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86-086 , " . . . J Bfo -" B~J EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF SHOREWOOD, HENNEPIN COUNTY, MINNESOTA Pursuant to due call and notice thereof, a (5p>>~jIl) (regular) meeting of the City Council of the City of Shorewood, Hennepin County, Minnesota, was duly held at the City Hall in said City on Monday, the 28th day of July, 1986, at 7:30 p.m. The following members were present: Mayor R. Rascop, R. Gagne, J. Haugen, T. Shaw & K. Stover and the following were absent: None * * * * * * * * * The Mayor announced that the next order of business would be the consideration of bids for the purchase of $985,000 General Obligation Improvement Bonds, Series 1986A in accordance with the resolution adopted June 23, 1986. The City Clerk presented affidavits showing publication of a notice of sale in the official newspaper of the City and in Commercial West , a financial newspaper published in Minneapolis, Minnesota, which affidavits were examined and found satisfactory and ordered placed on file. The City Clerk then presented the proposals which had been delivered to her prior to the time specified in the notice of sale and said bids had been opened, examined and found to be as follows: See Attached SPRINGSTED INCORPORATED , -' ,1 Public Finance Advisors 85 East Seventh Place, Suite 100 Saint Paul, Minnesota 55101.2143 612.223.3000 $985,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1986A CITY OF SHORE WOOD, MINNESOTA AWARD: NOR WEST INVESTMENT SERVICES, INCORPORATED And Associates SALE: July 28, 1986 Rating: To be received by settlement Bidder Net Interest Cost & Rate Interest Rates Price NORWEST INVESTMENT SERVICES, INCORPORA TED American National Bank Saint Paul Moore, Juran and Company, Incorporated M.H. Novick & Company, Incorporated Robert S.C. Peterson, Incorporated . DAIN BOSWORTH INCORPORATED Juran & Moody, Incorporated THE FIRST NA TtONAL BANK OF SAINT PAUL FIRST BANK MINNEAPOLIS .ougherty, Dawkins, Strand & Yost, Inc. /Y\ iller & Schroeder Financial, Inc. 5.50% 1988 5. 75% 1989 6.00% 1990 6.25% 1991 6.50% 1992 6.75% 1993 7.00% 1994 7.20% 1995 7.35% 1996 7.50% 1997 7.60% 1998 7.70% 1999 7.80% 2000 7.90% 2001-2002 5.50% 1988 6.00% 1989 6.25% 1990 6.40% 1991 6.60% 1992 6.80% 1993 7.00% 1994 7.20% 1995 7.40% 1996 7.50% 1997 7.60% 1998 7.70% 1999 7.80% 2000 7.90% 2001-2002 6.20% 1988-1990 6.40% 1991 6.60% 1992 6.80% 1993 7.00% 1994 7.20% 1995 $966,285.00 $965,800.00 $965,802.35 $635,373.75 (7.5842%) $638,302.50 (7.6192%) $639,052.65 (7.6282%) .. SJO~ A I ~.8 :"<I! JnlOW ~5oJ~^ 'V 09. L :188 . JOd 10 P~J~HO~J 5u!~q ~JO spuo8 ~s~41 --------------------------------------------------------~------------------------------------------------------ (%08LL. L) S'9 . L09' I S'9 $ . (%171 S'9. L) S'Z.1796'0179 $ (%6SZ9. 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After due consideration of said bids, Councilperson Gagne introduced the following resolution and moved its adoption: RESOLUTION RO. 86-86 RESOLUTION AWARDING THE SALE OF $985,000 GENERAL OBLIGATION IMPROVEIIENT BONDS, SERIES 1986AJ FIXING THEIR FORM AND SPECIFICATIONSJ DIRECTING THEIR EXECUTION AND DELIVERY J AND PROVIDING FOR THEIR PAYMENT. BE IT RESOLVED, By the City Council of the City of Shorewood, Minnesota, as follows: 1. The proposal of Norwest Investment Services, Inc., in Minneapolis, MN to purchase $985,000 General Obligation Improvement Bonds, Series 1986A of the City described in the notice of sale thereof is hereby found and determined to be the highest and best bid received and shall be and is hereby accepted, such bid being to purchase such bonds at a price of $ 966,285.00 plus accrued interest to date of delivery, such bonds to bear interest as follows: 5.50% 5.75% 6.00% 6.25% 6.50% 1988 1989 1990 1991 1992 6.75% 7.00% 7.20% 7.35% 7.50% 1993 1994 1995 1996 1997 7.60% 7.70% 7.80% 7.90% 7.90% 1998 1999 2000 2001 2002 The sum of $ 485.00 , being the amount bid in excess of $965,800, shall be credited to the bond sinking fund hereinafter created. The City Clerk is directed to retain the good faith check of the successful bidder pending completion of the sale and delivery of the bonds. The City Clerk is directed to return the checks of the unsuccessful bidders forthwith. 2. The City of Shorewood shall forthwith issue and sell its General Obligation Improvement Bonds, Series 1986A (the wBonds.) in the principal amount of $985,000, dated August 1, 1986. The printed, fully registered bonds shall be in the denomination of $5,000 each or higher multiples thereof for any single maturity, bearing interest as above set forth, all interest payable August 1, 1987, and semiannually thereafter on August 1 and February 1 in each year, and which bonds mature serially on February 1 in the years and amounts as follows: YEAR AMOUNT YEAR AMOUNT . 1988 $50,000 1996 $65,000 1989 70,000 1997 65,000 1990 70,000 1998 65,000 1991 70,000 1999 65,000 1992 70,000 2000 65,000 1993 70,000 2001 65,000 1994 65,000 2002 65,000 1995 65,000 All Bonds maturing after February 1, 1992, are subject to call by the City for redemption on said date or any interest payment date thereafter at par and accrued interest. . In the event that pursuant to federal laws and regulations, the City is required to use unexpended Bond proceeds for early redemption of Bonds in order to continue exemption of the Bonds from federal taxation, the City shall use such unexpended Bond proceeds to redeem Bonds on any date after notice is given pursuant to law. Those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All such prepayments shall be at a price of 102% plus accrued interest. 3. Both principal of and interest on the Bonds shall be payable at Norwest Bank Minneapolis, N.A., in Minneapolis, Minnesota and the City of Shorewood shall pay the reasonable charges of said bank for its services as paying agent. 4. The Bonds shall be in substantially the following form: (Face of the Bonds) UNITED STATES OF AMERICA STATE OF MIRRESOTA HERREPIN COUNTY CITY OF SHOREWOOD GENERAL OBLIGATION IMPROVEIIENT BOND, SERIES 1986A Rate Maturity Date of Original Issue CUSIP . KNOW ALL MEN BY THESE PRESENTS that the City of Shorewood, Hennepin County, Minnesota, a municipal corporation, (the City), acknowledges itself to be indebted and, for value received, hereby promises to pay to or registered assigns, the principal sum of THOUSAND DOLLARS, on the maturity date specified above, with interest thereon from the date hereof at the annual rate specif ied above, payable on August 1 and February 1 in each year, commencing August 1, 1987, to the person in whose name this . . . Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof at the principal office of the Bond Registrar hereinafter designated, the principal hereof are payable in lawful money of the United states of America by check or draft of the , in ., Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the Bond Registrar), or its successor designated under the Resolution described herein. Additional provisions of this Bond are contained on the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth hereon. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Shorewood, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Clerk, and has caused this Bond to be dated as of the date set forth below. Dated: (Facsimile Signature) City Clerk (Facsimile Signature) Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. as Bond Registrar and Paying Agent Dated: By Authorized Representative (Reverse of the Bonds) This Bond is one of an issue in the aggregate principal amount of $985,000 (the Bonds) , all of like date and tenor except as to serial number, denomination, interest rate, redemption privilege, and maturity date, issued pursuant to a resolution adopted by the City Council on July 28, 1986, (the Resolution) , to finance public improvements constructed or to be constructed pursuant to Minnesota Statutes, Chapter 429, and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapter 475. This Bond is payable primarily from the General Obligation Improvement Bond, Series 1986A Fund (the .Bond Fund) of the City, but the City is required by law to pay maturing principal hereof and . . . interest hereon from any available funds of the City if moneys on hand in the Bond Fund are insufficient therefor. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or any multiple thereof, of single maturi ties. All Bonds maturing after February 1, 1992, are subject to call by the City for redemption on said date or any interest payment date thereafter at par and accrued interest. In the event that pursuant to federal laws and regulations, the City is required to use unexpended Bond proceeds for early redemption of Bonds in order to continue exemption of the Bonds from federal taxation, the City shall use such unexpended Bond proceeds to redeem Bonds on any date after notice is given pursuant to law. Those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All such prepayments shall be at a price of 102% plus accrued interest. 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 his 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 his 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 matur ing 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 shall be affected by any notice to the contrary.. . IT IS HEREBY CERTIFIED, RECITED, COVERARTED AND AGREED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed in regular and due form as so required: that the City has levied or will levy special assessments, collectible in the years and amounts required to produce sums not less than five percent in excess of the principal of and interest on the Bonds as such principal and interest respect- ively become due, and has appropriated the same to the Bond Fund in the manner specified in Minnesota Statutes, Section 475.61; that, in the event of any accumulated or anticipated deficiency in the Bond Fund, ad valorem taxes are required by law to be levied upon all taxable property in the City without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. . . . The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM - as tenants in cornmon UNIF GIFT MIN ACT...Custodian.... (Cust) (Minor) TEN ENT - as tenants by the entireties JT TEN as joint tenants with right of survivorship and not as tenants in common under Uniform Gifts to Minors Act . . . . . . . . . . . . (state) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns, and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: The assignor I 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 (s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided: . . . Name and Address (Include information for all joint owners if the Bonds are held by joint account.) PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 5. The Bonds shall be issuable only in fully registered form. The interest and principal amount thereof shall be payable by check or draft issued by the Registrar described herein. 6. Dates1 Interest Payment Dates. Each Bond shall 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 such Bond shall be dated as of the date of authentication, or (ii) the date of authentication is pr ior to August I, 1987, in which case such Bond shall be dated as of August I, 1986. The interest on the Bonds shall be payable on August I and February I in each year, commencing August I, 1987, to the owner 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. 7. Registration. The City shall appoint and shall maintain a bond registrar, transfer agent, and paying agent (the Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide 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 any 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 in writing, the Registrar shall 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 such interest payment date. . (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall 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 duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (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 legally authorized. The Registrar shall incur no liability for its 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 shall be overdue or not, for the purpose of receiving payment of, or on account of, the pr incipal 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 shall be valid and effectual to satisfy and discharge the liability of the Ci ty upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof 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 shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith1 and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar evidence satisfactory to it that such Bond was lost, stolen or destroyed, 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 bond the City and the Registrar shall be named as obligees, all pursuant to the provisions of Minnesota . . . . Statutes, Sections 475.69 and 475.70. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. 8. Appointment of Initial Registrar. The City hereby appoints Norwest Bank Minneapolis, N.A., in Minneapolis, Minnesota as the initial Registrar. The Mayor and the City Clerk are authorized to execute and deliver, on behalf of the City, a contract with as 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, such corporation shall 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 any Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this City, the City Clerk shall transmit to the Registrar, from the General Obligation Improvement Bond Fund described in paragraph 15 hereof, monies sufficient for the payment of all principal and interest then due. 9. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Clerk and shall be executed on behalf of the City by the signatures of the Mayor and the City Clerk, provided that the Mayor and Clerk's signatures may be facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall 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 such 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 of the Registrar. The executed certificate of authentication on each bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been so executed and authenticated, they shall be delivered by the Clerk to the Purchaser upon payment of the purchase price, and the Purchaser shall not be obligated to see to the application of the purchase price. . 10. The Clerk shall cause the proceeds of the Bonds to be applied for the costs of construction of public improvements authorized and approved pursuant to Minnesota Statutes, Chapter 429. II. It is hereby determined that the Improvements to be financed . by the Bonds will directly and indirectly benefit the abutting property, and the City hereby covenants with the holders from time to time of the Bonds, as follows: (a) The City will cause the assessments for the Improvements to be promptly levied so that the first installment will be collectible not later than 1988 if necessary and will take all steps necessary to assure prompt collection. The City Council shall cause all further actions and proceedings relative to the making and financing of the Improvements financed hereby to be taken with due diligence that are required for the construction of each Improvement financed wholly or partly from the proceeds of the Bonds, and for the final and valid levy of special assessments and the appropriation of any other funds needed to pay the obligations and interest thereon when due. . (b) In the event of any current or anticipated deficiency in said special 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 all receipts and disbursements in connection with the Improvements, the taxes levied and the assessments levied therefor and other funds appropriated for their payment, and all collections thereof and disbursements therefrom, moneys on hand and the 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 interested person upon request. 12. When all of the Bonds have been discharged as provided in this resolution, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, 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 City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United states agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and matur ing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due hereon to maturity. . . . 13. 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 1954, as amended (the Code), and the Treasury Regulations promulgated thereunder (the Reglations), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under the Code and the Regulations. 14. The City has agreed to furnish to the purchaser the approving legal opinion of Messrs. Wurst, Pearson, Larson and Underwood, of Minneapolis, Minnesota, and such opinion is hereby requested. The City Clerk shall obtain a copy of said approving legal opinion, which shall be complete except as to dating thereof, and shall cause said opinion to be printed on each 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 the dating thereof, which opinion has been handed to me for filing in my office prior to the time of bond delivery. City Clerk City of Shorewood At the time of delivery, the 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 opinion in the City offices. 15. The Bonds shall be payable from the General Obligation Improvement Bond, Series 1986A Fund hereby created, and the proceeds of any ad valorem taxes hereafter levied and special assessments to be levied for the improvements (the Improvements) financed by the Bonds are hereby pledged to said fund. If any payment of principal or interest on the Bonds shall become due when there is not sufficient money in said fund to pay the same, the City 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 assessments for the Improvements when collected. 16. It is hereby determined that the estimated collection of special assessments will produce at least five percent in excess of the amount needed to meet, when due, the pr incipal and interest payments on the Bonds. The City Clerk is directed to file a certified copy of this resolution with the County Auditor of Hennepin County and obtain the certificate required by Minnesota Statutes, Section 475.63. The full faith and credit of the City is irrevocably pledged for the prompt and full payment of the principal and interest on the Bonds. 17. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds and to the attorneys approving the same, 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, shall be deemed representations of the City as to the facts stated therein. 18. Retroactively Effective Federal Legislation. On December 18, 1985, the United States House of Representatives adopted H.R. 3838 (to be cited as the "Tax Reform Act of 1985 n) and said legislation proposes new rules which apply to certificates and bonds which are exempt from federal income taxation and further indicates that if this legislation is adopted by the United States Senate and signed into law by the President of the United States, the legislation will be retroactive for all bonds issued on or after January 1, 1986. The purchaser of these obligations might not proceed with the purchase and resale of the bonds unless the City represents and covenants to the purchaser that they will do everything necessary and possible to maintain the tax exempt status of the bonds and that the City represents and covenants that these funds will be used in such a manner as to assure the purchaser that they will continue to be essential function bonds within the meaning of H.R. 3838 and, further, that the City will comply with the rules relating to the bonds which may be imposed retroactively by H.R. 3838 in the form adopted by the House of Representatives on December 18, 1985, including, without limitation, rules relating to temporary periods of investments, limitations on amount invested at a yield greater than the yield on the bonds, the rebate of excess investment earnings to the United States, the expenditure of at least five percent of the net proceeds within 30 days of the issuance of the bonds, and that all of the proceeds will be spent within three years; and further, that the City will comply with any informational reporting requirement adopted as a part of the "Tax Reform Act of 1985." The Ci ty further covenants that to the extent that H .R. 3838, or any other tax reform act of 1985 or of 1986, is adopted by the United States Senate and is signed into law and said law requires retroactive compliance wi th the Act for bonds issued on or after January 1, 1986, then and in that event the City shall use its best efforts to meet the requirements of the new act, provided that, in meeting the requirements of the new act, the City will do so only to the extent consistent with the purposes of this resolution and consistent with the laws of the State of Minnesota and consistent with their ability to meet the restrictions and limitations within a reasonable period of time. 19. The Mayor, Administrator and City Clerk are hereby author- ized and directed to certify that they have examined the official statement or prospectus prepared and circulated in connection with the issuance and sale of the 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 said official statement or prospectus as it relates to the City. The motion for the adoption of the foregoing resolution was duly . . . seconded by Councilperson Haugen , and upon vote being taken thereon, the following voted in favor thereof: All members present and the following voted against: None whereupon said resolution was declared duly passed and adopted. Approved this day of July, 1986. Mayor Attest: City Clerk . . . STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF SHOREWOOD I, the undersigned, being the duly qualified and acting City Clerk of the Ci ty of Shorewood, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a meeting of the City Council of said City held on July 28, 1986, with the original thereof on file in my office and the same is a full, true and complete transcript thereof, insofar as the same relates to the issuance and sale of $985,000 General Obligation Improvement Bonds, Series 1986A of the City. the corporate seal of the City WITNESS My hand as such Clerk and this rl~ day of ?r ' 1986. ~~ JX~~ City Clerk City of Shorewood (SEAL)