HomeMy WebLinkAbout11A Consider Sale of $7,620,000 General Obligation Improvement Bonds of 2018A EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
COTTAGE GROVE, MINNESOTA
Held: June 6, 2018
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Cottage Grove, Washington County, Minnesota, was duly held at the City Hall in said City on
June 6, 2018, at 7:00 P.M., far the purpose, in part, of considering proposals for, and awarding
the sale of, $7,620,000 General Obligation Improvement Bonds, Series 2018A.
The following members were present:
and the following were absent:
Member introduced the following resolution and
moved its adoption:
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$7,620,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES
2018A, PLEDGING FOR THE SECURITY THEREOF SPECIAL
ASSESSMENTS AND LEVYING A TAX FOR THE PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Cottage Grove, Minnesota(the
"City")has heretofore determined and declared that it is necessary and expedient to issue
$7,620,000 General Obligation Improvement Bonds, Series 2018A (the "Bonds"), pursuantto
Minnesota Statutes, Chapters 429 and 475, to finance the construction of various public
improvement projects within the City (the "Improvements"); and
B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville,
Minnesota("Ehlers"), as its independent municipal advisor for the sale of the Bonds and was
therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota
Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been
solicited by Ehlers; and
C. WHEREAS, the offers set forth on Exhibit A attached hereto were received by the
Clerk, or designee, at the offices of Ehlers at 10:00 A.M., on the date hereof, pursuant to the
Preliminary Official Statement, dated May 24, 2018 established for the Bonds; and
D. WHEREAS, the Improvements and all their components have been ordered prior
to the date hereof, after a hearing thereon for which notice was given describing the
Improvements or all their components by general nature, estimated cost, and area to be assessed;
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E. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
entry form as hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Cottage
Grove, Minnesota, as follows:
1. Accentance of Pronosal. The proposal of Stifel, Nicolaus, Birmingham, Alabama,
(the "Purchaser"), to purchase the Bonds of the City (or individually, a"Bond"), in accordance
with the Preliminary Official Statement established for the Bonds, at the rates of interest
hereinafter set forth, and to pay therefar the sum of$7,694,088.40, plus interest accrued to
settlement, is hereby found, determined and declared to be the most favorable proposal received
and is hereby accepted, and the Bonds are hereby awarded to the Purchaser. The Finance
Director is directed to retain the deposit of the Purchaser and to forthwith return to the
unsuccessful bidders their good faith checks or drafts.
2. Bond Terms.
(a) Title: Ori�inal Issue Date: Denominations: and Maturities. The Bonds shall be
titled "General Obligation Improvement Bonds, Series 2018A", shall be dated June 26, 2018, as
the date of original issue and shall be issued forthwith on or after such date as fully registered
bonds. The Bonds shall be numbered from R-1 upward in the denomination of$5,000 each or in
any integral multiple thereof of a single maturity (the "Authorized Denominations"). The Bonds
shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
2021 $410,000 2029 $520,000
2022 420,000 2030 535,000
2023 435,000 2031 550,000
2024 450,000 2032 565,000
2025 460,000 2033 585,000
2026 475,000 2034 600,000
2027 490,000 2035 620,000
2028 505,000
As may be requested by the Purchaser, one or more term Bonds may be issued having
mandatory sinking fund redemption and final maturity amounts conforming to the foregoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(b) Book Entrv Onlv Svstem. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or its
successors to its functions hereunder(the "Depository")will act as securities depository for the
Bonds, and to this end:
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(i) The Bonds shall be initially issued and, so long as they remain in book
entry form only (the "Book Entry Only Period"), shall at all times be in the form of a
separate single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized Denominations
for any Bond shall be deemed to be limited during the Book Entry Only Period to the
outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar(as hereinafter defined) in the name of CEDE
& CO., as the nominee (it or any nominee of the existing or a successor Depository, the
"Nominee").
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall
have any responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant") or the person for which a Participant holds an interest in the Bonds shown
on the books and records of the Participant(the "Beneficial Owner"). Without limiting
the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have
any such responsibility or obligation with respect to (A)the accuracy of the records of the
Depository, the Nominee or any Participant with respect to any ownership interest in the
Bonds, or(B)the delivery to any Participant, any Owner or any other person, other than
the Depository, of any notice with respect to the Bonds, including any notice of
redemption, or (C)the payment to any Participant, any Beneficial Owner or any other
person, other than the Depository, of any amount with respect to the principal of or
premium, if any, or interest on the Bonds, ar (D)the consent given or other action taken
by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of
securing the vote or consent of any Holder under this Resolution, the City may, however,
rely upon an omnibus proay under which the Depository assigns its consenting or voting
rights to certain Participants to whose accounts the Bonds are credited on the record date
identified in a listing attached to the omnibus proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to
be the absolute owner of the Bonds far the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds,far the purpose of obtaining any
consent or other action to be taken by Holders for the purpose of registering transfers
with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as
paying agent hereunder, shall pay all principal of and premium, if any, and interest on the
Bonds only to the Holder ar the Holders of the Bonds as shown on the bond register, and
all such payments shall be valid and effective to fully satisfy and discharge the City's
obligations with respect to the principal of and premium, if any, and interest on the Bonds
to the ea�tent of the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to
the effect that the Depository has determined to substitute a new Nominee in place of the
existing Nominee, and subject to the transfer provisions in paragraph 10 hereof,
references to the Nominee hereunder shall refer to such new Nominee.
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(vi) So long as any Bond is registered in the name of a Nominee, all payments
with respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the Bond
Registrar or City, as the case may be,to the Depository as provided in the Letter of
Representations to the Depository required by the Depository as a condition to its acting
as book-entry Depository for the Bonds (said Letter of Representations, together with any
replacement thereof or amendment or substitute thereto, including any standard
procedures or policies referenced therein or applicable thereto respecting the procedures
and other matters relating to the Depository's role as book-entry Depository for the
Bonds, collectively hereinafter referred to as the "Letter of Representations").
(vii) All transfers of beneficial ownership interests in each Bond issued in
book-entry form shall be limited in principal amount to Authorized Denominations and
shall be effected by procedures by the Depository with the Participants for recording and
transferring the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to
the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any
consent or other action to be taken by Holders,the Depository shall consider the date of
receipt of notice requesting such consent or other action as the record date for such
consent or other action; provided,that the City or the Bond Registrar may establish a
special record date for such consent or other action. The City or the Bond Registrar shall,
to the ea�tent possible, give the Depository notice of such special record date not less than
15 calendar days in advance of such special record date to the ea�tent possible.
(ix) Any successor Bond Registrar in its written acceptance of its duties under
this Resolution and any paying agency/bond registrar agreement, shall agree to take any
actions necessary from time to time to comply with the requirements of the Letter of
Representations.
(c) Termination of Book-Entrv Onlv Svstem. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with
respect to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may terminate the
services of the Depository with respect to the Bond if it determines that the Depository is
no longer able to carry out its functions as securities depository or the continuation of the
system of book-entry transfers through the Depository is not in the best interests of the
City ar the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the
preceding paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the City, is
willing and able to assume such functions upon reasonable or customary terms, or if the
City determines that it is in the best interests of the City or the Beneficial Owners of the
Bond that the Beneficial Owners be able to obtain certificates far the Bonds, the Bonds
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shall no longer be registered as being registered in the bond register in the name of the
Nominee, but may be registered in whatever name or names the Holder of the Bonds
shall designate at that time, in accordance with paragraph 10 hereo£ To the eatent that
the Beneficial Owners are designated as the transferee by the Holders, in accordance with
paragraph 10 hereof, the Bonds will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of
paragraph 10 hereof.
(d) Letter of Renresentations. The provisions in the Letter of Representation are
incorporated herein by reference and made a part of the resolution, and if and to the eatent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representation shall control.
3. Pumose: Cost. The Bonds shall provide funds to finance the Improvements in the
City. The total cost of the Improvements, which shall include all costs enumerated in Minnesota
Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. The City
covenants that it shall do all things and perform all acts required of it to assure that work on the
Improvements proceeds with due diligence to completion and that any and all permits and
studies required under law for the Improvements are obtained.
4. Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year(each, an "Interest Payment Date"), commencing February 1, 2019
calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
2021 3.000% 2029 3.000%
2022 3.000% 2030 3.000%
2023 3.000% 2031 3.000%
2024 3.000% 2032 3.000%
2025 3.000% 2033 3.000%
2026 3.000% 2034 3.000%
2027 3.000% 2035 3.000%
2028 3.000%
5. Redemntion. All Bonds maturing February 1, 2027 and thereafter shall be subject
to redemption and prepayment at the option of the City on February 1, 2026, and on any date
thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the
Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts
within each maturity to be redeemed shall be determined by the City; and if only part of the
Bonds having a common maturity date are called for prepayment,the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for
redemption shall be due and payable on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of redemption shall be given to the
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paying agent and to each affected registered holder of the Bonds not more than siaTy (60) days
and not fewer than thirty (30) days prior to the date fixed for redemption.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar priar to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at$5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and Bond Registrar duly executed by the holder thereof or his, her or its attorney duly
authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or
Bonds of the same series having the same stated maturity and interest rate and of any Authorized
Denomination or Denominations, as requested by such Holder, in aggregate principal amount
equal to and in exchange far the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Reeistrar. Bond Trust Services Corporation, in Roseville, Minnesota is
appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this
resolution.
7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON COUNTY
CITY OF COTTAGE GROVE
R- $
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2018A
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
% FEBRUARY 1, NNE 26, 2018
REGISTERED OWNER CEDE & CO.
PRINCIPAL AMOUNT: DOLLARS
THE CITY OF COTTAGE GROVE, WASHINGTON COUNTY, MINNESOTA (the
"Issuer"), certifies that it is indebted and for value received promises to pay to the registered
owner specified above, or registered assigns, unless called for earlier redemption, in the manner
hereinafter set forth, the principal amount specified above, on the maturity date specified above,
and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an
"Interest Payment Date"), commencing February 1, 2019, at the rate per annum specified above
(calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is
paid or has been provided for. This Bond will bear interest from the most recent Interest
Payment Date to which interest has been paid or, if no interest has been paid, from the date of
original issue hereo£ The principal of and premium, if any, on this Bond are payable upon
presentation and surrender hereof at the office of Bond Trust Services Corporation, Roseville,
Minnesota(the "Bond Registrar"), acting as paying agent, or any successor paying agent duly
appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by
check or draft mailed to the person in whose name this Bond is registered (the "Holder" or
"Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at
the address appearing thereon at the close of business on the fifteenth day of the calendar month
neat preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so
timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular
Record Date, and shall be payable to the person who is the Holder hereof at the close of business
on a date (the "Special Record Date")fixed by the Bond Registrar whenever money becomes
available for payment of the defaulted interest. Notice of the Special Record Date shall be given
to Bondholders not less than ten days prior to the Special Record Date. The principal of and
premium, if any, and interest on this Bond are payable in lawful money of the United States of
America. So long as this Bond is registered in the name of the Depository or its Nominee as
provided in the Resolution hereinafter described, and as those terms are defined therein, payment
of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be
made as provided in the Letter of Representations, as defined in the Resolution, and surrender of
this Bond shall not be required for payment of the redemption price upon a partial redemption of
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this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds
may only be registered in the name of the Depository or its Nominee.
Ontional Redemntion. All Bonds of this issue (the "Bonds")maturing February 1, 2027
and thereafter are subject to redemption and prepayment at the option of the Issuer on February
1, 2026, and on any date thereafter at a price of par plus accrued interest. Redemption may be in
whole or in part of the Bonds subject to prepayment. If redemption is in part,the maturities and
the principal amounts within each maturity to be redeemed shall be determined by the Issuer; and
if only part of the Bonds having a common maturity date are called for prepayment, the specific
Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof
called for redemption shall be due and payable on the redemption date, and interest thereon shall
cease to accrue from and after the redemption date. Mailed notice of redemption shall be given
to the paying agent and to each affected registered holder of the Bonds not more than siaTy (60)
days and not fewer than thirty (30) days priar to the date fixed for redemption.
Selection of Bonds for Redemntion: Partial Redemntion. To effect a partial redemption
of Bonds having a common maturity date,the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the principal amount of such
Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall
deem proper in its discretion,from the numbers assigned to the Bonds, as many numbers as, at
$5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The
Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided,
however,that only so much of the principal amount of such Bond of a denomination of more
than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so
selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar
(with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its
attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated maturity and interest rate and of
any Authorized Denomination or Denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the principal of the
Bond so surrendered.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of$7,620,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, denomination and redemption privilege, which Bond has been issued pursuant to
and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a
resolution adopted by the City Council of the Issuer on June 6, 2018 (the "Resolution"),for the
purpose of providing money to finance the construction of various public improvement projects
within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation
Improvement Bonds, Series 2018A Fund of the Issuer. This Bond constitutes a general
obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal,
premium, if any, and interest when the same become due, the full faith and credit and taxing
powers of the Issuer have been and are hereby irrevocably pledged.
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Denominations: Exchanee: Resolution. The Bonds are issuable solely as fully registered
bonds in Authorized Denominations (as defined in the Resolution) and are exchangeable for
fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts
at the office of the Bond Registrar, but only in the manner and subject to the limitations provided
in the Resolution. Reference is hereby made to the Resolution for a description of the rights and
duties of the Bond Registrar. Copies of the Resolution are on file in the office of the Bond
Registrar.
Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney
duly authorized in writing at the office of the Bond Registrar upon presentation and surrender
hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution
and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar.
Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in
exchange for this Bond, one or more new fully registered Bonds in the name of the transferee
(but not registered in blank ar to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees unon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Re�istered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof far the purpose of receiving payment as
herein provided (except as otherwise provided on the reverse side hereof with respect to the
Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither
the Issuer nar the Bond Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Exemnt Obli�ation. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
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IN WITNESS WHEREOF, the City of Cottage Grove, Washington County, Minnesota,
by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures
of its Mayor and its Clerk,the corporate seal of the Issuer having been intentionally omitted as
permitted by law.
Date of Registration: Registrable by: BOND TRUST SERVICES
CORPORATION
June 26. 2018
Payable at: BOND TRUST SERVICES
CORPORATION
BOND REGISTRAR'S CITY OF COTTAGE GROVE,
CERTIFICATE OF WASHINGTON COUNTY, MINNESOTA
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within. /s/ Facsimile
Mayor
BOND TRUST SERVICES
CORPORATION
Roseville, Minnesota /s/ Facsimile
Bond Registrar Clerk
By
Authorized Signature
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ABBREVIATIONS
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 in common
TEN ENT- as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA- as custodian for
(Cust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
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 does hereby
irrevocably constitute and appoint attorney to transfer the Bond on the
books kept for the registration thereof, 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 national bank ar trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address:
(Include information for all joint owners ifthe Bond is held by joint account.)
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8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and Clerk and be sealed with the seal of the City;
provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate
seal has been omitted. In the event of disability or resignation or other absence of either officer,
the Bonds may be signed by the manual or facsimile signature of the officer who may act on
behalf of the absent or disabled officer. In case either officer whose signature or facsimile of
whose signature shall appear on the Bonds shall cease to be such officer before the delivery of
the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if the officer had remained in office until delivery.
9. Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
such Bond, substantially in the form hereinabove set forth, shall have been duly executed by the
Bond Registrar. The Bond Registrar shall authenticate the signatures of officers of the City on
each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the
date of registration in the space provided the date on which the Bond is authenticated, except that
for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as
a date of registration the date of original issue, which date is June 26, 2018. The Certificate of
Authentication so executed on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
10. Re�istration: Transfer: Exchan�e. The City will cause to be kept at the office of
the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond
Registrar may prescribe,the Bond Registrar shall provide for the registration of Bonds and the
registration of transfers of Bonds entitled to be registered or transferred as herein provided.
Upon surrender far transfer of any Bond at the office of the Bond Registrar, the City shall
execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration
(as provided in paragraph 9) of, and deliver, in the name of the designated transferee or
transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like
aggregate principal amount, having the same stated maturity and interest rate, as requested by the
transferor; provided, however, that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any authorized
denomination or denominations of a like aggregate principal amount and stated maturity, upon
surrender ofthe Bonds to be exchanged atthe office ofthe Bond Registrar. Whenever any
Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange ar transfer provided for in this resolution shall
be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
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Every Bond presented or surrendered far transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar,
duly executed by the Holder thereof or his, her or its attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subjectto reasonable regulations ofthe City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates. The Clerk is hereby authorized
to negotiate and execute the terms of said agreement.
11. Riehts Upon Transfer or Exchanee. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12. Interest Pavment: Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth (15th) day of the
calendar month neat preceding such Interest Payment Date (the "Regular Record Date"). Any
such interest not so timely paid shall cease to be payable to the person who is the Holder thereof
as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at
the close of business on a date (the "Special Record Date")fixed by the Bond Registrar
whenever money becomes available for payment of the defaulted interest. Notice of the Special
Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior
to the Special Record Date.
13. Treatment of Re�istered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond far the purpose of
receiving payment of principal of and premium, if any, and interest(subject to the payment
provisions in paragraph 12 above) on, such Bond and for all other purposes whatsoever whether
or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected
by notice to the contrary.
14. Deliverv: Annlication of Proceeds. The Bonds when so prepared and executed
shall be delivered by the Clerk to the Purchaser upon receipt of the purchase price, and the
Purchaser shall not be obliged to see to the proper application thereof.
15. Funds and Accounts. There is hereby created a special fund to be designated the
"General Obligation Improvement Bonds, Series 2018A Fund" (the "Fund"),to be administered
and maintained by the Finance Director as a bookkeeping account separate and apart from all
other accounts maintained in the official financial records of the City. The Fund shall be
maintained in the manner herein specified until all of the Bonds and the interest thereon have
been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be
designated the "Construction Account" and "Debt Service Account", respectively.
13
10799595v1
(a) Construction Account. To the Construction Account there shall be credited the
proceeds of the sale of the Bonds, less capitalized interest, less any amount paid far the Bonds in
excess of the minimum bid and plus any special assessments levied with respect to the
Improvements and collected prior to completion of the Improvements and payment of the costs
thereo£ From the Construction Account there shall be paid all costs and expenses of making the
Improvements, including the cost of any construction contracts heretofore let and all other costs
incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the
moneys in the Construction Account shall be used for no other purpose except as otherwise
provided by law; provided that the proceeds of the Bonds may also be used to the ea�tent
necessary to pay interest on the Bonds due priar to the anticipated date of commencement of the
collection of taxes or special assessments herein levied or covenanted to be levied; and provided
further that if upon completion of the Improvements there shall remain any unexpended balance
in the Construction Account, the balance may be transferred by the City Council to the fund of
any other improvement instituted pursuant to Minnesota Statutes, Chapter 429, or transferred to
the Debt Service Account; and provided further that any special assessments credited to the
Construction Account shall only be applied towards payment of the costs of the Improvements
upon adoption of a resolution by the City Council determining that the application of the special
assessments for such purpose will not cause the City to no longer be in compliance with
Minnesota Statutes, Section 475.61, Subdivision 1.
(b) Debt Service Account. There are hereby pledged and there shall be credited to
the Debt Service Account: (i) all collections of special assessments herein covenanted to be
levied with respect to the Improvements and either initially credited to the Construction Account
and not already spent as permitted above and required to pay any principal and interest due on
the Bonds or collected subsequent to the completion of the Improvements and payment of the
costs thereof; (ii) capitalized interest in the amount of$365,125 (together with interest earnings
thereon and subject to such other adjustments as are appropriate)to provide sufficient funds to
pay interest due on the Bonds on or before February 1, 2019 (iii) any collections of all taxes
herein or hereafter levied for the payment of the Bonds and interest thereon; (iv) all funds paid
for the Bonds in excess of the minimum bid; (v) all funds remaining in the Construction Account
after completion of the Improvements and payment of the costs thereof, not so transferred to the
account of another improvement (vi) all investment earnings on moneys held in the Debt
Service Account; and (vii) any and all other moneys which are properly available and are
appropriated by the governing body of the City to the Debt Service Account. The Debt Service
Account shall be used solely to pay the principal and interest and any premiums for redemption
of the Bonds and any other general obligation bonds of the City hereafter issued by the City and
made payable from the Debt Service Account as provided by law.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except(i)for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued, and (ii) in addition to the above in an
amount not greater than five percent(5%) of the proceeds of the Bonds. To this effect, any sums
from time to time held in the Construction Account or Debt Service Account(or any other City
fund or account which will be used to pay principal or interest to become due on the bonds
payable therefrom) in excess of amounts which under then-applicable federal arbitrage
regulations may be invested without regard as to yield shall not be invested at a yield in excess of
14
10799595v1
the applicable yield restrictions imposed by said arbitrage regulations on such investments after
taking into account any applicable "temporary periods" or "minor portion" made available under
the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the
Construction Account or Debt Service Account shall not be invested in obligations or deposits
issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof
if and to the ea�tent that such investment would cause the Bonds to be "federally guaranteed"
within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended
(the "Code").
16. Assessments. It is hereby determined that no less than twenty percent(20%) of
the cost to the City of each Improvement financed hereunder within the meaning of Minnesota
Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied
against every assessable lot, piece and parcel of land benefitted by the Improvements. The City
hereby covenants and agrees that it will let all construction contracts not heretofore let within
one year after ordering each Improvement financed hereunder unless the resolution ordering the
Improvement specifies a different time limit for the letting of construction contracts. The City
hereby further covenants and agrees that it will do and perform, as soon as they may be done, all
acts and things necessary far the final and valid levy of such special assessments, and in the
event that any such assessment be at any time held invalid with respect to any lot, piece or parcel
of land due to any error, defect, or irregularity in any action or proceedings taken or to be taken
by the City ar this Council or any of the City officers or employees, either in the making of the
assessments or in the performance of any condition precedent thereto, the City and this Council
will forthwith do all further acts and take all further proceedings as may be required by law to
make the assessments a valid and binding lien upon such property.
The special assessments have heretofore been authorized. Subjectto such adjustments as
are required by conditions in existence at the time the assessments are levied, it is hereby
determined that the assessments shall be payable in equal, consecutive, annual installments,
including both principal and interest, with interest at a rate per annum set forth below:
Levy Collection
ImnrovementDesienation Amount Years Years Rate
SEE ATTACHED SCHEDULE
At the time the assessments are in fact levied the City Council shall, based on the then-
current estimated collections of the assessments, make any adjustments in any ad valorem taxes
required to be levied in order to assure that the City continues to be in compliance with
Minnesota Statutes, Section 475.61, Subdivision 1.
15
10799595v1
17. Tax Levv: Covera�e Test. To provide moneys for payment of the principal and
interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct
annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of
other general property taxes in the City far the years and in the amounts as follows:
Year of Tax Year of Tax
Levv Collection Amount
SEE ATTACHED SCHEDULE
The tax levies are such that if collected in full they,together with estimated collections of
special assessments and other revenues herein pledged far the payment of the Bonds, will
produce at least five percent(5%) in excess of the amount needed to meet when due the principal
and interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the
Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce
the levies in the manner and to the ea�tent permitted by Minnesota Statutes, Section 475.61,
Subdivision 3.
18. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered holders of the
Bonds shall,to the ea�tent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond
should not be paid when due, it may nevertheless be discharged by depositing with the Bond
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such
deposit. The City may also discharge its obligations with respect to any prepayable Bonds called
for redemption on any date when they are prepayable according to their terms, by depositing
with the Bond Registrar on or before that date a sum sufficient far the payment thereof in full,
provided that notice of redemption thereof has been duly given. The City may also at any time
discharge its obligations with respect to any Bonds, subject to the provisions of law now or
hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a
suitable banking institution qualified by law as an escrow agent far this purpose, cash or
securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if
notice of redemption as herein required has been duly provided for, to such earlier redemption
date.
19. Comnliance With Reimbursement Bond Reeulations. The provisions ofthis
paragraph are intended to establish and provide for the City's compliance with United States
Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the
"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the
City to reimburse itself for any expenditure which the City paid or will have paid priar to the
Closing Date (a"Reimbursement Expenditure").
16
10799595v1
The City hereby certifies and/or covenants as follows:
(a) Not later than 60 days after the date of payment of a Reimbursement Expenditure,
the City (or person designated to do so on behalf of the City)has made or will have made a
written declaration of the City's official intent(a"Declaration")which effectively (i) states the
City's reasonable expectation to reimburse itself far the payment of the Reimbursement
Expenditure out of the proceeds of a subsequent borrowing (ii) gives a general and functional
description of the property, project or program to which the Declaration relates and for which the
Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid
(collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be
issued by the City for the purpose of financing the Project; provided, however,that no such
Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for
the Project, defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not
exceed 20% of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement
Expenditures not in excess of the lesser of$100,000 or 5% of the proceeds of the Bonds.
(b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of
the Bonds or any ofthe other types of expenditures described in Section 1.150-2(d)(3) ofthe
Reimbursement Regulations.
(c) The "reimbursement allocation" described in the Reimbursement Regulations for
each Reimbursement Expenditure shall and will be made forthwith following(but not priar to)
the issuance of the Bonds and in all events within the period ending on the date which is the later
of 18 months after payment of the Reimbursement Expenditure or one year after the date on
which the Project to which the Reimbursement Expenditure relates is first placed in service, but
not more than three years after the date of the Reimbursement Expenditure.
(d) Each such reimbursement allocation will be made in a writing that evidences the
City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30
days after the Bonds are issued, shall be treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any of the foregoing
covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating
in effect that such action will not impair the tax-exempt status of the Bonds.
20. Continuing Disclosure. The City is the sole obligated person with respect to the
Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),
promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking(the
"Undertaking")hereinafter described to:
(a) Provide or cause to be provided to the Municipal Securities Rulemaking Board
(the "MSRB")by filing at www.emma.msrb.org in accordance with the Rule, certain annual
financial information and operating data in accordance with the Undertaking. The City reserves
the right to modify from time to time the terms of the Undertaking as provided therein.
17
10799595v1
(b) Provide or cause to be provided to the MSRB notice of the occurrence of certain
events with respect to the Bonds in not more than ten (10)business days after the occurrence of
the event, in accordance with the Undertaking.
(c) Provide or cause to be provided to the MSRB notice of a failure by the City to
provide the annual financial information with respect to the City described in the Undertaking, in
not more than ten (10)business days following such occurrence.
(d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph
and in the Undertaking is intended to be far the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under
the covenants.
The Mayor and Clerk of the City, or any other officer of the City authorized to act in their
place (the "Officers") are hereby authorized and directed to execute on behalf of the City the
Undertaking in substantially the form presented to the City Council subject to such modifications
thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii)
required by the Purchaser of the Bonds, and (iii) acceptable to the Officers.
21. General Obli�ation Pled�e. For the prompt and full payment of the principal and
interest on the Bonds, as the same respectively become due,the full faith, credit and taxing
powers of the City shall be and are irrevocably pledged. If the balance in the Debt Service
Account is ever insufficient to pay all principal and interest then due on the Bonds payable
therefrom, the deficiency shall be promptly paid out of any other accounts of the City which are
available for such purpose, and such other funds may be reimbursed without interest from the
Debt Service Account when a sufficient balance is available therein.
22. Certificate of Reeistration. A certified copy of this resolution is hereby directed
to be filed with the County Auditor of Washington County, Minnesota, together with such other
information as the County Auditor shall require, and there shall be obtained from the County
Auditor a certificate that the Bonds have been entered in the County Auditor's Bond Register and
the tax levy required by law has been made.
23. Records and Certificates. The officers ofthe City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are required to show the facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
18
10799595v1
24. Ne�ative Covenant as to Use of Proceeds and Imnrovements. The City hereby
covenants not to use the proceeds of the Bonds or to use the Improvements, ar to cause or permit
them to be used, ar to enter into any deferred payment arrangements for the cost of the
Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the
meaning of Sections 103 and 141 through 150 ofthe Code.
25. Tax-Exemnt Status ofthe Bonds: Rebate: Elections. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(i) requirements relating to temporary periods for investments, (ii) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (iii)the rebate of excess investment
earnings to the United States. The City expects to satisfy the eighteen month expenditure
exemption for gross proceeds of the Bonds as provided in Section 1.148-7(d)(1) of the
Regulations. The Mayor and/or Administrator are hereby authorized and directed to make such
elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary,
appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall
be deemed and treated as, elections of the City.
26. Desianation of Qualified Tax-Exemnt Obli�ations. In order to qualify the Bonds
as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code,the
City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 ofthe Code;
(c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for
purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax-exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2018 will
not exceed $10,000,000;
(e) not more than $10,000,000 of obligations issued by the City during this calendar
year 2018 have been designated for purposes of Section 265(b)(3) of the Code; and
(� the aggregate face amount ofthe Bonds does not exceed $10,000,000.
The City shall use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designation made by this paragraph.
27. Official Statement. The Official Statement relating to the Bonds prepared and
distributed by Ehlers is hereby approved and the officers of the City are authorized in connection
with the delivery of the Bonds to sign such certificates as may be necessary with respect to the
completeness and accuracy ofthe OfFicial Statement.
19
10799595v1
28. Pavment of Issuance Exnenses. The City authorizes the Purchaser to forward the
amount of Bond proceeds allocable to the payment of issuance expenses to K1einBank, Chaska,
Minnesota on the closing date for further distribution as directed by the City's financial advisor,
Ehlers.
29. Severabilitv. If any section, paragraph or provision ofthis resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
30. Headines. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
The motion for the adoption of the foregoing resolution was duly seconded by member
and, after a full discussion thereof and upon a 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.
Mayor
Attest:
Clerk
20
10799595v1
STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF COTTAGE GROVE
I, the undersigned, being the duly qualified and acting Clerk of the City of Cottage
Grove, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing
eatract of minutes with the original thereof on file in my office, and that the same is a full, true
and complete transcript of the minutes of a meeting of the City Council of said City, duly called
and held on the date therein indicated, insofar as such minutes relate to considering proposals
for, and awarding the sale of, $7,620,000 General Obligation Improvement Bonds, Series 2018A
of said City.
WITNESS my hand on June 6, 2018.
Clerk
21
10799595v1
EXHIBIT A
PROPOSALS
[To be supplied by Ehlers & Associates, Inc.]
A-1
10799595v1
EXHIBIT B
SCHEDULES
[To be supplied by Ehlers & Associates, Inc.]
10799595v1
�y4, EHLERS
June 6, 2018
Sale Day Report for
City of Cottage Grove, Minnesota
$7,620,000 General Obligation Improvement
Bonds, Series 2018A
�
Prepared by:
Shelly Eldridge, CIPMA
Senior Municipal Advisor
Sean Lentz, CIPMA
Senior Municipal Advisor
and
Stacie Kvilvang, CIPMA
Senior Municipal Advisor
� �
Page 1
Sale Day Report - June 6, 2018
City of Cottage Grove, Minnesota
$7,620,000 General Obligation Improvement Bonds, Series 2018A
Purpose: To finance coete aseociated with the City'e 2018 improvement
projecte wMch include the Hadley North of 65th and the Ravine
Pukway projecte.
Rating: Rating: S&P Global Ratings "AA+��
Number of Bids: 6
Low Bidder. Stifel, Nicolaue, Birmingham, Alabama
Comparison from Low Bid High Bid
Lowest to Highest Z.gg60% 3.1147%
Bid:
(TIC as bid)
Summar of Results: Results of Sale
Princi al Amount: $7,620,000
Underwriter'eDiecount: $37,542
Reofferin Premium: $111,630
True Intereet Coet: 2.8859%
Ca italizedIntereet: $365,125
CoeteofIeeuance: $SQ986
Yield: 2.00%-3.150%
TotalNetP&I $9,574,200
Notes: Due to a reduction in underwriter'e diecount, leee in coet of ieeuance,
and a premium bid, $168,977 wae added to fund the projecte.
Closing Date: June 26, 2018
City Council Action: Adopt a reeolution awuding the eale of$7,62Q000 General
Obligation Improvement Bonds, Series 2018A.
Attachments: . BidTabulation
• SourcesandUsesofFunds
• Updated Debt Service Schedulee
• BBI Graph
• Bond Reeolution(Dietributed in City Council Packete)
Sale Day Report
City of Cottage Grove, Minnesota
,,, June 6, 2018
Page 2
��� �'��� E H LE RS
BID TABULATION �E^oees iru vueuc viNnece
$7,620,000 General Obligation Improvement Bonds, Series 2018A
City of Cottage Grove, Minnesota
SALE: June 6, 2018
AWARD: STIFEL, NICOLAUS
Rating: S&P Global Ratinge "AA+" BBI: 378%
Bank Qualified
NET TRUE
MATURITY REOFFERING INTEREST INTEREST
NAME OF BIDDER (February 1) RATE YIELD PRICE COST RATE
STIFEL,HICOLAUS $7,693,8J4.80 $2,7A3,180.20 2.8860%
Bi�rningharn,Alabama 2021 3.000% 2.000%
2022 3.000% 2.100%
BOK Financial Secwities,Ine. 2023 3.000% 2.200%
SunTrust 2024 3.000% 2300%
2025 3.000% 2350%
2026 3.000% 2.450%
2027 3.000% 2.550%
2028 3.000% 2.650%
2029 3.000% 2J50%
2030 3.000% 2.850%
2031 3.000% 2.950%
2032 3.000% 3.000%
2033 3.000% 3.050%
2034 3.000% 3.100%
2035 3.000% 3.150%
PIPERJAFFRAY $7,978,377.60 $2,39Q898.50 3.0165%
Minneapolis,Minnesohe 2021 4.000%
2022 4.000%
2023 4.000%
2024 4.000%
2025 4.000%
2026 4.000%
2027 4.000%
2028 4.000%
2029 4.000%
2030 3.000%
2031 3.000%
2032 3.250%
2033 3375%
2034 3.500%
2035 3.500%
* Subeequent to bid opening the individual maturity amounte were adjueted.
Adjueted Price - $7,694,088.40 Adjueted Net Intereet Coet- $2,245,236.60 Adjueted TIC - 2.8859%
��- -� i ..... . � . .
Page 3
NET TRUE
MATURITY REOFFERING INTEREST INTEREST
NAME OF BIDDER (February 1) RATE YIELD PRICE COST RATE
FCNFINANCIALCAPITAL $7,697,213.87 $2,355,872J6 3.0226%
MARKETS
Memphis,Tennessee 2021 3.000%
2022 3.000%
2023 3.000%
2024 3.000%
2025 3.000%
2026 3.000%
2027 3.000%
2028 3.000%
2029 3.000%
2030 3.000%
2031 3.000%
2032 3.250%
2033 3.250%
2034 3.250%
2035 3.500%
BAIRD $7,717,579.15 $2,359,189.99 3.0347%
Milwaukee,Wisconsin 2021 3.000%
2022 3.000%
2023 3.000%
2024 4.000%
2025 4.000%
2026 4.000%
2027 3.000%
2028 3.000%
2029 3.000%
2030 3.000%
2031 3.000%
2032 3.000%
2033 3.125%
2034 3.125%
2035 3.250%
. Bid Tabulation June 6, 2018
.,=,. City of Cottage Grove, Minneeota
$7,62Q000 General Obligation Improvement Bonde, Seriee 2018A
Page 4
NET TRUE
MATURITY REOFFERING INTEREST INTEREST
NAME OF BIDDER (February 1) RATE YIELD PRICE COST RATE
NORTHI,AND SECiJRITIFS,INC. $7,617,987.20 $2,388,888J3 3.0885%
Minneapolis,Minnesohe 2021 3.000%
2022 3.000%
2023 3.000%
2024 3.000%
2025 3.000%
2026 3.000%
2027 3.000%
2028 3.000%
2029 3.000%
2030 3.000%
2031 3.000%
2032 3.125%
2033 3.125%
2034 3.250%
2035 3.250%
RAYMOND JAMES & $7,772,78835 $2,426,416.83 3.1147%
ASSOCIATES,INC.
Memphis,Tennessee 2021 4.000%
2022 4.000%
2023 4.000%
2024 4.000%
2025 4.000%
2026 4.000%
2027 4.000%
2028 3.000%
2029 3.000%
2030 3.000%
2031 3.000%
2032 3.125%
2033 3.125%
2034 3.250%
2035 3375%
. Bid Tabulation June 6, 2018
.,=,. City of Cottage Grove, Minneeota
$7,62Q000 General Obligation Improvement Bonde, Seriee 2018A
Page 5
City of Cottage Grove, Minnesota
$7,620,000 General Obligation Improvement Bonds, Series 2018A
Sources & Uses
Dated O6/26/2018� Delivered O6/26/2018
Sources Of Funds
Par Amount of Bonds $7,62Q000.00
Reoffering Premium 111,630.40
Total Sources $7,731,630.40
Uses Of Funds
TotalUnderwriter'sDiscount (0.493%) 37,542.00
Costs of Issuance 59,986.00
Deposit W Capitalized Interest(CIF)Fund 365,125.00
Deposit W Project ConsWction Fund 7,268,977.40
Total Uses $7,731,630.40
2018AGOImpBonds-FlNA � SINGLEPURPOSE � 6/62018 � 102]AM
EHLERS
LEA�ERS IfV PUBLIC FlNHfVCE
Page 6
City of Cottage Grove, Minnesota
$7,620,000 General Obligation Improvement Bonds, Series 2018A
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
ob/zb/zols - - - - -
02/Ol/2019 - - 136,525.00 136,525.00 136,525.00
08/Ol/2019 - - 114,300.00 114,300.00 -
02/Ol/2020 - - 114,300.00 114,300.00 228,600.00
08/Ol/2020 - - 114,300.00 114,300.00 -
02/Ol/2021 41Q000.00 3.000% 114,300.00 524,300.00 638,600.00
08/Ol/2021 - - 108,150.00 108,150.00 -
02/Ol/2022 42Q000.00 3.000% 108,150.00 528,150.00 636,300.00
08/Ol/2022 - - 101,850.00 101,850.00 -
02/Ol/2023 435,000.00 3.000% 101,850.00 536,850.00 638,700.00
08/Ol/2023 - - 95,325.00 95,325.00 -
02/Ol/2024 45Q000.00 3.000% 95,325.00 545,325.00 64Q650.00
08/Ol/2024 - - 88,575.00 88,575.00 -
02/Ol/2025 46Q000.00 3.000% 88,575.00 548,575.00 637,150.00
08/O1/2025 - - 81,675.00 81,675.00 -
02/Ol/2026 475,000.00 3.000% 81,675.00 556,675.00 638,350.00
08/Ol/2026 - - 74,550.00 74,550.00 -
02/Ol/2027 49Q000.00 3.000% 74,550.00 564,550.00 639,100.00
08/O1/2027 - - 67,200.00 67,200.00 -
02/Ol/2028 505,000.00 3.000% 67,200.00 572,200.00 639,400.00
08/O1/2028 - - 59,625.00 59,625.00 -
02/Ol/2029 52Q000.00 3.000% 59,625.00 579,625.00 639,250.00
08/O1/2029 - - 51,825.00 51,825.00 -
02/Ol/2030 535,000.00 3.000% 51,825.00 586,825.00 638,650.00
08/O1/2030 - - 43,800.00 43,800.00 -
02/Ol/2031 SSQ000.00 3.000% 43,800.00 593,800.00 637,600.00
08/Ol/2031 - - 35,550.00 35,550.00 -
02/Ol/2032 565,000.00 3.000% 35,550.00 60Q550.00 636,100.00
08/O1/2032 - - 27,075.00 27,075.00 -
02/Ol/2033 585,000.00 3.000% 27,075.00 612,075.00 639,150.00
08/Ol/2033 - - 18,300.00 18,300.00 -
02/Ol/2034 60Q000.00 3.000% 18,300.00 618,300.00 636,600.00
08/Ol/2034 - - 9,300.00 9,300.00 -
02/Ol/2035 62Q000.00 3.000% 9,300.00 629,300.00 638,600.00
Total $7,62Q000.00 - $2,319,325.00 $9,939,325.00 -
Yield Statistics
Bond Year Dollars $77,310.83
Average Life 10.146 Years
Average Coupon 3.0000000%
Net Interest Cost(NIC) 2.9041682%
m„e i�e�resc co�e(TTc> z.sss9oiai
Bond Yield for Arbitrage Purposes 2.8256880%
nu i��ms��e co�e(nrc) z.9��9zaai
IRS Form 8038
Net Interest Cost 2.8352969%
Weighted Average Maturity 10.071 Years
2018AGOImpBonds-FlNA� SINGLEPURPOSE � 6/62018 � 102]AM
EHLERS
�EaoEres in Pueuc FinnrvcE
Page 7
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Page 8
City of Cottage Grove, Minnesota
$3,103,943 General Obligation Improvement Bonds, Series 2018A
Assessments
1.50% over TIC - Equal Payments
Assessments
Date Principal Coupon Interest Total P+I
12/31/2020 15Q462.94 4.400% 136,573.49 287,036.43
12/31/2021 157,08331 4.400% 129,953.12 287,036.43
12/31/2022 163,994.97 4.400% 123,041.46 287,036.43
12/31/2023 171,210J5 4.400% 115,825.68 287,036.43
12/31/2024 178,744.03 4.400% 108,292.40 287,036.43
12/31/2025 186,608J6 4.400% 1OQ427.66 287,036.42
12/31/2026 194,819.55 4.400% 92,216.88 287,036.43
12/31/2027 203,391.61 4.400% 83,644.82 287,036.43
12/31/2028 212,340.84 4.400% 74,695.60 287,036.44
12/31/2029 221,683.84 4.400% 65,352.60 287,036.44
12/31/2030 231,437.93 4.400% 55,598.50 287,036.43
12/31/2031 241,621.19 4.400% 45,41524 287,036.43
12/31/2032 252,252.53 4.400% 34,783.90 287,036.43
12/31/2033 263,351.64 4.400% 23,684.80 287,036.44
12/31/2034 274,939.11 4.400% 12,09732 287,036.43
Total $3,103,943.00 - $1,201,603.47 $4,305,546.47
Significant Dates
Filing Date 1/Ol/2020
First Payment Date 12/31/2020
2018AGOImpBonds-Asse � SINGLEPURPOSE � 6/62018 � 1026AM
EHLERS
LEN�ERS IIV PUBLIC RNPNCE
Page 9
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