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CR 99-135 Award Sale of Bonds-GO Storm Sewer Rev Bond, Series 1999C, GO Revolving Improvement Fund Bonds, Series 1999D & Taxable GO Housing Improvement Area Bonds, Series 1999B ---- ,/ '\ "( y 0 \ (j k July 16, 1999 :00 Coun~il Report 99-135 o P K \ ~ 0 AWARD SALE OF BONDS - G.O. STORM SEWER REVENUE BONDS, SERIES 1999C, G.O. REVOLVING IMPROVEMENT FUND BONDS, SERIES 1999D AND TAXABLE G.O. HOUSING IMPROVEMENT AREA BONDS, SERIES 1999B Proposed Action Staff recommends approval of the following motion: Approve resolution No. 99-063 awarding the sale of $2,565,000 Taxable General Obligation Bonds for the Westbrooke Patio Homes Housing Improvement Area, resolution No. 99-064 awarding the sale of $1.545,000 General Obligation Storm Sewer Revenue Bonds for the capital improvements in the Storm Sewer fund and resolution No. 99-065 awarding the sale of $850,000 General Obligation PIR Bonds for capital improvements in the Permanent Improvement fund. With this motion, the sale of the bonds will be awarded based on the recommendation of Ehlers and Associates, Inc., financial advisor for this project. Overview Housing Improvement Bonds: The City of Hopkins has the authority to establish housing improvement areas under the Housing Improvement Act (1994 Minnesota Laws, Chapter 587, Article 9, Section 22 through 31). Within a housing improvement area, the City can sell bonds to pay for various improvements to individual housing units and common areas. Those bonds are then repaid through fees imposed on the owners of the units. 0 The City has held the necessary public hearings and has authorized the creation of the Westbrooke Patio Homes Housing Improvement Area and established the fees. An executed development agreement between the Association and the City requires the City to sell bonds before September 1, 1999, subject to unavoidable delays and the City's ability to issue the Bonds under existing market conditions. Storm Sewer Revenue Bonds: The City of Hopkins has the authority to issue revenue bonds to pay for any utility or other public convenience from which a revenue is or may be derived. The current and future projects in the storm sewer fund qualify for bond issuance. In order to pay for the bonds the storm sewer rate was increased in 1999 to generate an additional $150,000 in revenues each year. The bonds being issued will pay for projects approved in 1999 and those listed in the preliminary capital improvement plan for the year 2000 and 2001, for a total of approximately $1,660,500. The current Storm Sewer rate should be sufficient to maintain operating expenses and pay for principal and interest on the new bonds. Revolving Improvement Bonds: The City of Hopkins has the authority to issue Permanent Improvement Revolving fund bonds to pay for any improvement of which the cost is to be partially assessed. The assessment of $170,573 for the street improvement project #98-09 exceeds the 20% threshold required for the issuance of bonds. The P .I.R. fund will have a negative working capital balance within one year unless we issue these bonds. The last time the city issued improvement bonds was in 1992. The current debt levy of $330,000 along with the assessments collected should be sufficient to pay for the principal and interest of the new bonds. At the June 15th, 1999 Council Meeting, the Council authorized the sale of bonds for the Westbrooke Patio Homes Housing Improvement Area project, the Storm Sewer Revenue capital improvements projects and the Permanent Improvement Revolving fund capital improvement projects. The bids will be accepted until 11 :00 am on July 20, 1999 at which time they will be reviewed and the recommendation incorporated into Resolution d 99-063,99-064, and 99-065 respectively. - --- -- - ------ - ------ ----------- ------------- Primary Issues to Consider 0 At this time, there do not appear to be any primary issues relating to the award of the bond sales. Any significant issues affecting the sale will not be known until after the closing of the bids on July 20th, 1999. Supporting Information Resolution No. 99-050 Official Statement ~i~ Finance Director 0 d ------- ---- -----------~--~------~~---~---~----- ~-------- . 0 RESOLUTION NO. 99- 063 A RESOLUTION AWARDING THE SALE OF $2,565,000 TAXABLE GENERAL OBLIGATION HOUSING IMPROVEMENT AREA BONDS SERIES 1999B; 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 Hopkins, Hennepin County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01. The proposal of (Purchaser) to purchase $2,565,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1999B (Bonds) of the City described in the Terms and Conditions of Issue thereof is found and determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $2,516,300 plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Maturity Interest Rate Year of Maturity Interest Rate 2002 2012 0 2003 2013 2004 2014 2005 2015 2006 2016 2007 2017 2008 2018 2009 2019 2010 2020 2011 2021 True interest cost: % 1.02. The sum of $48,700 being the amount proposed by the Purchaser in excess of $2,516,300 will be credited to the Debt Service Account in the Housing Fund hereinafter created. 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 forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.03. The City shall forthwith issue and sell the Bonds in the total principal amount of $2,565,000, originally dated August 1, 1999, in the denomination of $5,000 each or any integral 0 multiple thereof, numbered No. R-l, upward, bearing interest as above set forth, and which mature in the years and amounts as follows: SJB-164893 HP 11 0-60 - ____n___ " 0 Year of Maturitv Interest Rate Year of Maturity Interest Rate 2002 65,000 2012 $120,000 2003 70,000 2013 130,000 2004 75,000 2014 140,000 2005 80,000 2015 150,000 2006 85,000 2016 160,000 2007 90,000 2017 170,000 2008 95,000 2018 180,000 2009 100,000 2019 195,000 2010 110,000 2020 210,000 2011 115,000 2021 225,000 1.04. Ootional Redemption. The City may elect on February 1, 2009, and on any date thereafter to prepay Bonds due on or after February 1, 2010. 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 detennine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 6 hereof) of the particular amount of such maturity to be prepaid. DTC will detennine 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. All prepayments will be at a price of par plus accrued interest. 0 Section 2. Registration and Pavrnent. 2.01. Registered Fonn. The Bonds shall be issued only in fully registered fonn. 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: Interest Pavrnent 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 such Bond shall 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 such Bond will be dated as of the date of original issue. The interest on the Bonds will be payable on February 1 and August 1 of each year, commencing February 1, 2000, 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. 2.03. Registration. The City will appoint, and shall maintain, a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. 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 0 the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. SJB-164893 HPllO-60 -----------.-...---..... ~-- -- ---- ----- - 0 (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 such interest payment date. (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 any transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper 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 0 improper or unauthorized. (1) 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 such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For a tr~nsfer 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 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 a 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 of an appropriate bond or indemnity 0 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 SJB-164893 HPllO-60 -~, 0 redemption in accordance with its terms 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) not more than 60 and not less than 30 days prior to the date fIxed for redemption 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 in the manner 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 any proceeding for the redemption of Bonds. Bonds so called for redemption will cease to bear I interest after the specifIed redemption date, provided that the funds for the redemption are I on deposit with the place of payment at that time. I 2.04. Appointment of Initial Registrar. The City appoints Bankers Trust Company, Des Moines, Iowa, 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, such 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 0 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 Clerk and executed on behalf of the City by the signatures of the Mayor and the City Manager provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. In case any offIcer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such offIcer before the delivery of any Bond, such 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 each 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 Finance Director shall 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. 0 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed defmitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon SJB-164893 HP 11 0-60 __ _~_~o _________ -------- 0 the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed in substantially the following form: Face of the Bond UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF HOPKINS TAXABLE GENERAL OBLIGATION HOUSING IMPROVEMENT AREA BONDS SERIES 1999B Date of Rate Maturitv Original Issue CUSIP February 1, May 1,1999 0 No. $ Registered Owner: Cede & Co. The City of Hopkins, Minnesota, a dilly organized and existing municipal corporation in Hennepin County, Minnesota (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 February 1, 2000, 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 Bankers Trust Company, Des Moines, Iowa, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and filll 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, 2009, and on any date thereafter to prepay Bonds due on 0 or after February 1, 2010. 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 defmed in Section 6 hereof) of the particillar amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest SJB-164893 HPll 0-60 ~~~ ~-~- - ------- 0 in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments will be at a price of par plus accrued interest. Additional provisions of this Bond contained on the reverse hereof have the same effect as though fully set forth in this place. 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 Hopkins, Hennepin 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: CITY OF HOPKINS, MINNESOTA City Manager Mayor 0 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. BANKERS TRUST COMPANY Des Moines, Iowa By Authorized Representative . Reverse of the Bond This Bond is one of an issue in the aggregate principal amount of $2,565,000 all of like original issue date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a resolution adopted by the City Council on July 20, 1999 (the Resolution), for the purpose of providing money to aid in financing various housing improvements within a housing improvement area in the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 475, 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 31, and the principal hereof and interest hereon are payable primarily from certain housing improvement fees levied or to be levied on property within the housing improvement area in which the housing improvements are located, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. 0 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 ad valorem taxes on all taxable property in the City in the event of any deficiency in revenues pledged, which taxes may be levied without limitation as to rate or SJB-164893 HPllO-60 -- - - ---- 0 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. 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 shall 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 Constitution and laws of the State of Minnesota and the City's home rule charter to be done, to exist, to happen and to be performed preliminary to and in the 0 issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. 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 applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Cust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act. . . . . . . . . . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. 0 SJB-164893 HPllO-60 0 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: 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 0 such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee 0 3.02. The City Clerk shall obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which shall be complete except as to dating thereof and shall cause the opinion to be printed on or accompany each Bond. SJB-164893 HPllQ-60 ~-- 0 Section 4. Pavment: Securitv: Pledges and Covenants. 4.01. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds, and to make adequate and specific security to the purchasers and holders of the Bonds from time to time, there is hereby created a separate special fund of the City to be known as the Housing hnprovement Area No.2, Phase II Fund (Housing Fund), which fund will be continued and maintained as a penuanent fund of the City until all the Bonds are paid. Within the Housing Fund there will be established and maintained separate accounts as follows: (a) Proiect Account, into which account will be paid proceeds of the Bonds in the amount of $2,358,690. Upon issuance of the Bonds, the City shall also deposit into the Project Account (i) prepaid Phase II housing improvement fees (Housing Fees) in the amount of $662,810, which Housing Fees are levied on property within Housing hnprovement Area No. 2 pursuant to City Council Resolution No. 99-005, adopted February 16, 1999 (the Fee Resolution), and were prepaid pursuant to the Fee Resolution, and (ii) the amount of $164,000 transferred from the special reserve account established for the City's $1,700,000 Taxable General Obligation Housing hnprovement Area Bonds, Series 1997B. Moneys in the Project Account shall be disbursed to pay the cost of Phase II housing improvements in Housing hnprovement Area No.2, in accordance with the tenus of the Development Agreement between the City and Westbrooke Patio Homes Association, Inc., dated as of April 20, 1999 (the Development Agreement). 0 (b) Administrative Account, into which account will be paid proceeds of the Bonds in the amount of $100,480, which amount will be used solely for the purpose of paying administrative costs in connection with Housing hnprovement Area No. 2 and costs of issuance of the Bonds. Of that amount, $10,000 shall be credited to the City upon issuance of the Bonds as reimbursement for internal City administrative expenses. The City authorizes the Purchaser to forward amounts in the Administrative Account allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to Resource Bank & Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's financial adviser, Ehlers and Associates, Inc. Any other administrative costs shall be disbursed upon presentation to the City of proper invoices for such costs. Any balance remaining in the Administrative Account after all disbursements for administrative and issuance expenses shall be transferred to the Project Account (c) Debt Service Account, into which account will be deposited from Bond proceeds capitalized interest through February 1, 2000, any amount over the minimum purchase price of the Bonds paid by the Purchaser, and all accrued interest paid by the Purchaser upon delivery of the Bonds, together with Housing Fees in the amount necessary to pay when due the principal, interest and redemption premium, if any, on the Bonds. - (d) Special Reserve Account, into which will be deposited proceeds of the Bonds in 0 the amount of $20,000. Amounts in the Special Reserve Fund shall be deposited in accordance with the tenus of the Use Agreement. SJB-164893 HPllO-60 - ----------- 0 (e) Surolus Account, into which account will be deposited all Housing Fees in excess of the amounts required to be deposited into the Debt Service Account and the Project Account under this Section. Amounts in the Surplus Account shall be applied and disbursed in accordance with the Development Agreement. 4.02. Money in the funds and accounts created by this Resolution will be kept separate from other municipal funds and deposited only in a bank or banks which are members of the Federal Deposit Insurance Corporation (FDIC). Deposits which cause the aggregate deposits of the City in anyone bank to be in excess of the amount insured by FDIC must be continuously secured in the manner provided by law for the investment of municipal funds. Income derived from investments of funds in the Project Account and the Debt Service Account will be credited to the respective fund from which the interest was derived. Income derived from investment of funds in all other accounts established under this resolution will be conditional to the Surplus Account. 4.03. The City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City has caused or will cause the Housing Fees for the Phase II housing improvements in Housing Improvement Area No. 2 to be promptly levied against housing units in such area so that the first installment will be collectible not later than 2000 and will take all steps necessary to assure prompt collection. The City Council will cause to be taken with due diligence all further actions that are required under the Development Agreement 0 for the construction of the housing improvements financed wholly or partly from the proceeds of the Bonds, and will take all further actions necessary for the final and valid levy of the Housing Fees and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in Housing Fees (after taking into account any revenues collected or anticipated to be collected under the Development Agreement), the City Council will levy ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing: receipts and disbursements in connection with the housing improvements, Housing Fees levied therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, and monies on hand. 4.04. It is hereby determined that the estimated collections of Fee Revenues for the payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.05. The City Clerk is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager and to obtain the certificate required by Minnesota 0 Statutes, Section 475.63. Section 5. Authentication of Transcript. SJB-164893 HPllO-60 I - __I -------~-- 0 5.01. 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, shall be deemed representations of the City as to the facts stated therein. 5.02. 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. Section 6. Book-Entry Svstem; Limited Obligation of Citv. 6.01. 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 1.03 hereof. Upon initial issuance, the ownership of each such Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the 0 name of Cede & Co., as nominee of DTC. 6.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond 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 Bond 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, or any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond 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 Bond 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 Bond 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 0 person other than a registered owner of Bonds, as shown in the registration books kept by the Bond 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., and the words "Cede & Co.," will refer to such SJB-164893 HPllO-60 ~ , 0 new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 6.03. Revresentation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond 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 Bond Registrar and Paying Agent, respectively, to at all times be complied with. 6.04. 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 interest 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 Bond 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. 0 6.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bond and all notices with respect to such Bond will be made and given, respectively in the manner provided in the Representation Letter. Section 7. Continuing Disclosure. 7.01. 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, and 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. 7.02. "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. 0 SJB-164893 HPll 0-60 ------- : , 0 Passed and adopted this 20th day of July, 1999. CITY OF HOPKINS, MINNESOTA Mayor Attest: City Clerk 0 0 SJB-164893 HPllO-60 . . , 0 The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof: ell and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 0 0 SJB-164893 HPllO-60 , , . 0 STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF HOPKINS ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Hopkins, Hennepin County, 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 the City held on July 20, 1999, 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 $2,565,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1999B of the City. WITNESS My hand officially as such City Clerk and the corporate seal of the City this day of , 1999. 0 City Clerk Hopkins, Minnesota (SEAL) 0 SJB-164893 HPllO-60 , , . 0 STATE OF MINNESOTA TAXPAYER SERVICES DMSION MANAGER'S CERTIFICATE AS TO COUNTY OF HENNEPIN REGISTRATION WHERE NO AD VALOREM TAX LEVY I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Hopkins, Minnesota, on July 20, 1999, relating to Taxable General Obligation Housing Improvement Area Bonds, Series 1999B, in the amount of $2,565,000, dated August 1, 1999, has been ftled in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this _ day of ,1999. 0 Taxpayer Services Division Manager Hennepin County, Minnesota (SEAL) By Deputy 8 SJB-164893 HPllO-60 -------.- <' 0 After due consideration of the proposals, Member then introduced the following written resolution, the reading of which had been dispensed with by unanimous consent, and moved its adoption: RESOLUTION NO. 99-064 A RESOLUTION AWARDING THE SALE OF $1,545,000 GENERAL OBUGATION STORM SEWER REVENUE BONDS, SERlES 1999C; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELNERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Hopkins, Hennepin County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01. The proposal of (Purchaser) to purchase $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C (Bonds) of the City described in the Terms and Conditions of Issue thereof is found and determined to be a reasonable 0 offer and is accepted, the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Maturity Interest Rate Year of Maturity Interest Rate 2000 2008 2001 2009 2002 2010 2003 2011 2004 2012 2005 2013 2006 2014 2007 2015 True interest cost: 1.02. The sum of $25,150 being the amount proposed by the Purchaser in excess of $1,519,850 will be credited to the Debt Service Fund hereinafter: created. The City Finance Director is directed to deposit 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 forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.03. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes, Section 444.075 (Act), in the total principal amount of $1,545,000, originally dated August 1, 1999, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-l, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: 0 SJB-164956 HPll0-60 ------~~- 0 Year Amount Year Amount 2000 $55,000 2008 $100,000 2001 70,000 2009 100,000 2002 75,000 2010 105,000 2003 80,000 2011 110,000 2004 80,000 2012 115,000 2005 85,000 2013 120,000 2006 90,000 2014 130,000 2007 95,000 2015 135,000 1.04. Optional Redemption. The City may elect on February 1, 2007, and on any day thereafter to prepay Bonds due on or after February 1, 2008. 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 defmed 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. 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 0 check or draft issued by the Registrar described herein. 2.02. Dates: Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case such 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 such Bond will be dated as of the date of original issue. The interest on the Bonds will be payable on February 1 and August 1 of each year, commencing February 1, 2000, 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. 2.03. Registration. The City will appoint, .and will maintain, a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registrati,on 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 0 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. SJB-164956 HP 11 0-60 ',~ 0 (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) Improper 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. (t) 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 0 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 a 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 ftling 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 terms 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 frrst class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption 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 0 with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints Bankers Trust Company, Des Moines, Iowa, as the initial Registrar. The Mayor and the City Manager are authorized to execute SJB-164956 HP 11 0-60 0 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 City 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 Clerk and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, the 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 Finance Director will deliver the same to the 0 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 defmitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of defmitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: [Face of the Bond] No. R-_ UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF HOPKINS GENERAL OBUGATION STORM SEWER REVENUE BOND, SERIES 1999C Date of Rate Maturitv Original Issue CUSIP August 1,1999 0 Registered Owner: Cede & CO. SID-164956 HP 11 0-60 0 The City of Hopkins, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (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 February 1, 2000, 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 Bankers Trust Company, Des Moines, Iowa, 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, 2007, and on any day thereafter to prepay Bonds due on or after February 1, 2008. 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 detennine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Securities Trust Company (DTC) of the particular amount of such maturity to be prepaid. DTC will detennine 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. 0 The City Council has designated the Bonds 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 fmancial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. Additional provisions of this Bond contained on the reverse hereof have the same effect as though fully set forth in this place. 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 Hopkins, Hennepin 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: CITY OF HOPKINS, MINNESOTA (facsimile) (facsimile ) City Manager Mayor 0 SJB-164956 HPllO-60 - -~---~~-- 0 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. BANKERS TRUST COMPANY By Authorized Representative [Reverse of the Bond] This Bond is one of an issue in the aggregate principal amount of $1,545,000 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 July 20, 1999 (the Resolution), for the purpose of providing money to aid in fmancing various improvements to the stonn sewer system of the City, pursuant to and in full confonnity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 444.075 and Chapter 475 and the principal hereof and interest hereon are payable primarily from the net revenues of the stonn sewer system of the City in a special debt service fund of the City, 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 0 Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in net revenues pledged, which 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. IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution, the City has covenanted and agreed that it will continue to own and operate the stonn sewer system free from competition by other like utilities; that adequate insurance on said plant and system and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and disbursements -relating to the Stonn Sewer Fund, into which it will pay all of the gross revenues from the stonn sewer system; that it will also create and maintain a General Obligation Stonn Sewer Revenue Bonds, Series 1999C Debt Service Fund, into which it will pay, out of the net revenues from the stonn sewer system a sum sufficient to pay principal hereof and interest thereon when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net stonn sewer system revenues. 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. 0 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. SJB-164956 HPllO-60 ___ - - __ ___ ___n _____ - - ---------- --~~---- 0 IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City 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, 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. 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 UNIF GIFT MIN ACT _ Custodian in common (Cust) (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors IT TEN -- as joint tenants with right of survivorship and Act............ . not as tenants in common (State) 0 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 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 fmancial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, me. Medallion Signatures Program ("MSP") or other 0 such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. SJB-164956 HPllO-60 0 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 this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. 0 Date of Registration Signature of Registered Owner Officer of Registrar Cede & Co. Federal ID #13-2555119 3.02. The City Clerk will obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which will be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Payment: Security: Pledges and Covenants. 4.01. The City will create and continue to operate its Storm Sewer Fund to which will be credited all gross revenues of the storm sewer system described in the resolution authorizing the sale of the Bonds and out of which will be paid all normal and reasonable expenses of current operations of the storm sewer system. Any balances therein are deemed net revenues and will be transferred, from time to time, to a General Obligation Storm Sewer Revenue Bonds, Series 1999C Debt Service Fund (Debt Service Fund) hereby created in the Storm Sewer Fund, which fund will be used only to pay principal of and interest on the Bonds and any other bonds similarly authorized. There will always be retained in the Debt Service Fund a sufficient amount to pay principal of and interest on all the Bonds, and the City Finance Director must report any current or anticipated deficiency in the Debt Service Fund to the City Council. There is appropriated to the Debt Service Fund all capitalized interest fmanced from Bond proceeds, if any, any amount over the minimum purchase price of the Bonds paid by the Purchaser and all accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 0 4.02. The City Council covenants and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: SJB-164956 HP 11 0-60 0 (a) The City will continue to maintain and efficiently operate the storm sewer system as public utilities and conveniences free from competition of other like utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the storm sewer system accounts as hereinabove provided. and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain the Debt Service Fund as a separate account in the Storm Sewer Fund and will cause money to be credited thereto from time to time, out of net revenues from the storm sewer plant and system in sums sufficient to pay principal of and interest on the Bonds when due. (c) The City will keep and maintain proper and adequate bQoks of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the storm sewer system and which will be open to inspection and copying by any bond holder, or the holder's agent or attorney. at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all bondholders upon request (d) The City Council will cause persons handling revenues of the storm sewer system to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account of the operations of the storm sewer system to be deposited in a bank whose deposits are guaranteed under the Federal 0 Deposit Insurance Law. (e) The Council will keep the storm sewer system insured at all times against loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for like plants, to protect the holders. from time to time. of the Bonds and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss. (t) The City and each and all of its officers will punctually perform all duties with reference to the storm sewer system as required by law. (g) The City will impose and collect charges of the nature authorized by Minnesota Statutes, section 444.075 at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Bonds and to create and maintain such reserves securing said payments as may be provided in this resolution. (h) The City Council wi1l1evy general ad valorem taxes on all taxable property in the City. when required to meet any deficiency in net revenpes. 4.03. It is hereby determined that the estimated collection of net revenues for the payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.04. The City Clerk is authorized and directed to ftle a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Minnesota Statutes. Section 475.63. 0 Section 5. Authentication of Transcript. SJB-164956 HP 11 0-60 0 5.01. 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 fmancial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 5.02. 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. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to Resource Bank & Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's fmancial adviser, Ehlers and Associates, Inc. Section 6. Tax Covenant. 6.01. 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 0 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. 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. 6.03. 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. 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 defmed 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; (c) the reasonably anticipated amount of tax-exempt obligations (other than 0 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 1999 will not exceed $10,000,000; and SJB-164956 HPllO-60 0 (d) not more than $10,000,000 of obligations issued by the City during calendar year 1999 have been designated for purposes of Section 265(b)(3) of the Code. 6.05. 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 System: Limited Obligation of City. 7.01. 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 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 7.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond 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 (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 0 registration books kept by the Bond 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 Bond 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 Bond 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 Bond 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 Bond 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 Bond Registrar and Paying Agent. '. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which will govern payment of principal of, premium, if any, and interest on the Bonds and noatices with respect to the Bonds. Any Paying Agent or Bond 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 Bond Registrar and Paying Agent, respectively, to be complied with at all times. 0 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 interest, 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 SJB-164956 HP110-60 0 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 Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and 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. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 8.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure 0 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. Passed and adopted this 20th day of July, 1999. CITY OF HOPKINS, MINNESOTA Mayor ATIEST: City Clerk 0 SJB-164956 HPUQ-60 -- - --- - - ---- ----- --- --- - ------ -----~-- -~------ . . '0 The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 0 0 SJB-164956 HPllO-60 ----- --~- - ----- -- -------~---~~~------ . ' 0, STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF HOPKINS ) I, the undersigned, being the du1y qualified and acting City Clerk of the City of Hopkins, Hennepin County, 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 the City held on Tuesday, Iu1y 20, 1999 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 $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C of the City. WITNESS My hand officially as such City Clerk and the corporate seal of the City this _ day of , 1999. 0 City Clerk Hopkins, Minnesota (SEAL) 0 SJB-164956 HPll0-60 -------~-- 0 After due consideration of the proposals, Member then introduced the following written resolution and moved its adoption, the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 99-065 A RESOLUTION AWARDING THE SALE OF $850,000 PERMANENT IMPROVEMENT REVOLVING FUND BONDS, Series 1999D; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELNERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Hopkins, Hennepin County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01. The proposal of (Purchaser) to 0 purchase $850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D (Bonds) of the City described in the Official Terms and Conditions of Issue thereof 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 $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Year of Interest Maturity Rate Maturity Rate 2001 2006 2002 2007 2003 2008 2004 2009 2005 2010 True interest cost: 1.02. The sum of $11,900 being the amount proposed by the Purchaser in excess of $838,100 will be credited to the Debt Service Fund hereinafter created. The City 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 forthwith. The Mayor and 0 City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.03. The City will forthwith issue and sell the Bonds in the total principal amount of $850,000, originally dated August 1, 1999, in the denomination of $5,000 each or any integral SJB-164892 HPllO-60 -------- - ---- - ------------- 0 multiple thereof, numbered No. R-l, upward, bearing interest as above set forth, and which mature serially on February 1 in the years and amounts as follows: Year Amount Year Amount 2001 $70,000 2006 $85,000 2002 70,000 2007 90,000 2003 75,000 2008 95,000 2004 80,000 2009 100,000 2005 80,000 2010 105,000 1.04. Optional Redemption. The City may elect on February 1, 2006 and on any interest payment date thereafter to prepay Bonds maturing on or after February 1, 2007. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, 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 payments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Form. The Bonds shall be issued only in fully registered form. The 0 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; Interest Pavrnent 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 such Bond shall 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 such 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 February 1, 2000, 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. 2.03. Registration. The City will appoint, and shall maintain, a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust offIce a bond register in which the Registrar provides fl)r the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. 0 (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 SJB-164892 HPll0-60 0 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. 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 any transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper 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. (1) Persons Deemed Owners. The City and the Registrar may treat the person in 0 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 registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. For a 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 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 a 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 of 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 0 City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. SJB-164892 HPllO-60 0 (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 ftrst class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date ftxed for redemption 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 in the manner 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 any proceeding for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specifted redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints Bankers Trust Company, Des Moines, Iowa, 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, such 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 0 order of this Council, the Finance Director must transmit to the Registrar moneys sufftcient 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 Clerk and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. In case any offtcer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, such signature or facsimile will nevertheless be valid and sufftcient for all purposes, the same as if the offtcer had remained in offtce until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or beneftt under this Resolution unless and until a certiftcate of authentication on the Bond has been dilly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the Finance Director shall 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 defmitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such 0 changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of defmitive Bonds the temporary Bonds will be exchanged therefor and cancelled. SJB-164892 HPllO-60 __ ________n___ --------~-- 0 Section 3. Form of Bond. 3.01. The Bonds will be printed in substantially the following form: [Face of the Bond] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF HOPKINS GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BOND, SERIES 1999D Date of Rate Maturity Original Issue CUSIP August I, 1999 No. $ 0 Registered Owner: Cede & Co. The City of Hopkins, Minnesota. a duly organized and existing municipal corporation in Hennepin County, Minnesota (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, com- mencing February I, 2000, to the person in whose name this Bond is registered at the close of business on the ftfteenth 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 Bankers Trust Company, Des Moines, Iowa. 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 I, 2006, and on any interest payment date thereafter, to prepay Bonds of this issue maturing on or after February I, 2007. Redemption may be in whole or in part of the Bonds subject to prepayment. IT redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. IT 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 0 the Registrar. All prepayments shall be at a price of par plus accrued interest. The City Council has designated the Bonds as "qualified tax exempt obligations" withiIi the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the Code) SJB-164892 HPllO-60 0 relating to disallowance of interest expense for fmancial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. Additional provisions of this Bond are contained on the reverse hereof and such provisions for all purposes have the same effect as though fully set forth in this place. 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 Hopkins, Hennepin 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: CITY OF HOPKlNS, MINNESOTA (Facsimile ) City Manager Mayor 0 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. BANKERS TRUST COMPANY By Authorized Representative [Reverse of the Bond] This Bond is one of an issue in the aggregate principal amount of $850,000 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 July 20, 1999 (the Resolu- tion), for the purpose of providing money for the Permanent Improvement Revolving Fund of the City as authorized by Section 7.14, Subd. 2 of the City's home rule charter, to fmance certain assessable local improvements, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, and the City's home rule charter, and the principal hereof and interest hereon are payable primarily from special assessments against property specially benefited by local improvements and 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 0 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 special assessments pledged, which 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. SJB-164892 HPll0-60 --- --- -------- 0 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 Constitution and laws of the State of Minnesota, and the City's home rule charter to be done, to exist, to happen and to be performed preliminary to and in 0 the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. City Clerk 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 applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Cust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors IT TEN -- as joint tenants with right of survivorship and Act. . . . . . . . . . . . not as tenants in common (State) 0 Additional abbreviations may also be used though not in the above list. SJB-164892 HPllO-60 - 0 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: 0 NOTICE: Signature(s) must be guaranteed by a [mandal 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, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee 0 3.02. The City Clerk is directed to obtain a copy of the proposed approving legal opinion of Holmes & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond. SJB-164892 HPll0-60 -- ----------------- ----------------- --- -- -----~-- -------------- 0 Section 4. Payment: Security: Pledges and Covenants. 4.0l. The Bonds are payable from the General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D Debt Service Fund (Debt Service Fund) hereby created within the Permanent Improvement Revolving Fund. The proceeds of general taxes hereinafter levied (Taxes), and special assessments (Assessments) levied or to be levied for the improvements (hnprovements) financed by the Bonds are hereby pledged to the Debt Service Fund. If any payment of principal or interest on the Bonds shall become due when there is not sufficient money in the Debt Service Fund to pay the same, the Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Assessments and Taxes when collected. There is appropriated to the Debt Service Fund all capitalized interest fmanced from Bond proceeds, if any, any amount over the minimum purchase price paid by the Purchaser and the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 4.02. For the purpose of paying the principal and interest on the Bonds, there is levied a direct annual irrepealable ad valorem tax (Taxes) upon all of the taxable property in the City, which shall 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 follows (year stated being year of levy for collection in the following year): 0 (See Attachment A) 4.03. It is hereby determined that the estimated collections of Assessments and 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 the City Clerk annually, at the time the City makes its tax levies, may 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 will thereupon reduce the levy collectible during such year by the amount so certified. 4.04. The City Clerk is authorized and directed to file a certified copy of this resolution with the Director of Property Taxation of Hennepin County and to obtain the certificate required by Minnesota Statutes, Section 475.63. Section 5. Authentication of Transcript. 5.01. 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 fmancial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge 0 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, may be deemed representations of the City as to the facts stated therein. SJB-164892 HPll0-60 ------------------~ 0 5.02. 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. Section 6. Tax Covenant 6.0l. 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. 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. 0 6.03. 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. 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 defmed in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than any private activity bonds other than qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 1999 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 1999 have been designated for purposes of Section 265(b )(3) of the Code. 0 SJB-164892 HPll0-60 -- -- ~---.--~--------- , 0 6.05. 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. Passed and adopted this 20th day of July, 1999. CITY OF HOPKINS, MINNESOTA By Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor 0 thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 0 SJB-164892 HPllO-60 -~- ~- ~-~~ -~ , 0 STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF HOPKINS ) I, the undersigned, being the dilly qualified and acting City Clerk of the City of Hopkins, Hennepin County, 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 the City held on July 20, 1999 with the original minutes on me 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 $850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D of the City. WITNESS My hand officially as such City Clerk and the corporate seal of the City this day of , 1999. 0 City Clerk City of Hopkins, Minnesota (SEAL) 0 SJB-164892 HPllO-60 0 COMMON PROVISIONS RA TING I General obligation debt of the City is currently rated as followed: Moody's Standard Investors Service & Poor's $1,700,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1997B, dated May 15, 1997 (insured by "Aaa" liMA'. Financial Security Assurance) ("A-I" underlying) ("A+" underlying) I $1,465,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1999A "A-I" "A+" The City has requested a rating on this issue from Moody's Investors Service and Standard & Poor's and bidders will be notified as to the assigned ratings prior to the sale. Such ratings, if and when received, will reflect only the view of the rating agencies and any explanation of the significance of such ratings may only be obtained from Moody's Investors Service and Standard & Poor's. There is no assurance that such ratings, if and when received, will continue for any period of time or that the ratings will not be revised or withdrawn. Any revision or withdrawal of the ratings may have an effect on the market price of the Issues. 0 TAX EXEMPTION In the opinion of Bond Counsel, under existing statutes, regulations, rulings and decisions, interest on the Series 1999C Bonds and the Series 1999D Bonds (collectively the "Tax-Exempt Bonds") is not includible in the "gross income" of the owners thereof for purposes of federal income taxation and is not includable in taxable net income of individuals, estates or trusts for purposes of State of Minnesota income taxation, but is subject to State of Minnesota franchise taxes measured by income that are imposed upon corporations, including financial institutions. Noncompliance following the issuance of the Tax-Exempt Bonds with certain requirements of the Code and covenants of the bond resolution may result in the inclusion of interest on the Tax-Exempt Bonds in gross income (for federal tax purposes) and taxable net income (for State of Minnesota tax purposes) of the owners thereof. No provision has been made for redemption of the Tax-Exempt Bonds, or for an increase in the interest rate on the Tax- Exempt Bonds, in the event that interest on the Tax-Exempt Bonds becomes subject to United States or State of Minnesota income taxation. The Code imposes an alternative minimum tax with respect to individuals and corporations on alternative minimum taxable income. Interest on the Tax-Exempt Bonds will not be treated as a preference item in calculating alternative minimum taxable income. The Code provides, however, that a portion of the adjusted current earnings of a corporation not otherwise included in the minimum tax base would be included for purposes of calculating the alternative minimum tax that may be imposed with respect to corporations. Adjusted current earnings include income received that is otherwise exempt from taxation such as interest on the Tax-Exempt Bonds. The Code provides that in the case of an insurance company subject to the tax imposed by Section 831 of the Code, 0 the amount which otherwise would be taken into account as "losses incurred" under Section 832(b)(5) shall be reduced by an amount equal to 15% of the interest on the Tax-Exempt Bonds that is received or accrued during the taxable year. 20 $850,000 GENERAL OBLIGATION 0 PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 1999D AUTHORITY; PURPOSE The Series 1999D Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, and the City Charter, to finance 1999 alley and street improvement projects undertaken through the City's Permanent Improvement Revolving Fund. SOURCES AND USES i Sources Par Amount of Bonds $850.000 Total Sources $850,000 Uses Project Costs $803,000 Discount Allowance 11,900 Finance Related Expenses 15,140 Capitalized Interest 19.960 0 Total Uses $850,000 SECURITY The Series 1999D Bonds will be general obligations of the City for which the City will pledge its full faith, credit and taxing powers, together with special assessments. Receipt of special assessments levied over a period of 10 years against specially benefitted properties in the amount of$170,573, plus interest at an estimated rate of 8.00% collected on the unpaid balance from year to year, and ad valorem taxes will be sufficient to provide not less than 105% of principal and interest on the Bonds as required by Minnesota law. QUALIFIED TAX-EXEMPT OBLIGATIONS Immediately prior to the adoption of the Code, financial institutions were generally pennitted to deduct 80% of their interest expenses allocable to tax-exempt bonds. Under the Code, however, financial institutions are generally not entitled to such a deduction for tax~exempt bonds purchased after August 7, 1986. However, the City will designate the Series 1999D Bonds as qualified tax-exempt obligations pursuant to section 265(b)(3) of the Code, which would permit financial institutions to deduct interest expenses allocable to the Series 1999D Bonds to the extent pennitted for tax-exempt bonds acquired on August 7, 1986. 0 19 i 0 $1,545,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1999C AUTHORITY; PURPOSE The Series 1999C Bonds are being issued pursuant to Minnesota Statutes, Section 444.075 and Chapter 475, to finance current and planned improvements to the municipal storm water management system. SOURCES AND USES Sources Par Amount of Bonds $1.545.000 Total Sources $1,545,000 Uses Project Costs $1,500,000 Discount Allowance 25,150 Finance Related Expenses 19.850 Total Uses $1,545,000 0 SECURITY The Series 1999C Bonds are general obligations of the City for which its full faith, credit and taxing powers are pledged, together with net revenues of the municipal storm sewer utility. The City anticipates that net revenues of the municipal storm sewer utility will be sufficient to pay 105% of debt service on the Series 1999C Bonds. Should the revenues pledged for payment of the Bonds be insufficient to pay the principal and interest as the same shall become due, the City is required to pay maturing principal and interest from moneys on hand in any other fund of the City not pledged for another purpose and/or to levy a tax for this purpose upon all the taxable property in the City, without limitation as to rate or amount. QUALIFIED TAX~EXEMPT OBLIGATIONS Immediately prior to the adoption of the Internal Revenue Code of 1986, as amended (the "Code"), financial institutions were generally permitted to deduct 80% of their interest expenses allocable to tax-exempt bonds. Under the Code, however, financial institutions are generally not entitled to such a deduction for tax-exempt bonds purchased after August 7, 1986. However, the City will designate the Series 1999C Bonds as qualified tax-exempt obligations pursuant to section 265(b )(3) of the Code, which would permit financial institutions to deduct interest expenses allocable to the Series 1999C Bonds to the extent permitted for tax-exempt bonds acquired on August 7, 1986. 0 18 The City allowed the total fee for each housing unit to be prepaid in full or in part until July 3, 1999. All units not exercising the ability to prepay will pay fees on an annual basis. The annual fee for each unit represents the payment 0 of the total fee plus interest in equal annual installments over a 20-year period. The rate of interest used to determine the annual fee will be equal to the average interest rate on the Series 1999B Bonds plus an amount needed to produce total fee revenue collected from all units in each year that equals 105% of the average annual debt service on the Series 1999B Bonds. The interest rate on the annual fees will be set based on the results of sale. NOT QUALIFIED TAX-EXEMPT OBLIGATIONS The City will NOT designate the Series 1999B Bonds as qualified tax-exempt obligations" pursuant to Section 265 of the Internal Revenue Code of 1986, as amended, which permits financial institutions to deduct interest expense allocable to the Series 1999B Bonds to the extent permitted under prior law. 0 0 17 0 INTRODUCTION $2,565,000 TAXABLE GENERAL OBLIGATION IMPROVEMENT AREA BONDS, SERIES 1999B AUTHORITY; PURPOSE The Series 1999B Bonds are being issued pursuant to 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 33, and Minnesota Statues, Chapter 475, to finance the second phase of improvements to be undertaken in the City's Housing Improvement Area No.2 (the "Area") for the Westbrooke Patio Homes. The ordinance establishing the Area was amended by the City Council to authorize these improvements on February 16, 1999. On April 6, 1999, the City Council approved an agreement with the Westbrooke Patio Home Condominium Association to provide funds to make the following improvements: c Rebuild streets and drives c Add curb, gutter and sidewalks c Correct site drainage c Rebuild retaining walls c Replace siding and doors and related improvements 0 SOURCES AND USES Sources Par Amount of Bonds $2,565,000 Prepaid Fees 826.810 Total Sources $3,391,810 Uses Project Costs $3,215,500 Discount Allowance 48,700 Finance Related Expenses 41,780 Capitalized Interest 85.830 Total Uses $3,391,810 SECURITY The Series 1999B Bonds are general obligations of the City for which its full faith, credit and taxing powers are pledged without limitation as to rate or amount. Revenue to pay debt service on the Series 1999B Bonds will come from the fees imposed upon housing units in the Area. On February 16, 1999, the City Council adopted the resolution imposing the fees and the statutory period to petition for veto of the fee resolution has lapsed. The fees will be levied 0 in 1999 for initial collection with taxes payable in 2000. The fees will be payable annually through 2019. 16 Information for bidders and proposal forms may be obtained from the undersigned or from the City's Financial Advisor, Ehlers & Associates, Inc.,3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, Telephone (651) 0 697-8500. The City reserves the right to reject any and all proposals, and to waive informalities and to adjourn the sale. BY ORDER OF THE CITY COUNCIL Terry Obermaier City Clerk City Hall 1010-lst Street Hopkins, MN 55343-7573 I If proposals are delivered to Ehlers & Associates, Inc., the good faith deposit, payable to the City, shall be retained in the offices of Ehlers & Associates, Inc. with the same effect as if delivered to the City. Alternatively, bidders may wire the good faith deposit to Resource Bank & Trust Company, Minneapolis, Minnesota, A.B.A. #09-10-0550-6 for credit to Ehlers & Associates, Inc. Bond Issue Escrow Account, #850-788-1. The City and any bidder who chooses to so wire the good faith deposit hereby agree irrevocably that Ehlers & Associates, Inc. shall be the escrow holder of the good faith deposit wired to such account subject only to these conditions and duties: 1) All income earned thereon shall be retained by the escrow holder as payment for its expenses; 2) If the proposal is not accepted, Ehlers & Associates, Inc. shall, at its expense, promptly return the good faith deposit amount to the losing bidder~ 3) If the proposal is accepted, the good faith deposit shall be returned to the purchaser at the closing~ 4) Ehlers & Associates, Inc. shall bear all costs of maintaining the escrow account and returning the funds to the bidder~ 5) Ehlers 0 & Associates, Inc. shall not be an insurer of the good faith deposit amount and shall have no liability hereunder except if it willfully fails to perform, or recklessly disregards, its duties specified herein~ and 6) FDIC insurance on deposits within the escrow account shall be limited to $100,000 per bidder. 0 15 - 0 A ward The Series 19990 Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true Interest Cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Series 19990 Bonds will be awarded by lot. No oral proposal will be considered, and the City reserves the right to reject any and all proposals and to waive any informality in any proposal. Bond Insurance If the Series 19990 Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole option and expense of the purchaser of the Series 19990 Bonds. Any cost for such insurance policy is to be paid by the purchaser, except that, if the Issuer requested and received a rating on the Series 19990 Bonds from a rating agency, the Issuer will pay that rating fee. Any rating agency fees not requested by the issuer are the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after the bonds are awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Series 19990 Bonds. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the Series 19990 Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the purchaser, if the purchaser waives any delay in delivery occasioned thereby. 0 Information From Purchaser The successful purchaser will be required to provide, in a timely manner, certain information relating to the initial offering prices of the Series 19990 Bonds necessary to compute the yield on the bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. Oualified Tax-Exempt Obligations The City will designate the Series 19990 Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. Continuing Disclosure In order to assist the Underwriters in complying with the provisions of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 the City will enter into an undertaking (the "Undertaking") for the benefit of the holders of the Series 1999D Bonds. A description of the details and terms of the Undertaking is set forth in the Official Statement. The City has complied in aJl material respects with any undertaking previously entered into by it under the Rule. Official Statement Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the 0 proposal opening. The Syndicate Manager will be provided with 50 copies of the Final Official Statement within seven business days of the proposal acceptance. Additional copies of the Final Official Statement will be available at a cost of $10.00 per copy. 14 Legal Opinion An opinion as to the validity of the Series 1999D Bonds and the exemption from taxation of the interest thereon will 0 be furnished by Kennedy & Graven, Chartered, of Minneapolis, Minnesota, bond counsel to the City, and will accompany the Series 1999D Bonds. The legal opinion will state that the Series 1999D Bonds are valid and binding general obligations of the City enforceable in accordance with their terms, except to the extent to which enforceability may be limited by Minnesota or United States laws relating to bankruptcy, reorganization, moratorium or creditors' rights generally. Type of Proposal Proposals for not less than $838,100 plus accrued interest on the principal sum of $850,000 from date of original issue of the Series 1999D Bonds to date of delivery must be filed with the undersigned prior to the time of sale. Proposals must be submitted to Ehlers & Associates, Inc. either: 1) In a sealed envelope to Ehlers & Associates, Inc. as described herein; or 2) A facsimile submission to Ehlers & Associates, Inc., Financial Advisors, Facsimile Number: (651) 697 -8555. Proposals must be submitted to Ehlers & Associates, Inc. as described above and must be received prior to the time established above for the opening of proposals. Each proposal must be unconditional except as to legality. Neither the Issuer nor Ehlers & Associates, Inc. shall be responsible for an failure to receive a facsimile submission. A good faith deposit (the "Deposit") in the amount of $17,000, or a financial surety bond complying with the provisions below, must be submitted with each proposal. The Deposit must be in the form of a certified or cashiers 0 check, or a wire transfer of funds to Resource Bank & Trust Company, of Minneapolis, Minnesota, ABA #09-10- 0550-6 for further credit to Ehlers & Associates, Inc., Bond Issue Escrow Account #850-788-1, or a financial surety bond. The Deposit will be retained by the City as liquidated damages if the proposal is accepted and the bidder fails to comply therewith. The Deposit will be returned to the Purchaser at the closing for the Series 1999D Bonds. Proposals for the Series 1999D Bonds should be addressed to: Terry Obermaier City Clerk City Hall 1010-lst Street Hopkins, MN 55343-7573 If a financial surety bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Ehlers & Associates, Inc. prior to the opening of the proposals. Such bond must identify each bidder whose deposit is guaranteed by such financial surety bond. If the Series 1999D Bonds are awarded to a bidder using a financial surety bond, then that purchaser is required to submit its Deposit to Ehlers & Associates, Inc. in the form of a certified or cashier's check or wire transfer as instructed by Ehlers & Associates, Inc. not later than 3:00 P.M., Central Time, on the next business day following the award. If such deposit is not received by that time, the financial surety bond may be drawn by the City to satisfy the deposit requirement. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn after the time set for receiving proposals unless the meeting of the City scheduled for award of the Series 1999D Bonds is adjourned, recessed, or continued to another date without award of the Series 1999D Bonds having been made. 0 13 - -- ..._~--~ 0 Interest Payment Dates and Rates Interest will be payable on February 1 and August 1 of each year, commencing February 1, 2000, to the registered owners of the Series 1999D Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of twelve 3D-day months and will be rounded pursuant to rules of the MSRB. All bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for bonds of any subsequent maturity. Each rate must be expressed in an integral multiple of 5/1 00 or 118 of 1%. Book Entry Format The Series 1999D Bonds will be designated in the name of Cede & Co., as nominee for The Depository Trust Company (nDTcn), New York, New York. DTC will act as securities depository for the Series 1999D Bonds, and will be responsible for maintaining a book-entry system for recording the interest of its participants and the transfers of interests between its participants. The participants will be responsible for maintaining records regarding the beneficial interests of the individual purchasers of the bonds. So long as Cede & Co. is the registered owner of the Series 1999D Bonds, all payments of principal and interest will be made to the depository which, in turn, will be obligated to remit such payments to its Participants for subsequent disbursement to the beneficial owners of the Series 1999D Bonds. Optional Redemption At the option of the City, Series 1999D Bonds maturing on or after February I, 2007 shall be subject to prior payment 0 on February 1, 2006 or any date thereafter, at a price of par and accrued interest. Redemption may be in whole or in part of the bonds subject to prepayment. If redemption is in part, the selection of the Bonds remaining unpaid to be prepaid shall be at the discretion of the City. If only part of the bonds having a common maturity date are called for prepayment, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by Jot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by Jot the beneficial ownership interest in such maturity to be redeemed. Notice of such call shall be given by mailing a notice thereof by first class mail at least thirty (30) days prior to the date fixed for redemption to the registered owner of each bond to be redeemed at the address shown on the registration books. Paying Agent The City has selected Bankers Trust Company, Des Moines, Iowa, to act as paying agent (the "Paying Agent"). The City will pay the charges for Paying Agent services. The City reserves the right to remove the Paying Agent and to appoint a successor. Delivery Within 40 days after the sale, the Series 1999D Bonds will be delivered without cost to the original purchaser at DTC. On the day of closing, the City will furnish to the purchaser the opinion of bond counsel hereinafter described, appropriate arbitrage certifications and a certificate verifying that no litigation in any manner questioning the validity 0 of the Series 1999D Bonds is then pending or, to the best knowledge of officers of the City, threatened. Payment for the Series 1999D Bonds must be received by the City at its designated depository on the date of closing in immediately available funds. 12 TERMS OF PROPOSAL 0 $850,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 1999D CITY OF HOPKINS, MINNESOTA Sealed proposals for the purchase of $850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 19990 (the "Series 19990 Bonds") of the City of Hopkins, Minnesota (the "City") will be received at the offices of Ehlers & Associates, Inc., 3060 Centre Pointe Orive, Roseville, Minnesota 55113-1105, until 12:00 Noon A.M., Central Time, on July 20, 1999, when they will be opened, read and tabulated for presentation to the City Council. The proposals will be presented to the City Council for consideration for award at a meeting to be held in the City at 7:30 P.M., Central Time, on the same date. The Series 19990 Bonds will be general obligations of the City for which the City will pledge its full faith, credit and taxing powers. The proposal offering to purchase the Series 19990 Bonds upon the terms specified herein and most favorable to the City will be accepted unless all proposals are rejected. Purpose The Series 19990 Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, and the City Charter, to finance 1999 alley and street improvement projects undertaken through the City's Permanent Improvement Revolving Fund. Oates and Maturities 0 The Series 19990 Bonds will be dated August 1, 1999 as the date of original issue, will be issued as fully registered bonds in the denomination of $5,000 each, or any integral multiple thereof, and will mature on February 1 in the following years and amounts: 2001 $70,000 2002 70,000 2003 75,000 2004 80,000 2005 80,000 2006 85,000 2007 90,000 2008 95,000 2009 100,000 2010 105,000 Term Bond Option All dates are inclusive. Proposals for the Series 19990 Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. () 11 0 The City reserves the right to reject any and all proposals, and to waive informalities and to adjourn the sale. BY ORDER OF THE CITY COUNCIL Terry Obermaier City Clerk City Hall 1010-lst Street Hopkins, MN 55343-7573 If proposals are delivered to Ehlers & Associates, Inc., the good faith deposit, payable to the City, shall be retained in the offices of Ehlers & Associates, Inc. with the same effect as if delivered to the City. Alternatively, bidders may wire the good faith deposit to Resource Bank & Trust Company, Minneapolis, Minnesota, A.B.A. #09-10-0550-6 for credit to Ehlers & Associates, Inc. Bond Issue Escrow Account, #850-788-1. The City and any bidder who chooses to so wire the good faith deposit hereby agree irrevocably that Ehlers & Associates, Inc. shall be the escrow holder of the good faith deposit wired to such account subject only to these conditions and duties: 1) All income earned thereon shall be retained by the escrow holder as payment for its expenses; 2) If the proposal is not accepted, Ehlers & Associates, Inc. shall, at its expense, promptly return the good faith deposit amount to the losing bidder; 3) If the proposal is accepted, the good faith deposit shall be returned to the purchaser at the closing; 4) Ehlers & Associates, Inc. shall bear all costs of maintaining the escrow account and returning the funds to the bidder; 5) Ehlers 0 & Associates, Inc. shall not be an insurer of the good faith deposit amount and shall have no liability hereunder except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and 6) FDIC insurance on deposits within the escrow account shall be limited to $100,000 per bidder. 0 10 . Bond Insurance If the Series 1999C Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole 0 option and expense of the purchaser of the Series 1999C Bonds. Any cost for such insurance policy is to be paid by the purchaser, except that, if the Issuer requested and received a rating on the Series 1999C Bonds from a rating agency, the Issuer will pay that rating fee. Any rating agency fees not requested by the issuer are the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after the bonds are awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Series 1999C Bonds. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the Series 1999C Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the purchaser, if the purchaser waives any delay in delivery occasioned thereby. Information From Purchaser The successful purchaser will be required to provide, in a timely manner, certain information relating to the initial offering prices of the Series 1999C Bonds necessary to compute the yield on the bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. Qualified Tax-Exempt Obligations The City will designate the Series 1999C Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) 0 of the Internal Revenue Code of 1986, as amended. Continuing Disclosure In order to assist the Underwriters in complying with the provisions of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 the City will enter into an undertaking (the "Undertaking") for the benefit of the holders of the Series 1999C Bonds. A description of the details and terms of the Undertaking is set forth in the Official Statement. The City has complied in all material respects with any undertaking previously entered into by it under the Rule. Official Statement Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the proposal opening. The Syndicate Manager will be provided with 75 copies of the Final Official Statement within seven business days of the proposal acceptance. Additional copies of the Final Official Statement will be available at a cost of $10.00 per copy. Information for bidders and proposal forms may be obtained from the undersigned or from the City's Financial Advisor, Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105; Telephone (651) 697-8500. 0 9 0 Type of Proposal Proposals for not less than $1,519,850 plus accrued interest on the principal sum of $1 ,545,000 from date of original issue of the Series 1999C Bonds to date of delivery must be filed with the undersigned prior to the time of sale. Proposals must be submitted to Ehlers & Associates, Inc. either: 1) In a sealed envelope to Ehlers & Associates, Inc. as described herein; or 2) A facsimile submission to Ehlers & Associates, Inc., Financial Advisors, Facsimile Number: (651) 697-8555. Proposals must be submitted to Ehlers & Associates, Inc. as described above and must be received prior to the time established above for the opening of proposals. Each proposal must be unconditional except as to legality. Neither the Issuer nor Ehlers & Associates, Inc. shall be responsible for any failure to receive a facsimile submission. A good faith deposit (the "Deposit") in the amount of $30,900, or a financial surety bond complying with the provisions below, must be submitted with each proposal. The Deposit must be in the form of a certified or cashiers check or a wire transfer of funds to Resource Bank & Trust Company, of Minneapolis, Minnesota, ABA #09.10- 0550-6 for further credit to Ehlers & Associates, Inc., Bond Issue Escrow Account #850-788-1, or a financial surety bond. The Deposit will be retained by the City as liquidated damages if the proposal is accepted and the bidder fails to comply therewith. The Deposit will be returned to the Purchaser at the closing for the Series 1999C Bonds. Proposals for the Series 1999C Bonds should be addressed to: Terry Obermaier 0 City Clerk City Hall 101O-1st Street Hopkins, MN 55343-7573 If a financial surety bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Ehlers & Associates, Inc. prior to the opening of the proposals. Such bond must identify each bidder whose deposit is guaranteed by such financial surety bond. If the Series 1999C Bonds are awarded to a bidder using a financial surety bond, then that purchaser is required to submit its Deposit to Ehlers & Associates, Inc. in the form of a certified or cashier's check or wire transfer as instructed by Ehlers & Associates, Inc. not later than 3:00 P.M., Central Time, on the next business day following the award. If such deposit is not received by that time, the financial surety bond may be drawn by the City to satisfy the deposit requirement. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn after the time set for receiving proposals unless the meeting of the City scheduled for award of the Series 1999C Bonds is adjourned, recessed, or continued to another date without award of the Series 1999C Bonds having been made. Award The Series 1999C Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Series 1999C Bonds will be awarded by lot. No oral proposal will be considered, and the City reserves the right to reject any and all proposals and to waive any informality in any proposal. 0 8 Book Entrv Format The Series 1999C Bonds will be designated in the name of Cede & Co., as nominee for The Depository Trust 0 Company ("DTC"), New York, New York. DTC will act as securities depository for the Series 1999C Bonds, and will be responsible for maintaining a book-entry system for recording the interests of its participants and the transfers of interests between its participants. The participants will be responsible for maintaining records regarding the beneficial interests of the individual purchasers of the bonds. So long as Cede & Co. is the registered owner of the Series 1999C Bonds, all payments of principal and interest will be made to the depository which, in turn, will be obligated to remit such payments to its participants for subsequent disbursement to the beneficial owners of the Series 1999C Bonds. Optional Redemption At the option of the City, Series 1999C Bonds maturing on or after February 1,2008 shall be subject to prior payment on February I, 2007 or any date thereafter, at a price of par and accrued interest. Redemption may be in whole or in part of the bonds subject to prepayment. If redemption is in part, the selection of the bonds remaining unpaid to be prepaid shall be at the discretion of the City. If only part of the bonds having a common maturity date are called for prepayment, the City will notify 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 interest in such maturity to be redeemed. Notice of such call shall be given by mailing a notice thereof by first class mail at least thirty (30) days prior to the date fixed for redemption to the registered owner of each bond to be redeemed at the address shown on the registration books. 0 Paving Agent The City has selected Bankers Trust Company, Des Moines, Iowa, to act as paying agent (the "Paying Agent"). The City will pay the charges for Paying Agent services. The City reserves the right to remove the Paying Agent and to appoint a successor. Delivery Within 40 days after the sale, the Series 1999C Bonds will be delivered without cost to the original purchaser at DTC. On the day of closing, the City will furnish to the purchaser the opinion of bond counsel hereinafter described, an arbitrage certification and certificates verifying that no litigation in any manner questioning the validity of the Series 1999C Bonds is then pending or, to the best knowledge of officers of the District, threatened. Payment for the Series 1999C Bonds must be received by the City at its designated depository on the date of closing in immediately available funds. Legal Opinion An opinion as to the validity of the Series 1999C Bonds and the exemption from taxation of the interest thereon will be furnished by Kennedy & Graven, Chartered, of Minneapolis, Minnesota, bond counsel to the City, and will accompany the Series 1999C Bonds. The legal opinion will state that the Series 1999C Bonds are valid and binding general obligations of the City enforceable in accordance with their terms, except to the extent to which enforceability may be limited by Minnesota or United States laws relating to bankruptcy, reorganization, moratorium or creditors' rights generally. 0 7 --- 0 TERMS OF PROPOSAL $1,545,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1999C CITY OF HOPKINS, MINNESOTA Sealed proposals for the purchase of $1,545,000 General Obligation Stann Sewer Revenue Bonds, Series 1999C (the "Series 1999C Bonds") of the City of Hopkins, Minnesota (the "City") will be received at the offices of Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, until 12:00 Noon A.M., Central Time, on July 20, 1999, when they will be opened, read and tabulated for presentation to the City Council. The proposals will be presented to the City Council for consideration for award at a meeting to be held in the City at 7:30 P.M., Central Time, on the same date. The Series 1999C Bonds will be general obligations of the City for which the City will pledge its full faith, credit and taxing powers. The proposal offering to purchase the Series 1999C Bonds upon the tenns specified herein and most favorable to the City will be accepted unless all proposals are rejected. Purpose The Series 1999C Bonds are being issued pursuant to Minnesota Statutes, Section 444.075 and Chapter 475, to finance current and planned improvements to the municipal stann water management system. Dates and Maturities The Series 1999C Bonds will be dated August I, 1999 as the date of original issue, will be issued as fully registered bonds in the denomination of $5,000 each, or any integral multiple thereof, and will mature on February ] in the 0 following years and amounts: 2000 $55,000 2008 $100,000 2001 70,000 2009 100,000 2002 75,000 2010 105,000 2003 80,000 2011 110,000 2004 80,000 2012 115,000 2005 85,000 2013 120,000 2006 90,000 2014 130,000 2007 95,000 2015 135,000 Tenn Bond Option All dates are inclusive. Proposals for the Series 1999C Bonds may contain a maturity schedule providing for any combination of serial bonds and tenn bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year confonns to the maturity schedule set forth above. Interest Payment Dates and Rates Interest will be payable on February 1 and August 1 of each year, commencing February 1,2000, to the registered owners of the Series 1999C Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of twelve 3D-day months and will be rounded pursuant to rules of the MSRB. All bonds of the same maturity must bear interest from date of issue until paid at a single, unifonn rate, not exceeding the rate 0 specified for Bonds of any subsequent maturity. Each rate must be expressed in an integral multiple of 5/100 or 1/8 of 1%. 6 Information for bidders and proposal forms may be obtained from the undersigned or from the City's Financial Advisor, Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, Telephone (651) 0 697-8500. The City reserves the right to reject any and all proposals, and to waive informalities and to adjourn the sale. BY ORDER OF THE CITY COUNCIL Terry Obermaier City Clerk City Hall 1010-lst Street Hopkins, MN 55343-7573 If proposals are delivered to Ehlers & Associates, Inc., the good faith deposit, payable to the City, shall be retained in the offices of Ehlers & Associates, Inc. with the same effect as if delivered to the City. Alternatively, bidders may wire the good faith deposit to Resource Bank & Trust Company, Minneapolis, Minnesota, A.B.A. #09-10-0550-6 for credit to Ehlers & Associates, Inc. Bond Issue Escrow Account, #850-788-1. The City and any bidder who chooses to so wire the good faith deposit hereby agree irrevocably that Ehlers & Associates, Inc. shall be the escrow holder of the good faith deposit wired to such account subject only to these conditions and duties: 1) All income earned thereon shall be retained by the escrow holder as payment for its expenses; 2) If the proposal is not accepted, 0 Ehlers & Associates, Inc. shall, at its expense, promptly return the good faith deposit amount to the losing bidder; 3) If the proposal is accepted, the good faith deposit shall be returned to the purchaser at the closing; 4) Ehlers & Associates, Inc. shall bear all costs of maintaining the escrow account and returning the funds to the bidder; 5) Ehlers & Associates, Inc. shall not be an insurer of the good faith deposit amount and shall have no liability hereunder except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and 6) FDIC insurance on deposits within the escrow account shall be limited to $100,000 per bidder. 0 5 ~-' ---- ----- -- - A ward 0 The Series 1999B Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Series 1999B Bonds will be awarded by lot. No oral proposal will be considered, and the City reserves the right to reject any and all proposals and to waive any informality in any proposal. Bond Insurance If the Series 1999B Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole option and expense of the purchaser of the Series 1999B Bonds. Any cost for such insurance policy is to be paid by the purchaser, except that, if the Issuer requested and received a rating on the Series 1999B Bonds from a rating agency, the Issuer will pay that rating fee. Any rating agency fees not requested by the issuer are the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after the bonds are awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Series 1999B Bonds. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the Series 1999B Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the purchaser, if the purchaser waives any delay in delivery occasioned thereby. 0 Information From Purchaser The successful purchaser will be required to provide, in a timely manner, certain information relating to the initial offering prices of the Series 1999B Bonds necessary to compute the yield on the bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. Taxabilitv Interest on the Series 1999B Bonds is included in gross income of the recipient for United States income tax purposes and is included, to the same extent, in both gross income and taxable net income for State of Minnesota income tax purposes. Continuing Disclosure In order to assist the Underwriters in complying with the provisions of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 the City will enter into an undertaking (the "Undertaking") for the benefit of the holders of the Series 1999B Bonds. A description of the details and terms of the Undertaking is set forth in the Official Statement. The City has complied in all material respects with any undertaking previously entered into by it under the Rule. Official Statement Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the proposal opening. The Syndicate Manager will be provided with 100 copies of the Final Official Statement within 0 seven business days of the proposal acceptance. Additional copies of the Final Official Statement will be available at a cost of $10.00 per copy. 4 Legal Opinion An opinion as to the validity of the Series 1999B Bonds will be furnished by Kennedy & Graven, Chartered, of 0 Minneapolis, Minnesota, bond counsel to the City, and will accompany the Series 1999B Bonds. The legal opinion will state that the Series 1999B Bonds are valid and binding general obligations of the City enforceable in accordance with their tenns, except to the extent to which enforceability may be limited by Minnesota or United States laws relating to bankruptcy, reorganization, moratorium or creditors' rights generally. Type of Proposal Proposals for not less than $2,516,300 plus accrued interest on the principal sum of $2,565,000 from date of original issue of the Series 1999B Bonds to date of delivery must be filed with the undersigned prior to the time of sale. Proposals must be submitted to Ehlers & Associates, Inc. either: 1) In a sealed envelope to Ehlers & Associates, Inc. as described herein; or 2) A facsimile submission to Ehlers & Associates, Inc., Financial Advisors, Facsimile Number: (651) 697-8555. Proposals must be submitted to Ehlers & Associates, Inc. as described above and must be received prior to the time established above for the opening of proposals. Each proposal must be unconditional except as to legality. Neither the Issuer nor Ehlers & Associates, Inc. shall be responsible for any failure to receive a facsimile submission. A good faith deposit (the "Deposit") in the amount of $51,300, or a financial surety bond complying with the provisions below, must be submitted with each proposal. The Deposit must be in the fonn of a certified or cashiers check or a wire transfer of funds to Resource Bank & Trust Company, of Minneapolis, Minnesota, ABA #09-10- 0 0550-6 for further credit to Ehlers & Associates, Inc., Bond Issue Escrow Account #850-788-1, or a financial surety bond. The Deposit will be retained by the City as liquidated damages if the proposal is accepted and the bidder fails to comply therewith. The Deposit will be returned to the Purchaser at the closing for the Series 1999B Bonds. Proposals for the Series 1999B Bonds should be addressed to: Terry Obennaier City Clerk City Hall 10 10-1 st Street Hopkins, MN 55343-7573 If a financial surety bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Ehlers & Associates, Inc. prior to the opening of the proposals. Such bond must identify each bidder whose deposit is guaranteed by such financial surety bond. If the Series 1999B Bonds are awarded to a bidder using a financial surety bond, then that purchaser is required to submit its Deposit to Ehlers & Associates, Inc. in the fonn of a certified or cashier's check or wire transfer as instructed by Ehlers & Associates, Inc. not later than 3:00 P.M., Central Time, on the next business day following the award. If such deposit is not received by that time, the financial surety bond may be drawn by the City to satisfy the deposit requirement. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn after the time set for receiving proposals unless the meeting of : the City scheduled for award of the Series 1999B Bonds is adjourned, recessed, or continued to another date without award of the Series 1999B Bonds having been made. 0 3 --- --- -.- -- -- - ----- 0 day (whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. All bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for bonds of any subsequent maturity. Each rate must be expressed in an integral multiple of 5/100 or 1/8 of 1%. Book Entry Format The Series 1999B Bonds will be designated in the name of Cede & Co., as nominee for The Depository Trust Company (nDTcn), New York, New York. DTC will act as securities depository for the Series 1999B Bonds, and will be responsible for maintaining a book-entry system for recording the interest of its participants and the transfers of interests between its participants. The participants will be responsible for maintaining records regarding the beneficial interests of the individual purchasers of the bonds. So long as Cede & Co. is the registered owner of the Series 1999B Bonds, all payments of principal and interest will be made to the depository which, in turn, will be obligated to remit such payments to its Participants for subsequent disbursement to the beneficial owners of the Series 1999B Bonds. Optional Redemption At the option of the City, Series 1999B Bonds maturing on or after February 1, 2010 shall be subject to prior payment on February 1,2009 or any date thereafter, at a price of par and accrued interest. Redemption may be in whole or in part of the bonds subject to prepayment. If redemption is in part, the selection of the bonds remaining unpaid to be prepaid shall be at the discretion of the City. If only part of the bonds having 0 a common maturity date are called for prepayment, the City will notify 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 interest in such maturity to be redeemed. Notice of such call shall be given by mailing a notice thereof by first class mail at least thirty (30) days prior to the date fixed for redemption to the registered owner of each bond to be redeemed at the address shown on the registration books. Pavinl! Agent The City has selected Bankers Trust Company, Des Moines, Iowa, to act as paying agent (the "Paying Agent"). The City will pay the charges for Paying Agent services. The City reserves the right to remove the Paying Agent and to appoint a successor. Delivery Within 40 days after the sale, the Series 1999B Bonds will be delivered without cost to the original purchaser at DTC. On the day of closing, the City will furnish to the purchaser the opinion of bond counsel hereinafter described, appropriate arbitrage certifications and a certificate verifying that no litigation in any manner questioning the validity of the Series 1999B Bonds is then pending or, to the best knowledge of officers of the City, threatened. Payment for the Series 1999B Bonds must be received by the City at its designated depository on the date of closing in immediately available funds. 0 2 'fJElRMS OF PROPOSAL 0 $2,565,000 TAXABLE GENERAL OBLIGATION IMPROVEMENT AREA BONDS, SERIES 1999B CITY OF HOPKINS, MINNESOTA Sealed proposals for the purchase of$2,565,000 Taxable General Obligation Improvement Area Bonds, Series 1999B (the "Series 1999B Bonds") ofthe City of Hopkins, Minnesota (the "City") will be received at the offices of Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, until 12:00 Noon, Central Time, on July 20, 1999, when they will be opened, read and tabulated for presentation to the City Council. The proposals will be presented to the City Council for consideration for award at a meeting to be held in the City at 7:30 P.M., Central Time, on the same date. The Series 1999B Bonds will be general obligations of the City for which the City will pledge its full faith, credit and taxing powers. The proposal offering to purchase the Series 1999B Bonds upon the terms specified herein and most favorable to the City will be accepted unless all proposals are rejected. Pumose The Series 1999B Bonds are being issued pursuant to 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 33, and Minnesota Statutes, Chapter 475, to finance the second phase of improvements in Housing Improvement Area No.2 (the "Area"). Dates and Maturities The Series 1999B Bonds will be dated August 1, 1999 as the date of original issue, will be issued as fully registered 0 bonds in the denomination of $5,000 each, or any integral multiple thereof, and will mature on February 1 in the following years and amounts: 2002 $65,000 2012 $120,000 2003 70,000 2013 130,000 2004 75,000 2014 140,000 2005 80,000 2015 150,000 2006 85,000 2016 160,000 2007 90,000 2017 170,000 2008 95,000 2018 180,000 2009 100,000 2019 195,000 2010 110,000 2020 210,000 2011 115,000 2021 225,000 Term Bond Option All dates are inclusive. Proposals for the Series 1999B Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. Interest Payment Dates and Rates Interest will be payable on February 1 and August 1 of each year, commencing February 1,2000, to the registered 0 owners of the Series 1999B Bonds appearing of record in the bond register as of the close of business on the 15th 1 I 0 OFFICERS Charles Redepenning Mayor Frances Hesch Council Member Karen Jensen Council Member Diane Johnson Council Member Eugene Maxwell Council Member Steve Mielke, City Manager James Genellie, Assistant City Manager/Community Services Administrator Terry Obermaier, City Clerk Lori Yager, Finance Director James Kerrigan, Economic Development Director Kersten Elverum, Housing Coordinator o ~, ",. .- " , ..........,...,..- PROFESSIONAL SERVICES Jerre A. Miller, City Attorney, Hopkins, Minnesota Kennedy & Graven, Chartered, Bond Counsel, Minneapolis, Minnesota Ehlers & Associates, Inc., Financial Advisors, Roseville, Minnesota o iv T ABJLE OlF CONTENTS TERMS OF PROPOSAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 0 $2,565,000 TAXABLE GENERAL OBLlGA nON IMPROVEMENT AREA BONDS, SERIES 1999B . . . . . . . . . . . . . . . . . . . . .. 1 $1,545,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1999C ............................ 6 $850,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 1999D ....... 11 INTRODUCTION............................................................................................ 16 $2,565,000 TAXABLE GENERAL OBLIGATION IMPROVEMENT AREA BONDS, SERIES 1999B . . . . . . . . . . . . . . . . . . . .. 16 AUTHORITY; PURPOSE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 SOURCES AND USES................................................................................ 16 SECURITY ......................................................................................... 16 NOT QUALIFIED TAX-EXEMPT OBLIGATIONS ......................................................... 17 $1.545,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1999C ........................... 18 AUTHORITY; PURPOSE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. 18 SOURCES AND USES................................................................................ 18 SECURITY ......................................................................................... 18 QUALIFIED TAX-EXEMPT OBLIGATIONS .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18 $850,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 1999D ....... 19 AUTHORITY; PURPOSE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19 SOURCES AND USES................................................................................ 19 SECURITY ......................................................................................... 19 QUALIFIED TAX-EXEMPT OBLIGATIONS. . .. . .., . . . . . . . ... . .. . . ... ... . .. . .. . .. . . .. . . . . . . . . . . . . .. . . .... 19 COMMON PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 RATING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 TAX EXEMPTION. . . . .. ... . .. . .. . . .. . " . . . . . . . . . . . . .. . . . . . .. ... . .. . . ... ... . . . . . . . .. . .. . . .. . ... . .. . . ... .. 20 TAXABILITY OF INTEREST ON THE SERIES 1999B BONDS. .. . .. . .. . . . .. . . . . ... . . . . . . . .. . ... . . . . . . . . . .. . . . . .. 21 CONTINUING DISCLOSURE .............................................................................. 21 RISK FACTORS......................................................................................... 21 VALUATIONS.............................................................................................. 23 MINNESOTA VALUATIONS; PROPERTY TAXES ............................................................ 23 CURRENT PROPERTY VALUATIONS ...................................................................... 24 0 TREND OF VALUATIONS ................................................................................ 25 LARGER TAXPAYING PARCELS.......................................................................... 25 DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26 DIRECT DEBT .......................................................................................... 26 SUMMARY OF GENERAL OBLIGATION DEBT. . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 OVERLAPPING DEBT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29 DEBT RATIOS .......................................................................................... 30 LEVY LIMITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 30 TAX LEVIES AND COLLECTIONS .............. .................... .... .......................................31 TAXCOLLECTIONS ......... ................................. .................. .............. .... .......31 TAX CAPACITY RATES. . . . . . . . . .. . . .. . . . . ... . .. . .. . . . . . . . . . . . . .. . ... . .. . . .. . . . . ... .. . . . .. .,. . . . . . ... .... 31 THE ISSUER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32 CITY GOVERNMENT .................................................................................... 32 FUNDS ON HAND ....................................................................................... 32 LITIGA nON ........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33 DEBT PAYMENT HISTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33 GENERAL INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34 LOCATION............................................................................................. 34 LARGER EMPLOYERS ................................................................................... 34 U.S. CENSUS DATA...................................................................................... 35 BUILDING PERMITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 36 FINANCIAL SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 36 . EDUCATION............................................................................................ 37 BOND YEARS .............................................................................................. 38 EXCERPTS FROM FINANCIAL STATEMENTS.................................................................. A-I - FORM OF LEGAL OPINIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. B-1 BOOK-ENTRY-ONLY SySTEM............................................................................... C-I CONTINUING DISCLOSURE CERTIFICATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. D-I 0 iii REPRESENTATIONS 0 No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representation other than those contained in the Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell or solicitation of an offer to buy any of the Obligations in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. This Official Statement is not to be construed as a contract with the underwriter. Statements contained herein which involve estimates or matters of opinion are intended solely as such and are not to be construed as representations of fact. . This Official Statement and any addenda thereto were prepared relying on information of the City and other sources and, while believed to be reliable, are not guaranteed as to completeness or accuracy. I Bond Counsel has not participated in the preparation of this Official Statement and is not expressing any opinion as to the completeness or accuracy of the information contained therein. Compensation of Ehlers & Associates, Inc., payable entirely by the City, is contingent upon the sale of the issue. I COMPLIANCE WITH S.E.C. RULE 15c2-12 Certain municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations, Securities Exchange Act of 1934, Rule 15c2-12 Municipal Securities Disclosure (the "Rule"). Official Statement: This Official Statement was prepared for the City for dissemination to potential customers. Its primary purpose is to disclose information regarding the Obligations to prospective underwriters in the interest ofreceiving competitive proposals in accordance with the sale notice contained herein. Unless an addendum is received prior to the sale, this document shall be deemed the "Near Final Official Statement". Review Period: This Official Statement has been distributed to members of the legislati ve body and other public officials of the City as well 0 as to prospective bidders for an objective review of its disclosure. Comments or requests for the correction of omissions or inaccuracies must be submitted to Ehlers & Associates at least two business days prior to the sale. Requests for additional information or corrections in the Official Statement received on or before this date will !1Q! be considered a qualification of a proposal received from an underwriter. If there are any changes, corrections or additions to the Official Statement, interested bidders will be informed by an addendum at least one business day prior to the sale. Final Official Statement: Upon award of sale of the Obligations, the legislative body will authorize the preparation of an addendum to the Official Statement that includes the offering prices, interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery date and other information required by law and the identity of the Syndicate Manager and Syndicate Members. This addendum, together with any previous addendum of corrections or additions to the Official Statement, shall be deemed the complete Final Official Statement. Copies of the Final Official Statement will be delivered to the underwriter (Syndicate Manager) within seven business days following the proposal acceptance. Continuing Disclosure: Subject to certain exemptions, issues in an aggregate amount over $1,000,000 may be required to comply with provisions of the Securities Exchange Act of 1934 which require that issuers of municipal securities enter into agreements for the benefit of the owners of the securities to provide continuing disclosure with respect to those securities. This Official Statement describes the conditions under which these Obligations are exempt or required to comply with the Rule. CLOSING CERTIFICATES Upon delivery of the Obligations, the purchaser (underwriter) will be furnished with the following items: (1) a certificate of the appropriate officials to the effect that at the time of the sale ofthe Obligations and all times subsequent thereto up to and including the time of the delivery of the Obligations, this Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (2) a receipt signed by the appropriate officer evidencing payment for the Obligations; (3) a certificate evidencing the due execution of the Obligations, including . statements that (a) no litigation of any nature is pending, or to the knowledge of signers, threatened, restraining or enjoining the issuance and delivery of the Obligations, (b) neither the corporate existence or boundaries of the City nor the title of the signers to their respective offices is being contested, and (c) no authority or proceedings for the issuance of the Obligations have been repealed, revoked or rescinded; and (4) a certificate setting forth facts and expectations of the City which indicates that the City does not expect to use the proceeds of the Obligations in a manner that would cause them to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986. as amended, 0 or within the meaning of applicable Treasury Regulations. ii '- In tile opinion of Bond Counsel. interest on tile Series 1999B Bonds is includible in gross income of tile recipient for United States or State of Minnesota income tax purposes. Tile Issuer will NOT designate the Series 1999B Bonds as "qualified tax-exempt obligations" pursuant to Section 265 of tile Internal Revenue Code of 1986. as amended, wllicll permits financial institutions to deduct interest expense allocable to the Series 1999B Bonds to tile extent permitted under prior law. Interest on tile Series 1999C Bonds and tile Series 1999D Bonds is exempt from taxation by tile State of Minnesota and its subdivisions and municipalities and the interest to be paid 011 the Bonds is not includible in the gross income of the recipientfor United States or State of Minnesota income tax purposes (but is subject to federal alternative minimum taxes on corporations and Minnesotafranchise taxes imposed on corporations, includingfinancial institutions. and measured by net income and the alternative minimum tax base) according to presentfederal and Minnesota laws. regulations, rulings and decisions. (See "Tax Exemption" herein.) The Issuer will designate the Series 1999C Bonds ao Se ries I 999D Bonds as "qualified tax-exempt obligations" pursuant to Section 265 of the Internal Revenue Code of 1986 which would permit financial institutions to deduct i . expenses allocable to the Series 1999C Bonds and the Series 1999D Bonds to the extent permitted under prior law. . ,New Issues Rating Application Made: Moody's Investors Service '(:B aok-Entry-Only) Standard & Poor's OFFICIAL STATEMENT DATED JULY 8,1999 . CITY OF ]H[OPKINS, MINNESOTA $2,565,000 TAXABLE GENERAL OBLIGATION IMPROVEMENT AREA BONDS, SERIES 1999B (the "Series 1999B Bonds") $1,545,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1999C (the "Series 1999C Bonds") $850,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 1999D (the "Series 1999D Bonds") (Collectively referred to as the "Issues") PROPOSAL: July 20,1999,12:00 Noon, C.T. CONSIDERATION: July 20, 1999,7:30 P.M., C.T. PURPOSE/AUTHORITY/SECURITY: The Series 1999B Bonds are being issued pursuant to 1994 Minnesota Laws, Chapter 587, Article 9, Sections 22 through 33, and Minnesota Statutes, Chapter 475, by the City of Hopkins, Minnesota (the "City") to finance the second phase of improvements in Housing Improvement Area No.2 (the "Area"). The Series 1999B Bonds will be general obligations of the City for which the City will pledge its full faith, credit and taxing powers, tagether with fees imposed upon housing units in the Area. The Series 1999C Bonds are being issued pursuant to Minnesota Statutes, Section 444.075 and Chapter 475, to finance current and planned improvements to the municipal storm water management system. The Series 1999C Bonds will be general obligations of the City for which the City will pledge its full faith, credit and taxing powers, together with net revenues of the municipal storm sewer utility. The Series 19990 Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, and the City Charter, to finance 1999 alley and street improvement projects undertaken through the City's Permanent Improvement Revolving Fund. The Series 19990 Bonds will be general Obli~a of the City for which the City will pledge its full faith, credit and taxing powers, together with special assessments. These Issues will be in fully registered form as to both pri and interest and will be in integral multiples of$5,000 each. Delivery is subject to receipt of approving legal opinions of Kennedy & Graven, Chartered, of Minneapolis, Minne ..1. SERIES 1999B BONDS SERIES 1999C BONDS SERIES 19990 BONDS DATED DATE: August I. 1999. DATED DATE: August I, 1999. DATED DATE: August I, 1999. MATURITY: February I as follows: MATURITY: February I as follows: MATURITY: February I as follows: 2002 $65,000 2012 $120,000 2000 $55,000 2010 $105,000 2001 $70,000 2003 70,000 2013 130,000 2001 70.000 2011 110,000 2002 70,000 2004 75,000 2014 140,000 2002 75.000 2012 115,000 2003 75,000 2005 80,000 2015 150,000 2003 80.000 2013 120,000 2004 80,000 2006 85,000 2016 160,000 2004 80,000 2014 130,000 2005 80,000 2007 90,000 2017 170,000 2005 85,000 2015 135,000 2006 85,000 2008 95,000 2018 180,000 2006 90,000 2007 90,000 2009 100,000 2019 195,000 2007 95,000 2008 95,000 2010 110,000 2020 210,000 2008 100,000 2009 100,000 2011 115,000 2021 225,000 2009 100,000 2010 105,000 TERM BONDS: See "Term Bond Option" herein. TERM BONDS: See ''Term Bond Option" herein. TERM BONDS: See ''Term Bond Option" herein. INTEREST: February I, 2000 and semiannually. INTEREST: February 1,2000 and semiannually. INTEREST: February 1,2000 and semiannually. REDEMPTION: Bonds due February 1,2010 and REDEMPTION: Bonds due February 1,2008 and REDEMPTION: Bonds due February 1,2007 and thereafter are subject to call for prior redemption on thereafter are subject to call for prior redemption on thereafter are subject to call for prior redemption on February I, 2009 and any date thereafter, at par. February I, 2007 and any date thereafter, at par. February I, 2006 and any date thereafter, at par. MINIMUM PROPOSAL: $2,516,300. MINIMUM PROPOSAL: $1,519,850. MINIMUM PROPOSAL: $838,100. GOOD FAITH DEPOSIT: $51,300. GOOD FAITH DEPOSIT: $30,900. GOOD FAITH DEPOSIT: $17,000. . PAYING AGENT: Bankers Trust Company, Des PAYING AGENT: Bankers Trust Company, Des PAYING AGENT: Bankers Trust Company, Des Moines, Iowa. Moines, Iowa. Moines, Iowa. . This Official Statement will be further supplemented by an addendum specifying the offering prices, interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery date, and Syndicate Manager and Syndicate Members, together with any other information required by law. and, as supplemented, shall constitute a "Final Official Statement" of the Issuer with respect to the Issues as defined in S.E.C. Rule 15c2-12. 0 - -- --------,~. - (i'\ lE~~IE~S LEA D E R S I N PUBLIC FINANCE 3060 Centre POlnte Drive, Roseville, MN 55113.1105 , =1 651.697.8500 fax 651.697.8555 www.ehlers'lnc.com )......t''f'f'ol~--4.... & ASSOCIATES t N C Offices in Roseville, MN, Brookfield, WI and Naperville, IL ~~~~~_'.=~_"_. _ vv ,._ w _~ _~.~n_~~_~ ____~_. _o_~~ ...~,~=---~ .=~.~---~"'- _.~>--- "-~. - . ,~~~ ~., co_. ~_~~_ ____ ____"_~, . ._---" --~---~~---~-~~-----------~-_."---_.- ----~-~ Interest on the Tax-Exempt Bonds may be included in the income of a foreign corporation for purposes of the branch profits tax imposed by Section 884 of the Code. Under certain circumstances, interest on the Tax-Exempt Bonds may 0, be subject to the tax on "excess net passive income" of Subchapter S corporations imposed by Section 1375 of the Code. The above is not a comprehensive list of all Federal tax consequences which may arise from the receipt of interest on the Tax-Exempt Bonds. The receipt of interest on the Tax-Exempt Bonds may otherwise affect the Federal or State income tax liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such consequences. All prospective purchasers of the Tax-Exempt Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the Tax-Exempt Bonds. TAXABILITY OF INTEREST ON THE SERIES 1999B BONDS Interest on the Series 1999D Bonds is includible in the "gross income" of the owners of the Series 1999B Bonds for purposes of federal and State of Minnesota income CONTINUING DISCLOSURE In order to comply with the provisions of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule") the City has entered into an undertaking (the "Undertaking") for the benefit of the holders of the Issues. Through the Undertaking, the City covenants and agrees to provide certain annual financial information and operating data about the City and to provide notice of the occurrence of certain 0 material events. This information shall be provided according to the time parameters described in the Undertaking and to the information repositories and the Municipal Securities Rulemaking Board as required by the Rule. The specific provisions of the Undertaking are set forth in the Continuing Disclosure Certificate in substantially the form attached hereto as Appendix D. The Continuing Disclosure Certificate will be executed and delivered by the City at the time the Issues are delivered. The City is the only "obligated person" with respect to the Issues within the meaning of the Rule. The City has complied in all material respects with any previous undertaking under the Rule. RISK FACTORS Following is a description of possible risks to holders of these Issues without weighting as to probability. This description of risks is not intended to be all-inclusive and there may be other risks not now perceived or listed here. Taxes: The Issues of this offering are general obligations of the City, the ultimate payment of which rests in the City's ability to levy and collect sufficient taxes to pay debt service should other revenue (fees imposed upon housing units in the Area, net revenues of the municipal storm sewer utility, and special assessments) be insufficient. Ratings; Interest Rates: In the future, the City's credit rating may be reduced or withdrawn, or interest rates for this type of obligation may rise generally, both possibilities resulting in a reduction in the value of the Issues for resale prior to maturity. Tax Exemption: If the federal government or the State of Minnesota taxes the interest on municipal obligations , directly or indirectly, the value of the Issues may fall for purposes of resale. Noncompliance following the issuance of these Issues with certain requirements of the Code and covenants of the bond resolution may result in the inclusion 0 of interest on the Issues in gross income of the recipient for United States or in taxable net income of individuals, estates or trusts for State of Minnesota income tax purposes. No provision has been made for redemption of the 21 - ------..- Issues, or for an increase in the interest rate on the Issues, in the event that interest on the Issues becomes subject to United States or State of Minnesota income taxation, retroactive to the date of issuance. The 1995 Minnesota Legislature has enacted a statement of intent that interest on obligations of Minnesota 0 governmental units and Indian tribes be included in net income of individuals, estates and trusts for Minnesota income tax purposes if a court determines that Minnesota's exemption of such interest unlawfully discriminates against interstate commerce because interest on obligations of governmental issuers located in other states is so included. This provision applies to taxable years that begin during or after the calendar year in which any such court decision becomes final, irrespective of the date on which the obligations were issued. The City is not aware of any judicial decision holding that a state's exemption of interest on its own bonds or those of its political subdivisions or Indian tribes, but not of interest on the bonds of other states or their political subdivisions or Indian tribes, unlawfully discriminates against interstate commerce or otherwise contravenes the United States Constitution. Nevertheless, the City cannot predict the likelihood that interest on the Issues would become taxable under this Minnesota statutory provision. State Economy; Local Government Aids: State cash flow problems could affect local governments and possibly increase property taxes. Continuing Disclosure: A failure by the City to comply with the Undertaking for continuing disclosure (as described herein) will not constitute an event of default on the Issues. Any such failure must be reported in accordance with the Rule and must be considered by any broker, dealer, or municipal securities dealer before recommending the purchase or sale of the Issues in the secondary market. Such a failure may adversely affect the transferability and liquidity of the Issues and their market price. Year 2000 Issues: Background. The "Year 2000" issue is the result of computer programs being written using two digits rather than four to define the applicable year. Computer programs that have date-sensitive software may 0 recognize a date using "00" as the year 1900 rather than the year 2000. If not corrected, many computer applications could fail or create erroneous results, possibly affecting an organization's operations, financial condition, or ability to make timely payments on its indebtedness. Year 2000 Efforts of the City: Assessment in Progress. but Incomplete. The City has not completed its assessment of Year 2000 issues and thus offers no assurance that the consequences of Year 2000 issues will not materially affect the City 's operations, financial condition, or ability to make timely payments on its indebtedness. The City first began to address this issue in 1997. All City Departments are currently involved in Inventory and Assessment, Repair and Replacement and Contingency Planning. As of March, 1999, the City was confident that it could deliver all of its basic services on and after January 1,2000. The City is aware, however, that addressing the Year 2000 problem is a global issue. Events outside the control of the City may impact its ability to provide basic services. Although the City believes that major problems will not occur, contingency plans will be prepared. Year 2000 Efforts of DTC: Refer to DTC's Web site at http://www.dtc.org for the latest information regarding its Year 2000 efforts. Year 2000 Efforts of Bankers Trust: Refer to Bankers Trust Web site at http://www.bankerstrustiowa.com for the latest information regarding its Year 2000 efforts. Book-Entry-Only System: The timely credit of payments for principal and interest on the Issues to the accounts of the Beneficial Owners of the Issues may be delayed due to the customary practices, standing instructions or for other unknown reasons by DTC participants or indirect participants. Since the notice of redemption or other notices to holders of these obligations will be delivered by the City to DTC only, there may be a delay or failure by DTC, DTC 0 participants or indirect participants to notify the Beneficial Owners of the Issues. 22 --.-- VALUATIONS 0 MINNESOTA VALUATIONS; PROPERTY TAXES All non-exempt property is subject to taxation by local taxing districts. The total tax rate is determined by dividing each taxing district's dollar levy (budget less aids and revenues) by its total tax capacity. Exempt real property includes Indian lands, public property, and educational, religious and charitable institutions. Most personal property is exempt from taxation (except investor-owned utility mains, generating plants, etc.). At least one-fourth of all real properties are appraised yearly by local or county assessors who are directed by statute to appraise each parcel according to its estimated market value (EMV). The assessors classify all property subject to the general property tax and apply statutory percentages to the EMV to determine the tax capacity upon which tax capacity rates are computed. Significant major classifications and the percentages by which tax capacity is determined are: Type of Property 1997/98 1998/99 1999/2000 Residential homestead! First $75,000 - 1.0% First $75,000 - 1.00% First $76,000 - 1.00% Over $75,000 - 1.85% Over $75,000 - 1.70% Over $76,000 - 1.65% Agricultural homesteadl First $75,000 HGA2 - 1.0% First $75,000 HGA - 1.0% First $76,000 HGA - 1.20% Over $75,000 HGA . 1.85% Over $75,000 HGA - 1.70% Over $76,000 HGA - 1.65% Land to 320A - .4% - 0.9% Land to 320A . .35% - 0.8% Land to 320A - .35% - 0.8% Land excess - 1.40% Land excess - 1.25% Land excess - .80% 0 Agricultural non-homestead Land - 1.40% Land - 1.25% Land - 1.20% Seasonal recreational residential First $75,000 - 1.4% First $75,000 - 1.25% First $76,000 - 1.20% Over $75,000 - 2.5% Over $75,000 - 2.2% Over $76,000 - 1.65% Residential non-homestead: 1-3 units 1 unit - First $75,000 - 1.9% 1 unit - First $75,000 - 1.25% 1 unit - First $76,000 - 1.20% 4 or more Over $75,000 - 2.1 % Over $75,000 - 1.70% Over $76,000 - 1.65% Selected small cities with 4 or 2-3 units - 2.10% 2-3 units. 1.70% 2-3 units - 1.65% more units3 4 or more - 2.90% 4 or more - 2.50% 4 or more - 2.40% Small City - 2.3% Small City - 2.15% Small City- 2.15% Industrial/CommerciallUtility4 First $150,000 - 2.7% First $150,000 - 2.45% First $150,000 - 2.40% Excess - 4.00% Excess - 3.50% Excess - 3.40% 1 A residential property qualifies as "homestead" if it is occupied by the owner or a relative of the owner on the assessment date. 2 House/garage/one acre. , 3 Cities of 5,000 population or less and located entirely outside the seven-county metropolitan area and the adjacent nine- 0 county area and whose boundaries are 15 miles or more from the boundaries of a Minnesota city with a population over 5,000. 4 The estimated market value of utility property is determined by the Minnesota Department of Revenue. 23 CURRENT PROPERTY VALUATIONS Estimated Full Value of Taxable Property, 1998/99 $818,402,4455 0 1998/99 Assessor's 1998/99 Taxable Net Tax Market Value Capacity Real Estate $725,530,000 $14,524,110 Personal Property 7,754,400 271 ,406 Total Valuation $733,284,400 $14,795,516 Less: Captured Tax Increment Tax Capacity6 -1,531,218 Fiscal Disparities Contribution7 -1,514,991 Taxable Net Tax Capacity $11,749,307 Plus Fiscal Disparities Distribution3 1.753,515 Adjusted Taxable Net Tax Capacity $13,502,822 0 s According to the Minnesota Department of Revenue, the Assessor's Taxable Market Value (the "ATMV") for the City of Hopkins is about 89.5% of the actual selling prices of property most recently sold in the City. That sales ratio was calculated by comparing the selling prices with the A TMV. Dividing the A TMV of real estate by .895 and adding personal property and mobile home ATMV, if any, results in a market value of taxable property for the City of $818,402,445. 6 The $1,531.218 tax increment value shown above represents the captured net tax capacity of a tax increment financing district(s) in the City of Hopkins. Taxes collected on property in the tax increment district(s) accrue to the City to pay debt service on outstanding tax increment bonds. 7 Each community in the seven-county metropolitan area contributes 40% of its new industrial and commercial valuation to an area pool which is then distributed among the municipalities on the basis of population, special 0 needs. etc. Each governmental unit makes a contribution and receives a distribution--sometimes gaining and sometimes losing net tax capacity for tax purposes. Taxes are spread on the basis of taxable net tax capacity. 24 1998/99 NET TAX CAPACITY BY CLASSIFICATION 0 1998/99 Percent of Total Net Tax Caoacity Net Tax Caoacity , Residential $5,333,327 36.05% Railroad operating property 35,442 0.24% Commercial/industrial 6,128,684 41.42% Non-homestead residentiaVmultiple dwelling 3,022,104 20.43% Commercial & seasonal recreational 2,368 0.02% Non-profit community association 2,185 0.01% Personal property 271.406 1.83% Total $14.795.516 100.00% TREND OF VALVA TIONS Assessor's Adjusted Levy Taxable Net Tax Taxable Net Year Market Value Caoacity! Tax Caoacity2 1994/95 $596,895,300 $15,510,773 $14,603,004 1995/96 608,180,200 15,628,435 14,726,707 1996/97 629,579,800 16,056,895 3 15,190,269 3 1997/98 662,430,700 14,984,233 13,817,231 3 3 1998/99 733,284,400 14,795,516 13,502,822 0 LARGER TAXPAYING PARCELS 1998/99 1998/99 Taxable Net Tax Taxpayer Type of Prollerty Market Value Caoacity Super Valu Stores Inc. Industrial $26,926,000 $940,835 Duke Realty Investments Inc. IndustriaVcommercial 12,844,800 446,418 Southwest Real Estate Inc. Apartments 11,757,000 293,925 Ramsgate Apartments LLC Apartments 10,237,000 243,640 Alliant Techsystems, Inc. Industrial 6,030,500 209,493 Glaser Financial Group, Inc. Apartments 7,742,500 193,563 Fleming Companies Industrial 5,299,800 183,918 Christian Salvesen Inc. Industrial 4,992,000 173,145 Century North Construction Co. Apartments 6,891,700 172,293 Auburn Limited Partnership Apartments 6,556,000 161,461 Source: Valuations, Trend of Valuations and Larger Taxpaying Parcels have been furnished by Hennepin County. ! Net tax capacity is before fiscal disparities adjustments and includes tax, increment values. 2 Adjusted taxable net tax capacity is after fiscal disparities adjustments and does not include tax increment values. 0 3 The decline in Net Tax Capacity values is due to changes made by the 1997 Legislature which resulted in lower percentages applied against Taxable Market Value to compute Net Tax Capacity values for taxes beginning in 1998. 25 DEBT DIRECT DEBT 0 Long- Term General Obligation Debt (Includes the Issues of This Offering) Total G.O. debt being paid from taxes $ 1,870,000 Total G.O. debt being paid from tax increment revenues 7,853,543 Total G.O. debt being paid from special assessments and taxes 2,065,000 Total G.O. debt being paid from housing improvement area fees 6,455,000 Total G.O. debt being paid from storm sewer utility revenues 3,620,000 Total Long-Term General Obligation Debt $21,863,543 Less: Funds on hand for debt redemption as of 05/31/99 I -282,175 Net Long-Term General Obligation Debt $21,581,368 DEBT LIMIT The statutory limit on debt of Minnesota municipalities other than school districts or cities of the first class (Minnesota Statutes, Section 475.53, subd. 1) is 2% of the assessor's estimated market value of all taxable property within its boundaries. "Net debt" (Minnesota Statutes, Section 475.51, subd. 4) is the amount remaining after deducting from gross debt: (1) obligations payable wholly or partly from special assessments levied against 0 benefitted property; (2) warrants or orders having no definite or fixed maturity; (3) obligations issued to finance any public revenue producing convenience; (4) obligations issued to create or maintain a permanent improvement revolving fund; (5) funds held as sinking funds for payment of principal and interest on debt other than those deductible under 1-4 above; (6) other obligations which are not to be included in computing the net debt of a municipality under the provisions of the law authorizing their issuance. Assessor's Taxable Value of Taxable Property $733,284,400 Multiply by 2% 0.02 Statutory Bonded Debt Limit $14,665,688 Less: Long-Term Debt Outstanding Being Paid Solely from Taxes -1,870,000 Unused Debt Limit $12,795,688 I Funds on hand for debt redemption (available for payment of principal and interest) have been deducted from 0 total g.o. debt to determine net g.o. debt. 26 SUMMARY OF GENERAL OBLIGATION DEBT 0 Original Final Issue Dated Amount Outstanding Maturity Paid From Taxes Improvement Revolving 3/1/90 $485,000 $90,000 2/01 2001 Park & Recreation 10/15/93 $2,065,000 1,780,000 2/01 2011 Paid From Tax Increment Taxable Redevelopment 2/1/92 $2,888,543 1,083,543 2/01 2006 Redevelopment 10/15/93 $3,075,000 2,945,000 2/01 2009 Redevelopment 10/15/93 $1,135,000 600,000 6/01 2003 Tax Increment, Ser. C 10/1/96 $500,000 500,000 2/01 2016 Taxable Tax Increment, Ser. D 10/1196 $680,000 680,000 2/01 2011 Tax Increment 1/1/97 $2,240,000 2,045,000 2/01 2012 Paid From Taxes/Assessments Improvement Revolving 8/1/92 $2,000,000 1,215,000 2/01 2008 Improvement Revolving (this issue) 8/1/99 $850,000 850,000 2/01 2010 Paid From Housing Imp. Area Fees Taxable Housing 9/1/95 $815,000 760,000 2/01 2012 Taxable Housing 5/15/97 $1,700,000 1,665,000 2/01 2018 Taxable Housing 5/1/99 $1,465,000 1,465,000 2/01 2021 0 Taxable Housing (this issue) 8/1/99 $2,565,000 2,565,000 2/01 2021 Paid From Utility Revenues Storm Sewer Ref. Rev. 10/15/93 $2,445,000 2,075,000 2/01 2010 Storm Sewer Revenue (this issue) 8/1/99 $1,545,000 1,545,000 2/01 2015 0 27 --.---- SUMMARY OF GENERAL OBLIGATION DEBT (continued) 0 Total Total Total Principal Year Principal Interest P&I Outstanding % Paid 2000 $1,255,000 $1,113,557 $2,368,557 $20,608,543 5.74% 2001 1,225,847 1,262,663 2,488,510 19,382,696 11.35% 2002 1,286,502 1,285,832 2,572,334 18,096,194 17.23% 2003 1,368,138 1,247,285 2,615,423 16,728,056 23.49% 2004 1,270,620 1,205,610 2,476,230 15,457,436 29.30% 2005 1,416,152 1,107,182 2,523,334 14,041,284 35.78% 2006 1,586,284 928,351 2,514,635 12,455,000 43.03% 2007 1,810,000 783,401 2,593,401 10,645,000 51.31 % 2008 1,880,000 693,371 2,573,371 8,765,000 59.91 % 2009 1,835,000 601,969 2,436,969 6,930,000 68.30% 2010 1,205,000 530,424 1,735,424 5,725,000 73.81 % 2011 900,000 471,325 1,371,325 4,825,000 77.93% 2012 795,000 424,293 1,219,293 4,030,000 81.57% 2013 530,000 393,145 923,145 3,500,000 83.99% 2014 565,000 368,529 933,529 2,935,000 86.58% 2015 600,000 340,857 940,857 2,335,000 89.32% 2016 500,000 310,256 810,256 1,835,000 91.61 % 2017 415,000 287,850 702,850 1,420,000 93.51 % 2018 440,000 266,470 706,470 980,000 95.52% 2019 305,000 254,285 559,285 675,000 96.91 % 0 2020 325,000 246,718 571,718 350,000 98.40% 2021 350,000 237,537 587,537 0 100.00% 0 28 OVERLAPPING DEBT 0 1998/99 Adj. City's Taxable Net % Total Proportionate Taxing District Tax Capacity In City G.O. Debt' Share $1,024,048,441 2 Hennepin County 1.3186% $187,500,000 $2,472,324 1.S.D. No. 270 (Hopkins) 80,246,514 16.6275% 48,565,000 8,075,156 1.S.D. No. 283 (St. Louis Park) 39,615,721 0.4034% 11,675,0003 47,098 Metropolitan Council 2,090,818,016 0.6458% 110,320,000 749,025 Suburban Hennepin Reg. Park Dist. 756,178,289 1.7857% 12,170,000 217 .316 City's Share of Overlapping Debt $11,560,919 0 I Does Ilot include non-general obligation debt or general obligation tax/aid anticipation certificates of indebtedness. 2 Hennepin County also has $106,100.000 Solid Waste Resource Recovery General Obligation Revenue Bonds outstanding which are payable entirely from the County's solid waste enterprise fund, $4,500,000 General . Obligation Capital Notes outstanding which are payable entirely from revenues of the Hennepin County Medical Center, and $18,285,000 General Obligation Bonds, Series 1997 A (Century Plaza Debt) which is expected to be paid from building rental fees from County departments and non-County tenants. These issues have not been included in the overlapping debt or debt ratios. 0 3 The above debt includes all outstanding general obligation debt supported by taxes of the Metropolitan Council. As of 3/1199, the Council also had outstanding $500,935,000 general obligation sewer revenue bonds and loans supported entirely by revenues. 29 DEBT RATIOS Debt! Debt! 0 Market Value 16,559 G.O. Debt ($818,402,445) Population Direct G.O. debt being paid from: Taxes $ 1,870,000 Tax increment revenues 7,853,543 Special assessments and taxes 2,065,000 Housing improvement area fees 6,455,000 Storm sewer utility revenues 3,620,000 Total Long-Term General Obligation Debt $21,863,543 Less: Funds on hand for debt redemption as of 05/31/99 1 -282,175 Net Long-Term General Obligation Debt $21,581,368 2.64% $1,303.30 City's Share of Total Overlapping Debt $11,560,919 1.41% $698.17 FUTURE FINANCING The City has no plans to issue additional debt within the next three months. The Metropolitan Council tentatively plans to issue $14,000,000 General Obligation Sewer Bonds on July 14, 1999. 0 LEVY LIMITS All counties and all cities over 2,500 population are subject to general property tax levy limits for taxes collected in 1998, 1999 and 2000. These levy limits do not apply to certain "special levies" which include levies made to pay debt service on bonded indebtedness. For more detailed information about Minnesota levy limits, contact the Minnesota Department of Revenue or Ehlers & Associates. 1 Funds on hand for debt redemption (available for payment of principal and interest) have been deducted from 0 total g.o. debt to determine net g.o. debt. 30 ,<., .....""""~~,, TAX LEVIES AND COLLECTIONS 0 TAX COLLECTIONS Original Gross Total Collected Collected % Tax Year Tax Levy I Following Year to Date 2 Collected 1994/95 $4,953,600 $4,922,537 $4,951,191 99.95% 1995/96 5,117,000 5,090,734 5,109,610 99.86% 1996/97 5,178,800 5,135,835 5,163,717 99.71 % 1997/98 5,194,184 5,166,160 5,166,160 99.46% 1998/99 5,382,640 In process of collection Property taxes are collected in two installments in Minnesota--the first by May 15 and the second by October 15. Mobile home taxes are collectible in full by August 31. Minnesota Statutes require that levies (taxes and special assessments) for debt service be at least 105% of the actual debt service requirements to allow for delinquencies. TAX CAPACITY RATES 3 1994/95 1995/96 1996/97 1997/98 1998/99 Hennepin County 37.454% 37.270% 35.515% 38.386% 40.994% City of Hopkins 27.191% 28.542% 27.650% 30.455% 32.442% 0 I.S.D. No. 270 (Hopkins) 75.076% 71.182% 61.884% 61.063% 58.941% Special Districts 4 6.357% 6.900% 6.659% 7.483% 8.553% Total 146.078% 143.894% 131.708% 137.387% 140.930% The above total net tax capacity rates are for taxpayers living within I.S.D. 270 (Hopkins). Following are the tax rates for I.S.D. 283 which lies in a small portion of the City. I.S.D. No. 283 (St. Louis Park) 71.212% 74.317% 62.954% 64.395% 63.140% Source: Tax Collections and Tax Capacity Rates have been furnished by Hennepin County. I The Original Gross Tax Levy includes the property tax levy actually spread upon taxable property and state credits and aids, i.e. HACA, disparity reduction aid, equalization aid, etc. 2 Collections are through May 15, 1999 and include abatements, cancellations, mobile home collections and ;; credits, i.e. HACA aid, disparity reduction, and equalization aid. In 1998/99, $960,734 (17.85% of the original gross tax levy) will be paid by sources other than a tax levy, reducing the obligation of homestead taxpayers. 3 After reduction for state aids. 0 4 Special Districts are the Metropolitan Council, Mosquito Control, Metropolitan Transit District, Hennepin County Parks, Hennepin County Park Museum and HCRRA. 31 THE ISSUER. 0 CITY GOVERNMENT The City of Hopkins was organized as a municipality in 1893 and comprises four square miles. The City operates under a home rule charter form of government consisting of a five-member City Council, of which the Mayor is a voting member. The City Manager, Assistant Manager, City Clerk, and Finance Director are responsible for administrative duties and financial records. The Economic Development Director oversees City activities in the areas of planning, development and housing. The Housing Coordinator is responsible for all City housing programs. EMPLOYEES; PENSIONS The City has 105 full-time, 10 part-time, and 40 seasonal employees including 23 police officers. All full-time and certain part-time employees of the City are covered by defined benefit pension plans administered by the Public Employee Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple-employer retirement plans. PERA members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security. See the Notes to Financial Statements in Appendix A for a detailed description of the Plans. Recognized and certified bargaining units are as follows: Contract Bargaining Unit Expiration Date Hopkins Municipal Employees Association 12/3 1/99 0 International Union of Operating Engineers (Local 49 IUOE) 12/31/99 Hopkins Police Officer Association L.E.L.S. Local 151 12/31/99 Hopkins Police Dispatcher & Public Service Officer Assoc. L.E.L.S. 12/31/99 Hopkins Police Sergeants Union L.E.L.S. Local 171 12/31/99 FUNDS ON HAND (INCLUDING INVESTMENTS, AS OF 05/31//99) Fund Amount General Fund $ 516,559 Special Revenue Funds 3,052,987 Tax Increment Funds 800,553 Debt Service Funds 282,175 Capital Funds 2,878,910 Enterprise Funds 2,230,809 Internal Service Fund 1.191.190 Total $109511ln 0 32 --- -~ LITIGATION 0 There is no litigation threatened or pending questioning the organization or boundaries of the City or the right of any of its officers to their respective offices or in any manner questioning their rights and power to execute and deliver these Issues or otherwise questioning the validity of these Issues. The City Attorney reports that any litigation and claims currently pending against the City are being handled by the City's insurance carrier or outside counsel and will not affect the issuance of these Issues. DEBT PAYMENT HISTORY The City has never defaulted on the payment of principal and interest on its debt. 0 0 33 GENERAL INFORMATION 0 LOCATION The City of Hopkins, with a 1990 U.S. Census of 16,534 and a current State Demographer's estimated population of 16,559, comprises an area of four square miles and is a suburb of the Minneapolis-St. Paul metropolitan area located in Hennepin County. It is eight miles southwest of downtown Minneapolis. The City is served by Interstate Highway No. 494, U.S. Highway 169, and State Highway No.7 and a system of county highways. LARGER EMPLOYERS Larger employers in the City include the following: No. of Firm Type of BusinesslProduct Emoloyeesl Super Valu Inc. Food distributor/retailer 1,400 Alliant Techsystems Military ordinance 1,200 Thermotech Precision injection moldings 441 2 1.S.D. 270 (Hopkins) Education 216 Advance Circuits Printed circuit boards 207 Quality Assured Label, Inc. Printing labels 185 Hopkins Care Center Nursing home 170 Chapel View Care Center Nursing home 170 0 City of Hopkins Municipal government/services 165 Sungard Financial Systems Data processing 157 EDCO Products, Inc. Outdoor building products 135 Rainbow Foods Corporate offices 115 Mactac Engineered Products Printing company 115 Reuter Manufacturing, Inc. High precision machining 111 Innovex, Inc. Lead wire assembly 100 NAPCO Intemationallnc. Defense related sales 100 In-Line Corp. Contract packaging/automated assembly 100 Source: Written surveys, August, 1998 and March, 1999; Community Profile (City of Hopkins), Minnesota Department of Trade and Economic Development, August, 1996; and the Minnesota Manufacturers Register 1999. I Includes full-time, part-time and seasonal. 0 2 Represents employees working in school buildings located within the City. 34 U.S. CENSUS DATA 0 Population Trend: City of Hopkins 1980 U.S. Census 15,336 1990 U.S. Census 16,534 Current State Demographer's Estimate 16,559 Percent of Change 1980 - 1990 + 7.81% IncomelAgelEducation Statistics (1990) City of Hennepin State of Hopkins County Minnesota 1989 per capita income $17,106 $18,496 $14,389 1989 median household income $29,584 $35,659 $30,909 1989 median family income $36,008 $44,189 $36,916 Median age 31.3 yrs. 32.7 yrs. 32.5 yrs. Median value owner occupied housing units $86,100 $86,700 $74,000 Median contract rent $493 $452 $384 Housing Statistics 0 City of Hopkins City of Hopkins Percent of 1980 1990 Change Housing Units 7,257 8,572 + 18.12% Source: Census of Population and Housing. EMPLOYMENTIUNEMPLOYMENT RATES Rates are not compiled for individual communities within counties. Employment Unemployment Year Hennepin County Hennepin County State of Minnesota 1995 622,561 3.0% 4.0% 1996 617,137 3.0% 4.0% 1997 628,325 2.4% 3.3% 1998 638,297 1.9% 2.5% 1999, May 648,392 1.6% 2.0% Source: Minnesota Department of Economic Security. 0 35 BUILDING PERMITS 1995 1996 1997 1998 1999 I 0 Single Family Homes No. of new homes 4 14 57 9 5 Valuation $552,200 $1,391,200 $5,297,000 $1,551,600 $778,625 Single/Multiple Family Additions, remodelings 285 330 717 362 109 Valuation $10,529,485 $4,501,578 $4,367,907 $2,662,470 $5,791,655 Multiple Family Dwellings No. of new buildings 0 0 2 0 0 Valuation $0 $0 $3,500,000 $0 $0 Commercial/Industrial/Other No. of new buildings 3 5 7 6 1 Valuation $681,600 $6,752,000 $4,213,132 $5,133,000 $16,900,000 Additions, remodelings 98 92 103 86 35 Valuation $2,885,330 $5,747,018 $3,459,196 $2,345,245 $6,244,603 Total Permits 390 886 0 441 463 150 Total Valuations $14,648,615 $18,391,796 $20,837,235 $11,692,315 $29,714,883 FINANCIAL SERVICES Financial institutions located in the City are: Hopkins Schools Credit Union Norwest Bank Minnesota, National Association Super Valu Employees Credit Union U.S. Bank National Association Source: American Financial Directory. I As ofJune 30, 1999. 0 36 EDUCATION 0 1.S.D. No. 270 (Hopkins) operates four elementary schools plus a community service center in the City. The District, with a total enrollment of 8,324, as of February 26, 1999, employs a total of 1,585 people. In addition, a small portion of the City is served by 1.S.D. 283 (St. Louis Park). Four year college programs and vocational-technical training are available throughout the Minneapolis-St. Paul metropolitan area. MEDICAL FACILITIES Nursing homes located in the City are as follows: Name of Facility Type of Facility Beds Chapel View Care Center Nursing home 128 Hopkins Care Center Nursing home 157 Source: Directory of Licensed and Certified Health Care Facilities and Services, Minnesota Department of Health ( 1997). N:\Minnsola\HOPKINSIANAL YSTIos2.mtf RF/sjl 0 0 37 City of Hopkins, Minnesota $2,565,000 Taxable G.O. Housing Improvement Area Bonds, Series 1999B Bond Years Report 0 Average Maturity: 14.09259 Cumulative Maturity Bond Bond Maturity Value Years Years 08/01/99 0.00 0.00 02/01/02 65,000.00 162.50 162.50 02/01/03 70,000.00 245.00 407.50 02/01/04 75,000.00 337.50 745.00 02/01/05 80,000.00 440.00 1,185.00 02/01/06 85,000.00 552.50 1,737.50 02/01/07 90,000.00 675.00 2,412.50 02/01/08 95,000.00 807.50 3,220.00 02/01/09 100,000.00 950.00 4,170.00 02/01/10 110,000.00 1,155.00 5,325.00 - 02/01/11 115,000.00 1,322.50 6,647.50 02/01/12 120,000.00 1 ,500.00 8,147.50 02/01/13 130,000.00 1,755.00 9,902.50 02/01/14 140,000.00 2,030.00 11,932.50 0 02/01/15 150,000.00 2,325.00 14,257.50 02/01/16 160,000.00 2,640.00 16,897.50 02/01/17 170,000.00 2,975.00 19,872.50 02/01/18 180,000.00 3,330.00 23,202.50 02/01/19 195,000.00 3,802.50 27,005.00 02/01/20 210,000.00 4,305.00 31,310.00 02/01/21 225,000.00 4,837.50 36,147.50 0 38 City of Hopkins, Minnesota $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C 0 Bond Years Report Average Maturity: 9.01456 Cumulative Maturity Bond Bond Maturity Value Years Years 08/01/99 0.00 0.00 02/01/00 55,000.00 27.50 27.50 02/01/01 70,000.00 105.00 132.50 02/01/02 75,000.00 187.50 320.00 02/01/03 80,000.00 280.00 600.00 02/01/04 80,000.00 360.00 960.00 02/01/05 85,000.00 467.50 1,427.50 02/01/06 90,000.00 585.00 2,012.50 02/01/07 95,000.00 712.50 2,725.00 02/01/08 100,000.00 850.00 3,575.00 02/01/09 100,000.00 950.00 4,525.00 02/01/10 105,000.00 1,102.50 5,627.50 02/01/11 110,000.00 1,265.00 6,892.50 0 02/01/12 115,000.00 1 ,437.50 8,330.00 02/01/13 120,000.00 1,620.00 9,950.00 02/01/14 130,000.00 1,885.00 11,835.00 02/01/15 135,000.00 2,092.50 13,927.50 0 39 City of Hopldns, Minnesota $850,000 G.O. Permanent Improvement Revolving Fund Bonds, Series 1999D Bond Years Report Average Maturity: 6.38824 0 Cumulative Maturity Bond Bond Maturity Value Years Years 08/01/99 0.00 0.00 02/01/01 70,000.00 105.00 105.00 02/01/02 70,000.00 175.00 280.00 02/01/03 75,000.00 262.50 542.50 02/01/04 80,000.00 360.00 902.50 02/01/05 80,000.00 440.00 1 ,342.50 02/01/06 85,000.00 552.50 1,895.00 02/01/07 90,000.00 675.00 2,570.00 02/01/08 95,000.00 807.50 3,377.50 02/01/09 100,000.00 950.00 4,327.50 02/01/10 105,000.00 1 ,102.50 5,430.00 0 0 40 APPENDIX A 0 EXCERPTS FROM FINANCIAL STATEMENTS Reproduced on the following pages are excerpts from the City's audited Financial Statements for the years ending 1996, 1997 and 1998. The Statements have been prepared by the City and audited by a certified public accountant. Notes (included here for 1998) are an integral part of the audits and any judgment of the financial statement should be based on the statement as a whole. 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Nt!..: ~ ~ ~\ .~ ~ ~~\ 13 . ~.._o.,\ ~~:g~~c: 1 "'. ~.........I=;.!::.::tc!' .};::~~~~ 0 _ "I:t,o..,.....-r<"li ... ...- ~13 ~ ~ :q~...~"'~ ~ -j:!'" ... - GO ~Ntn .,.:"" .... ... - ~~ ~ ... g ~~ ;1 III n 0:: en ~ I>l \So ~ i8 ~. s g ~ ~ c1i~ , i ~o ~ ~ a r1i g ~ . i ~ 8 ~ R el ~ - "'13 >O'i u U ! ! i B ; ~~i ~~ t 6 Ii ~ 'u ~o 5 ffi '< ~ I l' ; i 11 t. g 15 Ii ! li1i ~ Iii" In ~~ e 8 i E] g 1 ~!&Bb e~ B'< I i"lUli I iq ..l] 1118 u~~ ee It!l'l!l'~ iliiliigl!ll~ 'lii~ iii ~~ 0 8 ~ol~.~~ g ~ B& 0 ~~ ~~ A-1S L!~~ I 470 Pillsbury Center APPIENDR}{ IS 200 South Sixth Street Minneapolis MN 55402 I ~ I (612) 337-9300 telephone cGJj~mJJ (612) 337-9310 fax 0 C H ART ERE D http://www.kennedy-graven.com $2.565,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1999B City of Hopkins Hennepin County, Minnesota We have acted as bond counsel in connection with the issuance by the City of Hopkins, Hennepin County, Minnesota, of its Taxable General Obligation Housing Improvement Area Bonds, Series 1999B, originally dated as of August 1, 1999, in the total principal amount of $2,565,000. For the purpose of rendering this opinion we have examined certified copies of certain proceedings taken by the City in the authorization, sale and issuance of the Bonds, including the fonTI of the Bonds, and certain other proceedings and documents furnished by the City. From our examination of such proceedings and other documents, assuming the genuineness of the signatures thereon and based upon laws, regulations, rulings and decisions in effect on the date hereof, it is our opinion as of the date hereof that: 1. The Bonds are in due fOnTI, have been duly executed and delIvered, and are valid and binding general obligations of the City, enforceable in accordance with their tern1S, except as such enforcement may be lImIted by Minnesota or Ul1ltcd States laws relating to bankruptcy, reorganization, moratorium or creditors' rights. 0 2. The prmcipal of and interest on the Bonds are payable primarily from certain housing improvement fees levied or to be levied on property within the housing improvement area in which the housing improvements are located, but if necessary for the payment thereof ad valorem taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to any limitation as to rate or amount. 3. We express no opinion as to the status of the interest on the Bonds for federal or state income tax purposes. We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. Dated at Minneapolis, Minnesota, 0 518-164995 B-1 HP 110-60 I ~ I 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 I ~Effi I (612) 337-9300 telephone 0 (612) 337-9310 fax C H ART ERE 0 http://www.kennedy-graven.com $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C City of Hopkins Hennepin County, Minnesota We have acted as bond counsel in connection with the issuance by the City of Hopkins, Hennepin County, Minnesota, of its General Obligation Storm Sewer Revenue Bonds, Series 1999C, originally dated as of August 1, 1999, in the total principal amount of$I,545,000. For the purpose of rendering this opinion we have examined certified copies of certain proceedings taken by the City in the authorization, sale and issuance of the Bonds, including the form of the Bonds, and certain other proceedings and documents furnished by the City. From our examination of such proceedings and other documents, assuming the genuineness of the signatures thereon and the accuracy of the facts stated therein and continuing compliance by the City with its covenants to comply with the Internal Revenue Code of 1986, as amended, and based upon laws, regulations, rulings and decisions in effect on the date hereof, it is our opinion as of the date hereof that: 1. The Bonds are in due form, have been duly executed and delivered, and are valid and 0 binding general obligations of the City, enforceable in accordance with their terms, except as such enforcement may be limited by Minnesota or United States laws relating to bankruptcy, reorganization, moratorium or creditors' rights. 2. The principal of and interest on the Bonds are payable from net revenues of the storm sewer system of the City, but if necessary for the payment thereof, ad valorem taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to any limitation as to rate or amount. 3. Interest on the Bonds is not includable in gross income of the recipient for federal income tax purposes or in taxable net income for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax imposed on individuals, trusts and estates, but such interest is includable in the computation of "adjusted current earnings," used in the calculation of federal alternative minimum taxable income of corporations, and is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income and the alternative minimum tax base. We express no opinion regarding other federal or state tax consequences arising with respect to the Bonds. The Bonds are not arbitrage bonds and are not private activity bonds. We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. Dated at Minneapolis, Minnesota, 0 SJ8-164995 B-2 HPllO-60 IO~~ I 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 I ~ 1 (612) 337-9300 telephone ~~1 (612) 337-9310 fax http://www.kennedy-graven.com 0 c H ART ERE 0 $850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D City of Hopkins Hennepin County, Minnesota We have acted as bond counsel in connection with the issuance by the City of Hopkins, Hennepin County, Minnesota, of its General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D, originally dated as of August 1, 1999, in the total principal amount of $850,000. For the purpose of rendering this opinion we have examined certified copies of certain proceedings taken by the City in the authorization, sale and issuance of the Bonds, including the form of the Bonds, and certain other proceedings and documents furnished by the City. From our examination of such proceedings and other documents, assuming the genuineness of the signatures thereon and the accuracy of the facts stated therein and continuing compliance by the City with its covenants to comply with the Internal Revenue Code of 1986, as amended, and based upon laws, regulations, rulings and decisions in effect on the date hereof, it is our opinion as of the date hereof that: 1. The Bonds are in due form, have been duly executed and delivered, and are valid and binding general obligations of the City, enforceable in accordance with their terms, except as such 0 enforcement may be limited by Minnesota or United States laws relating to bankruptcy, reorganization, moratorium or creditors' rights. 2. The principal of and interest on the Bonds are payable from special assessments levied or to be levied on property specially benefitted by local improvements and ad valorem taxes for the City's share of the cost of the improvements, but if necessary for the payment thereof additional ad valorem taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to any limitation as to rate or amount. 3. Interest on the Bonds is not includable in gross income of the recipient for federal income tax purposes or in taxable net income for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax imposed on individuals, trusts and estates, but such interest is includable in the computation of "adjusted current earnings," used in the calculation of federal alternative minimum taxable income of corporations, and is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income and the alternative minimum tax base. We express no opinion regarding other federal or state tax consequences arising with respect to the Bonds. The Bonds are not arbitrage bonds and are not private activity bonds. We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. Dated at Minneapolis, Minnesota, 0 SlB-164995 B-3 HPIIO-60 _____~__. ______~___________ _~____ o_~___T__ - ---~--- -------~ -~-- ----------~ APPENDIX C 0 BOOK-ENTRY-ONL Y SYSTEM 1. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully-registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue exceeds $200 million, one certificate will be issued with respect to each $200 million of principal amount and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Unifonn Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial 0 relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchase of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confinnation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Securities with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities: DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which mayor may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in 0 effect from time to time. C-l 6. Redemption notices shall be sent to Cede & Co. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 0 7. Neither DTC nor Cede & Co. will consent or vote with respect to Securities. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Coo's consenting or voting rights to those Direct Participants to whose accounts the Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Principal and interest payments on the Securities will be made to DTC. DTC's practice is to credit Direct Participants' accounts on payable date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the Issuer or the Agent, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to the [Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to the [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with a demand for purchase or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participation on DTC's records. 0 10. DTC may discontinue providing its services as securities depository with respect to the Securities at any time by giving reasonable notice to the Issuer or the Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Security certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered. 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. 0 C-2 -- ------ ~~---- APPENDIX D 0 CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Hopkins, Minnesota (the "Issuer") in connection with the issuance of $3,210,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1999B; $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C; and $850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D (the "Securities"). The Securities are being issued pursuant to Authorizing Resolutions adopted by the City Council of the Issuer on , 1999 and Award Resolutions adopted by the City Council of the Issuer on July 20, 1999 (collectively, the "Resolutions") and delivered to the Purchaser(s) on the date hereof. Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of certain fmancial information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders of the Securities in order to assist the Participating Underwriters within the meaning of the Rule (defined herein) in complying with SEC Rule 15c2-12(b)(5). This Disclosure Certificate, together with the Resolutions, constitutes the written Undertaking required by the Rule. Section 2. Definitions. In addition to the defmed terms set forth in the Resolutions, which 0 apply to any capitalized term used in this Disclosure Certificate unless otherwise defmed in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Audited Financial Statements" means the Issuer's annual financial statements, prepared in accordance with generally accepted accounting principles ("GAAP") for Governmental Units as Prescribed by the Governmental Accounting Standards Board ("GASB "). "Fiscal Year" means the fiscal year of the Issuer. "Final Official Statement" means the deemed fmal official statement dated , 1999 plus the addendum thereto which together constitute the final official statement delivered in connection with the Securities, which is available from the MSRB. "Holder" means the person in whose name a security is registered or a beneficial owner of such a security. "Issuer" means the City of Hopkins, Minnesota which is the obligated person with respect to the Securities. 0 SJB-165000 HPllO-60 D-1 "Material Event" means any of the events listed in Section 5(a) of this Disclosure 0 Certificate. "MSRB" means the Municipal Securities Rulemaking Board located at 1150 18th Street, N.W., Suite 400, Washington, D.C. 20036. "NRMSIR" means any nationally recognized municipal securities infonnation repository as reco gnized from time to time by the SEC for purposes of the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Securities (including the Purchaser(s)) required to comply with the Rule in connection with the offering of the Securities. "Repository" means each NRMSIR and each SID, if any. "Rule" means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time, and including written interpretations thereof by the SEC. "SEC" means Securities and Exchange Commission. "SID" means any public or private repository or entity designated by the State of Minnesota as a state infonnation depository for the purpose of the Rule. As of the date of this Certificate, there 0 is no SID. Section 3. Provision of Annual Financial Infonnation and Audited Financial Statements. (a) The Issuer shall, as soon as available, but not later than 365 days after the end of the Fiscal Year commencing with the year that ends December 31, 1999, provide each Repository with an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross- reference other infonnation as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report and will be submitted as soon as available. (b) If the Issuer is unable or fails to provide to the Repositories an Annual Report by the date required in subsection (a), the Issuer shall send a notice of that fact to the NRMSIRs, the MSRB and SID. (c) The Issuer shall determine each year prior to the date for providing the Annual Report the name and address of each NRMSIR and the SID, if any. SJB-165000 0 HPll0-60 D-2 0 Section 4. Content of Annual Reoorts. The Issuer's Annual Report shall contain or incorporate by reference the following sections of the Final Official Statement: ; 1. Current Property Valuations. 2. Larger Taxpaying Parcels. 3. Direct Debt. 4. Overlapping Debt. 5. Debt Ratios. 6. Tax Levies & Collections. 7. Tax Capacity Rates. 8. Population Trend. 9. EmploymentlUnemployment. In addition to the items listed above, the Annual Report shall include Audited Financial Statements submitted in accordance with Section 3 of this Disclosure Certificate. Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the SEC. If the document incorporated by reference is a final official statement, it must also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated by reference. 0 Section 5. Reoorting of Material Events. (a) This Section 5 shall govern the giving of notices of the occurrence of any of the following events if material with respect to the Securities: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting [mancial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perfonn; 6. Adverse tax opinions or events affecting the tax-exempt status of the security; 7. Modifications to rights of security holders; 8. Bond calls; 9. Defeasances; 0 SJB-165000 HPllO-60 0-3 L '_'___' 10. Release, substitution or sale of property securing repayment of the securities; 0 and 11. Rating changes. (b) Whenever the Issuer obtains knowledge of the occurrence of a Material Event, the Issuer shall promptly file a notice of such occurrence with either all NRMSIRs or with the MSRB and with any SID. Notwithstanding the foregoing, notice of Material Events described in subsections (a)(8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Securities pursuant to the Resolutions. (c) Unless otherwise required by law and subject to technical and economic feasibility, the Issuer shall employ such methods of information transmission as shall be requested or recommended by the designated recipients of the Issuer's information. Section 6. Termination of Reporting Obligation. The Issuer's obligations under the Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all the Securities. Section 7. Agent. The Issuer may, from time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, 0 and may discharge any such agent, with or without appointing a successor dissemination agent. Section 8. Amendment: Waiver. Notwithstanding any other provision of the Resolutions or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause the undertakings to violate the Rule. The provisions of the Resolutions constituting the Undertaking and this Disclosure Certificate, or any provision hereof, shall be null and void in the event that the Issuer delivers to each then existing NRMSIR and the SID, if any, an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require the Resolutions and this Certificate are invalid, have been repealed retroactively or otherwise do not apply to the Securities. The provisions of the Resolutions constituting the Undertaking and this Disclosure Certificate may be amended without the consent of the Holders of the Securities, but only upon the delivery by the Issuer to each then existing NRMSIR and the SID, if any, of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of the Resolutions and this Disclosure Certificate and by the Issuer with the Rule. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that SJB-165000 0 HPll0-60 0-4 0 which is required by this Disclosure Certificate. If the Issuer chooses to include any infOlmation in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this ~ Certificate to update such infonnation or include it in any future Annual Report or notice of occurrence of a Material Event. Section 10. Default. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate any Holder of the Securities may take such actions as may be necessary and appropriate, including seeking mandate or specific perfonnance by court order, to cause the Issuer to comply with its obligations under the Resolutions and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel perfonnance. Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Participating Underwriters and Holders from time to time of the Securities, and shall create no rights in any other person or entity. IN WITNESS WHEREOF, we have executed this Certificate in our official capacities effective the day of , 1999. 0 CITY OF HOPKINS, MINNESOTA Mayor (SEAL) City Manager 0 SJB-165000 HPllO-60 0-5 -- -- --- --- - PROPOSAL FORM The City Counell July 20, 1999 0 City of Hopkins, Minnesota RE: $2,565,000 Taxable General Obligation Improvement Area Bonds, Series 1999B DATED: August 1, 1999 For all or none of the above Bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as stated in this Official Statement, we will pay you $ (not less than $2,516,300) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2002 % due 2009 % due 2016 % due 2003 % due 2010 % due 2017 % due 2004 % due 2011 % due 2018 % due 2005 % due 2012 % due 2019 % due 2006 % due 2013 % due 2020 % due 2007 % due 2014 % due 2021 % due 2008 % due 2015 We enclose our good faith deposit in the amount of $51,300, to be held by you pending delivery and payment. Alternatively, we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates, Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated July 0 8, 1999. This proposal is for prompt acceptance and is conditional upon deposit of said bonds to The Depository Trust Company, New York, New York in accordance with the Terms of Proposal. This proposal is subject to the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional information or corrections to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the Bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: A ward will be on a true interest eost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from August I, 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of ,1999. Attest: By: 0 Title: Title: , - PROPOSAL FORM The City Council July 20, 1999 City of Hopkins, Minnesota RE: $2,565,000 Taxable General Obligation Improvement Area Bouds, Series 1999B 0 DATED: August 1, 1999 For all or none of the above Bonds, in accordance with the Tenus of Proposal and tenus of the Global Book Entry System as stated in this Official Statement, we will pay you $ (not less than $2,516,300) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2002 % due 2009 % due 2016 % due 2003 % due 2010 % due 2017 % due 2004 % due 2011 % due 2018 % due 2005 % due 2012 % due 2019 % due 2006 % due 2013 % due 2020 ~ % due 2007 % due 2014 % due 2021 % due 2008 % due 2015 We enclose our good faith deposit in the amount of $51,300, to be held by you pending delivery and payment. Alternatively, we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates, Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated July 8, 1999. This proposal is for prompt acceptance and is conditional upon deposit of said bonds to The Depository Trust Company, New York, New York in accordance with the Tenus of Proposal. 0 This proposal is subject to the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional information or corrections to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the Bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: A ward will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from August 1, 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of ,1999. Attest: By: Title: Title: 0 PROPOSAL FORM The City Council July 20,1999 0 City of Hopkins, Minnesota RE: $2,565,000 Taxable General Obligation Improvement Area Bonds, Series 1999B DATED: August 1, 1999 For all or none of the above Bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as stated in this Official Statement, we will pay you $ (not less than $2,516,300) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2002 % due 2009 % due 2016 % due 2003 % due 2010 % due 2017 % due 2004 % due 2011 % due 2018 % due 2005 % due 2012 % due 2019 % due 2006 % due 2013 % due 2020 % due 2007 % due 2014 % due 2021 % due 2008 % due 2015 We enclose our good faith deposit in the amount of $5 I ,300, to be held by you pending delivery and payment. Alternatively, we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates, Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated July 0 8, 1999. This proposal is for prompt acceptance and is conditional upon deposit of said bonds to The Depository Trust Company, New York, New York in accordance with the Terms of Proposal. This proposal is subject to the City's covenant and agreement to enterinto a written undertaking to provide continuing disclosure under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional infonnation or corrections to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the Bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from August 1, 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of ,1999. Attest: By: 0 Title: Title: -~ ]PROPOSAlL JFORMI The City Council July 20, 1999 City of Hopldns, Minnesota 0 RID:: $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C DATED: August 1, 1999 For all or none of the above bonds. in accordance with the Terms of Proposal and terms of the Global Book Entry System as stated in this Official Statement. we will pay you $ (not less than $1,519,850) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2000 % due 2006 % due 2012 % due 2001 % due 2007 % due 2013 % due 2002 % due 2008 % due 2014 % due 2003 % due 2009 % due 2015 % due 2004 % due 2010 % due 2005 %due 2011 We enclose our good faith deposit in the amount of $30.900. to be held by you pending delivery and payment. Alternatively. we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates. Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co.. Minneapolis. Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates. Inc.. as escrow holder of the good faith deposit. pursuant to this Official Statement dated July 8, 1999. This proposal is for prompt acceptance and is conditional upon deposi t of said bonds to The Depository Trust Company, New York, New York in accordance with the Terms of Proposal. 0 This proposal is subject to the City' s covenant and agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c2-12 promulgated by the Securities and Exchange Conunission under the Securities Exchange Act of 1934 as described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional infomation or corrections to the Official Statement. As Syndicate Manager. we agree to provide the Issuer with the reoffering price of the Bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award). the total dollar interest cost (including any discount or less any premium) computed from August 1. 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of .1999. Attest: By: 0 Title: Title: PROPOSAL FORM The City Council July 20, 1999 0 City of Hopkins, Minnesota RE: $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C DATED: August 1, 1999 For all or none of the above bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as stated in this Official Statement, we will pay you $ (not less than $1,519,850) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2000 % due 2006 % due 2012 % due 2001 % due 2007 % due 2013 % due 2002 % due 2008 % due 2014 % due 2003 % due 2009 % due 2015 % due 2004 % due 2010 % due 2005 % due 201 I We enclose our good faith deposit in the amount of $30,900, to be held by you pending delivery and payment. Alternatively, we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates, Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated July 0 8, 1999. This proposal is for prompt acceptance and is conditional upon deposit of said bonds to The Depository Trust Company, New York, New York in accordance with the Terms of Proposal. This proposal is subject to the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional infonnation or corrections to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the Bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from August 1, 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of ,1999. 0 Attest: By: Title: Title: PROPOSAL FORM The City Council July 20,1999 City of Hopkins, Minnesota 0 RE: $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C DATED: August 1, 1999 For all or none of the above bonds, in accordance with the Tenus of Proposal and tenns of the Global Book Entry System as stated in this Official Statement, we will pay you $ (not less than $1,519,850) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2000 % due 2006 % due 2012 % due 2001 % due 2007 % due 2013 % due 2002 % due 2008 % due 2014 % due 2003 % due 2009 % due 2015 % due 2004 % due 2010 % due 2005 % due 2011 We enclose our good faith deposit in the amount of $30,900, to be held by you pending delivery and payment. Alternatively, we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates, Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated July 8, 1999. This proposal is for prompt acceptance and is conditional upon deposit of said bonds to The Depository Trust Company, 0 New York, New York in accordance with the Tenus of Proposal. This proposal is subject to the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure under Rule ISc2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional information or corrections to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the Bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from August 1, 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of ,1999. Attest: By: 0 Title: Title: PROPOSAL FORM The City Council July 20, 1999 0 City of Hopkins, Minnesota RE: $850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D DATED: August 1, 1999 For all or none of the above bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as stated in this Official Statement, we will pay you $ (not less than $838,100) plus accrued interest to . date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2001 % due 2006 % due 2002 % due 2007 % due 2003 % due 2008 % due 2004 % due 2009 % due 2005 % due 2010 We enclose our good faith deposit in the amount of $17,000, to be held by you pending delivery and payment. Alternatively, we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates, Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated July 8, 1999. This proposal is for prompt acceptance and is conditional upon deposit of said Bonds to The Depository Trust Company, New York, New York in accordance with the Terms of Proposal. This proposal is subject to the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure 0 under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional infonnation or corrections to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from August 1, 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of ,1999. Attest: By: Title: Title: 0 PROPOS AlL ]FORM The City Councll July 20, 1999 City of Hopkins, Minnesota RE: $350,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D 0 DATED: August 1, 1999 For all or none of the above bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as stated in this Official Statement, we will pay you $ (not less than $838,100) plus accrued interest to . date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2001 % due 2006 % due 2002 % due 2007 % due 2003 % due 2008 % due 2004 % due 2009 % due 2005 % due 2010 We enclose our good faith deposit in the amount of $17,000, to be held by you pending delivery and payment. Alternatively, we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates, Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated July 8, 1999. This proposal is for prompt acceptance and is conditional upon deposit of said Bonds to The Depository Trust Company, New York, New York in accordance with the Terms of Proposal. This proposal is subject to the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure under Rule 1 Sc2- 12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as 0 described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional information or corrections to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from August 1, 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of ,1999. Attest: By: Title: Title: 0 ,- - PROPOSAL FORM The City Counell July 20, 1999 O. City of Hopkins, Minnesota RE: $850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D DATED: August 1, 1999 For all or none of the above bonds, in accordance with the Terms of Proposal and terms of the Global Book Entry System as * stated in this Official Statement, we will pay you $ (not less than $838,100) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows: % due 2001 % due 2006 % due 2002 % due 2007 % due 2003 % due 2008 % due 2004 % due 2009 % due 2005 % due 2010 We enclose our good faith deposit in the amount of $17,000, to be held by you pending delivery and payment. Alternatively, we have provided a financial surety bond or have wired our good faith deposit to the Ehlers & Associates, Inc. Bond Issue Escrow Account #850-788-1 at Resource Bank & Trust Co., Minneapolis, Minnesota. If our proposal is not accepted, said deposit shall be promptly returned to us. If the good faith deposit is wired to such escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc., as escrow holder of the good faith deposit, pursuant to this Official Statement dated July 8, 1999. .This proposal is for prompt acceptance and is conditional upon deposit of said Bonds to The Depository Trust Company, New York, New York in accordance with the Terms of Proposal. 0 This proposal is subject to the City's covenant and agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities'Exchange Act of 1934 as described in the Official Statement for this Issue. We have received and reviewed the Official Statement and have submitted our requests for additional infonnation or corrections to the Official Statement. As Syndicate Manager, we agree to provide the Issuer with the reoffering price of the bonds within 24 hours of the proposal acceptance. Account Manager: By: Account Members: Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from August I, 1999 of the above proposal is $ and the true interest cost (TIC) is %. ------------------------------------------------------------------------------------------------------- The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Hopkins, Minnesota this day of ,1999. Attest: By: Title: Title: 0 ~!(<Jf-/3;1 0 July 15, 1999 1998 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND AUDIT PRESENTED BY PEAT MARWICK Overview Staff has requested our auditors to present the 1998 Comprehensive Arumal Financial Report and the results ofthe 1998 audit to the City Council and public. Supportin2: Information Comprehensive Annual Financial Report 0 ~'f -~.,...,. --" --~- .. .-" Lori Yager . I Finance Director 0 _______.___n___._____