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HomeMy WebLinkAbout2015-11Extract of Minutes of Meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Columbia Heights, Minnesota, was duly held in the City Hall in said City on Monday, February 9, 2015, commencing at 7:00 P.M. The following members were present: Mayor Peterson and Councilmembers Williams, Nawrocki, Schmitt and Murzyn Jr. and the following were absent: None The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's General Obligation Library Bonds, Series 2015A, to be issued in the original aggregate principal amount of $6,875,000. The City Manager presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in EXHIBIT A attached. After due consideration of the proposals, Member Williams then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: 456211 v2 NMI CLI62 -50 A RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION LIBRARY BONDS, SERIES 2015A, IN THE ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $6,875,000; 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 (the "City") as follows: Section 1. Sale of Bonds. 1.01. Authorization. It is hereby determined that: (a) At a duly called special election held on November 4, 2014, the voters of the City approved the issuance and sale by the City of general obligation bonds of the City in the maximum aggregate principal amount of $7,000,000, pursuant to Minnesota Statutes, Chapter 475, as amended (the "Act "), to provide financing for the construction of a new library in the City (the "Project"). (b) It is necessary and expedient to the sound financial management of the affairs of the City to issue its General Obligation Library Bonds, Series 2015A (the "Bonds "), in the original aggregate principal amount of $6,875,000, to provide financing for the Project. (c) The City is authorized by Section 475.60, subdivision 2(9) to negotiate the sale of the Bonds, it being determined that the City has retained an independent financial advisor in connection with the sale of the Bonds. The actions of City staff and its municipal advisor in negotiating the sale of the Bonds are ratified and confirmed in all respects. 1.02. Award to the Purchaser and Interest Rates. The proposal of Piper Jaffray & Co., Minneapolis, Minnesota (the "Purchaser "), to purchase the Bonds is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $7,138,874.68 (par amount of $6,875,000.00, plus original issue premium of $293,650.80, less underwriter's discount of $29,776.12), plus accrued interest to date of delivery, if any, for Bonds bearing interest as follows: 456211Q W CL162 -50 Year Interest Rate Year Interest Rate 2017 3.000% 2025 2.500% 2018 3.000 2026 2.500 2019 3.000 2027 2.500 2020 3.000 2028 3.000 2021 3.000 2029 3.000 2022 3.000 2030 3.000 2023 3.000 2035* 3.000 2024 3.000 2036 3.250 * Term Bond True interest cost: 2.5819296% 1.03. Purchase Contract. The sum of $332,624.68, being the amount proposed by the Purchaser in excess of $6,806,250.00, shall be credited to the Debt Service Fund hereinafter created or deposited in the Construction Fund hereinafter created, as determined by the Finance Director in consultation with the City's municipal advisor. The Finance Director 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. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to the Act, in the total principal amount of $6,875,000, originally dated March 4, 2015, 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 2017 $ 260,000 2025 $ 325,000 2018 265,000 2026 335,000 2019 275,000 2027 345,000 2020 280,000 2028 350,000 2021 290,000 2029 360,000 2022 300,000 2030 375,000 2023 310,000 2035* 2,045,000 2024 315,000 2036 445,000 * Term Bond 1.05. Optional Redemption. The City may elect on February 1, 2024, and on any day thereafter to prepay Bonds due on or after February 1, 2025. 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. 456211 Q MNl CL162 -50 1.06. Mandatory Redemption; Term Bond. The Bonds maturing on February 1, 2035 shall hereinafter be referred to collectively as the "Term Bond." The principal amount of the Term Bond subject to mandatory sinking fiend redemption on any date may be reduced through earlier optional redemptions, with any partial redemptions of the Term Bond credited against future mandatory sinking fund redemptions of such Term Bond in such order as the City shall determine. The Term Bond is subject to mandatory sinking fund redemption and shall be redeemed in part at par plus accrued interest on February 1 of the following years and in the principal amounts as follows: Sinking Fund Installment Date February 1, 2035 Term Bond Principal Amount 2031 $385,000 2032 395,000 2033 410,000 2034 420,000 2035* 435,000 * Maturity 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, lnterest 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 is payable on February 1 and August 1 of each year, commencing August 1, 2015, 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 such day is a business day. 2.03. Re ig stration. 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 ister. 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. 456211 v2 MNI CLI62 -50 4 (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) hnproper 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. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for any 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 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 terns 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) 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 after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 456211 v2 MNl CL162 -50 2.04. Appointment of Initial Re 's tray. The City appoints U.S. Bank National Association, Saint 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 Finance Director 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 those 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 a 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 EXHIBIT B attached hereto 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. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the form set forth in EXHIBIT B. 3.02. Approving Legal Opinion. The City Manager is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security, Pledges and Covenants. 4.01. Debt Service Fund. The Bonds will be payable from the General Obligation Library Bonds, Series 2015A Debt Service Fund (the "Debt Service Fund ") hereby created. The Debt Service Fund shall be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Finance Director shall timely deposit in the Debt Service Fund the ad valorem taxes hereinafter levied (the "Taxes "), which are pledged to the Debt Service Fund. There is also appropriated to the Debt Service Fund (i) any amount over 456211Q MNI CL162 -50 the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof; and (ii) capitalized interest financed from Bond proceeds, if any. 4.02. Construction Fund. The proceeds of the Bonds, less the appropriations made in Section 4.01 hereof and costs of issuance paid pursuant to Section 5.04, together with any other funds appropriated for the Project, will be deposited in a separate fund of the City (the "Construction Fund "). Amounts in the Construction Fund will be disbursed solely to pay costs of the Project and costs of issuance of the Bonds to the extent not paid pursuant to Section 5.04. Any balance remaining in the Construction Fund after completion of the Project may be used for any other public use authorized by law or credited to the Debt Service Fund or other City debt service funds, all in accordance with Section 475.65 of the Act. 4.03. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient balance is available therein. 4.04. 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, 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 attached hereto as EXHIBIT C. 4.05. Certification to Manager of Property Records and Taxation as to Debt Service Fund Amount. It is hereby determined that the estimated collection of the foregoing Taxes will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levy herein provided is irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax levies the Finance Director may certify to the Manager of Property Records and Taxation of Anoka County, Minnesota (the "Manager of Property Records and Taxation ") the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the Manager of Property Records and Taxation will thereupon reduce the levy collectible during such year by the amount so certified. 4.06. Registration of Resolution. The City Manager is authorized and directed to file a certified copy of this resolution with the Manager of Property Records and Taxation and to obtain the certificate required by Section 475.63 of the Act. Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. 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 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. 456211v2 MNI CL162 -50 7 5.02. Certification as to Official Statement. The Mayor, City Manager, and Finance Director 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. 5.03. Other Certificates. The Mayor, City Manager, and Finance Director are hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, City Manager, and Finance Director shall also execute and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a certificate as to payment for and delivery of the Bonds. 5.04. Pavment of Costs of issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to KleinBank, Chaska, Minnesota on the closing date for further distribution as directed by the City's municipal advisor, Ehlers & Associates, Inc. Section 6. Tax Covenant. 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 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. Rebate. 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. 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 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; 456211Q MNI CL162 -50 (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 2015 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2015 have been designated for purposes of Section 265(b)(3) of the Code. 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-Entry 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 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the 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 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 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, premium, if any, or 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, premium 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, 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 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 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 will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or 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 Registrar and Paying Agent, respectively, to be complied with at all times. 4562 11 Q MNI CL162 -50 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. PaMents 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. Execution of Continuing Disclosure Certificate. "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. 8.02. City 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. 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. (The remainder of this page is intentionally left blank.) 456211v2 MNI CLI62 -50 10 The motion for the adoption of the foregoing resolution was duly seconded by Member Murzyn, Jr., and upon vote being taken thereon, the following voted in favor thereof: Mayor Peterson and Councilmembers Williams, Nawrocki, Schmitt and Murzyn Jr. and the following voted against the same: None whereupon said resolution was declared duly passed and arinnterl. Adopted: February 9, 2015 ATTEST: City Clerk 456211Q MN1 CL162 -50 11 456211 Q MNI CLI 62 -50 A-1 BID TABULATION O.EH-LXIR-S LEADERS IN POBUC FINANCE $7,000,000" General Obligation Library Bonds, Series 2015A City of Columbia Helghts, Minnesota SALE: February 9, 2015 AWARD: PIPER JAFFRAY & CO. Rating: Standard & Poor "s Credit Markets "AA" BBI: 3.49% NET TRUE .MATt'RrIY REOFFERING INTEREST IN-FEREST NAME OF BIDDER (FebmAn 11 RATE YIELD PRICE COST RATE PIPER JAFFRAY & CO. $7.270.388.75 $2.274.039.17 2.5786% Minneapolis. Mawesota 2017 3.000% 0.600% 2018 3.0000,10. 0.8500/0 2019 3.00006 1.000% 2020 3.00(ra 1200% 2021 3.000016 1350% 2022 3.0000.4 1500% 2023 1000%6 1.650% 2024 3.0000io 1.8000,0 2025 2.500010 1.900% 2026 2.5000.'0 2.0500/0 2027 2.5000/0 1150%6 2028 10000/0 120(r/6 2029 3.000%6 2.30000 2030 3.0000/0 2.450% 20311 3,0000/o 3.000010 20321 3.00001# 3.000010 20331 3.000919 3.00000 20341 3.000% 3.000010 2035' 3.0004/0 3.00019 2036 3.2500/0 3.100 °'0 Subsequent to bid opening the issue size was decreased to $6.875.000. Adjusted Price - $7.138.874.68 Adjusted Net Interest Cost - S2.251,765.22 Adjusted TIC - 2.5819°'0 152.045.000 Tenn Bond due 2035 with mandatory redemption in 2031 -2034. 456211v2 MNI CL162 -50 A -2 NET TRUE MATURITY REOFFERING INTEREST INTEREST NAME OF BIDDER (February 1) RATE YIELD PRICE COST RATE RAYMOND JAMES & ASSOCIATES. INC. St. Petersburg, Florida NORTHLAND SECURITIES. INC. Minneapolis. Mimmota 2017 3.000°.0 2018 3.000% 2019 3.000% 2020 3.000% 2021 3.000010 2022 2.0W% 2023 2.000".0 2024 2.000"/0 2025 2.000",0 2026 2.2500/0 2027 2.300% 2028 21500% 2029 2.750 %" 2030 1750"/" 2031 3.0w% 2032 3.0000/0 2033 3.00001" 2034 3.000010 2035 3.00001" 2036 3.250°0 2017 2.000 " /0 2018 2.0000./0 2019 2.000% 2020 2.0w% 2021 2.000% 2022 2.0000/c 2023 2.000% 2024 2.000% 2025 2.000% 2026 2.100% 2027 2.500% 2028 2.500% 2029 3.000% 2030 3.000"/0 2031 3.000018 2032 3.000010 2033 3.000% 2034 3.000% 2035 3.050% 2036 3.1000/0 Bid Tabulation City of Cohnnbia Heights. Minnesota $7.000.000* General Obligation Library Bonds. Series 2015A 456211 Q MNI CL162 -50 A -3 S7.088.50515 $2.299.411.67 2.6414% $7.038,300.60 52.301.268.03 2.6453% February 9. 2015 Page 2 NET TRUE MAT MITY REOFFERWG INTEREST WIEREST NAIL OF BIDDER (February 1) RATE YIELD PRICE COST RATE FTN FINANCIAL CAPITAL MARKETS Memphis. Tennessee SUNTRUST ROBINSON HUMPIiREY Atlanta. Georgia 2017 2.0000.0 2018 2.000% 2019 2.000% 2020 2.000% 2021 2.000% 2022 2.000% 2023 2.000% 2024 2.000% 2025 2.250°0 2026 2.500% 2027 1500% 2028 2.7500o 2029 2.750% 2030 3.000% 2031 3.000% 2032 3.000% 2033 3.0000.46 2034 3.000% 2035 3.0000.10 2036 3.250% 2017 2.500% 2018 2.5000,0 2019 2.5000/0 2020 2.5000/0 2021 2.500% 2022 2.5000/0 2023 2.500% 2024 2.5001/10 2025 2.500% 2026 2.5000to 2027 2.500% 2028 2.500% 2029 2.5000/0 2030 3.000019 2031 3.0000:0 2032 3.000% 2033 3.0000.6 2034 3.000% 2035 3.0000./0 2036 3.0500/0 Bid Tabulation City of Columbia Heights. h innesota S7.000.0W General Obligation Library Bonds. Series 2015A 456211Q MNl CL162 -50 A4 $7.074.675.15 $2,06.38537 2.6454% S7.099,748.90 $2.312.066.48 2.65570,% February 9. 2015 Page 3 NET TRUE MATURITY REOFFERING INTEREST INTEREST NA_ \SE OF BIDDER (Februan,1) RATE YIELD PRICE COST RATE WELLS FARGO BAND. NATIONAL ASSOCIATION Charlotte. North Carolina BAIRD Milwaukee. Wisconsin 2017 3.000% 2018 3.000% 2019 3.000% 2020 3.000% 2021 3.00045 2022 3.000% 2023 3.000% 2024 3.000% 2025 2.000% 2026 2.000% 2027 2.250% 2028 2.500% 2029 2.750% 2030 3,000% 2031 310000x5 2032 3.000% 2033 3.000010 2034 3,000% 2035 3.0000.0 2036 3.500010 2017 3.000% 2018 3.000% 2019 3.00045 2020 3.00045 2021 3.00040 2022 3.000% 2023 3.000010 2024 3.0000x0 2025 3.000% 2026 3.000% 2027 3.000% 2028 3.000% 2029 3.000% 2030 3,000% 2031 310000.%0 2032 3.000% 2033 3.000% 2034 3.000% 2035 3.0000.0 2036 3.000% Bid Tabulation City of Columbia Heights. Nfilmesota $7.000.000* General Obligation Library Bonds. Series 2015A 456211 Q MNI CL162 -50 A -5 57.164.407.45 $2.32446338 2.6563% 57.232.628.40 $2.342371.60 2.6703% Febnlary 9. 2015 Page 4 NET TR17E NIATL RITY REOMRI G INTEREST INTEREST NAME OF BIDDER (February l) RATE YIELD PRICE COST RATE STIFEL NICOLAUS MenThis. Tennessee BMO CAPITAL MARKETS GIST INC. Chicago. Illinois 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2.000% 2.000% 2.000% 3.000% 3. 00% 3.000 %0 2.0000,'0 2.000° o 3.0000.° 3.000% 3.000% 3,500% 3.500% 3.500% 3.000% 3.0000.% 3.000010 3.000% 3.000% 4.000% 2.0000/0 2.0w% 2.0000.0 2.000% 2.000% 2.250% 2.500% 2.500% 2.500010 3.000% 3.000% 3.000% 3.0000.'0 3.2500/0 3.000% 3.000% 3.000% 3.0000.9 3.0000/o 3.5000,'0 Bid Tabulation City of Columbia Heights, Minnesota $7.000,000* General Obligation Library Bonds. Series 2015A 456211Q MNI CLI62 -50 A_6 $7.283.468.60 $2385.057.86 2.6895% S7.148.318,20 $2.372920.76 2.707+2% February 9. 2015 Page 5 No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION LIBRARY BOND SERIES 2015A Date of Rate Maturity Original Issue CUSIP February 1, 20_ March 4, 2015 Registered Owner: Cede & Co. The City of Columbia Heights, Minnesota, a duly organized and existing municipal corporation 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 sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2015, 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, Saint 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, 2024, and on any day thereafter to prepay Bonds due on or after February 1, 2025. 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 Bonds maturing on February 1, 2035 shall hereinafter be referred to collectively as the "Term Bond." The principal amount of the Term Bond subject to mandatory sinking fund redemption on any date may be reduced through earlier optional redemptions, with any partial redemptions of the Term Bond credited against future mandatory sinking fund redemptions of such Term Bond in such order as the City shall determine. The Term Bond is subject to mandatory sinking fund redemption and shall be redeemed in part at par plus accrued interest on February 1 of the following years and in the principal amounts as follows: 456211Q MNI CLI62 -50 B_1 Sinking Fund Installment Date February 1, 2035 Term Bond 2031 2032 2033 2034 2035* * Maturity Principal Amount $385,000 395,000 410,000 420,000 435,000 This Bond is one of an issue in the aggregate principal amount of $6,875,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on February 9, 2015 (the "Resolution "), for the purpose of providing money to aid in financing the cost of the construction of a new library in the City, 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, Chapter 475, as amended, and authority granted by the voters of the City at a duly called special election held on November 4, 2014. The principal hereof and interest hereon are payable from ad valorem taxes, 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 taxes, which additional 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. 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. 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 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, 456211v2 MNJ CL162 -50 B -2 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: March 4, 2015 CITY OF COLUMBIA HEIGHTS, MINNESOTA (Facsimile) (Facsimile) Mayor City Manager CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION Authorized Representative ABBREVIATIONS 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 in common TEN ENT -- as tenants by entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common WE —1A a T ve ZFEWN Custodian (Cust) (Minor) under Uniform Gifts or Transfers to Minors Act, State of _ Additional abbreviations may also be used though not in the above list. 456211Q MN) CLI62 -50 B -3 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 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: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities 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, STEMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1 934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee 456211 v2 MNI CL162 -50 B_4 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 Cede & Co. Federal ID #13- 2555119 456211Q MNI CL162 -50 B -5 Signature of Officer of Re isg_ tray TAX LEVY SCHEDULE YEAR * TAX LEVY 2016 $485,454.38 2017 482,514.38 2018 484,666.88 2019 481,254.38 2020 482,934.38 2021 484,299.38 2022 485,349.38 2023 480,834.38 2024 481,411.88 2025 483,380.63 2026 485,086.88 2027 481,280.63 2028 480,755.63 2029 485,165.63 2030 483,853.13 2031 482,225.63 2032 485,533.13 2033 483,118.13 2034 485,638.13 2035 482,435.63 * Year tax leiy collected. 456211 Q MNI CLI62 -50 C-1 STATE OF MINNESOTA ) } COUNTY OF ANOKA ) SS. CITY OF COLUMBIA HEIGHTS ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Columbia Heights, Anoka County, Minnesota (the "City "), 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 February 9, 2015, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of the City's General Obligation Library Bonds, Series 2015A, in the original aggregate principal amount of $6,875,000. �j WITNESS My hand officially as such City Clerk and the corporate seal of the City this) day of 2015. 0&': City Clerk City of Columbia Heights, Minnesota (SEAL) 456211 v2 MNI CL162 -50 STATE OF MINNESOTA CERTIFICATE OF MANAGER OF PROPERTY RECORDS AND TAXATION COUNTY OF ANOKA AS TO TAX LEVY AND REGISTRATION I, the undersigned Manager of Property Records and 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 (the "City "), on February 9, 2015, levying taxes for the payment of the City's General Obligation Library Bonds, Series 2015A, in the original aggregate principal amount of $6,875,000, dated March 4, 2015, 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. 01 WITNESS My hand and official seal this J� day of Y� , 2015. Manager of Property Records and Taxation Anoka County, Minnesota (SEAL) gutajN- Deputy