HomeMy WebLinkAboutResolution 2014-18 - Awarding 2014A General Certificate BondExtract of Minutes of Meeting
of the City Council of the City of
Corcoran, Hennepin County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of
Corcoran, Minnesota, was duly held in the City Hall in said City on Thursday, April 10, 2014,
commencing at 7:00 P.M.
The following members were present: Guenthner, Asleson, Cossette, Lynch, Thomas;
and the following were absent: none.
The Mayor announced that the next order of business was consideration of a proposal which had
been received for the purchase of the City's General Obligation Equipment Certificates of Indebtedness,
Series 2014A, to be issued in the aggregate principal amount of $442,000.
The City Administrator presented the proposal which had been submitted pursuant to City
Council direction.
After due consideration of the proposal, Member Asleson then introduced the following written
resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption:
441670v2 MN1 CR700 -15
follows:
RESOLUTION NO. 2014-18
A RESOLUTION AWARDING THE SALE OF GENERAL
OBLIGATION EQUIPMENT CERTIFICATES OF
INDEBTEDNESS, SERIES 2014A, IN THE AGGREGATE
PRINCIPAL AMOUNT OF $442,000; 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 Corcoran, Minnesota (the "City), as
Section 1. Sale of Certificates.
1.01. Authorization.
(a) The City is authorized by Minnesota Statutes, Chapter 475, as amended, and Minnesota
Statutes, Section 412.301 (collectively, the Act), to issue its general obligation equipment certificates of
indebtedness on such terns and in such manner as the City determines to finance the purchase of items of
capital equipment (the "Equipment), subject to certain limitations contained in the Act.
(b) The City will purchase and acquire various items of Equipment, which items of
Equipment and their expected costs are set forth at EXHIBIT A attached hereto, to be purchased pursuant
to the Act.
(c) As required by the Act,
(i) the expected useful life of the Equipment is or will be at least as long as
the term of the Certificates (hereinafter defined); and
(ii) the principal amount of Certificates to be issued in the year 2014 will not
exceed 0.25 percent of the market value of taxable property in the City, based on
finalized taxable market values for 2013.
(d) It is necessary and expedient to the sound financial management of the affairs of the City
to issue its General Obligation Equipment Certificates of Indebtedness, Series 2014A (the` Certificates'), in
the aggregate principal amount of $442,000, pursuant to the Act to provide financing for the acquisition
of the Equipment.
(e) The City is authorized by Section 475.60, subdivision 2(9), of the Act to negotiate the
sale of the Certificates, it being determined that the City has retained an independent financial advisor in
connection with such sale. The actions of the City staff and the Citys financial advisor in negotiating the
sale of the Certificates are ratified and confirmed in all aspects.
1.02_ Award to the Purchaser and Interest Rates. The proposal of Farmers State Bank of
Hamel, Hamel, Minnesota (the "Purchase%), to purchase the Certificates is found and determined to be a
reasonable offer and is accepted, the proposal being to purchase the Certificates at a price of $442,000,
plus accrued interest to date of delivery, if any, for Certificates bearing interest as follows:
441670v2 MNI CR 100 -15 2
Year Interest Rate Year Interest Rate
2019* 1.75% 2024* 3.00 %
*Term Certificate
True interest cost: 2.6695159%
1.03. Purchase Contract. The Mayor and City Administrator are hereby authorized and
directed to execute a Purchase Contract with the Purchaser on behalf of the City.
1.04. Terms and Principal Amounts of the Certificates. The City will forthwith issue and sell
the Certificates pursuant to the Act in the total principal amount of $442,000, originally dated May
15, 2014 in the denomination of $1,000 each or any integral multiple thereof, numbered No. R -1, upward,
bearing interest as above set forth, and maturing on May 15 in the years and amounts as follows:
Year Amount Year
Amount
2019* $208,000 2024* $234,000
*Term Certificate
1.05. Optional Redemption. The City may elect on May 15, 2019, and on any day thereafter to
prepay Certificates due on or after May 15, 2020. 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. Prepayments will be at a price of
par plus accrued interest.
1.06. Term Certificates; Mandatory Redemption. The Certificates maturing on May 15, 2019
and May 15, 2024, shall hereinafter be referred to collectively as the "Term Certificates" The principal
amounts of the Term Certificates subject to mandatory sinking fund redemption on any date may be
reduced through earlier optional redemptions, with any partial redemptions of the Term Certificates
credited against future mandatory sinking fund redemptions of such Term Certificates in such order as the
City shall determine. The Term Certificates are subject to mandatory sinking fund redemption and shall
be redeemed in part by lot at par plus accrued interest on the sinking fund installment dates and in the
principal amounts as follows:
eerevc��mte�yr+�
Sinking Fund Installation Date Principal Amount
Mav 15.2019 Term Certificates
2015
$40,000
2016
41,000
2017
42,000
2018
42,000
2019 (maturity)
43,000
May 15, 2024 Term Certificates
2020
$44,000
2021
45,000
2022
47,000
2023
48,000
2024 (maturity)
50,000
The specific Term Certificates to be redeemed will be selected by lot by the Registrar. All prepayments
will be at a price of par plus accrued interest.
Section 2. Registration and Pam.
2.01. Registered Form. The Certificates will be issued only in fully registered form. The
interest thereon and, upon surrender of each Certificate, the principal amount thereof, is payable by check
or draft issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates, Each Certificate will be dated as of the last interest
payment date preceding the date of authentication to which interest on the Certificate 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 the Certificate 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 the Certificate will be dated as of the date of original issue. The interest on the Certificates is
payable on May 15 and November 15 of each year, commencing May 15, 2015, to the registered owners
of record thereof as of the close of business on the last day of the immediately preceding month, whether
or not that day is a business day.
2.03. Registration. The City will appoint a certificate registrar, transfer agent, authenticating
agent and paying agent (the "Registrafl. The effect of registration and the rights and duties of the City and
the Registrar with respect thereto are as follows:
(a) Re ister. The Registrar must keep at its principal corporate trust office a
certificate register in which the Registrar provides for the registration of ownership of Certificates
and the registration of transfers and exchanges of Certificates entitled to be registered, transferred
or exchanged.
(b) Transfer of Certificates. Upon surrender for transfer of a Certificate 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 Certificates of a like
aggregate principal amount and maturity, as requested by the transferor. The Registrar may,
441670v2 MNI CRI00 -15 4
however, close the books for registration of any transfer after the last day of the month preceding
each interest payment date and until that interest payment date.
(c) Exchange of Certificates. When Certificates are surrendered by the registered
owner for exchange the Registrar will authenticate and deliver one or more new Certificates of a
like aggregate principal amount and maturity as requested by the registered owner or the owner's
attorney in writing.
(d) Cancellation. Certificates 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 Certificate is presented to the
Registrar for transfer, the Registrar may refuse to transfer the Certificate until the Registrar is
satisfied that the endorsement on the Certificate 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.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name a Certificate is registered in the certificate register as the absolute owner of the
Certificate, whether the Certificate is overdue or not, for the purpose of receiving payment of, or
on account of, the principal of and interest on the Certificate 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 Certificate 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 Certificates 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 Certificates. If a Certificate becomes
mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Certificate of like
amount, number, maturity date and tenor in exchange and substitution for and upon cancellation
of the mutilated Certificate or in lieu of and in substitution for any Certificate 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 Certificate destroyed, stolen or lost, upon filing with the Registrar
of evidence satisfactory to it that the Certificate was destroyed, stolen or lost, and of the
ownership thereof, and upon furnishing to the Registrar an appropriate certificate 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. Certificates 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 Certificate has already matured or been called for redemption
in accordance with its terms it is not necessary to issue a new Certificate prior to payment.
(i) Redemption. In the event that the Certificate is called for redemption, notice
thereof identifying the Certificate to be redeemed will be given by the Registrar by mailing a
copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each
Certificate 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 the Certificate. The Certificate so called for redemption will cease to bear
44I670v2 MNI CRI00 -15 5
interest after the specified 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 Northland Trust Services, Inc.,
Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City Administrator 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 the resulting 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 Certificates in its
possession to the successor Registrar and must deliver the certificate register to the successor Registrar.
On or before each principal or interest due date, without further order of this Council, the City
Administrator must transmit to the Registrar moneys sufficient for the payment of all principal and
interest then due.
2.05. Execution, Authentication and Delivery. The Certificates will be prepared under the
direction of the City Administrator and executed on behalf of the City by the signatures of the Mayor and
the City Administrator, 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
Certificates ceases to be such officer before the delivery of any Certificate, that 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 Certificate 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 Certificate has been duly executed by the manual signature of an authorized representative of the
Registrar. Certificates of authentication on different Certificates need not be signed by the same
representative. The executed certificate of authentication on a Certificate is conclusive evidence that it
has been authenticated and delivered under this Resolution. When the Certificates have been so prepared,
executed and authenticated, the City Administrator will 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 Certificates. The City may elect to deliver in lieu of printed definitive
Certificates one or more typewritten temporary Certificates in substantially the form set forth in EXHIBIT
B attached hereto with such changes as may be necessary to reflect more than one maturity in a single
temporary certificate. Upon the execution and delivery of definitive Certificates the temporary
Certificates will be exchanged therefor and cancelled.
Section 3. Form of Certificate.
3.01. Execution of the Certificates. The Certificates will be printed or typewritten in
substantially the form as attached hereto as EXHIBIT B.
3.02, Approving Legal Opinion. The City Administrator is authorized and directed to obtain a
copy of the proposed approving legal opinion of Kennedy & 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 Certificate.
441670v2 MNl CR100 -15
Section 4. Payment: Security: Pledges and Covenants.
4.01. Debt Service Fund. The Certificates will be payable from the General Obligation
Equipment Certificates of Indebtedness, Series 2014A Debt Service Fund (the`Debt Service Fund) hereby
created, and the proceeds of the ad valorem taxes hereinafter levied are pledged to the Debt Service Fund.
If a payment of principal or interest on the Certificates becomes due when there is not sufficient money in
the Debt Service Fund to pay the same, the City Administrator will pay such principal or interest from the
general fund of the City, and the general fund may be reimbursed for those advances out of the proceeds
of the taxes levied by this resolution. There is appropriated to the Debt Service Fund (i) all capitalized
interest financed from Certificate proceeds, if any; (ii) the accrued interest paid by the Purchaser upon
closing and delivery of the Certificates, if any; and (iii) any rounding amount.
4.02. Equipment Fund. The proceeds of the Certificates, less the appropriations made in
Section 4.01 hereof, together with any other funds appropriated for the purchase of Equipment, will be
deposited in a separate fund (the "Equipment Fund) to be used solely to defray expenses of the Equipment.
When the Equipment is purchased and the cost thereof paid, the Equipment Fund is to be closed and any
moneys remaining therein shall be transferred to the Debt Service Fund.
4.03. Pledge of Taxes. For the purpose of paying the principal of and interest on the
Certificates, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in
the City, to be spread upon the tax rolls and collected with and as part of other general taxes of the City.
The tax will be credited to the Debt Service Fund above provided and is in the years and amounts
attached hereto as EXHIBIT C.
4.04. Debt Service Coverage. It is determined that the estimated collection of the foregoing
taxes pledged pursuant to Section 4.01 hereof, will produce at least five percent in excess of the amount
needed to meet when due, the principal and interest payments on the Certificates. The tax levy herein
provided is irrepealable until all of the Certificates are paid, provided that at the time the City makes its
annual tax levies, the City Administrator may certify to the County Auditor /Treasurer of Hennepin
County the amount available in the Debt Service Fund to pay principal and interest due during the
ensuing year, and the County Auditor /Treasurer will thereupon reduce the levy collectible during that
year by the amount so certified.
4.05. Registration of Resolution. The City Administrator is authorized and directed to file a
certified copy of this resolution with the County Auditor /Treasurer and to obtain the certificate required
by Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. City Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Certificates, certified copies of
proceedings and records of the City relating to the Certificates 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 Certificates, and such instruments, including any heretofore
furnished, will be deemed representations of the City as to the facts stated therein.
5.02. No Official Statement of Prospectus. It is determined that no comprehensive Official
Statement or offering material has been prepared or circulated by the City in connection with the sale of
the Certificates and that the City is relying on the investment representation of the Purchaser in an
investment letter to be dated as of issuance of the Certificates now on file with the City Administrator.
441670d2 MNI CRI00 -15 7
5.03. Other Certificates. The Mayor and City Administrator are hereby authorized and directed
to furnish to the Purchaser at the closing such certificates as are required as a condition of sale. Unless
litigation shall have been commenced and be pending questioning the Certificates or the organization of
the City or incumbency of its officers, at the closing the Mayor and the City Administrator shall also
execute and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the City
Administrator shall also execute and deliver a certificate as to payment for and delivery of the
Certificates.
Section 6. Tax Covenant.
6.01. Tax - Exempt Obligations. The City covenants and agrees with the holders from time to
time of the Certificates 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 Certificates to become subject to taxation under
the Internal Revenue Code of 1486, as amended (the`Codd), 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 Certificates. To that end, the City will comply
with all requirements necessary under the Code to establish and maintain the exclusion from gross income of
the interest on the Certificates 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 Certificates.
6.02. No Rebate. For purposes of qualifying for the small issuer exception to the federal arbitrage
rebate requirements, the City hereby fords, determines, and declares that the aggregate face amount of all tax -
exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City)
during the calendar year in which the Certificates are issued and outstanding at one time is not reasonably
expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code.
6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the
Certificates or to cause or permit them or any of them to be used, in such a manner as to cause the
Certificates to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the
Code.
6.04. Qualified Tax - Exempt Obligations. In order to qualify the Certificates 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 Certificates are not`private activity bonds' as defined in Section 141 of the
Code;
(b) the City designates the Certificates 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 private
activity bonds) which will be issued by the City (and all subordinate entities of the City) during
calendar year 2014 will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during calendar year
2014 have been designated for purposes of Section 265(b)(3) of the Code.
441670v2 MNI CRI00 -15
6.05. Procedural Requirements. 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. Continuing Disclosure.
7.01. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificatd'means
that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator and dated
the date of issuance and delivery of the Certificates, as originally executed and as it may be amended
from time to time in accordance with the terms thereof.
7.02. City Compliance with Provisions of Continuing Disclosure Certificate. 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 Certificates; however, any Certificate holder 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.
7.03. Elected Limited Continuing Disclosure. Notwithstanding the fact that the offering of the
Certificates is in a principal amount less than $1,000,000, and therefore exempt from continuing disclosure
under Securities and Exchange Commission Rules, Section 15c2 -12 (the`SEC Ruld), the City elects to treat
the Certificates are subject to the limited continuing disclosure under paragraph (d)(2) of the SEC Rule.
Section 8. Defeasance. When all Certificates and all interest thereon, have been discharged as
provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the
Certificates will cease, except that the pledge of the full faith and credit of the City for the prompt and full
payment of the principal of and interest on the Certificates will remain in full force and effect. The City may
discharge all Certificates which are due on any date by depositing with the Registrar on or before that date a
sum sufficient for the payment thereof in fall. If any Certificate should not be paid when due, it may
nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full
with interest accrued to the date of such deposit.
(The remainder of this page is intentionally left blank.)
441670v2 MNI CRI00 -15
The motion for the adoption of the foregoing resolution was duly seconded by Member Thomas,
and upon vote being taken thereon, the following voted in favor thereof: Guenthner, Asleson, Cossette,
Lynch, Thomas;
and the following voted against the same: none;
whereupon said resolution was declared duly passed and adopted.
44167M MNI CR100 -15 10
EXHIBIT A
EQUIPMENT
City of Corcoran
Equipment Purchases
Capital Items
Capital Outlay
Yr2014
Yr2015
Total
2 squad replacement
$80,000
$80,000
Support & Protection Equipment
$7,500
$7,500
1 squad replacement
$35,000
$35,000
Support& Protection Equipment
$13,500
$13,500
Tractor (Replaces 6420- purchased in 2005)
$56,000
$56,000
Utility Tractor
$15,150
$15,150
Front Mount Mower
$38,000
$38,000
Floor Sweeper
$21,000
$21,000
Overhead Crane
$50,000
$50,000
Vehicle Lift
$50,000
$50,000
Welding Hood
$10,000
$10,000
Pickup
$32,000
$32,000
Trailer
$9,000
$9,000
Client Computer Replacement
$6,500
$6,500
Total
$334,150
$89,500
$423,650
441670v2 h1NI CRI00 -15 A -1
I i i
FORM OF CERTIFICATE
No. R- UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF CORCORAN
GENERAL OBLIGATION EQUIPMENT CERTIFICATE
OF INDEBTEDNESS, SERIES 2014A
Date of
Rate Maturi Original Issue CUSIP
May 15, 20 May 15, 2014
Registered Owner: Farmers State Bank of Hamel
The City of Corcoran, Minnesota, a duly organized and existing municipal corporation in
Hennepin County, Minnesota (the`YSt} ), acknowledges itself to be indebted and for value received
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 May 15 and November 15 in each year, commencing May 15, 2015,
to the person in whose name this Certificate is registered at the close of business on the last 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 Northland Trust Services, Inc., Minneapolis, Minnesota, as 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 May 15, 2019, and on any day thereafter to prepay Certificates due on or
after May 15, 2020. 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. Prepayments will be at a price of par plus accrued interest.
The Certificates maturing on May 15, 2019 and May 15, 2024, shall hereinafter be referred to
collectively as the 'Term Certificates" The principal amounts of the Term Certificates subject to
mandatory sinking fund redemption on any date may be reduced through earlier optional redemptions,
with any partial redemptions of the Term Certificates credited against future mandatory sinking fund
redemptions of such Term Certificates in such order as the City shall determine. The Term Certificates
are subject to mandatory sinking fund redemption and shall be redeemed in part by lot at par plus accrued
interest on the sinking fund installment dates and in the principal amounts as follows:
44167M MNI CRI00 -15 B -I
Sinking Fund Installation Date Principal Amount
Mav 15. 2019 Term Certificates
2015
$40,000
2016
41,000
2017
42,000
2018
42,000
2019 (maturity)
43,000
Mav 15. 2024 Term Certificates
2020
$44,000
2021
45,000
2022
47,000
2023
48,000
2024 (maturity)
50,000
The specific Term Certificates to be redeemed will be selected by lot by the Registrar. All prepayments
will be at a price of par plus accrued interest.
The City Council has designated the issue of Certificates of which this Certificate forms a part as
`iIualified tax- exempt obligations within the meaning of Section 265(b)(3) of the Internal Revenue Code of
1986, as amended (the "Cold) relating to disallowance of interest expense for financial institutions and
within the $10 million limit allowed by the Code for the calendar year of issue.
This Certificate is one of an issue in the aggregate principal amount of $442,000 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 April 10, 2014 (the`Resolutiod), for the purpose of providing
money to defray expenses incurred or to be incurred in purchasing various items of capital equipment,
pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of
the State of Minnesota, including Minnesota Statutes, Chapter 475 and Sections 412.301 and 410.32, and
the principal hereof and interest hereon are payable primarily from 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 irrevocably pledged for payment of this Certificate 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, which taxes may be levied without limitation as to rate or amount. The
Certificates of this series are issued only as fully registered Certificates in denominations of $1,000 or any
integral multiple thereof of single maturities.
As provided in the Resolution and subject to certain limitations set forth therein, this Certificate is
transferable upon the books of the City at the principal office of the 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 Registrar, duly executed by the registered owner or the
owner's attorney; and may also be surrendered in exchange for Certificates of other authorized
denominations. Upon such transfer or exchange the City will cause a new Certificate or Certificates 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 Registrar may deem and treat the person in whose name this Certificate is
registered as the absolute owner hereof, whether this Certificate is overdue or not, for the purpose of
441670v2 MNI CRI00 -15 B -2
receiving payment and for all other purposes, and neither the City nor the 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 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 Certificate 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 Certificate does not cause the indebtedness of the City to exceed any constitutional,
statutory or charter limitation of indebtedness.
This Certificate 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 Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Corcoran, Minnesota, by its City Council, has caused this
Certificate to be executed on its behalf by the facsimile or manual signatures of the Mayor and City
Administrator and has caused this Certificate to be dated as of the date set forth below.
Dated: May 15, 2014
CITY OF CORCORAN, MINNESOTA
(Facsimile) (Facsimile)
Mayor City Administrator
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates delivered pursuant to the Resolution mentioned within.
NORTHLAND TRUST SERVICES, INC.
Authorized Representative
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Certificate, will be
construed as though they were written out in full according to applicable laws or regulations:
44167ov2 MN1 CRI OO -15 B -3
TEN COM -- as tenants in common
TEN ENT -- as tenants by entireties
JT TEN -- as joint tenants with right of
survivorship and not as tenants in common
UNIF GIFT MIN ACT
Custodian
(Cust) (Minor)
under Uniform Gifts or Transfers to Minors
Act, State of
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 Certificate and alI rights thereunder, and
does hereby irrevocably constitute and appoint attorney to transfer the
said Certificate on the books kept for registration of the within Certificate, with full power of substitution
in the premises.
Notice: The assignoes signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration or any change whatever.
Signature Guaranteed:
NOTICE: 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 (WISP) or other such "signature guarantee
prograni' 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 Registrar will not effect transfer of this Certificate unless the information concerning the
assignee requested below is provided.
Name and Address:
441670v2 MNI CRI00 -15 B -4
(Include information for all joint owners if this
Certificate is held by joint account.)
Please insert social security or
other identifying member of assignee
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Certificate has been registered on the
books of the Registrar in the name of the person last noted below.
Signature of
Date of Registration Registered Owner Officer of Re 1p.strar
Farmers State Bank of Hamel.
Federal ID #
441670v2 MNI CR100 -15 B_5
EXHIBIT C
TAX LEVY SCHEDULE
YEAR *
TAX LEVY
2015
$53,193.00
2016
53,508.00
2017
53,804.63
2018
53,032.88
2019
53,311.13
2020
53,571.00
2021
53,235.00
2022
53,917.50
2023
53,487.00
2024
54,075.00
* Year tax levy collected.
441670v2 MNI CR100 -15
C_1
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS.
CITY OF CORCORAN )
I, the undersigned, being the duly qualified and acting City Administrator of the City of Corcoran,
Minnesota (the "City"), do hereby certify that 1 have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of the City held on April 10, 2014, 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 the City's General Obligation Equipment Certificates of
Indebtedness, Series 2014A, in the aggregate principal amount of $442,000.
WITNESS My hand officially as such City Administrator and the corporate seal of the City this
I& day of April, 2014.
City Administrator
Corcoran, Minnesota
(SEAL)
441670v2 MNI CRI00 -15