HomeMy WebLinkAbout2015 05-19 CC PACKETC
City r't (.}etn.:I..tlke..'MN
Cite (Couticil iVleelillg
9i11; 2015
611 ro Order -of Cite Cauncil*Mj CC!ting -By Mayor Uzpin at 7•_p;M.
Gall of. Roll
Uzpen
OtheMin*Attenda.nee: Sign-up Sheet
Lffidner Kx111v
... ....... E3c►sak
Approval of City Cognciil MinUtes and Agenda
• Cin, C:ouricil Agelizla fol..tllis 1pec(ino..
• ;1��tap10s 0Fthe City Gqurrcil Meetitl�c !/lccelat Agenda
fo1- April
Committee. Reports
Old $usiness
• Newslertett ideas
Public i4earing
• None
New Businem
• SEH pre:sentatioa of file rmaI water !'easibilit_v report
.4 Acceptance bftile film water feasibility report,
o Set flee date: and time for the inlpwvel�jent hearing R.esoludon. 2015 - Ob
.• Approval 01'Private Activity Re.1OerIU
• Rena.C. E3ond Ftrllding
tillcirlg n! ti1� C"its 13.ond ltesoltiti.ort 2015 -• 07
• (`Gauls t7or MaN ?o 1.5
+ Monthly l=itlticia! Reports
• f'resentatiolls frc7in ilie l�1iblIC, five III illtlteS tna�itllturl preselttation
• Open 1tcnls !or the Coullc:il lvlc111bers to Urine
w top.
Future Council Meetings
• Works11.0p Meetin4� 1.111le $th at 7:.0(F
• Next.C:it'y ("oullciEmeeting, .idle-.16th 3t 7:00 p..11.1,
Adjournment
• The meeting acljc. urried at
City of Gem Lake City Council Meeting
Tuesday, May 19, 2015, 7:00 p.m.
Heritage Hall, 4200 Otter Lake Road, Gem Lake, MN
Sign In Sheet
T 0 Wow
City of Gem.Liike City Council 1VMecting .Minutes
Tuesday; May 1.9.; 2015, 7 00 p.m..
Gem Lake C;ity.Hall, 4200.Otter Lake Road, Gem Lake Minnesota
'Mayor.Uzpen call .(.A. the meeting to order at 7 01. p.rn. Couneil.i'neinber.s Artig-•Swon-iley, Bosak,
I<uny arid I - ridner we r � presont. Others in at.tei�daricc: Nick Anhut; Ehlers and Associates,
I.M.; Jrislin Gese, S.L.F T-; Gina Fic rini, Kennedy'& Graveii; Toni Kelly, City, Treasurer; Chad
Leinmons, lCity Attorntav; lanna 5everati.ce, Pt*SbvtOr0n' Homes; Paul Erneott, resident; Carl.
Bille; Rachel -Darling, Shannon Lucey and Kevin Towner, student.observe*n5.,
r.. �. ...... ...... .'_._"._......................_......._........_................. ..................._
Upon Cation made by Councilmen-iber Jim Lindner, secofided'by CouncilmeM- ber Artig-
Swomley, Agejlda approved by 5-0 `rote.
Minute�i,A�riI 21•j•_2Q1,5
Upon motion by Coun.6Iniernber. A.rtig�Swo.mseconded by Councilmeznber Lindner, the
minutes from the -April 2.1, Z075,.ci.ty c=omicil nieeting were approved with no changes. Motion
passed.
Committee Reports,
None,
Old Business
Netivsletter ideas
New r"'ide nt in-Eiillary 1= J-111s whose home is going to be in the l.,uicury fjome'lbu.r later this
year,public heafing— jurie 16, 201.5, Waiter'in the business district, road maintenance vvpda.tq,
road closing update _ Councilmember Lindner to wiitf!, new resident on Goose Lake road.
5.1.H. Prgsentation Final Water Feasibility Report
ftist..ir� Gese ftom S.C..I T. presented the.final water feasiWility report. The .final -report inetbdes
revisio.jig to -add water taboth sides, costs increases and prelirninaiv assessment costs. Tlie
project .s still on track for coinpletion by the end.of 2015.
tV-(GNsr, �:alce City Council nieetir:g r :mutes, May 19, 2 115. Page 1
QPon motion: made b Councilmember Artig-Swomley,.Seconded by Councilmember Bosak;
the. date of June 16, 2013, was set for the improvement heariaig Resohutinn 2015-08 and
appro�led the. final water feasibility report. Motion passed.
A ,- o_val of Prev11e�Q� t�iv,Ey:R�venue Bm l�un_dWag
A motion w6s niade by. C,'ouncil.mem.ber Arti:g-Sworriley, Seconded by Councilmembur i3osilk Lo
approve the policy for the Private Activity Reuenpe Bond Funding.. Motign:passed.
A motion was made by Coo ncil rm., mber Lindner, seconded by Councibnember,Artig-5W1P1u' },
to approve a pu . I ..icaring for Juno l..6 2015), for the issuuitice of U-1e bond fo# Presbyterian
f-Iotnes. Motion passed..
Refiinanc.ing of the City .Bond Resolution 2015-t?i
Nick Anhut froze► i:hlem-mind Associa", Inc. updated the.cogncil on refinanch.19 of.tlie. city
bond. A motion teas made by Couxicilinember .Lindner, seconded by Covincilt—nem 5er Artig-
Swomley ko accept Refinancing of the -City. Bond Resolution 20.1,55-07, motion passed.
Clai.nns for 1VIay, 2{)15
A motion was.n}a& by Councilfhembe.r Artig-S-wohiley. seconded by Council ,a znber-:Bosak to
accept. the claims for May, 20*15. N(totion passed.
Monthly Financial,-,
Tom Kelly, Citv Treasurer updated the council on the -financials, including a quarterly financial
statement which she will be continue *to.do in the future. A brief discussion ensued about
charitable gambling proceeds processing.. Council agreed to disburse.$:3,0()ilthe W0101v Lane`.
School literacy fund.
Presentations from the ] ilic.
Chad Lemmons, City Attorney, stated that fete Sampair, .Sampair Appraisals, who was
solicited to do appraisals on business district properties disclosed .that lie did prepare are
7pp.raisa.l for the l3irkol.and properties.. Nlr..Sampair inquired if the cocirrcil considered the
:action: as a conflict of interested. -C ouncilmembets agreea that it wasn't.a conflict of iriterest.
City of Gem Lake City Council meeting nimutes, May 19, 2Q15. Page 2
C
Counc:i.lmember. l..indner stated that the bridge twer Loose Lake road will be closed in July fot-
14 manths. Aare information about this:constructi-MI project will be covered in the next issue cif
Gem LA—e Nevvs.
Adi-o r-hen t
There tieing no further business upon motion by Councilmember Lindner, seconded >Jt�
Coundimember Artig-Swomley, Mayor U.zpen adjourned the meeting at 7s46 p:m.
f c'+pe4fftrlly sufrnrittecl, Gloria: `Rssier
City of Gern lake City CouncP meeticig minutes, May 19,..2015 Page 3
FOR
APPLICATION TO
CITY OF GEM LAKE MINNESOTA
FOR
PRIVATE. ACTIVITY REVENUE BOND FINANCING
Approved by the City of Gem.Lake.city council
Effective as of
Treasurer
City of Gem Lake.
420 Otter Lake e Road
'
Gem. Lake, . , MN 5511.0
PROCEDURE FOR APPOCATION
TO THE CITYOFGEM LADE FOR
PRIVATE ACTIVITY REVENUE BOND FINANCING
Table of Contents
Page
Part I General .......... .......... .•................. .................................. :.................. ,......... ......................
1.
PartII -Guidelines ....... :.......................... :.:.:......... :... ,................ ................ :..... ............ ::... .•... I ... 2
Part III Miscellaneous Matters ..:.:,.......:..........:.
Part IV Application for Tax -Exempt Financing
(Commercial, Industrial, Health Cate or Other Non -Housing Projects) :................
Part V Application -for. Tax -Exempt Ff coding
Milti-FamilyH4using}....................... ......K......,...............................,......... .. ....10
Part VI Addendum to( Application .............4.............
Part VII Indemnification .Letter ofAgreement;......:.....:....:..:.................
PART
GEENNERAL
Undex'`the Minnesota:Municipal Industdal Development Act, Minnesota Statutes; Sections 459.152
to 4G9:1651 (the "Industrial Development:Act"), the City of Gem Lake. (tile "Cit " has
issue revenue bonds or noites to atffact or promote economically sound industry and eonzmer authority
to
the City.
Under Minnesota Statutes—Oiapter.:.. 46 G: the you
revenue bonds fo finance multi-fantily residential housing ra'ects for low
---.-------��-�-�--------- srrrg....A.ct")._the City is authorized to issue,
g
income persons and elderlyg P J and moderate
persons, Projects must be etribodied in a Dousing Program as that term
is defined in.the.Iousing.Act;
The City.Council.Of Gem Lake. is. aware that such: fnancing for certain private activities ma
benefit. to the City and will.consider. requests for taX:exempt financing subject to these • y be of
Tbe:City Council considers tax exempt financing to be a privilege; not aright.
Gwdelirtes,
It is the judgment Of -the City Council that tax exempt frnatrcing is to be used on a selective basis
to
encourage certain development that offers a benefit to.*the City as a who including :significant
employment.and housing opportunities. It is the 4pplicant's responsibility to demonstrate the be
to lire City., both in *-iting and at the requiiea public: hearing. The .a applicant: should .understandne$t
although approval may have been granted by. fie City for the issuance of.11nancin for a similar
project or a similar debt structure, that is not a basis upon.whiclr a royal g
aPplication, will be judged on. the: merits of the project as it: relate P o the ubL'granted. Each
Housing -Act or the Industrial Development A* & and the benefit to the. City at the.timeudzpeoseuesti the
financing: is being;cor�sidered. req
In no event: will the.. City issue pri�are activity bonds for tho ri
expenses of any borrower; P miuY purpose of financing operation
Provided chat bond proceeds gay fzurd reasonable operating and
replacement reserves where the primary use of proceeds is to ance capital expenditures.
1
PART 11
GUIDELINES
1. The City will consider tax. exempt financing for coriunercial, industrial health care, and any
other projects authorized�to be financed under the Industrial Development Act (zeferred tows
"non -housing projects"), and housing projects under the Housing Act. An applicant fbr tax.
exempt financing for non -housing projects pursuantto the industrial Development Act must
submit to the City the application contained in Part W of these. Guidelines. An applicant for
tax exempt financing forIousing projects.:pulsuant to the Housiing.Act must submit to the,
W ...
City the application contained-.in-Party o ese Gui a ixres. - -� - w - ----� - -
2. Projects must be compatible with the overall development plans acid objectives of the City
and comply with the zoning and land use regulations of the City:
I An application will not be considered by the City until te#itat ve City Code findings acid
requirements have been made with respect to zoning, Building plans, platting,. streets,. and
utility services. The. application .must be accompanied by the addendum contained in Part
'VT -of these Guidelines and must provide information as to the projeces need for municipal
services including, but not limited .to,: street improvements, water and sewer services, and
-police and fire protection.
4.. The project°must be a positive benefit to the City. The project must be of a.nature that -the ,.
City wishes to attract, or an existing business. which the City wishes to have expend within
the City,.*cdi sidering.employment oppartwlities, incentive for further development, impact
an City services, and support for the industrial, cominercial or health care: or educational.
facilities currently located in the City. A housing *project must provide significant bousing
opportunities for low and moderate income persons or the elderly.
S: The City. Council wily if .requested, grant an applicant a pre -application review: The
purpose.of the pre -application review .is -to. inform applicants of the possibility of rejeciipli or
.the possible bases for such rejection. The fact. tlnat.the project is not rejected at the pre=
application stage is not to be construed as approval.of'the. projector as an indication that the
project will be -approved upon Tormal request to the City Council. Requests for tax exeimpt
fiinancing may be rejected by the City whether or not the. protect. was submitted to a pre -
application review and regardless *of the: outcome; or recorruttendation of that pre -application
review.
A request for pre -application review must be.* in writing; addressed to the pity Clerk; and set
forth the name of the. project,. the type of project intended nd the name; address and
telephone number of the person who will be -representing the applicant at*the pre -application
review; together with such additional information as the applicant desires. to submit.
6. The underwriter for 'die *Proposed Bonds will submit a letter that establishes the financial
feasibility of the. project. Applications may.; in the alternative, include a signed letter from a.
responsible financial institution indicating- that the project is economically feasible and
z
' viable and stating. than bonds can be successfully sold for the project or that ail individual or. institution intends. to purchase all of the bonds.
The:'applicant must receive and approval from the appropriate state agencies, secure financing
commence construction within one year of the date of the resolution giving preliminary .approval to the project or the housing program. Upon application, the City Council. may
approve ah-,extensioii O f the preliminary approval..
The City will OP.oirit bond counsel for the band issue, which will normally be the City's
regularly. -retained bona co el.
iirsuant to t}ie Industrial Development Act and the Housing Act, consideration of do
application for tax exempt financing. must be done at a public hearing. held by the City.
Modifications to the project after the .public hearing. and preliminary .approval must be
consistent with the scope of the project -as proposed at the time ofpreliminary approval.
&• The: City is to be reimbursed and held harmless for and from any out-0
f-pocket expenses
related to the tax exempt financing including, but not limited to, legal fees, financial analyst.
fees, bond counsel fees, the City staffs expenses in connection Wit-li-the applicatiok
deposits -or application. fees required under state law in order to: secure allocation of bonding authority: The. applicant must. execute a .letter to the City undertaking to pay all such
expenses. A form of the required letter. is set -forth as Part. VII of these Guidelines: A .non
refundable application fee. in the. amount of $500 must. be included with the
the appUcatian. submission of
9• Prior to closing and delivery of -the bonds for the prof eet, the' applicant must pay, or commit
to pay an administrative fee in the of fount of .5% (,( ct, the*
a tlie original principal of the
bonds. The administrative fee will be paid iii al ump suin at closing on the bonds: The
administrative. fees required by this. paragraph will be adjusted if -nec ry to ensure
compliance with the lntemal Revenue Code and.regulations.
If the City determines that issuance of the bonds requested by the applicant is reasonably
expected to cause goyerxnnental bonds issued by the City in that calendar year to be.
ineligible for designation as "qualified tax exempt Obligations" under Section 2 5 3.; : of
the Internal: Revenue Code of 1986,.as amended (also known as °`bank ���
applicant will be required to reimburse the City,uancequalified', the
for any interest rate differential between.bank qualified and n 07bank qualified bo thotids.��s�
IQ. Applications for financing must. be made ozr the. forms attached to. these -guidelines. In
addition, the applicantt must famish a. desez•fption of the project; a plot plan, elevation of
Proposed buildings, landscape, lighting; and site preparation,. together �t�vitlt a brief
application.
description of applicant
.and . the proposed financing in such form as.required.at the time of
1I. The City Council may, .in its sole discretion, impose. conditions exceeding those required
under the City building code in respect to. exterior building. materials landsoap"ing; signage
3
r appropriate on a case -by -
lighting, and. sob -other aspects as the CityCouncil:may conside
case basis.
12. The City Council may, in its sole discretion, withdraw its.prehi-hinary approval of:a project
any time if in its judgrtient.the purposes. of the Act will-bot.be served by going forward with
the project and its f naneing=
4
PART III
MISCELLANEOUS MATTERS
1. Ratings. Tile City will give its most. favorable. consideration to proposed tax exempt bond
issues that. have the same -rating as the City's obligations by Moody., Investment Service or
Sta .4Nd 4 Poor's Corporafion. Issues carrying lower ratings or .don rated issues may be
sold only to institutional or other investors on a private placement basis. and must be in.
denominations of at least W0,000. The City Council may depart from this guideline when
in itt. judgment the project is nf:a level of merit and public Purpose to justify. the departure_ _
--- --- — --- anei-in case a such► aeparture the City Co-cil must state its reasons Therefor in. the
resolidibn:awarding the sale of the bonds.
2. Refunding. The -City will .normally approve the refunding of a tax-exempt issue but -only
upon a showing by the .applicant of (i) substantial. debt service savings, (ii) the removal -of*
bond covenants. signifiea ntly impairing the financial feasibility of the project, or (W) both (i)
and (ii). In the case of reiundings of bonds for which. the administrative fee listed in
paragraph 9 of Part II have been paid in full, no new administrative fees are required; but: the
non-refundable application fee must be. paid together with all City expenses in excess of that
fee.
In the case of refund' wigs. of bonds where no administrative fee has.. been paid, the
administrative fees listed in paragraph.9 of Part Il must be paid. The application form -is to
*be- appropriately modified,
.Subsequent Pioceedings. Where changes tb the underlying documents or credit facilities of
outstanding. bond.issues are to be.made and require Board. action. (including changes that are:
a "deemed reissuance" under Internal Revenue Service regulations), no administrative fee is
charged but. a. non-refundable :fee of $500 must be deposited with the City to cover
administrative cpsts. No formal application form is required.
4. Issue *by Another `Political Subdivision. T`he City will* consider requests- fbt tax exempt
financing of projects in the City by other political subdivisions. In. these cases the non-
refundable application fee must be paid and all procedures through the. approval of the
preliminary resolution followed. No..administiative fee is charged, except actual cost
incurred by the City must be reimbursed. The.-Ciiy _reserves. the:right. to reject.such requests
for any rew.n; including without limitation a determination by the City that. such issuance
by another political subdivision would -impair the City.'s abilaty to issue governmental bonds
as "bank qualified bonds" (as deffned in Part II, paragraph 9) in -that calendar year.
5. City Contact: Initial. contacts about tax-ekempt.firiancing are.made by contacting. -
City Clerk
White Bear Township
1281 Hammond. Road
White Bear Tbwnsbip, MN 55I I.0
5
6. Deadlines. The City conducts all tax exempt. financing matters: at -regularly scheduled -
meetings. Docurrients. for consideration must be at the City office -on the Tuesday preceding the
m meeting at which fhe..atter is. to be considered.
7. Post -Issuance. Compliance, The City will require that each borrower dembnstrate to the City
that the: borrower will comply with substantially the same procedures for post -issuance
compliance that apply to City governmental Bonds zmder the City's Post Issuance Debt
Compliance.Poliey, approved . as amended from time to time. The
City -may require that borrowers rota' r a trustee *an47oz an Independent -arbitrage consultant for
the term ofthe bonds.
8: Issue for a Projeet Outside. the City. The City -will consider requests for tax exempt
financing of projects outside the City-. In these cases the non-refundable application fee and
administrative fees listed in paragraph 9 of Part II must be -paid and all procedures through the
approval of the preliminary :resolution followed, The. City reserves the, right to reject such
requests for any reason.
9. Departing From the Guidelines. The. -City may depart from this policy or guidelines if
in their judgment the project is deemed beneficial .to the community and the -project would not
take place without such departure.
2.
3.
El
PART IV
APPLICATION FOR
TAX-EXEMPT FINANCING
(Commercial, Industrial, Health Care. or Other Non -Housing Projects)
APPLICANT
a. Business,Namq:
b: Business Address:
c: Business Form (corporation, partnership; so -le pi-bprietpohip, etp.);
d. Authorized Representative:.
e. Principal contact person and telephone number:.
PURPOSE OF REQUESTED. FINANCING;
a. New Facility (describe):
b. Expansion (describe):
C. Refunding (attach explanatory letter)
GIVE BRIEF DESCRIPTION OF NATURE .OF BUSINESS, PRINCIPAL. PRODUCTS,
ETC.:
ESTIMATED PROJECT COSTS: (Not: required. for refxuiding)-
Land
Building
Equipment
Architectural, Engineering.
Costs. of Issuance
Capitalized Interest;
including discount
Other
Total Financing. Requested
IVA
AMOUNT OF FINANCING REQU.ESTED:.S C_2%of project costs)
b. TYPE OF FINANCING PROPOSEb
Bonds Tax Exeinpt..Mortgage.
Expected Tenn of Financing Xeacs
Expected.. Financing .Rates
Security:
Mortgage
Letter of Credit
Guaranty (third party)
Guaranty (personal)
Unsetwcd
Other (specify)
7. BUSINESS PROFILE: (Not required forrefunding)
a. Is the business located in the. City of Gem Lake now?
b. Number of employees in the. City of Gem Lake:
1) Befor,.this project:
2) After this project:
c. Approximate annual sales:
d. Length of time'in business:
Length of time. in business in the City:
e. Do you have plants in other locations? If so, where?
8. NAMES OF:
a. Underwriter/Lender (name and contact person):
f
b. Corporate Counsel:
C; Underwritees/Under's Counsel:
9.. WHAT IS YOUR TAR -GET DATE FOR:
a. Construction. start:
b. Cbnstructioi.i completion:
Attachihents,,
a. Project description:
b. Initial application fee
C. Indenmification-Letier of Agreement
I certify that the information *provided above 'tontaifis. no misrepresentations, omissions or
concealments' ge 1. of material facts and that the. information given is true and complete to the best of my
knowledge. I have been furnisheda copy of the Procedure for -Application- to the City of Gem Lake
of its content and to be bound b
for Private Activity Revenue Bond Financing and am aware an y.
its-t -and the terms of the indemnification.letter.
Signature Date
Title
9
PART V
APPLICATION FOR TAX-EXEMPT FINANCING
(Muli:i-Family Housing)
DATE OF APPLICATION:
APPLICANT:
.... .._........_.... CQINTIACT' PERSON:`...�.v...�......_......._....�.v..._......_.._._....�.v..._.,...._........_...�,v..._....
TITLE:
ADDRESS:
TELEPHONE
PROJECT NAME:
PROJECT LOCATION, -
PROJECT INFORMATION
Efficiency
One Bedroom
Two Bedroom
Three Bedrown
Parking. (included in rent/
not iridluded in ient)
Laundiy $
10
Utilities included in.monthly-rent:
OPERATING EXPENSES
Waf Gross (Annual).
TOTAL*PROJECT COST: $ DEVELOPER EQUITY: $
DEBTSERVICE: $ *HARD COSTS:
LAND VALUE: $ SOET COST$: $
*(Hard Costs are all project costs the IR$ has determined to be eligible items for depreciation.)
ANTICIPATED INTEREST RATES: AMORTIZATION SCI3EDULE:
% -Year Amortization Schedule
If the project were convention-
ally financed, what: interest
rate would you, expect to pay?
o�
SALES :ASSUMPTION:
Flow many y*s do you plan to
.hold the property before you
sell?
years. At what percent do you
feel the value-oftheproject
will appreciafeT
EQUIPMENT:
DEPRECIATION METHOD:
Years:
Amount of Total Basis: $
$ of project-eost is for equipment (e.g., washers/dryers)
ANTICIPATED INCREASES: ANTICIPATED VACANCY RATE:.
Revenue: % per year
Ekpen:4es: % per year
First Year:.
After :First Year. ✓ac
11
CONSTRUCTION SCHEDULE
Anticipated construction commencement date:
Anticipated constivction'cdmpletion date:
ADDITIONAL INFORMATION:.
I .certify that the. infomation. provided above contains. no. -misrepresentations, omissions or
concealments of iriaterial facts and didt the Wormation given is true and.complete to thee best of my
knowledge. I havt been furnished a copy of the Procedure for Applicati.on'to the City of Gem Lake
,for .Private: Activity Rexeuue Bond. Financing and is. aware of its content and agree. to be bound by
:its terms. and the terms of the indemnification letter.
`Signature Date
Title
12
PART VI
ADDENDUM. TO APPLICATIONS:
The following items must be attached to eachappfication:
APPENDIX. A
A luiefAescription of*lhe organizational structure of Applicant, including parent subsidiary and
affiliate organizations (if applicant is, other than an individual).
APPENDIX B
Statement of Applicant.s-.bi siness-history, including.anymultl-family rental projects.
APPENDIX.0
The name, address; .and telephone number of-
1. The Applicant's legal counsel
.2. The Applicant's accountant
3. *The architect.of the proposed:Project.
4. The engineer of the piroposed; inject
5. The general. contractor of the -proposed Project.
APPENDIX D
1. Present ownetship of the proposed Project site and Applicant's interest therein..
2. Present zdriing of the Project site and a description of what City land use approvals :are
needed for this project.
3. The projected Timm- bei of new employees to be added to the Applicant's permanent work force
because of the Project (for Commercial, Industrial or Health Care only).
4. Other financing attempted or available -to the Project including any interim financing.
5. Statement regarding whether or not. this project has all required City approvals. If the project
doe., not have: all of the required approvals; list the approvals still needed and-$ tentative time
schedule.
APPENDIX E
Indemnification. Letter of Agreement.
APPENDIX F
.Proforma Analysis of the. Project
13�
PART VII
INDEMNIFICATION LETTER OF AGREEMENT
The: City Council
City of Gem Lake
4200 Otter Lake Road
Geiir Lake, MN 55.110
R.E-. Application of for Tax Exempt Revenue Bond Financing by the City of
Gem Lake
Dear City Council:
This letter of agreement is given.* by , a under the
laws of Minnesota C'Applicant") :a� required by the City of Gem Lake; Minnesota in: connection
with its consideration of an application for tax exempt revenue bond financing for the project
described in the application.
Applicant agrees as follows:
I. Applicant agrees to pay or reimburse the City for any .and all costs and expenses which the
Ciiy may incur in connection with its consideration of the project:.and the granting of tax
exe .p revenue bond financing therefor, whether or not the.project is preliminarily approved
by-the.City, whether or not the: project is:approved by -the State of Minnesota; whether or not
revenue bond financing is finally approved by the.. City, whether or not the bonds are issued
and. sold, and whether or -not the project*is carried' -to completion.
2. Applicant agrees to indemnify and hold the City, its officers, employees and agents harmless
against any and all .losses; claims, damages, expenses or liabilities; including attorneys fees
incurred in their defense, to which. the City, its officers,. employees and agents may become
subject. in connection with the City's. .consideration, issuance or sale of* the bonds for
Applicant's project and the carrying out of the transac 'ons contemplated by this agreement
and any resolutions adopted, or agreements executed. by the City in connection with the
issuance of its bonds br-this project.
�. Applicant hereby releases the City; its officers, agents and enipioyees from anyclaims, causes
of action, losses, damages, .or liabilities which it may have against the .City, -its officers,
agents, and employees or which it may incur in connection with: the City's consideration of
the :application for industrial development. revenue bond financing for Applicant's project; the
failure of the City, in its discretion, to issue tax-exempt revenue bonds for Applicant's... pMJ
Ject;.
the issuance and sale of the bonds; the :construction:of the project; or any other matter -or thing*
of any type or nature whatsoever wluchnmy arise in connection with the foregoing.
14
4. Applicant is aware of the City'sapplication *4hd administrative fee structure for tax exempt.
financing and agrees. and covenants that all such:fcos will be paid in the, amount.-atid at the
times.requited.
Dated:
I
(Applicant)
By.
its
15
MEMORANDUM -OF INSTRUCTION
TO: *C-onnie Kuck -
Bond 'Trust Services Corporation
1' ROMy City of Gent .L.ake, Minnesota
D.ATH: .tune: 17, 2015
RE: $850.,0{}0 Creneral Obligation Capital Improvernent Plan Bonds. Series 2007A
City of Clem Lake. Minnesota.. dated June 20, 2007 and
General Obligation Ref ending Bonds, Series 20l 5A,. City of Gem rake.
Minnesota, dated June 17., 2015
The C'ity of Gem Lake. Minnesota (the "Issuer") previou,,41.y issued its General Obliplion C.4pital
ftriprovemen( Plan Bonds. Series 2007A (the "Series 2007A Ronds''} in the aggregate principal amount of
$850,000,. of which $7.30:000 in principal amount is callable on or after February 1, 201 U. l?cu suazlt to a
resolution adopted by the City Council o'.the Issuer on May 19, 20.15. the City has .provided tier the
issuance of its General Obligation Refundin Bonds.. Series 2015A (the ``Refunding Bands") in. ilia
original aggregate principal amo�ttnt of $ On the date hereol,. a portion Of the proceeds of the
R.efitnding Bonds will be used to redeem and prepay the 2017 thrattgh 2028 maturities of the SeriCIs
2007A Bonds on. February 1. 2016 (the "Redemption [Date") and pay the interest accreting and due on the
Refunding Bonds to and .including the Redemption. Date.
I'his letter sets forth the .conditiotts for calling the abevc-referenced bonds for*-redernptio--o February 1.
-201 G .and for the payment of interest on the Refunding Bonds.
On June 1.7. 20.15, Bond Tritst Services Corporation (the "Redemption Agent") wilt. receive by One or
more -wires, .fluids from or at. *the .direction of 19suer in the amount of $ —. __. (the "Payment AmocmL").
The Payment Amoutit is the. atiiount ri.&essary to pay the. outstanding principal arrto.unt of tlic Belies
2001A Bonds called for rcdemptioh%on February 1, 2016 kind the interest on the Refunding Dotuls clue c011
August 1,.2()15 andFebruary 1, 2016, such cfat4,s.constitutingthe interest payment dates on the Reluntlitig
Bonds ul9 to and including the Redentptiori Date. The tirnotints and dates. Of stic;h payments. tide shown in
:Attachment B hereto..
We request that you holed the Pzyti.ient .'Amount without investment and apply the Payment :amount kt5
described in the Preceding paragraph. Please hold the -Payment Amount.in trust U11til applied to payment
oi'principal of the Series 2007A Bonds and interest on the. Refunding Bonds as described herein.
In the event any .funds remain afieX• payment in. full of the Payment Amount and payfilent in full or the
1:06s. aiid e\pmms of the Redemption Agent, such fumes should be returned to the lssuer:;
4(t I2 �jv2 .Itii Cii"i<,o-12
(Iage 2
Tfre I.ssui:r agrees that. upon reeeipt of notice li•om the' Redenippoii Argent that the Payment A.Mount will
ilot be. su.fiicient. to..make any payment when. due. to the holders of any of the Series 2007A Bonds -or the: x
Refunding Bonds, the Issuer will. forthwith deposit wlth.you, 1 com meanies, on hand and legally available
l'or such purpose.. -such additional monies as naay be required to pay fully the amount -so to become due.
and payable.
Also. attached to this letter as Attachment A is. a Notice of "Ca.11 'ftfr Redemption of the Series 20t?7A
Honds W.ie '`Notice"), The Issuer has authorized the call for redomption of the Series 2007A Bonds and
rajuests that you provide. the Notice to the holders of the Series 20.67A Bonds as and when required b
the Series 2007A :Bonds and the authorizing dodunient's for the Bond and to provide the. Notice to 41'110
I)cpository '1•twat:Con< paiiy.in.accordance.w•ith its:operaticnal arrangernentg.
The Issuer understands :that as to the existence or *nonexistence c)i' any -fact of 1.s to the stiflici4ncy (Ir
validity (tf any instrument, paper or proceeding, the Redemptiim Agent is entitled to rely upon a certificate
signed on behalf of the Issuer by the Ma) -or or the City de
rk or their aatliorired designee as strElicient
evidence of the facts therein contained.
The Issuer understaacls and agrees that. the. responsibilities of'the Redzinption Agent are limited to, (a) the.
safekeeping and segregation of the .Payment Amount; (b) the application of the Payment Amount as
herein provided .and (c} providing the Notice as described above, Further, artlrer, no. provision oi'tliis 1+`ucr shall
lie: construed to require the Redemption Agent to keep the: identical ni<ics; or any earl thereof, received
from the issuer -on hand. but monies tjf an equal amount shall always be maintained on hand as funds held
by the Redemption Agent as t:ritstee, .belonging to the Issuer and 4 $pedal account shall at all times he. _
inawtained.on the books of the Redemption Anent. together with such monies:
Very truly yours.
CITY OI= -GEIM LAKE.. MINNESOTA.
City .Clerk
Page 3)
Securit-v Advice Waiver:
The lsst(Cr ttck.J10.wledg�!s that to the extent regulations of the Comptroller of the Cilm6icy Or any other
regulatory ontity grant the. Issuer the right to receive brokerage conhrriiatians of the security transactions Rs
they Occur. the Issuer specitic..ztfly waiYCS MCC.ipt of Such confirmations to the extent permitted by law. The
FsLro..'W Agent Will furnish the Issuer with periodic cash transaction statements .thaCinc:lude the detail 1'6.r all
investment tr'arlgactions elude by the Escrow Agent for all current andhtutcascounts.
IMPORTANT INT" )RMAT ION ABOU7 PR0C 1' .DURF$.FOR C)Pl I�`1NC; :1 '`E ' ACTO( INN:
To help tltc goi ernment fight the funding of teii'orism and t�rortey kaunderjm� ! actit iEies, Federal 1, r cltlilcs
ell lirtancial institufiolis to obtain: verity and record information that. idClitifies each person wh() opens an
account. f'or anon -Individual person such as a business entity, a charity, a Ti`ust or other legal entity we Will
ask for documentation to veriA, its formation and existence as. a legal entity. We may also ask to see
financial statements, licenses, and identification and authorization documents from individuals claiming
:authority to represent the entity or other relevant documentation..
40(239v-) 19NI W190-12
1?age.4
ACKNOWLEDGEMENT AND RECEIPT
The undcrsigned does hercbv acknowledge. recci.pt of funds' in. an amoum :t1('tic°icnr to pav all
outstanding principal of the. $$50,00.0 General Obligwicm Capital Improvement Plan Bonds. Scrics M07A
dated June 20, 2007 ob February I, 2016 and to pay interi st on the � _ General 0b.ligal on
Refunding Bonds. Series 20*1.aA.dated Lune I'll, 2.015.* on August 1, 2015 and February 1, 20I6.
BOND `f,RUS.T SERVICES CC)RPOR! TION
I3V
Its
ATTACHMENT A
NOTICE OF CALL FOR IitEUMP'i.`.ION
.850,900 G-19ARAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SERIES 2007A
CITY OF GEM: LAKY, MINNESOTA
NO'HCE IS HERLMY GIVEN that,. by order of the City Council of the'City of'Gem L,akc. Minnesota {the
"Issuer'?. there have been called for redemption. and prcpayinent on i-ebrtiarl' 1, 2016 the "Redemption Date"). all.
otltst tndirig bonds of the Issuer designates! as $850.000 General Obligation Capital Improvement Ilan Bands.
Series 1_001A, dated June 20, 2007, having stated maturity dates of l-ebrutiry I in the Sears 2018, 2020,.2022., 2024,
2026, liner 2028, totaligg $730,000 in outstanding prine.tpal amount,. and Nvith the foiloxving C UISIP nuinbtms:
i3ondNumher
i
Matttrtt}
l�i`incipal--^�Interest:Rate'
�Imatint** l �
CUSIP***
__ 2018*
5100,000 4,1 Q0/6
3686 I.A .A It5
R 3
rt-=1
')020*'
2022°
110.000 4.I 5%
_.
! 115.000_ i 4:.25Vo
368fi.1 A AM l
------....--....
3 961.A.A.P4_
}..__.. R''
3U 1X
_-
125,0{}0 _ 35 4.%
_._
36861A_�IRU --
R-6
_ 2026*
135.000 4.40%
36,961A AI'6
:R-7 1
2028*
— 145,400
* Term. Bond
The Bonds are being called at a. priee pf par plus accrued interest to the -.Redemption Date, onw-hich date -all
interest - n said Bonds will. ceasee to accrue. I-l.oWers of the Bands hereby called for redemption are requested to
present.tlicir .Bonds for payment at the office of Bond Trust Services Corporation, 3060 Centre Pointe Drive, Suite
1 10; Roseville, Minnesota 55113 on or before the Redemption Date.
Payment ol'the.redeniptioit price oe rl-the above Bonds will due and payable on. Redemption mate, upoil
presentation and surrender theieoE. Interest city the. principal 6motint designated to be redeetr M shall cease to
0"MC'011 and after the redemption date. Uhder the Interest and Dividend Compliance Act of 1983. 31% will be
u itltheld if.tax.identification number is trot properly ce.rti.fied.
'fhe issuer shail ndt be respoiisible foj- the selection or Ilse of the CUSIP-Nai.nbers, nor is any representation made
aS tc>.tfte c:0.rrt`CtneSs thereof as indicated in this. redeInli.tion notice: C'I.;iSIP 'N', n .bers are included solely 6hr the
convenience of the holders.
BY ORDER OF Tl i1_ CITY CQUNC:II,_ .UF
GI M LA--g$,'N11 NL;SO'I'A
linportan.t Notice` lit compliahee with flit I"conomic Growth :and 'Tax Relief Reconciliation Act cif 2001. federal .backup
Withholditit; tax will be withheld at the applicable 4acl Lip withholding rate in. effect at the time the payment by itie redeeming
institutions if they are not provided with your social security number or federal employer identification number, properly
certified. "I'his rgquirenretit is .fullille.d by submiuine a % -9 Nnii, Whith may be obtained at a brink or tidier financial
institution.
** 1ndT�attia fullcall rsl'staled maturity.
*** 'Neither the Issuer nor the Fiscal A entlPay4w At,enl shall be respwisible-for the selection-ofor use of.the C:t.1SiP nuinber.
and no representation `is blade as to its correctness indicated' in the Notice or Cal! for Redemption. CI.ISIF? numbers are
included solely roe the ctlnvenience tie the.1161ders.
4.6123.rA-2 iNNI'Ci090-12
ArrACHM UNT B
I
40239v2NINI 0:14.11-12
....................
Jt:ti.s tarn i;ro•
Ihrcct D5,0 j612', 3. 7.020?
i; nlsil; jiipullor! rr'kcm,cds-�v;,rcn , un,
Ma
y 14. '1015
City.o(Oem .Lake, Minnesota
4200 Otter Lake Road
Saint Pad[. MN S5110
Attention: Bill Short, City -Administrator -Clerk
Tom Kelly. Treasurer
R& Proposed issugtice of a conduit revenue financing by the City of Gem take fctr the benefit of St.
Andrew's- V'i i Iav
Dear BiIf, Tom and CouhciI Members,
PSA Housing & Assisted L.ivin . line., a tMitinesota nonprofit ccitpothtioti (the."Borrower"), has requE�ed
that the.Cify- of Gem [;ake. ("Gem Lake") issue its Senior. Housing Revenue Refim�ling Note (St. Andrew's
Village. Project), Series .2015 (the "Gem Lake. Note*), in a principal amount. not to ekceed $10;000,0.00 (or
such lesser amount as may be within Germ Lake'S $10.0000.00 bank qualification limit for2015). In addition
to requesting that. Gem Lake issue the Gem Lake Note, the Borrower has proposed that one or more ether
issuers in .thin Borrower's service area issue revenue obligations in an aggregate principal amount sutlieicrit,
together with the Gem lake Note; to equal:approximately 1.17.000.000 (the " Othor Notes'").
1!'Gem Lake agrees to issue the Gent Lake Note, the BomAver Nv:iII use the proceeds of the Gem lake Note.
Mong with the proceeds of the :Other Notes. to (1) refinance the 1.39-unit senior housing facility, comainilIg 7().
Independent living units, 44 assisted living units; 25 m.emoiy care units. and approximately 10.170 square
lcet of daycare space leased to St. Andrew's. Church located at 240 Gast Avenue, its Malitonied.i. Minnesota.
1ty refunding the outtitandititi City of Malitoinedi. Minnesota Senidtr 110tising Revenue. Refunding.Bonds (St.
Andrew's Village Project.) Series 2005; H) fiend required reserves for the Notes, .if any, and (iii.) pay the costs
of issuing the Notes (collectively, the "Project"). The facilities refinanced with [lie procceds of the Notes evill
be owned and operated by the Borrower.
i )te Gem lake Note is proposed to be privately placed with Klein Bank (the. "Bank"). If the Gem Lake Note
is authorized to be issued by the City -Council it will be. issued as a conduit revenue fond :secured solely by
the revenues derived fr.. a 1. . g . eirnent (the ` L.oan Agreement") to be eXCCL led by Gein Lake• and the
Borrower and.from. tither security provided by the Borrower.. !1 conduit financing works almost exactly life a
bank Ivan for the: Borrower. The Bank provides the funds for the (qan, bcm Lakvwould,
tv. a party to the
documents but then assign its rights and. obligations to the. Bank. No nioncy actually flows through Genf
.Lake; instead, the Bank makes the loan to the`Borrower.ak] 1he.36riower makes loan repayments directly to
the Bank. No money or assets of [.;rent Lake would ever be pledged or available to pay the Gem Lake Note.
4.MQ1tivi ftitt NlAlzs:_7
11le Gent fake Note will not constitute.a.; encral or moral ob.ligtttion of Gem bake and will not be sec.iired: by
or Payable f.roni .any property Or assets of* Ciem bake (other tltarz tire.. interests of Gem Lake in. the Loan
Agreentertt) and twill not be secured. by any .y taxing power of Gem Lake. The G.ern Like Note will not be
subject to any delis limitation imposed -on .Gear Lake and the issuance of the Gem Lake Note will not leave
aiiy adverse impact on the credit rating of Dent Laker even in the event That the Borrower encounters financial
difficullies with respeetto.the facilities to be refinaliccd. with the proceedof the Gent Lake Note:
l'fte (.fern Lake Note, is ptrpa§ed to *lie issued pursuant to MinrtesOta Statutes, .Cliaptet• 442.C._ as trnteIl cl..
(tile "Act"). The. Giant .l..Ake Note is proposed .to be issued as a tax-exempt.obligation; rite. interest on Which is
excluded from gross income for federal income tax purposes. Banks and: :other financial 'institutions gciiel-ally
(10 not.get tile. benefiil ofthe ttrx-e.xcrrtption of municipal bonds,.bui Section 265(b.)(3) cif'tlie Internal Revenue
ocle: of 1986, as amended (the "Code"), permits each issuer .of tux -exempt obligations to designate up to
S.I0,000;0U0 of tax-exempt Uunds as. "qualified tax-exempt obligations" (sometimes referred to as "baak-
qualified bonds") that. are eligible for purchase by brinks and other financial .institutions. In order fo issue
bank-clttalified bonds, the issuer must not expect to issue more. than10,¢ l0.0.000 of bonds (other than private.
activity bonds that are not qualified 104(c:)(3) bonds) in a calendar year. The Borrower has requested. that.
bent Lalw designate the Gem Lake ':Vote as .a qualified tax-exempt obligation for purposes of Suction
265(h)(3) of the Code,
If -Gent Lake Itas no lilans to issue bonds for its oven purposes its 2015, the Gem Lake Now could be issued lit
the antoutit Of' $10.000,000. if Gem Lake, neecls to retain the �abiIity to Jssue bands Liar its Own purposes in
20 I5, the Gent Lake Note.cottid be; issue({ in a smaller princilxtl amount and still meet the Borrower's needs.
Own Lake is currently considering reserving approximately .$1.500,000 .of the 2015 SI0,0f}U,t){)0 bank
qualification limit for its oven purposes. Isstriitg the Gem Lake Note in 2.075 +will leave no impact on Gem
ability to issue bank -qualified bonds in future years.
11'C em Lakes determines to proceed with issuing the Genf Lake I me for the. St. Andrew's project. it will need
to hold a public hearing, adopt a. resolution authorizing the issuance of the Getn Dike Noteand. execute
varteiuS related documents, including. the Gem Lake Note Lind the Loan Agreement, fit case the City Co wieil
decides to move fiirtvord with. this financing, we have provided a t'orrn of resolution calling a 11
hearing which.could lv. adopted at the May ly. 2015 meeting to .schedule a public hearing and final approval lbr the .tune
1 G, 2015 meeting,.
Under the terms of file. Loan Agreement, the Borrower will payall of.Gem Lake' fees and expenses and pay
Gem I. -al e's administrative fec fbr issuing the Gent Lake Note,
Please contact me with any questions you Have prior to fhe C.ottncil meeting.
Sincerely,
le:nny-BdUItoh
4609200 !s!f -MA.355-7
Post -Issuance Debt Compliance Procedures
The City Council of the City bf Gerd Lake; Mh' i.as adopted the attached Post=issuatice.Deht Cotnpliaiicc
Pnlicy.dated _ _ _ I hr Fast -Issuance Uebt.Compliance Policy applies io all tali-exemt,i
dcbt.obfibationsissued by the City. Cq'Getli Lake. As directed by the adoption of the Policv, the City
Treasurer ivill perform -the following:Post=ls§u
fax -exempt debt.obiig9tion; attce Debt Compliance Prnccdures for the folln�vin
—(Title of tax-exempt deb(. obligation)
I. Getieral Post -Issuance C.ornpliance
a: Ensure written procedures and'orguidelines have.been put in place for individuals to Ulm
.when more than one person is .responsible for ensuring compliance with Pest -Issuance
Procedures.
b. Ensure training, andlor educationei resources for post -issuance compliance have been
approved and obtained:
C. The City Treasurer of the City Of Gem. Lake: understands that there are optionsfor
•voluntariiy correcting failures to wrtiply with post-issuancecompliance requirements (.c...
TivitSUry Rvdulat ions 1. f 41-12 remedial .actions, Tax -Exempt Bonds Voluntary Closing
Agreemctit Program and the. ability to.emor into a closing agreement.undi r.tlie "I"ax-Exempt
Bonds Voluntary C:'losin- Agreement Program describer in Notice. '2001-60).
?. General Recordkeepittg
a. Retain records and documents for this tax-exempt debt obligation for a period of:at ]cast. six
years following the final payment of the .obligation of the final payment t�l''any tax-exempt
refunding:debt obligation unless otherwise directed by Bond Counsel.
b. Retain botli paper and elcetron versions of records and documents. for this tax-cx6tnpt debt
obligation.
C.
0eneral Records and Documentation to be Assembled and Retained
is Description of the purpose of the.tax-exempt debt obligation (refcrr;ci to as tine
project) and the state statute autitori.zing the project.
Record of tax—exempt status or revpcatiyn of tat -exempt status
iii Any co.rrespondence.between City of Gem Lake and. the IRS.
iv. Audited financial statements.
v. Bond transcripts, of vial statements and other otTlaring documents of tax-exempt
debt obligations.
-vi; Minutes And resolutions authorizing the issuance of tax-exempt debt obligations.
vii. Celtificat ons-orthe issue price of tax-exetnpl. debt obligations.
viii. Any fQ11nal elections fortax-exempt debt obligations (Le. election to employ an.
accolinting methodology other than the specific (racing method).
N. Appraisals, demand surveys, or feasibilit
exeMpt debt obligations. y studies for property financed by tax -
a. L)oi tiiite)ts related tp goverrtmental grants, associated with..construction, renovations.
or purchase of property financed with tac-exempt debt obli+ggat:ions,
xi. Reports of and. . 01! IRS examinations ol'the City of Getn Lake -or. -the Citi '.s tax-
exempt debt obligations,
3.Arbitrage Yield Restrictions Ahd:Rebate Recordkeeping
a. Investment: and Arbitrage. Documentation to be,Assembled and Retained
i. An accounting of a11. deposits, expenditures, interest incoin.e and assec.iialances
associated with each Fund established in connection will) each tax=extimpt debt
obligations, This includes an accounting ofall monies deposited to the Dcbt Sorvice
Account to snake .debt service payments on the tax-exempt debt obii;ationS:
tegiardltss of the Source dcrivcd. Accounting for expenditure anal assets is desObed
in .further detai I in Section 3b:
ii. Statements prepared by'fillstec or Investment. Provider.
iii. Documentation cif at least quarterly allocations of investments. and investment
earnings to each. tax-exempt -debt obligation [.i.c. uncommingling.analysis).
iv. Documentation for investments. shade with tax-exempt proceeds such as;
1. Investi ion contracts (i.e. guaranteed investment contracts).
2, Credit enhancement transactions (i.e: Hong.. isstiancc contracts),
. Financial derivatives (swaps,: caps, etc).
4..Qiddijl_R of financial products:
a. Investments. acclimed with tax-exempt proceeds are purchased at fair market
vattie.(.i.e..three bids fnr open market.se.curities needed in advance refunding
escrows).
b. Computations of the arbitra ,e l field,
c..Computations of yield restriction arid rebate.arnounts including but not limited-td.
is Compliance in meeting the "Temporary Period from Yield Restriction Exceolioti"
-and liaii+ing the investment of.ftinds atier.the temporary period ox#i res.
ii, Compliance in meeting the"Rebate .E;xception".
I.Qualil'ving for the "Small Issuer Exception".
2..QualifyinL,. fora "Spending.Exception".
• 6 Month.. Spending .Exc pt.ion
• 18 Month Spending t>xception
• 24 Month Spending Lxc.eptioit
3.QualifVhig for the "Rona i•ide'Debt Service. Fund Exceptibn".,
4.Quantifying arbitrage on all funds established in connection with the tax-exempt
debt .obligations in Iieu of satisfyingarbitrage exceptions (including Reserve Funds
and Debt Service funds).
d..(:'onipuiatiotwof yield restriction and rebate payments.
c. Timely ;1`ax Pont) 8038-T fling, if applicable.
i.. Reinit any arbitrage liability associated with this tax-exempt debt obligation to the
IRS at each five year anniversary date: of the obligation; and tlie.date iii whic.li tile
obiigationis not I01l0e1'outstanding (redemption or maturity .date), whir:licver comes
sooner, within GO days ofsaid date.
f. Timely "fax Form 8038-R fflin. il'applicable.
g. Procedures or guidt;lines for monitoHng instances where compliance with applicable yield
restriction requirements depends on subsequent reinvestment of tax-exe.tnpt prkoeds in
lo.weryielding iiivestments (Le, reinvestment: in zero coupon SL.GS).
4, tpendiiure-and Asset bocumentation to be Assembled and kct®ined
a. Documentation of allocations of tax-exempt: proceedsto oxpend.itures (i.e. allocation of.'
proceeds to expenditures for the construction. renovation pupurchase of facilities .owned
and used in the performance o.f esemli.t purposes).
b. Documentation of allocations oFtax-exemptproceeds to issuance costs.
e. Copies ofrequisitions, draw schedules. draw requests, invoices, bills and cancelled checks
related to tax-exempt proceed expenditures during the construction. period.
d.Copies ofall contracts entered into for the. construction, renovation or purchase of facilities•
financed with tax-exempt proceeds.
/ Q. Records isfexllendituresxc.inlhursements incurred prior to issuiitt; bonds for Rwilitics
( financed with tax-exempt proceeds (Declar-aiiorl of ojyj ial intenvRcirTihursi i»cnt
Resolutions including all niociific•atiorts).
f List of al l facilities ruid.ecluiprnent liriancedwith tax-:exernpi procced.s.
g.. Depreciation schedules I'di depreciable properly financed. with tax-e.xerllpt proceeds
It Documentation that tracks the purchase and sale orassets financed with tax...cxcrilpt
proceeds.
i. Dotutnentatloti•oftimely payment ofprinc.ipal.arltl irlterest payments ciii the tax-exempt
debt. obligation.
j. Tracking of all-184ilepAideeds and the transfer Qf proceeds-in!o the &bt service fund as
appropriate.
k. Documentation that excess earnings fronf - a ResCrveTUnd is transferred to tile. Debi Service
rued on an annual basis.. FXcess earnings are balances in a Reserve Futld..that exceed.the.
Reserve Fund requirement.
;, ivl.jscellaneous Documenration to be Assembled and Relained
P. Procedures to ensure. that. the project; %vhile the tax-e.�ernpt debt u.bligation is r�utstandiri�;.,
will avoid. IRS private husiness concerns:
b..Changes in ,the project that impact the terms or cor»nlitinents of the tax-exempt debt
obligation are properly documented and necessary certificates or opinions are oil file.
6; Additional Undertaking and Activities that Support Sectioris i thr(.}ught above
a. The Ci(y'I'reasurerwill n��tify the Cit} of Geni Lake.;[3oilct Cc uiisGl, Financial Advisor and
Arbitrage Provider ofany.survey or inquiry by the iRS immediately upon receipt (Usually
responseevs-require the.revieof the. above.rrteniioncd data and must be in writing,. As much
time as possible is helpful in pleparhig the response ).
b. Tlie City Tr•easorer will consult will) the City ofGdhi Lake Bond Counsel. Financial
Advisor and Arbitrggo Provider before engaging in post-issttattce*credit enhancelent
transactions (i.e. bond insurance, letter of credit,:or-hedging transactions (Le, interest rate
c. The City'1'reasurer will nionitor:rlf -qualified tax-oxempt debt oblig iriorle, within the first
alendar.year to detertnine i:fthe: l'irnit is:exeecded, and )['.exceeded. will address
accordingly. The Hmit is curreutfy 314,OQQ.,4(ft}.
d. Comply with Continuing, Disclosure Requirements.
i. If applicable; the tlrllelV filing of annual in.1bitmation agreed to in the Coalinurng
Disclosure .Certificate.
ii. Give notice Of ally Material [:vent.
e. Identify Any post-issuarice change to terns ofbonds which coufd be tt•eated aa-a Current
refunding.OE"oId" bonds by "ne.w" borids, often referred to as a.- .i .uance'.
f:.Cim firm whether. any "'reatediaf:awon" in connection with a -.change of irse" must be
treated as a "reissuance-.
7. Compliance with Future Rcgttirements
a. Take rneasure.to. comply Willi.aity.fiiture..requirernents issued beyond the date. of these Post -
issuance Debt Compliance Procedures which are essential to. preserying the tax-txerlipt
status of this tax-exempt .debt obigatioh.
! xtract 6. f m inures oi' Meeti►tg.
of the City {.''Ol11161 Ofthe City orf
Clem. Lake, Ram-5cy County, m, innesota
Pursuant to due cai.1 and notioL, thereof, a regular meeting o:f the City C L1116I Of til.c City of Genl
I,akti: Milinesatn, vas dyiy hold in the City I.iall in said City on 'I`uesday= Mai I.'�� 2015, cointrieneing M
i.ob P.M.
The following members wire present:
and the following tNe('e absent:
The Mayor announced that the tteict order of business was consideration of the prgposals wiliclt
had been mceived for the purchase of th-e City's General Obligation Refunding Bonds, Sewies 20-15A. to
he issued in the prigina! aggregate principal aEilouht of S
The City Adminisirafor�Cferk presented a tabuiati.on of the ilroposals which llaci been received in
the: manner specifieci in the Tenns of Proposal- lbr- the Bonds. 'f he proposals. were as suet t'ortl, i.n
LAHI.BIT A attached,
After dole consideration of the propdsgls, fou.nefimember introduced the roll.m.ving
writien FeSOlution,- tlte reading of which WAS disli.ensud with by Unanj",lous consent, and moved its
ad�iption:
4612�5v1 GAV01?190-12
I ES.OL.I)TION NO. 2015 - 07
�l.
A. RESOLUTION AWARDING T11.T SALT OF GENERAL
01I3LTGATION "FUNDING BONDS.. SERIES 2015A, 1-4 THE
ORIGINA.I, AGGREGATE PRENCIPAI, AMOUNT OF S ;
FIXINk'r THEIR FORM AND SPECIFICATIO^S;..D1RFtCTtN(;
THEIR EXECUTION AND DELIVERY; PROVIDING FOR
THEIR PAYMENT; .PROVIDING FOR THE ESCROWING AND
INVESTMENT OF T.H.F PROCEEDS THEREOF; AND
PROVIDING F•OR THE REORVIPTION OF BOINDS REFUNDED
THEREBY
BE IT RESOLVED By the C: it,y t :nuncll of f0 .C-ity .of Gem Lalcc;� Ratnsey C (Y ty, •Mi0 463 W
(the City"') as follows:
S,t%Ci.lOil I .• Fillri i_i1Y;. ti.:�lc c?}� Ir�ntl..
Bac�rourtcl. It is Hereby determined that:
(a) Pursuant to Minnesota 5tmules, Chapter 475, as amended. (the'!Pict"), the Czt�'
issued General Obligation Capital improvement Plan Bonds, Series 20117A (tic "Series 2007A.
Bonds" or the `"Refunded Bonds"), dated June 20, 2007. in the original aggregate principal
amount of ` 950, .00; the Proceeds cat' which were used to alliance certain capital impro�etxtents
y..
under an aj�I rr�vc.cl capita! improvenieni plan (tile "M07 ProjectC.'); and
(b) T11C City is. autiiorired by Minnesota Statutes, Section 475:67, subdivision 1..3. to.
r: issuand. soil 1t:s. general. obligation bonds W retirttd outstanding bonds whgp determined .by. tlae.
City Council t6 be necessary and desirable.
(c) The City Council finds it - iicc:cssar}.? aiid expedient to the sound. financial
nianaaernent of t:l.le- affairs of' the City that the (,ity. issue its General Obligation Refunding Bonds,
Ser.ics ' 015A (tlie "Bonds".), in the original ag,,I-e.gate principal ilmount of S , to refund
in advance of .maturity and at their redemption date the 2017 through 2028 irtaturities Uf the
Refunded Bonds, curmNitly outstanding in the aggregate: la]-inc-pal amount of $745.000, orv.1 ich
'h7.30,000 will be called Ior ricdcnipticnt on 1=.61-uary 1. 7-016.
(d) The City is auttiori ed by, lWnnesOta Sttitutes. Section 47:5;60. ,ubdivi,iorl "(5) to
riegotiate the sale. of the Bonds, since the. Bonds wiII bt:.kAied as.crossc:vu rc:futiding ohligati0rl
referred to. in Minncsot:a Statutes. Section 47.5.67, subdivision 13. 'Plte rcti011s o('tlre (::its staff
and linallcial advisors in negot.iat.itig the sale .of the [3ct.nds are ratified and ccinfrmed 'n all
aspects.
I.U2. Awar. to .the l'urcftasM_and_fnterest Rat . The proppsO• of.
__ (tile "Purchaser") tb purchase the••I�onds of the City is deWt•inined to be a,
reasottahle offer and is accepted; the prupt7stiI being. to purchase rile I3andls price of $
amount. of plus originai issue. pretZiittni Of ti_ iess twderariter's discount of
_ J. plusaccrued interest to elate of delive i3,; if n6y-. fcu• Bonds burring interest as foitows:
4e;QA$p:1 frill' C.iESK 12 2
Year Interest Rat --
_ Year Interest hate
2017
2023
018
2024
2019
2025
020
20?6
2.021
2027
2022
2028
'I rue interest cast: °fa
Purchase Contract. Any original issue premium and. any-.t•ounding amount shall be
credited to the Debt Service. Fund Bern -rafter created or the Escrow Fund hereinafter created, as
determined b) the 'Treasurer irt. cotistittati.on with. the City's municipal advisor: The "Treasurer is directed
to retain the crood.fa.ith check of the Purchaser; pending completion ofthe sale of the Bonds, and to rettim
the goad faith checks of the -unsuccessful proposers. 'The . N.layor and City Administrator -Clerk. are
directed tnexrctite a contract with the Purchaser on behalYofthe City.
I,04. Terms Principal .�t ofTe
_ City will forthwith issue and sell the Bond,
pursuant to the Act; s.peciticaliv Section 475.67; subdivision 13., in the original aggregate principal
amount of $-_ , originally dated. June 17, 201.6* in tile. denomination of r.5,000 each or any integral
multiple thereof; numbered No. R-1, upward, bearing interest as above set forth, and malttring.seriali.y on
February I in the. years and amounts as fullew. :
Year
2017
2018
2019
2(�2U
2021
2022
Amount Year
2023
2024.
7 _S2:
.
2026
2027
2029
Amount
i.OS. Qptional_ Redernplion. The.. City may elect on February, 1, 2024, at em any. day
th ret fter to prepay Bonds duc on or after Febrtrary 1,.2025... Redemption may be in wh:blc. tir in pirtdild*
if in part, at the option of the City :ttnd .in. stick. rnanner.as. the Chit wilI determi�ie.:lf fens than a:11 13taiids of
a maturity are allied for redemption, the City will notify D7'C (as defined in :Section 8 hereo. j of the
particular amount .of such maturity W be. prepaid.. DTO will determine. by lot the alnourtt .of each
participant's interest *in sticli nta.turity to be .redeemed and eaeh participant will then select by cell tile
beneficial c)wne.rtihip inter.ests.iti.such mativity to he redeemed. Prepayments will be at a price -of pat- plus
accrues! interest..
Section 2. gg istration -ZnaytncF�t..
?.U.i, Registered Form. The .Bonds will be issued only in fully registered form. The interest
lhe.reon .and, upon sltrrcnder of each Band; the principal arnotint thereof, *is pavable by chm-k .or draft
is sued by the Registrar described herein.
2..U- DaJ s � ttErest Pa�.n�et7r Dates: [;ash Bond will be .dated as of the last interest payment
date preceding the: date of autlicntication to which interest on the 13otrd has been paid or ►nacic.ttuailabic
IOr payniont, unless fi) the date of authentication is art interest payment date to which interest has bps: ►
40125Sv1 0Af'(t::190-12
paid c)i- tnado available.ror payinetit; .in which case the gono wi II bedated as of the date of authentioatioit,
*0 (ii) the date of'.authenticatibn i;, prior to the first interest payment: {bite; ill which case the Bond will be
dated as of.the date of oViginal issue. Theinteresr on the Bond i is payabIc on Fcbri►ary I and Augasi I o!'
each year_ Com)ttencing Fcbruary 1, 2016. to the registered owncr:s of record as of the close of busineSS att
the -fiftccn th day orthe iininediatelN preccdino nxmtlr, whethe► or n:cit thA day is a btrsiriess iliiy.
2.0, f e_gistration.. The OUN will appoint a boned nN)ristrar. transfer agent. audlentic rtin., agent
and paying agent (.the '`t�cgisrrar')" The eller~f of registration and th& rights and duties of tilt City :rn�i rht
Rgpstrar� .Nv ith respect: thereto are ,t, !'allows'
(a) Register. The Registrar must keep at its princijial eorpoi ate trust office a bond
regi$iQr in which the Registrar provides 'for the :r•egistration Uf ownership of Bonds. and tltr
registration of transfers aid exclianges of Bonds entitled to* be.. 'registered;. transferred or
exchanged..
(b) Frttnsler) Bonds. Upon surrender for tr��nsfer of.a gond duly endorsed by the
registered owner thereof or accompanied by a written instrument of:transfer, in lorrn satisf:iciory
to rile Registrar; dilly executed by the registered. owner thereof Or by an attorney ,duly ircJ
by the registered owner in writing, the; Registrar will authenticate and deliver. in the naittc of tl1c
,designated transferee or transferees, rind or more newBonds of a like aggregate principal aino lnr
an¢ inawrity, as -regirested by the transferor: The Registrar may, however, close. ti►e books lcyr
'registration. of ariy transfer after the liiftee.nth :clay of the month preceding each interest payment
date and t itil that inter est.paynicill date.
(C) Exgharig_e gf*8bnds, When Bonds:are surrendered by the registered o\ ner flor
�xehattge the Registrar wi11 authenticate and deliver one or more new .Oonds of a like og rc,a(kc
.principal amount and maturity as requested by the registered owner or the owner's attornc: ilt
writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly
caneeiicd bv the Registrar ancf tltereaftcr ciisj�ose�i of as directed by the City.
('c) fn7nrciper or_Ugi utljorjzed Tratis�feir. When a Bon is: presented to the Registrar
lair transfer.. the Registrar Wray refuse to transfer the Bond until the Registrar is satisfied that the
endorsement on the Bond or scparatt instrument of tr'ansier is Valid and genuine and .titai the
retltrestcd transfer is legally autlturircd. The Registrar will lnctll Ilh 1j�iblJlty' for tilt` I•efti al, in
good laith. to make transfers Which it, jn its LIdgment, deerns improper -or unauthorized.
(f) Persons Deemed_Owners. The city Ad the Registrar may treat the persc}rt in
whosenatnt: a Sond is registered W the bond register as the absolute owner of the..Bond, 4vhethtKr
the Bond is overdue or not, for the purpose of receiving payment f'. or on account of:the
principal. of and interest on the 0ond and for all other purposes, and phynients so made to -a
registered owner orltpon the. owneCs..ord.er `t'iI I be valid itiid efft;c:tual to sati0j* and disOarge.tlie
Iiab.i.lihl upon the Bond to the extent. Of the sum i�i sums so paid.
6:0 Taxcs: Feed" ancf Gliarpaes. The Registrar inay impose a.. charge upon the oWIM,
thereof for a vansfer or exchange of Bonds suffcient to reirnburse the Registrar for any tax, fee
or other governinental."charge required to bepaid with respect to the transferor exehange..
(h) Nititilat f osfYStc�ien.ar I)estroti d f3u.r�ds. If a. Bond becomes mutilitled.or is
destroyed, stolen or last, the Registrar will deliver a new Boild of dike aniouttt, Mimbe;r; maturity
#,12S5�j1 t;AII f.i I- 190- t 2
f date and tenor in exchangc and: substitution for and upon cancellation. of the mutilated Bond or is
[. lieu. of and. in substitution for any f30nd clestl-oyed, stolen or lust, upon the pit
ymenE of tire.
reasonable expenses and charges of the 17egistrar in ccitlliectiott therctiV ith: rutci, in the case of n
riond destroved, stolen or lust, upoir filing With tide Registrar of evidence satisfactory to it tltitt the
Bond was destroyed, stolen or lost, and of the owners.111p thereof anti upon furnishing to €he.
Regi.Strar an Appropriate bondor indenmily in form, substance dndamount satisfactory to it -and
as provided by law, in which both the City and. the RegiStrar•lr3Lltit be named as obl'igfJes. Iiolids
5o surrendered to .ih - Registrar will be eanc6led by the Regiso-ar and evidence. of such
canccjlatiart rtfusl be given to the City. If the mutilated, destroyed, stolen or lost Bond 17as
already matured or been called. for redemption ill accordance with its terms it is not geee:Ssary try
issue a, iieiv Bond prior to payment..
(i) Redemption. In tile: event any oI- the .Bonds are.. called for redenilition, notice
thereof identifying the l3onds to be redeemed will he given by the Registrar by mailing a cqw of
.the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond
to be. redeemed at the address shoNI-+n tin the registration books kept .by the Registrar and by
publishing the notice if required by lava. Failure to give notice by ptrbliChtirin or by mail to arly
registered owlier, or any defect therein, will not affect the validity of any proceeding for the
redemption of Bonds. Bonds. so called for redemption will cease to bear interest :after the
specified redemption date, provided that the funds for the redernpttiion are *an deposit with the
Place Of payment at that tine.
2.04. Aupointnlept of Initial Registrar. The City appoints tl.S. Iqank National .Association, St;
Paul., -Minnesota. as the lriitial Registrar. TIie Mayor and the City Administrator -Clerk are atithoril.ed to
execale alul deliver, on behalf of the City, a contract with the Registrar. Upon Itterger or consolidation. of
the Reg-istrar with another corporation, .if thi: resultiltg Corporation is a bank- or trust company authorized
1 r+ by law 10 Coliduct such .business,. the resLlltl11u, L orl)(]raLion is allthori'zed to aci .as successor Registrar. The.
City agreesto pay the. reasonable and customary cltarges .of tfte Registrar 'for the services performed. The
City reserves the right to remove the Registrar upon 3U days' notice arid. upon the appointment of
successor Registrar; in which event the predecessor Registrar must deliver all cash and Bonds in its
Possession to -the sticcessor.Regis.trar and mum .deliver the bond register to the successor Registrar. t)!t or
before each principal or interest due date, without Furiher .order of this Council, the City Administrator -
Clerk must transmit to the Registrar moneys sufficient for the Payment. of all principal and interest then
due.
2.05. l ectition. ,-athel-IC aticin ttiid L)tyerv. The Bonds wth be prepared tinder the directit>n
Of the City Administrator --Clerk and executed on behalf of the City by the signatures of the Mayor and the
City Administrator -Clerk; provided that those signatures may be pr.inted,engraved or lithograplicd
facsilAiies of.the originals: Man of-l'icer whose sibnattire -.or-a facsimile of whose signature.appciar:s on the
Bonds ceases to be such officer b :gore the delivery of a Bond, that sigrjature:or facsiln.He wifl nevertheless
be valid and sufficient for all purposes, the saute as if the officer hadremained in offlice until deliverv.
Notwithstanding such e.xecution,. a Bond will not be valid or obligatory for any purpose or entitled to:arly
se uritti' or benefitantler this resolution unless And rm it a ccitificate of authentication on the Bond has
been dcil.v. executed .bv the manual signature of an authorized representative of the Registrar, Certificates
of autilenric.ation on .diflcrem Bonds need* not be signed by the sartte representative. The executed
certificate of.authentication .on a .Bond is conclusive.evidence that it has been authenticated and delivered
fir &r this. resolution. When. the Bonds have been so prepared, executed and .authenticated; the City
Administrator-Clett will :deliver .the sahle to tite Purchaser upon. pa}micnt of the purchase price in
accordance with -the dontract of sate heretofore.made.and executed, and the Purchasci. is not obligalod to
see to the applicaticin of the purchase price..
»b.tZ<MBell"Gt 190-12
1:06. T;eiiiinnrar}. Bonds, The C'it.Y "MY elect tO deliver in liel.t of printed definitive Bowls one
or mc)re h.j)C"ti'ittcn tcmporary Bonds ill strl)staittiall . the form set forth in EXI-1il3l1f 13 aflaclied ltcreti,.
with such changes as may be neccssrit•y to reflect more than one maturity in a single tenlpurary.bondl:
I1pdm the execution and delivery of definitive Bonds the teriporary Bonds will be exthangcd thcrcror anei
t'ittlC.�l.lid.
Section 3. Form elf .13ond.
3.0 i . C:s�ecutit�n oi' t to :13onc) : The Bonds will be' printed oe typeyvritien in substantially .the
fem-in attached Hereto as GXI-11.BIT 13.
3.0'. A.ppr6yin9l_t' Qai _QPh iorl. 7'lie City Administrator -Clerk is: authorized and directed to
obtain a coy of the proposed zipproving legal opinion of Kennedy & *Graten, Cliartered, Niirtlleapdili:s.
lkhrincsota. which i4 to b complete e cept:.as to dating thereof and cause (lie apirrion to be prittiteif oll (w
accoinpany each Bond..
Section 4. f3onc�s;_'t cttrits•:. Covenants: l :scr(
4:01. Ili bi..5orvicc Fund. .For'the rotivenicne:d and pro per administratign of the ijn)jjcvc ti7 be
horcowe:d and repaid oil the Bands, and to pro"iele adequate and sj)eci.f�ic security for the Purcirtscr alld
hold.us from tine; to tirrle of the Bon&- ureic is licrebv created a special fuiid to lie designated the Ciencral
Obligation Refunding Bonds,. Seric� 201.5A Delft Service Fund (the "Debt .Service Fund") 10. be
itdil.iiilistered and :tluaintained .by the City Treasurer as a.booLkeeping account separate and apart from all
ether ftind s rnainlained in the official financial records of the City. The Debt Service fund will. •be,
maintained in the. manner herein spec:ilied until all of. the. Refunded bonds have: been paid and until all of
the.Bonds and the interest thereon have been fully paid.
To the Debt Service Fund, there is hereby pledged and irrevocably irpl3copriated and (here will be
credfiitecl., (.i) any balance remitted to the ..C:'ity uponthe termination o.f' the Escrow Agreement (as hri-eitt
delinpd); (6) taxes hereafter levied for the payment of the Bonds and interest thereon, (iii} after
Februa*- F. 2016 (the `•!redemption Date"). ad valortnn taxes collected for the payment r►t'the Refunded
Bonds afier the. Redepiption One pursuant to. lievies. Iilade in the resolution atatiori ing the sale and
issUance. of the E eftinded Bonds (the "Prior Resolution"), Which. levies will not be cancelled except as
pernlitte.d by Section 475.6:1., subdivision 3.of the Act: (iv) all investment earnings can funds in the Debt
Service 1: tol(t and (v) any and all other moneys which are I]rnpci'I)' available and alaliicrpriatt;d by the City
Council to the Debt.Service fund. The Wiloutit of any sdit'plus. remaining ill the Debt Service .Fund when
the Bonds and. i)imrest thereon are paid Will be used as provided in. Section 4.75.61, subdivision <I of tile
Act. The debt service fund hereiotdre established . for the Refunded Bonds pursuant to the..l'ricar
Resolution ,hall be terniiitate:d after the lteki 1pton Date,. and all monies thereirl are hereby transferred it)
the Debi Service Fund. herein created.
4-02. I?scra�v_F citld: Proceeds of the Bonds In the amount.01'.$ _ will he dcposited*•in,
te flu a separaid (the "Refirnded Bands # scrow Fund") maintained.by 1.1..S.Bank. National Associat.itin;.Sf.
p.aul_ Minnesota, acting as escrow agent (the "Refunded Bon(is Escrow Agent"). Such funds. will be
received:by file Refunded Bonds Escrow Agent and applied to fluid the Refunded. flonds Escrow fund,
and are. hereby irrevocably p:iedged and appropriated to the Rt?rurlded Bonds Escrow fund. Tile Refunded
Bonds Fscru\v Fund will be held in. a non-interest-bearin�ty cash account, the am0utit deposited therein
beirtg sufficient to (i) pay whendue the interest to accrue; on the:Bonds. to and iiicluding the RedenipHon
O,ite: anal f ii;l flay on the .Redemp.tion Date the -principal amount of fhe. Refunded. Bonds then. out:standina.
The Refunded Fiords 1"Iscrow Funds will be irrevocably- alspropriatedf to the pay rn( it: of'thc principal of, the
Refunded Bonds Until tine procceds of the Bonds therein are applied. to prepayment of the lzefunklcd
t!�E?;jtil G:U� d�1:19U-t3
6
Bonds. The moneys in the Refunded Bonds Fserow Fund will:be used solely for tale purposes herein set
forlb and for no other purpose, except that any surplus in the Refunded. Band's Escrow fund may be
remitted to the City: all in accordance with till Meniot•lndum of Instruction by and between the CitY.niul
the Refunded Bonds Cscrow Agent..
4..03.. Prior Debt Service Fund. rite: Debt Service fund hcreto%M ef6ated for the Refundcd
I#onds pursuant to ttic Prior Resolution shall be terminated .on the Redet-6ption Date, fbl.lowitigthe
kcde,110tiari of the Refunded. Bonds :and all ntalicy s .therein shall hereby be transferred to the Refunded
Bonds 17seraw-Account,
4.04. Pledge of IjiLx C:v-, 'io -provide moneys 601. Payment of tile principal and interest oil Lilo
Bonds inaturing after the Redemption Date. there is hereby levied a direct annual irrepealable ad valorem
t!ix L1I?0rl all of the taxable 11r0pe1ty in the City Which will be spread upc+n tIte.ta.Y rolls and collected with
d ii1 part of other general taxes of the City; The Taxcs will be credited W—The Debt .Service Fund above
provided and.vvill be in the years and amounts as set.forth pit Exhibit C.
The tax levies are such that if collected in fled they, together with estimated collections of
investment earnings (and until the Redemption Hate, all amounts in the Escrow Fund), ad valorem. taxes
And other revenues herein pledged :for the< payment of the Bonds, will produce at. least rive percent in
excess of the amount needed to street when clue the prineipaI and interest payments qn file Bonds. The fay
levies will be: irrcpealdble so tong as ariy of the Bonds are outsta.nding.and unpaid, .provided that the: City
reserves the right to reduce the levies in the manner and to the extent perrtaittc d by Section 475.61,
subefivkioil cif the Act
4.03, Caiicelfatioii _of Prior Rcdqu Jg ion ate. Following Ute payment in full orall
oittsti nding principal of and interest on the Refunds d Bonds oil the Redemption Date, the {'sty
Adaiinistrator-Cleric is:.hereby_directed to earthy sucli fact to and request the County Auditor of Ramsey
County, Minnesota to cancel anytiri.d all tag: tevics for taxes. made by the.Prior Resoltrt:ioir.
4.06. General 4bliltioti P_ P_ le fie. 17nr.1he prompt and fall payment of the principal and interest
can the Bonds, as the same. respectively become due,..the full faith, credit and taxing. powers of tile. City
will be and.are hereby irrevocably pledged. If the balance in the Escrow Fund or Debt Service !'tutcf is.
ever intitif'f.`r.ciem to pay all principal and interest then due oil the Bonds and any other bonds payable
111erc.frain, the .deficiency Will .be prompti-y paid out of nionies ill the general tiincl a!'tlie City wltictr are
available. for.such purpose, and Snell general land may be reimbtirsed with or without int:creSt. i1•0111 the
Escrow Fund or Debt:Service Fiindwhcn a. sufficient balance k available: therein.
1::07: Certi:ficatc_.,o'�C;c�ilt�v Auditor as t.o tistF�itiaii. The City Aclniittistrator=Clerf: is.
authorized and. -directed to file a certified copy: of'tliis resolution with the CountyAtiditor and to obtain file
certif ea.te required by Section 475.;63 of the Act.
Section 7_ :Refundir�:t: fticiit s: Reclem�li�ttt�of.ttel'gridtxl B.ottd4.
.{.)!. 1'.ur e _c�t'_1Zef IdJJte. The. Rcfttnded `I3c)nds consist of fate:OWS :Series 2f1(}?A' Bonds.
The 2017 through 202E maturities of the Series 20D7A Bonds wHl be called: for redemption on I'ebruai.y
1. 2616, in the principal amount of $7SO,ol?U. It is hereby .found and determined that lei Fe tipt�n
information presently available broil the City's municipal advisor, the. issuance of rite Bonds,.a portion of
which will be.us.ed to:redeem and prepay the Refund d .Bonds, is consistent with covenants inade with tine
.holders of the Refunded Bonds.
461:25ivl C7,1f.ci.l t.�!(t•12
S.(12', Filldlliy.s. It. 1s hereby found and determined that based upon inforinatinn pre,entl5 '
Available fi-om the City`s municipal advisors, the issuance of the Bonds %will result itra re(luctioii Of de.bt
service cost to the City on the Refunded Bonds, such that the present valise of sttch delft service or interest
-cost savings. (the "Redaction") is at least 3.00% :oi' the debt service oil the Refunded Bonds. The
Redaction. after the inclusion �of all authorized expenses of refunding ill tile. computation of the effective
inrerest rate on the: Bonds, is adequate to authorize dic issi ,111 e of the. f3olids as prop icleci [ay 'Section'
475.6.7. subdivisions 12 and I.I. of the Act,
5A3. Proceeds Pledged to the Bsc�gvr+ Fund. As ofthe.date of delivery of and payment For the
Bonds, proceeds of the 136rids are! hereby pledged and appropriated and %viII be deposited iri the Escrow -
Fund its follows: (f) $,—_ for the purpllse of paying interest on the Bonds to and including February L.
1016, and. (ii) $ _ for th-a purpose of redeeming on the Redemption Date the principal amount ofthe
Series 20.07A Bonds maturing after the Redemption Date.
5.04, 5ecilt iiigs to Fund _t;s�ro�� _ F�uticf. Securities purdhased, if any, from the mdiieYs in the
Escrow "Fund. will be. limited..to securities sliec.ifie(I ill Section 47-5:67. subdivision 8 of.the A.ct. Elilets k
Assor;itates, lnc,, and/dr. U.S. Brink National Association, as agent for the City, is hereby at and.
directed. to purchase for and on behalf of the City and in its name., appropriate .securities to fond the
Escrow Fund. Upon the issuance and delivery of the Bond,,. the.securities So purchri;secs will be deposited
with the ft.scrow Agent and held purstiant to the terms o€' the.. Memorandum of Instruction (as. defined
herein) ants this resofuti(m.
s.D 7. Notice of Cal i for ltecientRtioti. The IZeEitndcd 13011is trttutn frig oti Febrttaty 1, 2017. andthereafter will be redeemed and prepaid .o.n the Redemption Date in accordance with its terms and in
accordance %with the terms and conditions set: forth in tile. foi-rn of Ncitice of Call for Redemption attached
hereto as EXHIBIT D, which terms and conditions are hereby approved and incorporated by r(fel ence,
The registrar foie the Refunded Bonds is authoriz,ed,and.direcfed: to send a copy of the �-Not.ice of Call for
Redemption to the registered holder of the .Refunded Bonds.
5.W Memorandut>7 of"Tn ruction.. On or prior to the .defi.kvey of'the Bonds., the Mavor and the
City Clerk are hereby authorized .and directed to .execute on .behalf of the City a Memorandum of
Understanding with the Escrow A -gent in substantially the lortti now on file Avith. the Cite Clerk. All.
4ssential terms and conditions of tilt Memorandutn.of .Understanding including paynient of' reasonable
charges for the services 01'.the Escrow ,Agent, are. hereby approved and adopted and blade part of this
Resolution.
Section .6. Authenticati.oil of"franscri.l?t.
G 01, City E!I( ceedjnos. and Records. The officers I'the City are: authorized and directed tcf
prepare and rurni:sh to the Purchaser and to the attorticvs approtiing the! .Bonds, c.c rti€i.eci. copies of
rc���eiElli 5..3I1.d.I'CCQ)'dS N the.Citj rolating to.the Bonds and to the Financial colldition alld.afWri ofthe:
('Itv. anal such other Urfiiicates, affidavits and transcripts. as may be required to sllc�w the facts.,ithin"
their kw%Vleclge or as shown by the books. .and records in their custody.alld ultdC)- their control, relating to
the validity and marketability of the Bonds, and such instruments, including..any heretofore Furnished.
ma) be deemed representations of the City as to the facts stated therein.
6.02: Certificatigr� _as la fAciai Statement, The Mayor and City Administrator Cic-l-kt are
hetehy .aut.horired. and directed to. certify that they have examined the Official Sttttenient prepared and
circulated in connection with the issuance and sale of the f3onds and that to the bi st.of their knowleda
and belief the Official Statement is a coinplete and acourate rePrgsentAtion of tile facts.artd representations
made::themin as of the dace of the Official Statement.
46125,5<I GA GFt93.12 .9
6..03. otiier_ce.rlific tcs., 'rho mayor-. City.Adnlinish•ator.C.lerk,,and City'T--caAirerare hereby
<tutilct!-ir,,ed arl'd directed to f ll-Ilisll to the Purchaser at fife closing such cerfifleates as .tire regtiircd as a
CUillfEllUEI 4?f sale, t;nie s }iti.gatio I shall have .been com.mcnced and be pending Cjtiostioning the. Bonds -or
the organization of tile City or incumbenev of its officers., at the .closing the Mayvr, City Administrator
Clerk, and. City Treasurer sha.11 also execute and deliver to the Purchaser a suitable certificate as to
absence cif' material liEigation. and the City. Treasurer shall also exect.ite and deliver a certificate as'To
puynient 1*or*and delivery of the Bonds.
6.04, Pavrtrent of Costs�ofiwlssuan�c: C bsts*of issuance of thg Bonds will be paid icy the I?ser(%
Agent purspant to the Memorandum of Instruction.
Section Tax C'cwcnapLS.
?.Ol . ax-i; tempt Boiid1. The.City covenants -and agrees with :the holdcr:s from tinge to time of
.tile Bonds that it will nottake or permit to.:)e taken by any of its officers, employees or agents any action
which would cause the inteNst. on the. Bonds to become sabject to taxatioif under the Internal Revenue
Code of 1.986, as amended (the"Cocie"), and the Teasury Regulations promulgated thereunder, in.eltect
at the tirrre of Buell actions, and that it will take ar cause its officers, .employees or agents to take, all
affirmative. action within its power that maybe necessary to ensure that .such inEerest will not beceinlc
subiect. to taxation under the Code and applicable Treasury Regulatians, as. presently existing or :as
hereafter. amended and made applicable to file Bonds.
7.02. No Ite • to Required.
(a) The City will Comply- Willi requirements necessary. • tinc]er the C'ixle to establish and
maintain the exclusion frnlrt gross iticoiile of the interest can the Bonds under Section 103 of the
Corte, including without limitation requirements relating to temporary periods forinvestments,
limitations on amounts invested at a. yield greater than the vield on thco Bonds, and the rebate of
excess investment eamings to the t.lilited States, if the Bonds (together with other obligations
reasonably expected to be issued in calendar year 2015) exceed the small -issuer exception arnotint ell'
$5,000.000.
(b) Fut.ourposes of qualifying. ibr the small issuer exception to the fecferai arbitrage
rebate re�juirements: the City hereby finds, determines and dot aces that the aggregateface Amotint of
all tax-exempt bonds. (other than. private activity bonds) .issued by the City (and all sclbord.ina(e
entities of the City) during the calendar year .in which the .Bonds are issued and. outstanding .at eerie
time is not reasonably expected to exceed S5,000,000,all within the nicaiiing, of Section 1=is(0(q)(p)
of the Code. J. urtherinore.
(i) each of the Bonds was issued as pail of an issue. which was treated as
Illecting Elie rebate requirements .by reason of tile. exception for governillerital tinits issuing
$5,00 .000 or less of bonds:
{ i.) the; average maturity. of the Bonds dues riot exceed the rema 111 g average
.mat-mity of the Refunded Bonds: and
{ifi) no maturity of the .86nds has a maturity elate which is later than .the. date
which is 30. years after the date tile: Refunded Bonds. were issued.
4612i.Svi C11.P'Gtt90-1i 9
7.03. dot l'riN,ate.rl ivityIL, s.: 'rlTe City further covenants not to use the proceeds of the
1:3onnt.s.or to cause. or petin it them o r any of thern to be used, ill such a manner as to cause the: Bond,; ) bt
" jirivatc activity bonds'- within .the ineanitnb crf Sections 1.01 and. 141 through 1')0 of rile Code.
7.04, fZualiiicd "f ax Exempt_.C)bli �a iq�s. In order t:o qualilz the Btmds as `'qual.ifieci tax
-
a within rile meaning .of Section 265(b)(3) .of the Coify, the City make. the following
f=tlal statetnents and representations:
(a) the -Bonds are not '`pxivato:activity.boti6"*as defined in Section 14*1 ofthe Code-.,
(b) the City he:reb.v dcsiknates the [land,, as "qualified -tax-e.<empts obligaticoris" for'
purposes of Section?65(h)(3) of the Cade.;
(c) the rea.soriably anticipated arilount of-tiik-exetolpt. obligations (other than private.
activity bonds which. are. not. qualified 501{c)(3) bands) which will be issued by theiiy (and all
6ubordihntc entities of the City) during caiet)dar year 2015 miill not exceed $10;000,000; and
(d) not more than t 10,0.00,000 ofobligations issued by the City during calendar year
201 s have* been designated for purposes of Section 265(b)(3) of tlne. Code.
7.05. Prot edural RecJgL ;penis. The City will use its best efforts to rornply cvifh any f'ederal
procedural requirements which spay apply in order to effectritite the designations trade. bV this se ction.
Serrtit)tr S: Bml_f-.ntrv__ System; >.imted_Ul�littio+3 of airy:;
8.01: Tlne__nepositorv�"t_fttst 'd an f. The Bonds will be. filithilly issued .ill the form of .a
separate .single .typewritten or printed fully registered Bond for each Of the tnaturiticS lin forth in
Section .1.04 hereof Upon initial isstiance, the ownership of each such Bond will be registered. in the
re�*istration. books kept by the Registrar in the (name of C:ed : &` Co., as non(inee. for The Depository Trust
Company, i\cw York, 'New York, and its successors and assigns ("DTC'`). Except as provide d in this
section, all o-f the outstanding [fonds. will br registered in rile registraticin:.books kept by the Registrar in
the naive of ('ede & Cq , as nont.inec: cif l)TC.
8.U3. Pal.ticio-Ifts. With respect to Bonds. reglstcied in the registration books kept by the
Registrar in the name of Cede &. Co., as nominee cif DIV, the City. tiie Registrar and the Payincy Agent
will .have no res.potlsibili.ty or.ol)1ibation. to any broker dealers, banks and Tither financial institutions. frcarnl
time to linie lot- which D-TC holds. Bonds as securities depository (the "Participants`') or to any other
person on behalf' of which a Participant holds an interest ill (he.. Bonds. including but. not limited to any
resporrs.iWlity or o.bIigation with respect to (i) die accuracy- of the records of DTC..C,ede & Co. or any
Participant with re -specs to any .os� nership interest in the fit uds.. (ii) the delivery to any Participant or any
ether person (other than a registered owner of Bon&, as shown !�y the registration brooks kupi ley t.il:e
Registrar). of any notice with respect .to the Borlds, ineluding; ally notice of redemption. (�r (iii) the
pityrnent' to any Participant or any other' person, other (hall a registered owner tot` f3oirds. of an anraunf
with respect to principal of, premium_ it any, or interest on the Bonds. 'Cite City.. the Registrar and. the
Paying Agent may treat and consider the person in Nvhose name each Bond is registered i:n the registration
I�o.oks kept hy:the Re(,istrar.as tilt: holder and absolute. owner of tick Rood for the purpose of payment of
princip.il. premium and interest with respect to such Bondfor the purpose of registering transfers with
respect to uch Bonds, and for all other purposes. The Paying Agent wil.1 pay all principal (if. premium, if
an%. and interest on the Bonds only to or on the order of the respective reg�istem-d owners. as shown in the,
registration books kept by lilt: Registrar. mild all such paytnents �vi.Il be. valid and effectual to frilly satisfy
ai{il ili�chrirgc the CitS 's obligations with respect to payment of principal of,, premitrill. it anv. or interest
I,.,JIii%� i,.'.f , !,4o')? 10
oil the Bonds. to the extent of the sutra or sums so paid. No person other rhan a registered o%Vner of Bonds,
ik5 sltMn in the registration books kept ley the legistrar. will receive a certificated Bond evidencing t}>e
o.biict�rtictn of this resoluti011e Upon delivery by D.-I-C to the City Administrator -Clerk of a. written notice
ut the eff'eet that 1)TC." has determined to substitute a new nominee in pla4ta Q!' Cede 8c Co., the words
Cu." will refer to such new nominee of UTC,-. and upon receipt of such ii notice, tite City
Administrator -Clerk will promptly deliver a copal of the same to the Registrar and Paving Agent:
�.03.. [Zef�resei�tzaEic?tI 1. ,etter. '!'Ite.City has.ltetctofore.. e:iecttted and delivered to DTC a 81miket
Is,ucr Lcttrr of Representations {[lie -RepresentatiaEi t.ctter") which shall govern payment of principal of';
premium, if dily, and interest aii the Bonds and notices with respect to the Bonds.. Any Paying Agent:or
Registrar subsequently appointed by the City with: respect to the Bonds will agree :to take all aetioit
ne cssary for all representations ol`tile Cali►�in-the RepreseEtttttion Lcttcr.with res.pect to the Regiwtir-and
Paying Agent, re:spectivciy, to be complied with at till times:
$.04. I'i_al_tsfers,_Q is ic�IioQf�=Entry System. in the event the City, by resoluiioot elf the City
Council. detern-fines that it is `in the best interests of cite persons having beneficiaf interests in this Bonds
that they be able to obtain Bond certkfieates, the City will notify DTC, -where.UpUn UTC will notitj the
Participants, of the availability tliriiugh I)TC: of Bond cccl'ificates. In sutch event the City v-ill issue,
tralsfier and. exchange Bo!id certificates as re(luesteci by DTC a►i.if ally Other registered tered i?wttcrs in
accordaftce µ-ith the provisions of this Resolution. DTC .inay determine to discontinue p3•ovidirio .its
services with respect* to. tile Bonds at any time by giving notice to the OIN and discharging its
responsibiiitics with respect thereto under applicable law; lEt such event if no succe_ssar seeprilicA
depository is appointed, the City wii:l issue and the. Registrar Will authenticate Bond certificates ih
accordance With this resolut'im and the provisions hereof will uply'to the transfer, exchange. and metlt6d
of payment thereof..
S-05. Pavtnents to Cede._& Co. Notw ithstandirig•any other provision of this Resolution to tile'
contrary. se long as a Bond i:s registered in the saute of Cede & Co., as nomihec..o.f IaTC. p yrilents with
respect: to principal of; premium, if any, and interest .on the Bond allO noticeswith respect fo the Bond will
be made and given, respectively in the manner provided in.DTf" s Operational Arrangement i as set fia:tlt
in the Represtrtttition .Utter.
Section 94 (.oniimcl0 nisclos,iii�c.:
9.01. No ,I2egi-6rement ot- ontinuing Disilosur . P4rlicipating underwriters tired not comltk
with the continuin- disclosure requirements: f Rule 150-12 promulgated .by the Securities and f .xchiirlge
Commission under the Securities F .change Act of 1934 (the "Rule"), because tale offering is in a
principal amount less than $1,000,.60:0. Consequently, the City will iioi enter into any undcrtrti;ing tea
provide continuing dise.lostrre of ally kirtd with respect to the Bonds.
Section 10, C)efm agq.- When all Bonds and .all interest thereon have been. discharged ss
provided in .this section, all pledges. covenants and other. rights granted by this resoludoll to the holders. of
the Borids will cease; exeept.that. the pledge,of4he full faith and credit oftlte City .Rx the. prompt an(f frill.
paynle.nt of the principal of and intemtt on the 73unds will retttairt in frill force and effect. The City rtiav
.0ischarge all Bonds which are. dud on any (late by depositing with the Re istrar can (it* before that date a
sutTt .sufficient for the payment therco.f in full. If any .Bond :should not be paid when dtte, it [Ua
nevertheless be discharged.by dcpositing with the Registrar a sum sufficient fir the paynwnt thereof in
frill with interest. Accrued to.the date of such deposit.
46125:Svt -GAV GE 190• 12 i l
Ale 1110tit11 1:or the -aOopt(gn. of the *lQregoing resoitaion was duly seOhded Uy Cgumilmember
andupon vote laeilze talkcn tliereQn, the fol.lowing voted in favor thoneof
And the tollrnving voted agttirtct the: same.:
Whereupon said resolution was declared duly passed. and adopted.
EXHIBIT A
PRQPOSAI,S.
461,1550 ciAr or. i om a A,
EXHIBIT B.
FORM OF BOND
Nc>. R .. UN I t l 1) S1 -A-1 kS OF AMERIC.'A S
STATE. O N- 4FN-1vLS(.)l',A
COUNTY OF itAMSF'y
Cl.IY OF -GEM LAKE
GENF-RAI. OBLIGATI 0N REFUNDING. BOND'
SERIES 7015A
Date of
Rate m tur' CLrioii141lssue CUSIP
Anust 1, 20 June I7, 2075
Registered Owner: Cede-&:Cci:
Tlie' City of Gem hake, Minnesota, a duly organized and existing municipal corporation in-
Ra11Minnesota (the "City"), acknowledges itself to. be .indebted .and (ttr valtie. -tdceived
primlises V .pay to the Registered Owner specified above or registered assigns, the p1 stnil of
_till tale -maturity date specified above, with interest: thereon frilin the date hereof at lilt?.
annual rate specified lb.ov.e, payable February 1 and August 1 in each year, collimefiCilia
February 1. 2016, to the. person in* whose name this Bond is registered at the el se of business. on tlle-
liffeenth day (whether or not a business clay) of the ininiediate',.ly% preceding illt)1it1]. The interest hereon
anti. upon presentation .and surrender hereof the principal hereof are payable in Iawflrl .nione.v of the
United Statcs ql' America by c:llecK or draft by t).S. Bank National !Association, St...Paul,.iiMinnesota, as
ReoiStrar... Paying Agent, Transfer .Agent.and Authenticating Agent,. or its designated StieCUSSOI` U11del' tilt'
Resolution &scribed herein. For the prompt an.d full lrlytnerlt Ofsucll principal and interest as the; saute
respectively bccotiie due, the full faith and r�dit anal tatiin�.I.lo�vers of the City Have been and are.herel)
irrevocsllfly Pledged.
'111k-� City may elect oii Febrw ry I, 2014, and on any day thereafter te7 prepay Bonds. due on or
after 1=ebruary f, 22025. Redemption maybe in whole or in partand if in part, at the option of the City -god
iri .ugh inanner as the City will detcrnlind, If less than .all Bonds of a maturity are called for redenlptioll,
the Cit;: will lrolifv "1 h6 Depository 'I`ru;t C:ompany.("UTC") of. the particular amount (1..t such lllaturih' td
he.p.repaid. DTC will determine by lot the am.tltillt cif each p81-ticiPiT." 's interest in si.tch maturity to tic
redecined and each participant NviII them select. by lot the beneficial Ownership interests in such maturity to
be redeemed: Prepayments wiII be at.a price of pair 0.1us accrtied interest.
This Bond. is:0ne of an issue in the aggregate principal anlouuL pf $__ all cif like nriginai
issue date and tenor: ekeej)t its to number, amount. rnaturlty date. interest rate, and i'edeniption privilege,
'all issued pt.trsuant. to it. resoltllion adopted by (lie .City. Collrtcil on Mai- 1` 1 2015 (tire "Resalutioli'`.j, for
the; purpose of providirig.mone}, to refund in advance of maturity Redemplipn pare (February 1... 21)16j, all
as tleiined in (lie Resolution,a portion of certain general obligation bonds of the City, pursuant tci and in
11111 conforinity with the the Consliliition and laws of the State .of Minnesota; including: 1vlinrle ota
Statutes. Chapter 475, as amended, speci# icaf iy Sectiol1.475.67 .stibdivisicili l A portion .of the interest.
4Glz:�.l Ct�1FC;til�.tx }3_ l
hereon is payable until the Redemptions Date primarily out of an escrow tofu! held hy an escrow atycrtt,
~ Tlieieafter,the principal hereof and the intere.st.hereon are payable from. --ad valorem taxes, as set Forth in
the itesolut.ion to �v.h.iell referenccAs inane for a full statement of ri«tits and thereby conferEcd.
The full IHitb quid QlVdlt ul' the City are irre.vrrcably pledged for- paycncEtt of this Bond and the: City
Council has obligated itself to levy additional. ad v�alc�rent. taxes oil all taxable plc Jierty in .tlie City ill the'
-ovent of any deficiency in taxes pledged, which. taxes may be levied without limitation as to :rate or
antourit. The Bonds of this :scries are .issued ortly as fully1. registered Bonds in denominati�ns.of �' 00 or
rtny intetral.mtrltiltle thereof Of single maturities.
-l'he City Council has designated the. issue of.Bonds of which this Bored forms a Part as "qualffied
tax-exempt obligations" within the meaning.of Section 265(b)(3) of the Internal. Revenue Code of 1986,
as arxtendecl (the `Code'") ael7tin to disallc,wai1cc.6F' interest expense for iinaneittl institutions ancl`within
the $ 10 million limit allowed by the Cdde l r the cai�aldat year of issue.
As provided in the Resolu66n and sub cc( to certain limitations set ' -th therein, tI is
Bond. is transferable upon the books cif the. City: at. tile principal off ice .pf the Registrar.,. by the re-i toed
0tivner; hereof -ill person 6r by the owner's attorney dui-' authorized in tariting upon surrender he reef
tog filter *ith 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 i xchattge for Bonds of other authorized
denominatie}ns, Upon such transfer Or ctshartge the. City will cause anew Bond or 801tds to be issued in
the nante of the transferee or registered. owner, of the same aggregate principal Amount, bearing.. interest at
the same rate and mattiring on the same date, subject to reimbursement for ally tax, fee or governor ntai
c.liarge required to be paid with respect .to such*transfer or exchattge.
the City and the Registrar may deem and treat the poson in whose name this'i3«nci is re tistered
as the absolute owner hereof; whether this: Bond is overdue .or not; for the purpose of receiving payment
and for all .other purpose s, and. ncitlte.r the City nor the Registrar Nvil.l be affected by any notice to the
Contrary'
IT IS FTEREBY CER`i'IFIE.'D, TZI:;CITGD, COVENANTI U AND AGREED that all acts.
conditions and things required by the City and the Com ituti.on and laws pf the State of Minncs�ta tt !ae
done, 1:0 exist, to happen acid to be perl'ormec[ pCeliminary to and in the issuance. .of this. Bond in order to
InAke it a valid and guiding general obligatioji of the City in .ttc.c.ordance with its terms, have been clone,
do eai.st, have happened and have been performed as so required, and that tile.. issuance of tltif;*Bond doe
iwi. cause tite indebtedness -of the City to exceed •any constitutional.. charter, or, statutesry lirttitation c)l,
indebtedness.
This Bond. is .not valid Or` obligatory for arty purpose or entitled to any security or bcnelil under
the Resolution until the: Certificate 'of Autltenticafioii hereon has bt:Een executed by the; Registrar by
rnanital signaturebrone of its authorized representatives_
-r+;12s`5, r 0AF G'.E 9n.t2 B-2
IN 1i IT'NIESS WHERE017. the City of (',crlr I.:Ake, Ramsey :County. Minnesota, by its City
COL111C i, .hAS ckised this Bond to be MCLited on its behalf by the. facsimile or manual sigi>Ialtire> of? the
Mayor And Cit. Administrator -Clerk and leas causcd..Oiis Road to be dated.as orlhe elate set forth below,
Dated; .lLine I
CITY OF GE M LAKi,, IMIN.N ESOT A
.--------_ �� _ l EIGSI 1T11
1a!°' City Administrator -Clerk
CERTIRCATE OF AUTHENTICAT)ON
This is otie of the 13nnds dehygrO.pursuant to.* Resolution mentioned tuition.
U.S. BANK NA,ri9NAL ASSOCIATION
By
Its Authorized Officer
AB13REV IATIONS
TW *Following used in the inscriptiot3 oil the face of this Band, ��aCI be
constmed.as.thou.gh they -were-written out in Full according tual:>p cable ltlia-s or regulations:
'I -EN, com -- as tenants in coritmon .UNIF GIFT MIN ACT
Custodian
1'IrN I N7 -- aster nts by entireties tinder Uniform Gifts :c>r 'Cranstet•s to i�•liltoi•s
Act, State of
j'r TEN -- as Joint tenants- witft rig)t- of
sti-imorshih and riot as tenants in common.
Additional aEtbicviatfts may also be used though not in the above list.
46125AV I OA 1: 0F tW 12' 1 3
ASSIGNMENT
Fpr* value received, Ilse undersigned hereby sells, assi ils aitd transfers aili«
_ the within Bond and 411 rights. thereunder. and does
hereby irrevocably constitute and appoint _ atforney to transFer [he said Bond oil the
books kept`for registration of the within Bdnd,* itll full power ofsubstituti011 ill ti1e prcjrtises.
Dated:
Notice: The assignor s si-nattire to this assignment must correspond with the nanxe as it
appears upon the face of the within Bond in every particular•, without alteration or
any chang whatever.
Signature Guaranteed;
NOTICE: Sigplature(s) must be gtiaranteed by it fintulciai. institution that is .a member of the Securities
Transfer Agent Medallion Progi-am ("STAMP"). the Stock F rchatlge Nledall.ion :Program VIP -I), the
New Fork Stock I;Ncharlge, Inc. Medallion Signatures Program ("IVISP") 'ar other stick "signaliire.
guarantee prograilr" as nlay be deterimined. l}y the Itegistrflr in addition to, or in substitution for, STAMP,
SF.MP or MSP. all in.accordance with. the Securities Exchange Act of 1914, as amended.
'MeRegi5trar will not effect transfer of tins Bond unless -.the information concerning the assigner;
requested belm� is provided.
Name and Addres::
Oncl.ude inPorinati n fora11.10int owners if this Bond is.
fleici by joint acc(Nunt.)
Please insert social security or tither idenfifjing;
number of assignee
46125 vlIiA Oj; 190-r3 BA
PROVISIONS AS TO REGls rRA,[,iO
The v*nership. of .tile principal of and inlcrest on the within 1.3O�nct has becc) rc4 steied can the
books*of the itegistear in the nap3e of the Pei son fast noted belc».,:
Date ol_Re istr tt Reaistertd O Icl.
,C.Pde. &. Co.
Federal ID # I a--,i55 i i g
Signature of
( ffi e- t)_fA i_ar
YEAR*
20.1*0.
2017
201:9.
201*9
2020*
2021
2a22.
2023
1024
�.025
2026
202.7
1'ear. far
IXIRBIT C-
TAX LEVY
MA&LI —Cvy
C-
EXI�IBIT.I?
NOTICE OF CALL.FOR REDEMPTION•
S850,90.0 43EiNTMAL OBLIGATION CAPITAL IMPROVEMENT P"N DONDS, SERIES' 2007A
CITY Off .GEiIM LAKE, MI NESOTA.
!s OT'IC:I: 1S JERl $Y Gjvi Nt that, by order of the City Cotttliil of the City of .C�etn l..alce. \'iinncSi)la
.(the "1`s uer"), there have been called Pot- redemption and Prepaynletlt. on Febru�iry I. "M (the
"Redemption Date"). all outstanding bonds of the Issuer .designated as $850;000 General .C:7biiglit*
Capital Inlproion
vernent Phan Bonds, Scries 2007.A, dated ;Tune 2U, 200?, Iiaving �ttilecl maturity oltttes of
February I in the years 20.18, 2020, 21022, 4U21, 1026., and 2028, totaling fi?3U,000 in outstanding
p1-irtcip�t] amount, and with the following CUSIP numbers:
i3otld \{ttml�er 11aturttti i mT �-T
Princinat t trirHr�cr.u:;r� r,r �cru:a�M
All aunt" j
Z-_
•—
......_r.
i__._.......—
--+-o —..._....._.
4. 1 363 l.:l
'tl?(I*
I iU,ODU !
:
.1;�o- -
,1f�5 -`
3ii861A:1t9[
022
1 i_.uUU.36861A
AP<4�.
_ . R-5 ._
_�.._.- )- .-
--..
.
—__ ,
--
4,40 ,' _ r __....
-- - - - -
16801 A ATb
_...._—.__......_
R 6_�.nnOQQ_
Term Bond
The [3oiad.s are being called at a price cif par plus accrued interest .to the k-ederrlption Date, on
wbieh. date idl interest Oil said Bonds "111 cease to accrue. Holders of the Bon& her called -foi-
redemption are requested to present their Bonds for .payment at the of'licQ of U-S. Bank NatiomI
Association, C6rporate'Trust Services,.60 Livingston Avenue, EP-N1:'v'-',.�: SX, S.t. Paul, Ml.i iesota 55101
ork or before the Redemption Date,
PIymettt of the: redemption price oil the above. Bonds will became due *and• payable curl the Redemption
Date' tipon uresenttrti.on and. surrender thereof_ Interest on the principal amount designated 16 be.
redeemed .shall cease to accruee, on and after the redemption date, Under the Interest and Dividend
Cornpliance.Act Of 198 3.1 l Will be Withheld if a.x-identification number N not properly ce.1•iifiedl.
The Issuer shall not be responAble, fdr flie .selei i.icitt or itse c>#' the (U$[I' Numbe.r`.5. nor is. any
.representation.made asto the correctmss thereof cis indicated in this redempt:ictn notice. CI-,;:S.1P Numbers
are included solely for the eanvenienoe:offhe hoiders.
I3Y QP,.D.Ek Q.F T14E CITY COI.)NC IL 01I
OFM LAKE, KINNE$OTA
Important Notice, In cottlpliance .►vjth. the Economic Growth and Tax Relief Reconciliarian Apt cif 30pi,= federal
biic.l up.Nvitlih01(lin+r tax will be w4hbeld -at the applicable backupwithholding rate: in effect *at the time tilt pay.rnern
by the eccteent:irib in5iitutiuils if they are not provided with W"r social ismir ity number or tederai cmplo, er
identification number, properly certified. This requirement is litltiiicd by submiltine a W-9 Form, which may E��>
ob..tnine4 al a bank or other fimariciei institution,
°" htd Cates full call of stated mdiurity.
**' !either. the Issuer nor .the Fiscal. Agent/Paying Ag
Agent shall be responsible for the selecrign of .iir use of the
Ct. S.IN nuntiber::md no �epreserrtarion .is made. fts. to its. correctness indicates[ in the :tic�tice of Call .t'or• Redemption:
CUSIP numbers are included solely fair the Convenience of the HoldLr S.
4p12.;S vl0AVCA,190-12 D-1
STATE OF MINNESQ1"A )
COUNTY Ol" RAMSEY
CITY OF GEM LAKE
I, the undersigned•; being the dady qualified and acting City Clerk of the: City of Gent Lake.
M.inncsota (tile "City"), do hereby certify that I leave .carelutly cdmpared the -attached $na foregoing
extract a[' minutes of a regular meet,il}g of the CRY Cbtmcil of the City held on May 19, 2015. with the
.original minutes on file in niy office and the extract is a full, true and coi•rcct copy of tine. minutes insofar'
as they relate..to the, issuance and sale of the City's Gen&i l Obligatipn Rgfanding Bonds, Series 2015A,
in the original aggregate principal .amount of
WITNI:SS.IN9y hand. officially as such City Clerk and the corpt�cate sral.gf the City fihi5day
(SI-'AL)
City clerk.
City- of Gem Lake, Mitinesota
46125,11rvl UAFdr06-12
STATE OF MI'NNESOT.A COUNTY AMATOR,1FREAS(!)--'R'I
CE:RTIFiCA'i"E AS TO "I AX IJ:V)'
COUNTY OV-RAI gEY. AND RI C;IS"FIZA"FInN
i, the Undersigned C:gttttt} Audit
rof Ramsey county, Minnesota; ltcreby certify that a ccrti:l:,eet
cop) cif a resol,.tticin adopted. by the governing body of the pity of Gem Lake, M#nni;.sota, an v#a. 19:
2015, levying taxes for the paymePt; Or � � Lieneral Obli;ration :ltefumting I3Onijs. Soriles
?015A. -of said -Municipaiim...- diced. pine 17. 201 S. has been filed in arty of-tice and said bonds have been
ertlered c>n Chc re icier ofobligati
ons in my -office gliil that such t&k has been levied as required by law.
b1<t'F L$S My hand and off icial setff ibis_- day aFiO t 5.
RanlseIV County, Minnesota
Deputy
OAF d: F [90-i?
Post I§.Wknce Debt Compliance Poliey
The City Council of the City ofCaem Lake, Vlinnesota..has chosen; by policy, to take:steps ca help ensure
that all tax-exern.pt debt. ONigations will -be in compliance wifli ,ill.applicable.st-1 and federal regulations
regarding tfm obligations.. "fhispolicy may be amended. as necessary, in the future.
8aek411round
Tax-exempt debt obligations {debt for which tile. interest p4id.to the debt holders is:excludable fioin their
gross income for federal income taxes) result in a lower interest cost. to state and local guvcrntne.nts (the
issuer). The ta:� exempt status remains .tl�rcrtrghuut the life of the debt obli�_ation pt•ovi ed all applicable
state and. federal tax laws are satisfied at the time of issuance and throughout the terns of the
Obligation. The Internal Revenue .Selvice tIRS) i1 responsible fbi'.enfor6rlg compliance with ihe.Ittternal
Revenue Code and most outer regulations governing tax-exempt obligatiorts.. 'f 1ie 11.Z.S expects.issuers and
beneficiaries of tax-exempt debt to adopt and implement.. a. post -issuance debt corpliance policy and
procedures to safc;uard against post -issuance vio.lsltians that MA result in ilieloss -of•tile tax-exempt status
of the debt.
Post -Issuance Debt C6mliifsince Policy Objective
'l'he City of.Gem Lake desires to monitor all of its tax-exempt debt obligations t.o ensure that all tax-exempt
debt obligations renialn in compliance with the IRS Code and all other regulations governing tax:exempt
obligations. To help ensure ctitnphiijIce. the City of Gem .Lake ha7 developed -:"Policy", The following.;
Folic, sljtiii apply to till tax-exempt debt obligations including bards, notes, loans, lease purcha-c contracts.
Imes o<<redit, commercial paper. ir• any Tither form Of tax-exempt debt. This Policy primarily applies to
t,overnmentaf bonds:.ttr post -issuance policies specifically related to ci)nduit ; pri:vate activity bonds. See
the Procedure for. Application to the City 6f{3em Lake. ivlinnesota.fiir Private Acltvi(}' Kevettut 13imi1
F irtaticing.
Post Issuance. Debt Compliance Policy
I'hz city Treasurer of the City of Geri Lake is designated as theti.ty:S merit who is res.ponsible for post -
issuance compliance of all tax-excinpt debt obligations.. and is referred to in this policy as the " Coanplianee
Cr!•ticer.''
The Compliance Officer shall assemblc all relevant documentation. records and activities requitedt:o
ensure post -issuance debt.compliance ns furilierdetailing the"Pose-lssuanc.e 1)abt{ornpliance
Procedures"_. At a.mininittm. the P0St-ls.s.U:111c4 Debt C:otirpliance procedures for eacli tax-exempt debt
obligation will address•tlie follown-lo.
1. General l5ost4ssuance Compliance;
?•. Proper and timely use of bond proceedsnard bond -financed property;
3. Arbitrage Yield restrictions and rchiirc
4. Timely filings and outer woera1 requirements;
S. Additional undertaking or activities that support points I through 4 abdvii;
6. Other requirements that become necess.ar} in. the future..
'nle CompliaOCC Ofticer shall Hpply the Post -Issuance beht C'orripliance.Pr6cedures to eat i tax-exempt
debt obligation and maintsiin a record of results. I"urtiicr. the C`(�mpliance C)f c:er gill erisut:c that the
Post-Issttanoe.4ebi Compliance Policy and Procedures are updated (li a regular and as heeded basis..
The Compliance Officer, or any other indi.vidUals responsible for assisting.tile Conipliance Officer in
nia.int-irting recortfs needed to en5iirc post -issuance .compliance; are authorized. to. expend funds as.needcd
to attend training.or secure use of other educational resources for ensurn%cotnpliance such as consulti.nb,
publications. and compliance assistance.
I".lie compliance Offk6r Will -be assisted by other City staffand olficials whett-appropriate. I'he
C'(1mpliancc Offtccr of�he,City %i-ill also lie as;ii,ted in carryjug out po,$t-issuajtce ciimplianc requirements
by t:ltc fblloi:vinp or10111atiotls.
a) Bond CQUII tvl (as of die d9le.-of dppiroval of this Vbitcy, borrd ct)unsel for theCIISf iS..KCntiCdv &
Gt aven):
lsj Fin711cial.Ad isor (ass of the -date of approval cif thi.s Policy, the financial advisor Uf the City is
F'hicrs and As.ociates, Inc.):
c? I'aying Agent (aa of'the date of approval offhis Policy, tile- paying a.gent'.oftire City N Bond Trust
SCT-ViCVS Corporation); and.
cl} iterate Analyst (as of the.date ofapproval ofthis:Policy, the rebate analyst of the City is l lifcis
and Associates. Inc.). -
The Compliance Officer shall be responsible for assioirizg past-issuai►ce c0 niplianee responsibilities to
Other staff of the City, Bond Counsel, Paying :\gent, and Rebate. Analyst. `fhe.Cotrtptiance Officer shail.
utilize such other professional service organizations its are nece ,';ary to. ensure compliance with the post-
isstiauce compliance requirements of the City, The Compliance Officer is authorized to expend funds.as.
needed for training and educational resources for the Com.pliance.Officer and any.other City staff who are
assigned responsibilities for ensuring compliance with any portion of the.post-issuAttce compliance
requirements of this Policy.
Approval by the .City drGetn Lake City.Gpuncil the• _
---- -•w �.^ _.- _.... -._._.._._..._...................._m .—.� _ ..._......._......._...._.....
Robert Uzpeit, mayor Date
- - - -- __ .........
_. Willii3m Short, City ClerkDate
CITY OF Gl 1,1 LAKE-
': RESQUY( ION NO. 2015 = 08.
RESOLUTION APPROVING TIRE F1NAI, Fi;ASfI13Yf..ITY S-1iJDY UA'I'f 1) xxxAtii7
SETTING TIM; DATE AI D TIME 1=OIt.' H IMPROVEXI ENT HEARING,
WHEREAS, the Citv'Cftnel.l Of Gen! lake ACCEFfS AND APPROVES the Water Feasibility
Study dated May 14111, 2015
Therel$T, he it. resolved the Getn LAC City Coulleil sets the following date and time fol- the
imprt venient hearing:
1. June I6`t`. 20I
2. Heritage Hall, 4200 Otter Lake Rd, Gem I:.ake, MN
3.. 7 00 P.til,
The motion for the adaption.of the. foregoing Resolution was offered by Councilor and
was supported by Councilor and was declared adopted -based upon the following vote:
NAME UZPEN SOSAK.— T LINDNER ~— _ i K.UNY.-ARTIG �^T�
SWOMLEY
Vote_�--
Attest
1, WILLIAM F. SHORT, the duly qualified .City Clerk for the City of Gem Lake, County of Ramsey, State.
of Minnesota, do herebyy certify that the foregoing. Resolution is a true.and accurate representation of
action taken by the City Council of the City of Gem Lake on the date first written.
---- _ ...........
_ - 19 May 2015.
WILLIAM F.. SHORT, City Clerk:
50405 of 11:31:58.24
City.of Gem Lake
.check Register - Prepaid Checks
For the Period From May 1, 2015 to-Ma*y 20; 2045
C-';':�r l irri;;c'es
Repe-, CtIdt�r is by Qhuck N)Jmber
Check•#•
pato
Payee
Amount
9453
511"W" 5
Cilor;a A. Tessier
807.72
9455
5!19115
City of Roseville.
G3.90
9456
5.,/1911:5
C YofWhite. Sear Lake
1.248.25
9457
5119115•
Coverall of the Twin Lilies
+ 75 0b
9458
5119115
Fedi x Office
254.44
9459
5119i15
Harris Computer Sysle,tis
$4.1 7
9460
5119!16
Hillary -Farm.. LLC
150,00
946'
,19J15
Innovative Office Solutions, LLC
148.90
9462'
5"IM5
Kristin Smith
200.00
9463
.5119115
LMC losurarsce Taist
2,421 00
9464
5/19115
Ciif,onLarsOnAllen LI.P
7,50t1.00
9465
5119" I,5
-Jim Lindner
104.00
9466.
511:9115
Gopher:Slate.()ne. Cali
4.3.50
9467
511V1a.
Press Publications
25.20
9468
:5119115'
Cenluryb6k
100.7$
9409
5119115
Ramsey .CotJnty
.238.77
9470
5119l15
BEN
28;713.70
94 7 1.
5119115
$t Paul Stamp VOiow". fiic
(i4.19
9472.
5/19115
Waste:Mariayement.of VJ1=MN
712.05
94173
5119/1:5
While t3iser Township
4.739.12
947e-
5119115
Xcel Energj
495.34
Total
48, �S!.03
Page- 1
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19
MEMORANDUM
Date: May 13, 2015
To: Mayor and City Council
From: Tom Kelly, Treasurer
Re: First Quarter 2015 Financial Report
One of the things I did as finance officer when I was at.the Township previously and at the City
of Monticello was to provide the Town Board/City Council with quarterly financial updates. The
City Council is ultimately responsible for the City's finances and having good internal controls in
place.. To aid in this responsibility it is my goal to resume these quarterly financial reports to the
City Council. The goal of the report is keep the Council informed on how the City's finances are
doing compared to budget and prior years and to inform the. Council of any unusual activity.
This is my first report and would welcome any feedback to improve future reports.
The first quarter of the year fly right by. The City's revenues and expenditures are where they.
should beat this point in time. The key to.the City's finances are that even. though we are 25%
through the year, revenues and expenditures don't flow evenly though the year. There are
some onetime expenditures which are spent at the beginning of the year and expenditures for
snow plowing activities which are spent during the first and fourth:quarters of the year which
makes the City look like it may over spend its budget but over the course of the year will actually
be in line with budgeted amounts. Likewise on the revenue side:the major revenue source is
property taxes and special assessments, which are received in July and December. Also sewer
billing revenues are only received once a quarter. Below is a chart comparing budget to actual
revenue and expenditures for the years 2014 and 2015.
Revenues
2014
2014
%
2015
2015
%
Budget
_- Actual
Received
Budget
Actual
Received
General Fund
232,016.00
41,083.06
17.71%
251,932.00
31,333.18
12.441%
5pecial.Revenue Fds
515.00
0.00
0.009101
615.06
0.00
0.009'a
Debt Service Funds
110,227.00
0.00
0.00•�
94 081.00
O.OQ
0.000/0
Capital Project Funds
18,832.00
0.00
0.00%
2,2.05.00
0,00
0.00%:
Enterprise Funds
48,5.55,00
0,00.
0.001yo
49;943.00
13563.12
27.16%
Total
410,145.00
41,083.06
.10.02%
394,776.00
44;896.30
11.261/1a
Expenditures
2014
2014
%.
2015
2015
9'a
Budget
Actual
Spent
Budget
Actual
Spent
General Fund.
M8,133.00
.79,386.69
25.11%
331;932.00
75,656.09
22,79%
Special Revenue Fds
0.00
0,00
0:00%
0.00
0.00
0.00%
Debt Service Funds
48,505.00
32;177.50
66.34%
47,905.00
31,871.50
66.54%
Capital Project Funds
8,900.00
0.00
0.00%.
70,500.00
12,981.32
18.419S
Enterprise Funds
54,738.00
7,100:52
14m%
59,48L00
6,200.05
10,42%
Total
428,276.00
119,264.71
27.85%
509;818.00
126,714.96
24.85%
It should be noted that
the budget amounts are
for the fiscal year and the actual is year to date
actual revenues collected of funds spent. The
rest of the report will detail the
revenues and.
expenditures of each of six fund types.
I
GENERALFUND
For the first quarter, revenues are slightly above budget projections and expenditures are
slightly below budget, which is show in future charts. However the chart below shows how
revenues are below expenditures levels for the first quarter which is typical until the City
receives its first half property tax payment in July. Also one can see how the City depends on
reserves (cash balances) until that tax payment is received.
Comparision o� Revenues,
Expenditures, & Cash Balances
250.000.00
? S0.0`0.100
Re�,enuss
100,000.00
FxrPnr'ituras
o JU
For the year the City has received 12.44% of the budgeted revenue through the end of the first
quarter, which is a bit behind last year at this time. Business, liquor, and tobacco licenses which
are renewed at the beginning, all except tobacco licenses exceeded their budgeted amounts by
a total of $900.00 this is in part due to change in procedure for sending out notices to the
businesses. Also building permit revenue is up from $654.00 in 2014 to $4,438.00 in 2015.
Also as the weather warms up so does permit activity resulting in increases in those revenue
sources. The City has also received it one-time revenue for police state aid of $4,401.00 which
is $1,408 below budget for the year. The chart on the following page compares budget to actual
revenues for the last two years. For this chart the monthly revenues are 1/12'�' of the total
revenue budget with the exception of property taxes which are included in the July and
December budget numbers only.
Revenue Comparision
300.000.00
2 '10,000.00
200,000.00
150,000.00
I M.000.00
so.,Mou � �
o.0J
■ 201. Budget
■ 2014Actuai
:- 2015 Budget
■ 2015 Actual
Actual expenditures for the quarter are below the 2015 budget and below both the 2014 budget
and actual amounts as shown in the charts below:
2014
2014
%
2015
2015
%
Budget
Actual
Spent
Budget
Actual
Spent
General Government
40,622.75
30,955.69
76.20%
40,449.75
31,116.62
76.93%
Public Safety
27,773.00
31,819.37
114.57%
32,195.75
35,676.76
110.81%
Public Works
10,637.50
16,611.63
156.16%
10,337.50
8,862.71
85.73%
Total
79,033.25
79,386.69
100.45`Yo
82,983.00
75,656.09
91.17%
Expenditure Ccmparison
sso,000.00
3lrl),000.00
1
2 50.000.00
200,000.00
■ 2011 Budget
150,000.00
■ 2014 Actual
2015 Budget
100,000.00
■ 2015Actual
I
.
OAO
4^
�J�0
tc���
coOf
If expenditures were spent evenly throughout the year the City should have spent 25% of its
budget, which is the budget amounts in the previous charts. The only activity over 25% spent of
their budgets after the 15
t quarter is public safety, which is due to having already paid for 4
months of service.
The good news is that the general government and public works departments are well under
their budgets through the first quarter and as you can see from the chart below these two
departments are below actual expenditure for last year at this time. As the summer months
progress street maintenance expenditures will replace snow removal, which is generally less
costly.
Expenditures :-y De-artment
i S.lk;i).W
301.000.00
■ ?014 ii!.—dgat
2 5.OG0.00
■ 1.014 Act,<al
20.000.00 2015 5uc1 et
1`�,lX)O.CU ■ )01 S Actual
1 U.[Y. )i►. tX)
S,t)Ui).[ '.)
o.00
era c,n:arnm�n' F'ul lic Safety Puhlic Works
Overall the General Fund appears to be in good shape through the first quarter of the year. If
revenues and expenditures follow previous year collections and expenditure patters revenues
should finish the year above or near budget amounts while expenditures finish below budgeted
amounts.
SPECIAL REVENUE FUNDS
The City's only Special Revenue Fund is the Parks and Playgrounds Fund, which has had no
activity through the first quarter.
DEBT SERVICE FUNDS
On February 1st the City paid its 2015 debt obligations of $15,000.00 in principal and $16,327.50
of interest. The City now has $745,000.00 in outstanding debt. The next scheduled debt
payment is the interest only payment of $16,027.50 due August 1st. Funding comes from
property taxes and special assessments, which the City will receive with the first half 2015
property tax settlement in July, which is why there is no revenue activity for the year.
I
CAPITAL PROJECT FUNDS
Again no revenues have been received in the first quarter are from special assessments, which
the City will receive with the first half 2015 property tax settlement in July. The expenditures are
engineering expenditures for the water extension project into the business district.
ENTERPRISE FUNDS
The City's only Enterprise Fund is the Sewer Enterprise Fund. Revenues for the first quarter
are above last year revenues and are just over 27% of budgeted revenues. Revenues totaled
$13,563.12 for the first quarter of 2015 compared to $12,600.94 last year. Expenses for the
year are below last year's expenses and are just over 10% of budgeted expenditures. Keeping
in mind that the expense budget for the Sewer Enterprise Fund includes depreciation which is
not recorded until year-end. The main expense is the M.C.E.S. charges for sanitary sewer
treatment. The City has a budget of $21,156.00 for these charges and have paid 25% or
$5,289.00 for this line item.
Overall the Sanitary sewer fund should finish the year with revenues slightly above budget and
expenses close to budgeted amounts. If this happens the Sewer Enterprise Fund will operated
at a loss of about $5,230.00, which suggests the need for a possible rate adjustment.
CASH AND INVESTMENTS
Finally, the City had $877,665.37 invested as of March 30st. This compares to $1,106,922.33
invested last year at this time. The decrease in investments is due to the City paying off the
City's 2004 and 2006 improvement bonds in 2014. The investments had an average interest
rate of 1.06% compared to 1.46% last year. Interest rates remain low and the City had an older
investments with an interest rates of 4.80% called (mature) in February. The chart below shows
the City's invested funds for the last two years.
$ i nvested
1,M),01WAx)
1,OUO,t;ti0.00
800,000.00
O100.0U0.00
400,000.00 ■ 201.1
200.000.00 ■ 2015
-D.00 At1 "
The other factor and equally important as funds invested is the City's cash in the bank. These
are the funds the City uses to pay its bills each month. Since the City receives the majority of its
I
money in July and December from tax settlements, it's not unusual for the City to have a large
amount of cash available in those months with the funds being drawn down in the proceeding
months. Depending on expenditures and other revenues collect the City may draw on its
investments to help meet its cash needs. The chart below demonstrates the cash flow for the
City.
Cas' E Balances
2 50,000.00
200,000.00
1 SO,000.00
1 W.000.00
50,000.00
O.00
2J �r� J
�fQ Cao Qt-
CONCLUSION
201=
The City had a typical first quarter of the year financially. Through the first quarter it appears
revenues could finish the year above budgeted amounts for most revenue sources, while
expenditures may end near or slightly below budgeted amounts. The City has sufficient cash
and investments to meet its obligations until the City receives its first tax settlement in July,
however investment eamings remains low. So it would appear the City is in good financial
shape for 2015.
Finally, it is my goal to resume providing quarterly financial reports to the City Council. The goal
of the report will be to keep the Council informed on how the City's finances are doing compared
to budget and prior years and to inform the Council of any unusual activity. I would welcome
any feedback to improve future reports.
CITY OF GEM I.A.KF
CASH AND IN'Vt S"rti•11 NT
RALANCE STATEUNIENT
As ol'0440/IS
Fiscal Y*r: 2015
Cash and Investments
Balance
Balance.
Name of Fund
3/310-0.15
Receipts
Disbursements
4/30/2015
General Fund
S277,784.99
53 986.36
S35,001.75
.5246:7690
Parks Mini Play° rU.uttti5
538.84?.80
$148.73
$0.00
538;91*633
2004 i7ebt Service Ft.m.0
($25.333.58)
Sti.00
$101,10
2
2006 Qcht Sc rvicc Fund
$17,887.3?
,566.8.3
$U.Qij
$17,951..1a
2007 Capital Improvement Bood
S32,ill 1.9i)
S?9E.G2
:$O.dO
S62;823.61.
Street I mprovement
S i 29;90U..SG
S49. 7.32
SO.00
$130,393.18.
Scheunematt 1 WId Improvemems
53,114.85
510.33
$0.00
MO, 125.1a
tloflinan Road improvements
(S2.4,075.07)
50.00
53.1.87
($24,10694)
Setrr f n.tecprisr Fund
3 #03,.3 1.7q
57.537.51
5135.C941U,13.5
investment •rrust Fund
$3.6QT97
$3,003.10
53.607.97
-U.063.10
$87 7.608.87
515. 41.90
$30.178. 38
$813,972,29
Premier ClIeckiiig
$131,.T4G.U2
Premier COs
$O.OtI
Well's rarg-o 111milmetits
$560,000.00
Wells Fargo Money Market
S..i,�l�2.1Q
$0 96
AAI,ANCE'OF-GAiMBLING FCfm*:
Balance Valance
3/31/201.5 Receipts Disburscmots 4,30/20115
Gambling Fund Balance $4,0.77.3? S24 141 SU.00 543)18.7:3
jwmr.. CAM i & IN V,-- S 7M.E:NT S.
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