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83-6756Rti U EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF RICHFIELD, HENNEPIN COUNTY, MINNESOTA Pursuant to due call and notice thereof, an adjourned special meeting of the City Council of the City of Richfield, Hennepin County, Minnesota, was duly held in the City.. Hall in said City on Wednesday, the 20th day of April, 1983, at 7:30 o'clock P.M., C.S.T. The following members of the Council were present: Hamilton, Kirsch, Bunce, Ludeman, Hassenstab and the following were absent: Priebe (D ?^~_~. The Mayor announced that the next order of business was consider- ation of bids for the purchase of General Obligation Refunding Bonds of~ 1983 of the City, in accordance with Resolution No. 6744 adopted March 28, 1983. The Clerk presented affidavits showing publication of a notice of sale in the official newspaper of the City, in the Minneapolis Star-Tribune (a newspaper of general circulation in the City) and i.n Commercial West, and Finance and Commerce, financial papers published in Minneapolis, Minnesota, which affidavits were examined and found satisfactory and ordered placed on file. The Clerk then presented the bids submitted prior to 11:00 A.M. as specified in the Official Notice of Sale, and which had been opened and tabulated by the Clerk thereafter in the presence and with the i assistance of re res to III p en tives of Evensen-Dodge, Inc., the fiscal advisers of the City. The bids were examined and found to be as~ follows: ~I ~I 2 ~~~ ~ ~~ ~~~~~ ~l ~ ~ ~• -~ Public Finance and Management RESULTS OF SALE SALE DATE: Wednesday, April 20, 54,445,000 G.O. Refunding Redevelopmeni: Bonds 5.505,000 G.O. Refunding Improvement Bonds City of Richfield, Minnesota 1983 Moody's - AA BBI - 9.04 BIDDERS ADDRESS YEAR RATE YIELD qS gID MERRILL LYNCH I~HITE WELD 1985 5.75 PAR PRICE CAPITAL MARKETS GROUP New York 1986 6.OOb PAR 54 $'T~~00.00 Cronin & Marcotte, Inc. Minneapolis 1987 6.30a PAR , . 1988 6.70b PAR NIC 1989 6.90p PAR 54,597,904.38 1990 7.10a PAR AS ADJt1STED 1991 7.25a PAR. NIR TOTAL PAR = 55,005,000.00 1992 1993 7.5Oa 7.754 PAR PAR 8.I$$974b TOTAL PRICE _ $4,927,751.21 1994 8,00 PAR NIC = 54,669,049.43 1995 8.1Ob PAR NIR = $.1929 1996 8.20q PAR 1997 8.25q PAR 1998 8.30a PAR 1999 8.40b PAR THE NORTHERN TRUST COMPANY Chicago 1985 PRICE GOLDMAN, SACHS & CO. New York 1986 54 00 00 L.F. ROTHSCHILD UNTERBERG 70WBIN New York 1987 , . Clayton Brown & Associates, Inc. Chicago 1988 NIC Robert S.C. Peterson, Inc. Minneapolis 1989 54,6415.63 1990 1991 NIR 1992 8.2U~914 a 1993 1994 " 1995 1996 1997 1998 - 1999 i~)Ot) ,`tic; r.«~,t E'I,ir.~ Building, ,titinneaE~ui~s, ,`1inne<ota »-;U-' (;12.3.38-337, '~.,..,.;.°.,., 800328-82t)U ' ~! i BIDDERS ADDRESS HARRIS TRUST AND SAVINGS BANK Chicago CONTINENTAL ILLINOIS NATIONAL BANK & TRUST COMPANY OF CHICAGO Chicago FIRST NATIONAL BANK OF CHICAGO Chicago PRUDENTIAL-BACHE SECURITIES INC. Chicago KIDDER, PEASODY & CO., INC. N~w York Mercantile Trust Company, N.A. St. Louis Shearson/American Express, Inc. New York LaSalle national Bank Chicago First Wisconsin National Bank of Milwaukee Milwaukee Bear, Stearns & Co. New York Centerre Bank, N.A. St. Louis Hutchinson, Shockey, Erley & Co. Chicago Marine National Exchange Bank Milwaukee William Blair & Company Columbus Bacon, Whipple & Co., Inc. Chicago Robert W. Baird & Co., Inc. Minneapolis Blunt, E11 i s & Loewi , Inc. Chicago Van Kampen Merritt, Inc. Chicago YEAR RATE YIELD 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 PRICE S 4 , $7~ ,'-91.2 NIC 54,696.25 NIR 8 .~5 Q BANCNORTHWEST Minneapolis 1985 PRICE RAIN BOSWORTH, ING. Minneapolis 1986 54,$f3;'"33.0' Allison-Williams Company Minneapolis 1987 American National Bank-St. Paul St. Paul 1988 NIC Paine Webber Jackson & Curtis New York 1989 54,6L~,526.95 First Bank Minneapolis Minneapolis 1990 The First National Bank-St. Paul St. Paul 1991 NIR E. F. Hutton & Co., Inc. New York 1992 g,~5~ Juran ~ Moody, Inc. St. Paul 1993 John Nuveen & Co., Inc. Chicago 1994 ' Piper Jaffray & Hopwood, Inc. Minneapolis 1995 Dougherty Dawkins Strand & 1996 Yost, Inc. Minneapolis 1997 F & M Marquette National Bank Minneapolis 1998 Moore, Juran & Co., Inc.. Minneapolis 1999 M. H. Novick & Co., Inc. Minneapolis Dean Witter Reynolds, Inc. New York After consideration of said bids, Councilmember Hassenstab intro- duced the following written resolution, the reading of which had been dispensed with by unanimous consent, and moved its adoption: RESOLUTION N0. 6756 A RESOLUTION AWARDING THE SALE OF $5,005,000 GENERAL OBLIGATION REFUNDING BONDS OF 1983; CONSISTING OF $4,50D,000 GENERAL OBLIGATION. REDEVELOPMENT REFUNDING BONDS OF 1983 AND $5©5,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS OF 1983, PROVIDING FOR -THE FORM AND SPECIFICATIONS THEREOF; PROVIDING FOR THEIR PAYMENT: PROVIDING FOR THE ESCROWING AND INVESTMENT OF THE PROCEEDS THEREOF; AND PROVIDING FOR THE REDEMPTION OF BONDS REFUNDED THEREBY. BE IT RESOLVED By the City Council of the City of Richfield, Minnesota (City), as follows: Section 1. Sale of Refunding Bonds. 1.01. Upon review and analysis of the bids received by the City for its Refunding Bonds of 1983 and the financial and actuarial requirements of the proposed escrow funds for said bonds, it is hereby determined that it is necessary for the City to exercise the right reserved in the Official Notice of Sale of the bonds relating to the maturities in 1998 and 1999 to modify said maturities, and such matur- ities are hereby modified as follows: Redevelopment Refunding Bonds Year Amount in Notice Modified Amount 1998 $775,000 $800,000 1999 805,000 835,000 Such increase does not exceed 10°~ of the principal amount of the bonds to be refunded. The minimum purchase price which will be accepted in order to comply with Minnesota Statutes, Section 475.54, Subdivision 1 is hereby established as $4,902,699. 1.02. The bid of Merrill Lynch White Weid Capital Markets Group and others (Purchaser) to purchase $5,005,000 General Obligation Refunding Bonds of 1983 consisting of $4,500,.000 General Obligation 3 i _ Redevelopment Refunding Bonnds of 1983 (Redevelopment Refunding Bonds) and $5fl5,000 General Obligation Improvement Refunding Bonds of 19$3 (Improvement Refunding Bonds) (collectively, Refunding Bonds), bearing interest as follows: Year of Interest Year of Interest Maturity Rate Maturity Rate 1985 5.75% 1993 7.75% 1986 6.00 1994 8.00 1987 6.30 1995 8.10 1988 6.70 1996 8.20 1989 6.'90 1997 8.25 1990 7.,10 1998 8.30 1991 7.;25 1999 8.40 1992 7.50 is hereby accepted, said b~.d being to purchase the Refunding Bonds at a price of $4,927,751.21. 1.03. The Mayor and the City Manager are directed to execute a contract with the Purchaser on behalf of the City. The Finance Director is instructed to return the good faith checks of the unsuc- cessful bidders forthwith. Of the purchase price, the sum of $25,052.21 representing additional interest shall be deposited in accordance with the terms of this resolution. Section 2. Redevelopment Refunding Bonds. 2.01. The City shall forthwith issue the Redevelopment Refunding Bonds pursuant to Minnesota Statutes, Chapter 475 (Act), in the prin- cipal amount of $4,500,000. The Redevelopment Refunding Bonds shall be 900 in number and numbered 1 to 900, both inclusive, in the denomi- nation of $5,000 each, all dated May 1, 1983, bearing interest as above provided, payable August 1, 1983, and semiannually thereafter on February 1 and August 1 in !each year, and which shall mature serially on February 1 in the years and amounts as follows: Year Amount Year Amount 1986 $ 40,000 1993 $305,000 1987 50,000 1994 325,000 198.8 125,000 1995 370,000 1989 150,000 1996 395,000 1990 175,000 1997 435,000 1991 240,000. 1998 800,000 1992 255,000' 1999 835,000 2.02. Redevelopment Refunding Bonds maturing after February 1, 1993 are subject to redemption at the option of the City on said date and any interest payment date thereafter in inverse order of serial numbers., at a price of par and accrued interest to date of redemption. 4 2..03. Both principal and interest on the Refunding Refunding Bonds shall be payab e at the First Trust Company of Saint Paul, in the City of St. Paul, Minnesota, (Paying Agent) and the City shall pay the reasonable charges of the Paying Agent for its services. 2.04. The Redevelopment Refunding Bonds and the interest coupons thereto attached shall be in substantially the following form: No. $5,000 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF RICHFIELD GENERAL OBLIGATION REDEVELOPMENT REFUNDING BOND OF 1983 KNOW ALL MEN BY THESE PRESENTS that the City of Richfield, Hennepin County, Minnesota, a municipal corporation in the State of Minnesota, acknowledges itself to be indebted and, for value received, hereby promises to pay to bearer the sum of FIVE THOUSAND DOLLARS on the lst day of February, 19 and to pay interest thereon from the date hereof .until the principal sum is paid at the rate of percent ( %) per annum, all interest to maturity payable August I, 1983, and semiannually thereafter on the Ist day of February and the 1st day of August in each year in accordance with and upon presentation and surrender of the attached interest coupons as they severally become due. Both principal and interest on this bond are payable at First Trust Company of Saint Paul, in the City of St. Paul, Minnesota, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. All bonds of this issue maturing after February 1, 1993, are subject to prior redemption at the option of the City on said date and any interest payment date thereafter in inverse order of serial numbers at a price of par and accrued interest. Interest on all bonds called for redemption shall cease on the redemption date unless the bond is presented for payment. and payment is refused_ This bond is one of an issue of bonds in the total principal amount of $4,500,000, all of like date and tenor except as to interest rate, maturity, serial number and redemption privilege, all issued by the City for the purpose of providing money to refund, pursuant to Minnesota Statutes, Section 475.67, in advance of maturity, the out- standing principal amount of certain outstanding General Obligation Redevelopment Bonds of the City, which have been issued by the City to defray the expenses incurred in financing the public redevelopment costs of Redevelopment Projects in the City, pursuant to and in full Conformity with the Charter of the City and the Constitution and Laws of the State of Minnesota,. including Minnesota Statutes, Sections 5 4b2.11 to 462.711 and 27'~~3.71 to 273.78, inclusive, and is payable primarily from tax increme'~nts from increases in the assessed value of real property in a Redevelopment Project Area in the City, but con- stitutes a general obligation of the City, and to provide moneys for the prompt and full payment of said principal and interest as the same become due, the full faith and credit of the City is hereby irrevoc- ably pledged., and the City Council will levy additional ad valorem taxes, if required for such purpose, which taxes may be levied on all of the taxable property in the City without limitation as to rate or amount. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Charter of the City and Constitution and Laws of the State of Minnesota to be done, to happen and to be performed precedent to and in the issuance of this bond have been done, have happened and have been performed in regular and due form, time and manner as required by law; !.and that this bond, together with all other indebtedness of the City outstanding on the date hereof and the date of its actual issuance and delivery does not exceed any Charter, constitutional or statutory. limitation therean. IN WITNESS WHEREOF, ,the City of Richfield, Hennepin County Minnesota, by its City Council, has caused this bond to be executed by the facsimile signatures of the Mayor and the City= Manager and by the manual signature of one of said officers, and sealed with the printed facsimile of the corporate ,.seal of the City and the interest coupons hereto attached to be executed and authenticated by the facsimile signatures of said officers, all as of May 1, 1983. (Facsimile si nature) (Facsimile signature) City Manager Mayor (FACSIMILE SEAL) No. (Form of Coupon) On the 1st day of August (February) I9_, (unless the bond to which this coupon appertains has been previously called for redemp- tion) the City of Richfield, Hennepin County, Minnesota, will pay to bearer the amount shown hereon in lawful money of the United States of America, for interest then due on its General Obligation Redevelopment 6 Refunding Bond of 1983, dated May 1, I9$3, No. (facsimile signature) Mayor (facsimile signature) City Manager 2.05. The Redevelopment Refunding Bonds and any additional bonds similarly authorized and issued shall be payable from the General Obligation Redevelopment Bonds Fund account in the Debt Service Fund of the City created by Resolution No. 5751 (the "Fund"). The proceeds of general taxes, if any, levied for the Redevelopment Refunding Bonds and other bonds payable from the Fund, and tax increments {the "Tax Increments") from the Project Area in which the Public Redevelopment Costs. financed by the Refunded Bonds were incurred to be received by the City from the Housing and Redevelopment Authority of Richfield (the "Authority") pursuant to the Tax Increment Agreement (the "Agree- ment") executed by the City and the Authority on May 9, 1977 are hereby irrevocably appropriated and pledged to the Fund subject to the provisions of paragraph 2.08 hereof and the provisions of Minnesota Statutes, Sections 271.77 to 273.78, the Tax Increment Financing Act. If any payment of principal or interest on Bonds payable from the Fund shall become due. when there is not sufficient money in the Fund to pay the same, the Finance Director shall pay such principal or interest from the general fund of the City and such fund may be reimbursed for such advances out of proceeds of the tax increments or taxes when received. 2.06. It is hereby found and determined as follows: a) The amount of estimated Tax Increments. received and to be received by the-City pursuant to the Agreement will exceed 20°~ of the Public Redevelopment Costs to be incurred in the Project Area. b) The Projects for which the Public Redevelapment Costs have been and are to be incurred in the Project Area are consis- tent with the Comprehensive Municipal Plan of the City and that the Redevelopment Plan, and all amendments thereto for the Project Area have been referred to the City Planning Commission under the provisions of Minnesota Statutes, Section 462.356, Subdivision 2. 2.07. It is further determined that the estimated collections of Tax Increments under the Agreement together with the proceeds of any taxes collected pursuant to the provisions of Section 8 of Resolution No. 5717 for the payment of the City's General Obligation Redevelop- ment Bonds of 1977 dated August 1, 1977 (the "1977 Bonds") will pro- duce at least five percent in excess of the amounts needed to meet 7 __ ._ _ __ i ~II~ ~I when due .the principal aid interest payments on the Redevelopment Refunding Bonds and the 19'77 Bonds and that no additional tax levy is needed at this time. The 1977 Bonds, the Redevelopment Refunding Bonds, and all bonds herea'~fter issued and made payable from the Fund are and shall be equally ',and ratably secured by the pledge of all assets of the Fund. Nothing in this resolution affects or rescinds the taxes levied in Section 8 of Resolution No. 5717, or the authority of the City Finance Director to request the Director of Property Taxation of Hennepin County to annually reduce or cancel such levies. 2.08. This Council by paragraph 12 of Resolution No. 6310 issuing the City's $6,100,000 General Obligation Improvement Bonds of 1980 (the "1980 Bonds") has determined that the public improvements financed by the 1980 Bonds constituted projects undertaken by the City in aid of the Project Area and constituted Public Redevelopment Costs of the Project Area. This'Council further therein determined to use Tax Increments received under the Agreement to pay all or a portion of the City's costs of those public improvements as represented by the tax levies made by paragraph 9 of Resolution No. 6310. Accordingly this Council reaffirms paragraph 12 of Resolution No. 6310, and re- states its intention to deposit from time to time such portion of the Tax Increments to the Sinking Fund for the 1980 Bonds as in its judg- ment is necessary and available for debt service on the 1980 Bonds. 2.09. All capitalized terms used in Section 2.05 through 2.08 and not otherwise defined in this resolution, have the meanings given them by Resolution No. 6589, awarding the sale of the General Obliga- tion Redevelopment Bonds of'1982 refunded by this resolution. Section 3. Improvement Refunding Bonds. 3.01. The City shall forthwith issue the Improvement Refunding Bonds pursuant to the Act. The Improvement Refunding Bonds shall be l0I in number and numbered '1 to 101, both inclusive, in the denomina- tion of $5,000 each, all dated May 1, 1983, bearing interest as above provided, payable August 1, 1983, and semiannually thereafter on February 1 and August 1 in each year, and which shall .mature serially on February 1 in the years and amounts as follows: Year Amount Year Amount 1985 $70,000 1992 $25,000 1986 $70,000 1993 $25,000 1987 70,000 1994 20,000 1988 70,000 1995 20,000 1989 25,000 1996 25,000 1990 25,000, 1997 20 000 1991 20,000 1998 20,000 Improvement Refunding Bonds maturing after February 1, 1993 are sub- ject to redemption at the option of the City on said date and any interest payment date thereafter in inverse order of serial numbers, at a price of par and accrued interest to date of redemption. 8 3.02, Both principal and interest on the Refunding Bonds shall be payable at the First Trust Company of Saint Paul, in the City of St. Paul, Minnesota, (Paying Agent) and the City shall pay the reasonable charges of the Paying Agent for its services. 3.03. The Improvement Refunding Bonds and the interest coupons thereto attached shall be in substantially the following form: No. Ss,ooa UNITED STATES OF AMERiCA STATE OF MINNESOTA COUNTY OF IiENNEPIN CITY OF RICHFIELD GENERAL OBLIGATION IMPROVEMENT REFUNDING BOND OF 1983 KNOW ALL MEN BY THESE PRESENTS that the City of Richfield, Iiennepin County, Minnesota, a municipal corporation in the State of Minnesota, acknowledges itself to be indebted and, for value received, hereby promises to pay to bearer out of its General Obligation Improve- ment Refunding Bonds of 1983 Fund the sum of FIVE THOUSAND DOLLARS on the 1st day of February, 19_, and to pay interest thereon from the date hereof until the principal sum is paid at the rate of percent ( %) per annum, all interest to maturity payable August }, 1983, and semiannually thereafter on the 1st day of February and the 1st day of August in each year in accordance with and upon presenta- tion and surrender of the attached interest coupons as they severally become due. Both principal and interest on this bond are payable at First Trust Company of Saint Paul, in the City of St. Paul, Minnesota, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. All bonds of this issue maturing after February I, 1993, are subject to prior redemption at the option of the City on said date and any interest payment date thereafter in inverse order of serial numbers at a price of par and accrued interest. Interest on all bonds called for redemption shall cease on the redemption date unless the bond is presented for payment and paS~nent is refused. This bond is one of an issue of bonds in the total principal amount of $505,000, all of like date and tenor except as to interest rate, maturity, serial number and redemption privilege, all issued by the City for the purpose of providing money to refund, pursuant to Minnesota Statutes, Section 475.67, in advance of their maturity, the outstanding principal amount of certain General Obligation Improvement Bonds of the City, which have been issued to defray the expenses incurred in construction of various assessable public improvements in the City, pursuant to and in full conformity with the Charter of the City and the Constitution and Laws of the State of Minnesota, includ- ing Minnesota Statutes, Chapter 429, and is payable primarily from 9 special assessments against property specially benefited thereby, but constitutes a general obligation of the City, and to provide moneys for the prompt and full payment of said principal and interest as the same become due, the full faith .and credit of the City is hereby irrevocably pledged and ~Ithe City Council will levy additional ad valorem taxes, if required''for such purpose, which taxes may be levied on all of the taxable property in the City without limitation as to rate or amount. IT IS HEREBY CERTIFIED AND RECITED that all acts; conditions, and things required by the Charter of the City and Constitution and Laws of the State of Minnesota to be done, to happen and to be performed precedent to and in the issuance of this bond have been done, have happened and have been performed in regular and due form, time and manner as required by law; ',and that this bond, together with all other indebtedness of the City outstanding on the date hereof and the date of its actual issuance and delivery does not exceed any Charter, constitutional or statutory limitation thereon. IN WITNESS WHEREOF, 'the City of Richfield, Hennepin County, Minnesota, by its City Council, has caused this bond to be executed by the facsimile signatures of the Mayor and the City Manager and by the manual signature of one of said officers, and sealed with the printed facsimile of the corporate' seal of the City and the interest coupons hereto attached to be executed and authenticated by the facsimile signatures of said officers, all as of May 1, 1983. .(Facsimile signature) City Manager (Facsimile si nature) Mayor (FACSIMILE SEAL) (Form of Coupon) No. S On the 1st day of August (February) 19_, (unless the bond to which this coupon appertains has been previously called for redemp- tion) the City of Richfield, Hennepin County, Minnesota, will pay to bearer the amount shown hereon in lawful money of the United States of America, for interest thenldue on its General Obligation Improvement 10 Refunding Bond of 19$3, dated May 1, 1983, Ido. __ {facsimile signature) Mayor (facsimile signature) City Manager 3.04. The Improvement Refunding Bonds shall be payable from the General Obligation Improvement Refunding Bonds of 1983 Fund (Debt Service Fund) hereby created, and the proceeds of any general taxes hereinafter levied and special assessments (Assessments) heretofore levied for the public improvements (Improvements) financed by the Improvement Refunding Bonds and the Bonds refunded hereby are pledged to the Debt Service Fund. The improvement bond funds heretofore established for the bonds refunded hereby are terminated, and all monies therein are hereby transferred to the Debt Service Fund pro- vided, however, that the Finance Director is hereby authorized and .directed to transfer from said improvement funds those amounts deter- mined by actuarial calculation at the time of delivery of the Improve- ment Refunding Bonds to be necessary to properly. fund the Escrow Account established by Section 4 of this resolution. If any payment of principal or interest on the Improvement Refunding Bonds shall become due when there is not sufficient money in the Debt Service Fund to pay the same, the Finance Director shall pay such principal or interest from the general fund of the City, and the Debt Service Fund may be reimbursed for such advances out of proceeds of Assessments when collected. 3.05. It is hereby determined that the City has duly levied special assessments (Assessments) for the Improvements in the prin- cipal amount of at least 20% of the cost of the Improvements. To pay the City's share of the cost of the Improvements, there is hereby levied a direct, annual, irrepealable ad valorem tax Ievy against all taxable properties in the City, which tax levy shall be in the years and amounts as follows (year stated being year of levy for collection the following year): YEAR LEVY YEAR LEVY 1983 58,500.00 1990 7,200.00 1984 31,100.00 1991 6,600.00 1985 30,900.00 1992 900.00 1986 30,500.00 1993 700.00 1987 0 1994 5,800.00 1988 7,400.00 1995 0 1989 1,900.00 1996 0 It is hereby determined that the estimated collection Assessments pledged for the payment of the Improvement Refunding Bonds and the 11 i foregoing ad valorem tax levy will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Improvement Refunding Bonds. The tax levy herein provided shall be '~irrepealable until all of the Improvement Refunding Bonds are paid, provided that the City Finance Director may annually, prior to flctober'lOth, certify to the Director of Property Taxation of Hennepin County the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the Director of Property 'Taxation' shall thereupon reduce the levy collectible during such year by the amount so certified. It is further determined that upon the deposit of Proceeds and Funds (as hereinafter defined) in th~'e Escrow Account (as hereinafter defined) that an irrevocable appropriation to the Debt Service Fund shall have been made within the meaning of Section 475.61, Subdivision 3 of the Act, and the City Clerk is I hereby authorized and directed to certify such fact to and request the Director of Property Taxation to cancel any and ail tax levies made'by the resolution awarding the sale of and issuing the General Obligation Improvement fonds of 1982 refunded hereby. 3.06, It is hereby determined that the Improvements have bene- fitted and will directly and indirectly benefit abutting properties. The City hereby covenants with the holdexs from time to time of the Improvement Refunding Bonds as follows: (a} The City having caused the Assessments for said improvement to be levied, will take all steps necessary to assure prompt collection of the Assessments. (b) In the event of any current or anticipated defi- ciency in the Assessments, the City Council will levy ad valorem taxes in the amount of said current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing alI regeipts and disbursements in connection with the Improvements,'the taxes levied and the Assessments levied therefor and other funds appropriated for their payment, and alI co1'lections thereof and disbursements therefrom, moneys on hand and balance of unpaid Assessments. (d) The City will cause its books and records to be audited at least annually by qualified public accountants and will furnish copies of such audit reports to any bond- holders upon request. Section 4. Refunding: .Findings: Escrow: Redemption of Refunded Bonds. 4.01. The Refunded Bonds are the following issues of General Obligation Bonds of the City,: 12 (a) $4,100,000 General Obligation Redevelopment Bonds of 1982, dated May 1, 1982; and (b) $515,000 General Obligation Improvement Bonds of 1982, dated May 1, 1982. It is hereby. found and determined that based upon information pre- sently available from the City's financial advisers, the issuance of the Refunding Bonds will result in a reduction of debt service or interest cost to the City on the Refunded Bonds as follows: Refunded Bonds Net Effective Interest Rate: Refunded Bonds Net Effective Interest Rate: Refunding Bonds 8.2249% 7.650% 8.1929% Redevelopment Bonds 11.04129 Improvement Bonds 10.4603 Combined Net Effective Interest Rate on all Bonds: With regard to the Redevelopment Refunding Bonds, the dollar value of such debt service cost savings (Reduction) is $538,253. The dollar amount of the Reduction is 10% of the debt service or interest cost on the Refunded Bonds. The average life of the maturities on the Refunded Bonds is extended 0 years. With regard to the Improvement Refunding Bonds, the Reduction is $2.8,954. The dollar amount of the Reduction is 12% of the debt ser- vice on the Refunded Bonds. The average life of the maturities on the Refunded Bonds is extended .344 years. Such Reductions, after the inclusion of all expenses of refunding in the computation of the effective interest rate on the Refunding Bonds, is adequate to authorize the issuance of the Refunding Bonds as provided by Section 475.67, Subdivision 12 of the Act. 4.02. As of the date of delivery of and payment for the Refund- ing Bonds the proceeds (Proceeds) of the sale of the Refunding Bonds, in the amount of $4,927,751.21 together with other funds (Funds) in the amount of $515,599 hereby appropriated for such purpose as shall be necessary to pay the principal of, interest on and redemption premium (if any) on the Refunded Bonds to their maturity or the date on which they are called for redemption, whichever date is earlier, less necessary expenses of the issuance of the Refunding Bonds and less any amount of Proceeds in excess of $4,902,699 required to be deposited pro rata in the respective debt service funds for the Re- funding Bonds by Section 1.01, are hereby pledged and appropriated and shall be deposited in escrow in account with the First National Bank of Minneapolis, Minneapolis, Minnesota, a suitable banking institution within the State, whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than $500,000 and said bank is hereby designated escrow agent 13 (Agent) for such Proceedsl~ and Funds. The City shall pay the reason- able charges of the Agent for its services. The Proceeds and Funds shall be invested in securities maturing or callable at the option of the holder on such dated,and bearing such interest at such rates as shall be required to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, to pay when due the interest to accrue on each Refunded Bond at maturity or on the date on which it is called as herein provided and to pay the principal amount of each such Refunded Bond at maturity or on the date on which it has been called for redemption~~ and to pay any premium required for redemp- tion on such date. The monies in the Escrow Account shall be used solely for the purposes herein set forth and for no other purpose, except that if any balance shall remain in the Escrow Account after all of the Refunded Bonds and interest (and any premium) thereon are paid, then such balance shall be transferred pro rata to the respec- tive debt service funds for the Refunded Bonds. 4.03. The City Council hereby finds and determines that the Proceeds and Funds available and appropriated to the Escrow Account will be sufficient, together with the permitted earnings on the investment of the Escrow Account to pay at maturity or redemption all of the principal of, interest on and redemption premium (if any) on the Refunded Bonds. 4.04. Securities purchased from the monies in the Escrow Account shall be limited to securities set forth in Section 475.67, Subdivi- sion~8 of the Act. Securities purchased for the Escrow Account shall be purchased simultaneously with the delivery of and payment for the Refunding Bonds. 4.05. The Refunded 'Bonds shall be redeemed and prepaid as follows: a) General Obligation Redevelopment Bonds of 1982, matur- ing on February 1, 1995 and thereafter shall be redeemed and prepaid on February 1, 1994y b) General Obligation Improvement Bonds of 1982, maturing on February 1, 1989 and thereafter shall be redeemed and prepaid on February 1, 1988. The Refunded Bonds shall be redeemed and prepaid. in accordance with their terms and in accordance with the terms and conditions set forth in the forms of Notices of Call attached hereto as Exhibits C-1 and C-2, which terms and conditions are hereby approved and incorporated herein by reference. The City Clerk is hereby authorized and direeted to forthwith publish said notices of call in a publication qualified under Section 475.54 of th!e Act and to send certified copies of the Notices of Call to the paying agents for the Refunded Bonds, provided that published notice alone shall be effective. 4.06. On or prior to: the delivery of the Refunding Bonds, the Mayor and the City Manager are authorized and directed to execute on 14 behalf of the City an escrow agreement (Escrow Agreement) with the Agent in substantially the form now on file with the City Clerk. A11 essential terms and conditions of the Escrow Agreement are hereby approved and adopted and made a part of this resolution, and the City covenants that it will promptly enforce all provisions thereof in the event of default thereunder by the Agent. 4.07. When all Refunding Bonds and all coupons appertaining thereto, have been discharged as provided in this paragraph, all pledges, covenants and .other rights granted by this resolution to the holders of the Refunding Bonds shall 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 Refunding Bonds shall remain in full force and effect. The City may discharge all Refunding Bonds and coupons which are due on any date by depositing with the Paying Agent for such bonds on or before that date a sum sufficient for the payment thereof in full; if any Refunding Bond or appurtenant coupon should not be paid when due, they may nevertheless be discharged by depositing with the Paying Agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge and defease the Refunding Bonds in their entirety by complying with the provisions of Section 475.67, Subdivisions 4 to 11 of the Act, except that the funds deposited in escrow in accordance. with said provisions may (to the extent permitted by law) but need not be, in whole or in part, pro- ceeds of refunding bonds and coupons as therein provided without the consent of any Bondholders. Section S. Execution of Bonds: Authentication of Transcript. S.O1. The City has agreed to furnish to the Purchaser the approving legal opinions of LeFevere, Lefler, Kennedy, O'Brien & Drawl, a Professional Association,. Minneapolis, Minnesota, and such opinions are hereby requested. The Clerk shall obtain a copy of said approving legal opinions, which shall be complete except as to dating thereof, and shall cause said opinions to be printed on each appro- priate Refunding Bond, together. with a certificate to be signed by the facsimile signature of the Clerk in substantially the following form: I hereby certify that the foregoing is a full, true and correct copy of the legal opinion executed by the above named attorneys, except as to dating thereof, which opinion has been handed to me for filing in my office prior to the time of bond delivery. (facsimile signature) City Clerk City of Richfield, Minnesota 15 At the time of delivery,'Ithe Clerk shall prepare a similar separate certificate and the Clerk is hereby authorized and directed to execute such certificate in the name of the City upon receipt of such opinion and to file the Op1n1OnS in the Clerk's office. 5.02. The Refunding I'iBonds shall be prepared under the direction of the City Clerk and when so prepared shall be executed on behalf of the City by the fassimile signatures of the Mayor and the City Manager and by the manual signature of one of said officers, with the printed facsimile seal of the City ',imprinted thereon, and the interest coupons shall be executed and authenticated by the facsimile signatures of the Mayor and City Manager, provided, however, that the signatures of both the Mayor and the City Manager may be facsimile signatures, duly authenticated by the manual signature of an officer of the First National Bank of Minneapolis hereby designated authenticating agent pursuant to Section 475.5';5, Subdivision 1 of the Act, and, if the Refunding Bonds are to be so executed and authenticated, the bond form set forth in Section 2.01 hereof shall be modified as follows: a) Substitute the following paragraph for the final para- graph of each of ',the Refunding Bonds: ''IN WITNESS w'HEREOF, the City of Richfield, Hennepin County, Minnesota, by its City Council has caused this bond to be executed by the facsimile signatures of its Mayor and City Manager and to be sealed with a fac- simile of the corporate seal of the City, and the interest coupons' hereto attached to be executed and authenticated by the facsimile signatures of said officers, and such signatures to_be authenticated by the manual signature of the City's duly authorized Authenticating Agent on the reverse side of this bond, all of as May 1, '1983." b) Add the following on the reverse side of each of the Refunding Bonds: "This bond is one~of the bonds of the series designated herein issued pursuant to the resolution authorizing its issuance and delivery." The First National Bank of Minneapolis As Authenticating Agent By Its Authorized Officer When the Refunding Bonds have been so executed and authenticated, the same shall be delivered by '', the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be required to see to the proper application thereof. lb EXHIBIT C-2 NOTICE OF CALL FOR REDEMPTION $4,100,000 GrNF:~AL OBLIGATION REDEVELOPMENT BONDS OF 1983 CITY OF RICHFIELD HENNEPIN COUNTY, MINNESOTA NOTICE 7~ ~~,REBY GIVEN, that, by order of the City Council of the City of Ri~L~iFld, Hennepin County, Minnesota, there have been called for redemF-_ :_or. and prepayment on February 1, 1994 all o3.~_standing bonds of the City designated as General Obligation Redev~...opment Bonds of 1982, dated May 1, 1982, bearing serial numbers 296 _rough 820, inclusive, having stated maturity dates of February I in _he years 1995 through 1999, both inclusive, and .totalling $2 .2,000 in principal amount. The bonds are being called at a price or par plus accrued interest to February 1, 1994, on which date all interest on the `bonds will cease to accrue. Holders of the bonds _7e°eby called for redemption are requested to present their bonds for payment with interest coupons attached at the main office of The First 1~ational Bank of Chicago, in the City of Chicago, Illinois, on or before February 1, 1994. Dated: April 20, 1983. BY ORDER OF THE CITY COUNCIL By /s/ Sylvia K. Bergh City Clerk City of Richfield Further Information: Evensen-Dodge, Inc. 801 Nicollet Mall 1900 Midwest Plaza West Minneapolis, Minnesota 55402 Tele: (612) 338-3535 800/328-8200 I9 STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS. CITi' OF RICHFIELD ) I, the undersigned, being the duly qualified and acting Clerk of the City of Richfield, hereby certify that I have carefully compared the attached and foregoing.. extract of minutes of the special meeting of the Council of the City of Richfield held on April 22, 1983, with the original thereof on file in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to the issuance and sale of $5,005,000 General Obligation Refunding Eonds of 1983, of the City. WITNESS My hand officially as such Clerk this 20th day of April, 1983. ity erk City of Richfield, Minnesota (SEAT) 20 5.03. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the legality of the issuance of the Refunding Bonds, cer- tified copies of all proceedings and records of the City relating to the Refunding Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of said bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any hereto- fore furnished, shall be deemed representations of the-City as to the facts stated therein. The Mayor, City Manager and Finance Director are hereby authorized and directed to certify that they have examined the Official Statement dated April 7, 1983, prepared and circulated in connection with the issuance and sale of the Refunding Bonds and that to the best of their knowledge and belief said statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.04. The City Clerk is .directed to file a certified copy of the resolution with the Director of Property Taxation of Hennepin County and to obtain the certificate required by Minnesota Statutes, Section 475.63. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Ludeman, and upon vote being taken thereon, the following voted in favor thereof: Hamilton, Kirsch, Bunce, Ludeman, and Hassenstab and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. Passed by the City Council of the City of Richfiel-~ this 20th day of April, 1983. ATTEST: ohn HdAfilton Mayor Sy7~la K. BergH' ' ` City~'ilerk li E~iIBIT C-1 NOTICE OF CALL FOR REDEMPTION $SIS,000 GENERAL,OBLIGATION IMPROVEMENT BONDS OF 1982 CITY OF RICHFIELD HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN, that, by order of the City Council of the City of Richfield, Hennepin County, Minnesota, there have been called for redemption and prepayment on ,February 1, 1988 all outstanding bonds of the City designated as General Qbligation Improvement Bonds of 1982,, dated May 1, 1982, bearing serial numbers 64 through 103, inclusive,', having stated maturity dates of February 1 in the years 1989 through 1'998, both inclusive, and totalling $200,000 in principal amount. The bonds are being called at a price of par plus accrued interest to February 1, 1988, on which date all interest on the bonds will cease to ;accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment with interest coupons attached' at the main office of The First Trust Company of St. .Paul, in the City of St. Paul, Minnesota, on or before February 1, 1988. Dated: April 20, 1983. BY ORDER OF THE CITY COUNCIL By /s/_ Sylvia K. Bergh. City Clerk City of Richfield Further Information: Evensen-Dodge, Inc. 80I Nicollet Mall 1900 Midwest Plaza West Minneapolis, Minnesota 55402 Tele: (612) 338-3535 800/328-8200 18