. Tax-Exempt Interest Rate Market Since the first of the year, tax-exempt interest rates have moved in a relatively 6ght band, varying about 2/10's of 1% over the tertn: January 2, 1997 the SBl was 5.70°l0; the fow point was February 20, 1997 when the B8f was 5.56%. March 20, 1997 (the most recent date) the BBI was 5.78%. UUithin the last month, the numbers indicate the market movement has been up, with most such movement occurring in late February. The market is cuRenUy Iooking for bonds since the supply is low, which helped in this sale. SAINT PAUL, MN • MlN�JEAPOI�S, M,�' • BROOF�7E(D, WI • OVERL4ND PARK, KS • R:i4LL�GfON, DC • IOWA CIIY, IA City of Saint Paul March 26, 1997 Page 2 �� ,� 05 Sale Resuits The City received nine bids on the C1B sale. The bids were as follows: Rank Sidder Piper .laffray Hutchinson Shockey (Chicago) Merrili Lynch (Califomia) Dain Bosworth Cronin � Co. First of America (Chicago) Raymond James (Florida) Interstate Johnson (Georgia) Wittiam Btair (Chicago) TIC % 4.9497% 4.9950% 4.9988% 4.9994% 5.0251 % 5.U297% 5.0354°!0 5.0718% 5.0879% The lowest bid of 4.9497% was submitted by Piper Jaffray, with the next lowest bid from Hutchinson Shockey (Chicago) at 4.9950�0. The City received five bids on the street issue. The bids were as follows: Rank Bidder Piper Ja�fray Gronin 8� Go Dain Bosworth Raymond James William Blair TIC (%) 5.2181 °!o 5.2497% 5.2577% 5.3092% 5.3458% The lowest bid of 5.2181% was submitted by Piper Jaffray, with the next lowest bid from Cronin & Co (Twin Cities) at 5.2497%. The nine bids received on the CIB issue has o�ty been matched o�ce (nine b+ds were aiso received in 1995j by the City since 1385. The CIB issue received broad nationai attention with underwriters bidding from Chicago (3), Califomia (1), Florida (1), and Georgia (1). We require bidders to submit their bids on a"True Interest Rate" (TIC) basis, so as to reflect the present value of their bids and thereby ensure the City award based on the towest cost to the City. We have enGosed bid tabulation forms for each issue summarizing the bid specifics and composition of each underwriting syndicate. Recommendation We recommend awards of sale of the CIB issue and the Street issue to Piper Jaffray. Basis of Recommendation The interest rates received on each issue reflect aggressive bidding in today's market and compate we{{ with the City's recent historical experience. Focusing on the 1997 Cf B issue with its TIC of 4.94%, the City's experience for its GIB issues in 1995 and 1996 respectively of 5.14% and 4.81%. Our estimate of the City's interest rate on the CIB issue had the issue soid in eariy February was 4.92°k. We have compared this issue against other issues soid thus far City of Sair�t Paul ��-� O S March 26, 1997 Page 3 this week and the City has received lower i�te�est rates than these issues. We also monitor each of the City's issues against a daily national interest rate index, Deiphis-Hanover. These rates are at w slighUy better than the DelphisHanover "AAA"-rated interest rates. Historicaily, the City's issues seil beiween the Delphis Hanover "AA-to-AAA" levels, a performance matched by these issues. Yesterday, the Federal Reserve took action on short-tertn interest rates. Our analysis shows that the market had anticipated this action over the last few weeks and had already factored in an adjustrnent Credit Rating The City received three ratings of "Aa2lAA+lAA+^ from Moodys Investors Service, Standard & Poors and Fitch Investors Service, respectivety. The City put together an outstanding rating presentation for each agency as part of this saie process. Each agency noted numerous areas of improvement. We would be pieased to respond to the comments of the rating agencies resulting from this process. We are again appreciative of the opportunity to be of service to the City. V1/e weicome any questions or comments on this repost. Respectfuliy, a �,,�� ` �t-� - �,�1��d�, David N. MacGillivray / Principal Director of Project Management ldmf Enclosures �,� _�os W � N V p C N � t 0 � � � o m m A c � c � CN� R C Q � (p � O `o a Y � � N �� 0000000e Z r�O�I O� N N� ' 8� a N V V C-,In IA � In In � ��e�`� � � �� ���� � ���� = o �a��3eaaeae�aa�-a°a�a°��� �:�n in �n in �n in o�n �n �n o�n �n p � �ncei�i<onmrno��acnvc in � � O O - d .S .� 17 '7 V V' V V' C �fJ ip 1n 1[j 1n N� 1D ID lri � �U�a y � - .. � - � in c ,'� � . - . _ - . . . t ° r0 �i m�'�� ¢ R 2 y � o� o d° o 0 0 � � o 0 0 0 0 3e N�O O O O O O f L Q N i n u 1 O 1 n O F C NCti)t41�O��ZZ� N(7 V' � ln QU NUQ C Q T7Q' V QQ Ntn NIn�1p � � C� Q7 i - _, N O � � a � e�N 3� ¢ �d�� 2 � � � - o 0 0 3� o o � o 0 0 0 0 Q { nN V �i�O�Z�mOO� p C {`�-Q'd'RQ V V Q 1n Inln N � �� I � M t ��(� Q 05 Q � 0 0 o a°000000000 0 0 00 v�,n,n�r,�s¢¢¢¢s¢oin o ¢s m�n�ot�ZZZ22ZZZ?Q���ZZ � � �<�� ����� � ������ N 0 Y � _ � N V � � � - - M � � � Q O N Z y + 2� 3� 2� 2� b� 2� 2� 2� 2� D� 3� 2� �a�. N 1110 ��In In 000000 Of N� C Q C 0 W Q lq tD I� t0 6f O O � N � W 7 Q.�. � V`tl' V Q aT 'Q V IA In In IN N p mSII Q �������-».��.� �p �pCU 2e2e3e2e2e2eZe2e2�2e I i 000000in�noo me�v�n�cr.nmoo gt vvvvv�avviriui 1 I ri N t� m OJ O � N M V t(1 (O f� LO OI O � N C� C In SO f� � �m�88888S8oSSosbsosss � N N(V N N N N N N N N N N N N N N N �� 85 E. SEVENTH PIACE, S[I17E 100 SAI�7TPAUL,MN SSI01-2143 612-223-3000 FAX:61 2-2 2 3 3002 �� - SPRINGSTED Public Finmue Advisors � $17,500,000 CiTY OF SAIlVT PAUL, MIlVNESOTA GENERAL OBLIGATION CAPTfAL IMPROVEMENT BONDS, SERIES 1997A BQOK EIVTRY ONLi� AWARD: PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MII,LER & SCHROEDER FINANCIAL, INC. AND ASSOCIATES SALE: 3.85 % 4.30 % 4.40% 4.50 % 4.60 % 4.70% 4.75 % 4.85 % 5.00% Interest Net Interest TY�ue Interest Bidder Rates Price Cocr Rate PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MILLER & SCHROEDER FINANCIAL, INC. John G. Kinnazd & Company Incorporated Juran & Moody, a division of Miller, Johnson & Kuehn,Inc. The GMS Group Dougherty Dawkins, Inc. Peterson Financial Corporation HUTCHINSON,SHOCKEY,ERLEY & COMPANY MORGAN KEEGAN & CO., INC. Mesirow Financial Inc. SARJT PAUL, MN � MINNEAPOLIS, MN March 26, 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 Moady's Rating: Aa2 Standard & Poor's Rating: AA+ Fitch's Rating: AA+ $17,354,238.25 $5,008,885.71 4.949790 4.50% 1998 $17,408,826.50 $5,060,258.92 4.75% 1999-2003 4.80% 2004 4.90% 2005 5.00% 2006 5.10% 2007 BROOKF[ELD, WI � OVERLAND PARK. KS � WASH7NGCON, DC � lOWA CiCY, IA 4.9950% (Continued) Intecest Net Interest True Interest Bidder Ra es Price (' Rate MERRILL LYNCH & CO. Securities Corporation of Iowa DAIN BOSWORTH INCORPORATED PRUDENTIAL SECURITIES, INC. ABN AMRO SECURTTIES (USA) INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC, OPPEM-IEIMER & CO., INC. PAINEWEBBERINCORPORATED DEAN WITTER REYNOLDS INCORPORATED CRONIN & COMPANY, INCORPORATED SMITH BARNEY FIRST OF AMERICA SECUI2ITIES RAYMOND JAMES & ASSOCIATES INTERSTATE/JOHNSON LANE CORP 4.00% 1998 4.50°,b 1999-2001 4.60% 2002 4.70 % 2003 4.80 % 2004 5.00% 2005-2007 4.50 % 1998-2000 4.60% 2001 4.70% 2002 5.00% 2003-2007 3.95% 4.30% 4.50 % 4.60% 4.65 % 4.75 % 4.85 % 4.90 % 5.00 % 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 4.00 % 4.30 % 4.45 % 4.60% 4.70 % 4.80% 4.90� 5.00 % 1998 1999 2000 2001 2002 2003 2004 20p5-2007 4.00% 1998 4.375 % 1999 4.75 % 2000 4.80 %a 200I 5.00% 20p2-2006 5.10% 2007 4.75% 1998-?A02 4.85% 2003 4.90 % 2004 5.00% 2005 5.10°k 2006 5.125 % 2007 517,348,556.25 517,415,525.50 $I7,327,250J5 $17,347,955.50 $17,436,6I9.50 $17,398,150.00 $5,056,214.58 $5,067,368.25 $5,078,182.58 $5,087,003.85 $5,107,254.15 $5,136,369.27 4.9988 % 4.9994 �7 5.0251 % 5.0297�/ 5.035490 SA7I8 `70 (Continued) ci� - 3n5 Interest Net Interest True Interest Bidder Rates Price ost Rate WILLIAM BLAIR & COMPANY ROBERT W. BAIRD & COMPANY, INCORPORATED 3.80% 4.35% 4.55 % 4.65 % 4.75% 4.80 % 4.90 % 5.00 % 5.10% REOFFERING 5CHEDULE OF THE PURCHASER Rate Year NRO Paz 4.45 % 4.55 % 4.65 % 4.75 % 4.80 % 4.90 % Paz 5.10% Yield 3.85% 4.30 % 4.40 % 4.50% 4.60 % 4.70 % 4.75 % 4.85% 5.00 % 5.00 % 1998 1999 2000 2001 2002 2003 2004 2005-2006 2007 1998 1999 2000 2001 2002 2003 2004 zoos 2006 2007 $17,325,162.00 $5,141,816.13 5.0879`7a BBI: 5.78% Average Maturity: 5.80 Yeus �� 8i E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN SS10I-2I43 612-223-3000 FAX: 612-223-3002 � � , �os SPRINGSTED Public Fi�uaice Advisors $2,450,000 CPl'P OF SAINT PAUL, MINNESOTA GENERAI, OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS, SERIES 1997B BOOK ENTRY ONLI� AWARD: PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. 1�IILLER & SCHROEDER FINANCIAL, INC. AND ASSOCIATES SALE: March 26, 1997 Moody's Rating: Aa2 Standard & Poor's Rating: AA+ Fitch's Rating: AA+ Interest Net Interest True Interest Bidder Rates Price ost Aate PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MILLER & SCHROEDER FINANCIAL, INC. John G. Kinnazd & Company Incorporated Juran & Moody, a division of Miller, Iohnson & Kuehn,Inc. The GMS Group Dougherty Dawkins, Inc. Peterson Financial Corporation CRONIN & COMPANY, INCORPORATED SMITH BARNEY 4.30% 4.45% 4.55% 4.65 % 4.75 % 4.80% 4.90 % 5.00 % 5.10% 5.20 % 1998-1999 2000 2001 2002 2003 2004 2005 2006-2007 2008 2009 $2,425,667.50 4.00 °k 430% 4.50 % 4.60% 4.65% 4.75 % 4.85 % 4.90 % 5.00 % 5.15 % 5.25 % 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 2008 2009 $2,425,735.50 $1,018,1�2.08 $1,024,780.13 5.2181 % 5.2497 % (Continued) SAMT PAUG MN � M[NNEAPOLIS, MN � BROOKFIELD, WI � OVERLAND PARK, KS � WASHINGTON. DC �[OWA C17Y. IA Interest Net Interest True Interest Bidder Rates Price ('n� Rare DAIN BOSWORTH INCORPORATED PRUDENTIAL SECURITIES, INC. ABN AMRO SECURITIES (USA) INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. OPPENHEIMER & CO., INC. PAINEWEBBERINCORPORATED DEAN WITTER REYNOLDS INCORPORATED RAYMOND JAMES & ASSOCIATES WILLIAM BLAIR & COMPANY ROBERT W. BAIRD & COMPANY, INCORPORATED 4.50 % 4.60 % 4.70 % 4.80 % 4.90 % 5.00 % 5.10 % 5.25 % 4.00 % 430% 4.60 % 4.75 % 4.80� 4.90 % 5.0p% 5.10% 5.20% 5.25 % 5.30 % 3.80% 4.35 % 4.55 % 4.65 % 4.75 % 4.85 % 4.90 % 5.00 % 5.10% 5.20% 5.25 % 5.35 % 1998-2000 Z001 2002 2003 2004 2005-2006 2007-2008 2009 1998 1999 2000 2001 2002 2003 2004 2005-2006 2007 2008 2009 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $2,428,288.00 $2,428,941.75 $2,425,512.75 REOFFERING SCHEDULE OF THE PURCHASER 0 430% 430�0 4.45 % 4.55 % 4.65 % 4.75 % 4.80 % 4.90 % 5.00 % 5.00 % 5.10% 5.20 % � 1998 1999 2000 2001 2002 2003 2004 20p5 2006 2007 2008 2009 � NRO Paz Paz Paz Paz Pu Paz Paz Paz 5.10% 5.15 % 5.25 % $1,026,435.96 $2,037,Q70.75 $1,043,820.58 5.2577 % 53092% 5.3458 % BBI: 5.78 ° ,6 Average Maturity: 8.00 Yeazs �e�d �dloa � �_� � � I � � � � �� � � � � � � � � � �., � �: � � � � i�l � � i� v .�y � � ...y A o ° � �/ J � � � � V � O . `�1� � � � � � � � _�. � �:a��7 �&� ';aA�e �.bw we8�a�� ou �aaiao b� 'r,� 3�0 E� , � 17 n �0 � O V O �.G � 044 �' �t{ L{Q N� p� 6 � 9 O3 � 'a ' 'S c �,'a 6 � w � a N s° � a ^ . u 4� y u n w a��n _� O Y �(A �.. p a �^G O ��'S w n'a :� " 9 C, �� u�3 C-� q V ; M a�,'mu�° ��� o e0 �� G''S �2 C c =uc3 y�' u u'�oEcT�'�ie+� q �v��a Ua�+'�a ��^u•� 'e..c E e<o C=a �a.... , u�•'g�N�o��'�9 Q alaax.�. �^L°wu o�n an��g� >.�v . �L'U'�e� �.'n•^•u'��'.�w` 5 ' o °AL `°� �>° $ � «��i�'»g�a� '�g ' , ' , ' ,yqyqyq ppp �B `� „���=�-E s• �� �� 0 1� u����rop `s i� � O F����b ns`.7 laE�q�a�C u '`cj0.�p'3d e ? � 7 C^ 3 u �i ~ n � 3 U y S'� 'O Y � 00 �� n O i L.7 � w �o + au a° � = °� 9� .^ p� � v°'.`c''v" � 2aa� w`'Oa O °°`=,o� � J�wG� .L CC�yk...• • p�c ��a��.�SCd�O����q � y �}��. { c y ��yFY��CMU �'4YOEY^�COUg`a9{�� ]� Y � y._Cpp q 7�� P fL ��� O� +� b(f � � N�•��'O jC x +•> u 3'f'� C a L y h'd V1 Y 0. 4 �� N � U � �. d11 a 4. �c 00� J " w E" 3 t..� V a a Q C N� a 4wNC� G.�.� O.:.S �u. �RGKA'�o�Z �.�bac �a ` ���'nc c�� � 00 T u !0 a� . bp'� i 00 Q � = een °a'_o, b.ta _�a7J ` � a c;; � Yiv�.- � y�q u .�iJ� �p9 e w =. eri g � -; x � 3 �i� 9�3�5 �°.'a� " b S.-.h �( $ � ° e a n a UD a. uo.. w�=� a y�,��� �°� �9��� S �, ° ���i..5'1 � d�>uo� 3 �=��a� �08���.°�� ,���Eq� � '�����Y a n=a�� � s ° s g�� - �c� �8.�����ao�.0.s�sh� 8 u e (/! ��r 8 �- b a��.. W m � � a ��FO ya'-.CF� O F�-�i 6 O.Q. 9� R w � A V i 6'�] .Y .°. $ C •; . �Qtl� � �'.�`o w � ��� �9 �Q '�i � .Q 9 � V B� � p � �a� O.� ��_�� s� u ���a� e fl,aa.3 "����.� Q ����°�a J �. � � � R .�,������ �.�-� ��� Y .9 S�� � n a � u u � u�� 6 g3'r � �iw y Q � 6 O yZ'Ly b �a a ,q9 e « � �� � ' = ..Y•= � °��� Q C G C e� 5� ��T�� ��� B�S�n a� � °' a : `•''.� ° 9� � e < � ,.u. 5 9 `� u �,�o�3e u2 �� °or tl ;o��� w� ��+� ' � � PG�P� a '�+.� e P � O � � �i .� � y �' •� • w �y ��r i � p O -Y txs'-.�U �Ge� 'Y'Y.�.a�0 eu tie0. � c�>•�',��7'" � C u � N Q�� 7� �,� yy A i � O O � • V ti a a a V p� w� Y P C� y" ��,.'$a `���o� q w v= p � p 5 u g K O Y � ,VO I� g� Y�V� 4 � ST O a M< U nF�T������ pp��� T 9 ��`" E ���`���".� �' ! � i f � � n4 — % 6 e . i t � R�.z.�..� �� 3��^i a 3'7 � 3 8' n a,.. -�t��(a7 PAUL, MIN Preserted By Referred To Councii File # � �� Green Sheet # —` �� Committee: Date ��/ 1 2 3 4 5 ACCEPTING PROPOSAL ON SALE OF $2,450,000 GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS, SERIES 1997B, PROVIDIY3G FOR THEIR ISSUANCE, AND LEVYIAIG A TAX FOR THE PAYMENT THEREOF 6 WHEREAS, the Director, Office of Financial Services, 7 has presented proposals received for the sale of $2,450,000 8 General Obligation Street Improvement Special Assessment Bonds, 9 Series 1997B (the "Bonds"), of the City of Saint Pau1, Minnesota 10 (the "City"}; and 11 WHEREAS, the proposals set forth on Exhibit A attached 12 hereto were received pursuant to the Terms of Proposal at the 13 offices of Springsted Incorporated at 10:30 A.M., Central Time, 14 this same day; and 15 WHEREAS, the Director, Office of Financial Services, 16 has advised this Council that the proposal of 17 � � ���.�,i ,,L/�G_ was found to be the most advantageous 18 an has recomm�that said proposal be accepted; and 19 WHEREAS, the proceeds of the Bonds will finance certain 2o street improvements to be specially assessed, for which the City 21 is proceeding pursuant to its Charter and not Minnesota Statutes, 22 Chapter 429, with any excess to be used for any other purpose 23 permitted by law; and q7 3�� 1 WHEREAS, the City has heretofore issued registered 2 obligations in certificated form, and incurs substantial costs 3 associated with their printing and issuance, and substantial 4 continuing transaction costs relating to their payment, transfer 5 and exchange; and 6 WHEREAS, the City has determined that significant 7 savings in transaction costs will result from issuing bonds in 8 "global book-entry £orm", by which bonds are issued in 9 certificated form in large denominations, registered on the books 10 of the City in the name of a depository or its nominee, and held il in safekeeping and immobilized by such depository, and such 12 depository as part of the computerized national securities 13 clearance and settlement system (the "National System") registers 14 transfers of ownership interests in the bonds by making 15 computerized book entries on its own books and distributes 16 payments on the bonds to its Participants shown on its books as 17 the owners of such interests; and such Participants and other 18 banks, brokers and dealers participating in the National System 19 will do likewise (not as agents of the City) if not the 20 beneficial owners of the bonds; anci 21 WAEREAS, "Participants" means those financial 22 institutions for whom the Depository effects book-entry transfers 23 and pledges of securities deposited and immobilized with the 24 Depository; and 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 WHEREAS, The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, or any of its successors or successors to its functions hereunder (the "Depository"), will act as such depository with respect to the Bonds except as set forth below, and the City has heretofore delivered a letter of representations (the "Letter of Representations") setting forth various matters relating to the Depository and its role with respect to the Bonds; and WHEREAS, the City will deliver the Bonds in the form of one certificate per maturity, each representing the entire principal amount of the Bonds due on a particular maturity (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 Depository book-ent exchanged registered 346604.2 date for WHEREAS, the City will be able to replace the or under certain circumstances to abandon the "global ry form" by permitting the Global Certificates to be for smaller denominations typical of ordinary bonds on the City's bond register; and "Replacement Bonds" 2 �� 3QS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 means the certificates representing the Bonds so authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and WHEREAS, "Holder" as used herein means the person in whose name a Bond is registered on the registration books of the City maintained by the registrar appointed as provided in paragraph 8 (the "Bond Registrar"); and WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits "participating underwriters" from purchasing or selling the Bonds unless the City undertakes to provide certain continuing disclosure with respect to the Bonds; and WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), public sale requirements do not apply to the Bonds if the City retains an independent financial advisor and determines to sell the Bonds by private negotiation, and the City has instead authorized a competitive sale without publication of notice thereof as a form of private negotiation; and 19 WHEREAS, proposals for the Bonds have been solicited by 20 Springsted Incorporated pursuant to an Official Statement and 21 Terms of Proposal therein: 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of Piper Jaffray, Inc. (the "PUrchaser"), to purchase $2,450,000 General Obligation Street Improvement Special Assessment Bonds, Series 1997B, of the City (the "Bonds", or individually a "Bond"), in accordance with the Terms of Proposal for the bond sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $2,425,667.50, 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, Office of Financial Services, or his designee, is directed to retain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts. 2. Title; Original Issue Date: Denominations; Maturities. The Bonds shall be titled "General Obligation Street Improvement Special Assessment Bonds, Series 1997B", shall be dated April 1, 1997, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R-1 upward. Global Certificates 346604.2 q 7 3czS 1 2 3 4 5 6 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 shall each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on March 1 in the years and amounts as follows: Year Amount 1998 1999 2000 2001 2002 2003 For purposes maturities of of C.he City' s Bonds, Series Year Amount $350,000 2004 $ 100,000 125,000 2005 100,000 100,000 2006 100,000 100,000 2007 100,000 100,000 2008 100,000 100,000 2009 1,075,000 of Minnesota Statutes, Section 475.54, the serial the Bonds are combined with the serial maturities $17,500,000 General Obligation Capital Improvement 1997A. 3. Pur�ose. The Bonds shall provide funds for the construction of various street improvements (the "Improvements") in the City, and any excess funds shall be devoted to any other purpose permitted by law. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 4. Interest. The Bonds shall bear interest payable semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 1997, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year 1998 1999 2000 2001 20�2 2003 Interest Rate Maturit� Year Interest Rate 4.30a 4.30 4.45 4.55 4.65 4.75 2004 2005 2006 2007 2008 2009 4.80 4.90 5.00 5.00 5.10 5.20 40 5. Description of the Global Certificates and Global 41 Book-Entry System. Upon their original issuance the Bonds will 42 be issued in the form of a single Global Certificate for each 346604.2 9`7 3�� 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 maturity, deposited with the Depository by the Purchaser and immobilized as provided in paragraph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respective interests in the Bonds except as provided in paragraph 6. Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent transfers of beneficial ownership) of interests in the Global Certificates will be reflected by book entries made on the records of the Depository and its Participants and other banks, brokers, and dealers participating in the National System. `Phe 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 G1oba1 Certificates, and the Depository according to the laws and rules governing it will receive and forward payments on behalf of the beneficial owners of the Global Certificates. Payment of principal of, premium, if any, and interest on a Global Certificate may in the City�s discretion be made by such other method of transferring funds as may be requested by the Holder of a Global Certificate. 6. Immobilization of Global Certificates bv the Deoositorv: Successor Depository: Replacement Bonds. Pursuant to the request of the Purchaser to the Depository, which request is required by the Terms of Proposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository. The G1oba1 Certificates sha11 be in typewritten form or otherwise as acceptable to the Depository, shall be registered in the name of the Depository or its nominee and shall be held immobilized from circulation at the offices of the Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nominee wi11 be the sole holder of record of the Global Certificates and no investor or other party purchasing, selling or otherwise transferring ownership of interests in any Bond is to receive, hold or deliver any bond certificates so long as the Depository holds the Global Certificates immobilized from circulation, except as provided below in this paragraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transferred or exchanged except: (i) Upon registration of transfer of ownership of a Global Certificate, as provided in paragraph 12, 346604.2 5 97 �3ds 1 (ii) To any successor of the Depository (or its 2 nominee) or any substitute depository (a "substitute 3 depository") designated pursuant to clause (iii) of this 4 subparagraph, provided that any successor of the Depository 5 or any substitute depository must be both a"clearing 6 corporation" as defined in the Minnesota Uniform Commercial 7 Code at Minnesota Statutes, Section 336.8-102, and a 8 qualified and registered "clearing agency" as provided in 9 Section 17A of the Securities Exchange Act o£ 1934, as 10 amended, 11 (iii) To a substitute depository designated by and 12 acceptable to the City upon (a) the determination by the 13 Depository that the Bonds shall no longer be eligible for 14 its depository services or (b) a determination by the City 15 that the Depository is no longer able to carry out its 16 functions, provided that any substitute depository must be 17 qualified to act as such, as provided in clause (ii) o£ this 18 subparagraph, or 19 (iv) To those persons to whom transfer is requested 20 in written transfer instructions in the event that: 21 (a) the DeposiCory shall resign or discontinue 22 its services for the Bonds and the City is unable to 23 locate a substitute depository within two (2) months 24 following the resignation or determination of non- 25 eligibility, or 26 (b) upon a determination by the City in its sole 27 discretion that (1) the continuation of the book-entry 28 system described herein, which precludes the issuance 29 of certificates (other than Global Certificates) to any 30 Holder other than the Depository (or its nominee), 31 might adversely affect the interest of the beneficial 32 owners of the Bonds, or (2) that it is in the best 33 interest of the beneficial owners of the Bonds that 34 they be able to obtain certificated bonds, 35 in either of which events the City shall notify Holders of 36 its determination and of the availability of certificates 37 (the "Replacement Bonds") to Holders requesting the same and 38 the registration, transfer and exchange of such Sonds will 39 be conducted as provided in paragraphs 9B and 12 hereof. 40 In the event of a succession of the Depository as may 41 be authorized by this paragraph, the Bond Registrar upon 42 presentation of Global Certificates shall register their transfer 43 to the substitute or successor depository, and the substitute or 44 successor depository shall be treated as the Depository for all 346604.2 6 97 �3d� purposes and functions under this Representations shall not apply to depository unless the City and the depository so agree, and a similar resolution. The Letter of a substitute or successor substitute or successor agreement may be entered into. 7. Redemption. � 10 11 12 13 14 15 16 17 18 19 20 (a) Optional Redemption; Due Date. All Bonds maturing after March 1, 2005, 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 Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof oalled for redemption sha11 be due and payable on the redemption date, and interest thereon sha11 cease to accrue from and after the redemption date. 21 (b) Notation on Global Certificate. Upon a reduction in 22 the aggregate principal amount of a Global Certificate, the 23 Holder may malce a notation of such redemption on the panel 24 provided on the Global Certificate stating the amount so 25 redeemed, or may return the Global Certificate to the Bond 26 Registrar in exchange for a new Global Certificate authenticated 27 by the Bond Registrar, in proper principal amount. Such 28 notation, if made by the Holder, shall be for reference only, and 29 may not be relied upon by any other person as being in any way 30 determinative of the principal amount of such Global Certificate 31 outstanding, unless the Bond Registrar has signed the appropriate 32 column of the panel. 33 (c) Selection of ReAlacement Bonds. To effect a partial 34 redemption of Replacement Bonds having a common maturity date, 35 the Bond Registrar prior to giving notice of redemption shall 36 assign to each Replacement Bond having a common maturity date a 37 distinctive number for each $5,000 of the principal amount of 38 such Replacement Bond. The Bond Registrar shall then select by 39 lot, using such method of selection as it shall deem proper in 40 its discretion, from the numbers so assigned to such Replacement 41 Bonds, as many numbers as, at $5,000 for each number, shall equal 42 the principal amount of such Replacement Bonds to be redeemed. 43 The Replacement Bonds to be redeemed shall be the Replacement 44 Bonds to which were assigned numbers so selected; provided, 45 however, that only so much of the principal amount of each such 46 Replacement Bond of a denomination of more than $5,000 shall be 346604.2 7 ����5 1 redeemed as shall equal $5,000 for each number assigned to it and 2 so selected. 3 (d) Partial Redemt�tion of Replacement Bond. If a 4 Replacement Bond is to be redeemed only in part, it shall be 5 surrendered to the Bond Registrar (with, if the City or Bond 6 Registrar so requires, a written instrument of transfer in form 7 satisfactory to the City and Bond Registrar duly executed by the 8 Holder thereof or his, her or its attorney duly authorized in 9 writing) and the City shall execute (if necessary) and the Bond 10 Registrar shall authenticate and deliver to the Holder of such 11 Replacement Bond, without service charge, a new Replacement Bond 12 or Bonds of the same series having the same stated maturity and 13 interest rate and of any authorized denomination or 14 denominations, as requested by such Holder, in aggregate 15 principal amount equal to and in exchange for the unredeemed 16 portion of the principal of the Bond so surrendered. 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 (e) Request for RedemAtion. The Bond Registrar shall ca11 Bonds for redemption and payment as herein provided upon receipt by the Bond Registrar at least £orty-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 f.S.] 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: 35 36 37 3S 39 40 41 42 346604.2 (i) The redemption date; (ii) The redemption price; (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, 0 �� 3S 1 and that interest thereon sha11 cease to accrue 2 from and after said date; and 3 (v) The place where such Bonds are to be surrendered 4 for payment of the redemption price (which shall 5 be the office of the Bond Registrar}. 6 (g) Notice to Depositorv. Notices to The Depository Trust 7 Company or its nominee shall contain the CUSIP numbers of the 8 Bonds. If there are any Holders of the Bonds other than the 9 Depository or its nominee, the Bond Registrar shall use its best 10 efforts to deliver any such notice to the Depository on the 11 business day next preceding the date of mailing of such notice to 12 all other Holders. 13 8. Bond Registrar. First Trust National Association, 14 in Saint Paul, Minnesota, is appointed to act as bond registrar 15 and transfer agent with respect to the Bonds (the "Bond 16 Registrar��), and shall do so unless and until a successor Bond 17 Registrar is duly appointed, a11 pursuant to any contract the 18 City and Bond Registrar shall execute which is consistent 19 herewith. A successor Bond Registrar shall be an officer of the 20 City or a bank or trust company eligible for designation as bond 21 registrar pursuant to Minnesota Statutes, Chapter 475, and may be 22 appointed pursuant to any contract the City and such successor 23 Bond Registrar shall execute which is consistent herewith. The 24 Bond Registrar shall also serve as paying agent unless and until 25 a successor paying agent is duly appointed. Principal and 26 interest on the Bonds shall be paid to the Holders (or record 27 holders) of the Bonds in the manner set forth in the forms of 28 Bond and paragraph 14 of this resolution. 29 9. Forms of Bond The Bonds shall be in the form of 30 Global Certificates unless and until Replacement Bonds are made 31 available as provided in paragraph 6. Each form of bond may 32 contain such adclitional or different terms and provisions as to 33 the form of payment, record date, notices and other matters as 34 are consistent with the Letter of Representations and approved by 35 the City Attorney. 36 A. Global Certificates. The Global Certificates, 37 together with the Certificate of Registration, the Register of 38 Partial Payments, the form of Assignment and the registration 39 information thereon, shall be in substantially the following form 40 and may be typewritten rather than printed: 346604.2 9 9� �3�-� 2 3 4 5 6 R- 7 8 9 INTEREST 10 RATE il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BOND, SERIES 1997B MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP March 1, REGISTERED OWNER: PRINCIPAL AMOTJNT: DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "ISSUer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above or on the certificate of registration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the 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, 1997, 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 in , Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer; provided, however, that upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion be paid without presentation of this Bond, which payment shall be received no later than 2:30 p.m., Eastern time, and may make a notation on the panel provided herein of such redemption, stating April l, 1997 346604.2 1 0 q� 3�S 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 the amount so redeemed, or may return the Bond to the Bond Registrar in exchange for a new Bond in the proper principal amount. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being in any way determinative of the principal amount of this Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 2:30 p.m., Eastern time, to Che person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "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 sha11 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. Date of Pavment Not Business Dav. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New York, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Redemotion. All Bonds maturing after March 1, 2005, are prepayment at the option of the Issuer day thereafter at a price of par plus Redemption may be in whole or in part prepayment. If redemption is in part, unpaid may be prepaid in such order of amount per maturity as the City shall of the Bonds having a common maturity 34b604.2 of this issue (the "Bonds") subject to redemption and 11 on such date and on any accrued interest. of the Bonds subject to those Bonds remaining maturity and in such determine; and if only part date are called for 97��5 1 prepayment, 2 principal. 3 be due and 4 shall cease this Bond may be prepaid in $5,000 increments of Bonds or portions thereof called for redemption shall payable on the redemption date, and interest thereon to accrue from and after the redemption date. 5 Notice of Redemption. Mailed notice of redemption 6 shall be given to the paying agent (if other than a City officer) 7 and to each affected Holder of the Bonds. In the event any of 8 the Bonds are called for redemption, written notice thereo£ will 9 be given by first class mail mailed not less than thirty (3�) 10 days prior to the redempCion date to each Holder of Bonds to be 11 redeemed. In connection with any such notice, the "CL3SIP" 12 numbers assigned to the Bonds shall be used. 13 Renlacement or Notation of Bonds after Partial 14 Redemption. Upon a partial redemption of this Bond which results 15 in the stated amount hereof being reduced, the Holder may in its 16 discretion make a notation on the panel provided herein of such 17 redemption, stating the amount so redeemed. Such notation, if 18 made by the Holder, shall be for reference only, and may not be 19 relied upon by any other person as being in any way determinative 20 of the principal amount of the Bond outstanding, unless the Bond 21 Registrar has signed the appropriate column of the panel. 22 Otherwise, the Holder may surrender this Bond to the Bond 23 Registrar (with, if the Issuer or Bond Registrar so requires, a 24 written instrument of transfer in form satisfactory to the Issuer 25 and Bond Registrar duly executed by the Holder thereof or his, 26 her or its attorney duly authorized in writing) and the Issuer 27 shall execute (if necessary) and the Bond Registrar shall 28 authenticate and deliver to the Holder of such Bond, without 29 service charge, a new Bond of the same series having the same 30 stated maturity and interest rate and of the authorized 31 denomination in aggregate principal amount equal to and in 32 exchange for the unredeemed portion of the principal of the Bond 33 so surrendered. 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Issuance; Purpose; General Obliaation. This Bond is one of an issue in the total principal amount of $2,450,000, 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 confor,mity with the Constitution and laws of the State of Minnesota and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 26, 1997 (the "Resolution"), for the purpose of providing money to finance the construction of various street improvements in the City. This Bond is payable out of a special account relating to the Bonds in the General Obligation Special Assessments -- Streets Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt 346604.2 12 �� �� 8 9 10 il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 and full payment of its princigal, when the same become due, the full powers of the Issuer have been and pledged. premium, if any, and interest faith and credit and taxing are hereby irrevocably Denominations; Exchanae; Resolution. The Bonds are issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. G1oba1 Certificates are not exchangeable for fully registered bonds of smaller denominations except to evidence a partial prepayment or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are issuable solely as fully registered bonds in the denominations o£ $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Renlacement Bonds. Replacement Bonds may be issued by the Issuer in the event that: (a) the Depository shall resign or discontinue its services for the Bonds, and only if the Issuer is unable to locate a substitute depository within two (2) months following the resignation or determination of non- eligibility, or (b) upon a determination by the Issuer in its sole discretion that (1) the continuation of the book-entry system described in the Resolution, which precludes the issuance of certificates (other than Global Certificates) to any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds. 40 Transfer. This Bond shall be registered in the name of 41 the payee on the books of the Issuer by presenting this Bond for 42 registration to the Sond Registrar, who wi11 endorse his, her or 43 its name and note the date of registration opposite the name of 44 the payee in the certificate of registration attached hereto. 45 Thereafter this Bond may be transferred by delivery with an 346604.2 1 3 q7 �s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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 Sond-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. 16 Fees upon Transfer or Loss. The Bond Registrar may 17 require payment of a sum sufficient to cover any tax or other 18 governmental charge payable in connection with the transfer or 19 exchange of this Bond and any legal or unusual costs regarding 20 transfers and lost Bonds. 21 22 23 24 25 26 27 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 o£ receiving payment as herein provided (except as otherwise provided with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. 28 Authentication This Bond shall not be valid or become 29 obligatory for any purpose or be entitled to any security unless 30 the Certificate of Authentication hereon shall have been executed 31 by the Bond Registrar. 32 Not Qualified Tax-Exempt Obliaations. The Bonds have 33 not been designated by the Issuer as "qualified tax-exempt 34 obligations" for purposes of Section 265(b)(3) of the federal 35 Internal Revenue Code of 1986, as amended. The Bonds do not 36 qualify for such designation. 37 IT IS AEREBY CERTIFIED AND RECITED that all acts, 38 conditions and things required by the Constitution and laws of 39 the State of Minnesota and the Charter of the Issuer to be done, 40 to happen and to be performed, precedent to and in the issuance 41 of this Bond, have been done, have happened and have been 42 performed, in regular and due form, time and manner as required 43 by 1aw, and that this Bond, together with a11 other debts of the 44 Issuer outstanding on the date of original issue hereof and on 45 the date of its issuance and delivery to the original purchaser, 346604.2 14 9� ��S 1 does not exceed any constitutional or statutory or Charter 2 limitation of indebtedness. 3 IN WSTNESS WHEREOF, the City of Saint Paul, Ramsey 4 County, Minnesota, by its City Council has caused this Bond to be 5 sealed with its official seal and to be executed on its behalf by 6 the photocopied facsimile signature of its Mayor, attested by the 7 photocopied facsimile signature of its Clerk, and countersigned 8 by the photocopied facsimile signature of its Director, Office of 9 Financial Services. 346604.2 1 5 �� �� 1 2 3 4 Date of Registration Registrable by: Payable at: _ 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 15 , 16 Bond Registrar 17 18 19 20 21 22 23 24 By Authorized Signature (SEAL) CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Street Improvement Special Assessment Bond, Series 1997B, No. R- 346604.2 � �.>� FI 2 3 4 � 7 0 �] 10 11 12 CERTIFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Bond may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF REGISTRATION REGISTERED OWNER SIGNATURE OF BOND REGIS'I'RAR 346604.2 17 �� �� � 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 REGISTER OF PARTIAI, PAYMENTS The principal amount of the attached Bond has been prepaid on the dates and in the amounts noted below: Signature of Signature of Date Amount Bondholder Bond Reaistrar If a notation is made on this register, such notation has the effect stated in the attached Bond. Partial payments do not require the presentation of the attached Bond to the Bond Registrar, and a Holder could fail to note the partial payment here. 346604.2 F[1 ���� 1 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 SNT - as tenants by the entireties 7 JT TEN - as joint tenants with right of survivorship 8 and not as tenants in common 9 UTMA - as custodian for 10 (Cust) (Minor) 11 under the Uniform Transfers 12 (State) 13 to Minors Act 14 Additional abbreviations may also be used 15 though not in the above 1ist. 346604.2 1 9 �� .�s � 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the attached Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration or any change whatever. Signature Guaranteed: 17 Signature(s) must be guaranteed by a national bank or trust 18 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 22 23 24 25 26 27 28 The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 346604.2 L�d�] 9�7-3 �S 1 B. Replacement Bonds. If the City has notified 2 Holders that Replacement Bonds have been made available as 3 provided in paragraph 6, then for every Bond thereafter 4 transferred or exchanged (including an exchange to reflect the 5 partial prepayment of a Global Certificate not previously 6 exchanged for Replacement Bonds) the Bond Registrar shall deliver 7 a certificate in the form of the Replacement Bond rather than the 8 Global Certificate, but the Holder of a Global Certificate shall 9 not otherwise be required to exchange the Global Certificate for 10 one or more Replacement Bonds since the City recognizes that some 11 beneficial owners may prefer the convenience of the Depository's 12 registered ownership of the Bonds even though the entire issue is 13 no longer required to be in global book-entry form. The 14 Replacement Bonds, together with the Bond Registrar's Certificate 15 of Authentication, the form of Assignment and the registration 16 information thereon, shall be in substantially the following 17 form: 346604.2 2 1 97 3�� UNITED STATES OF AMERICA STATE OF MINNfiSOTA RAMSEY COUNTY CITY OF SAINT PAUL 5 R- 6 7 8 INTEREST 9 RATE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 GENERAL OBLIGATION STREET IMPROVEMEA7T SPECIAL ASSESSMENT BOND, SERIES 1997B MATURITY DATE OF DATE ORIGINAL ISSUE April 1, 1997 REGISTERED OWNER: PRINCIPAL AMOUNT: $ CUSIP DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or 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, 1997, 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 Sond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar monCh preceding such Interest Payment Date (the '�Regular Record Date'�). Any interest not so timely paid shall cease to be payable to the 346604.2 ' 2 2 97 3S 1 person who is the Holder hereof as of the Regular Record Date, 2 and shall be payable to the person who is the Holder hereof at 3 the close of business on a date (the "Special Record Date��) fixed 4 by the Bond Registrar whenever money becomes available for 5 payment of the defaulted interest. Notice of the Special Record 6 Date shall be given to Bondholders not less than ten days prior 7 to the Special Record Date. The principal of and premium, if 8 any, and interest on this Bond are payable in lawful money of the 9 United States of America. 10 11 12 13 14 15 16 17 18 19 20 21 aa 23 24 25 26 27 28 29 30 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date o£ its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by its City Council has caused this Bond to be sealed with its official seal or a facsimile thereof and to be executed on its behalf by the original or facsimile signature o£ its Mayor, attested by the original or facsimile signature of its Clerk, and countersigned by the original or facsimile signature of its Director, Office of Financial Services. 346604.2 2 3 r7 ��� 1 2 3 4 Date of Registration Registrable by: Payable at: _ _ 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTIiENTICATI0A7 8 This Hond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 By Authorized Signature 20 (SEAL) 3466D4.2 CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Attest: City Clerk Countersigned: Director, Office of Financial Services 24 ��-3a� ON REVERSE OF BOND 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Date of Payment Not Business Day. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New York, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such gayment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Redemption. All Bonds of this issue (the "Bonds") maturing after March 1, 2005, are subjeCt to redemption and prepayment at the option of the Issuer on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be prepaid in such arder 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 specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall Cease to acCrue from and after the redemption date. 27 Notice of Redemption. Mailed notice of redemption 28 shall be given to the paying agent (if other than a City officer) 29 and ta each affected Holder of the Eonds. In the event any of 30 the Bonds are called for redemption, written notice thereof will 31 be given by first class mail mailed not less than thirty (30) 32 days prior to the redemption date to each Holder of Bonds to be 33 redeemed. In connection with any such notice, the "CUSIP" 34 numbers assigned to the Bonds shall be used. 35 Selection of Bonds for Redemption. To effect a partial 36 redemption of Bonds having a commpn 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 Sond 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; 34b604.2 2 5 9'7 .��5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Aolder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose: General Obligatian. This Bond is one of an issue in the total principal amount of $2,450,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and the CharCer of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 26, 1997 (the "Resolution"), for the purpose of providing money to finance the construction of various street improvements in the City. This Bond is payable out of a special account relating to the Bonds in the General Obligation Special Assessments -- Streets Debt Service Fund of the Issuer. This Bond Constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations: Exchange: Resolution. The Bonds are issuable solely as fully registered bonds in the denominations of $5,0�0 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. ReferenCe is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. 346604.2 26 � / J � 1 Transfer. This Bond is transferable by the Holder in 2 person or by his, her or its attorney duly authorized in writing 3 at the principal office of the Bond Registrar upon presentation 4 and surrender hereof to the Bond Registrar, all subject to the 5 terms and conditions provided in the Resolution and to reasonable 6 regulations of the Issuer contained in any agreement with, or 7 notice to, the Bond Registrar. Thereupon the Issuer shall 8 execute and the Bond Registrar shall authenticate and deliver, in 9 exchange for this Bond, one or more new fully registered Bonds in 10 the name of the transferee (but not registered in blank or to 11 "bearer" or similar designation), of an authorized denomination 12 or denominations, in aggregate principal amount equal to the 13 principal amount of this Bond, of the same maturity and bearing 14 interest at the Same rate. 15 Fees upon Transfer or Loss. The Bond Registrar may 16 require payment of a sum sufficient to cover any tax or other 17 governmental charge payable in connection with the transfer or 18 exchange of this Bond and any legal or unusual costs regarding 19 transfers and lost Bonds. 20 Treatment of Reaistered Owner_ The Issuer and Bond 21 Registrar may treat the person in whose name this Bond is 22 registered as the owner hereof for the purpose of receiving 23 payment as herein provided (except as otherwise provided on the 24 reverse side hereof with respect to the Record Date) and for all 25 other purposes, whether or not this Bond shall be overdue, and 26 neither the Issuer nor the Bond Registrar shall be affected by 27 notiCe to the contrary. 28 Authentication. This Bond shall not be valid or become 29 obligatory for any purpose or be entitled to any security unless 30 the Certificate of Authentication hereon shall have been executed 31 by the Bond Registrar. 32 Not Oualified Tax-Exempt Oblicxations. The Bonds have 33 not been designated by the Issuer as "qualified tax-exempt 34 obligations" for purposes of Section 265(b)(3) of the federal 35 Internal Revenue Code of 1986, as amended. The Bonds do not 36 qualify for such designation. 346604.2 2 7 9� .3v� � 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 fu11 according to applicable laws 5 or regulations: 6 TEN COM - as tenants in common 7 TEN ENT - as tenants by the entireties 8 JT fiEN - as joint tenants with right of survivorship 9 and not as tenants in common 10 UTMA - as custodian for il (Cust) (Minor) 12 under the Uniform Transfers 13 (State) 14 to Minors Act 15 Additional abbreviations may also be used 16 though not in the above list. 346604.2 2 8 9 � 3 �� � ASSIGNMENT 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the within Bond and does 5 hereby irrevocably constituCe and appoint 6 attorney to transfer the Bond on the books kept for the 7 registration thereof, with full power of substitution in the S premises. 9 Dated: 10 Notice: The assignor's signature to this assignment 11 must correspond with the name as it appears 12 upon the face of the within Bond in every 13 particular, without alteration or any change 14 whatever. 15 Signature Guaranteed: 16 17 Signature(s) must be guaranteed by a national bank or trust 18 company or by a brokerage firm having a membership in one of the 19 major stock exchanges or any other "Eligible Guarantor 20 Institution" as 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: 25 26 27 za (Include information for all joint owners if the Bond is held by joint account.) 346604.2 2 9 9� 3�S 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, Office of Financial Services, each with the effect noted on the forms of the Bonds, and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed or photocopied facsimile; and provided further that any of such signatures may be printed or photocopied 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, sha11 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, 1997. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 12. Reaistration; `Pransfer; 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 transferred as herein provided. 42 A Global Certificate shall be registered in the name of 43 the payee on the books of the Bond Registrar by presenting the 44 Global 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 34bb04.2 3 0 ����� 2 3 4 8 9 10 11 12 be transferred by delivery with an assignment duly executed by the Holder or his, her or its legal representative, and the City and Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until a Global Certificate is presented with such assignment for registration of transfer, accompanied by assuranee of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. 13 `Transfer o£ a Global CertifiCate may, at the direction 14 and expense of the City, be subject to other restrictions if 15 required to qualify the Global Certificates as being '�in 16 registered form" within the meaning of Section 149(a) of the 17 federal Internal Revenue Code of 1986, as amended. 18 If a Global Certificate is to be exchanged for one or 19 more Replacement Bonds, all of the principal amount of the Global 20 Certificate shall be so exchanged. 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Upon surrender for transfer of any Replacement Bond the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the name of the designated transferee or transferees, one or more new Replacement Bonds at � any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder of a Replacement Bond, Replacement Bonds may be exchanged for Replacement Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Replacement Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Replacement Bonds which the Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for Global Certificates of smaller denominations. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by 346604.2 3 1 �3� 1 the Bond Registrar and thereafter disposed of as directed by the 2 City. 3 Al1 Bonds delivered in exchange for or upon transfer of 4 Bonds shall be valid general obligations of the City evidencing 5 the same debt, and entitled to the same benefits under this 6 resolution, as the Bonds surrendered for such exchange or 7 transfer. 8 Every Bond presented or surrendered for transfer or 9 exchange shall be duly endorsed or be accompanied by a written 10 instrument of transfer, in form satisfactory to the Bond 11 Registrar, duly executed by the Holder thereof or his, her or its 12 attorney duly authorized in writing. 13 The Bond Registrar may require payment of a sum 14 sufficient to cover any tax or other governmental charge payable 15 in connection with the transfer or exchange of any Bond and any_ 16 legal or unusual costs regarding transfers and lost Bonds. 17 Transfers shall also be subject to reasonable regula- 18 tions of the City Contained in any agreement with, or notice to, 19 the Bond Registrar, including regulations which permit the Bond 20 Registrar to close its transfer books between record dates and 21 payment dates. 22 13. Riqhts Upon Transfer or Exchanae. Each Bond 23 delivered upon transfer of or in exchange for or in lieu of any 24 other Bond shall carry all the rights to interest accrued and 25 unpaid, and to accrue, which were carried by such other Bond. 26 14. Interest Payment: Record Date. Interest on any 27 Global Certificate shall be paid as provided in the first 28 paragraph thereof, and interest on any Replacement Bond shall be 29 paid on each Interest Payment Date by check or draft mailed to 30 the person in whose name the Bond is registered (the "HOlder") on 31 the registration books of the City maintained by the Bond 32 Registrar, and in each case at the address appearing thereon at 33 the close of business on the fifteenth (15th) day o£ the calendar 34 month preceding such Interest Payment Date (the "Regular Record 35 Date"). Any such interest not so timely paid shall cease to be 36 payable to the person who is the Holder thereof as of the Regular 37 Reaord Date, and shall be payable to the person who is the Holder 38 thereof at the close o£ business on a date (the "Special Record 39 Date") fixed by the Bond Registrar whenever money becomes 40 available for payment of the defaulted interest. Notice of the 41 Special Record Date shall be given by the Bond Registrar to the 42 Holders not less than ten (10) days prior to the Special Record 43 Date. 346604.2 3 2 �� �3�5 1 2 3 4 5 6 7 8 9 10 il 12 13 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 purehases, the City may (but shall not be obligated to) treat as the Holder of a Bond the beneficial owner of the Bond instead of the person in whose name the Bond is registered_ For that purpose, the City may ascertain the identity of the beneficial owner of the Bond by such means as the Bond Registrar in its sole discretion deems appropriate, including but not limited to a certificate from the person in whose name the Bond is registered identifying such beneficial owner. 14 (B) The City and Bond Registrar may treat the person in 15 whose name any Sond is registered as the owner of such Bond for 16 the purpose of receiving payment of prinaipal of and premium, if 17 any, and interest (subject to the payment provisions in paragraph 18 14 above) on, such Bond and for a11 other purposes whatsoever 19 whether or not such Bond shall be overdue, and neither the City 20 nor the Bond Registrar shall be affected by notice to the 21 contrary. 22 (C) Any consent, request, direction, approval, objection or 23 other instrument to be signed and executed by the Holders may be 24 in any number of concurrent writings of similar tenor and must be 25 signed or executed by such Holders in person or by agent 26 appointed in writing. Proof of the execution of any such 27 consent, request, direction, approval, objection or other 28 instrument or of the writing appointing any such agent and of the 29 ownership of Bonds, if made in the following manner, shall be 30 sufficient for any of the purposes of this Resolution and shall 31 be conclusive in favor of the City with regard to any action 32 taken by it under such request or other instrument, namely: 33 (1) The fact and date of the execution by any person 34 of any such writing may be proved by the certificate of any 35 officer in any jurisdiction who by law has power to take 36 acknowledgments within such jurisdiction that the person 37 signing such writing acknowledged before him or her the 38 execution thereof, or by an affidavit of any witness to such 39 execution. 40 (2) Subject to the provisions of subparagraph (A) 41 above, the fact of the ownership by any person of Bonds and 42 the amounts and numbers of such Bonds, and the date of the 43 holfling of the same, may be proved by reference to the bond 44 register. 34bb04.2 3 3 9� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 16. Delivery; A�,pliaation of Proceeds. The Global Certificates when so prepared and executed shall be delivered by the Director, Office of Einancial Services, to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 17. Funds. There is hereby'created a special fund to be designated the "1997 Capital Projects Fund" (numbered C-97, the "Capital Fund"), to be administered and maintained by the City Treasurer as a bookkeeping account separate and apart from all other accounts maintained in the official financial records of the City. There has been heretofore created and established the "General Obligation Special Assessments -- Streets Debt Service Fund" (numbered 963, the "Debt Service Fund"). The Capital Fund and Debt Service Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. (i) Cabital Fund. To the Capital Fund there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of $2,425,500. From the Capital Fund there shall be paid all costs and expenses of making the Improvements listed in paragraph 18, after they have been ordered in accordance with the Charter of the City, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Capital Rund shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes or special assessments herein covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Capital Fund, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to the City's Charter or Minnesota Statutes, Chapter 429, or used to pay the costs of any other purpose permitted by law, or transferred to the Debt Service Fund. All earnings on the Capital Fund shall be transferred to the Debt Service Fund, or may be retained in the Capital Fund. (ii) Debt Service Fund. There there shall be credited to a special Bonds in the Debt Service Fund: (a) assessments herein covenanted to be 346604.2 34 is hereby pledged and account relating to the collections of special levied, to the extent 9� 3as 1 2 3 4 5 6 7 8 9 10 il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 provided in paragraph 19; (b) all accrued interest received upon delivery of the Bonds; (c) all funds paid for the Bonds in excess of $2,425,500; (d) any collections of all taxes which are levied herein, or which may hereafter be levied in the event that the special assessments herein pledged to the payment of the Bonds and interest thereon are insufficient therefor; (e) all funds remaining in the Capital Fund after completion of the Improvements and payment of the costs thereof, not so transferred to the account of another improvement or used to pay the costs of any other purpose permitted by law; and (f) all investment earnings on moneys held in such special account in the Debt Service Fund or on moneys held in the Capital Fund. If moneys in the special account of the Debt Service Fund should ever be insufficient to pay debt service on the Bonds, the Bonds shall be paid from the Debt Service Fund or any other special account therein, and the Bonds are hereby made payable from the Debt Service Fund and any other special accounts therein for this purpose. Amounts drawn from the Debt Service Fund or any special account therein may be repaid with or without interest when moneys sufficient for such repayment are deposited in the special account relating to the Bonds in the Debt Serviae Fund. The special account relating to the Bonds in the Debt Service Fund shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from such special account in the Debt Service Fund as provided by law, or to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an amount not greater than five percent (5 of the proceeds of the Bonds. To this effect, any sums from time to time held in the Capital Fund or in such special account in the Debt Service Fund (or any other City fund or account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then- applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Capital Fund or in such special account in the Debt Service Fund shall not be invested in 346604.2 3 5 9�-3bs 1 obligations or deposits issued by, guaranteed by or insured by 2 the United States or any agency or instrumentality thereof if and 3 to the extent that such investment would cause the Bonds to be 4 ��federally guaranteed" within the meaning of Section 149ib) of 5 the federal Internal Revenue Code of 1986, as amended (the 6 ��Code"). 7 18. Assessments: Coverage Test. The City CounCil has 8 heretofore determined, and does hereby determine, to proceed with 9 the Improvements and special assessments with respect thereto 10 under the provisions of the Charter of the City, rather than the 11 provisions of Minnesota Statutes, Chapter 429. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 It is hereby determined that no less than twenty percent (20%) of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefitted by the Improvements. The City hereby covenants and agrees that it will let all construation contracts not heretofore let within one year after ordering each Improvement financed hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of construction contracts and will do and perform, as soon as they may be done, all acts and things necessary for the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity, in any action or proceedings taken or to be taken by the City or this Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. 34 The special assessments have not heretofore been 35 authorized, and accordingly, for purposes of Minnesota Statutes, 36 Section 475.55, Subdivision 3, the special assessments are hereby 37 authorized. Subject to such adjustments as are required by 38 conditions in existence at the time the assessments are levied, 39 the assessments are hereby authorized and it is hereby determined 40 that the assessments sha11 be payable in equal, consecutive, 41 annual installments, with general taxes for the years shown below 42 and with interest on the declining balance of all such 43 assessments at a rate per annum approximately one percent (1a) 44 per annum in excess of the net effective rate of interest on the 45 Bonds: 346604.2 3 6 � 7-3o.S � 2 3 4 5 6 7 Improvement Designation Page/Cherokee Lafond/Grotto ArlingtonjRuth MorganjEdgecumbe TOTAL Amount $ 610,000 500,000 520,460 820.000 $2,450,000 Levy Years 1997-2016 for all Collection Years 1998-2017 for all 8 The special assessments shall be such that if collected 9 in full they, together with estimated collections of other 10 revenues herein pledged for the payment of the Bonds, will 11 produce at least five percent (50) in excess of the amount needed 12 to meet when due the principal and interest payments on the Bonds 13 in every year except the final year (2009). At the time the 14 assessments are in fact levied the City Council sha11, baseci on 15 the then-current estimated collections of the assessments, make 16 an�r adjustments in any ad valorem taxes required to be levied in 17 order to assure that the City continues to be in compliance with 18 Minnesota Statutes, Section 475.61, Subdivision 1. 19 19. Limit on Special Assessments Pledged. The City 20 Council hereby finds, determines and declares that the payment of 21 the Bonds does not require the pledge of all the special 22 assessments which may be levied with respect to the Improvements 23 identified in paragraph 18, and that it is necessary, proper and 24 expedient to provide that payments and prepayments of special 25 assessments in excess of the debt service requirements of the 26 Bonds be put to use for other purposes sooner than upon the 27 termination of the Debt Service Fund. Only $2,450,000 original 28 principal amount of the special assessments (which amount is the 29 '�Pledged Assessments"), and interest thereon, recognized in 30 paragraph 18 of this Resolution (of which $410,000 are necessary 31 prior to their scheduled receipt in order to pay debt service on 32 the Bonds on March 1, 1997) are or shall be pledged to the 33 payment of the Bonds, and payments of, or with respect to, such 34 special assessments in excess of the Pledged Assessments shall be 35 credited instead to a special account in the Capital Fund, and 36 used for the purpose of paying any additional costs of the 37 Improvements and the costs of other improvements approved by the 38 City, as follows: (a) the first $410,000 of all prepayments of 39 special assessments recognized in paragraph 18 shall be credited 40 to the Debt Service Fund, (b) thereafter until SllCYl time as the 41 special assessments from time to time outstanding equal in 42 original principal amount the Pledged Assessments or less, 43 prepayments of any of the special assessments recognized in 44 paragraph 18 shall be treated as prepayments of the portion of 45 the special assessments not pledged to the Bonds and sha11 be 46 credited instead to said special account of the Capital Fund, and 346604.2 3 7 9 � 3oS 3 4 5 6 7 8 9 used as provided above, and (c) while the special assessments from time to time outstanding equal in original principal amount the Pledged Assessments or more, regular installment payments made on the Pledged Assessments only (not all of the special assessments) shall be credited to the Debt Service Fund, and regular installment payments on that portion, if any, of the remaining assessments in excess of the Pledged Assessments shall be credited to said special account of the Capital Fund, and used as provided above. 10 20. Tax Levy: Coverage Test. If taxes are levied as 11 provided in the final part of paragraph 18, the tax levies shall 12 be irrepealable so long as any of the Bonds are outstanding and 13 unpaid, provided that the City reserves the right and power to 14 reduce the levies in the manner and to the extent permitted by 15 Minnesota Statutes, Seetion 475.61, Subdivision 3. 16 To provide moneys for payment of the principal and 17 interest on the Bonds due to be paid in 2009 there is hereby 18 levied upon a11 of the taxable property in the City a direct 19 annual ad valorem tax which shall be spread upon the tax rolls 20 and collected with and as part of other general property taxes in 21 the City for the years and in the amounts as follpws: 22 23 24 25 26 27 28 29 30 31 32 33 34 Year of Tax Levy Year of Tax Collection Amount 2007 ��: $1,005,212 The tax levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged far the payment of the Bonds, will produce at least five percent (So) in excess of the amount needed to meet when due the principal 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 and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 35 21. General Obligation Pledqe. For the prompt and 36 full payment of the principal and interest on the Bonds, as the 37 same respectively become due, the full faith, credit and taxing 38 powers of the City shall be and are hereby irrevocably pledged. 39 If the balance in the special account relating to the Bonds in 40 the Debt Service Fund (as defined in paragraph 17 hereof) is ever 41 insufficient to pay all principal and interest then due on the 42 Bonds payable therefrom, the deficiency shall be promptly paid 43 out of any other funds of the City which are available for such 44 purpose, including the general fund of the City and the Debt 34bb04.2 3 $ �3�s 1 Service Fund and the special accounts therein, and such other 2 funds may be reimbursed with or without interest from the special 3 account in the Debt Service Fund relating to the Bonds when a 4 sufficient balance is available therein. 5 22. Certificate of Registration. The Director, Office 6 of Financial Services, is hereby directed to file a certified 7 copy of this Resolution with the officer of Ramsey County, 8 Minnesota, performing the functions of the county auditor (the 9 "County Auditor"), together with such other information as the 10 County Auditor shall require, and to obtain the County Auditor's il certificate that the Bonds have been entered in the Count�r 12 Auditor's Bond Register, and that the tax levy required by law 13 has been made. 14 23. Records and Certificates. The officers of the 15 City are hereby authorized and directed to prepare and furnish to 16 the Purchaser, and to the attorneys approving the legality of the 17 issuance of the Sonds, certified copies of all proceedings and 18 records of the City relating to the Bonds and to the financial 19 condition and affairs of the City, and such other affidavits, 20 certificates and information as are required to show the facts 21 relating to the legality and marketability of the Bonds as the 22 same appear from the books and records under their custody and 23 control or as otherwise known to them, and all such certified 24 copies, certificates and affidavits, including any heretofore 25 furnished, shall be deemed representations of the City as to the 26 facts recited therein. 27 24. Negative Covenants as to Use of Proceeds and 28 Improvements. The City hereby covenants not to use the proceeds 29 of the Bonds or to use the Improvements, or to cause or permit 30 them to be used, or to enter into any deferred payment 31 arrangements for the cost of the Improvements, in such a manner 32 as to cause the Bonds to be "private activity bonds�' within the 33 meaning of Sections 103 and 141 through 150 of the Code. The 34 City hereby covenants not to use the proceeds of the Bonds in 35 such a'manner as to cause the Bonds to be "hedge bonds" within 36 the meaning of Section 149(g) of the Code. 37 25. Tax=Exeml�t Status of the Bonds: Rebate: Election. 38 The Cit�r shall comply with requirements necessary under Che Code 39 to establish and maintain the exclusion from gross income under 40 Section 103 of the Code of the interest on the Bonds, including 41 without limitation requirements relating to temporary periods for 42 investments, limitations on amounts invested at a yield greater 43 than the yield on the Bonds, and the rebate of excess investment 44 earnings to the United States. 346604.2 3 9 \ �7� 1 The City expects that the two-year expenditure 2 exception to the rebate requirements may apply to the 3 construction proceeds of the Bonds. 4 If any elections are available now or hereafter with 5 respect to arbitrage or rebate matters relating to the Bonds, the 6 Mayor, Clerk, Treasurer and Director, Office of Financial 7 Services, or any of them, are hereby authorized and directed to 8 make such elections as they deem necessary, appropriate or 9 desirable in connection with the Bonds, and all such elections 10 shall be, and shall be deemed and treated as, elections of the 11 City. 12 26. No Desi�nation of 4ualified Tax-Exemot 13 Obligations. The Bonds, together with other obligations issued 14 by the City in 1997, exceed in amount those which may be 15 qualified as "qualified tax-exempt obligations" within the 16 meaning of Section 265(b)(3) of the Code, and hence are not 17 designated for such purpose. 18 19 20 21 22 23 24 25 26 27 27. Letter of Representations. The Letter of Representations for the Bonds is hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1996, by the City and received and accepted by The Depository Trust Company. So long as The Depository Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the City shall comply with the provisions of the Letter of Representations, as it may be amended or supplemented by the City from time to time with the agreement or consent of The Depository Trust Company. 28 28. Neqotiated Sale. The City has retained Springsted 29 Incorporated as an independent financial advisor, and the City 30 has heretofore determined, and hereby determines, to sell the 31 Bonds by private negotiation, all as provided by Minnesota 32 Statutes, Section 475.60, Subdivision 2(9). 33 34 35 36 37 38 39 40 41 42 43 44 29. Continuina Disclosure. The City is an obligated person with zespect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the ��Rule��), promulgated by the Securities and Exchange Commission (the '�Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the ��Undertaking") hereinafter described, to: A. Provide or cause to be provided to each nationally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository ("SID"), if any, for the State of Minnesota, in each case as designated by the Commission in accordance with 346604.2 m �� 3 S 1 the Rule, certain annual financial information and operating 2 data in accordance with the Undertaking. The City reserves 3 the right to modify from time to time the terms of the 4 Undertaking as provided therein. 5 B. Provide or cause to be provided, in a timely 6 manner, to (i) each NRMSIR or to the Municipal Securities 7 Rulemaking Board (��MSRB") and (ii) the SID, notice of the 8 occurrence of certain material events with respect to the 9 Bonds in accordance with the Undertaking. 10 C. Provide or cause to be provided, in a timely 11 manner, to (i) eaCh NRMSIR or to the MSRB and (ii) the SID, 12 notice of a failure by the City to provide the annual 13 financial information with respect to the City described in 14 the Undertaking. 15 The City agrees that its covenants pursuant to the Rule 16 set forth in thi5 paragraph 29 and in the Undertaking are 17 intended to be for the benefit of the Holders of the Bonds and 18 shall be enforceable on behalf of such Holders; provided that the 19 right to enforce the provisions of these covenants shall be 20 limited to a right to obtain specific enforcement of the City�s 21 obligations under the covenants. 22 The Mayor and Director, Office of Financial Services, 23 or any other officers of the City authorized to act in their 24 stead (the "Officers"), are hereby authorized and directed to 25 execute on behalf of the City the Undertaking in substantially 26 the form presented to the City Council, subject to such 27 modifications thereof or additions thereto as are (i) consistent 28 with the requirements under the Rule, (ii) required by the 29 Purchaser, and (iii) acceptable to the Officers. 41 97 30� 1 30. Severabilitv. If any section, paragraph or 2 provision of this resolution shall be held to be invalid or 3 unenforceable for any reason, the invalidity or unenforceability 4 of such section, paragraph or provision shall not affect any of 5 the remaining provisions of this resolution. 6 31. Headinas. Headings in this resolution are 7 included for convenience of reference only and are not a part S hereof, and shall not limit or define the meaning of any 9 provision hereof. Adoption Certffied by Council Secretary � App � -. -. . �-.. . _ • .. - ' - �i� t � � ,� `�� � '0 f't..i.�v� ' I . , : -./ . ��� f�/1�.������1 - � � Approved hy ayor for�ssion to Council By: � Adopted by Council: Date �` ��-� a� *� `� `�'� %7'3�S EXHIBITS Exhibit A - Proposals y� 3d� "���.�� OEPAflTMENTAOFFICE/COUNCIL DATE INItIATED � � � � Financial Services 3112f97 GREEN SHEE CONTACT PERSON & PHONE INITIAVDATE INRIAV�ATE O DEPAFi7MENTDIRE l e7I CITYCOUNCII Martha ICantorowicz 266-8836 A$SIGN �CIT'ATTORNEV OCITYCLERK NUMBEpiOP MUST BE ON CAUNC7L AGENDA 8Y (DA7E) qOUTIN6 � BUDGE7 DiREGTOR m FIN. & MG7: SERVICES DIR. March 26, 1997 ONDER �MAVOR(ORAS$ISTIWn � TOTAL # OF SIGNATURE PAGES _.�_ (CLIP A4L LOCATIONS FOR SIGNATURE) ACTION REQUESTED: This resolution accepYS Yhe winning proposal and awards the bid for the $2,450,000 G.O. Street Improvement Special Assessment Bonds Series 1997B. This is a competitive bond sale and the award is going to the bidder found to be the most advantageous to the City. RECOMMENDA710NS: Approva (A) or Reject (R) pERSONAL SEHVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _ CIVIL SERVICE GOMMISSION �� Has this pereonnrm ever worketl untler a corrtrect for this departmeM? _ CIB CAMMITTEE _ YES NO 2. Has this personflirm ever been a ciry employee? _ S7AFF — YES NO _ olsialCi COURi _ 3. Does this person/firm possess a skill not normally possessed by any curtent city employee? SUPPORTSWHIGHCOUNqLOBJECTIVE7 YES NO Explain all yes answers on seperate sheet and ettach to green sheet INITIATING PFOBLEM, ISSUE. OPPGIRTUNITY (Who, WhQt, When, Where. Why)' The bonds are for the purpose of financing certain street improvements within the City, and will be repaid by special assessments. ADVANTAGESIFAPPAOVED: Funds will be available for street improvements. DISADVANTAGES IF APPROVEO: None �ISADVANTACaES IF NOTAPPflOVED� Funds needed for certain street improvements will not be available. b3'SY3�� �i'�.r'�� ��.Y .<.: L 6 f:i,�i 1 TO7AL AMOUNT OF 7RANSACTION $ � Z �150 � OOO COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIIeG SOUBCE ACTIVITV NUMBER FINANCIALINFORM1SATION:(EXPLAIN) 97 �3�..� 1 2 3 means the certificates representing the Bonds so authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and � 4 WHEREAS, "Holder'� as used herein means 5 whose name a Bond is registered on the registrat 6 City maintained by the registrar appointed as p� 7 paragraph 8(the "Bond Registrar"); and � 8 WHEREAS, Rule 15c2-12 of the 9 Commission prohibits "participating un 10 or selling the Bonds unless the City u 11 certain continuing disclosure with res 12 WHEREAS, pursuant to M 13 475.60, Subdivision 2(9), public 14 to the Bonds if the City retains 15 and determines to sell the Bonds 16 City has instead authorized a co 17 publication of notice thereof as 18 and 19 WHEREAS, proposals f r 20 Springsted Incorporated pursu t 21 Terms of Proposal therein: person in books of the ed in r�Cties and Exchange �iters" from purchasing akes to provide to the Bonds; and nneso a Statutes, Section sale requirements do not apply an 'ndependent financial advisor by private negotiation, and the p titive sale without form of private negotiation; the Bonds have been solicited by to an Official Statement and 22 NOW, THEREFORE,� IT RESOLVED by the Council of the 23 City of Saint Paul, Minne ta, as follows: 24 25 26 27 28 29 30 31 32 33 34 35 36 37 1. Acce tance of Pro osal. The proposal of (the "Purchaser"), to purchase $2,450,000 General Obl'gation Street Improvement Special Assessment Bonds, Ser'es 1997B, of the City (the "Bonds", or individually a"Bond'), in accordance with the Terms of Proposal for the bond sale, t the rates of interest hereina£ter set forth, and to pay erefor the sum of $ , plus interest accrued settlement, is hereby found, determined and declared to be t most favorable proposal received and is hereby accepted, and t Bonds are hereby awarded to the Purchaser. The Director, Offic of Financial Services, or his designee, is directed to re ain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts . 38 2. Title; Oriainal Issue Date; Denominations; 39 Maturities The Bonds sha11 be titled "General Obligation Street 40 Improveme t Special Assessment Bonds, Series 1997B", shall be 41 dated Ap il 1, 1997, as the date of original issue and shall be 42 issued rthwith on or after such date as fully registered bonds. 43 The Bo s shall be numbered from R-1 upward. Global Certificates 3 9�7 3�� 1 2 3 4 5 6 7 E: 9 1� 11 12 13 14 shall each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on Marq�i 1 in the years and amounts as follows: / Year 1998 1999 2000 2001 2002 2003 Amount $350,000 125,0�0 100,000 100,000 100,000 100,000 15 For purposes of Minnesota Statutes, Section 5.54, the serial 16 maturities of the Bonds are combined with t e serial maturities 17 of the City's $17,500,000 General Obligati n Capital Improvement 18 Bonds, Series 1997A. 19 20 21 22 23 24 25 26 3. Puroose. The Bonds construction of various street im in the City, and any excess funds purpose permitted by law. The to which shall include all costs enu Section 475.65, is estimated to of the Bonds. Work on the Impr diligence to completion. shal provide funds for the rov ents (the �'Improvements") sh 11 be devoted to any other a cost of the Improvements, rated in Minnesota Statutes, at least equal to the amount ments shall proceed with due 27 4. Interest. The onds shall bear interest payable 28 semiannually on March 1 and September 1 of each year (each, an 29 "Interest Payment Date"), ommencing September 1, 1997, 30 calculated on the basis o a 360-day year of twelve 30-day 31 months, at the respectiv rates per annum set forth opposite the 32 maturity years as foll s: 33 34 35 36 37 38 39 40 41 42 Maturitv Year 1998 1999 2000 2001 2002 2003 , be 3466�4.2 Maturitv Year Interest Rate % 2�04 2005 2006 2007 2008 2009 Year 2004 $ 100 000 2Q05 10 ,0�0 2006 0,000 2007 100,000 2008 100,000 2009 1,075,000 Descrintion of the Global Certificates and Global 5vstem. Upon their original issuance the Bonds will in the £orm of a single Global Certificate for each � 9�-3aS 1 2 3 4 5 6 r� Improvement Desiqnation Page/Cherokee Lafond/Grotto ArlingtonJRUth Morgan/Edgecumbe TOTAL Amount $ 610,000 500,000 520,000 820.000 $2,450,000 Lew Years 1997-2016 for all Collection Years 1998-20�,,7 for a,l'1 8 The special assessments shall be such th i£ collected 9 in full they, together with estimated collections f other 10 revenues herein pledged for the payment of the B ds, will 11 produce at least five percent (5�) in excess of the amount needed 12 to meet when due the principal and interest pa ents on the Bonds 13 in every year except the final year (2009}. t the time the 14 assessments are in fact levied the City Cou il shall, based on 15 the then-current estimated collections of t e assessments, make 16 any adjustments in any ad valorem taxes re uired to be levied in 17 order to assure that the City continues t be in compliance with 18 Minnesota Statutes, Section 475.61, Sub vision 1. 19 19. Limit on S ecial Assess ents Pled ed. The City 20 Council hereby find�, determines and eclares that the payment of 21 the Bonds does not require the pledg of all the special 22 assessments which may be levied wit respect to the Improvements 23 identified in paragraph 18, and t t it is necessary, proper and 24 expedient to provide that payment and prepayments of special 25 assessments in excess of the deb service requirements of the 26 Bonds be put to use for other p rposes sooner than upon the 27 termination of the Debt Servic Fund. Only $2,450,000 original 28 principal amount of the speci 1 assessments (which amount is the 29 "Pledged Assessments"), and nterest thereon, recognized in 30 paragraph 18 of this Resol ion (of which $ ,000 are necessary 31 prior to their scheduled ceipt in order to pay debt service on 32 the Bonds on March 1, 199 ) are or shall be pledged to the 33 payment of the Bonds, a payments of, or with respect to, such 34 special assessments in xcess of the Pledged Assessments shall be 35 credited instead to a pecial account in the Capital Fund, and 36 used for the purpose f paying any additional costs of the 37 Improvements and th costs of other improvements approved by the 38 City, as follows: (a) the first $_,000 of all prepayments of 39 special assessmen s recognized in paragraph 18 shall be credited 40 to the Debt Serv'ce Fund, (b) thereafter until such time as the 41 special assessm nts from time to time outstanding equal in 42 original princ' al amount the Pledged Assessments or less, 43 prepayments o any of the special assessments recognized in 44 paragraph 18 shall be treated as prepayments of the portion of 45 the special assessments not pledged to the Bonds and shall be 46 credited i stead to said special account of the Capital Fund, and 37 �7�.30� 1 used as provided above, and (c) while the special assessments 2 from time to time outstanding equal in original principal amount 3 the Pledged Assessments or more, regular installment payments 4 made on the Pledged Assessments only (not all of the special 5 assessments) shall be credited to the Debt Service Fund, and 6 regular installment payments on that portion, if any, of the 7 remaining assessments in excess of the Pledged Assessments shall 8 be credited to said special account of the Capital Fund, and used 9 as provided above. 10 20. Tax Lew; Coveraae Test. If taxes are levied as 11 provided in the final part of paragraph 18, the tax levies shall 12 be irrepealable so long as any of the Bonds are outstand' g and 13 unpaid, provided that the City reserves the right and p er to 14 reduce the levies in the manner and to the extent per tted by 15 Minnesota Statutes, Section 475.61, Subdivision 3. 16 To provide moneys for payment of the pr'ncipal and 17 interest on the Bonds due to be paid in 2009 th e is hereby 18 levied upon all of the taxable property in the City a direct 19 annual ad valorem tax which shall be spread on the tax rolls 20 and collected with and as part of other gen al property taxes in 21 the City for the years and in the amounts s follows: 22 23 Year of Tax Lew Year of Amount 24 25 26 27 28 29 30 31 32 33 34 2007 20 The taY levies are suc that if collected in full they, together with estimated collect' ns of special assessments and other revenues herein pledged r the payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due the princip 1 and interest payments on the Bonds. The tax levies shal be irrepealable so long as any of the Bonds are outstanding nd unpaid, provided that the City reserves the right and p er to reduce the levies in the manner and to the extent permi ed by Minnesota Statutes, Section 475.61, Subdivision 3. 35 21. Gener Obli ation Pled e. For the prompt and 36 full payment of the rincipal and interest on the Bonds, as the 37 same respectively ecome due, the full faith, credit and taxing 38 powers of the Cit shall be and are hereby irrevocably pledged. 39 If the balance i the special account relating to the Bonds in 40 the Debt Servic Fund (as defined in paragraph 17 hereof) is ever 41 insufficient t pay all principal and interest then due on the 42 Bonds payable herefrom, the deficiency shall be promptly paid 43 out of any o er funds of the City which are available for such 44 purpose, in uding the general fund of the City and the Debt 346604.2 3 8 �� 85 E. SEVENTi9 PLACE SU37f f00 SA1M PAUL, MN 5 5 101-214 3 612-223-3000 FA7C:612-223-3002 � r7 — � c�5 SPRINGSTED PubGt Finana Advuors March 26, 1987 Mr. Joe Reid, Director Office of Financial Services City of Saint Paul 240 City Hali 15 West Kei{ogg Boufevard Saint Paui, MN 55102 Re: Recommendations for Award of City of Saint Paui's $17,500,000 General Obligation Capital Improvement Bonds {CIB), Series 1997A $2,450,000 General Obligation Street improvemeni Special Assessment Bonds, Series 19978 Dear Mr. Reid: This letter summarizes the results of the competitive bids opened at 10:30 this moming for these issues. Purpose of issues The purpose of this CiB issue is to provide funding for various ppitai improvements as part of the City's annuaf Capitai improvement Program, to inciude partial funding for the pubiic costs associated with the Science Museum and the Wabasha Bridge. The purpose of the Street issue is to fund portions of the City's annuai street improvement program. Tax-Exempt Interest Rate Market Since the first of the year, tax-exempt interest rates have moved in a relatively 6ght band, varying about 2/10's of 1% over the tertn: January 2, 1997 the SBl was 5.70°l0; the fow point was February 20, 1997 when the B8f was 5.56%. March 20, 1997 (the most recent date) the BBI was 5.78%. UUithin the last month, the numbers indicate the market movement has been up, with most such movement occurring in late February. The market is cuRenUy Iooking for bonds since the supply is low, which helped in this sale. SAINT PAUL, MN • MlN�JEAPOI�S, M,�' • BROOF�7E(D, WI • OVERL4ND PARK, KS • R:i4LL�GfON, DC • IOWA CIIY, IA City of Saint Paul March 26, 1997 Page 2 �� ,� 05 Sale Resuits The City received nine bids on the C1B sale. The bids were as follows: Rank Sidder Piper .laffray Hutchinson Shockey (Chicago) Merrili Lynch (Califomia) Dain Bosworth Cronin � Co. First of America (Chicago) Raymond James (Florida) Interstate Johnson (Georgia) Wittiam Btair (Chicago) TIC % 4.9497% 4.9950% 4.9988% 4.9994% 5.0251 % 5.U297% 5.0354°!0 5.0718% 5.0879% The lowest bid of 4.9497% was submitted by Piper Jaffray, with the next lowest bid from Hutchinson Shockey (Chicago) at 4.9950�0. The City received five bids on the street issue. The bids were as follows: Rank Bidder Piper Ja�fray Gronin 8� Go Dain Bosworth Raymond James William Blair TIC (%) 5.2181 °!o 5.2497% 5.2577% 5.3092% 5.3458% The lowest bid of 5.2181% was submitted by Piper Jaffray, with the next lowest bid from Cronin & Co (Twin Cities) at 5.2497%. The nine bids received on the CIB issue has o�ty been matched o�ce (nine b+ds were aiso received in 1995j by the City since 1385. The CIB issue received broad nationai attention with underwriters bidding from Chicago (3), Califomia (1), Florida (1), and Georgia (1). We require bidders to submit their bids on a"True Interest Rate" (TIC) basis, so as to reflect the present value of their bids and thereby ensure the City award based on the towest cost to the City. We have enGosed bid tabulation forms for each issue summarizing the bid specifics and composition of each underwriting syndicate. Recommendation We recommend awards of sale of the CIB issue and the Street issue to Piper Jaffray. Basis of Recommendation The interest rates received on each issue reflect aggressive bidding in today's market and compate we{{ with the City's recent historical experience. Focusing on the 1997 Cf B issue with its TIC of 4.94%, the City's experience for its GIB issues in 1995 and 1996 respectively of 5.14% and 4.81%. Our estimate of the City's interest rate on the CIB issue had the issue soid in eariy February was 4.92°k. We have compared this issue against other issues soid thus far City of Sair�t Paul ��-� O S March 26, 1997 Page 3 this week and the City has received lower i�te�est rates than these issues. We also monitor each of the City's issues against a daily national interest rate index, Deiphis-Hanover. These rates are at w slighUy better than the DelphisHanover "AAA"-rated interest rates. Historicaily, the City's issues seil beiween the Delphis Hanover "AA-to-AAA" levels, a performance matched by these issues. Yesterday, the Federal Reserve took action on short-tertn interest rates. Our analysis shows that the market had anticipated this action over the last few weeks and had already factored in an adjustrnent Credit Rating The City received three ratings of "Aa2lAA+lAA+^ from Moodys Investors Service, Standard & Poors and Fitch Investors Service, respectivety. The City put together an outstanding rating presentation for each agency as part of this saie process. Each agency noted numerous areas of improvement. We would be pieased to respond to the comments of the rating agencies resulting from this process. We are again appreciative of the opportunity to be of service to the City. V1/e weicome any questions or comments on this repost. Respectfuliy, a �,,�� ` �t-� - �,�1��d�, David N. MacGillivray / Principal Director of Project Management ldmf Enclosures �,� _�os W � N V p C N � t 0 � � � o m m A c � c � CN� R C Q � (p � O `o a Y � � N �� 0000000e Z r�O�I O� N N� ' 8� a N V V C-,In IA � In In � ��e�`� � � �� ���� � ���� = o �a��3eaaeae�aa�-a°a�a°��� �:�n in �n in �n in o�n �n �n o�n �n p � �ncei�i<onmrno��acnvc in � � O O - d .S .� 17 '7 V V' V V' C �fJ ip 1n 1[j 1n N� 1D ID lri � �U�a y � - .. � - � in c ,'� � . - . _ - . . . t ° r0 �i m�'�� ¢ R 2 y � o� o d° o 0 0 � � o 0 0 0 0 3e N�O O O O O O f L Q N i n u 1 O 1 n O F C NCti)t41�O��ZZ� N(7 V' � ln QU NUQ C Q T7Q' V QQ Ntn NIn�1p � � C� Q7 i - _, N O � � a � e�N 3� ¢ �d�� 2 � � � - o 0 0 3� o o � o 0 0 0 0 Q { nN V �i�O�Z�mOO� p C {`�-Q'd'RQ V V Q 1n Inln N � �� I � M t ��(� Q 05 Q � 0 0 o a°000000000 0 0 00 v�,n,n�r,�s¢¢¢¢s¢oin o ¢s m�n�ot�ZZZ22ZZZ?Q���ZZ � � �<�� ����� � ������ N 0 Y � _ � N V � � � - - M � � � Q O N Z y + 2� 3� 2� 2� b� 2� 2� 2� 2� D� 3� 2� �a�. N 1110 ��In In 000000 Of N� C Q C 0 W Q lq tD I� t0 6f O O � N � W 7 Q.�. � V`tl' V Q aT 'Q V IA In In IN N p mSII Q �������-».��.� �p �pCU 2e2e3e2e2e2eZe2e2�2e I i 000000in�noo me�v�n�cr.nmoo gt vvvvv�avviriui 1 I ri N t� m OJ O � N M V t(1 (O f� LO OI O � N C� C In SO f� � �m�88888S8oSSosbsosss � N N(V N N N N N N N N N N N N N N N �� 85 E. SEVENTH PIACE, S[I17E 100 SAI�7TPAUL,MN SSI01-2143 612-223-3000 FAX:61 2-2 2 3 3002 �� - SPRINGSTED Public Finmue Advisors � $17,500,000 CiTY OF SAIlVT PAUL, MIlVNESOTA GENERAL OBLIGATION CAPTfAL IMPROVEMENT BONDS, SERIES 1997A BQOK EIVTRY ONLi� AWARD: PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MII,LER & SCHROEDER FINANCIAL, INC. AND ASSOCIATES SALE: 3.85 % 4.30 % 4.40% 4.50 % 4.60 % 4.70% 4.75 % 4.85 % 5.00% Interest Net Interest TY�ue Interest Bidder Rates Price Cocr Rate PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MILLER & SCHROEDER FINANCIAL, INC. John G. Kinnazd & Company Incorporated Juran & Moody, a division of Miller, Johnson & Kuehn,Inc. The GMS Group Dougherty Dawkins, Inc. Peterson Financial Corporation HUTCHINSON,SHOCKEY,ERLEY & COMPANY MORGAN KEEGAN & CO., INC. Mesirow Financial Inc. SARJT PAUL, MN � MINNEAPOLIS, MN March 26, 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 Moady's Rating: Aa2 Standard & Poor's Rating: AA+ Fitch's Rating: AA+ $17,354,238.25 $5,008,885.71 4.949790 4.50% 1998 $17,408,826.50 $5,060,258.92 4.75% 1999-2003 4.80% 2004 4.90% 2005 5.00% 2006 5.10% 2007 BROOKF[ELD, WI � OVERLAND PARK. KS � WASH7NGCON, DC � lOWA CiCY, IA 4.9950% (Continued) Intecest Net Interest True Interest Bidder Ra es Price (' Rate MERRILL LYNCH & CO. Securities Corporation of Iowa DAIN BOSWORTH INCORPORATED PRUDENTIAL SECURITIES, INC. ABN AMRO SECURTTIES (USA) INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC, OPPEM-IEIMER & CO., INC. PAINEWEBBERINCORPORATED DEAN WITTER REYNOLDS INCORPORATED CRONIN & COMPANY, INCORPORATED SMITH BARNEY FIRST OF AMERICA SECUI2ITIES RAYMOND JAMES & ASSOCIATES INTERSTATE/JOHNSON LANE CORP 4.00% 1998 4.50°,b 1999-2001 4.60% 2002 4.70 % 2003 4.80 % 2004 5.00% 2005-2007 4.50 % 1998-2000 4.60% 2001 4.70% 2002 5.00% 2003-2007 3.95% 4.30% 4.50 % 4.60% 4.65 % 4.75 % 4.85 % 4.90 % 5.00 % 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 4.00 % 4.30 % 4.45 % 4.60% 4.70 % 4.80% 4.90� 5.00 % 1998 1999 2000 2001 2002 2003 2004 20p5-2007 4.00% 1998 4.375 % 1999 4.75 % 2000 4.80 %a 200I 5.00% 20p2-2006 5.10% 2007 4.75% 1998-?A02 4.85% 2003 4.90 % 2004 5.00% 2005 5.10°k 2006 5.125 % 2007 517,348,556.25 517,415,525.50 $I7,327,250J5 $17,347,955.50 $17,436,6I9.50 $17,398,150.00 $5,056,214.58 $5,067,368.25 $5,078,182.58 $5,087,003.85 $5,107,254.15 $5,136,369.27 4.9988 % 4.9994 �7 5.0251 % 5.0297�/ 5.035490 SA7I8 `70 (Continued) ci� - 3n5 Interest Net Interest True Interest Bidder Rates Price ost Rate WILLIAM BLAIR & COMPANY ROBERT W. BAIRD & COMPANY, INCORPORATED 3.80% 4.35% 4.55 % 4.65 % 4.75% 4.80 % 4.90 % 5.00 % 5.10% REOFFERING 5CHEDULE OF THE PURCHASER Rate Year NRO Paz 4.45 % 4.55 % 4.65 % 4.75 % 4.80 % 4.90 % Paz 5.10% Yield 3.85% 4.30 % 4.40 % 4.50% 4.60 % 4.70 % 4.75 % 4.85% 5.00 % 5.00 % 1998 1999 2000 2001 2002 2003 2004 2005-2006 2007 1998 1999 2000 2001 2002 2003 2004 zoos 2006 2007 $17,325,162.00 $5,141,816.13 5.0879`7a BBI: 5.78% Average Maturity: 5.80 Yeus �� 8i E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN SS10I-2I43 612-223-3000 FAX: 612-223-3002 � � , �os SPRINGSTED Public Fi�uaice Advisors $2,450,000 CPl'P OF SAINT PAUL, MINNESOTA GENERAI, OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS, SERIES 1997B BOOK ENTRY ONLI� AWARD: PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. 1�IILLER & SCHROEDER FINANCIAL, INC. AND ASSOCIATES SALE: March 26, 1997 Moody's Rating: Aa2 Standard & Poor's Rating: AA+ Fitch's Rating: AA+ Interest Net Interest True Interest Bidder Rates Price ost Aate PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MILLER & SCHROEDER FINANCIAL, INC. John G. Kinnazd & Company Incorporated Juran & Moody, a division of Miller, Iohnson & Kuehn,Inc. The GMS Group Dougherty Dawkins, Inc. Peterson Financial Corporation CRONIN & COMPANY, INCORPORATED SMITH BARNEY 4.30% 4.45% 4.55% 4.65 % 4.75 % 4.80% 4.90 % 5.00 % 5.10% 5.20 % 1998-1999 2000 2001 2002 2003 2004 2005 2006-2007 2008 2009 $2,425,667.50 4.00 °k 430% 4.50 % 4.60% 4.65% 4.75 % 4.85 % 4.90 % 5.00 % 5.15 % 5.25 % 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 2008 2009 $2,425,735.50 $1,018,1�2.08 $1,024,780.13 5.2181 % 5.2497 % (Continued) SAMT PAUG MN � M[NNEAPOLIS, MN � BROOKFIELD, WI � OVERLAND PARK, KS � WASHINGTON. DC �[OWA C17Y. IA Interest Net Interest True Interest Bidder Rates Price ('n� Rare DAIN BOSWORTH INCORPORATED PRUDENTIAL SECURITIES, INC. ABN AMRO SECURITIES (USA) INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. OPPENHEIMER & CO., INC. PAINEWEBBERINCORPORATED DEAN WITTER REYNOLDS INCORPORATED RAYMOND JAMES & ASSOCIATES WILLIAM BLAIR & COMPANY ROBERT W. BAIRD & COMPANY, INCORPORATED 4.50 % 4.60 % 4.70 % 4.80 % 4.90 % 5.00 % 5.10 % 5.25 % 4.00 % 430% 4.60 % 4.75 % 4.80� 4.90 % 5.0p% 5.10% 5.20% 5.25 % 5.30 % 3.80% 4.35 % 4.55 % 4.65 % 4.75 % 4.85 % 4.90 % 5.00 % 5.10% 5.20% 5.25 % 5.35 % 1998-2000 Z001 2002 2003 2004 2005-2006 2007-2008 2009 1998 1999 2000 2001 2002 2003 2004 2005-2006 2007 2008 2009 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $2,428,288.00 $2,428,941.75 $2,425,512.75 REOFFERING SCHEDULE OF THE PURCHASER 0 430% 430�0 4.45 % 4.55 % 4.65 % 4.75 % 4.80 % 4.90 % 5.00 % 5.00 % 5.10% 5.20 % � 1998 1999 2000 2001 2002 2003 2004 20p5 2006 2007 2008 2009 � NRO Paz Paz Paz Paz Pu Paz Paz Paz 5.10% 5.15 % 5.25 % $1,026,435.96 $2,037,Q70.75 $1,043,820.58 5.2577 % 53092% 5.3458 % BBI: 5.78 ° ,6 Average Maturity: 8.00 Yeazs �e�d �dloa � �_� � � I � � � � �� � � � � � � � � � �., � �: � � � � i�l � � i� v .�y � � ...y A o ° � �/ J � � � � V � O . `�1� � � � � � � � _�. � �:a��7 �&� ';aA�e �.bw we8�a�� ou �aaiao b� 'r,� 3�0 E� , � 17 n �0 � O V O �.G � 044 �' �t{ L{Q N� p� 6 � 9 O3 � 'a ' 'S c �,'a 6 � w � a N s° � a ^ . u 4� y u n w a��n _� O Y �(A �.. p a �^G O ��'S w n'a :� " 9 C, �� u�3 C-� q V ; M a�,'mu�° ��� o e0 �� G''S �2 C c =uc3 y�' u u'�oEcT�'�ie+� q �v��a Ua�+'�a ��^u•� 'e..c E e<o C=a �a.... , u�•'g�N�o��'�9 Q alaax.�. �^L°wu o�n an��g� >.�v . �L'U'�e� �.'n•^•u'��'.�w` 5 ' o °AL `°� �>° $ � «��i�'»g�a� '�g ' , ' , ' ,yqyqyq ppp �B `� „���=�-E s• �� �� 0 1� u����rop `s i� � O F����b ns`.7 laE�q�a�C u '`cj0.�p'3d e ? � 7 C^ 3 u �i ~ n � 3 U y S'� 'O Y � 00 �� n O i L.7 � w �o + au a° � = °� 9� .^ p� � v°'.`c''v" � 2aa� w`'Oa O °°`=,o� � J�wG� .L CC�yk...• • p�c ��a��.�SCd�O����q � y �}��. { c y ��yFY��CMU �'4YOEY^�COUg`a9{�� ]� Y � y._Cpp q 7�� P fL ��� O� +� b(f � � N�•��'O jC x +•> u 3'f'� C a L y h'd V1 Y 0. 4 �� N � U � �. d11 a 4. �c 00� J " w E" 3 t..� V a a Q C N� a 4wNC� G.�.� O.:.S �u. �RGKA'�o�Z �.�bac �a ` ���'nc c�� � 00 T u !0 a� . bp'� i 00 Q � = een °a'_o, b.ta _�a7J ` � a c;; � Yiv�.- � y�q u .�iJ� �p9 e w =. eri g � -; x � 3 �i� 9�3�5 �°.'a� " b S.-.h �( $ � ° e a n a UD a. uo.. w�=� a y�,��� �°� �9��� S �, ° ���i..5'1 � d�>uo� 3 �=��a� �08���.°�� ,���Eq� � '�����Y a n=a�� � s ° s g�� - �c� �8.�����ao�.0.s�sh� 8 u e (/! ��r 8 �- b a��.. W m � � a ��FO ya'-.CF� O F�-�i 6 O.Q. 9� R w � A V i 6'�] .Y .°. $ C •; . �Qtl� � �'.�`o w � ��� �9 �Q '�i � .Q 9 � V B� � p � �a� O.� ��_�� s� u ���a� e fl,aa.3 "����.� Q ����°�a J �. � � � R .�,������ �.�-� ��� Y .9 S�� � n a � u u � u�� 6 g3'r � �iw y Q � 6 O yZ'Ly b �a a ,q9 e « � �� � ' = ..Y•= � °��� Q C G C e� 5� ��T�� ��� B�S�n a� � °' a : `•''.� ° 9� � e < � ,.u. 5 9 `� u �,�o�3e u2 �� °or tl ;o��� w� ��+� ' � � PG�P� a '�+.� e P � O � � �i .� � y �' •� • w �y ��r i � p O -Y txs'-.�U �Ge� 'Y'Y.�.a�0 eu tie0. � c�>•�',��7'" � C u � N Q�� 7� �,� yy A i � O O � • V ti a a a V p� w� Y P C� y" ��,.'$a `���o� q w v= p � p 5 u g K O Y � ,VO I� g� Y�V� 4 � ST O a M< U nF�T������ pp��� T 9 ��`" E ���`���".� �' ! � i f � � n4 — % 6 e . i t � R�.z.�..� �� 3��^i a 3'7 � 3 8' n a,.. -�t��(a7 PAUL, MIN Preserted By Referred To Councii File # � �� Green Sheet # —` �� Committee: Date ��/ 1 2 3 4 5 ACCEPTING PROPOSAL ON SALE OF $2,450,000 GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS, SERIES 1997B, PROVIDIY3G FOR THEIR ISSUANCE, AND LEVYIAIG A TAX FOR THE PAYMENT THEREOF 6 WHEREAS, the Director, Office of Financial Services, 7 has presented proposals received for the sale of $2,450,000 8 General Obligation Street Improvement Special Assessment Bonds, 9 Series 1997B (the "Bonds"), of the City of Saint Pau1, Minnesota 10 (the "City"}; and 11 WHEREAS, the proposals set forth on Exhibit A attached 12 hereto were received pursuant to the Terms of Proposal at the 13 offices of Springsted Incorporated at 10:30 A.M., Central Time, 14 this same day; and 15 WHEREAS, the Director, Office of Financial Services, 16 has advised this Council that the proposal of 17 � � ���.�,i ,,L/�G_ was found to be the most advantageous 18 an has recomm�that said proposal be accepted; and 19 WHEREAS, the proceeds of the Bonds will finance certain 2o street improvements to be specially assessed, for which the City 21 is proceeding pursuant to its Charter and not Minnesota Statutes, 22 Chapter 429, with any excess to be used for any other purpose 23 permitted by law; and q7 3�� 1 WHEREAS, the City has heretofore issued registered 2 obligations in certificated form, and incurs substantial costs 3 associated with their printing and issuance, and substantial 4 continuing transaction costs relating to their payment, transfer 5 and exchange; and 6 WHEREAS, the City has determined that significant 7 savings in transaction costs will result from issuing bonds in 8 "global book-entry £orm", by which bonds are issued in 9 certificated form in large denominations, registered on the books 10 of the City in the name of a depository or its nominee, and held il in safekeeping and immobilized by such depository, and such 12 depository as part of the computerized national securities 13 clearance and settlement system (the "National System") registers 14 transfers of ownership interests in the bonds by making 15 computerized book entries on its own books and distributes 16 payments on the bonds to its Participants shown on its books as 17 the owners of such interests; and such Participants and other 18 banks, brokers and dealers participating in the National System 19 will do likewise (not as agents of the City) if not the 20 beneficial owners of the bonds; anci 21 WAEREAS, "Participants" means those financial 22 institutions for whom the Depository effects book-entry transfers 23 and pledges of securities deposited and immobilized with the 24 Depository; and 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 WHEREAS, The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, or any of its successors or successors to its functions hereunder (the "Depository"), will act as such depository with respect to the Bonds except as set forth below, and the City has heretofore delivered a letter of representations (the "Letter of Representations") setting forth various matters relating to the Depository and its role with respect to the Bonds; and WHEREAS, the City will deliver the Bonds in the form of one certificate per maturity, each representing the entire principal amount of the Bonds due on a particular maturity (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 Depository book-ent exchanged registered 346604.2 date for WHEREAS, the City will be able to replace the or under certain circumstances to abandon the "global ry form" by permitting the Global Certificates to be for smaller denominations typical of ordinary bonds on the City's bond register; and "Replacement Bonds" 2 �� 3QS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 means the certificates representing the Bonds so authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and WHEREAS, "Holder" as used herein means the person in whose name a Bond is registered on the registration books of the City maintained by the registrar appointed as provided in paragraph 8 (the "Bond Registrar"); and WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits "participating underwriters" from purchasing or selling the Bonds unless the City undertakes to provide certain continuing disclosure with respect to the Bonds; and WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), public sale requirements do not apply to the Bonds if the City retains an independent financial advisor and determines to sell the Bonds by private negotiation, and the City has instead authorized a competitive sale without publication of notice thereof as a form of private negotiation; and 19 WHEREAS, proposals for the Bonds have been solicited by 20 Springsted Incorporated pursuant to an Official Statement and 21 Terms of Proposal therein: 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of Piper Jaffray, Inc. (the "PUrchaser"), to purchase $2,450,000 General Obligation Street Improvement Special Assessment Bonds, Series 1997B, of the City (the "Bonds", or individually a "Bond"), in accordance with the Terms of Proposal for the bond sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $2,425,667.50, 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, Office of Financial Services, or his designee, is directed to retain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts. 2. Title; Original Issue Date: Denominations; Maturities. The Bonds shall be titled "General Obligation Street Improvement Special Assessment Bonds, Series 1997B", shall be dated April 1, 1997, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R-1 upward. Global Certificates 346604.2 q 7 3czS 1 2 3 4 5 6 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 shall each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on March 1 in the years and amounts as follows: Year Amount 1998 1999 2000 2001 2002 2003 For purposes maturities of of C.he City' s Bonds, Series Year Amount $350,000 2004 $ 100,000 125,000 2005 100,000 100,000 2006 100,000 100,000 2007 100,000 100,000 2008 100,000 100,000 2009 1,075,000 of Minnesota Statutes, Section 475.54, the serial the Bonds are combined with the serial maturities $17,500,000 General Obligation Capital Improvement 1997A. 3. Pur�ose. The Bonds shall provide funds for the construction of various street improvements (the "Improvements") in the City, and any excess funds shall be devoted to any other purpose permitted by law. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 4. Interest. The Bonds shall bear interest payable semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 1997, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Year 1998 1999 2000 2001 20�2 2003 Interest Rate Maturit� Year Interest Rate 4.30a 4.30 4.45 4.55 4.65 4.75 2004 2005 2006 2007 2008 2009 4.80 4.90 5.00 5.00 5.10 5.20 40 5. Description of the Global Certificates and Global 41 Book-Entry System. Upon their original issuance the Bonds will 42 be issued in the form of a single Global Certificate for each 346604.2 9`7 3�� 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 maturity, deposited with the Depository by the Purchaser and immobilized as provided in paragraph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respective interests in the Bonds except as provided in paragraph 6. Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent transfers of beneficial ownership) of interests in the Global Certificates will be reflected by book entries made on the records of the Depository and its Participants and other banks, brokers, and dealers participating in the National System. `Phe 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 G1oba1 Certificates, and the Depository according to the laws and rules governing it will receive and forward payments on behalf of the beneficial owners of the Global Certificates. Payment of principal of, premium, if any, and interest on a Global Certificate may in the City�s discretion be made by such other method of transferring funds as may be requested by the Holder of a Global Certificate. 6. Immobilization of Global Certificates bv the Deoositorv: Successor Depository: Replacement Bonds. Pursuant to the request of the Purchaser to the Depository, which request is required by the Terms of Proposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository. The G1oba1 Certificates sha11 be in typewritten form or otherwise as acceptable to the Depository, shall be registered in the name of the Depository or its nominee and shall be held immobilized from circulation at the offices of the Depository on behalf of the Purchaser and subsequent bondowners. The Depository or its nominee wi11 be the sole holder of record of the Global Certificates and no investor or other party purchasing, selling or otherwise transferring ownership of interests in any Bond is to receive, hold or deliver any bond certificates so long as the Depository holds the Global Certificates immobilized from circulation, except as provided below in this paragraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transferred or exchanged except: (i) Upon registration of transfer of ownership of a Global Certificate, as provided in paragraph 12, 346604.2 5 97 �3ds 1 (ii) To any successor of the Depository (or its 2 nominee) or any substitute depository (a "substitute 3 depository") designated pursuant to clause (iii) of this 4 subparagraph, provided that any successor of the Depository 5 or any substitute depository must be both a"clearing 6 corporation" as defined in the Minnesota Uniform Commercial 7 Code at Minnesota Statutes, Section 336.8-102, and a 8 qualified and registered "clearing agency" as provided in 9 Section 17A of the Securities Exchange Act o£ 1934, as 10 amended, 11 (iii) To a substitute depository designated by and 12 acceptable to the City upon (a) the determination by the 13 Depository that the Bonds shall no longer be eligible for 14 its depository services or (b) a determination by the City 15 that the Depository is no longer able to carry out its 16 functions, provided that any substitute depository must be 17 qualified to act as such, as provided in clause (ii) o£ this 18 subparagraph, or 19 (iv) To those persons to whom transfer is requested 20 in written transfer instructions in the event that: 21 (a) the DeposiCory shall resign or discontinue 22 its services for the Bonds and the City is unable to 23 locate a substitute depository within two (2) months 24 following the resignation or determination of non- 25 eligibility, or 26 (b) upon a determination by the City in its sole 27 discretion that (1) the continuation of the book-entry 28 system described herein, which precludes the issuance 29 of certificates (other than Global Certificates) to any 30 Holder other than the Depository (or its nominee), 31 might adversely affect the interest of the beneficial 32 owners of the Bonds, or (2) that it is in the best 33 interest of the beneficial owners of the Bonds that 34 they be able to obtain certificated bonds, 35 in either of which events the City shall notify Holders of 36 its determination and of the availability of certificates 37 (the "Replacement Bonds") to Holders requesting the same and 38 the registration, transfer and exchange of such Sonds will 39 be conducted as provided in paragraphs 9B and 12 hereof. 40 In the event of a succession of the Depository as may 41 be authorized by this paragraph, the Bond Registrar upon 42 presentation of Global Certificates shall register their transfer 43 to the substitute or successor depository, and the substitute or 44 successor depository shall be treated as the Depository for all 346604.2 6 97 �3d� purposes and functions under this Representations shall not apply to depository unless the City and the depository so agree, and a similar resolution. The Letter of a substitute or successor substitute or successor agreement may be entered into. 7. Redemption. � 10 11 12 13 14 15 16 17 18 19 20 (a) Optional Redemption; Due Date. All Bonds maturing after March 1, 2005, 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 Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof oalled for redemption sha11 be due and payable on the redemption date, and interest thereon sha11 cease to accrue from and after the redemption date. 21 (b) Notation on Global Certificate. Upon a reduction in 22 the aggregate principal amount of a Global Certificate, the 23 Holder may malce a notation of such redemption on the panel 24 provided on the Global Certificate stating the amount so 25 redeemed, or may return the Global Certificate to the Bond 26 Registrar in exchange for a new Global Certificate authenticated 27 by the Bond Registrar, in proper principal amount. Such 28 notation, if made by the Holder, shall be for reference only, and 29 may not be relied upon by any other person as being in any way 30 determinative of the principal amount of such Global Certificate 31 outstanding, unless the Bond Registrar has signed the appropriate 32 column of the panel. 33 (c) Selection of ReAlacement Bonds. To effect a partial 34 redemption of Replacement Bonds having a common maturity date, 35 the Bond Registrar prior to giving notice of redemption shall 36 assign to each Replacement Bond having a common maturity date a 37 distinctive number for each $5,000 of the principal amount of 38 such Replacement Bond. The Bond Registrar shall then select by 39 lot, using such method of selection as it shall deem proper in 40 its discretion, from the numbers so assigned to such Replacement 41 Bonds, as many numbers as, at $5,000 for each number, shall equal 42 the principal amount of such Replacement Bonds to be redeemed. 43 The Replacement Bonds to be redeemed shall be the Replacement 44 Bonds to which were assigned numbers so selected; provided, 45 however, that only so much of the principal amount of each such 46 Replacement Bond of a denomination of more than $5,000 shall be 346604.2 7 ����5 1 redeemed as shall equal $5,000 for each number assigned to it and 2 so selected. 3 (d) Partial Redemt�tion of Replacement Bond. If a 4 Replacement Bond is to be redeemed only in part, it shall be 5 surrendered to the Bond Registrar (with, if the City or Bond 6 Registrar so requires, a written instrument of transfer in form 7 satisfactory to the City and Bond Registrar duly executed by the 8 Holder thereof or his, her or its attorney duly authorized in 9 writing) and the City shall execute (if necessary) and the Bond 10 Registrar shall authenticate and deliver to the Holder of such 11 Replacement Bond, without service charge, a new Replacement Bond 12 or Bonds of the same series having the same stated maturity and 13 interest rate and of any authorized denomination or 14 denominations, as requested by such Holder, in aggregate 15 principal amount equal to and in exchange for the unredeemed 16 portion of the principal of the Bond so surrendered. 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 (e) Request for RedemAtion. The Bond Registrar shall ca11 Bonds for redemption and payment as herein provided upon receipt by the Bond Registrar at least £orty-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 f.S.] 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: 35 36 37 3S 39 40 41 42 346604.2 (i) The redemption date; (ii) The redemption price; (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, 0 �� 3S 1 and that interest thereon sha11 cease to accrue 2 from and after said date; and 3 (v) The place where such Bonds are to be surrendered 4 for payment of the redemption price (which shall 5 be the office of the Bond Registrar}. 6 (g) Notice to Depositorv. Notices to The Depository Trust 7 Company or its nominee shall contain the CUSIP numbers of the 8 Bonds. If there are any Holders of the Bonds other than the 9 Depository or its nominee, the Bond Registrar shall use its best 10 efforts to deliver any such notice to the Depository on the 11 business day next preceding the date of mailing of such notice to 12 all other Holders. 13 8. Bond Registrar. First Trust National Association, 14 in Saint Paul, Minnesota, is appointed to act as bond registrar 15 and transfer agent with respect to the Bonds (the "Bond 16 Registrar��), and shall do so unless and until a successor Bond 17 Registrar is duly appointed, a11 pursuant to any contract the 18 City and Bond Registrar shall execute which is consistent 19 herewith. A successor Bond Registrar shall be an officer of the 20 City or a bank or trust company eligible for designation as bond 21 registrar pursuant to Minnesota Statutes, Chapter 475, and may be 22 appointed pursuant to any contract the City and such successor 23 Bond Registrar shall execute which is consistent herewith. The 24 Bond Registrar shall also serve as paying agent unless and until 25 a successor paying agent is duly appointed. Principal and 26 interest on the Bonds shall be paid to the Holders (or record 27 holders) of the Bonds in the manner set forth in the forms of 28 Bond and paragraph 14 of this resolution. 29 9. Forms of Bond The Bonds shall be in the form of 30 Global Certificates unless and until Replacement Bonds are made 31 available as provided in paragraph 6. Each form of bond may 32 contain such adclitional or different terms and provisions as to 33 the form of payment, record date, notices and other matters as 34 are consistent with the Letter of Representations and approved by 35 the City Attorney. 36 A. Global Certificates. The Global Certificates, 37 together with the Certificate of Registration, the Register of 38 Partial Payments, the form of Assignment and the registration 39 information thereon, shall be in substantially the following form 40 and may be typewritten rather than printed: 346604.2 9 9� �3�-� 2 3 4 5 6 R- 7 8 9 INTEREST 10 RATE il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BOND, SERIES 1997B MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP March 1, REGISTERED OWNER: PRINCIPAL AMOTJNT: DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "ISSUer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above or on the certificate of registration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the 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, 1997, 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 in , Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer; provided, however, that upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion be paid without presentation of this Bond, which payment shall be received no later than 2:30 p.m., Eastern time, and may make a notation on the panel provided herein of such redemption, stating April l, 1997 346604.2 1 0 q� 3�S 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 the amount so redeemed, or may return the Bond to the Bond Registrar in exchange for a new Bond in the proper principal amount. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being in any way determinative of the principal amount of this Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 2:30 p.m., Eastern time, to Che person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the "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 sha11 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. Date of Pavment Not Business Dav. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New York, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Redemotion. All Bonds maturing after March 1, 2005, are prepayment at the option of the Issuer day thereafter at a price of par plus Redemption may be in whole or in part prepayment. If redemption is in part, unpaid may be prepaid in such order of amount per maturity as the City shall of the Bonds having a common maturity 34b604.2 of this issue (the "Bonds") subject to redemption and 11 on such date and on any accrued interest. of the Bonds subject to those Bonds remaining maturity and in such determine; and if only part date are called for 97��5 1 prepayment, 2 principal. 3 be due and 4 shall cease this Bond may be prepaid in $5,000 increments of Bonds or portions thereof called for redemption shall payable on the redemption date, and interest thereon to accrue from and after the redemption date. 5 Notice of Redemption. Mailed notice of redemption 6 shall be given to the paying agent (if other than a City officer) 7 and to each affected Holder of the Bonds. In the event any of 8 the Bonds are called for redemption, written notice thereo£ will 9 be given by first class mail mailed not less than thirty (3�) 10 days prior to the redempCion date to each Holder of Bonds to be 11 redeemed. In connection with any such notice, the "CL3SIP" 12 numbers assigned to the Bonds shall be used. 13 Renlacement or Notation of Bonds after Partial 14 Redemption. Upon a partial redemption of this Bond which results 15 in the stated amount hereof being reduced, the Holder may in its 16 discretion make a notation on the panel provided herein of such 17 redemption, stating the amount so redeemed. Such notation, if 18 made by the Holder, shall be for reference only, and may not be 19 relied upon by any other person as being in any way determinative 20 of the principal amount of the Bond outstanding, unless the Bond 21 Registrar has signed the appropriate column of the panel. 22 Otherwise, the Holder may surrender this Bond to the Bond 23 Registrar (with, if the Issuer or Bond Registrar so requires, a 24 written instrument of transfer in form satisfactory to the Issuer 25 and Bond Registrar duly executed by the Holder thereof or his, 26 her or its attorney duly authorized in writing) and the Issuer 27 shall execute (if necessary) and the Bond Registrar shall 28 authenticate and deliver to the Holder of such Bond, without 29 service charge, a new Bond of the same series having the same 30 stated maturity and interest rate and of the authorized 31 denomination in aggregate principal amount equal to and in 32 exchange for the unredeemed portion of the principal of the Bond 33 so surrendered. 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Issuance; Purpose; General Obliaation. This Bond is one of an issue in the total principal amount of $2,450,000, 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 confor,mity with the Constitution and laws of the State of Minnesota and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 26, 1997 (the "Resolution"), for the purpose of providing money to finance the construction of various street improvements in the City. This Bond is payable out of a special account relating to the Bonds in the General Obligation Special Assessments -- Streets Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt 346604.2 12 �� �� 8 9 10 il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 and full payment of its princigal, when the same become due, the full powers of the Issuer have been and pledged. premium, if any, and interest faith and credit and taxing are hereby irrevocably Denominations; Exchanae; Resolution. The Bonds are issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. G1oba1 Certificates are not exchangeable for fully registered bonds of smaller denominations except to evidence a partial prepayment or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, are issuable solely as fully registered bonds in the denominations o£ $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Renlacement Bonds. Replacement Bonds may be issued by the Issuer in the event that: (a) the Depository shall resign or discontinue its services for the Bonds, and only if the Issuer is unable to locate a substitute depository within two (2) months following the resignation or determination of non- eligibility, or (b) upon a determination by the Issuer in its sole discretion that (1) the continuation of the book-entry system described in the Resolution, which precludes the issuance of certificates (other than Global Certificates) to any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds. 40 Transfer. This Bond shall be registered in the name of 41 the payee on the books of the Issuer by presenting this Bond for 42 registration to the Sond Registrar, who wi11 endorse his, her or 43 its name and note the date of registration opposite the name of 44 the payee in the certificate of registration attached hereto. 45 Thereafter this Bond may be transferred by delivery with an 346604.2 1 3 q7 �s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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 Sond-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. 16 Fees upon Transfer or Loss. The Bond Registrar may 17 require payment of a sum sufficient to cover any tax or other 18 governmental charge payable in connection with the transfer or 19 exchange of this Bond and any legal or unusual costs regarding 20 transfers and lost Bonds. 21 22 23 24 25 26 27 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 o£ receiving payment as herein provided (except as otherwise provided with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. 28 Authentication This Bond shall not be valid or become 29 obligatory for any purpose or be entitled to any security unless 30 the Certificate of Authentication hereon shall have been executed 31 by the Bond Registrar. 32 Not Qualified Tax-Exempt Obliaations. The Bonds have 33 not been designated by the Issuer as "qualified tax-exempt 34 obligations" for purposes of Section 265(b)(3) of the federal 35 Internal Revenue Code of 1986, as amended. The Bonds do not 36 qualify for such designation. 37 IT IS AEREBY CERTIFIED AND RECITED that all acts, 38 conditions and things required by the Constitution and laws of 39 the State of Minnesota and the Charter of the Issuer to be done, 40 to happen and to be performed, precedent to and in the issuance 41 of this Bond, have been done, have happened and have been 42 performed, in regular and due form, time and manner as required 43 by 1aw, and that this Bond, together with a11 other debts of the 44 Issuer outstanding on the date of original issue hereof and on 45 the date of its issuance and delivery to the original purchaser, 346604.2 14 9� ��S 1 does not exceed any constitutional or statutory or Charter 2 limitation of indebtedness. 3 IN WSTNESS WHEREOF, the City of Saint Paul, Ramsey 4 County, Minnesota, by its City Council has caused this Bond to be 5 sealed with its official seal and to be executed on its behalf by 6 the photocopied facsimile signature of its Mayor, attested by the 7 photocopied facsimile signature of its Clerk, and countersigned 8 by the photocopied facsimile signature of its Director, Office of 9 Financial Services. 346604.2 1 5 �� �� 1 2 3 4 Date of Registration Registrable by: Payable at: _ 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTHENTICATION 8 This Bond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 15 , 16 Bond Registrar 17 18 19 20 21 22 23 24 By Authorized Signature (SEAL) CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Street Improvement Special Assessment Bond, Series 1997B, No. R- 346604.2 � �.>� FI 2 3 4 � 7 0 �] 10 11 12 CERTIFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Bond may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF REGISTRATION REGISTERED OWNER SIGNATURE OF BOND REGIS'I'RAR 346604.2 17 �� �� � 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 REGISTER OF PARTIAI, PAYMENTS The principal amount of the attached Bond has been prepaid on the dates and in the amounts noted below: Signature of Signature of Date Amount Bondholder Bond Reaistrar If a notation is made on this register, such notation has the effect stated in the attached Bond. Partial payments do not require the presentation of the attached Bond to the Bond Registrar, and a Holder could fail to note the partial payment here. 346604.2 F[1 ���� 1 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 SNT - as tenants by the entireties 7 JT TEN - as joint tenants with right of survivorship 8 and not as tenants in common 9 UTMA - as custodian for 10 (Cust) (Minor) 11 under the Uniform Transfers 12 (State) 13 to Minors Act 14 Additional abbreviations may also be used 15 though not in the above 1ist. 346604.2 1 9 �� .�s � 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the attached Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without alteration or any change whatever. Signature Guaranteed: 17 Signature(s) must be guaranteed by a national bank or trust 18 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 22 23 24 25 26 27 28 The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 346604.2 L�d�] 9�7-3 �S 1 B. Replacement Bonds. If the City has notified 2 Holders that Replacement Bonds have been made available as 3 provided in paragraph 6, then for every Bond thereafter 4 transferred or exchanged (including an exchange to reflect the 5 partial prepayment of a Global Certificate not previously 6 exchanged for Replacement Bonds) the Bond Registrar shall deliver 7 a certificate in the form of the Replacement Bond rather than the 8 Global Certificate, but the Holder of a Global Certificate shall 9 not otherwise be required to exchange the Global Certificate for 10 one or more Replacement Bonds since the City recognizes that some 11 beneficial owners may prefer the convenience of the Depository's 12 registered ownership of the Bonds even though the entire issue is 13 no longer required to be in global book-entry form. The 14 Replacement Bonds, together with the Bond Registrar's Certificate 15 of Authentication, the form of Assignment and the registration 16 information thereon, shall be in substantially the following 17 form: 346604.2 2 1 97 3�� UNITED STATES OF AMERICA STATE OF MINNfiSOTA RAMSEY COUNTY CITY OF SAINT PAUL 5 R- 6 7 8 INTEREST 9 RATE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 GENERAL OBLIGATION STREET IMPROVEMEA7T SPECIAL ASSESSMENT BOND, SERIES 1997B MATURITY DATE OF DATE ORIGINAL ISSUE April 1, 1997 REGISTERED OWNER: PRINCIPAL AMOUNT: $ CUSIP DOLLARS KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or 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, 1997, 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 Sond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar monCh preceding such Interest Payment Date (the '�Regular Record Date'�). Any interest not so timely paid shall cease to be payable to the 346604.2 ' 2 2 97 3S 1 person who is the Holder hereof as of the Regular Record Date, 2 and shall be payable to the person who is the Holder hereof at 3 the close of business on a date (the "Special Record Date��) fixed 4 by the Bond Registrar whenever money becomes available for 5 payment of the defaulted interest. Notice of the Special Record 6 Date shall be given to Bondholders not less than ten days prior 7 to the Special Record Date. The principal of and premium, if 8 any, and interest on this Bond are payable in lawful money of the 9 United States of America. 10 11 12 13 14 15 16 17 18 19 20 21 aa 23 24 25 26 27 28 29 30 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date o£ its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by its City Council has caused this Bond to be sealed with its official seal or a facsimile thereof and to be executed on its behalf by the original or facsimile signature o£ its Mayor, attested by the original or facsimile signature of its Clerk, and countersigned by the original or facsimile signature of its Director, Office of Financial Services. 346604.2 2 3 r7 ��� 1 2 3 4 Date of Registration Registrable by: Payable at: _ _ 5 BOND REGISTRAR'S 6 CERTIFICATE OF 7 AUTIiENTICATI0A7 8 This Hond is one of the 9 Bonds described in the 10 Resolution mentioned 11 within. 12 13 14 , 15 Bond Registrar 16 17 18 19 By Authorized Signature 20 (SEAL) 3466D4.2 CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Attest: City Clerk Countersigned: Director, Office of Financial Services 24 ��-3a� ON REVERSE OF BOND 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Date of Payment Not Business Day. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New York, New York, or the city where the principal office of the Bond Registrar is located are authorized by law or executive order to close, then the date for such gayment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. Redemption. All Bonds of this issue (the "Bonds") maturing after March 1, 2005, are subjeCt to redemption and prepayment at the option of the Issuer on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be prepaid in such arder 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 specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall Cease to acCrue from and after the redemption date. 27 Notice of Redemption. Mailed notice of redemption 28 shall be given to the paying agent (if other than a City officer) 29 and ta each affected Holder of the Eonds. In the event any of 30 the Bonds are called for redemption, written notice thereof will 31 be given by first class mail mailed not less than thirty (30) 32 days prior to the redemption date to each Holder of Bonds to be 33 redeemed. In connection with any such notice, the "CUSIP" 34 numbers assigned to the Bonds shall be used. 35 Selection of Bonds for Redemption. To effect a partial 36 redemption of Bonds having a commpn 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 Sond 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; 34b604.2 2 5 9'7 .��5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Aolder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose: General Obligatian. This Bond is one of an issue in the total principal amount of $2,450,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and the CharCer of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 26, 1997 (the "Resolution"), for the purpose of providing money to finance the construction of various street improvements in the City. This Bond is payable out of a special account relating to the Bonds in the General Obligation Special Assessments -- Streets Debt Service Fund of the Issuer. This Bond Constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations: Exchange: Resolution. The Bonds are issuable solely as fully registered bonds in the denominations of $5,0�0 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. ReferenCe is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. 346604.2 26 � / J � 1 Transfer. This Bond is transferable by the Holder in 2 person or by his, her or its attorney duly authorized in writing 3 at the principal office of the Bond Registrar upon presentation 4 and surrender hereof to the Bond Registrar, all subject to the 5 terms and conditions provided in the Resolution and to reasonable 6 regulations of the Issuer contained in any agreement with, or 7 notice to, the Bond Registrar. Thereupon the Issuer shall 8 execute and the Bond Registrar shall authenticate and deliver, in 9 exchange for this Bond, one or more new fully registered Bonds in 10 the name of the transferee (but not registered in blank or to 11 "bearer" or similar designation), of an authorized denomination 12 or denominations, in aggregate principal amount equal to the 13 principal amount of this Bond, of the same maturity and bearing 14 interest at the Same rate. 15 Fees upon Transfer or Loss. The Bond Registrar may 16 require payment of a sum sufficient to cover any tax or other 17 governmental charge payable in connection with the transfer or 18 exchange of this Bond and any legal or unusual costs regarding 19 transfers and lost Bonds. 20 Treatment of Reaistered Owner_ The Issuer and Bond 21 Registrar may treat the person in whose name this Bond is 22 registered as the owner hereof for the purpose of receiving 23 payment as herein provided (except as otherwise provided on the 24 reverse side hereof with respect to the Record Date) and for all 25 other purposes, whether or not this Bond shall be overdue, and 26 neither the Issuer nor the Bond Registrar shall be affected by 27 notiCe to the contrary. 28 Authentication. This Bond shall not be valid or become 29 obligatory for any purpose or be entitled to any security unless 30 the Certificate of Authentication hereon shall have been executed 31 by the Bond Registrar. 32 Not Oualified Tax-Exempt Oblicxations. The Bonds have 33 not been designated by the Issuer as "qualified tax-exempt 34 obligations" for purposes of Section 265(b)(3) of the federal 35 Internal Revenue Code of 1986, as amended. The Bonds do not 36 qualify for such designation. 346604.2 2 7 9� .3v� � 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 fu11 according to applicable laws 5 or regulations: 6 TEN COM - as tenants in common 7 TEN ENT - as tenants by the entireties 8 JT fiEN - as joint tenants with right of survivorship 9 and not as tenants in common 10 UTMA - as custodian for il (Cust) (Minor) 12 under the Uniform Transfers 13 (State) 14 to Minors Act 15 Additional abbreviations may also be used 16 though not in the above list. 346604.2 2 8 9 � 3 �� � ASSIGNMENT 2 For value received, the undersigned hereby sells, 3 assigns and transfers unto 4 the within Bond and does 5 hereby irrevocably constituCe and appoint 6 attorney to transfer the Bond on the books kept for the 7 registration thereof, with full power of substitution in the S premises. 9 Dated: 10 Notice: The assignor's signature to this assignment 11 must correspond with the name as it appears 12 upon the face of the within Bond in every 13 particular, without alteration or any change 14 whatever. 15 Signature Guaranteed: 16 17 Signature(s) must be guaranteed by a national bank or trust 18 company or by a brokerage firm having a membership in one of the 19 major stock exchanges or any other "Eligible Guarantor 20 Institution" as 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: 25 26 27 za (Include information for all joint owners if the Bond is held by joint account.) 346604.2 2 9 9� 3�S 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, Office of Financial Services, each with the effect noted on the forms of the Bonds, and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed or photocopied facsimile; and provided further that any of such signatures may be printed or photocopied 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, sha11 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, 1997. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 12. Reaistration; `Pransfer; 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 transferred as herein provided. 42 A Global Certificate shall be registered in the name of 43 the payee on the books of the Bond Registrar by presenting the 44 Global 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 34bb04.2 3 0 ����� 2 3 4 8 9 10 11 12 be transferred by delivery with an assignment duly executed by the Holder or his, her or its legal representative, and the City and Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until a Global Certificate is presented with such assignment for registration of transfer, accompanied by assuranee of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar. 13 `Transfer o£ a Global CertifiCate may, at the direction 14 and expense of the City, be subject to other restrictions if 15 required to qualify the Global Certificates as being '�in 16 registered form" within the meaning of Section 149(a) of the 17 federal Internal Revenue Code of 1986, as amended. 18 If a Global Certificate is to be exchanged for one or 19 more Replacement Bonds, all of the principal amount of the Global 20 Certificate shall be so exchanged. 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Upon surrender for transfer of any Replacement Bond the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 11) of, and deliver, in the name of the designated transferee or transferees, one or more new Replacement Bonds at � any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder of a Replacement Bond, Replacement Bonds may be exchanged for Replacement Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Replacement Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Replacement Bonds which the Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for Global Certificates of smaller denominations. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by 346604.2 3 1 �3� 1 the Bond Registrar and thereafter disposed of as directed by the 2 City. 3 Al1 Bonds delivered in exchange for or upon transfer of 4 Bonds shall be valid general obligations of the City evidencing 5 the same debt, and entitled to the same benefits under this 6 resolution, as the Bonds surrendered for such exchange or 7 transfer. 8 Every Bond presented or surrendered for transfer or 9 exchange shall be duly endorsed or be accompanied by a written 10 instrument of transfer, in form satisfactory to the Bond 11 Registrar, duly executed by the Holder thereof or his, her or its 12 attorney duly authorized in writing. 13 The Bond Registrar may require payment of a sum 14 sufficient to cover any tax or other governmental charge payable 15 in connection with the transfer or exchange of any Bond and any_ 16 legal or unusual costs regarding transfers and lost Bonds. 17 Transfers shall also be subject to reasonable regula- 18 tions of the City Contained in any agreement with, or notice to, 19 the Bond Registrar, including regulations which permit the Bond 20 Registrar to close its transfer books between record dates and 21 payment dates. 22 13. Riqhts Upon Transfer or Exchanae. Each Bond 23 delivered upon transfer of or in exchange for or in lieu of any 24 other Bond shall carry all the rights to interest accrued and 25 unpaid, and to accrue, which were carried by such other Bond. 26 14. Interest Payment: Record Date. Interest on any 27 Global Certificate shall be paid as provided in the first 28 paragraph thereof, and interest on any Replacement Bond shall be 29 paid on each Interest Payment Date by check or draft mailed to 30 the person in whose name the Bond is registered (the "HOlder") on 31 the registration books of the City maintained by the Bond 32 Registrar, and in each case at the address appearing thereon at 33 the close of business on the fifteenth (15th) day o£ the calendar 34 month preceding such Interest Payment Date (the "Regular Record 35 Date"). Any such interest not so timely paid shall cease to be 36 payable to the person who is the Holder thereof as of the Regular 37 Reaord Date, and shall be payable to the person who is the Holder 38 thereof at the close o£ business on a date (the "Special Record 39 Date") fixed by the Bond Registrar whenever money becomes 40 available for payment of the defaulted interest. Notice of the 41 Special Record Date shall be given by the Bond Registrar to the 42 Holders not less than ten (10) days prior to the Special Record 43 Date. 346604.2 3 2 �� �3�5 1 2 3 4 5 6 7 8 9 10 il 12 13 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 purehases, the City may (but shall not be obligated to) treat as the Holder of a Bond the beneficial owner of the Bond instead of the person in whose name the Bond is registered_ For that purpose, the City may ascertain the identity of the beneficial owner of the Bond by such means as the Bond Registrar in its sole discretion deems appropriate, including but not limited to a certificate from the person in whose name the Bond is registered identifying such beneficial owner. 14 (B) The City and Bond Registrar may treat the person in 15 whose name any Sond is registered as the owner of such Bond for 16 the purpose of receiving payment of prinaipal of and premium, if 17 any, and interest (subject to the payment provisions in paragraph 18 14 above) on, such Bond and for a11 other purposes whatsoever 19 whether or not such Bond shall be overdue, and neither the City 20 nor the Bond Registrar shall be affected by notice to the 21 contrary. 22 (C) Any consent, request, direction, approval, objection or 23 other instrument to be signed and executed by the Holders may be 24 in any number of concurrent writings of similar tenor and must be 25 signed or executed by such Holders in person or by agent 26 appointed in writing. Proof of the execution of any such 27 consent, request, direction, approval, objection or other 28 instrument or of the writing appointing any such agent and of the 29 ownership of Bonds, if made in the following manner, shall be 30 sufficient for any of the purposes of this Resolution and shall 31 be conclusive in favor of the City with regard to any action 32 taken by it under such request or other instrument, namely: 33 (1) The fact and date of the execution by any person 34 of any such writing may be proved by the certificate of any 35 officer in any jurisdiction who by law has power to take 36 acknowledgments within such jurisdiction that the person 37 signing such writing acknowledged before him or her the 38 execution thereof, or by an affidavit of any witness to such 39 execution. 40 (2) Subject to the provisions of subparagraph (A) 41 above, the fact of the ownership by any person of Bonds and 42 the amounts and numbers of such Bonds, and the date of the 43 holfling of the same, may be proved by reference to the bond 44 register. 34bb04.2 3 3 9� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 16. Delivery; A�,pliaation of Proceeds. The Global Certificates when so prepared and executed shall be delivered by the Director, Office of Einancial Services, to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 17. Funds. There is hereby'created a special fund to be designated the "1997 Capital Projects Fund" (numbered C-97, the "Capital Fund"), to be administered and maintained by the City Treasurer as a bookkeeping account separate and apart from all other accounts maintained in the official financial records of the City. There has been heretofore created and established the "General Obligation Special Assessments -- Streets Debt Service Fund" (numbered 963, the "Debt Service Fund"). The Capital Fund and Debt Service Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. (i) Cabital Fund. To the Capital Fund there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of $2,425,500. From the Capital Fund there shall be paid all costs and expenses of making the Improvements listed in paragraph 18, after they have been ordered in accordance with the Charter of the City, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Capital Rund shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes or special assessments herein covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Capital Fund, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to the City's Charter or Minnesota Statutes, Chapter 429, or used to pay the costs of any other purpose permitted by law, or transferred to the Debt Service Fund. All earnings on the Capital Fund shall be transferred to the Debt Service Fund, or may be retained in the Capital Fund. (ii) Debt Service Fund. There there shall be credited to a special Bonds in the Debt Service Fund: (a) assessments herein covenanted to be 346604.2 34 is hereby pledged and account relating to the collections of special levied, to the extent 9� 3as 1 2 3 4 5 6 7 8 9 10 il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 provided in paragraph 19; (b) all accrued interest received upon delivery of the Bonds; (c) all funds paid for the Bonds in excess of $2,425,500; (d) any collections of all taxes which are levied herein, or which may hereafter be levied in the event that the special assessments herein pledged to the payment of the Bonds and interest thereon are insufficient therefor; (e) all funds remaining in the Capital Fund after completion of the Improvements and payment of the costs thereof, not so transferred to the account of another improvement or used to pay the costs of any other purpose permitted by law; and (f) all investment earnings on moneys held in such special account in the Debt Service Fund or on moneys held in the Capital Fund. If moneys in the special account of the Debt Service Fund should ever be insufficient to pay debt service on the Bonds, the Bonds shall be paid from the Debt Service Fund or any other special account therein, and the Bonds are hereby made payable from the Debt Service Fund and any other special accounts therein for this purpose. Amounts drawn from the Debt Service Fund or any special account therein may be repaid with or without interest when moneys sufficient for such repayment are deposited in the special account relating to the Bonds in the Debt Serviae Fund. The special account relating to the Bonds in the Debt Service Fund shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from such special account in the Debt Service Fund as provided by law, or to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an amount not greater than five percent (5 of the proceeds of the Bonds. To this effect, any sums from time to time held in the Capital Fund or in such special account in the Debt Service Fund (or any other City fund or account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then- applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Capital Fund or in such special account in the Debt Service Fund shall not be invested in 346604.2 3 5 9�-3bs 1 obligations or deposits issued by, guaranteed by or insured by 2 the United States or any agency or instrumentality thereof if and 3 to the extent that such investment would cause the Bonds to be 4 ��federally guaranteed" within the meaning of Section 149ib) of 5 the federal Internal Revenue Code of 1986, as amended (the 6 ��Code"). 7 18. Assessments: Coverage Test. The City CounCil has 8 heretofore determined, and does hereby determine, to proceed with 9 the Improvements and special assessments with respect thereto 10 under the provisions of the Charter of the City, rather than the 11 provisions of Minnesota Statutes, Chapter 429. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 It is hereby determined that no less than twenty percent (20%) of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefitted by the Improvements. The City hereby covenants and agrees that it will let all construation contracts not heretofore let within one year after ordering each Improvement financed hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of construction contracts and will do and perform, as soon as they may be done, all acts and things necessary for the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity, in any action or proceedings taken or to be taken by the City or this Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. 34 The special assessments have not heretofore been 35 authorized, and accordingly, for purposes of Minnesota Statutes, 36 Section 475.55, Subdivision 3, the special assessments are hereby 37 authorized. Subject to such adjustments as are required by 38 conditions in existence at the time the assessments are levied, 39 the assessments are hereby authorized and it is hereby determined 40 that the assessments sha11 be payable in equal, consecutive, 41 annual installments, with general taxes for the years shown below 42 and with interest on the declining balance of all such 43 assessments at a rate per annum approximately one percent (1a) 44 per annum in excess of the net effective rate of interest on the 45 Bonds: 346604.2 3 6 � 7-3o.S � 2 3 4 5 6 7 Improvement Designation Page/Cherokee Lafond/Grotto ArlingtonjRuth MorganjEdgecumbe TOTAL Amount $ 610,000 500,000 520,460 820.000 $2,450,000 Levy Years 1997-2016 for all Collection Years 1998-2017 for all 8 The special assessments shall be such that if collected 9 in full they, together with estimated collections of other 10 revenues herein pledged for the payment of the Bonds, will 11 produce at least five percent (50) in excess of the amount needed 12 to meet when due the principal and interest payments on the Bonds 13 in every year except the final year (2009). At the time the 14 assessments are in fact levied the City Council sha11, baseci on 15 the then-current estimated collections of the assessments, make 16 an�r adjustments in any ad valorem taxes required to be levied in 17 order to assure that the City continues to be in compliance with 18 Minnesota Statutes, Section 475.61, Subdivision 1. 19 19. Limit on Special Assessments Pledged. The City 20 Council hereby finds, determines and declares that the payment of 21 the Bonds does not require the pledge of all the special 22 assessments which may be levied with respect to the Improvements 23 identified in paragraph 18, and that it is necessary, proper and 24 expedient to provide that payments and prepayments of special 25 assessments in excess of the debt service requirements of the 26 Bonds be put to use for other purposes sooner than upon the 27 termination of the Debt Service Fund. Only $2,450,000 original 28 principal amount of the special assessments (which amount is the 29 '�Pledged Assessments"), and interest thereon, recognized in 30 paragraph 18 of this Resolution (of which $410,000 are necessary 31 prior to their scheduled receipt in order to pay debt service on 32 the Bonds on March 1, 1997) are or shall be pledged to the 33 payment of the Bonds, and payments of, or with respect to, such 34 special assessments in excess of the Pledged Assessments shall be 35 credited instead to a special account in the Capital Fund, and 36 used for the purpose of paying any additional costs of the 37 Improvements and the costs of other improvements approved by the 38 City, as follows: (a) the first $410,000 of all prepayments of 39 special assessments recognized in paragraph 18 shall be credited 40 to the Debt Service Fund, (b) thereafter until SllCYl time as the 41 special assessments from time to time outstanding equal in 42 original principal amount the Pledged Assessments or less, 43 prepayments of any of the special assessments recognized in 44 paragraph 18 shall be treated as prepayments of the portion of 45 the special assessments not pledged to the Bonds and sha11 be 46 credited instead to said special account of the Capital Fund, and 346604.2 3 7 9 � 3oS 3 4 5 6 7 8 9 used as provided above, and (c) while the special assessments from time to time outstanding equal in original principal amount the Pledged Assessments or more, regular installment payments made on the Pledged Assessments only (not all of the special assessments) shall be credited to the Debt Service Fund, and regular installment payments on that portion, if any, of the remaining assessments in excess of the Pledged Assessments shall be credited to said special account of the Capital Fund, and used as provided above. 10 20. Tax Levy: Coverage Test. If taxes are levied as 11 provided in the final part of paragraph 18, the tax levies shall 12 be irrepealable so long as any of the Bonds are outstanding and 13 unpaid, provided that the City reserves the right and power to 14 reduce the levies in the manner and to the extent permitted by 15 Minnesota Statutes, Seetion 475.61, Subdivision 3. 16 To provide moneys for payment of the principal and 17 interest on the Bonds due to be paid in 2009 there is hereby 18 levied upon a11 of the taxable property in the City a direct 19 annual ad valorem tax which shall be spread upon the tax rolls 20 and collected with and as part of other general property taxes in 21 the City for the years and in the amounts as follpws: 22 23 24 25 26 27 28 29 30 31 32 33 34 Year of Tax Levy Year of Tax Collection Amount 2007 ��: $1,005,212 The tax levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged far the payment of the Bonds, will produce at least five percent (So) in excess of the amount needed to meet when due the principal 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 and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 35 21. General Obligation Pledqe. For the prompt and 36 full payment of the principal and interest on the Bonds, as the 37 same respectively become due, the full faith, credit and taxing 38 powers of the City shall be and are hereby irrevocably pledged. 39 If the balance in the special account relating to the Bonds in 40 the Debt Service Fund (as defined in paragraph 17 hereof) is ever 41 insufficient to pay all principal and interest then due on the 42 Bonds payable therefrom, the deficiency shall be promptly paid 43 out of any other funds of the City which are available for such 44 purpose, including the general fund of the City and the Debt 34bb04.2 3 $ �3�s 1 Service Fund and the special accounts therein, and such other 2 funds may be reimbursed with or without interest from the special 3 account in the Debt Service Fund relating to the Bonds when a 4 sufficient balance is available therein. 5 22. Certificate of Registration. The Director, Office 6 of Financial Services, is hereby directed to file a certified 7 copy of this Resolution with the officer of Ramsey County, 8 Minnesota, performing the functions of the county auditor (the 9 "County Auditor"), together with such other information as the 10 County Auditor shall require, and to obtain the County Auditor's il certificate that the Bonds have been entered in the Count�r 12 Auditor's Bond Register, and that the tax levy required by law 13 has been made. 14 23. Records and Certificates. The officers of the 15 City are hereby authorized and directed to prepare and furnish to 16 the Purchaser, and to the attorneys approving the legality of the 17 issuance of the Sonds, certified copies of all proceedings and 18 records of the City relating to the Bonds and to the financial 19 condition and affairs of the City, and such other affidavits, 20 certificates and information as are required to show the facts 21 relating to the legality and marketability of the Bonds as the 22 same appear from the books and records under their custody and 23 control or as otherwise known to them, and all such certified 24 copies, certificates and affidavits, including any heretofore 25 furnished, shall be deemed representations of the City as to the 26 facts recited therein. 27 24. Negative Covenants as to Use of Proceeds and 28 Improvements. The City hereby covenants not to use the proceeds 29 of the Bonds or to use the Improvements, or to cause or permit 30 them to be used, or to enter into any deferred payment 31 arrangements for the cost of the Improvements, in such a manner 32 as to cause the Bonds to be "private activity bonds�' within the 33 meaning of Sections 103 and 141 through 150 of the Code. The 34 City hereby covenants not to use the proceeds of the Bonds in 35 such a'manner as to cause the Bonds to be "hedge bonds" within 36 the meaning of Section 149(g) of the Code. 37 25. Tax=Exeml�t Status of the Bonds: Rebate: Election. 38 The Cit�r shall comply with requirements necessary under Che Code 39 to establish and maintain the exclusion from gross income under 40 Section 103 of the Code of the interest on the Bonds, including 41 without limitation requirements relating to temporary periods for 42 investments, limitations on amounts invested at a yield greater 43 than the yield on the Bonds, and the rebate of excess investment 44 earnings to the United States. 346604.2 3 9 \ �7� 1 The City expects that the two-year expenditure 2 exception to the rebate requirements may apply to the 3 construction proceeds of the Bonds. 4 If any elections are available now or hereafter with 5 respect to arbitrage or rebate matters relating to the Bonds, the 6 Mayor, Clerk, Treasurer and Director, Office of Financial 7 Services, or any of them, are hereby authorized and directed to 8 make such elections as they deem necessary, appropriate or 9 desirable in connection with the Bonds, and all such elections 10 shall be, and shall be deemed and treated as, elections of the 11 City. 12 26. No Desi�nation of 4ualified Tax-Exemot 13 Obligations. The Bonds, together with other obligations issued 14 by the City in 1997, exceed in amount those which may be 15 qualified as "qualified tax-exempt obligations" within the 16 meaning of Section 265(b)(3) of the Code, and hence are not 17 designated for such purpose. 18 19 20 21 22 23 24 25 26 27 27. Letter of Representations. The Letter of Representations for the Bonds is hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1996, by the City and received and accepted by The Depository Trust Company. So long as The Depository Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the City shall comply with the provisions of the Letter of Representations, as it may be amended or supplemented by the City from time to time with the agreement or consent of The Depository Trust Company. 28 28. Neqotiated Sale. The City has retained Springsted 29 Incorporated as an independent financial advisor, and the City 30 has heretofore determined, and hereby determines, to sell the 31 Bonds by private negotiation, all as provided by Minnesota 32 Statutes, Section 475.60, Subdivision 2(9). 33 34 35 36 37 38 39 40 41 42 43 44 29. Continuina Disclosure. The City is an obligated person with zespect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the ��Rule��), promulgated by the Securities and Exchange Commission (the '�Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the ��Undertaking") hereinafter described, to: A. Provide or cause to be provided to each nationally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository ("SID"), if any, for the State of Minnesota, in each case as designated by the Commission in accordance with 346604.2 m �� 3 S 1 the Rule, certain annual financial information and operating 2 data in accordance with the Undertaking. The City reserves 3 the right to modify from time to time the terms of the 4 Undertaking as provided therein. 5 B. Provide or cause to be provided, in a timely 6 manner, to (i) each NRMSIR or to the Municipal Securities 7 Rulemaking Board (��MSRB") and (ii) the SID, notice of the 8 occurrence of certain material events with respect to the 9 Bonds in accordance with the Undertaking. 10 C. Provide or cause to be provided, in a timely 11 manner, to (i) eaCh NRMSIR or to the MSRB and (ii) the SID, 12 notice of a failure by the City to provide the annual 13 financial information with respect to the City described in 14 the Undertaking. 15 The City agrees that its covenants pursuant to the Rule 16 set forth in thi5 paragraph 29 and in the Undertaking are 17 intended to be for the benefit of the Holders of the Bonds and 18 shall be enforceable on behalf of such Holders; provided that the 19 right to enforce the provisions of these covenants shall be 20 limited to a right to obtain specific enforcement of the City�s 21 obligations under the covenants. 22 The Mayor and Director, Office of Financial Services, 23 or any other officers of the City authorized to act in their 24 stead (the "Officers"), are hereby authorized and directed to 25 execute on behalf of the City the Undertaking in substantially 26 the form presented to the City Council, subject to such 27 modifications thereof or additions thereto as are (i) consistent 28 with the requirements under the Rule, (ii) required by the 29 Purchaser, and (iii) acceptable to the Officers. 41 97 30� 1 30. Severabilitv. If any section, paragraph or 2 provision of this resolution shall be held to be invalid or 3 unenforceable for any reason, the invalidity or unenforceability 4 of such section, paragraph or provision shall not affect any of 5 the remaining provisions of this resolution. 6 31. Headinas. Headings in this resolution are 7 included for convenience of reference only and are not a part S hereof, and shall not limit or define the meaning of any 9 provision hereof. Adoption Certffied by Council Secretary � App � -. -. . �-.. . _ • .. - ' - �i� t � � ,� `�� � '0 f't..i.�v� ' I . , : -./ . ��� f�/1�.������1 - � � Approved hy ayor for�ssion to Council By: � Adopted by Council: Date �` ��-� a� *� `� `�'� %7'3�S EXHIBITS Exhibit A - Proposals y� 3d� "���.�� OEPAflTMENTAOFFICE/COUNCIL DATE INItIATED � � � � Financial Services 3112f97 GREEN SHEE CONTACT PERSON & PHONE INITIAVDATE INRIAV�ATE O DEPAFi7MENTDIRE l e7I CITYCOUNCII Martha ICantorowicz 266-8836 A$SIGN �CIT'ATTORNEV OCITYCLERK NUMBEpiOP MUST BE ON CAUNC7L AGENDA 8Y (DA7E) qOUTIN6 � BUDGE7 DiREGTOR m FIN. & MG7: SERVICES DIR. March 26, 1997 ONDER �MAVOR(ORAS$ISTIWn � TOTAL # OF SIGNATURE PAGES _.�_ (CLIP A4L LOCATIONS FOR SIGNATURE) ACTION REQUESTED: This resolution accepYS Yhe winning proposal and awards the bid for the $2,450,000 G.O. Street Improvement Special Assessment Bonds Series 1997B. This is a competitive bond sale and the award is going to the bidder found to be the most advantageous to the City. RECOMMENDA710NS: Approva (A) or Reject (R) pERSONAL SEHVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _ CIVIL SERVICE GOMMISSION �� Has this pereonnrm ever worketl untler a corrtrect for this departmeM? _ CIB CAMMITTEE _ YES NO 2. Has this personflirm ever been a ciry employee? _ S7AFF — YES NO _ olsialCi COURi _ 3. Does this person/firm possess a skill not normally possessed by any curtent city employee? SUPPORTSWHIGHCOUNqLOBJECTIVE7 YES NO Explain all yes answers on seperate sheet and ettach to green sheet INITIATING PFOBLEM, ISSUE. OPPGIRTUNITY (Who, WhQt, When, Where. Why)' The bonds are for the purpose of financing certain street improvements within the City, and will be repaid by special assessments. ADVANTAGESIFAPPAOVED: Funds will be available for street improvements. DISADVANTAGES IF APPROVEO: None �ISADVANTACaES IF NOTAPPflOVED� Funds needed for certain street improvements will not be available. b3'SY3�� �i'�.r'�� ��.Y .<.: L 6 f:i,�i 1 TO7AL AMOUNT OF 7RANSACTION $ � Z �150 � OOO COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIIeG SOUBCE ACTIVITV NUMBER FINANCIALINFORM1SATION:(EXPLAIN) 97 �3�..� 1 2 3 means the certificates representing the Bonds so authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and � 4 WHEREAS, "Holder'� as used herein means 5 whose name a Bond is registered on the registrat 6 City maintained by the registrar appointed as p� 7 paragraph 8(the "Bond Registrar"); and � 8 WHEREAS, Rule 15c2-12 of the 9 Commission prohibits "participating un 10 or selling the Bonds unless the City u 11 certain continuing disclosure with res 12 WHEREAS, pursuant to M 13 475.60, Subdivision 2(9), public 14 to the Bonds if the City retains 15 and determines to sell the Bonds 16 City has instead authorized a co 17 publication of notice thereof as 18 and 19 WHEREAS, proposals f r 20 Springsted Incorporated pursu t 21 Terms of Proposal therein: person in books of the ed in r�Cties and Exchange �iters" from purchasing akes to provide to the Bonds; and nneso a Statutes, Section sale requirements do not apply an 'ndependent financial advisor by private negotiation, and the p titive sale without form of private negotiation; the Bonds have been solicited by to an Official Statement and 22 NOW, THEREFORE,� IT RESOLVED by the Council of the 23 City of Saint Paul, Minne ta, as follows: 24 25 26 27 28 29 30 31 32 33 34 35 36 37 1. Acce tance of Pro osal. The proposal of (the "Purchaser"), to purchase $2,450,000 General Obl'gation Street Improvement Special Assessment Bonds, Ser'es 1997B, of the City (the "Bonds", or individually a"Bond'), in accordance with the Terms of Proposal for the bond sale, t the rates of interest hereina£ter set forth, and to pay erefor the sum of $ , plus interest accrued settlement, is hereby found, determined and declared to be t most favorable proposal received and is hereby accepted, and t Bonds are hereby awarded to the Purchaser. The Director, Offic of Financial Services, or his designee, is directed to re ain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts . 38 2. Title; Oriainal Issue Date; Denominations; 39 Maturities The Bonds sha11 be titled "General Obligation Street 40 Improveme t Special Assessment Bonds, Series 1997B", shall be 41 dated Ap il 1, 1997, as the date of original issue and shall be 42 issued rthwith on or after such date as fully registered bonds. 43 The Bo s shall be numbered from R-1 upward. Global Certificates 3 9�7 3�� 1 2 3 4 5 6 7 E: 9 1� 11 12 13 14 shall each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on Marq�i 1 in the years and amounts as follows: / Year 1998 1999 2000 2001 2002 2003 Amount $350,000 125,0�0 100,000 100,000 100,000 100,000 15 For purposes of Minnesota Statutes, Section 5.54, the serial 16 maturities of the Bonds are combined with t e serial maturities 17 of the City's $17,500,000 General Obligati n Capital Improvement 18 Bonds, Series 1997A. 19 20 21 22 23 24 25 26 3. Puroose. The Bonds construction of various street im in the City, and any excess funds purpose permitted by law. The to which shall include all costs enu Section 475.65, is estimated to of the Bonds. Work on the Impr diligence to completion. shal provide funds for the rov ents (the �'Improvements") sh 11 be devoted to any other a cost of the Improvements, rated in Minnesota Statutes, at least equal to the amount ments shall proceed with due 27 4. Interest. The onds shall bear interest payable 28 semiannually on March 1 and September 1 of each year (each, an 29 "Interest Payment Date"), ommencing September 1, 1997, 30 calculated on the basis o a 360-day year of twelve 30-day 31 months, at the respectiv rates per annum set forth opposite the 32 maturity years as foll s: 33 34 35 36 37 38 39 40 41 42 Maturitv Year 1998 1999 2000 2001 2002 2003 , be 3466�4.2 Maturitv Year Interest Rate % 2�04 2005 2006 2007 2008 2009 Year 2004 $ 100 000 2Q05 10 ,0�0 2006 0,000 2007 100,000 2008 100,000 2009 1,075,000 Descrintion of the Global Certificates and Global 5vstem. Upon their original issuance the Bonds will in the £orm of a single Global Certificate for each � 9�-3aS 1 2 3 4 5 6 r� Improvement Desiqnation Page/Cherokee Lafond/Grotto ArlingtonJRUth Morgan/Edgecumbe TOTAL Amount $ 610,000 500,000 520,000 820.000 $2,450,000 Lew Years 1997-2016 for all Collection Years 1998-20�,,7 for a,l'1 8 The special assessments shall be such th i£ collected 9 in full they, together with estimated collections f other 10 revenues herein pledged for the payment of the B ds, will 11 produce at least five percent (5�) in excess of the amount needed 12 to meet when due the principal and interest pa ents on the Bonds 13 in every year except the final year (2009}. t the time the 14 assessments are in fact levied the City Cou il shall, based on 15 the then-current estimated collections of t e assessments, make 16 any adjustments in any ad valorem taxes re uired to be levied in 17 order to assure that the City continues t be in compliance with 18 Minnesota Statutes, Section 475.61, Sub vision 1. 19 19. Limit on S ecial Assess ents Pled ed. The City 20 Council hereby find�, determines and eclares that the payment of 21 the Bonds does not require the pledg of all the special 22 assessments which may be levied wit respect to the Improvements 23 identified in paragraph 18, and t t it is necessary, proper and 24 expedient to provide that payment and prepayments of special 25 assessments in excess of the deb service requirements of the 26 Bonds be put to use for other p rposes sooner than upon the 27 termination of the Debt Servic Fund. Only $2,450,000 original 28 principal amount of the speci 1 assessments (which amount is the 29 "Pledged Assessments"), and nterest thereon, recognized in 30 paragraph 18 of this Resol ion (of which $ ,000 are necessary 31 prior to their scheduled ceipt in order to pay debt service on 32 the Bonds on March 1, 199 ) are or shall be pledged to the 33 payment of the Bonds, a payments of, or with respect to, such 34 special assessments in xcess of the Pledged Assessments shall be 35 credited instead to a pecial account in the Capital Fund, and 36 used for the purpose f paying any additional costs of the 37 Improvements and th costs of other improvements approved by the 38 City, as follows: (a) the first $_,000 of all prepayments of 39 special assessmen s recognized in paragraph 18 shall be credited 40 to the Debt Serv'ce Fund, (b) thereafter until such time as the 41 special assessm nts from time to time outstanding equal in 42 original princ' al amount the Pledged Assessments or less, 43 prepayments o any of the special assessments recognized in 44 paragraph 18 shall be treated as prepayments of the portion of 45 the special assessments not pledged to the Bonds and shall be 46 credited i stead to said special account of the Capital Fund, and 37 �7�.30� 1 used as provided above, and (c) while the special assessments 2 from time to time outstanding equal in original principal amount 3 the Pledged Assessments or more, regular installment payments 4 made on the Pledged Assessments only (not all of the special 5 assessments) shall be credited to the Debt Service Fund, and 6 regular installment payments on that portion, if any, of the 7 remaining assessments in excess of the Pledged Assessments shall 8 be credited to said special account of the Capital Fund, and used 9 as provided above. 10 20. Tax Lew; Coveraae Test. If taxes are levied as 11 provided in the final part of paragraph 18, the tax levies shall 12 be irrepealable so long as any of the Bonds are outstand' g and 13 unpaid, provided that the City reserves the right and p er to 14 reduce the levies in the manner and to the extent per tted by 15 Minnesota Statutes, Section 475.61, Subdivision 3. 16 To provide moneys for payment of the pr'ncipal and 17 interest on the Bonds due to be paid in 2009 th e is hereby 18 levied upon all of the taxable property in the City a direct 19 annual ad valorem tax which shall be spread on the tax rolls 20 and collected with and as part of other gen al property taxes in 21 the City for the years and in the amounts s follows: 22 23 Year of Tax Lew Year of Amount 24 25 26 27 28 29 30 31 32 33 34 2007 20 The taY levies are suc that if collected in full they, together with estimated collect' ns of special assessments and other revenues herein pledged r the payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due the princip 1 and interest payments on the Bonds. The tax levies shal be irrepealable so long as any of the Bonds are outstanding nd unpaid, provided that the City reserves the right and p er to reduce the levies in the manner and to the extent permi ed by Minnesota Statutes, Section 475.61, Subdivision 3. 35 21. Gener Obli ation Pled e. For the prompt and 36 full payment of the rincipal and interest on the Bonds, as the 37 same respectively ecome due, the full faith, credit and taxing 38 powers of the Cit shall be and are hereby irrevocably pledged. 39 If the balance i the special account relating to the Bonds in 40 the Debt Servic Fund (as defined in paragraph 17 hereof) is ever 41 insufficient t pay all principal and interest then due on the 42 Bonds payable herefrom, the deficiency shall be promptly paid 43 out of any o er funds of the City which are available for such 44 purpose, in uding the general fund of the City and the Debt 346604.2 3 8 �� 85 E. SEVENTi9 PLACE SU37f f00 SA1M PAUL, MN 5 5 101-214 3 612-223-3000 FA7C:612-223-3002 � r7 — � c�5 SPRINGSTED PubGt Finana Advuors March 26, 1987 Mr. Joe Reid, Director Office of Financial Services City of Saint Paul 240 City Hali 15 West Kei{ogg Boufevard Saint Paui, MN 55102 Re: Recommendations for Award of City of Saint Paui's $17,500,000 General Obligation Capital Improvement Bonds {CIB), Series 1997A $2,450,000 General Obligation Street improvemeni Special Assessment Bonds, Series 19978 Dear Mr. Reid: This letter summarizes the results of the competitive bids opened at 10:30 this moming for these issues. Purpose of issues The purpose of this CiB issue is to provide funding for various ppitai improvements as part of the City's annuaf Capitai improvement Program, to inciude partial funding for the pubiic costs associated with the Science Museum and the Wabasha Bridge. The purpose of the Street issue is to fund portions of the City's annuai street improvement program. Tax-Exempt Interest Rate Market Since the first of the year, tax-exempt interest rates have moved in a relatively 6ght band, varying about 2/10's of 1% over the tertn: January 2, 1997 the SBl was 5.70°l0; the fow point was February 20, 1997 when the B8f was 5.56%. March 20, 1997 (the most recent date) the BBI was 5.78%. UUithin the last month, the numbers indicate the market movement has been up, with most such movement occurring in late February. The market is cuRenUy Iooking for bonds since the supply is low, which helped in this sale. SAINT PAUL, MN • MlN�JEAPOI�S, M,�' • BROOF�7E(D, WI • OVERL4ND PARK, KS • R:i4LL�GfON, DC • IOWA CIIY, IA City of Saint Paul March 26, 1997 Page 2 �� ,� 05 Sale Resuits The City received nine bids on the C1B sale. The bids were as follows: Rank Sidder Piper .laffray Hutchinson Shockey (Chicago) Merrili Lynch (Califomia) Dain Bosworth Cronin � Co. First of America (Chicago) Raymond James (Florida) Interstate Johnson (Georgia) Wittiam Btair (Chicago) TIC % 4.9497% 4.9950% 4.9988% 4.9994% 5.0251 % 5.U297% 5.0354°!0 5.0718% 5.0879% The lowest bid of 4.9497% was submitted by Piper Jaffray, with the next lowest bid from Hutchinson Shockey (Chicago) at 4.9950�0. The City received five bids on the street issue. The bids were as follows: Rank Bidder Piper Ja�fray Gronin 8� Go Dain Bosworth Raymond James William Blair TIC (%) 5.2181 °!o 5.2497% 5.2577% 5.3092% 5.3458% The lowest bid of 5.2181% was submitted by Piper Jaffray, with the next lowest bid from Cronin & Co (Twin Cities) at 5.2497%. The nine bids received on the CIB issue has o�ty been matched o�ce (nine b+ds were aiso received in 1995j by the City since 1385. The CIB issue received broad nationai attention with underwriters bidding from Chicago (3), Califomia (1), Florida (1), and Georgia (1). We require bidders to submit their bids on a"True Interest Rate" (TIC) basis, so as to reflect the present value of their bids and thereby ensure the City award based on the towest cost to the City. We have enGosed bid tabulation forms for each issue summarizing the bid specifics and composition of each underwriting syndicate. Recommendation We recommend awards of sale of the CIB issue and the Street issue to Piper Jaffray. Basis of Recommendation The interest rates received on each issue reflect aggressive bidding in today's market and compate we{{ with the City's recent historical experience. Focusing on the 1997 Cf B issue with its TIC of 4.94%, the City's experience for its GIB issues in 1995 and 1996 respectively of 5.14% and 4.81%. Our estimate of the City's interest rate on the CIB issue had the issue soid in eariy February was 4.92°k. We have compared this issue against other issues soid thus far City of Sair�t Paul ��-� O S March 26, 1997 Page 3 this week and the City has received lower i�te�est rates than these issues. We also monitor each of the City's issues against a daily national interest rate index, Deiphis-Hanover. These rates are at w slighUy better than the DelphisHanover "AAA"-rated interest rates. Historicaily, the City's issues seil beiween the Delphis Hanover "AA-to-AAA" levels, a performance matched by these issues. Yesterday, the Federal Reserve took action on short-tertn interest rates. Our analysis shows that the market had anticipated this action over the last few weeks and had already factored in an adjustrnent Credit Rating The City received three ratings of "Aa2lAA+lAA+^ from Moodys Investors Service, Standard & Poors and Fitch Investors Service, respectivety. The City put together an outstanding rating presentation for each agency as part of this saie process. Each agency noted numerous areas of improvement. We would be pieased to respond to the comments of the rating agencies resulting from this process. We are again appreciative of the opportunity to be of service to the City. V1/e weicome any questions or comments on this repost. Respectfuliy, a �,,�� ` �t-� - �,�1��d�, David N. MacGillivray / Principal Director of Project Management ldmf Enclosures �,� _�os W � N V p C N � t 0 � � � o m m A c � c � CN� R C Q � (p � O `o a Y � � N �� 0000000e Z r�O�I O� N N� ' 8� a N V V C-,In IA � In In � ��e�`� � � �� ���� � ���� = o �a��3eaaeae�aa�-a°a�a°��� �:�n in �n in �n in o�n �n �n o�n �n p � �ncei�i<onmrno��acnvc in � � O O - d .S .� 17 '7 V V' V V' C �fJ ip 1n 1[j 1n N� 1D ID lri � �U�a y � - .. � - � in c ,'� � . - . _ - . . . t ° r0 �i m�'�� ¢ R 2 y � o� o d° o 0 0 � � o 0 0 0 0 3e N�O O O O O O f L Q N i n u 1 O 1 n O F C NCti)t41�O��ZZ� N(7 V' � ln QU NUQ C Q T7Q' V QQ Ntn NIn�1p � � C� Q7 i - _, N O � � a � e�N 3� ¢ �d�� 2 � � � - o 0 0 3� o o � o 0 0 0 0 Q { nN V �i�O�Z�mOO� p C {`�-Q'd'RQ V V Q 1n Inln N � �� I � M t ��(� Q 05 Q � 0 0 o a°000000000 0 0 00 v�,n,n�r,�s¢¢¢¢s¢oin o ¢s m�n�ot�ZZZ22ZZZ?Q���ZZ � � �<�� ����� � ������ N 0 Y � _ � N V � � � - - M � � � Q O N Z y + 2� 3� 2� 2� b� 2� 2� 2� 2� D� 3� 2� �a�. N 1110 ��In In 000000 Of N� C Q C 0 W Q lq tD I� t0 6f O O � N � W 7 Q.�. � V`tl' V Q aT 'Q V IA In In IN N p mSII Q �������-».��.� �p �pCU 2e2e3e2e2e2eZe2e2�2e I i 000000in�noo me�v�n�cr.nmoo gt vvvvv�avviriui 1 I ri N t� m OJ O � N M V t(1 (O f� LO OI O � N C� C In SO f� � �m�88888S8oSSosbsosss � N N(V N N N N N N N N N N N N N N N �� 85 E. SEVENTH PIACE, S[I17E 100 SAI�7TPAUL,MN SSI01-2143 612-223-3000 FAX:61 2-2 2 3 3002 �� - SPRINGSTED Public Finmue Advisors � $17,500,000 CiTY OF SAIlVT PAUL, MIlVNESOTA GENERAL OBLIGATION CAPTfAL IMPROVEMENT BONDS, SERIES 1997A BQOK EIVTRY ONLi� AWARD: PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MII,LER & SCHROEDER FINANCIAL, INC. AND ASSOCIATES SALE: 3.85 % 4.30 % 4.40% 4.50 % 4.60 % 4.70% 4.75 % 4.85 % 5.00% Interest Net Interest TY�ue Interest Bidder Rates Price Cocr Rate PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MILLER & SCHROEDER FINANCIAL, INC. John G. Kinnazd & Company Incorporated Juran & Moody, a division of Miller, Johnson & Kuehn,Inc. The GMS Group Dougherty Dawkins, Inc. Peterson Financial Corporation HUTCHINSON,SHOCKEY,ERLEY & COMPANY MORGAN KEEGAN & CO., INC. Mesirow Financial Inc. SARJT PAUL, MN � MINNEAPOLIS, MN March 26, 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 Moady's Rating: Aa2 Standard & Poor's Rating: AA+ Fitch's Rating: AA+ $17,354,238.25 $5,008,885.71 4.949790 4.50% 1998 $17,408,826.50 $5,060,258.92 4.75% 1999-2003 4.80% 2004 4.90% 2005 5.00% 2006 5.10% 2007 BROOKF[ELD, WI � OVERLAND PARK. KS � WASH7NGCON, DC � lOWA CiCY, IA 4.9950% (Continued) Intecest Net Interest True Interest Bidder Ra es Price (' Rate MERRILL LYNCH & CO. Securities Corporation of Iowa DAIN BOSWORTH INCORPORATED PRUDENTIAL SECURITIES, INC. ABN AMRO SECURTTIES (USA) INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC, OPPEM-IEIMER & CO., INC. PAINEWEBBERINCORPORATED DEAN WITTER REYNOLDS INCORPORATED CRONIN & COMPANY, INCORPORATED SMITH BARNEY FIRST OF AMERICA SECUI2ITIES RAYMOND JAMES & ASSOCIATES INTERSTATE/JOHNSON LANE CORP 4.00% 1998 4.50°,b 1999-2001 4.60% 2002 4.70 % 2003 4.80 % 2004 5.00% 2005-2007 4.50 % 1998-2000 4.60% 2001 4.70% 2002 5.00% 2003-2007 3.95% 4.30% 4.50 % 4.60% 4.65 % 4.75 % 4.85 % 4.90 % 5.00 % 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 4.00 % 4.30 % 4.45 % 4.60% 4.70 % 4.80% 4.90� 5.00 % 1998 1999 2000 2001 2002 2003 2004 20p5-2007 4.00% 1998 4.375 % 1999 4.75 % 2000 4.80 %a 200I 5.00% 20p2-2006 5.10% 2007 4.75% 1998-?A02 4.85% 2003 4.90 % 2004 5.00% 2005 5.10°k 2006 5.125 % 2007 517,348,556.25 517,415,525.50 $I7,327,250J5 $17,347,955.50 $17,436,6I9.50 $17,398,150.00 $5,056,214.58 $5,067,368.25 $5,078,182.58 $5,087,003.85 $5,107,254.15 $5,136,369.27 4.9988 % 4.9994 �7 5.0251 % 5.0297�/ 5.035490 SA7I8 `70 (Continued) ci� - 3n5 Interest Net Interest True Interest Bidder Rates Price ost Rate WILLIAM BLAIR & COMPANY ROBERT W. BAIRD & COMPANY, INCORPORATED 3.80% 4.35% 4.55 % 4.65 % 4.75% 4.80 % 4.90 % 5.00 % 5.10% REOFFERING 5CHEDULE OF THE PURCHASER Rate Year NRO Paz 4.45 % 4.55 % 4.65 % 4.75 % 4.80 % 4.90 % Paz 5.10% Yield 3.85% 4.30 % 4.40 % 4.50% 4.60 % 4.70 % 4.75 % 4.85% 5.00 % 5.00 % 1998 1999 2000 2001 2002 2003 2004 2005-2006 2007 1998 1999 2000 2001 2002 2003 2004 zoos 2006 2007 $17,325,162.00 $5,141,816.13 5.0879`7a BBI: 5.78% Average Maturity: 5.80 Yeus �� 8i E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN SS10I-2I43 612-223-3000 FAX: 612-223-3002 � � , �os SPRINGSTED Public Fi�uaice Advisors $2,450,000 CPl'P OF SAINT PAUL, MINNESOTA GENERAI, OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS, SERIES 1997B BOOK ENTRY ONLI� AWARD: PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. 1�IILLER & SCHROEDER FINANCIAL, INC. AND ASSOCIATES SALE: March 26, 1997 Moody's Rating: Aa2 Standard & Poor's Rating: AA+ Fitch's Rating: AA+ Interest Net Interest True Interest Bidder Rates Price ost Aate PIPER JAFFRAY INC. NORWEST INVESTMENT SERVICES, INC. FBS INVESTMENT SERVICES, INC. MILLER & SCHROEDER FINANCIAL, INC. John G. Kinnazd & Company Incorporated Juran & Moody, a division of Miller, Iohnson & Kuehn,Inc. The GMS Group Dougherty Dawkins, Inc. Peterson Financial Corporation CRONIN & COMPANY, INCORPORATED SMITH BARNEY 4.30% 4.45% 4.55% 4.65 % 4.75 % 4.80% 4.90 % 5.00 % 5.10% 5.20 % 1998-1999 2000 2001 2002 2003 2004 2005 2006-2007 2008 2009 $2,425,667.50 4.00 °k 430% 4.50 % 4.60% 4.65% 4.75 % 4.85 % 4.90 % 5.00 % 5.15 % 5.25 % 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 2008 2009 $2,425,735.50 $1,018,1�2.08 $1,024,780.13 5.2181 % 5.2497 % (Continued) SAMT PAUG MN � M[NNEAPOLIS, MN � BROOKFIELD, WI � OVERLAND PARK, KS � WASHINGTON. DC �[OWA C17Y. IA Interest Net Interest True Interest Bidder Rates Price ('n� Rare DAIN BOSWORTH INCORPORATED PRUDENTIAL SECURITIES, INC. ABN AMRO SECURITIES (USA) INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. OPPENHEIMER & CO., INC. PAINEWEBBERINCORPORATED DEAN WITTER REYNOLDS INCORPORATED RAYMOND JAMES & ASSOCIATES WILLIAM BLAIR & COMPANY ROBERT W. BAIRD & COMPANY, INCORPORATED 4.50 % 4.60 % 4.70 % 4.80 % 4.90 % 5.00 % 5.10 % 5.25 % 4.00 % 430% 4.60 % 4.75 % 4.80� 4.90 % 5.0p% 5.10% 5.20% 5.25 % 5.30 % 3.80% 4.35 % 4.55 % 4.65 % 4.75 % 4.85 % 4.90 % 5.00 % 5.10% 5.20% 5.25 % 5.35 % 1998-2000 Z001 2002 2003 2004 2005-2006 2007-2008 2009 1998 1999 2000 2001 2002 2003 2004 2005-2006 2007 2008 2009 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $2,428,288.00 $2,428,941.75 $2,425,512.75 REOFFERING SCHEDULE OF THE PURCHASER 0 430% 430�0 4.45 % 4.55 % 4.65 % 4.75 % 4.80 % 4.90 % 5.00 % 5.00 % 5.10% 5.20 % � 1998 1999 2000 2001 2002 2003 2004 20p5 2006 2007 2008 2009 � NRO Paz Paz Paz Paz Pu Paz Paz Paz 5.10% 5.15 % 5.25 % $1,026,435.96 $2,037,Q70.75 $1,043,820.58 5.2577 % 53092% 5.3458 % BBI: 5.78 ° ,6 Average Maturity: 8.00 Yeazs �e�d �dloa � �_� � � I � � � � �� � � � � � � � � � �., � �: � � � � i�l � � i� v .�y � � ...y A o ° � �/ J � � � � V � O . `�1� � � � � � � � _�. � �:a��7 �&� ';aA�e �.bw we8�a�� ou �aaiao b� 'r,� 3�0 E� , � 17 n �0 � O V O �.G � 044 �' �t{ L{Q N� p� 6 � 9 O3 � 'a ' 'S c �,'a 6 � w � a N s° � a ^ . u 4� y u n w a��n _� O Y �(A �.. p a �^G O ��'S w n'a :� " 9 C, �� u�3 C-� q V ; M a�,'mu�° ��� o e0 �� G''S �2 C c =uc3 y�' u u'�oEcT�'�ie+� q �v��a Ua�+'�a ��^u•� 'e..c E e<o C=a �a.... , u�•'g�N�o��'�9 Q alaax.�. �^L°wu o�n an��g� >.�v . �L'U'�e� �.'n•^•u'��'.�w` 5 ' o °AL `°� �>° $ � «��i�'»g�a� '�g ' , ' , ' ,yqyqyq ppp �B `� „���=�-E s• �� �� 0 1� u����rop `s i� � O F����b ns`.7 laE�q�a�C u '`cj0.�p'3d e ? � 7 C^ 3 u �i ~ n � 3 U y S'� 'O Y � 00 �� n O i L.7 � w �o + au a° � = °� 9� .^ p� � v°'.`c''v" � 2aa� w`'Oa O °°`=,o� � J�wG� .L CC�yk...• • p�c ��a��.�SCd�O����q � y �}��. { c y ��yFY��CMU �'4YOEY^�COUg`a9{�� ]� Y � y._Cpp q 7�� P fL ��� O� +� b(f � � N�•��'O jC x +•> u 3'f'� C a L y h'd V1 Y 0. 4 �� N � U � �. d11 a 4. �c 00� J " w E" 3 t..� V a a Q C N� a 4wNC� G.�.� O.:.S �u. �RGKA'�o�Z �.�bac �a ` ���'nc c�� � 00 T u !0 a� . bp'� i 00 Q � = een °a'_o, b.ta _�a7J ` � a c;; � Yiv�.- � y�q u .�iJ� �p9 e w =. eri g � -; x � 3 �i� 9�3�5 �°.'a� " b S.-.h �( $ � ° e a n a UD a. uo.. w�=� a y�,��� �°� �9��� S �, ° ���i..5'1 � d�>uo� 3 �=��a� �08���.°�� ,���Eq� � '�����Y a n=a�� � s ° s g�� - �c� �8.�����ao�.0.s�sh� 8 u e (/! ��r 8 �- b a��.. 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