HomeMy WebLinkAboutResolution No. 2003-21RESOLUTION NO. 2003-21
A RESOLUTION AWARDING THE SALE OF $2,600,000 GENERAL
OBLIGATION IMPROVEMENT AND SEWER AND
WATER REVENUE BONDS, SERIES 2003A;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Columbia Heights, Anoka County,
Minnesota (City) as follows:
Section 1. Bac, kgmnM.
1.01. By Ordinance No.1455 (Ordinance), the City Council authorized issuance of general
obligation bonds in the maximum principal amount of $3,900,000 in order to finance Zone 6A, Zone
6B and Zone 7 Street Improvements; and Central Avenue Improvements (consisting of improvements
designated as 1999-12 and 1999-12A).
1.02. The Zone 6A and Zone 6B Street Improvements and the 1999-12A portion of the
Central Avenue Improvements are referred to collectively as the "Assessable Improvements;" and the
Zone 7 Street Improvements and the 1999-12 portion of the Central Avenue Improvements are
referred to as the "Utility System Improvements."
1.03. The City has determined that, within 30 days af[er publication of the Ordinance, no
petition for a referendum on issuance of bonds was received by the City in accordance with the City
charter, and accordingly the City has determined to issue its $2,600,000 General Obligation
Improvement and Sewer and Water Revenue Bonds, Series 2003A (Bonds) in order to finance the
Assessable Improvements and the Utility System Improvements.
1.04. The proposal of Northland Securities, Inc. (Purchaser) to purchase the Bonds described
in the Terms of Proposal thereof is found and determined to be a reasonable offer and is accepted, the
proposal being to purchase the Bonds at a price of $2,588,300.00 plus accrued interest to date of
delivery, for Bonds bearing interest as follows:
Year of Interest Year of Interest
Magl~ Rate Man~ri~ Rate
2004 1.10% 2012 3.40%
2005 1.30% 2013 3.50%
2006 1.60% 2014 3.60%
2007 2.10% 2015 3.70%
2008 2.40% 2016 3.80%
2009 2.75% 2017 3.90%
2010 3.00% 2018 4.00%
2011 3.25%
True interest cost: 3.4313%
1.05. The sum of $20,800.00 being the amount proposed by the Purchaser in excess of
$2,567,500 will be credited as follows: $12,480.00 to the Improvements Account and the Utilities
Account, respectively, of the Debt Service Fund in accordance with Section 4.01(b) and (c) hereof, and
$8,320.00 to the Utility Improvements subaccount of the construction fund described in Section 4.01(d)
hereof. The City Clerk-Treasurer is directed to retain the good faith check of the Purchaser, pending
completion of the sale of the Bonds, and to remm the good faith checks of the unsuccessful proposers
forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf
of the City.
1.06. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes, Section
444.075 and Chapters 429 and 475 (Act), in the total principal amount of $2,600,000, originally dated
June 1, 2003, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-l,
upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts
as follows:
Year Amount Year Amount
2004 $135,000 2012 $190,000
2005 145,000 2013 190,000
2006 180,000 2014 165,000
2007 180,000 2015 165,000
2008 185,000 2016 165,000
2009 185,000 2017 170,000
2010 185,000 2018 175,000
2011 185,000
$1,030,000 of the Bonds (the Improvement Bonds) maturing in the amounts and on the dates set forth
below are being issued to finance the Assessable Improvements:
Year Amount Year Ammmt
2004 $45,000 2012 $75,000
2005 30,000 2013 75,000
2006 65,000 2014 80,000
2007 65,000 2015 80,000
2008 70,000 2016 75,000
2009 70,000 2017 80,000
2010 70,000 2018 80,000
2011 70,000
The remaining $1,570,000 of the Bonds (the Sewer and Water Revenue Bonds) maturing in the amounts
and on the dates set forth below are being issued to finance the Utility System Improvements:
Year Amnunt Year Amount
2004 $ 90,000 2012 $115,000
2005 115,000 2013 115,000
2006 115,000 2014 85,000
2007 115,000 2015 85,000
2008 115,000 2016 90,000
2009 115,000 2017 90,000
2010 115,000 2018 95,000
2011 115,000
1.07. Ontinnal Redemntinn The City may elect on February 1, 2010, and on any day thereafter
to prepay Bonds due on or after February 1, 2011. Redemption may be in whole or in part and if in part,
at the option of the City and in such manner as the City will determine. If less than all Bonds of a
maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the
particular amount of such maturity to be prepaid. DTC will determine by lot the mount of each
participant's interest in such maturity to be redeemed and each participant will then select by lot the
beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par
plus accrued interest.
Section 2. Re~.qtration and Payment.
2.01. Ragiatar. exl_Eorm. The Bonds will be issued only in fully registered form. The interest
thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft
issued by the Registrar described herein.
2.02. Date.q; Interest Payment Dates. Each Bond will be dated as of the last interest payment
date preceding the date of authentication to which interest on the Bond has been paid or made available
for payment, unless (i) the date of authentication is an interest payment date to which interest has been
paid or made available for payment, in which case the Bond will be dated as of the date of
authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case
the Bond will be dated as of the date of original issue. The interest on the Bonds will be payable on
February 1 and August 1 of each year, commencing February 1, 2004, to the registered owners of record
thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or
not that day is a business day.
2.03. Regkslrat~. The City will appoint a bond registrar, transfer agent, authenticating agent
and paying agent (Registrar). The effect of registration and the rights and duties of the City and the
Registrar with respect thereto are as follows:
(a) Rag/star. The Registrar must keep at its principal corporate trust office a bond register in
which the Registrar provides for the registration of ownership of Bonds and the registration of transfers
and exchanges of Bonds entitled to be registered, transferred or exchanged.
(b) Tran.qfer nf Rnnd.~, Upon surrender for transfer of a Bond duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the
Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the
registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as
requested by the transferor. The Registrar may, however, close the books for registration of any transfer
after the fifteenth day of the month preceding each interest payment date and until that interest payment
date.
(c) Exchange of glnnd.q. When Bonds are surrendered by the registered owner for exchange
the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount
and maturity as requested by the registered owner or the owner's attorney in writing.
(d) Caneellatinn. Bonds surrendered upon transfer or exchange will be promptly cancelled
by the Registrar and thereafter disposed of as directed by the City.
(e) lropmper or l lnm~thorized Tran.qfer. When a Bond is presented to the Registrar for
transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the
endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested
transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make
transfers which it, in its judgment, deems improper or unauthorized.
(0 Permn.~ Deemed C}wner~. The City and the Registrar may treat the person in whose
name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is
overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on
the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's
order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the
sum or sums so paid.
(g) Taxe~q; Fees and Charge.q. The Registrar may impose a charge upon the owner thereof for
a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other
governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated: I~.qt: Stolen or Destroyed Ronda. If a Bond becomes mutilated or is
destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date
and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and
in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and
charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost,
upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost,
and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity
in form, substance and amount satisfactory to it and as provided by law, in which both the City and the
Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the
Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen
or lost Bond has already matured or been called for redemption in accordance with its terms it is not
necessary to issue a new Bond prior to payment.
(i) Rademptian. In the event any of the Bonds are called for redemption, notice thereof
identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption
notice by first class mail (postage prepaid) for redemption to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Registrar and by publishing the
notice if required by law. Failure to give notice by publication or by mail to registered owners, or any
defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so
called for redemption will cease to bear interest after the specified redemption date, provided that the
funds for the redemption are on deposit with the place of payment at that time.
2.04. Appointment of'Initial Re~qtrar. The City appoints U.S. Bank National Association, St.
Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and
deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the
Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by
law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The
City agrees to pay the reasonable and customary charges of the Registrar for the services performed.
The City reserves the fight to remove the Registrar upon 30 days' notice and upon the appointment of a
successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its
possession to the successor Registrar and must deliver the bond register to the successor Registrar. On
or before each principal or interest due date, without further order of this Council, the Clerk-Treasurer
must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due.
2.05. Execution: Authentication and Delivery. The Bonds will be prepared under the direction
of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City
Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the
originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to
be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and
sufficient for all purposes, the same as if the officer had remained in office until delivery.
Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any
security or benefit under this Resolution unless and until a certificate of authentication on the Bond has
been duly executed by the manual signature of an authorized representative of the Registrar. Certificates
of authentication on different Bonds need not be signed by the same representative. The executed
certificate of authentication on a Bond is conclusive evidence that it has been authenticated and
delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated,
the City Manager will deliver the same to the Purchaser upon payment of the purchase price in
accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to
see to the application of the purchase price.
2.06. Temporary Rand.q. The City may elect to deliver in lieu of printed definitive Bonds one
or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes
as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution
and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled.
Section 3. Fnrm nflalnnd.
3.01. The Bonds will be printed or typewritten in substantially the following form:
No. R- UNITED STATES OF AMERICA $
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF COLUMBIA HEIGHTS
GENERAL OBLIGATION IMPROVEMENT AND SEWER
AND WATER REVENUE BOND, SERIES 2003A
Date of
Rate ~ Ori~nal I~.~ne CT T~qTP,
Registered owner: Cede & Co.
June 1, 2003
The City of Columbia Heights, Minnesota, a duly organized and existing municipal corporation
in Anoka County, Minnesota (City), acknowledges itself to be indebted and for value received hereby
promises to pay to the Registered Owner specified above or registered assigns, the principal sum of
$ on the maturity date specified above, with interest thereon from the date hereof at the
annual rate specified above, payable February 1 and August 1 in each year, commencing February 1,
2004, to the person in whose name this Bond is registered at the close of business on the fifteenth day
(whether or not a business day) of the immediately preceding month. The interest hereon and, upon
presentation and surrender hereof, the principal hereof are payable in lawful money of the United States
of America by check or draft by U.S. Bank National Association, St. Paul, Minnesota, as Bond
Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the
Resolution described herein. For the prompt and full payment of such principal and interest as the same
respectively become due, the full faith and credit and taxing powers of the City have been and are hereby
irrevocably pledged.
The City may elect on February 1, 2010, and on any day thereafter to prepay Bonds due on or
after February l, 2011. Redemption may be in whole or in part and if in part, at the option of the City
and in such manner as the City will determine. If less than all Bonds of a maturity are called for
redemption, the City will notify The Depository Trust Company (DTC) of the particular amount of such
maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such
maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest.
The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified
tax exempt obligations" within the meaning of Section 265(b)(3) of the Intemal Revenue Code of 1986,
as amended (the Code) relating to disallowance of interest expense for financial institutions and within
the $10 million limit allowed by the Code for the calendar year of issue.
This Bond is one of an issue in the aggregate principal amount of $2,600,000 all of like original
issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all
issued pursuant to a resolution adopted by the City Council on May 5, 2003 (the Resolution), for the
purpose of providing money to aid in financing various improvements to the water and sewage disposal
system of the City and certain other local improvements, pursuant to and in full conformity with the
home rule charter of the City and the Constitution and laws of the State of Minnesota, including
Minnesota Statutes, Section 444.075 and Chapters 429 and 475 and the principal hereof and interest
hereon are payable in part primarily fi:om special assessments levied or to be levied on property specially
benefited by local improvements, in part from ad valorem taxes for the City's share of the cost of the
improvements, and in part from net revenues of the water and sewer system, as set forth in the
Resolution to which reference is made for a full statement of rights and powers thereby conferred. The
full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council
has obligated itself to levy additional ad valorem taxes on all taxable property in the City in the event of
any deficiency in net revenues and special assessments pledged, which taxes may be levied without
limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in
denominations of $5,000 or any integral multiple thereof of single maturities.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the registered
owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof
together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or the owner's attome~ and may also be surrendered in exchange for Bonds of other
authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to
be issued in the name of the transferee or registered owner, of the same aggregate principal amount,
bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax,
fee or govemmental charge required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of
receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be
affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the home role charter of the City and the Constitution and laws of the
State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance
of this Bond in order to make it a valid and binding general obligation of the City in accordance with its
terms, have been done, do exist, have happened and have been performed as so required, and that the
issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory
or charter limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under
the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the
Mayor and City Manager and has caused this Bond to be dated as of the date set forth below.
Dated:
CITY OF COLUMBIA HEIGHTS,
MINNESOTA
Wac~qitnile/ (Fac.qitnile/
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
The following abbreviations, when used in the inscription on the face of this Bond, will be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT Custodian
in common (Cust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors
JT TEN--
as joint tenants with
right of survivorship and
not as tenants in common
Act ............
(State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the tmdersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder, and does
hereby irrevocably constitute and appoint attorney to transfer the said
Bond on the books kept for registration of the within Bond, 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 within Bond in every particular, without alteration or
any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer
Agent Medallion Program ("STEMP"), the Stock Exchange Medallion Program ("SEMP"), the New
York Stock Exchange, Inc. Medallion Signatures Program CMSP"") or other such "signature guarantee
program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or
MSP, all in accordance with the Securities Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
assignee requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond is held by joint account.)
Please insert social security or other identifying
number of assignee
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the
books of the Registrar in the name of the person last noted below.
Signature of
Date of Re~qtratinn Re~.qtered Owner Officer of the Re~qtrar
Cede & Co.
Federal ID #13-2555119
3.02. The City Manager will obtain a copy of the proposed approving legal opinion of
Kennedy & Graven, Chartered, Minneapolis, Minnesota, which will be complete except as to dating
thereof and will cause the opinion to be printed on or accompany each Bond.
Section 4. Payment; ~qecurity; Pledge,q and Cnvenantq,
4.01. (a) The Bonds are payable from the General Obligation Improvement and Sewer and
Water Revenue Bonds, Series 2003A Debt Service Fund (Debt Service Fund) hereby created. The City
shall maintain an "Improvements Account" (Improvements Account) and a "Sewer and Water Utilities
Account" (Utilities Account) in the Debt Service Fund.
(b) The City Manager shall timely deposit in the Improvements Account the special assessments
(Assessments) and taxes (Taxes) levied or to be levied for the Assessable Improvements, which
Assessments and Taxes are pledged to that account of the Debt Service Fund. There is also
appropriated to the Improvements Account of the Debt Service Fund 60% of (i) any amount over the
minimum purchase price paid by the Purchaser and (ii) the accrued interest paid by the Purchaser upon
closing and delivery of the Bonds. If any payment of principal or interest on the Improvement Bonds
portion of the Bonds shall become due when there is not sufficient money in the Improvements
Account of the Debt Service Fund to pay the same, the City Clerk-Treasurer is directed to pay such
principal or interest from the general fund of the City, and the general fund will be reimbursed for such
advances out of the proceeds of Assessments and Taxes when received.
(c) The City will create and continue to operate its Water and Sewer Fund to which will be
credited all gross revenues of the water and sewer plant and system and out of which will be paid all
normal and reasonable expenses of current operations of the water and sewer plant and system. Any
balance therein are deemed net revenues and will be transferred, from time to time, to the Utilities
Account of Debt Service Fund, hereby created in the Water and Sewer Fund, which account will be
used only to pay principal of and interest on Sewer and Water Revenue Bonds portion of the Bonds and
any other bonds similarly authorized. There will always be retained in the Utilities Account of the Debt
Service Fund a sufficient amount to pay principal of and interest on all the Sewer and Water Revenue
Bonds portion of the Bonds and the City Manager must report any current or anticipated deficiency in
the Utilities Account to the City Council. There is appropriated to the Utilities Account of the Debt
Service Fund 40% of (i) any amount over the minimum purchase price paid by the Purchaser and (ii)
the accrued interest paid by the Purchaser upon closing and delivery of the Bonds.
(d) The proceeds of the Bonds, less the appropriations made in paragraphs (b) and (c),
together with any other funds appropriated during the construction of the Assessable Improvements and
the Utility Improvements (collectively, the Improvements) will be deposited in an Assessable
Improvements subaccount and a Utility Improvements subaccount, respectively, in a separate
construction fund to be used solely to defray expenses of the Improvements and the payment of
principal and interest on the Bonds prior to the completion and payment of all costs of the Projects.
When the Improvements are completed and the cost thereof paid, the construction account is to be
closed and any balance in the respective subaccounts therein to be deposited in the Improvements
Account and the Utilities Account, respectively, of the Debt Service Fund, as the case may be.
4.02. It is hereby determined that the Assessable Improvements will directly and indirectly
benefit abutting property, and the City hereby covenants with the holders from time to time of the Bonds
as follows:
(a) The City has caused or will cause the Assessments for the Assessable Improvements to
be promptly levied so that the first installment will be collectible not later than 2003 and will take all
steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The
City Council will cause to be taken with due diligence all further actions that are required for the
construction of each Improvement financed wholly or partly fi'om the proceeds of the Improvement
Bonds portion of the Bonds, and will take all further actions necessary for the final and valid levy of the
Assessments and the appropriation of any other funds needed to pay the Improvement Bonds portion of
the Bonds and interest thereon when due.
(b) In the event of any current or anticipated deficiency in Assessments and Taxes, the City
Council will levy additional ad valorem taxes in the amount of the current or anticipated deficiency.
(c) The City will keep complete and accurate books and records showing: receipts and
disbursements in connection with the Assessable Improvements, Assessments and Taxes levied therefor
and other funds appropriated for their payment, collections thereof and disbursements therefrom, monies
on hand and, the balance of unpaid Assessments and Taxes.
(d) The City will cause its books and records to be audited at least annually and will furnish
copies of such audit reports to any interested person upon request.
4.03. The City Council covenants and agrees with the holders of the Bonds that so long as any
of the Sewer and Water Revenue Bonds portion of the Bonds remain outstanding and unpaid, it will
keep and enforce the following covenants and agreements:
(a) The City will continue to maintain and efficiently operate the water and sewer plant and
system as public utilities and conveniences flee from competition of other like utilities and will cause all
revenues therefrom to be deposited in bank accounts and credited to the water and sewer system
accounts as hereinabove provided, and will make no expenditures from those accounts except for a duly
authorized purpose and in accordance with this resolution.
(b) The City will also maintain the Utilities Account of the Debt Service Fund as a separate
account in the Water and Sewer Fund and will cause money to be credited thereto fi.om time to time, out
of net revenues from the water and sewer plant and system in sums sufficient to pay principal of and
interest on the Sewer and Water Revenue Bonds portion of the Bonds when due.
(c) The City will keep and maintain proper and adequate books of records and accounts
separate from all other records of the City in which will be complete and correct entries as to all
transactions relating to the water and sewer plant and system and which will be open to inspection and
copying by any bondholder, or the bondholder's agent or attorney, at any reasonable time, and it will
fumish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and
said account will be audited at least annually by a qualified public accountant and statements of such
audit and report will be furnished to all bondholders upon request.
(d) The City Council will cause persons handling revenues of the water and sewer plant and
system to be bonded in reasonable amounts for the protection of the City and the bondholders and will
cause the funds collected on account of the operations of the water and sewer plant and system to be
deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law.
(e) The Council will keep the water and sewer plant and system insured at all times against
loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good
standing, in such amounts as are customary for like plants, to protect the holders, from time to time, of
the Bonds and the City from any loss due to any such casualty and will apply the proceeds of such
insurance to make good any such loss.
(f) The City and each and all of its officers will punctually perform all duties with reference
to the water and sewer plant and system as required by law.
(g) The City will impose and collect charges of the nature authorized by Minnesota Statutes,
Section 444.075 at the times and in the amounts required to produce, net revenues adequate to pay all
principal and interest when due on the Sewer and Water Revenue Bonds portion of the Bonds and to
create and maintain such reserves securing said payments as may be provided in this resolution.
(h) The City Council will levy general ad valorem taxes on all taxable property in the City,
when required to meet any deficiency in net revenues.
4.04. It is hereby determined that at least 20% of the cost of the Assessable Improvements will
be specially assessed against benefited properties. For the purpose of paying the principal of and interest
on the Improvement Bonds portion of the Bonds, there is levied a direct annual irrepealable ad valorem
tax (Taxes) upon all of the taxable property in the City, which will be spread upon the tax rolls and
collected with and as part of other general taxes of the City. The taxes will be credited to the Debt
Service Fund above provided and will be in the years and amounts as follows (year stated being year of
levy for collection the following year):
Year
(See Attachment A)
4.05. It is hereby determined that the estimated collections of Assessments and the foregoing
Taxes will produce at lest five percent in excess of the amount needed to meet when due the principal
and interest payments on the Improvement Bonds portion of the Bonds. The tax levy herein provided is
irrepealable until all of the Improvement Bonds portion of the Bonds are paid, provided that at the time
the City makes its annual tax levied the City Manager may certify to the Manager of Property Records &
Taxation of Anoka County the amount available in the Improvements Account of the Debt Service Fund
to pay principal and interest due during the ensuing year, and the Manager of Property Records &
Taxation will thereupon reduce the levy collectible during such year by the amount so certified.
4.06. It is hereby determined that the estimated collection of net revenues for the payment of
principal and interest on the Sewer and Water Revenue Bonds portion of the Bonds will produce at
least five percent in excess of the amount needed to meet, when due, the principal and interest
payments on such portion of the Bonds and that no tax levy is needed at this time with respect to the
Sewer and Water Revenue Bonds portion of the Bonds.
4.07. The City Administrator is directed to file a certified copy of this Resolution with the
Manager of Property Records & Taxation of Anoka County and obtain the certificate required by
Minnesota Statutes, Section 475.63.
Section 5. Authentieatinn of Trameript
5.01. The officers of the City are authorized and directed to prepare and furnish to the
Purchaser and to the attomeys approving the Bonds, certified copies of proceedings and records of the
City relating to the Bonds and to the financial condition and affairs of the City, and such other
certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as
shown by the books and records in their custody and under their control, relating to the validity and
marketability of the Bonds, and such instnnnents, including any heretofore furnished, will be deemed
representations of the City as to the facts stated therein.
5.02. The Mayor and City Manager are authorized and directed to certify that they have
examined the Official Statement prepared and circulated in connection with the issuance and sale of the
Bonds and that to the best of their knowledge and belief the Official Statement is a complete and
accurate representation of the facts and representations made therein as of the date of the Official
Statement.
Section 6. ~.
6.01. The City covenants and agrees with the holders from time to time of the Bonds that it
will not take or permit to be taken by any of its officers, employees or agents any action which would
cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986,
as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of
such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action
within its power that may be necessary to ensure that such interest will not become subject to taxation
under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and
made applicable to the Bonds.
6.02. (a) The City will comply with requirements necessary under the Code to establish and
maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code,
including without limitation requirements relating to temporary periods for investments, limitations on
amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment
earnings to the United States if the Bonds (together with other obligations reasonably expected to be
issued in calendar year 2003) exceed the small-issuer exception amount of $5,000,000.
(b) For purposes of qualifying for the small issuer exception to the federal arbitrage rebate
requirements, the City finds, determines and declares that the aggregate face amount of all tax-exempt
bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City)
during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably
expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code.
6.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit
them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds"
within the meaning of Sections 103 and 141 through 150 of the Code.
6.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of
Section 265(b)(3) of the Code, the City makes the following factual statements and representations:
(a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(b) the City designates the Bonds as "qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than private activity
bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all
subordinate entities of the City) during calendar year 2003 will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during calendar year 2003
have been designated for purposes of Section 265(b)(3) of the Code.
6.05. The City will use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designations made by this section.
Section 7. lgonk-Rntry g.v.qtem; I.imited Ohligatinn nfCity_
7.01. The Bonds will be initially issued in the form of a separate single typewritten or printed
fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance,
the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the
name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its
successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be
registered in the registration books kept by the Bond Registrar in the name of Cede &Co., as nominee of
DTC.
7.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in
the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will
have no responsibility or obligation to any broker dealers, banks and other financial institutions from
time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on
behalf of which a Participant holds an interest in the Bonds, including but not limited to any
responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any
Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any
other person (other than a registered owner of Bonds, as shown by the registration books kept by the
Bond Registrar), of any notice with respect to the Bonds, including any notice of redemption, or (iii) the
payment to any Participant or any other person, other than a registered owner of Bonds, of any amount
with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and
the Paying Agent may treat and consider the person in whose name each Bond is registered in the
registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the
purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of
registering transfers with respect to such Bond, and for all other purposes. The Paying Agent will pay all
principal of, premium, if any, and interest on the Bonds only to or on the order of the respective
registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments
will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of
principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No
person other than a registered owner of Bonds, as shown in the registration books kept by the Bond
Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by
DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new
nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and
upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond
Registrar and Paying Agent.
7.03. Repre~qentation l ~tter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (Representation Letter) which shall govern payment of principal of,
premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or
Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action
necessary for all representations of the City in the Representation letter with respect to the Bond
Registrar and Paying Agent, respectively, to be complied with at all times.
7.04. Tran.qfer.q fh~t.qide l:lnnk-F.n~ ~qy.qtern. In the event the City, by resolution of the City
Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds
that they be able to obtain Bond certificate, the City will notify DTC, whereupon DTC will notify the
Participants, of the availability through DTC of Bond certificates. In such event the City will issue,
transfer and exchange Bond certificates as requested by DTC and any other registered owner in
accordance with the provisions of this Resolution. DTC may determine to discontinue providing its
services with respect to the Bonds at any time by giving notice to the City and discharging its
responsibilities with respect thereto under applicable law. In such event, if no successor securities
depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in
accordance with this resolution and the provisions hereof will apply to the transfer, exchange and
method of payment thereof.
7.05. Payrnent.q tn Cede & Co_ Notwithstanding any other provision of this Resolution to the
contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with
respect to principal of, premium, if any, and interest on the Bond and all notices with respect to the Bond
will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set
forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. In order to qualify the Bonds for limited continuing disclosure under paragraph (d)(2) of
Securities and Exchange Commission Rules, Section 15c2-12 (the SEC Rule), the City makes the
following factual statement and representation: As of the date of delivery of the Bonds, the City will
not be n obligated person (as defined in paragraph (f) of the SEC Rule) with respect to more than
$10,000,000 in aggregate amount of outstanding municipal securities, including the Bonds and
excluding municipal securities that were exempt from the SEC Rule pursuant to paragraph (d)(1)
thereof.
8.02. The City hereby covenants and agrees that it will comply with and carry out all of the
provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this
Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be
considered an event of default with respect to the Bonds; however, any Bondholder may take such
actions as may be necessary and appropriate, including seeking mandate or specific performance by
court order, to cause the City to comply with its obligations under this section.
8.03. "Continuing Disclosure Certificate" means that certain Continuing Disclosure
Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of
the Bonds, as originally executed and as it may be amended from time to time in accordance with the
terms thereof.
Section 9. Defeagance.
9.01. When all Bonds (or all of either the Improvement Bonds or Sewer and Water Revenue
Bonds portion thereof) have been discharged as provided in this section, all pledges, covenants and
other fights granted by this resolution (with respect to the Improvement Bonds or Sewer and Water
Revenue Bonds portion of the Bonds, as the case may be) to holders of the Bonds will cease, except
that the pledge of the full faith and credit of the City for the prompt and full payment of the principal
of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds
(or all of either the Improvement Bonds or Sewer and Water Revenue Bonds portion thereof) which
are due on any date by depositing with the Registrar on or before that date a sum sufficient for the
payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged
by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued
to the date of such deposit.
Passed this 5th day of May 2003
Offered by:
Second by:
Roll call:
Attest:
patricia Muscovitz, CMC /
Deputy City Clerk/Council Secretary
Kelzenberg
Williams
Ayes: Wyckoff, Williams, Nawrocki, Kelzenberg, Ericson Nays: None
~ Mayor Julienne W~ff (,~
STATE OF MINNESOTA )
)
COUNTY OF ANOKA ) SS.
)
CITY OF COLUMBIA )
HEIGHTS )
I, the undersigned, being the duly qualified and acting Manager of the City of Columbia Heights,
Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of the City held on May 5, 2003 with the
original minutes on file in my office and the extract is a full, tree and correct copy of the minutes insofar
as they relate to the issuance and sale of $ General Obligation Improvement and Sewer
and Water Revenue Bonds, Series 2003A of the City.
WITNESS My hand officially as such Manager and the corporate seal of the City this
day of ., 2003.
City Manager
Columbia Heights, Minnesota
(SEAL)
STATE OF MINNESOTA
COUNTY OF ANOKA
MANAGER OF PROPERTY
RECORDS & TAXATION'S
CERTIFICATE AS TO
TAX LEVY AND
REGISTRATION
I, the undersigned Manager of Property Records & Taxation of Anoka County, Minnesota,
hereby certify that a certified copy of a resolution adopted by the governing body of the City of
Columbia Heights, Minnesota, on May 5, 2003, levying taxes for the payment of $
General Obligation Improvement and Sewer and Water Revenue Bonds, Series 2003A, of said
municipality dated June 1, 2003, has been filed in my office and said bonds have been entered on the
register of obligations in my office and that such tax has been levied as required by law.
WITNESS My hand and official seal this ~ day of ,2003.
(SEAL)
Manager of Property Records & Taxation
Anoka County, Minnesota
By.
Deputy
PRINCIPAL AND'II I ~REST PAYMENTSCHEOULE
Totll Pmjmenl! on 2003A
Quo ~M Pr~l, , ~t ~ P & I ~1 Tall Ri~ ~Mlt ~MI T~ ~l I~E ~n~ T~
~1~ ~.~ ~,~ ~.~S~
W~7 33.072 ~ ~,072.~ 18.~7,~ 14.375 ~
~lq~ ~.~.~ 28,~.75 15.7~.~ 12.572 ~
~l~tO 25.~ 75 ~533.75 14,011.~ 11.5~ ~
~1~14 I~,~ 13,~2.~ 6.~5.~ 6.~7.~
~1~15 165,0~ 3.~ 13.~.~ 178.~.~ 19t.~ ~ ~,~.~ 6.~5.~ ~.~.~ ~.~ 6.~7.~ ~715.~
~!~15 9.9~ 9.~.~ 5.072.~ 4,B77.~
~1~016 6.~5 ~ 6.8t 5.~ 3,~7 ~ 3,357.~
~1~017 170,~ 3.~ 6.6t5~ 176,815.~ ~.~.~ ~.~ 3,457.~ 91.glS.~ 6~.~ 3,~7~ ~t.715.~
AK2
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ALtachment A
O EHLERS
Cit~ of Columbia Hei~hta;, Minnesota
$2,600,000 General Oldlgation Impmvemerlt end Sever and Water Revenue Bond~, SaM 2003A
$1,$55,000 General Obli~aUon Improvement Bond portion:
Levy Collect
Year Year
2002
2003
2O04
2005
2006
2007
2008
2O09
2010
2011
2012
20t3
2014
2015
2016
2017
To~la
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Improvement
Pay Portion of
Year Total P & I
2004 119,423.33
2005 158,145.00
2006 156,650 00
2007 154,810.00
2008 152,395.00
201~ 149,635.00
2010 146,472.50
2011 143,022.50
2012 139,285.00
2013 135,375.00
2014 101.350.00
2015 98.290.00
2016 96.145.00
2017 91,915.00
2018 93,600.00
2019
1 935,$13.33
Funde
12.987.83
(2} (3)
P & I Le~m: Leis:
x 10~% spec Assmlo ,, spec Aumt~
111,757.28 34,158. 00 0.130
186,052.25 33,126.00 5:3,036.00
164.48Z50 32,099.00 51,290.00
162.650.50 3t ,070.00 49,545.00
160,014.75 30,040.00 47,7gg.00
157,116.75 29,011.00 46.054.00
163.796.13 27,981.00 44,308.00
150,173.63 26,952.00 42,563.00
146,249;25 25,922.00 40,817.00
142,143.76 24,893.00 39,072.00
106,417.$0 23.864.00 37.326.00
103.204.50 22,834.00 36.68t.00
99,902.25 21,805.00 33,835.00
96.5t0.75 20,775.00 32,0g0.00
98,280.00 19,746.00 30,344.00
28,599.00
12.987.83 2r018,661.78 404,278.00 612,259.00 ,
(1) The foaowing fun<la ere available to pay, ponk~ of the interest payment due February 1. 2004:
Accrued Intet'e~t: $507.83
Unused DIsoount: 12~480.00
Total Funds, Avatbl~le: '~121987.83
(2) Projected Special Assessment revenue based on $280,749 assessed at 5.50%.
(3) Projected Special Assessment revenue baaed on S402,802 assessed at
(4) Projected Spe,'aat Assessment revenue hase~ on $322,420 esses~md at 6.50%.
Cashflow and levy needa should be reviewed annually to account for i~epaid end/or delinquent
The City has sufficient funds on hand to cover this amount.
$1,~56,000 $1,568,000
(4) Improvement Improvement
Leal: PorUon Portion
spec Aurora Net ~ ,,,v}r Tax lev,/
49,975,00 27,624.28 27,700
48,202.00 31.6~6.25 31.700
46,428.00 34,665.50 34,700
44,655.00 37,280.50 37.300
42.882.00 39.293.75 39.300
41,109.00 40,942.75 41,000
39.335.00 42,172.13 42.200
37,562.00 43,096.63 43,100
36.789,00 43,721.28 43.800
34.015.00 44,163.75 44.200
45.227.50 45,300
44,769.50 44.800
44,262.25 44,30O
43.645.75 43.700
48,190.00 48.200
4161952.00 $10,781.79 6tl,300