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HomeMy WebLinkAboutMay 5, 2003 Special MeetingCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. columbia-heights, mn. us AOt~tNtS rRA rtOtl May 2, 2003 Mayor Julienne Wyckoff Councilmembers Robert ,4. Williams Bruce Nawrocld Tammera Ericson Bruce Kelzenberg City Manaeer Walter R. Fehst The following is the agenda for the special meeting of the City Council to be held at 7:00 p.m. on Monday, May 5, 2003 in Conference Room 1, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled persons are available upon request when the request is made at least 96 hours in advance. Please call the Deputy City Clerk at 763-706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) CALL TO ORDER/ROLL CALL ITEMS FOR CONSIDERATION A) Bid Considerations Adopt Resolution No. 2003-21, being a resolution authorizing the sale of general obligation improvements bonds series 2003A. MOTION: Move to waive the reading of Resolution No. 2003-21, there being ample copies available to the public. MOTION: Move to adopt Resolution #2003-21, being a resolution authorizing the sale of $ general obligation improvements bonds series 2003A. 3. ADJOURNMENT Walter R. Feh~t, Cit~'Manager WF/pvm THE CITY Of COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY In EMPLOYMENT OR THE PROVISION Of SERVICES EQUAL OPPORTUNITY EMPLOYER CITY COUNCIL LETTER Meeting of: May 5, 2003 AGENDA SECTION: ORDINANCES & ORIGINATING DEPT.: CITY MANAGER RESOLUTIONS FINANCE APPROVAL ITEM: A RESOLUTION AWARDING THE BY: WILLIAM ELRITE BY: SALE OF $ GENERAL DATE: April 30, 2003 DATE: OBLIGATION IMPROVEMENT BONDS SERIES 2003A NO: Previously the City Council adopted Ordinance 1455 authorizing the sale of bonds. The second reading of this ordinance was held on March 24, 2003. The sale of these bonds is scheduled for May 5, 2003. The attached resolution authorizes and awards this sale. At the meeting of May 5, 2003, city bond counsel will have the numbers related to the sale to fill in on the resolution. The attachment is a drai~ of the resolution that will be presented for adoption at that meeting. RECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution #2003-21, being a resolution authorizing the sale of $__ general obligation improvement bonds series 2003A. WE:sms 0304302COUNCIL Attachment COUNCIL ACTION: RESOLUTION NO. 2003-21 A RESOLUTION AWARDING THE SALE OF $ 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. Background. 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 after 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 $ 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 (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 $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Year of Maturity Rate Maturi _ty Interest Rate 2004 2012 2005 2013 2006 2014 2007 2015 2008 2016 2009 2017 2010 2018 2011 True interest cost: 1.05. The sum of $ being the amountproposed by the Purchaser in excess of $2,567,500 will be credited to the Debt Service Fund hereinafter created. 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 return 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 $ , originally dated June 1, 2003, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, 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 Amount 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 Amount 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. Optional Redemption. 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 amount of each participant's interest in such maturity to be red~med 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. Registration and Payment. 2.01. Registered Form. 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. Dates; 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. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the fights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. 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) Transfer of Bonds. 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 Bonds. 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) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. 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. (f) Persons Deemed Owners. 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) Taxes, Fees and Charges. 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, Lost, Stolen or Destroyed Bonds. Ifa 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) Redemption. 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 Registrar. The City appoints U.S. Bank NationalAssociation, 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 right 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_ Bonds. 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. Form of Bond. 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 Maturity Original Issue CUSIP June 1, 2003 Registered Owner: Cede & Co. 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 stun 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 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 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 Internal 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 $ 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 from 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 attorney; 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 governmental 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 rule 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 (Facsimile) (Facsimile) 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 in common TEN ENT -- as tenants Custodian (Gust) (minor) under Uniform Girls or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and not as tenants in common (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned 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 assignors 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 ("MSP"") 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 RegisWar 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. Date of Registration Registered Owner Signature of Officer of the Registrar 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; Security; Pledges and Covenants. 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 % 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 __% 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 from 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 free 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 from 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 furnish 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 Levy (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. Authentication of Transcript. 5.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys 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 maybe 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 instruments, 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. Tax Covenant. 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 m-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. Book-Entry System; Limited Obligation of City. 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. Representation Letter. The City has heretofore executed and dehvered 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. Transfers Outside Book-Entry_ System. 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 thereofi 7.05. Payments to 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. Defeasance. 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 rights 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. The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof.' and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 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 Deputy BID TABULATION $2,600,000 General Obligation Bonds, Series 2003A CITY OF COLUMBIA HEIGHTS, MINNESOTA SALE: May 5, 2003 AWARD: NORTHLAND SECURITIES, INC. RATING: Moody's Investors service "Al" BBh 4.58% NAME OF BIDDER NET TRUE MATURITY RATE REOFFERING PRICE INTEREST INTEREST (February 1) YIELD COST RATE NORTHLAND SECURITIES, INC. Minneapolis, Minnesota 2004 1.100% 1.100% 2005 1.300% 1.300% 2006 1.600% 1.600% 2007 2.100% 2.100% 2008 2.400% 2.400% 2009 2.750% 2.750% 2010 3.000% 3.000% 2011 3.250% 3.250% 2012 3.400% 3.400% 2013 3.500% 3.500% 2014 3.600% 3.600% 2015 3.700% 3.700% 2016 3.800% 3.800% 2017 3.900% 3.900% 2018 4.000% 4.000% $2,588,300.00 $697,568.33 3.4313% CRONIN & COMPANY, INC. Minneapolis, Minnesota CITIGROUP GLOBAL MARKETS, INC. Chicago, Illinois UBS PAINEWEBBER, INC. Chicago, Illinois MORGAN STANLEY DW, INC. Chicago, Illinois CIBC WORLD MARKETS New York, New York CITIZENS BANK Flint, Michigan 2004 2.000% 2005 2.000% 2006 2.000% 2007 2.500% 2008 2.500% 2009 3.000% 2010 3.000% 2011 3.100% 2012 3.250% 2013 3.350% 2014 3.500% 2015 3.550% 2016 3.650% 2017 3.800% 2018 3.850% $2,579,803.65 $695,302.18 3.4363% EHLERS & ASSOCIATES INC LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive, Roseville, MN 55113-1105 651.697.8500 fax 651.697.8555 www.ehlers-inc.com Offices in Roseville, MN, 8rookfield, WI and Naperville, IL $2,600,000 General Obligation Bonds, Series 2003A City of Columbia Heights, Minnesota Page 3 NAME OF BIDDER MATURITY (February 1) RATE REOFFERING YIELD PRICE NET INTEREST COST TRUE INTEREST RATE MILLER JOHNSON STEICHEN KINNARD INVESTMENT SECURITIES, INC. Minneapolis, Minnesota 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2.0O0% 2,000% 2.000% 2.100% 2.500% 2.750% 3.000% 3.250% 3.40O% 3.500% 3.600% 3.7OO% 3.800% 3.900% 4.O0O% $2,574,000.00 $717,153.33 3.5449% Page 1 of 3 Bill Elrite - Columbia Heights (City of) MN From: "Moody's Investors Service" <epi@moodys.com> To: <bill.elrite@ci.columbia-heights.m n.us> Date: 4/30/2003 8:20 AM Subject: Columbia Heights (City of) MN MOODY'S ASSIGNS A1 RATING TO COLUMBIA HEIGHTS' (MN) $2.6 MILLION GO BONDS, SERIES 2003A A1 AFFIRMATION AFFECTS $6.7 MILLION OF PARITY DEBT, INCLUDING CURRENT ISSUE Columbia Heights (City of) MN Municipality Minnesota Moody's Rating Issue Rating General Obligation Bonds, Series 2003A Sale Amount $2,600,000 Expected Sale Date 05/05/03 Rating Description General Obligation A1 NEW YORK, April 30, 2003 -- Moody's Investors Service has assigned an A1 rating to the City of Columbia Heights' (MN) $2.6 million General Obligation Bonds, Series 2003A. The Bonds are secured by the City's full faith and credit taxing powers and proceeds from the bonds will be used to finance vadous public improvements within the City, including water main, storm sewer and street improvements. Concurrently, Moody's has affirmed the A1 rating on the City's $6.7 million of outstanding parity debt, including the current issue. The rating assignment is based on the City's healthy financial margins, average debt levels, and continued tax base growth. SOUND FINANCIAL POSI-I-ION EVIDENCED BY HEALTHY RESERVES Moody's expects the City to maintain a sound financial position due to prudent management and a growing tax base. Over seven years of operating surpluses (before transfers) have contributed to a healthy General Fund balance and the creation of Capital Equipment and Building Funds. In fiscal year 2001, the General Fund balance was $3.9 million or 50.7% of General Fund revenues. Unaudited fiscal year 2002 results show an additional surplus of $879,000 before transfers bdnging the Capital Equipment fund to $4.5 million and the Capital Building Fund to $2.9 million. This level of reserves precludes the need for short-term borrowing and provides ample support for unexpected contingencies. The City has a policy of maintaining reserves at a minimum of 45% of the next year's budget. The City's 2003 budget factors in potential State aide cuts due to the Governor's proposal and has passed a balanced budget. Officials believe that the City will use a combination of increased fees and budget cuts to balance the fiscal year 2004 budget. file://C:LDocuments and Settings\CCH-User\Local Settings\Temp\GW}00001 .HTM 5/5/2003 Page 2 of 3 MAINTENANCE OF MANAGEABLE DEBT PROFILE Moody's believes the City's average debt burden of 3.0% is manageable due tax increments and utility revenues, which fund a significant portion, approximately 90% of debt service. In addition, the City has limited future borrowing plans and a rapid rate of principal retirement (85% in ten years). The average debt burden is primarily due to the overlapping school district, which accounts for 82% of the overlapping debt. The City's direct debt ratio is Iow at 0.6%. Proceeds of this sale will be used to for street improvements and water and sewer upgrades, which are expected to be self-supporting through state aid grants, sewer and water revenues and special assessments, yet backed by a general obligation pledge. City officials do not anticipate future borrowing of until at least 2005 for similar improvements. TAX BASE GROWTH EXPECTED TO CON-rINUE Moody's anticipates future tax base growth to remain modest, as the City is a mature, fully developed inner-tier suburb north of Minneapolis (rated Aa1). The City's $1 billion tax base has increased at an average of 8.7% annually over the last four years. The City has been involved in redevelopment projects, purchasing and rehabilitating existing homes and building, largely through successful tax increment districts. The population, presently estimated at 18,529, has decreased slightly since 1990. Wealth indices are somewhat lower than state averages. KEY STATISTICS 2000 census: 18,520 2002 full value: $1 billion 2002 Full value per capita: $57,103 Debt burden: 3.0% Amortization of principal (10 years): 85% FY01 General Fund balance: $3.9 million (50.7% of General Fund revenues) MFI as a % of state (1999): 71.3% PCI as a % of state (1999): 92.1% Debt outstanding: $6.7 million ANALYSTS: 3ulia Harris, Analyst, Public Finance Group, Moody's Investors Service ]on M. North, Backup Analyst, Public Finance Group, Moody's Investors Service CONTACTS: Journalists: (212) 553-0376 Research Clients: (212) 553-1653 Copyright 2003, Moody's Investors Service, Inc. and/or its Iicensors including file://C:LDocuments and Settings\CCH-User\Local Settings\Temp\GW}00001.HTM 5/5/2003 Page 3 of 3 Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMII-I-ED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. 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The credit ratings, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding or selling. Pursuant to Section 17(b) of the Securities Act of 1933, MOODY'S hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MOODY'S have, prior to assignment of any rating, agreed to pay to MOODY'S for appraisal and rating services rendered by it fees ranging from $1,500 to $1,500,000. file://C:LDocuments and Settings\CCH-User\Local Settings\Temp\GW}00001.HTM 5/5/2003