Agenda - Council - 11/14/1995 - Laserfiche WebLink

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The Bonds will mature February 1 in the years and amounts as follows: 1997 $20,000 200t $25,000 1998 $25,000 2002 $30,000 1999 $25,000 2003 $30,000 2000 $25,000 2004 $35,000 2005 $35,000 2006 $40,000 2007 $40,000 OPTIONAL REDEMPTION The City may elect on February 1, 2005, and on any day thereafter, to prepay Bonds due on or after February t, 2006. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by tot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax increment income. The proceeds will be used to refund the 1997 through 2007 maturities of the City's Taxable General Obligation Tax Increment Bonds, Series 1987B, dated August 1, 1987. TAXABILITY OF INTEREST The interest to be paid on the Bonds is includable in gross income of the recipient for United States and State of Minnesota income tax purpose, and is subject to Minnesota Corporate and bank excise taxes measured by net income. 'I"YPE OF PROPOSALS Proposals shelf be for not less than $325,380 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashieds check or a Financial Surety Bond in the amount of $3,300, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance cc)mpany licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted incorporated not later than 3:30 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. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or i/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. -ii- I I I I ! I I I I I' I I I I I I I I