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HomeMy WebLinkAboutResolution No. 2017-129 G.O. Bonds Series 2017C CERTIFICATION OF MINUTES RELATING TO $8,955,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2017C Issuer: City of Edina, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held on November 21, 2017, at 7:00 p.m., at the City Hall in Edina, Minnesota. Members present: Brindle, Fischer, Staunton, Stewart, Hovland Members absent: None Documents Attached: Minutes of said meeting (including): RESOLUTION NO. 2017-129 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $8,955,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2017C I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 21 st day of November, 2017. P 1 De ra Mangen, City Clerk 4851-3257-9924\3 It was reported that eight (8)proposals had been received prior to 11:00 a.m., Central Time, on November 21, 2017, for the purchase of the $8,955,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2017C of the City in accordance with the Official Statement distributed by the City to potential purchasers of the Bonds. The proposals have been read and tabulated, and the terms of each have been determined to be as follows: [See Attached] 4851-3257-9924\3 EHLE- BIQ TABULATION LEADERS IN PUBLIC FINAKE $9,480.000-General Obligation Capital Improvement Plan Refunding Bonds, Series 20170 City of Edina, Minnesota SALE: November 21,2017 AWARD: BAIRD Rating:-Moodv's Investor's Service"Aaa' Z5 S&P Global Ratings"AAA" BBI.3.52% Bank Qualified. .\7F T TRL7E NL.kT7LTJTY KFOFFERINC, n7EREST LTA-=ST .N.-I-NEE Of BIDDER (February 1) FL-ITE HELD PRICE COST KITE B,URD 510,123,762-15 51t239.779.88 1.987200 Milwaukee.kk'i>cotrm 2019 4.040S," 1.250% C.L.King&Assaciatess W1,1BE 2020 4M0% 1.350% Dougherty&Company,LLC 2021 4-000% 1-4500jo Firing-Sparks IBG, Limited 2022 4-G00% 1.550% Partnership 2023 4.04090 1.650% Edward Jones 1-024 4.000% 1.750% Fidelity y Capital Matken 2025 460V's 1.550% SAMCO Capital Markets 7026 4.000% 1.950% «1111 Capital 1027 2,050% 1050% Civwr&- —'zuKLaceInc. 1028 2-150% 2.150% Da-.w.port&Co.L.L.C. 1029 2-2.50% 2.250% Duncan-Wfflxam,Inc Koss.Smdaue& krsociates,LLC Loop Capital Markets Betuwdi Secuntes,Inc. Cc,Lmwv Club Baal Oppenheimer&Co. SumRLdge Paymerr R.See lair,S,Compmy.,Inc Swim Pacific Securities haak Bond Investwnts,Inc :awo C apiral W11BE IFS Senuaries First Empire Seca hies LTNIB Bank.N.A. W.H..'Nfell Asrocutes Wayne'Humtme3 S.,Co. RMS Bon&�Inc. Central:Stases Capital Market-, Midti-Bank Securities Inc. First Southeau Sectuitief. Subsequent to bid opening the issue size was decreased to$8.955,000. Adjusted Price - 59,558,145.50 Adjusted Net Interest Cost- $1,206.763.64 Adjusted TIC- 1,9961% 4851-3257-9924\3 NT-T TRUE NUMMITY REOFFERING INTEREST IN-TEREST NA-NIF OF BIDDER (Februan-11 RATE YIELD PRICE COST RATE RAYMOND JAN ES& 510.116,927.45 51,2746,614.59 1.9990%, ASSOCLATES,INC. Memphis.Tenresee 2019 4,000% 2020 4M00,0' 2021. 4,.000% 2022 4.00(r,-m 2023 4..000'% 2024 4,.600!,* 2025 4-0000,4 2026 4.000*,'� 2027 2.050°"O' 2029 2.2500,: FTS FIN CAPITAL 99,741,904.43 $1250,003.30 2.0471% UARKETS Me=phi%Tennessee 2019 4MOt4i 2020 3.000414 2021 3MV4 2022 3M004 2023 10001/9 2024 3.0001,'� 2025 2-00M* 2026 3-00014 2027 2.05c% ')11 5 G% 2028 2029 1250% PIPER JAFFRAY 99,97716,396.65 S1,309,383.35 2.1005% 1�fimwsota 2019 3.000% 2020 3-0000,•: 2021 3.000e 2022 3.000% 2023 3.000% 2024 3M0",4 2025 3.00(M0 2026 3-000% 2027 3.O0G% 2028 3-0004,,0 2029 3,000% AQ, Bid Tabulation November 21, 2017 City of Edina..Minnesota 59,480,000*General Obligation Capital Improvement Plan Refunding Bonds,Series 20170 Page 2 4851-3257-9924\3 NET TRUE '.\LA,T"L'R1T1' REOFFERING IINTEREST LN-TEREST ME OF BIDDER (February 1) RATE YIELD PRIC E COST KATE NORTHLAND SEC17RITTES,INC.. $9,782,600-35 $1,292.602.10 2.1094',Io 2019 3.00040 2020 3-000°*' 2021 3.000% 2022 3.000010 2023 3.00V'1� 2024 3.00040 2025 3,00 V0, 2076 3-000% 2027 2.125% 2028 2.25046 20'•9 2.375% WELLS FARGO B—ANY-NATIONAL S91.759.317.54 S1.328.6712.12 2.1709% SSOCL-ITION Ch.u;otte-,North Carolina 2019 3.000% 2020 3,000% 1071 3.00004 20„ 3.000% 2023 1.000% 2024 3.000"'6 2025 3.000°/o 2026 3.07040 20272.1-1 5% 2025 -2 J C% loi9 50G%' MORG.4-N ST.-'.Nu St CO,LLC $101.7671.393.59 51,437fi77.66 2.1975% Nev.,Yaik.New Ym-k- 2019 5,00014 2020 5.00040 2021 5.00V0 4 2 022 2 5.000010 2023 5-0000,0 2 01 ' -4 5tO6 2025 5..00V.14 2026 5..00046 2027 4-0004,'* 2028 4.G000-0 2029 4.0004. Bid Tabulation November 21,2017 Cite of Him,Minnesota 59,480,000'General Obligation Capital Improvement Plan Refunding Bonds,Series 20170 Page 3 4851-3257-9924\3 NET TRUE Vii_ TYRITY REOFFERING INTEREST r\-rEMST NAAfE OF BIDDER 1) RATE YIELD PRICE COST RATE SU.=UST ROBI14SON $9,905,614.20 $1,377J65M 2.2196% HLNIPHREV- Nashville.Tenw--,.ee 2019 3.000%' 2020 3MOS0 2021 3.000% 2022 3. M9 2023 3-000°;: 2024 3-GO0k0 2025 3.000014 2026 3..CIO(N 2027 3-000°.0 2025 3.0000119, 2029 3.00000 Bid Tabulation Nov,ember 21, 2 017 City of Edina,Minnesota 59-490,000* General Obligation Capital Improvement Plan Refunding Bonds, Series 2017C Page 4 4851-3257-9924\3 Councilmember Staunton introduced the following resolution and moved its adoption: RESOLUTION NO. 2017-129 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $8,955,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2017C BE IT RESOLVED by the City Council (the "Council") of Edina, Minnesota, (the "City"), as follows: Section 1. Authorization and Sale. 1.01. Authorization of Bonds. This Council hereby determines that it is in the best interest of the City to issue its $8,955,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2017C (the "Bonds"), for the purpose of refunding in advance of maturity and prepaying on February 1, 2018 (the "Redemption Date") the 2019 through 2030 maturities, aggregating $8,955,000 in principal amount, of the City's General Obligation Capital Improvement Bonds, Series 2009A, dated, as originally issued, as of April 29, 2009 (the "Refunded Bonds"). The refunding of the Refunded Bonds is being carried out for the purposes described in Minnesota Statutes, Section 475.67, subdivision 3, subsection (b)(2)(i) and in compliance with Minnesota Statutes, Chapter 475. This Council hereby determines to issue and sell the Bonds to defray the expense incurred and estimated to be incurred by the City in refunding the Refunded Bonds, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65. 1.02. Sale of Bonds. The City has retained Ehlers &Associates, Inc., as an independent municipal advisor to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph(9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Official Statement for the Bonds, proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The most favorable proposal received is that of Robert W. Baird& Co. Incorporated of Milwaukee, Wisconsin ("Purchaser"), to purchase the Bonds at a price of$9,558,145.50, plus accrued interest in the amount of$0, the Bonds to bear interest at the rates set forth in Section 2.01. The proposal is hereby accepted, and the Mayor and the City Manager are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. The Purchaser's good faith deposit shall be retained and deposited by the City until the Bonds have been delivered and shall be deducted from the purchase price paid at settlement. 1.03. Performance of Requirements. All acts, conditions and things that are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for this Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 4851-3257-9924\3 Section 2. Bond Terms; Registration; Execution and Delivery. 2.01. Maturities; Interest Rates; Denominations; Payment. The Bonds shall be designated General Obligation Capital Improvement Plan Refunding Bonds, Series 2017C; shall be originally dated as of December 14, 2017; shall be in the denomination of$5,000 each, or any integral multiple thereof; shall mature on February 1 in the respective years and amounts stated below; and shall bear interest computed on the basis of a 360-day year composed of twelve 30- day months from the date of issuance until paid or duly called for redemption at the respective annual rates set forth opposite such years and amounts, as follows: Year Amount Rate Year Amount Rate 2019 $630,000 4.000% 2025 $850,000 4.000% 2020 700,000 4.000 2026 885,000 4.000 2021 725,000 4.000 2027 920,000 2.050 2022 755,000 4.000 2028 935,000 2.150 2023 785,000 4.000 2029 955,000 2.250 2024 815,000 4.000 The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar for the Bonds appointed herein, provided that, so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 2.02. Interest Payment Dates. Upon initial delivery of the Bonds and upon any subsequent transfer or exchange pursuant to Section 2.03, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable on each February 1 and August 1, commencing August 1, 2018, to the owner of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re ig ster. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one 4851-3257-9924\3 or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. 4851-3257-9924\3 (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. 0) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.04. Appointment of Initial Re isg tray. The City hereby appoints U.S. Bank National Association of St. Paul, Minnesota, as the initial Registrar. The Mayor and City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove any Registrar upon at least thirty (30) days' notice and upon the appointment and acceptance of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar. On or before each principal or interest due date, without further order of this Board, the City Clerk shall transmit to the Registrar from the Bond Fund described in Section 4.01 hereof, moneys sufficient for the payment of all principal and interest then due. 2.05. Redemption. Bonds maturing in the year 2027 and thereafter shall be subject to call for prior redemption at the option of the City, in whole or in part, in such order as the City shall determine and by lot as to Bonds having the same maturity date, on February 1, 2026, and any date thereafter, at the price of par plus accrued interest as of the date of redemption. The City Finance Director shall cause notice of the call for redemption thereof to be published if and as required by law and not more than sixty (60) and not fewer than thirty (30) days prior to the designated redemption date, shall cause notice of the call for redemption to be mailed by first-class mail to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2.03 hereof, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. The notice of redemption shall specify the redemption date, redemption price, the numbers, interest rates and CUSIP numbers of the Bonds to be redeemed and the place at which the Bonds are to be surrendered for payment, which is the principal office of the Registrar. Official notice of redemption having been given as aforesaid, the Bonds or portions thereof so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions thereof shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding. Bonds in a denomination larger than $5,000 may be redeemed in part in any integral multiple of$5,000. The owner of any Bond redeemed in part shall receive without charge, upon surrender of such Bond to the Registrar, one or more new Bonds of such same series in 4851-3257-9924\3 authorized denominations equal in principal amount to the unredeemed portion of the Bond so surrendered. 2.06. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the City Finance Director and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that said signatures may be printed, engraved, or lithographed facsimiles of the originals. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Finance Director shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.07. Form of Bonds. The Bonds shall be typed or printed in substantially the form attached hereto as Exhibit A. 2.08. Securities Depository. (a) For purposes of this section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter pursuant to which the sender agrees to comply with DTC's Operational Arrangements. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be 4851-3257-9924\3 registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever, and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements, 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 interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e)hereof. (d) The execution and delivery of the Representation Letter to DTC by the Mayor or City Manager, if not previously filed with DTC, is hereby authorized and directed. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. 4851-3257-9924\3 In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. Section 3. Use of Proceeds. Upon payment for the Bonds by the Purchaser, the City Finance Director shall deposit and apply the proceeds of the Bonds as follows: (a) $9,480,000 shall be deposited with the paying agent for the Refunded Bonds for redemption thereof on the Redemption Date; (b) $75,200.00 shall be used to pay issuance expenses of the Bonds; and (c) $2,945.50 shall be deposited in the Bond Fund created pursuant to Section 4.01 hereof. Section 4. Security Provisions. 4.01. General Obligation Capital Improvement Plan Refunding_Bonds, Series 2017C, Bond Fund. The Bonds shall be payable from a separate General Obligation Capital Improvement Plan Refunding Bonds, Series 2017C Bond Fund (the "Bond Fund"), which the City agrees to maintain until the Bonds have been paid in full. If the money in the Bond Fund should at any time be insufficient to pay principal and interest due on the Bonds, such amounts shall be paid from other moneys on hand in other funds of the City, which other funds shall be reimbursed therefor when sufficient moneys become available in the Bond Fund. The money on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. Into the Bond Fund shall be paid: (a) ad valorem taxes levied and collected in accordance with the provisions of Section 4.02 hereof, and (b) any other funds appropriated by the Council for the payment of the Bonds. 4.02. Ad Valorem Taxes. The full faith and credit and taxing powers of the City are irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds as the same become respectively due. In order to produce aggregate amounts not less than five percent(5%) in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City, the taxes to be levied and collected in the following years and amounts: Lev- Years Collection Years Amount SEE ATTACHED SCHEDULE This tax shall be irrevocably appropriated to the Bond Fund as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61. 4851-3257-9924\3 Section 5. Defeasance. When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the 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 Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date 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 Registrar on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notice of such redemption has been duly given as provided herein. 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 bank or trust company qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal, interest and redemption premiums to become due thereon to maturity or said redemption date. Section 6. Registration, Certification of Proceedings, Investment of Money, Arbitrage and Official Statement. 6.01. Registration. The City Clerk is hereby authorized and directed to file a certified copy of this resolution in the records of the County Auditor of Hennepin County, together with such additional information as is required, and to obtain a certificate that the Bonds have been duly entered upon the County Auditor's bond register and the tax required by law has been levied. 6.02. Certification of ProceediM. The officers of the City and the County Auditor of Hennepin County are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel to the City, 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 may be required to show the facts relating to the legality and marketability of the Bonds, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the City as to the correctness of all statements contained therein. 6.03. Covenant. The City covenants and agrees with the registered owners of the Bonds, that it will not take, or permit to be taken by any of its officers, employees or agents, any action which would cause the interest payable on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code") and Regulations promulgated thereunder(the "Regulations") as are enacted or promulgated and in effect on the date of issuance of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become includable in gross income of the recipient under the Code and the Regulations. The facilities refinanced by the Bonds shall at all times during the term of the Bonds be owned and maintained by the City and the City shall not enter into any 4851-3257-9924\3 lease, use agreement, management agreement, capacity agreement or other agreement or contract with any nongovernmental person relating to the use of the facilities financed by the Bonds, or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or"private loan bonds" pursuant to Section 141 of the Code. 6.04. Arbitrage Certification. The Mayor and the City Manager, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certification in accordance with the provisions of Section 148 of the Code, and the Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. 6.05. Arbitrage Rebate. The City acknowledges that the Bonds are subject to the rebate requirements of Section 148(f) of the Code. The City covenants and agrees to retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(f) and applicable Regulations, unless the Bonds qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section 1.148-7 of the Regulations and no "gross proceeds" of the Bonds (other than amounts constituting a"bona fide debt service fund") arise during or after the expenditure of the original proceeds thereof. 6.06. Qualified Tax-Exempt Obligations. The City hereby determines that the portion of the Bonds that is equal to or less than the outstanding principal amount of the Refunded Bonds, $8,955,000, is deemed designated as "qualified tax-exempt obligations" as provided in Section 265(b)(3)(D) of the Code, since: (a) the Refunded Bonds, when issued, were designated by the City as qualified tax-exempt obligations under Section 265(b) of the Code; (b) the aggregate face amount of the issue of which the Bonds are a part does not exceed $10,000,000; (c) the weighted average maturity of the Bonds does not exceed the remaining weighted average maturity of the Refunded Bonds; and (d) no Bond has a maturity date which is later than thirty (30) years after the date of issuance of any bonds refunded by the Refunded Bonds which were designated as qualified tax-exempt obligations. 6.07. Official Statement. The Preliminary Official Statement relating to the Bonds, dated November 9, 2017, prepared and distributed on behalf of the City by Ehlers & Associates, Inc., is hereby approved. Ehlers & Associates, Inc., is hereby authorized on behalf of the City to prepare and distribute to the Purchaser a Final Official Statement listing the offering price, the interest rates, other information relating to the Bonds required to be included in the Official Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. Within seven business days from the date hereof, the City shall deliver to the Purchaser a reasonable number of copies of the Official Statement and such 4851-3257-9924\3 supplement. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. Section 7. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before twelve months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2017, the following financial information and operating data in respect of the City (the Disclosure Information): (A) the audited financial statements of the City for such fiscal year, prepared in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect 4851-3257-9924\3 thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph(A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: "VALUATIONS—Current Property Valuations," "DEBT— Direct Debt," and "TAX RATES, LEVIES AND COLLECTIONS—Tax Levies and Collections" and "GENERAL INFORMATION—US Census Data-Population Trend" and "—Employment / Unemployment Data," which information may be unaudited. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been filed with the SEC or have been made available to the public on the Internet Web site of the Municipal Securities Rulemaking Board (MSRB). If the document incorporated by reference is a final official statement, it must be available from the MSRB. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of any of the following events (each a Material Fact): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults, if material; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue 4851-3257-9924\3 (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; (G) Modifications to rights of security holders, if material; (H) Bond calls, if material, and tender offers; (1) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities, if material; (K) Rating changes; (L) Bankruptcy, insolvency, receivership or similar event of the obligated person; (M) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (N) Appointment of a successor or additional trustee or the change of name of a trustee, if material. As used herein, for those events that must be reported if material, an event is "material" if it is an event as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, an event is also "material" if it is an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; 4851-3257-9924\3 (B) the amendment or supplementing of this section pursuant to subsection(d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. (1) The City agrees to make available to the MSRB, in an electronic format as prescribed by the MSRB from time to time,the information described in subsection (b). (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term; Amendments; Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence,however,the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section(and the form and requirements of the Disclosure Information)may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances 4851-3257-9924\3 (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause(i)(a)and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. Section 8. Redemption of Refunded Bonds. The City Finance Director is hereby directed to advise U.S. Bank National Association, St. Paul, Minnesota, as paying agent for the Refunded Bonds, to call such bonds for redemption and prepayment on the Redemption Date, and to give thirty days mailed Notice of Redemption (in the form attached to this resolution), all in accordance with the provisions of the resolutions authorizing the i s ance of such bonds. Adopted this 21 st day of November, 2017. Mayor Attest: City Clerk 4851-3257-9924\3 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Stewart and upon vote being taken thereon, the following voted in favor thereof: Member Brindle, Member Fischer, Member Staunton, Member Stewart, and Mayor Hovland and the following voted against the same: none whereupon said resolution was declared duly passed and adopted. 4851-3257-9924\3 PROJECTED LEVIES TAX LEVY CALCULATION Issue ID# 331114 City of Edina,MN Dated Date: 12/14f2017 $8,955,000 General Obligation Capital Improvement Plan Call Date: 2/1/2026 Refunding Bonds,Series 2017C Tax Tax Bond Total P&I Funds Available P & 1 @0 10 5 OA Net Levy Levy collect Pay (1) YpAr Year yp;br 2017 J 2018 f 2019 976,232,64 (2,945.50) 1,021,951.50 1,021,951.50 2018 J 2019 f 2020 981,050.00 1,030,102.50 1,030,102.50 2019 J 2020 f 2021 978,050.00 1,026,952.50 1,026,952.50 2020 J 2021 2022 979,050.00 1,028,002.50 1,028,002.50 2021 J 2022 2023 978,950.00 1,027,792.50 1,027,792.50 2022 J 2023 f 2024 977,450.00 1,026,322.50 1,026,322.50 2C23 J 2024 f 2025 979,850.00 1,028,842.50 1,028,842.50 2024 J 2025 f 2.026 990,850.00 1,029,892.50 1,029,892.50 2025 J 2026 f 2027 990,450.00 1,029,472.50 1,029,472.50 2026 J 2027 f 2028 976,590.00 1,025,419.50 1,025,419.50 2027 J 2028 2029 976,487.50 1,025,311.88 1,025,311.98 Totals 10,764,910.14 (2,945.50) 11,300,062.87 11,300,062.87 (1) The following funds are available to pay a portion of the interest payment due August 1, 2018: Contingency: 2,945.50 Notes: Original tax levies for collection years 2019 through 2029 on the Series 2009A Bonds will be cancelled. 4851-3257-9924\3 NOTICE OF REDEMPTION General Obligation Capital Improvement Plan Bonds, Series 2009A, Dated as of April 29, 2009 City of Edina, Minnesota NOTICE IS HEREBY GIVEN THAT there have been called for redemption and prepayment on February 1, 2018, all outstanding Bonds of the above referenced issue maturing February 1 in the following years and having the interest rates and CUSIP numbers listed below: Interest CUSIP Interest CUSIP Year Amount Rate Number* Year Amount Rate Number* 2019 $645,000 3.100% 280605 S31 2025 $790,000 4.000% 280605 S98 2020 665,000 3.300 280605 S49 2026 825,000 4.125 280605 T22 2021 685,000 3.450 280605S56 2027 860,000 4.250 280605 T30 2022 710,000 3.600 280605S64 2028 895,000 4.300 280605 T48 2023 735,000 3.750 280605S72 2029 935,000 4.350 280605 T55 2024 760,000 3.900 280605S80 2030 975,000 4.400 280605 T63 *The Registrar shall not be responsible for the selection or use of the CUSIP numbers, nor is any representation made as to their correctness indicated in this Notice of Redemption or on any Bond. They are included solely for convenience of the Holders. Denotes full call of CUSIP. The Bonds will be redeemed at a price of 100% of their principal amount plus accrued interest to the date of redemption. Holders of the Bonds should present them for payment to U.S. Bank National Association, St. Paul, Minnesota, on or before said date, when they will cease to bear interest, in the following manner: If by Mail: If by Hand or Overnight Mail: U.S. Bank National Association U.S. Bank National Association Corporate Trust Services Corporate Trust Services P.O. Box 64111 111 Fillmore Avenue East St. Paul, MN 55164-0111 St. Paul, MN 55107 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. The Registrar shall not be responsible for the selection of or use of the CUSIP number, nor is any representation made as to its correctness indicated in this Notice of Redemption. It is included solely for the convenience of the Holders. 4851-3257-9924\3 Additional information may be obtained from the undersigned or from Ehlers & Associates, Inc., 3060 Centre Pointe Dr, Roseville, MN 55113 (800.552.1171). Dated: November 21, 2017 BY ORDER OF THE CITY COUNCIL, EDINA, MINNESOTA By Debra Mangen, City Clerk COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION AND TAX LEVY The undersigned, being the duly qualified and acting County Auditor of Hennepin County, Minnesota, hereby certifies that there has been filed in my office a certified copy of a resolution duly adopted on November 21, 2017, by the City Council of Edina, Minnesota, setting forth the form and details of an issue of$8,955,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2017C, dated as of December 14, 2017. 1 further certify that said Bonds have been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of 2017. County Auditor (SEAL) 4851-3257-9924\3 EXHIBIT A BOND FORM UNITED STATES OF AMERICA STATE OF MINNESOTA HENNEPIN COUNTY CITY OF EDINA, MINNESOTA GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN REFUNDING BONDS, SERIES 2017C R- $ Interest Rate Maturity Date Date of Original Issue CUSIP No. _% February 1, 20_ December 14, 2017 REGISTERED OWNER: CEDE&CO. PRINCIPAL AMOUNT: DOLLARS THE CITY OF EDINA, MINNESOTA (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner named above, or registered assigns, the principal sum specified above on the maturity date specified above, and to pay interest thereon from the date of original issue specified above, or the most recent interest payment date to which interest has been paid or provided for, at the annual rate specified above, payable on February 1 and August 1 in each year, commencing August 1, 2018 (each such date, an "Interest Payment Date"), to the person in whose name this Bond is registered at the close of business on the 15th day(whether or not a business day)of the month immediately preceding the payment date, all subject to the provisions referred to herein with respect to redemption of the principal of this Bond before maturity. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft of U.S. Bank National Association in St. Paul, Minnesota,as Bond Registrar,Transfer Agent and Paying Agent(the"Registrar"), or its designated successor under the resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged.This Bond is one of an issue in the aggregate principal amount of$8,955,000,all of like date and tenor,except as to serial number, maturity date, interest rate, redemption privilege and denomination issued pursuant to a resolution adopted by the City Council on November 21, 2017 (the "Resolution"), to refinance certain outstanding obligations of the City, and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes,Chapter 475. The Bonds are issuable only as fully registered bonds in denominations of$5,000 or any multiple thereof, of single maturities. The Bonds shall not be subject to optional redemption prior to their stated maturities, except that Bonds maturing in the year 2027 and thereafter shall be subject to call for prior redemption at the option of the City, in whole or in part, in such order as the City shall determine and by lot as to Bonds having the 4851-3257-9924\3 same maturity date, on February 1, 2026, and any date thereafter, at the price of par plus accrued interest as of the date of redemption. At least thirty days prior to the date set for redemption of any Bond,the City Finance Director shall cause notice of the call for redemption to be published as required by law and mailed by first-class mail to the Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the bond register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid,the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price herein specified and from and after such date(unless the City shall default in the payment of the redemption price)such Bonds or portions of Bonds shall cease to bear interest. Upon the partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge,representing the remaining principal amount outstanding. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede&Co.,as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository,the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede &Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. The Bonds have been designated by the City as "qualified tax-exempt obligations" pursuant to Section 265(b)of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED,RECITED,COVENANTED AND AGREED that all acts,conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required;that prior to the issuance hereof,the City Council has by the resolutions approving the issuance of the Bonds covenanted and agreed to levy ad valorem taxes on all taxable property within the City; that such ad valorem taxes are estimated to be collectible for the years and in amounts sufficient to produce sums not less than five percent in excess of the principal of and interest on the Bonds when due, and that the City has appropriated such ad valorem taxes to the payment of such principal and interest; that if necessary for payment of such principal and interest, further ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; and that the 4851-3257-9924\3 issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution described herein until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF,the City of Edina,Minnesota, by its City Council,has caused this Bond to be executed by the signatures of the Mayor and the City Manager and has caused this Bond to be dated as of the date set forth below. CITY OF EDINA, MINNESOTA (Facsimile Signature) (Facsimile Signature) City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: U.S. BANK NATIONAL ASSOCIATION St. Paul, Minnesota, as Bond Registrar By Authorized Representative 4851-3257-9924\3 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 the applicable laws or regulations: TEN COM --as tenants in common UTMA ............. as Custodian for .............. (Cust) (Minor) TEN ENT--as tenants by the entireties under Uniform Transfers to Minors Act............ (State) JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, 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 enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution"meeting the requirements of the Registrar,which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: 4851-3257-9924\3