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BRIGGS AND MORGAN <br />Professional association <br />1335783v1 <br />, 2��1 <br />TO: Mr. Edward Burrell <br />Treasurer-Finance Director <br />City Hall <br />2660 Civic Center Drive <br />Roseville, Minnesota 55113-1815 <br />2200 First National Bank Building <br />332 Minnesota Street <br />Saint Paul, Minnesota 55101 <br />Telephone (651) 223-5600 <br />Facsimile (651) 223-6450 <br />WRt7'ER'S UI[2ECT DIAi. <br />WRITER'S E-MAIL <br />Re: City of Roseville, Minnesota - D�feasance of Certain Maturities of General <br />Obligatiou Tax Increment Refunding Bonds, Series 1998 <br />Dear Mr. Burrell: <br />The City of Roseville, Minnesota (the "City"), has undertaken a program to defease certain <br />maturities of the City's General Obligation Tax Increment Refunding Bonds, Series 1998 (the <br />"Bonds"). Pursuant to this program, the City has applied existing debt service fund or debt <br />service account, as the case may be (the "Debt Service Fund") balances established for the Bonds <br />to purchase obligations of the United States Government (the "Escrow Deposit") which have <br />been placed in escrow in accordance with the Escrow Agreement, dated as af , <br />2001, by and between the City and <br />has represented that the moneys received from the investment of <br />such Escrow Deposit will be received at times and in amounts sufficient to pay when due all <br />principal, interest and redemption premium, if any, on the Bonds. <br />We have been asked four questions with respect to the transaction: <br />Will the transaction impair the tax exempt status of the Bonds? <br />2. Do the bond issuance documents allow a defeasance of this type? <br />May the City transfer to its general fund any remaining Debt Service Fund balances for the <br />Bonds, as well as future amounts of any tax increments which the City will receive with respect <br />to projects financed by the Bonds? <br />Tax Egemnt Status of the Bonds. Any Debt Service Fund balances for the Bonds may be <br />invested at a yield that does not exceed the yield on the Bonds. The Escrow Agreement provides <br />that the Escrow Agent will not invest the Debt Service Fund Balances for the Bonds at a yield in <br />excess of the yield of the Bonds and will purchase United States Treasury Securities, State and <br />Local Government Series. Therefore, in our opinion the transaction will not impair the tax <br />exempt status of the Bonds. <br />Minneapolis office � ids center • www.briggs.com <br />member — lex mundi, a�lobal association of �ndeuendent law firms <br />