HomeMy WebLinkAbout2016-057 ($2,450,000 GP TI Refunding Bonds 2016B) EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF STILLWATER, MINNESOTA
HELD: March 22, 2016
Pursuant to due call, a regular meeting of the City Council of the City of Stillwater,
Washington County, Minnesota, was duly called and held at the City Hall on March 22, 2016, at
7:00 P.M., for the purpose, in part, of authorizing the issuance and awarding the sale of
$2,450,000 General Obligation Tax Increment Refunding Bonds, Series 2016B.
The following members were present: Councilmembers Menikheim, Junker, Weidner,
Polehna and Mayor Kozlowski
and the following were absent: None
In accordance with Resolution No. 2016-042B adopted by the City Council on
February 16, 2016, the City Clerk presented proposals on $2,450,000 General Obligation Tax
Increment Refunding Bonds, Series 2016B, which were received, opened and tabulated at 10:30
A.M., Central Time, at the offices of Springsted Incorporated on this same day:
Bidder Interest Rates True Interest Cost
See attached
The City Council then proceeded to consider and discuss the proposals, after which member
Weidner introduced the following resolution and moved its adoption:
RESOLUTION NO. 2016-057
RESOLUTION PROVIDING FOR THE ISSUANCE AND
SALE OF $2,450,000 GENERAL OBLIGATION TAX INCREMENT
REFUNDING BONDS, SERIES 2016B,
AND PLEDGING TAX INCREMENTS FOR THE PAYMENT THEREOF
A. WHEREAS,the City Council of the City of Stillwater, Minnesota(the "City"),hereby
determines and declares that it is necessary and expedient to provide moneys for a crossover
refunding of the City's $5,300,000 original principal amount of General Obligation Tax
Increment Bonds, Series, 2008B, dated July 1, 2008 (the "Prior Bonds"); and
B. WHEREAS, $3,460,000 of the principal amount of the Prior Bonds which mature on and
after February 1, 2020 (the "Refunded Bonds"), are callable on February 1, 2019 (the "Crossover
Date"), at a price of par plus accrued interest, as provided in the Resolution of the City Council,
adopted on June 17, 2008 (the "Prior Resolution"), authorizing the issuance of the Prior Bonds;
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C. WHEREAS, the refunding of the Refunded Bonds, is consistent with covenants made with
the holders thereof, and is necessary and desirable for the reduction of debt service cost to the
City; and
D. WHEREAS, the City Council has heretofore determined and declared that it is necessary and
expedient to issue General Obligation Tax Increment Refunding Bonds, Series 2016B of the City
in the amount of$2,450,000 (the "Bonds" or individually, a "Bond"), pursuant to Minnesota
Statutes, Chapter 475, to provide moneys for a crossover refunding of the Refunded Bonds; and
E. WHEREAS, the proceeds of the Prior Bonds were issued pursuant to the provisions of a Tax
Increment Financing Plan (the "Plan") for Tax Increment Financing District No. 10 (the "Tax
Increment District"), within Municipal Development District No. 1 (the "Development District"),
to provide funds which were expended within the Development District to finance capital and
administration costs, consisting of the construction of a municipal parking ramp within the Tax
Increment District, as set forth in the Plan and the tax increments derived from the Tax
Increment District (the "Tax Increments") have been pledged to the payment of the Prior Bonds;
and
F. WHEREAS, the City has retained Springsted Incorporated, in St. Paul, Minnesota
("Springsted"), as its independent financial advisor for the sale of the Bonds and was therefore
authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes,
Section 475.60, Subdivision 2(9) and a proposal to purchase the Bonds has been solicited by
Springsted; and
G. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-entry form
as hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Stillwater,
Minnesota, as follows:
1. Acceptance of Proposal. The proposal of Stifel,Nicolaus & Company,
Incorporated in Birmingham, Alabama(the "Purchaser"), to purchase the Bonds in accordance
with the Terms of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the
sum of$2,590,496.35,plus interest accrued to settlement, is hereby found, determined and
declared to be the most favorable proposal received, is accepted and the Bonds are awarded to
the Purchaser. The Administrator/Treasurer is directed to retain the deposit of the Purchaser and
to forthwith return to the unsuccessful bidders any certified or cashier's checks or Financial
Surety Bonds.
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2. Bond Terms.
(a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds
shall be dated April 14, 2016, as the date of original issue, shall be issued forthwith on or after
such date in fully registered form, shall be numbered from R-1 upward in the denomination of
$5,000 each or in any integral multiple thereof of a single maturity(the "Authorized
Denominations") and shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
2020 $190,000 2026 $230,000
2021 $200,000 2027 $240,000
2022 $205,000 2028 $240,000
2023 $210,000 2029 $245,000
2024 $215,000 2030 $255,000
2025 $220,000
As may be requested by the Purchaser, one or more term Bonds may be issued having
mandatory sinking fund redemption and final maturity amounts conforming to the foregoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(b) Book Entry Only System. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or its
successors to its functions hereunder(the "Depository") will act as securities depository for the
Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book
entry form only(the "Book Entry Only Period"), shall at all times be in the form of a
separate single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized Denominations
for any Bond shall be deemed to be limited during the Book Entry Only Period to the
outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar(as hereinafter defined) in the name of CEDE
& CO., as the nominee (it or any nominee of the existing or a successor Depository, the
"Nominee").
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall
have any responsibility or obligation to any broker, dealer,bank, or any other financial
institution for which the Depository holds Bonds as securities depository(the
"Participant") or the person for which a Participant holds an interest in the Bonds shown
on the books and records of the Participant(the "Beneficial Owner"). Without limiting
the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have
any such responsibility or obligation with respect to (A) the accuracy of the records of the
Depository, the Nominee or any Participant with respect to any ownership interest in the
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Bonds, or(B) the delivery to any Participant, any Owner or any other person, other than
the Depository, of any notice with respect to the Bonds, including any notice of
redemption, or(C) the payment to any Participant, any Beneficial Owner or any other
person, other than the Depository, of any amount with respect to the principal of or
premium, if any, or interest on the Bonds, or (D) the consent given or other action taken
by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of
securing the vote or consent of any Holder under this Resolution, the City may, however,
rely upon an omnibus proxy under which the Depository assigns its consenting or voting
rights to certain Participants to whose accounts the Bonds are credited on the record date
identified in a listing attached to the omnibus proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to
be the absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of obtaining any
consent or other action to be taken by Holders for the purpose of registering transfers
with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as
paying agent hereunder, shall pay all principal of and premium, if any, and interest on the
Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and
all such payments shall be valid and effective to fully satisfy and discharge the City's
obligations with respect to the principal of and premium, if any, and interest on the Bonds
to the extent of the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to
the effect that the Depository has determined to substitute a new Nominee in place of the
existing Nominee, and subject to the transfer provisions in paragraph 10 hereof,
references to the Nominee hereunder shall refer to such new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments
with respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively,by the Bond
Registrar or City, as the case may be, to the Depository as provided in the Letter of
Representations to the Depository required by the Depository as a condition to its acting
as book-entry Depository for the Bonds (said Letter of Representations, together with any
replacement thereof or amendment or substitute thereto, including any standard
procedures or policies referenced therein or applicable thereto respecting the procedures
and other matters relating to the Depository's role as book-entry Depository for the
Bonds, collectively hereinafter referred to as the "Letter of Representations").
(vii) All transfers of beneficial ownership interests in each Bond issued in
book-entry form shall be limited in principal amount to Authorized Denominations and
shall be effected by procedures by the Depository with the Participants for recording and
transferring the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to
the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any
consent or other action to be taken by Holders, the Depository shall consider the date of
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receipt of notice requesting such consent or other action as the record date for such
consent or other action; provided, that the City or the Bond Registrar may establish a
special record date for such consent or other action. The City or the Bond Registrar shall,
to the extent possible, give the Depository notice of such special record date not less than
15 calendar days in advance of such special record date to the extent possible.
(ix) Any successor Bond Registrar in its written acceptance of its duties under
this Resolution and any paying agency/bond registrar agreement, shall agree to take any
actions necessary from time to time to comply with the requirements of the Letter of
Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in paragraph 5
hereof, make a notation of the reduction in principal amount on the panel provided on the
Bond stating the amount so redeemed.
(c) Termination of Book-Entry Only System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with
respect to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may terminate the
services of the Depository with respect to the Bond if it determines that the Depository is
no longer able to carry out its functions as securities depository or the continuation of the
system of book-entry transfers through the Depository is not in the best interests of the
City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the
preceding paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the City, is
willing and able to assume such functions upon reasonable or customary terms, or if the
City determines that it is in the best interests of the City or the Beneficial Owners of the
Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds
shall no longer be registered as being registered in the bond register in the name of the
Nominee, but may be registered in whatever name or names the Holder of the Bonds
shall designate at that time, in accordance with paragraph 10 hereof. To the extent that
the Beneficial Owners are designated as the transferee by the Holders, in accordance with
paragraph 10 hereof, the Bonds will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of
paragraph 10.
(d) Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution,the provisions in the
Letter of Representations shall control.
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3. Purpose; Refunding Findings. The Bonds shall provide funds for a crossover
refunding of the Refunded Bonds (the "Refunding"). It is hereby found, determined and declared
that the Refunding is pursuant to Minnesota Statutes, Section 475.67, Subdivision 13, and as of
the Crossover Date, shall result in a reduction of the present value of the dollar amount of the
debt service to the City from a total dollar amount of$5,552,175.00 for the Prior Bonds to a total
dollar amount of$3,984,446.36 for the Bonds, computed in accordance with the provisions of
Minnesota Statutes, Section 475.67, Subdivision 12, and accordingly the dollar amount of such
present value of the debt service for the Bonds is lower by at least three percent (3.00%)than the
dollar amount of such present value of the debt service for the Prior Bonds as required in
Minnesota Statutes, Section 475.67, Subdivision 12.
4. Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year(each, an "Interest Payment Date"), commencing February 1, 2017,
calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
Maturity Year Interest Rate Maturity Year Interest Rate
2020 3.00% 2026 3.00%
2021 3.00% 2027 2.00%
2022 3.00% 2028 2.00%
2023 3.00% 2029 2.00%
2024 3.00% 2030 2.125%
2025 3.00%
5. Redemption. All Bonds maturing on February 1, 2027, and thereafter, shall be
subject to redemption and prepayment at the option of the City on February 1, 2026, and on any
date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of
the Bonds subject to prepayment. If redemption is in part, the selection of the amounts and
maturities of the Bonds to be prepaid shall be at the discretion of the City; and if only part of the
Bonds having a common maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for
redemption shall be due and payable on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of redemption shall be given to the
paying agent and to each affected registered holder of the Bonds at least thirty days prior to the
date fixed for redemption.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar prior to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar(with, if the
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City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and Bond Registrar duly executed by the holder thereof or the Holder's attorney duly
authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or
Bonds of the same series having the same stated maturity and interest rate and of any Authorized
Denomination or Denominations, as requested by such Holder, in aggregate principal amount
equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Registrar. U. S. Bank National Association, in St. Paul, Minnesota, is
appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this
resolution.
7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON COUNTY
CITY OF STILLWATER
R- $
GENERAL OBLIGATION TAX INCREMENT
REFUNDING BOND, SERIES 2016B
INTEREST MATURITY DATE DATE OF ORIGINAL CUSIP
RATE ISSUE
FEBRUARY 1, APRIL 14, 2016
REGISTERED OWNER:
PRINCIPAL AMOUNT:
THE CITY OF STILLWATER, WASHINGTON COUNTY, MINNESOTA (the
"Issuer"), certifies that it is indebted and for value received promises to pay to the registered
owner specified above, or registered assigns, in the manner hereinafter set forth, the principal
amount specified above, on the maturity date specified above,unless called for earlier
redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year
(each, an "Interest Payment Date"), commencing February 1, 2017, at the rate per annum
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specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the
principal sum is paid or has been provided for. This Bond will bear interest from the most recent
Interest Payment Date to which interest has been paid or, if no interest has been paid, from the
date of original issue hereof. The principal of and premium, if any, on this Bond are payable
upon presentation and surrender hereof at the principal office of U. S. Bank National
Association, in St. Paul, Minnesota(the "Bond Registrar"), acting as paying agent, or any
successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each
Interest Payment Date by check or draft mailed to the person in whose name this Bond is
registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by
the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth
day of the calendar month next preceding such Interest Payment Date(the "Regular Record
Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder
hereof as of the Regular Record Date, and shall be payable to the person who is the Holder
hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar
whenever money becomes available for payment of the defaulted interest. Notice of the Special
Record Date shall be given to Bondholders not less than ten days prior to the Special Record
Date. The principal of and premium, if any, and interest on this Bond are payable in lawful
money of the United States of America. So long as this Bond is registered in the name of the
Depository or its Nominee as provided in the Resolution hereinafter described, and as those
terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and
notice with respect thereto shall be made as provided in the Letter of Representations, as defined
in the Resolution, and surrender of this Bond shall not be required for payment of the redemption
price upon a partial redemption of this Bond. Until termination of the book-entry only system
pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its
Nominee.
Redemption. All Bonds of this issue(the "Bonds")maturing on February 1, 2027, and
thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1,
2026, and on any date thereafter at a price of par plus accrued interest. Redemption may be in
whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the
amounts and maturities of the Bonds to be prepaid shall be at the discretion of the Issuer, and if
only part of the Bonds having a common maturity date are called for prepayment, the specific
Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof
called for redemption shall be due and payable on the redemption date, and interest thereon shall
cease to accrue from and after the redemption date. Mailed notice of redemption shall be given
to the paying agent and to each affected Holder of the Bonds at least thirty(30) days prior to the
date fixed for redemption.
Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption
of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the principal amount of such
Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall
deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at
$5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The
Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided,
however, that only so much of the principal amount of such Bond of a denomination of more
than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so
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selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar
(with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's
attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated maturity and interest rate and of
any Authorized Denomination or Denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the principal of the
Bond so surrendered.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of$2,450,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, denomination and redemption privilege, issued pursuant to and in full conformity
with the Charter of the Issuer, Constitution and laws of the State of Minnesota and pursuant to a
resolution adopted by the City Council on March 22, 2016 (the "Resolution"), for the purpose of
providing funds for a crossover refunding of the Issuer's General Obligation Tax Increment
Bonds, Series 2008B, dated July 1, 2008, which mature on and after February 1, 2020. This
Bond is payable out of the Escrow Account and the Debt Service Account of the Issuer's General
Obligation Tax Increment Refunding Bonds, Series 2016B Fund. This Bond constitutes a
general obligation of the Issuer, and to provide moneys for the prompt and full payment of its
principal, premium, if any, and interest when the same become due, the full faith and credit and
taxing powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the Resolution for a description of the
rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney
duly authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
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herein provided and for all other purposes, whether or not this Bond shall be overdue, and neither
the Issuer nor the Bond Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Charter of the Issuer, Constitution and laws of the State of Minnesota to be done,
to happen and to be performed, precedent to and in the issuance of this Bond, have been done,
have happened and have been performed, in regular and due form, time and manner as required
by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of
original issue hereof and the date of its issuance and delivery to the original purchaser, does not
exceed any constitutional, charter or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Stillwater, Washington County, Minnesota,by its City
Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and
its City Clerk, the corporate seal of the Issuer having been intentionally omitted as permitted by law.
Date of Registration: Registrable by: U. S. BANK NATIONAL
ASSOCIATION
Payable at: U. S. BANK NATIONAL
BOND REGISTRAR'S ASSOCIATION
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the Bonds
described in the Resolution CITY OF STILLWATER,
mentioned within. WASHINGTON COUNTY,
MINNESOTA
U. S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota
Bond Registrar
Mayor
By
Authorized Signature
City Clerk
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ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA - as custodian for
(Cust) (Minor)
under the Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and does hereby irrevocably constitute and appoint attorney to
transfer the Bond on the books kept for the registration thereof, with full power of substitution in
the premises.
Dated:
Notice: The assignor's signature to this assignment must
correspond with the name as it appears upon the
face of the within Bond in every particular, without
alteration or any change whatever.
Signature Guaranteed:
Signature(s)must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
transferee requested below is provided.
Name and Address:
(Include information for all joint owners if the Bond is held by joint account.)
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PREPAYMENT SCHEDULE
This Bond has been prepaid in part on the date(s) and in the amount(s) as follows:
AUTHORIZED SIGNATURE
DATE AMOUNT OF HOLDER
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8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and City Clerk and be sealed with the seal of the City;
provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate
seal has been omitted. In the event of disability or resignation or other absence of either officer,
the Bonds may be signed by the manual or facsimile signature of the officer who may act on
behalf of the absent or disabled officer. In case either officer whose signature or facsimile of
whose signature shall appear on the Bonds shall cease to be such officer before the delivery of
the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if the officer had remained in office until delivery.
9. Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of Authentication on different
Bonds need not be signed by the same person. The Bond Registrar shall authenticate the
signatures of officers of the City on each Bond by execution of the Certificate of Authentication
on the Bond and by inserting as the date of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue,
which date is April 14, 2016. The Certificate of Authentication so executed on each Bond shall
be conclusive evidence that it has been authenticated and delivered under this resolution.
10. Registration; Transfer; Exchange. The City will cause to be kept at the principal
office of the Bond Registrar a bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds
and the registration of transfers of Bonds entitled to be registered or transferred as herein
provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the
City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee
or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a
like aggregate principal amount, having the same stated maturity and interest rate, as requested
by the transferor; provided, however, that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever
any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
Holder making the exchange is entitled to receive.
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•
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar,
duly executed by the Holder thereof or the Holder's attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates. The City
Administrator/Treasurer is hereby authorized to negotiate and execute the terms of said
agreement.
11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12. Interest Payment; Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth day of the calendar
month next preceding such Interest Payment Date (the "Regular Record Date"). Any such
interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of
the Regular Record Date, and shall be payable to the person who is the Holder thereof at the
close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever
money becomes available for payment of the defaulted interest. Notice of the Special Record
Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the
Special Record Date.
13. Treatment of Registered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by
notice to the contrary.
14. Delivery; Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the Administrator/Treasurer to the Purchaser upon receipt of the purchase
price, and the Purchaser shall not be obliged to see to the proper application thereof.
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15. Fund and Accounts. There is hereby created a special fund to be designated the
"General Obligation Tax Increment Refunding Bonds, Series 2016B Fund" (the "Fund") to be
administered and maintained by the Administrator/Treasurer as a bookkeeping account separate
and apart from all other funds maintained in the official financial records of the City. The Fund
shall be maintained in the manner herein specified until all of the Bonds and the interest thereon
have been fully paid. There shall be maintained in the Fund the following separate accounts:
(a) Escrow Account. The Escrow Account shall be maintained as an escrow account
with U.S. Bank National Association (the "Escrow Agent"), in St. Paul, Minnesota, which is a
suitable financial institution within or without the State. $2,543,947.91 in proceeds of the sale of
the Bonds shall along with the City's cash contribution of$1,000,000.00 be received by the
Escrow Agent and applied to fund the Escrow Account. $46,548.44 in proceeds of the sale of
the Bonds shall be applied to pay costs of issuing the Bonds. Proceeds of the Bonds, less
proceeds used to pay costs of issuance and any Bond proceeds returned to the City, are hereby
irrevocably pledged and appropriated to the Escrow Account, together with all investment
earnings thereon. The Escrow Account shall be invested in securities maturing or callable at the
option of the holder on such dates and bearing interest at such rates as shall be required to
provide sufficient funds, together with any cash or other funds retained in the Escrow Account,
(i) to pay when due the interest to accrue on the Bonds to and including the Crossover Date; and
(ii)to pay when called for redemption on the Crossover Date, the principal amount of the
Refunded Bonds. The Escrow Account shall be irrevocably appropriated to the payment of(i)
all interest on the Bonds to and including the Crossover Date, and (ii) the principal of the
Refunded Bonds due by reason of their call for redemption on the Crossover Date. The moneys
in the Escrow Account shall be used solely for the purposes herein set forth and for no other
purpose, except that any surplus in the Escrow Account may be remitted to the City, all in
accordance with an agreement, by and between the City and Escrow Agent (the "Escrow
Agreement"), a form of which is on file in the office of the City Clerk. Any moneys remitted to
the City pursuant to the Escrow Agreement shall be deposited in the Debt Service Account.
(b) Debt Service Account. To the Debt Service Account there is hereby pledged and
irrevocably appropriated and there shall be credited: (1) after the Crossover Date, all uncollected
Tax Increments from the Tax Increment District which were heretofore pledged to the payment
of the Prior Bonds; (2) any amount paid for the Bonds in excess of the minimum bid; (3) any
collections of all taxes heretofore or hereafter levied for the payment of the Prior Bonds and
interest thereon which are not needed to pay the Prior Bonds as a result of the Refunding; (4) all
investment earnings on funds in the Debt Service Account; and (5) any balance remitted to the
City upon the termination of the Escrow Agreement; (6) any and all other moneys which are
properly available and are appropriated by the governing body of the City to the Debt Service
Account. The amount of any surplus remaining in the Debt Service Account when the Bonds
and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61,
Subdivision 4.
The moneys in the Debt Service Account shall be used solely to pay the principal of and
interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. No
portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher
yielding investments or to replace funds which were used directly or indirectly to acquire higher
yielding investments, except (1) for a reasonable temporary period until such proceeds are
15
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needed for the purpose for which the Bonds were issued, and (2) in addition to the above, in an
amount not greater than the lesser of five percent of the proceeds of the Bonds or$100,000. To
this effect, any proceeds of the Bonds and any sums from time to time held in the Fund (or any
other City account which will be used to pay principal and interest to become due on the Bonds)
in excess of amounts which under the applicable federal arbitrage regulations may be invested
without regard as to yield shall not be invested in excess of the applicable yield restrictions
imposed by the arbitrage regulations on such investments after taking into account any
applicable "temporary periods" or "minor portion" made available under the federal arbitrage
regulations. In addition, the proceeds of the Bonds and money in the Fund shall not be invested
in obligations or deposits issued by, guaranteed by or insured by the United States or any agency
or instrumentality thereof if and to the extent that such investment would cause the Bonds to be
"federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue
Code of 1986, as amended (the "Code").
16. Prior Bonds; Security. Until the Crossover Date, all provisions theretofore made
for the security thereof shall be observed by the City and all of its officers and agents.
17. Original Net Tax Capacity; Tax Increments; Use of Tax Increments. The County
Auditor of Washington County has certified the original net tax capacity of property in the Tax
Increment District. The County Auditor shall determine in each year if the then current net tax
capacity of property in the Tax Increment District exceeds the original net tax capacity, and shall
calculate, in the manner provided in Minnesota Statutes, Section 469.177, Subdivision 3, the
captured net tax capacity(as defined therein) attributable to the Tax Increment District. The City
hereby determines to retain 100% of the captured tax capacity for purposes of tax increment
financing. The County Auditor shall, in each such year, compute the local tax rate to be
extended against the captured net tax capacity in the manner provided in Minnesota Statutes,
Section 469.177, Subdivision 3, and the tax generated thereby shall constitute the Tax
Increments for the year in which it is received. The County Auditor will remit to the City the
Tax Increments so received. The City hereby appropriates the Tax Increments to the Debt
Service Account, which appropriation shall continue until all of the Bonds and any additional
bonds payable from the Debt Service Account, are paid or discharged.
18. Reservation of Rights. Notwithstanding any provisions herein to the contrary, the
City reserves the right to terminate, reduce, or apply to other lawful purposes the Tax Increments
herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner
permitted by law.
19. Coverage Test. The estimated collections of Tax Increments and other revenues
herein pledged for the payment of the Bonds, will produce at least five percent (5%) in excess of
the amount needed to meet when due the principal and interest payments on the Bonds.
20. Future Tax Levies. In the event that it is anticipated that the aggregate of Tax
Increments and any other funds appropriated to and then held in the Debt Service Account and
the estimated collections of Tax Increments to be received in the next succeeding year will not be
sufficient to pay the principal and interest on the Bonds to become due in the first calendar year
after such determination and the first six months of the succeeding calendar year, the City
Council shall pass a resolution requesting the County Auditor of Washington County to levy an
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ad valorem tax in an amount as is necessary, together with the aforementioned funds then held in
the Debt Service Account and said estimated collections of Tax Increments, to pay the principal
and interest on the Bonds to become due during said period.
21. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond
should not be paid when due, it may nevertheless be discharged by depositing with the Bond
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such
deposit. The City may also discharge its obligations with respect to any prepayable Bonds called
for redemption on any date when they are prepayable according to their terms, by depositing
with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given. The City may also at any time
discharge its obligations with respect to any Bonds, subject to the provisions of law now or
hereafter authorizing and regulating such action,by depositing irrevocably in escrow, with a
suitable banking institution qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475.67, Subdivision 8,bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if
notice of redemption as herein required has been duly provided for, to such earlier redemption
date.
22. General Obligation Pledge. For the prompt and full payment of the principal of
and interest on the Bonds as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged. If the balance in the Escrow
Account or Debt Service Account is ever insufficient to pay all principal and interest then due on
the Bonds payable therefrom, the deficiency shall be promptly paid out of any other accounts of
the City which are available for such purpose, and such other funds may be reimbursed without
interest from the Escrow Account or Debt Service Account when a sufficient balance is available
therein.
23. Securities; Escrow Agent. Securities purchased from moneys in the Escrow
Account shall be limited to securities set forth in Minnesota Statutes, Section 475.67,
Subdivision 8, and any amendments or supplements thereto. Securities purchased from the
Escrow Account shall be purchased simultaneously with the delivery of the Bonds. The City
Council has investigated the facts and hereby finds and determines that the Escrow Agent is a
suitable financial institution to act as escrow agent.
24. Redemption of Prior Bonds. The Prior Bonds shall be redeemed and prepaid on
the Crossover Date, in accordance with the terms and conditions set forth in the Notice of Call
for Redemption, substantially in the form attached to the Escrow Agreement, which terms and
conditions are hereby approved and incorporated herein by reference. The Notice of Call for
Redemption shall be given pursuant to the Escrow Agreement.
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25. Escrow Agreement. On or prior to the delivery of the Bonds the Mayor, City
Clerk and Administrator/Treasurer shall, and are hereby authorized and directed to, execute on
behalf of the City an Escrow Agreement. The Escrow Agreement is hereby approved and
adopted and made a part of this resolution, and the City covenants that it will promptly enforce
all provisions thereof in the event of default thereunder by the Escrow Agent.
26. Purchase of SLGS or Open Market Securities. The Escrow Agent, as agent for
the City, is hereby authorized and directed to purchase on behalf of the City and in its name the
appropriate United States Treasury Securities, State and Local Government Series and/or open
market securities as provided in paragraph 23, from the proceeds of the Bonds, to the extent
necessary, other available funds, all in accordance with the provisions of this resolution and the
Escrow Agreement and to execute all such documents (including the appropriate subscription
form) required to effect such purchase in accordance with the applicable U.S. Treasury
Regulations.
27. Certificate of Registration. The City Clerk is hereby directed to file a certified
copy of this resolution with the County Auditor of Washington County, Minnesota, together with
such other information as the Auditor shall require, and to obtain the County Auditor's
Certificate that the Bonds have been entered in the County Auditor's Bond Register and that the
tax levy required by law has been made.
28. Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are required to show the facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
29. Negative Covenant as to Use of Proceeds and Project. The City hereby covenants
not to use the proceeds of the Bonds or to use the Project originally financed by the Prior Bonds,
or to cause or permit them to be used, or to enter into any deferred payment arrangements for the
cost of the Project, in such a manner as to cause the Bonds to be "private activity bonds" within
the meaning of Sections 103 and 141 through 150 of the Code.
30. Tax-Exempt Status of the Bonds; Rebate. The City is subject to the rebate
requirement imposed by Section 148(f) of the Code by reason of the Prior Bonds were subject to
rebate as provided in Section 148(f)(4)(D) of the Code and Section 1.148-8 of the Regulations.
31. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds
as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the
City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
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(c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for
purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax-exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2016 will
not exceed $10,000,000;
(e) not more than $10,000,000 of obligations issued by the City during this calendar
year 2016 have been designated for purposes of Section 265(b)(3) of the Code; and
(f) the aggregate face amount of the Bonds does not exceed $10,000,000.
The City shall use its best efforts to comply with any federal procedural requirements which may
apply in order to effectuate the designation made by this paragraph.
32. Supplemental Resolution. The Prior Resolution is hereby supplemented to the
extent necessary to give effect to the provisions of this resolution.
33. Continuing Disclosure. The City is the sole obligated person with respect to the
Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),
promulgated by the Securities and Exchange Commission (the "Commission")pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking(the
"Undertaking") hereinafter described to:
(a) Provide or cause to be provided to the Municipal Securities Rulemaking Board
(the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual
financial information and operating data in accordance with the Undertaking. The City reserves
the right to modify from time to time the terms of the Undertaking as provided therein.
(b) Provide or cause to be provided to the MSRB notice of the occurrence of certain
events with respect to the Bonds in not more than ten (10)business days after the occurrence of
the event, in accordance with the Undertaking.
(c) Provide or cause to be provided to the MSRB notice of a failure by the City to
provide the annual financial information with respect to the City described in the Undertaking, in
not more than ten (10)business days following such amendment.
(d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph
and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under
the covenants.
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The Mayor and City Clerk, or any other officer of the City authorized to act in their place
(the "Officers") are hereby authorized and directed to execute on behalf of the City the
Undertaking in substantially the form presented to the City Council subject to such modifications
thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii)
required by the Purchaser of the Bonds, and (iii) acceptable to the Mayor and City Clerk.
34. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
35. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
The motion for the adoption of the foregoing resolution was duly seconded by member
Junker and, after a full discussion thereof and upon a vote being taken thereon, the following
voted in favor thereof:
Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
and the following voted against the same: None
Whereupon the resolution was declared duly passed and adopted.
Adopted March 22, 2016.
Approved: 74112.1 •
Mayor
Atte ,!
City Clerk
20
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF STILLWATER
I, the undersigned,being the duly qualified and acting City Clerk of the City of
Stillwater, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing
extract of minutes with the original thereof on file in my office, and that the same is a full, true
and complete transcript of the minutes of a meeting of the City Council, duly called and held on
the date therein indicated, insofar as such minutes relate to considering proposals and awarding
the sale of$2,450,000 General Obligation Tax Increment Refunding Bonds, Series 2016B.
WITNESS my hand on March 22, 2016.
City Clerk
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STATE OF MINNESOTA COUNTY AUDITOR'S CERTIFICATE
AS TO TAX LEVY, REGISTRATION
COUNTY OF WASHINGTON AND CANCELLATION OF CERTAIN LEVIES
I, the undersigned, being the duly qualified and acting County Auditor of Washington
County, Minnesota, DO HEREBY CERTIFY that on the date hereof, there was filed in my office
a certified copy of a resolution adopted on March 22, 2016,by the City Council of the City of
Stillwater, Minnesota, authorizing the issuance of$2,450,000 General Obligation Tax Increment
Refunding Bonds, Series 2016B (the "Bonds") and levying a tax for the payment thereof,
together with full information regarding the obligations for which the tax was levied; and said
obligations have been entered in my Bond Register and the tax levy required by law has been
made.
I further certify that the tax levy made for the bonds to be refunded by the Bonds shall be
canceled to the extent and in the manner provided in the resolution.
WITNESS my hand and the seal of the County Auditor on , 2016.
County Auditor
(SEAL)
75176750
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES, 2008B
CITY OF STILLWATER, WASHINGTON COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Stillwater,
Washington County, Minnesota, there have been called for redemption and prepayment on
February 1, 2019
those outstanding bonds of the City designated as General Obligation Tax Increment Bonds,
Series, 2008B, dated as of July 1, 2008 , having stated maturity dates in the years 2020 through
2030, inclusive, and totaling $3,460,000 in principal amount and having CUSIP numbers listed
below:
Year CUSIP Number*
2020 860745 BZ 0
2022 860745 CB 2
2025 860745 CE 6
2028 860745 CH 9
2030 860745 CK 2
The bonds are being called at a price of par plus accrued interest to February 1, 2019, on which
date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment, at U.S. Bank National Association,
Attention: Paying Agent Services, 60 Livingston Avenue, St. Paul, Minnesota 55107.
Dated: March 22, 2016 BY ORDER OF THE CITY COUNCIL
/s/Diane Ward, City Clerk
*The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely for
the convenience of the holders.
A-1
7517675v1
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul,MN 55101-2887
Springsted Tel: 651-223-3000
Fax: 651-223-3002
Email: advisors@springsted.com
$2,575,OOO(a) www.springsted.com
CITY OF STILLWATER, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2016B
(BOOK ENTRY ONLY)
AWARD: STIFEL, NICOLAUS &COMPANY, INCORPORATED
SALE: March 22, 2016 Moody's Rating: Aa2
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
STIFEL, NICOLAUS &COMPANY, 3.00% 2020-2026 $2,725,404.80(b) $424,032.35(b) 1.7831%(b)
INCORPORATED 2.00% 2027-2029
2.125% 2030
PIPER JAFFRAY&CO. 3.00% 2020-2026 $2,740,856.90 $430,030.81 1.7994%
2.00% 2027-2028
2.25% 2029
2.50% 2030
(a) Subsequent to bid opening, the issue size decreased from$2,575,000 to$2,450,000.
(b) Subsequent to bid opening, the price, net interest cost, and true interest rate have changed to$2,590,496.35, $410,284.70, and
1.7924%,respectively.
Public Sector Advisors
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
ROBERT W. BAIRD &COMPANY, 2.00% 2020-2028 $2,627,390.55 $435,301.05 1.8585%
INCORPORATED 2.25% 2029
C.L. KING &ASSOCIATES 2.50% 2030
CRONIN &COMPANY, INC.
VINING-SPARKS IBG,
LIMITED PARTNERSHIP
EDWARD D. JONES &COMPANY
SAMCO CAPITAL MARKETS, INC.
COASTAL SECURITIES L.P.
WNJ CAPITAL
CREWS &ASSOCIATES
DAVENPORT &COMPANY LLC
DUNCAN-WILLIAMS, INC.
ROSS, SINCLAIRE &ASSOCIATES, LLC
DOUGHERTY&COMPANY LLC
LOOP CAPITAL MARKETS, LLC
COUNTRY CLUB BANK
OPPENHEIMER&CO. INC.
SUMRIDGE PARTNERS
R. SEELAUS &COMPANY, INC.
SIERRA PACIFIC SECURITIES
ISAAK BOND INVESTMENTS, INC.
ALAMO CAPITAL
IFS SECURITIES
RAFFERTY CAPITAL MARKETS
FIRST EMPIRE SECURITIES
UMB BANK, N.A.
W.H. MELL ASSOCIATES
WAYNE HUMMER INVESTMENTS LLC
NORTHLAND SECURITIES, INC. 2.00% 2020-2027 $2,646,172.00 $438,969.46 1.8643%
2.50% 2028-2030
FTN FINANCIAL CAPITAL MARKETS 2.00% 2020-2024 $2,742,542.20 $449,522.04 1.8713%
4.00% 2025-2027
2.00% 2028
2.25% 2029-2030
RAYMOND JAMES &ASSOCIATES, INC. 2.00% 2020-2023 $2,768,201.55 $458,762.76 1.8982%
3.00% 2024
4.00% 2025-2027
2.00% 2028
2.50% 2029-2030
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
CITIGROUP GLOBAL MARKETS, INC. 2.00% 2020-2028 $2,617,484.30 $445,207.30 1.9052%
CANTOR FITZGERALD & CO. 2.25% 2029
2.50% 2030
MORGAN STANLEY&CO. INC. 3.00% 2020-2022 $2,628,011.36 $543,704.61 2.3199%
2.00% 2023-2026
2.25% 2027
3.00% 2028-2030
REOFFERING SCHEDULE OF THE PURCHASER
Rate Year Yield
3.00% 2020 0.95%
3.00% 2021 1.10%
3.00% 2022 1.20%
3.00% 2023 1.35%
3.00% 2024 1.45%
3.00% 2025 1.63%
3.00% 2026 1.73%
2.00% 2027 1.83%
2.00% 2028 1.93%
2.00% 2029 2.03%
2.125% 2030 2.125%
BBI: 3.40%
Average Maturity: 8.966 Years