89-059
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EXTRACT OF IIIRU'l'ES OF IIBBTIRG OF THE
CI'l'Y COUNCIL OF THE CI'l'Y OF SHORB1iOOD,
HENNEPIN COUN'l'Y, IIIRRBSOTA
Pursuant to notice thereof, a regular meeting of the City Council
of the City of Shorewood, Hennepin County, Minnesota, was held at the Ci ty
Hall in said City on Monday, July 24, 1989, commencing at 7:30 p.m.
The following members were present: J. Haugen, R. Gagne,
K. Stover & V. Watten
and the following were absent: B. Brancel
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The following resolution was presented by Member
Gagne
who moved its adoption:
RESOLUTION NO. 59-89
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$1,095,000 GENERAL OBLIGATION IIIPROVEMENT BONDS,
SERIES 1989A
WHEREAS, on July 1, 1987, the City sold $1,450,000 General
Obligation Temporary Improvement Bonds, Series 1987A, which mature on July
1, 1990, but are subject to being called for pr ior redemption on January 1,
1990, and
WHEREAS, Springsted Incorporated, the City's financial advisor,
has reviewed the status of the sinking fund for these bonds and has
indicated that the City could issue temporary improvement bonds to refund
the outstanding bonds or can issue long-term definitive bonds which will
mature over the period of time that the special assessments from Shorewood
Oaks will be collected, and
WHEREAS, the current bond market is very strong and it appears that
favorable interest rates can be obtained for definitive bonds,
NOW, THEREFORE, BE IT RESOLVED By the City Council of the City of
Shorewood, Hennepin County, Minnesota, as follows:
1. It is hereby determined:
(a)
That the assessable public improvements (the
"Improvements") financed by the General
Obligation Temporary Improvement Bonds, Series
1987A, have been made and duly ordered and
contracts let for the construction thereof by the
City pursuant to the provisions of Minnesota
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Statutes, Chapter 429.
The outstanding bonds are subject to being called
on January 1, 1990, and can be financed in the
following manner:
(b)
Outstanding Principal, 1987A Bonds
Accrued Interest 7-1-89 to 1-1-90
Less: Available Cash (Prepaid
Assessments)
Net Required Refinancing
Plus Issuance Costs
Allowance for Discount Bidding
Total Bond Issue
$1,450,000
38,425
(429,150)
$1,059,275
19,300
16,425
$1,095,000
(c) That it is necessary and expedient to the sound
financial management of the affairs of the City to
issue $1,095,000 General Obligation Improvement
Bonds, Series 1989A (the "Bonds"), to provide
financing for the Improvements and the
refinancing of the temporary improvement bonds,
which Bonds shall be fully registered.
2. In order to provide financing for the Improvements, the City
shall issue and sell Bonds in the amount of $1,078,575; in order to provide
in part the additional interest required to market the Bonds at this time,
additional Bonds shall be issued in the amount of $16,425. Any excess of
the purchase price of the Bonds over the sum of $1,078,575 shall be credited
to the debt service fund for the Bonds for the purpose of paying interest
first coming due on the Bonds. The Bonds shall be issued and sold in
accordance with the terms of the Official Notice of Sale which is attached
hereto and marked Exhibit A.
3. The City Clerk is authorized and directed to advertise the'
Bonds for sale in accordance with the attached notice of sale and, if
publication is made, to cause the abbreviated notice of sale attached
hereto as Exhibit B to be published in the manner required by law. Sealed
bids shall be received until 11:00 a.m. on August 28, 1989. The City
Council shall meet on Monday, August 28, 1989, at 7: 30 p.m. for the purpose
of considering the bids on the Bonds and taking any other appropriate
action. . . ,
The motion for the adoption of the foregoing resolution was dUly
following voted in favor thereof:
All members present
and upon vote being taken thereon, the
seconded by Member
Stover
and the fOllowing voted against: None
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whereupon said resolution was declared duly passed and adopted.
Approved and signed this ~ day of July , 1989.
Attest:
City Clerk
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Exhibit A
OI'FICIAL 'lBRMS I)P OPFERIBG
$1,095,000 GENERAL OBLlGATIOB IMPROVEMENT BONDS, SERIBS 1989A
CITY OP SBORBliOOD
BBRNBPIB COONft, IIIRNBSO'l'A
Sealed bids for the Bonds will be received by the City or its designee on
Monday, August 28, 1989, until 11 :00 a.m., Central Time, at the offices of
SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota after which time they will be opened and tabulated.
Consideration for award of the Bonds will be by the City Council at 7:30
p.m., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated October 1, 1989, as the date of or iginal issue, and
will bear interest payable on February 1 and August 1 of each year,
commencing February 1, 1990. Interest will be computed on the basis of a
360-day year of twelve 30-day months and will be rounded pursuant to rules
of the MSRB. The Bonds will be issued in the denomination of $5,000 each,
or in integral multiples thereof, as requested by the purchaser, and fully
registered as to principal and interest. Principal will be payable at the
main corporate office of the registrar and interest on each Bond will be
payable by check or draft of the registrar ma~led to the registered holder
thereof at the holder's address as it appears on the books of the registrar
as of the close of business on the 15th day of the immediately preceding
month.
The Bonds will mature February 1 in the years and amounts as follows:
1990 $55,000 1995 $80,000 2000 $75,000
1991 85,000 1996 80,000 2001 75,000
1992 85,000 1997 80,000 2002 75,000
1993 85,000 1998 80,000 2003 75,000
1994 85,000 1999 80,000
OPTIONAL REDEMPTION
The Ci ty may elect on February 1, 1996, and on any day thereafter, to prepay
Bonds due on or after February 1, 1997. Redemption may be in whole or in
part, in inverse order of matur i ty by lot as selected by the registrar. All
prepaYments shall be at the price of par and accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will
pledge its full faith and credit and power to levy direct general ad valorem
taxes. In addition the City will pledge special assessments levied
against benefited properties. The proceeds will be used to refinance the
City's $1,450,000 General Obligation Temporary Improvement Bonds, Series
1987A, dated July 1, 1987.
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TYPE OF BID
Bids shall be for not less than $1,078,575 and accrued interest on the total
principal amount of the Bonds, and shall be accompanied by a certified or
cashier I s check in the amount of $10,950, payable to the order of the Ci ty.
No bid will be considered for which said check has not been received. The
Ci ty will deposit the check of the purchaser, the amount of which will be
deducted at settlement and no interest will accrue to the purchaser. In
the event the purchaser fails to comply with the accepted bid, said amount
will be retained by the Ci ty. No bid can be wi thdrawn after the time set for
receiving bids unless the meeting of the City scheduled for award of the
bids is adjourned, recessed, or continued to another date without award of
the Bonds having been made. Rates shall be in integral multiples of 5/100
or 1/8 of 1%. Rates must be in ascending order. No conditional bid will be
accepted.
AWARD
The Bonds will be awarded to the bidder offering the lowest dollar interest
cost to be determined by the deduction of the premium, if any, from, or the
addi tion of any amount less than par, to the total dollar interest on the
Bonds from their date to their final scheduled maturity. The City's
computation of the total net dollar interest cost of each bid, in accordance
with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive
informali ties of any bid or of matters relating to the receipt of bids and
award of the Bonds, (ii) reject all bids without cause, and, (iii) reject
any bid which the City determines to have failed to comply with the terms
herein. .
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC
regulations. The City will pay for the services of the registrar.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be
printed on the Bonds, but neither the failure to print such numbers on any
Bond nor any error with respect thereto will constitute cause for failure or
refusal by the purchaser to accept deli very of the Bonds. The CUSIP
Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be
delivered without cost to the purchaser at a place mutually satisfactory to
the City and the purchaser. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Wurst, Pearson, Larson,
Underwood and Mertz of Minneapolis, Minnesota, which opinion will be
printed on the Bonds, and of customary closing papers, including a no-
litigation certificate. On the date of settlement payment for the Bonds
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shall be made in federal, or equivalent, funds which shall be received at
the offices of the City or its designee not later than 12: 00 Noon, Central
Time. Except as compliance with the terms of pa~ent for the Bonds shall
have been made impossible by action of the C1ty, or its agents, the
purchaser shall be liable to the City for any loss suffered by the City by
reasons of the purchaser's non-compliance with said terms for payment.
OFFICIAL STATEMENT
Underwriters may obtain a copy of the Official Statement by request to the
Ci ty' s Financial Advisor prior to the bid opening. The purchaser will be
provided with 50 copies of the Official Statement.
Dated July 24, 1989
BY ORDER OF THE CITY COUNCIL
Sandra Kennelly
Clerk
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Exhibit B
RO'tICE OF SALE
$1,095,000 GKm&KAL OBLlGA~IOR IKPROVBM~ BOROS, SERIES 1989A
Cln OF SBORE1lOOD
BBNRBPIJI COUftY, IIIJlRBSO'rA
These bonds will be offered on Monday, August 28, 1989. Bids will
be received until II: 00 a.m. at the offices of SPRINGSTED Incorporated, 85
East Seventh Place, Suite 100, Saint Paul, Minnesota, and the bids will be
considered by the City Council at the City Ball in the City of Shorewood at
7:30 p.m. on said date. Dated October I, 1989, the bonds will mature on
February I in the years and amounts as follows:
Year Amount Year Amount Year Amount
1990 $55,000 1995 $80,000 2000 $75,000
1991 85,000 1996 80,000 2001 75,000
1992 85,000 1997 80,000 2002 75,000
1993 85,000 1998 80,000 2003 75,000
'1994 85,000 1999 80,000
Bonds maturing after February 1, 1996, will be subject to redemption and
prepayment at the option of the City and in whole or in part, in inverse
order of maturities and by lot assigned in proportion to their principal
amount, within any maturity, on February 1,1996, a'nd any
date thereafter at a price equal to the principal amount thereof to be
redeemed plus accrued interest to the date of redemption.
The City will appoint a Bond Registrar, Transfer Agent and Paying
Agent. Interest will be payable on each February 1 and August 1,
commencing February 1, 1990, to the registered owners of the Bonds
appearing of record in the bond register as of the 15th day of the
immediately preceding month. An unqualified legal opinion will be
furnished by Messrs. Wurst, Pearson, Larson, Underwood, and Mertz, of
Minneapolis, Minnesota. The purpose of the Improvement Bonds is to
finance var ious public improvements in the Ci ty. The var ious improvements
will be paid from special assessments and general funds of the Ci ty. No bid
of less than $1,078,575 will be considered.
Bidders should be aware that the Official Notice of Sale to be
published in the Official Statement for the Bonds may contain additional
bidding terms and information relative to the issue. In the event of a
var iance between statements in this Notice of Sale and said Official Notice
of Sale, the provisions of the latter shall control.
Dated July 24, 1989
BY ORDER OF THE CITY COUNCIL
Sandra Kennelly
City Clerk
Shorewood, Minnesota
Further information may be obtained from and bids shall be delivered to:
SPRINGSTED Incorporated
Public Finance Advisors
85 East Seventh Place, Suite 100
Saint Paul, MN 55101-2143
(612) 223-3000
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STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF SHOREWOOD
I, the undersigned, being the duly qualified and acting City Clerk
of the City of Shorewood, Minnesota, do hereby certify that I have carefully
compared the attached and foregoing extract of minutes of a regular meeting
of the City Council of said City held on July 24, 1989, with the or iginal
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
$1,095,000 General Obligation Improvement Bonds, Series 1989A of the City.
\ WITNESS My hand as such Clerk and the corporate seal of the City
this d?1/t7>day of p~~ ' . 1989.
(V~,~('~~
City Clerk
City of Shorewood
(SEAL)
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SPRINGSTED
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PUBLIC FINANCE ADVISORS
85 East Seventh Place, Suite 100
Saint Paul, Minnesota 55101.2143
612.223.3000
FAX 612.223.3002
July 26, 1989
Ms. Sandra Kennelly, Clerk
City Hall
5755 Country Club Road
Shorewood, MN 55331
RE: $1,095,000 G.O. Improvement Bonds, Series 1989A
Dear Ms. Kennelly:
Enclosed you will find a completed copy of the resolution
providing for the sale of these bonds. This is for your
filing. We will take care of publishing the notice of sale
as required in section 3.
If you have any questions, please feel free to call me.
Sincerely,
!ld...N'- ~C/LI ~/...,~ r.::lY~) /,,<
Nancy Langness U
Vice President
<.4--.
Enclosure
jcep
Indiana Office:
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I ndianapolis, Indiana 46204.1942
317.237.3636
Fax: 317.237.3639
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414.782.8222
Fax 414.782.2904