HomeMy WebLinkAboutResolution No. 2008-160CITY OF COLUMBIA HEIGHTS, MINNESOTA
RESOLUTION N0.2008-160
RESOLUTION AWARDING THE SALE OF $10,000,000
GENERAL OBLIGATION PUBLIC SAFETY CENTER BONDS,
SERIES 2008B, FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council (the "Council") of the City of Columbia
Heights, Anoka County, Minnesota (the "City"}, as follows:
Section 1. Recitals.
1..01. The City is authorized by the Charter of the City of Columbia Heights (the
"Charter") to issue its general obligation bonds for, among other things, the purchase or erection
of needful public buildings within the City. The City therefore intends to issue its general
obligation bonds pursuant to the Charter to finance a new public safety center for the City's
police and fire departments (the "Project").
1.02. On March 24, 2008 the Council conducted a first reading of an ordinance
authorizing the City to issue its general obligation bonds in the maximum principal. amount of
$11,500,000 to finance the Project (the "Ordinance").
1.03. On April 14, 2008, the Council conducted a second reading of the Ordinance and
adopted the Ordinance, subject to referendum as described in the Charter.
1.04. The Ordinance was published at least once in the City's official newspaper. The
City Clerk did not receive a petition signed by the requisite amount of registered voters in the
specified tone frame to requgre a referendum on t11e Issuance of the Bonds (hereinafter defned)
under the Charter.
1.05. At its June 23, 2008 meeting, the Council authorized the reduction of the principal
amount of the Bonds to $10,000,000, with the intent to issue future additional obligations to
finance the Project.
Section 2. Sale of Bonds.
2.01. Award to Purchaser. The proposal of Stifle, Nicolaus & Co., Inc., Minneapolis,
Minnesota (the "Purchaser") to purchase the City's $10,000,000 General Obligation Public
Safety Center Bonds, Series 2008B (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 $9,925,904.85, for Bonds bearing interest as follows:
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Year Interest Rate Year Interest Rate
201 I 4.30% 2018 4.30%
2012 4.30 2019 4.30
2013 4.30 2020 4.30
2014 4.30 2021 4.30
2015 4.30 2022 4.30
2016 4.30 2023 4.30
2017 4.30 2024 4.35
Term. Bonds due February 1, 2026 at 4.35%.
Term Bonds due February 1, 2028 at 4.35%.
Term Bonds due February 1, 2030 at 4.40%.
Tenn Bonds due February 1, 2032 at 4.45%.
Term Bonds due February 1, 2035 at 4.50%.
Term Bonds due February 1, 2038 at 4.55%.
True Interest Cost: 4.4946197%
2.02. Purchase Contract. The sum of $904.85 being the amount proposed by the
Purchaser in excess of $9,925,000 shall be credited to the Construction Fund under Section. 4.01
hereof. The City Finance Director is directed to deposit the good faith check of the Purchaser on
behalf of the City pending completion of the sale and delivery of the Bonds, and to return the
checks of the unsuccessful proposers forthwith. The Mayor and the City Manager are directed to
execute a contract with the Purchaser on behalf of the City.
2.03. Terms and Principal Amounts of the Bonds. The City will forthwith issue the
Bonds pursuant to the Charter, in the total principal amount of $10,000,000, originally dated as
of August 6, 2008, the Bonds being in fully registered form and issued in the denomination of
$5,000 nr any integral n„~itiple thereof numbered No. R-1 and ~lpward, hearing interest as above
set forth, and maturing serially on February 1 in the years and amounts as follows:
Year Amount Year Amount
2011 $190,000 2018 $250,000
2012 200,000 2019 260,000
2013 205,000 2020 270,000
2014 215,000 2021 285,000
2015 220,000 2022 295,000
2016 230,000 2023 310,000
2017 240,000 2024 320,000
Term Bonds due February 1, 2026 in the aggregate principal amount of $685,000.
Term Bonds due February 1, 2028 in the aggregate principal amount of $755,000.
Term Bands due February 1, 2030 in the aggregate principal amount of $830,000.
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Tern1 Bonds due February 1, 2032 in the aggregate principal amount of $910,000.
Term Bonds due February 1, 2035 in the aggregate principal amount of $1,545,000.
Term Bonds due February 1, 2038 in the aggregate principal amount of $1,785,000.
2.04. Optional Redemption. The City may elect on February 1, 2018, and on any date
thereafter to prepay Bonds due on or after February 1, 2019. 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 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.
2.07. Mandatory Redemption. The Term Bonds are subject to mandatory sinking fund
redemption and shall be redeemed in part by lot at par plus accrued interest on the sinking fund
installment dates and in the principal amounts as follows:
Sinkinu Fund Installment Date Princinal Amount
February 1,
2026 Term Bonds
2025 $335,000
2026 (maturity) 350,000
2028 Term Bonds
2027 370,000
2028 (maturity) 385,000
2030 Term Bonds
2029 405,000
2030 (maturity) 425,000
2032 Term Bonds
2031 445,000
2032 (maturity) 465,000
2035 Term Bonds
2033 490,000
2034 515,000
2035 (maturity) 540,000
2038 Term Bonds
2036 565,000
2037 595,000
2038 (maturity) 625,000
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The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All prepayments
will be at a price of par plus accrued interest.
Section 3. Form; Registration.
3.01. Registered Form. The Bonds will be issuable only in fully registered form. The
interest thereon and, upon surrender of each Bond, the principal amount thereof will be payable
by check or draft issued by the Registrar described herein.
3.02. 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 in each. year, commencing February 1,
2009, to the registered owners of record as of the close of business on the fifteenth day of the
immediately preceding month, whether or not that day is a business day.
3.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating
agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of
the City and the Registrar with respect thereto are as follows:
(a} Re inter. The Registrar will keep at its principal corporate trust office a bond
register in which the Registrar will provide for the registration of ownership of
Bands 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 any Bond duly endorsed by the
reuistered owner thereof or accomaanied 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. Whenever any 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's attorney in writing.
(d) Cancellation. All Bonds surrendered upon a transfer or exchange will be
promptly cancelled by the Registrar and thereafter disposed of directly by the
City.
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(e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar
for transfer, the Registrar may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized. The Registrar will
incur no liability far 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 any Bond is at any time registered in the bond register as the
absolute owner of such Bond, whether such Bond is overdue or not, far the
purpose of receiving payment of, or on account of, the principal of and. interest on
such Bond and for all other purposes, and all such payments so made to any such
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 to be
paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner
thereof for every 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 such. transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed. Bonds. In case any Bond becomes mutilated
or destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount,
number, maturity date and tenor in exchange and substitution. far and upon
cancellation of any such mutilated Bond or in lieu of and in substitution for any
such Band 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 such Bond was destroyed. stolen or lost, and of the ownership thereof, and
upon furnishing to the Registrar an appropriate bond or indemnity in form,
substance and amount satisfactory to it, in which both the City and the Registrar
will be named as obligees. All Bonds so surrendered to the Registrar will be
cancelled. by it 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 will not be 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) 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 any registered owner,
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
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after the specified redemption date, provided that the funds for the redemption are
on deposit with the place of payment at that time.
3.04. Appointment of Initial Re isg tray. 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 will
be 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 will deliver the bond register to the successor Registrar. On or
before each principal or interest due date, without further order of this City Council, the City
Finance Director will transmit to the Registrar moneys sufficient for the payment of all principal
and interest then due.
3.05. Execution, Authentication and Delivery. The Bonds will be prepared under the
direction of the City Manager and will be 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 will cease 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, no Bond will 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 a 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 each Bond will be conclusive evidence that it has been authenticated and
delivered under this Resolution.. When the Bonds have been so prepared, executed and
authenticated. the Citv Finance Director will deliver the same to the Purchaser thereof upon.
payment of the purchase price in accordance with the contract of sale heretofore made and
executed, and the Purchaser .vill not be obligated to see to the application of the purchase price.
3.06. 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 3.07 with such changes as may be necessary to reflect more than one maturity in a single
temporary bond. Upon the execution anal delivery of definitive Bonds the temporary Bonds will
be exchanged therefor and cancelled.
3.07. Form of Bonds. The Bonds will be printed or typewritten in substantially the
following form:
No. R- UNITED STATES OF AMERICA $
STATE OF MINNESOTA
COUNTY OF ANOKA
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CITY OF COLUMBIA HEIGHTS
GENERAL OBLIGATION PUBLIC SAFETY CENTER
BONDS, SERIES 2008B
Date of
Rate Maturit.~ Original Issue CUSIP
February 1, 20 August 6, 2008
Registered Owner: Cede & Co.
The City of Columbia Heights, Minnesota, a duly organized and existing municipal
corporation and political subdivision. located in Anoka County, Minnesota (the "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 amount 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, 2009,
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, Authenticating Agent. and Paying 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, 2018, and on any date thereafter to prepay Bonds due
on or after February 1, 2019. Redemption may be in whole or in Hart and if in Hart. at the option
of the City and in suc11 mamler as the City will determine. If less than all Bonds of a maturity are
called for redemption, the City :vill notify Depositor,] Trust Company ("DTC") of the particular
amount of such maturity to be prepaid. DTC will deternine 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 Term bonds are subject to mandatory sinking fund redemption and shall be redeemed
in part by lot at par plus accrued interest on the sinking fund installment dates and in the
principal amounts as follows:
Sinking Fund Installment Date Principal Amount
February 1,
2026 Term Bonds
2025 $335,000
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2026 (maturity)
2028 Term Bonds
350,000
2027 370,000
2028 (maturity) 385,000
2030 Term Bonds
2029 405,000
2030 (maturity) 425,000
2032 Term Bonds
2031 445,000
2032 (maturity) 465,000
2035 Term Bonds
2033 490,000
2034 515,000
2035 (maturity) 540,000
2038 Term Bonds
2036 565,000
2037 595,000
2038 (maturity) 625,000
The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All 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 1.986. as amended (the "Code"1 relating to disallowance of interest exnense far 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 $10,000,000, all of like
original date and tenor, except as to number, maturity date, redemption privilege and interest
rate, issued pursuant to a resolution adopted by the City Council on July 14, 2008 (the
"Resolution"), for the purpose of providing funds for the construction of a new public safety
center for the police and fire departments within the City, as authorized by the Charter of the
City of Columbia Heights (the "Charter"), pursuant to and in full. conformity with the
Constitution, the Charter and the laws of the State of Minnesota, including Minnesota Statutes,
Chapter 475. The principal hereof and interest hereon are payable from ad valorem taxes levied.
on all taxable property in the City, and if necessary for the payment thereof additional ad
valorem. taxes are required by law to be levied on all taxable property in the City, which taxes are
not subject to any limitation as to rate or amount, as set forth in the Resolution to which
reference is made for a full statement of rights and powers thereby conferred. 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.
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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 Band 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
t11e 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 change 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 Charter and the Constitution and laws of the State of
Mi~ulesota 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 Band is not valid or obligatory far any purpose or entitled to any security or benefit
under the Resolution until the Certificate of Authentication hereon will have been executed b_y
the Bond Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Mimlesota, by
its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual
signatures of the Mayor and the 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
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This is one of the Bonds delivered pursuant to the Resolution. mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
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 attonley to transfer the
said Bond on the books kept for registration of the within Bond, with full power of substitution
in the premise.
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:
Slgnature(s} rn~ct ~ie guava??te?d by a fi?Ianc?al 212st1t'.itlnn t12at 1S a member of the SeC'.Zr:tIPS
Transfer Agent Medallion Program ("STAMP"), 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 Registrar will not effect transfer of this Bond unless the information
concerning the assignee requested below is provided.
Name and Address:
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(Include information for all joint owners
if the 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 Registration Registered Owner Officer of the Registrar
Cede & Co.
Federal ID #13-2555119
3.08. Leal Opinion. The City Finance Director will obtain a copy of the proposed
approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, as bond
counsel, which. will be complete except as to dating thereof and will cause the opinion to be
printed on or accompany each Bond. 1 v j
Section 4. Security; Pa. ny zent.
4.01. (a) Debt Service Fund. The Bonds will be payable from the General Obligation
Public Safety Center Bonds, Series 2008B Debt Service Fund (the "Debt Service Fund") hereby
created, and the proceeds of the ad valorem taxes hereinafter levied are hereby pledged to the Debt
Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not
sufficient money in the Debt Service Fund to pay the same, the City Finance Director will pay such
principal or interest from the general fund of the City, and the general fund will be reimbursed for
those advances out of the proceeds of the taxes levied by this Resolution, when collected. There is
appropriated to the Debt Service Fund $314,193.92, representing capitalized interest financed from
Bond proceeds.
(b) Construction Fund. The proceeds of the Bonds, less the appropriations made in
paragraph (a), together with any other funds appropriated for the Project and any amounts in
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excess of the minimum proposal designated for deposit herein in accordance with Section 2.02
hereof, will. be deposited in a separate construction fund (the "Construction Fund") to be used
solely to defray expenses of the Project. when the Project is completed and the cost thereof
paid, the Construction Fund is to be closed and any balance in the fund is to be deposited in the
Debt Service Fund.
4.02. Pledge of Taxes. For the purpose of paying the principal of and interest on the
Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in
the City, to be spread upon the tax rolls and collected with and as part of other general taxes of the
City. The tax will. be credited to the Debt Service Fund above provided and is in the years and
amounts as follows (year stated being year of collection):
Year Levy
(See EXHIBIT B)
4.03. Debt Service Coverage. It is determined that the estimated collection of the
foregoing taxes will produce at least f ve percent in excess of the amount needed. to meet when. due,
the principal and interest payments on the Bonds. The tax levy herein provided will be irrepealable
until all of the Bonds are paid, provided that at the time the City makes its annual tax levies the City
Manager may certify to the County Auditor of Anoka County the amount available in the Debt
Service Fund to pay principal and interest due during the ensuing year, and the County Auditor will
thereupon reduce the levy collectible during such year by the amount so certified.
4.04. Registration of Resolution. The City Clerk is authorized and directed to file a
certified copy of this Resolution with. the County Auditor of Anoka County aild to obtain the
certificate required by Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. City Proceedings and Records. The officers of the City are hereby authorized and
directed to prepare and f'arnish to the Purchaser and to the attorneys approving the Bands,
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
instruments, including any heretofore furnished, will be deemed representations of the City as to
the facts stated therein.
5.02. Certification as to Official Statement. The Mayor, the City Finance Director and
the City Manager are hereby 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, as of the date thereof,
a complete and accurate representation of the facts and representations made therein as it relates
to the City.
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5.03. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the
amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts
payable to Kennedy & Graven, Chartered as Bond Counsel} to the Registrar on the closing date
for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc.
Section 6. Tax Covenants.
6.01. Tax-Exempt Bonds. The City covenants and agrees with the holders from time to
time of the Bonds that it will not take or pernut 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. No Rebate Required. 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, to the extent the Bonds
do not qualify for an exemption from rebate under the Code and related Treasury Regulations.
6.03. Not Private Activity Bonds. 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. Qualified Tax-Exempt Obligations. 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
fo1_lowing fact~.zal statements and representations:
Code;
(a) the Bonds are not "private activity bonds" as defined in Section 141 of the
(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 2008 will not exceed
$1.0,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during calendar
year 2008 have been designated for purposes of Section 265(b)(3) of the Code.
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6.05. Procedural Requirements. 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-Entr~ystem; Limited Obligation of City.
7.01. DTC. 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. 2.03
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. Participants. 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 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 (the
"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 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 ar interest on the Bonds. The City, the 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 Registrar as the holder and absolute owner of such Bond for the purpose of
payment of principal and interest with respect to such. Bond, for the purpose of registering
transfers with respect to such Bonds, and for all other purposes. The Paying Agent will. pay all
principal of and interest o.. the Bonds only to or on the order of the respective registered o.x/ners,
as shown in the registration books kept by the 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 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 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 Registrar and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (the "Representation Letter") which shall govern
payment of principal of and interest on the Bonds and notices with respect to the Bands. Any
Paying Agent or Registrar subsequently appointed by the City with respect to the Bonds will
5-14
agree to take all action necessary for all representations of the City in the Representation Letter
with respect to the 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 certificates, 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 owners 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
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. 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 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. Ci Compliance with Provisions of Continuing Disclosure Certificate. 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.
8,02, E.xec,~t~on of Continuing Dlcclnc'~r? Certificate. "C'o22t:n'~:ng D:SC1oS'»re
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. When all Bonds and all interest thereon have been discharged
as provided in this Section., all pledges, covenants and other rights granted by this Resolution to the
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 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 14~' day of July 2008
5-15
Offered by
Second by:
RoII Call:
ATTEST:
Dielnll
Williams
Ayes: Peterson, Williams, Nawrocki, Diehm, Kelzenberg
t~
~ ~ ~
Patricia Muscovitz`
`~ City Clerk/Council Secretary
,r
,y-",
~.
Mayor Gary L.
5-16
~_.
,,
STATE OF MINNESO"I`A )
}
COUNTY OF ANOKA ) SS.
CITY OF COLUMBIA HEIGHTS)
I, the undersigned, being the duly qualified and acting City Manager of the City of
Columbia Heights, Minnesota, do hereby certify that I have carefully compared the attached and
foregoing resolution of a regular meeting of the City Council held on Monday, July 14, 2008,
with the original thereof on file in my office and I further certify that the same is a full, true and
complete transcript therefrom insofar as the same relates to the issuance and sale of the City's
$10,000,000 General Obligation Public Safety Center Bonds, Series 20088.
WITNESS My hand as City Manager and the corporate seal of the City this day
of , 2008.
City Manager
City of Columbia Heights, Minnesota
(SEAL)
5-17
EXHIBIT A
PROPOSALS
336245v3 A.iP CL162-41 L1-1
EXHIBIT B
TAX LEVY SCHEDULE
YEAR * TAX LEVY
* Year tax levy collected.
336245v3 AJP CL 162-41 B-1
Tax Levy Calculation For;
City of Columbia Heights, Minnesota
$10,000,000 General Obligation Public Safety Center Bonds, Series 20088
Dated Date: 8/6/2008
Levy Collect Pay Totat Funds P & I Net
Year Year Year P & I Available {1) x 105% Levy
2007 / 2008 ! 2009 214,193.92 214,193.92 0.00 0.00
2008 ! 2009 / 2010 440,627.50 100,000.00 357,658.88 357,658.88
2009 1 2010 f 2011 630,627.50 662,158.88 662,158.88
2010 / 2011 / 2012 632,457.50 664,080.38 664,080.38
2011 / 2012 / 2013 628,857.50 660,300.38 660,300.38
2012 / 2013 / 2014 630,042.50 661,544.63 661,544.63
2013 / 2014 / 2015 625,797.50 657,087.38 657,087.38
2014 / 2015 / 2016 626,337.50 657,654.38 657,654.38
2015 / 2016 / 2017 626,447.50 657,769.88 657,769.88
2016 / 2017 / 2018 626,127.50 657,433.88 657,433.88
2017 / 2018 / 2019 625,377.50 656,646.38 656,646.38
2018 / 2019 / 2020 624,197.50 655,407.38 655,407.38
2019 i 2020 / 2021 627,587.50 658,966.88 658,966.88
2020 / 2021 / 2022 625,332.50 656,599.13 656,599.13
2021 I 2022 / 2023 627,647.50 659,029.88 659,029.88
2022 / 2023 / 2024 624,317.50 655,533.38 655,533.38
2023 / 2024 / 2025 625,397.50 656,667.38 656,667.38
2024 / 2025 / 2026 625,825.00 657,116.25 657,116.25
2025 / 2026 / 2027 630,600.00 662,130.00 662,130.00
2026 / 2027 / 2028 629,505.00 660,980.25 660,980.25
2027 / 2028 / 2029 632,757.50 664,395.38 664,395.38
2028 / 2029 / 2030 634;937.50 666,684.38 666,684.38
2029 ! 2030 / 2031 636,237.50 668,049.38 668,049.38
2030 / 2031 / 2032 636,435.00 668,256.75 668,256.75
2031 / 2032 / 2033 640,742.50 672,779.63 672,779.63
2032 / 2033 / 2034 643,692.50 675,877.13 675,877.13
2033 / 2034 / 2035 645,517.50 677,793.38 677,793.38
2034 / 2035 / 2036 646,217.50 678,528.38 678,528.38
2035 / 2036 / 2037 650,510.00 683,035.50 683,035.50
2036 / 2037 / 2038 653,437.50 686,109.38 686,109.38
Totals 18,367,788.92 314,193.92 18,956,274.75 18,956,274.75
(1) The following funds are available to pay the interest payment due February 1, 2009
and a portion of the interest payment due August 1, 2009:
Capitalized Interest: $314,193.92
EHLERS
& ASSOCIATES INC
STATE OF MINNESOTA )
COUNTY OF ANOKA ) SS.
CITY OF COLUMBIA HEIGHTS)
I, the undersigned, being the duly qualified and acting City Manager of the City of
Columbia Heights, Minnesota, do hereby certify that I have carefully compared the attached and
foregoing resolution of a regular meeting of the City Council held on Monday, July 14, 2008,
with the original thereof on file in my office and I further certify that the same is a full, true and
complete transcript therefrom insofar as the same relates to the issuance and sale of the City's
$10,000,000 General Obligation Public Safety Center Bonds, Series 20088.
WITNESS My hand as City Manager and the corporate seal of the City this 4 ~; ~~' day
of _~ ~.~~ , 2008.
~. ~° ,.~'
City Manager ~ ~~:~,
City of Columbia Heights, Minnesota
(SEAL)
336245v3 AJP CL162-41 S-1
BID TABULATION
$10,000,000 General Obligation Public Safety Center Bands, Series 2008B
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SALE: July 14, 2008
AWARD: STIFEL, NICOLAUS 8~ CO., INC.
RATING: Assured Guaranty Insured (Moody's Investors Service, Inc. "Aaa"}* BBI: 4.56%
UNDERLYING RATING: (Moody's Investors Service, Inc. "A1 ")
NET TRUE
NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST
(February 1} YIELD COST RATE
STIFEL, NICOLAUS & CO., lNC.
Minneapolis, Minnesota
2011 4.300% 2.800%
2012 4.300% 3.000%
2013 4.300% 3.150%
2014 4.300% 3.300%
2015 4.300% 3.400%
2016 4.300% 3.500%
2017 4.300% 3.700%
2018 4.300% 3.750%
2019 4.300% 3.850%
2020 4.300% 3.950%
2021 4.300% 4.000%
2022 4.300% 4.125%
2023 4.300% 4.100%
2024 4.350% 4.150%
2025** 4.350% 4.250%
2026** 4.350% 4.250%
2027*** 4.350% 4.350%
2028*** 4.350% 4.350%
2029**** 4.400% 4.400%
2030**** 4.400% 4.400%
2031 ***** 4.450% 4.450%
2032***** 4.450% 4.450%
2033****** 4.500% 4.500%
2034****** 4.500% 4.500%
2035****** 4.500% 4.500%
2036******* 4.550% 4.550%
2037******* 4.550% 4.550%
2038******* 4.550% 4.550%
*Assured Guaranty Insurance purchased by Stifel, Nicolaus & Co., Inc.
**$685,000 Term Bond due 2026 with mandatory redemption in 2025
***$755,000 Term Bond due 2028 with mandatory redemption in 2027
****$830,000 Term Bond due 2030 with mandatory redemption in 2029
*****$910,000 Term Bond due 2032 with mandatory redemption in 2031
******$1,545,000 Term Bond due 2035 with mandatory redemption in 2033-2034
*******$1,785,000 Term Bond due 2038 with mandatory redemption in 2036-2037
$9,925,904.85 $8,441,884.07 4.4946%
www.ehlers-inc,com
FREERS
LEADERS IN PUBLIC FINANCE
Minnesota
O~ces also in Wisconsin and Illinois
phone 651-697-8500 3060 Centre Pointe Drive
fax 651-697-8555 Roseville, MN 551 1 3-11 22
$10,000,000 General Obligation Public Safety Center Bonds, Series 20088
City of Columbia Heights, Minnesota
Page 2
NET TRUE
NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST
(February 1) YIELD COST RATE
MORGAN KEEGAN & CO., INC.
Memphis, Tennessee
PIPER JAFFRAY & CO.
Leawood, Kansas
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.550%
4.550%
4.550%
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.OD0%
4.000%
4.000%
4.050%
4.150%
4.150%
4.250%
4.250%
4.300%
4.300%
4.450%
4.450%
4.450%
4.750%
4.750%
4.750%
4.750%
5.000%
5.000%
5.000%
$9,925,000.00 $8,490,362.53 4.5198°/a
$9,925,332.80 $8,705,540.50 4.6038%
$10,000,000 General Obligation Public Safety Center Bonds, Series 20086
City of Columbia Heights, Minnesota
NAME OF BIDDER
ROBERT W. BAIRD & CO.
Milwaukee, Wisconsin
MATURITY
(February 1)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
Page 3
NET TRUE
RATE REOFFERING PRICE INTEREST INTEREST
YIELD COST RATE
4.250%
4.250%
4.250%
4.250%
4.250%
4.250%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.5oo°io
4.500%
4.625%
4.625%
4.625%
4.700%
4.700%
4.700%
4.700%
CRONIN & COMPANY, INC.
Minneapolis, Minnesota
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.200%
4.375%
4.375%
4.500%
4.500%
4.500%
4.500%
4.600%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
$9,925,054.05 $$,708,378.37 4.6353%
$9,926,626.80 $8,772,070.78 4.6532%
$10,000,000 General Obligation Public Safety Center Bonds, Series 20086
City of Columbia Heights, Minnesota
Page 4
NET TRUE
NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST
(February 1) YIELD COST RATE
NORTHLAND SECURITIES, INC.
Minneapolis, Minnesota
STERNS, AGES & LEACH, INC.
Birmingham, Alabama
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.500°le
4.500%
4.500%
4.500%
4.500%
4.500%
4.500%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.750%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.375%
4.500%
4.500%
4.625%
4.625%
4.875%
4.875%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
$9,925,000.00 $8,935,686.46 4.7588%
$9,926,958.75 $9,144,585.91 4.8487%
Tax Levy Calculation For:
City of Columbia Heights, Minnesota
,000,000 General Obligation Public Safety Center Bonds, Series 20088
Dated Date: 8/6/2008
Levy Collect Pay Total Funds P 8~ I Net
Year Year Year P & 1 Available (1) x 105% Levy
2007 / 2008 / 2009 214,193.92 214,193.92 0.00 0.00
2008 / 2009 / 2010 440,627.50 100,000.00 357,658.88 357,658.88
2009 / 2010 f 2011 630,627.50 662,158.88 662,158.88
2010 / 2011 / 2012 632,457.50 664,080.38 664,080.38
2011 / 2012 / 2013 628,857.50 660,300.38 660,300.38
2012 / 2013 ! 2014 630,042.50 661,544.63 661,544.63
2013 / 2014 / 2015 625,797.50 657,087.38 657,087.38
2014 / 2015 / 2016 626,337.50 657,654.38 657,654.38
2015 / 2016 / 2017 626,447.50 657,769.88 657,769.88
2016 / 2017 / 2018 626,127.50 657,433.88 657,433.88
2017 / 2018 / 2019 625,377.50 656,646.38 656,646.38
2018 / 2019 / 2020 624,197.50 655,407.38 655,407.38
2019 / 2020 / 2021 627,587.50 658,966.88 658,966.88
2020 / 2021 / 2022 625,332.50 656,599.13 656,599.13
2021 / 2022 / 2023 627,647.50 659,029.88 659,029.88
2022 / 2023 / 2024 624,317.50 655,533.38 655,533.38
2023 / 2024 / 2025 625,397.50 656,667.38 656,667.38
2024 / 2025 / 2026 625,825.00 657,116.25 657,116.25
2025 / 2026 / 2027 630,600.00 662,130.00 662,130.00
2026 / 2027 / 2028 629,505.00 660,980.25 660,980.25
2027 / 2028 / 2029 632,757.50 664,395.38 664,395.38
2028 / 2029 / 2030 634,937.50 666,684.38 666,684.38
2029 / 2030 / 2031 636,237.50 668,049.38 668,049.38
2030 / 2031 / 2032 636,435.00 668,256.75 668,256.75
2031 / 2032 / 2033 640,742.50 672,779.63 672,779.63
2032 / 2033 / 2034 643,692.50 675,877.13 675,877.13
2033 / 2034 / 2035 645,517.50 677,793.38 677,793.38
2034 / 2035 / 2036 646,217.50 678,528.38 678,528.38
2035 / 2036 / 2037 650,510.00 683,035.50 683,035.50
2036 / 2037 / 2038 653,437.50 686,109.38 686,109.38
Totals 18,367,788.92 314,193.92 18,956,274.75 18,956,274.75
(1) The following funds are available to pay the interest payment due February 1, 2009
and a portion of the interest payment due August 1, 2009:
Capitalized Interest: $314,193.92
FREERS
& ASSOCIATES INC
STATE OF MINNESOTA COUNTY AUDITOR'S
CERTIFICATE AS TO
COUNTY OF ANOKA TAX LEVY AND
REGISTRATION
i, tl'ie undersigned ~r,,oiu'2ty Auditor of Aj`Ioka Colintj%, Miiijijesota, herevy certijy that a
certified copy of a resolution adopted by the governing body of the City of Columbia Heights,
Minnesota, on July 14, 2008, levying taxes for the payment of $10,000,000 General Obligation
Public Safety Center Bonds, Series 2008B, of said municipality dated August 6, 2008, 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 __, 2008.
/ice ' ~ .~,
County Auditor
Anoka County, Minnesota
(SEAL)
By
Deputy
336245v3 AJP CL162-41 S-2
STATE OF MINN7ESOTA COUNTY AUDITOR'S
CERTIFICATE AS TO
COUNTY OF ANOKA TAX LEVY AND
REGISTRATION
I, the l,Lrldelslg~tled Courlty Audllol of Alloka Cuuiily, 1Vllllrlesota, Hereby l+clilly that a
certified copy of a resolution adapted by the governing body of the City of Columbia Heights,
Minnesota, on 3uly 14, 2008, levying taxes for the payment of $10,000,000 General Obligation
Public Safety Center Bonds, Series 2008B, of said municipality dated August 6, 2008, has been
filed in my office and said bonds have been entered on the register of obligations in my office
and that such tax has been levied as required by law.
WITNESS My hand and official seal this day of , 2008.
.~r 1L .
County Auditor
Anoka County, Minnesota
(SEAL}
By .~
T3eputy°
336245v3 AJP CL162-41 S-2
PROPOSAL FORM
The City Council .Tut 14 2008
y ,
City of Columbia TTeighis, ivlinnesot:-
R1~: SI II,000,OQIY" (:cncrnl pbligatinn Public Sstfety Center T)onds, Series 200RTi
DATED: August G, 2003
1~'or a.l I or none of the above .Bonds, in ;tccordancc with the Tcrrns oF.Proposal and terms of the Global Book-1/ntry System as stated in. this
Prclitninary Official St.aternent, we r.~ill pay you ~9,92~,904.$S (not less than $9,925,000) plus accructl interest to date of delivery fUr Ililly
reUicterccl Bonds bcarinb interest rafcs Ind maturing in the stated years as follows:
4.30 "/„due 201 I 4.30 '% dttc 2021 4.45 ~/, dt.te 2031 Term 4
4,30 °/, due 2012 4.30 %, due 2022 4.45 %, due 2032 Term 4
4.30 "/o due 201.3 4,30 % dttc 2023 4.50 % due 2033 Term 5
4.30 % due 2014 4.35 %, due 2024 4.SQ % due 2034 Term 5
4.3n "/o due 20 i 5 4.35 "/° Ciuc 2025 Tcrm I 4.50 "/o due 2035 Tcrm S
4.30 %, due 201. (i 4.35 %, due 2026 Tenn 1 4.55 %, due 2036 Term 6
4.30 "/" due 2017 4.35 y° clue 2027 Term 2 4.55 '/° due 2037 Term 6
4.30 % clue 2018 4.35 "/o due 202S Tenn 2 4.55 % due 2038 Tcrm G
4.30 % clue 20l 9 4.40 '% Chae 2029 Tent 3
4.;3t1 "fo clue 2020 a do "/° d.uc 2030 Tcrm 3
* The City reserves the ri€hl: to increase or decrease the principal amount of the i3onds nn t:he Clay of sale, in increments of `55,000 each.
Tnercascs or decreases may he made in any maturity. li'any principal amounts are adjusted, the purchase Price Proposed will be adjusted to
maintain. the same gross spread. per $1,000.
We enclose our good faith deposit in the amount of $200,000, to be held by you pending delivery and payment. alternatively, we have
provided ~ Gnttncial surety bond or htrvc wired our good .faith. deposit to the Bank of America. N. A., Ncw York, New York. ABA No. 026-
009-593 For furl:hcr credit t:o 1?hlers ck Associates, f n,c. Bond Issue lscrow Account No. 850-7$8- L. Il~our proposal. is not accepted, said deposit
shall be promptly renu ned to us. tf the good. Faith deposit is wired to such eecrow accpunt, we agree to the conrlitipn,a and duties of Fhlcrs
c~c Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Preliminary Official Statement dated July 3, 2008. This
propp;al is for prompt acceptance and is conctitionttl upon deposit oFsaid BonCls to The Depository Trust Company, Ncw York, Ncw York,
in accordance with the Terms nF 1'r•olzasal. (~clivory is anticipated to he nn pr about Ausust: (i, 201)$.
This proposal is subject to the City's covenant and. agreement to enter into a written undertaking to Provide continuing disclosure undcrRulc
15c2- l2 promulgated by the Sccuritics and );xchangc Commission under the Securities Exchange ,1st of 1934 as described. in the Prclim.inary
official titatcment far this Issue.
We have received and reviewed the Prclim.inary Official Statement and have submitted oa.r requests for additional inforntation or corrections
to the Final Official Statement. Ati Cyndicate iVl,aneger, we abrce CO provide Lhc City with the rco i. hthc n s within 24 hours
oFehc proposal acceptance.
AcCOtm.I..A!lanaF_c.r; STI~E.L, NICOLAUS & CO., :CNC. By: /G'"
/7Q,g ~ ~/'c C/~ v-
Accounf. Members; (Yore
Award ~ti~i1) he on a true interest cost basic, According t:o our computtttions (the corrc;ct Computation bci.ng Controlling in the award), the
total dollar interest cost(including any di.ccpunt or less flay premium) cornputcd I:rom. Aubusl6, 2008 oftl.~c above proposal is $8,441,$84.07
Ind the true iuterest cost (TIC) is 4C'%.
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The forC; oing off is hrrrcby tcccpted. by and on behalf ~f the City Council of`the City of Columbi. Heights, .Mit~).~esota, on July
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Title: '~ ~~f;1SB Ti.t]e; ~'~ -
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