REQUEST FOR COUNCIL ACTION AGENDA ITEM

Transcription

1 June 15, 2015 DATE ORIGINATING DEPT Finance REQUEST FOR COUNCIL ACTION AGENDA ITEM Award Sale of Road Reconstruction Bonds AMENDED 3P AGENDA ITEM CITY ADMINISTRATOR APPROVAL PREVIOUS ACTIONS: Council, at their April 6, 2015 meeting, adopted Resolution No ordering Rosemary Woods/Highpointe Hill/Tuckaweye Area Street Rehabilitation Project No and adopting the special assessment against benefited lands, ordering plans, approving plans and authorizing advertisement for bids. Council, at their April 6, 2015 meeting, adopted Resolution No ordering Timber Bay/Rolling Prairie/Steven Meyer Area Street Rehabilitation Project No and adopting the special assessment against benefited lands, ordering plans, approving plans, and authorizing advertisement for bids. Council, at their May 4, 2015 meeting, adopted Resolution No accepting bid for Rosemary Woods/Highpointe Hill/Tuckaweye Area Street Rehabilitation Project No and Timber Bay/Rolling Prairie/Steven Meyer Area Street Rehabilitation Project No Council, at their May 18, 2015 meeting, adopted Resolution No setting June 15, 2015 as the date to issue and sell approximately $3,700,000 General Obligation Road Reconstruction Bonds, Series 2015A. RECOMMENDED COUNCIL ACTION: Motion to adopt Resolution No , A Resolution providing for the sale of $3,700,000 General Obligation Road Reconstruction Bonds, Series 2015A, fixing the form and specifications thereof, providing for their execution and delivery, and providing for their payment. COMMENTS: The City will be issuing bonds this year to finance the current road reconstruction projects. The City currently has the Rosemary Woods/Highpointe Hill/Tuckaweye Area and Timber Bay/Rolling Prairie/Steven Meyer Area street reconstruction projects under contract with a total project cost of approximately $3,700,000. Proceeds from special assessments and the City s Road Reconstruction Fund will be used for the annual debt service. The bonds will mature in 2031 and will be callable in 9 years.

2 Springsted will receive bids at 10:00 am on Monday, June 15 and a bid tabulation will be available at the council meeting. The resolution will be completed once the successful bidder is known and the actual interest rate for each year can be inserted in the resolution. A copy of the final resolution will be available at the council meeting. Standard & Poor s affirmed the City s AAA bond rating for this issue. Sprinsted received bids at 10:00 am on Monday, June 15 th. The bid tabulation for the General Obligation Road Reconstruction Bonds, Series 2015A is attached indicating the low bid came from Raymond James & Associates at a true interest rate of 2.31%, slightly higher than Springsted s preliminary estimate, but approximately the same rate as the bonds the city issued in December, 2014.

3 Extract of Minutes of Meeting of the City Council of the City of Maple Grove Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Maple Grove, Minnesota, was duly held at the City Hall in the City, on Monday, June 15,2015, at 7:30 o'clock P.M. The following members were present: and the following were absent: * * * * * * * * * The Mayor announced that the meeting was convened for the purpose of considering proposals for the purchase of $3,550,000 General Obligation Road Reconstruction Bonds, Series 2015A. * * * * * * * * * The City Clerk then presented the proposals received prior to 10:00 0' clock A.M. pursuant to the Terms of Proposal for the General Obligation Road Reconstruction Bonds, Series 2015A. These were examined and found to be as follows:

4 D Springsted ~ 1nco!pOl'aletj 380 JacksarI Sftet Sui1e 300 Sai!It Paul, MN 55lCl Tel: Fax: Emai':~com _.~com $3,l00,OooM CITY Of MAPLE GROVE. MINNESOTA GENERAl OBUGATION ROAD RECONSTRUCTION BONOS. SERIES 2015A (BOOK ENTRY ONLy) AWARD: RAYMOND JAMES & ASSOCIATES. INC. SAlE: June 15, 2015 Standard & Poor's Rating: AM Bidder RAYMOND JAMES & ASSOCIATES, INC. FTN FINANCIAL CAPIT At MARKETS PIPER JAfFRAY & CO. Interest Net Interest True Interest Rates Price Cost Rate 2.00% $3,820,101.30<bJ 5770, (bj 22975%{b) 3.00% % % % % % % ,716, , % 2.25% % % % % % $3,828, , % 2.50'% % % % % 2031 (a) Subsequent to bid opening, the iss-ue size deaeafjed 110m $3,700,000 to $3,550,000. {b} Subsequent to bid opening, the prioe, net ~ cost, and ITue intereat rate have changed to $3,663,935.74, $758,540.21, and , respectively. PubliC Sector AdVISOrs 2

5 Interest Net Interest True Interest Bidder Rates Price Cost Rate ROBERT W. BAIRD &. COMPANY, 2.00% $3,779, $817, % incorporated 3.00% C.L KING &. ASSOC1ATES 225% 2025 CRONIN &. COMPANY, inc. 2.50% 2026 VINING-SPARKS IBG, 3.00% UMITED PARTNERSHIP LOOP CAPITAL MARKETS, LLC EDWARD D. JONES &. COMPANY WNJ CAPITAL CREWS &. ASSOCIATES CASTlEOAK SECURITIES, LP. DAVENPORT &. COMPANY LLC DUNCAN-WILLIAMS, INC. ROSS, SINClAIRE &. ASSOCIATES, LtC DOUGHERTY &. COMPANY LLC COUNTRY CLUB BANK OPPENHE!MER &. CO. INC. SUMRiDGE PARTNERS R. SEELAUS &. COMPANY, INC. SiERRA PACIFIC SECURITIES ALAMO CAPITAL ISAAK BOND INVESTMENTS, INC. IFS SECURITIES SUNTRUST ROBINSON HUMPHREY, INC. 3.00% ,769, $819, % BANK OF OKLAHOMA 2.00% STIFEL, NICOLAUS &. COMPANY, 2.10% 2024!NCORPORATED 2.20% % SMO CAP!! At MARKETS GKST INC. 2.00% ,798, $832, % 3.00% % % NORTHLAND SECURITIES, INC. 2.00% $3,734, $828, % 2.50% %

6 REOf=FERING SCHEDULE OF THE PURCHASER Rate Year Yield 2.00% % 2.00% % 2.00% % 3.00% % 3.00% % 3.00% % 3.00% % 3.00% % 2.211% 2025 Par 2.40% 2026 Par 2.50% % 2.50% % 2.75% % 3.00% % sat 3.87% Average Maturity: Ye3fl!l 4

7 Member introduced the following written resolution and moved its adoption: RESOLUTION NO RESOLUTION AWARDING SALE OF $3,550,000 GENERAL OBLIGATION ROAD RECONSTRUCTION BONDS, SERIES 2015A, FIXING THE FORM AND SPECIFICATIONS THEREOF, PROVIDING FOR THEIR EXECUTION AND DELIVERY, AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the City of Maple Grove, Minnesota, as follows: 1. The proposal of Raymond James & Associates, Inc. (the "Purchaser") to purchase the $3,550,000 General Obligation Road Reconstruction Bonds, Series 2015A of the City is hereby found and determined to be the best proposal received pursuant to the Terms of Proposal, and shall be and is hereby accepted, said offer being to purchase Bonds bearing interest according to year of maturity as follows: Maturity (February 1) Interest Rate 2.00% Maturity (February 1) Interest Rate 3.00% at a price of$3,663, plus accrued interest. 2. To provide funds for Project Nos and (the "2015 Improvements"), the City hereby determines that it is necessary and expedient to issue pursuant to Minnesota Statutes, Chapter 429, its negotiable General Obligation Road Reconstruction Bonds, Series 2015A (the "Bonds") in the aggregate principal amount of $3,550,000, dated the date of delivery. The Bonds shall bear interest at the rates above set forth, computed on the basis of a 360-day year of twelve 30-day months, payable February 1,2016, and semiannually thereafter on February 1 and August 1 in each year, and shall mature serially on February 1 in the years and amounts as follows: Year Amount Year Amount $200, $235, , , , , , , , , , , , ,000 5

8 The Bonds maturing on February 1, 2031 (the "Term Bonds") are subject to mandatory sinking fund redemption and shall be redeemed in part at par plus accrued interest on the mandatory redemption dates and in the principal amounts as follows: February 1, 2031 Term Bonds Mandatory Redemption Date February 1,2030 February 1,2031 * Principal Amount $275, ,000 *Final Maturity The principal amount of the Term Bonds required to be redeemed on each mandatory redemption date as set forth above, may be reduced through the earlier optional redemption thereof, with any partial optional redemptions of Bonds of such maturities credited against future mandatory redemption requirements for such Bonds in such order as the City Council shall determine. In addition, on or prior to the 60th day preceding any mandatory redemption date, the Registrar and Paying Agent may, and if directed by the City shall, purchase the Term Bonds in an amount not exceeding the amount of the Bonds of such maturity required to be redeemed on such date and at a price not exceeding the principal amount thereof plus accrued interest. Any Bonds so purchased shall be canceled and the redemption thereof shall be credited against the principal amount of Bonds of such maturity required to be redeemed on the next mandatory redemption date. All Bonds maturing on or after February 1, 2024, are subject to redemption and prior payment in whole or in part in such order as the City may determine and by lot within a maturity at the option of the City on February 1,2023, and any date thereafter at par and accrued interest. In the event of redemption by lot of Bonds oflike maturity, the Bond Registrar shall assign to each Bond of such maturity then outstanding a distinctive number for each $5,000 of the principal amount of such Bonds and shall select by lot in the manner it determines the order of numbers, at $5,000 for each number, for all outstanding Bonds of like maturity. The order of selection of Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected, but only so much of the principal amount of each 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. The Bonds shall be numbered R -1 upwards in order of issuance or in such other order as the Registrar may determine and shall be in the denomination of $5,000 each or any integral multiple thereof not exceeding the amount maturing in any year. 3. The Bonds, the Registrar's Authentication Certificate and the form of assignment shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF MAPLE GROVE No. $_--- 6

9 Interest Rate Registered Owner: Principal Amount: GENERAL OBLIGATION ROAD RECONSTRUCTION BOND, SERIES 20I5A Maturity Date of Original Issue July 14,2015 Cede & Co. CUSIP The City of Maple Grove, Hennepin County, Minnesota, for value received, hereby promises to pay to the Registered Owner specified above, or registered assigns, the Principal Amount specified above on the maturity date specified above, upon the presentation and surrender hereof, and to pay to the Registered Owner hereof interest on such Principal Amount at the Interest Rate specified above from July 14,2015, or the most recent interest payment date to which interest has been paid or duly provided for as specified below, on February 1 and August 1 of each year, commencing February 1,2016, until said principal amount is paid. Principal is payable in lawful money of the United States of America at the office of Wells Fargo Bank, National Association, in Minneapolis, Minnesota, as Bond Registrar or of its successor as Bond Registrar designated by the City upon 60 days' notice to the registered owners at their registered addresses. Interest shall be paid on each February 1 and August 1 interest payment date by check or draft mailed to the person in whose name this Bond is registered at the close of business on the 15th day of the month preceding each interest payment date (whether or not a business day) at said person's address set forth on the registration books maintained by the Bond Registrar. Any such interest not punctually paid or provided for will cease to be payable to the owner of record as of such regular record dates and such defaulted interest may be paid to the person in whose name this Bond shall be registered at the close of business on a special record date for the payment of such defaulted interest established by the Bond Registrar. The Bonds of the series having a stated maturity of February 1, 2031, are subject to mandatory sinking fund redemption as provided in the Resolution described below. The Bonds of this series maturing on or after February 1, 2024, are subject to redemption at the option of the City, in whole or in part in such order as the City may determine and by lot within a maturity, on February 1,2023, and any date thereafter at par and accrued interest. Thirty days' notice of prior redemption will be given by mail to the bank where the Bonds are payable and to the registered owners in the manner provided by Chapter 475, Minnesota Statutes. Any defect in mailing notice of redemption shall not affect the validity of the proceedings for redemption. Any Bond called for redemption, and for the payment of which moneys are set aside by the City on the redemption date, shall not bear interest after the redemption date, regardless of any delay in its presentation. During such time as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), the method of payment, notice of redemption and certain other matters are subject to the terms of a Blanket Letter of Representations executed by the City and DTC prior to the date of issuance of the Bonds as such Blanket Letter of Representations may be amended from time to time. This Bond is one of an issue of Bonds in the aggregate principal amount of$3,550,000, all oflike date and tenor except as to maturity, interest rate and redemption privilege, issued pursuant 7

10 to and in full conformity with the Constitution and Laws of the State of Minnesota, including Chapter 429, Minnesota Statutes, for the purpose of providing funds for road reconstruction improvements identified in the Resolution described below; and this Bond is payable primarily from special assessments levied or to be levied from its Road Reconstruction Bonds of 2015A Fund and ad valorem taxes as described in the Bond Resolution, but this Bond constitutes a general obligation of the City and to provide moneys for the prompt and full payment of said principal and interest as the same become due the full faith and credit of the City is hereby irrevocably pledged, and the City will levy additional ad valorem taxes on all taxable property in the City, if required for such purpose, without limitation as to rate or amount. This Bond is transferable, as provided by the Resolution of the City Council authorizing the issuance of the Bonds of this series adopted June 15,2015 (the "Resolution") only upon books of the City kept at the office of the Bond Registrar by the Registered Owner hereof in person or by the Registered Owner's duly authorized attorney, upon surrender of this Bond for transfer at the office of the Bond Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Bond Registrar duly executed by, the Registered Owner hereof or the Registered Owner's duly authorized attorney, and, upon payment of any tax, fee or other governmental charge required to be paid with respect to such transfer, one or more fully registered Bonds of the series of the same principal amount, maturity and interest rate will be issued to the designated transferee or transferees. The Registered Owner of this Bond may be treated as the absolute owner hereof for all purposes. The Bonds of this series are issuable only as fully registered bonds without coupons in denominations of $5,000 or any integral multiple thereof not exceeding the principal amount maturing in anyone year. As provided in the Resolution and subject to certain limitations therein set forth, the Bonds of this series are exchangeable for a like aggregate principal amount of Bonds of this series of a different authorized denomination, as requested by the Registered Owner or the owner's duly authorized attorney upon surrender thereof to the Bond Registrar. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed precedent to and in the issuance of this Bond have been done, have happened and have been performed in regular and due form, time and manner as required by law and that this Bond, together with all other indebtedness of the City outstanding on the date of its issuance, does not exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication and Registration hereon shall have been signed by the Bond Registrar. 8

11 IN WITNESS WHEREOF, the City of Maple Grove, Minnesota, by its City Council, has caused this Bond to be executed in its behalf by the facsimile signature of the Mayor and by the facsimile signature of the City Clerk, all as of the Date of Original Issue specified above. Mayor (Facsimile Signature) City Clerk (Facsimile Signature) BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION AND REGISTRATION This is one of the Bonds described in the within mentioned Resolution and this Bond has been registered as to principal and interest in the name of the Registered Owner identified above on the registration books of the City of Maple Grove, Minnesota. Dated: WELLS FARGO BANK, NATIONAL ASSOCIATION Bond Registrar By Authorized Signature 9

12 ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto (Please Print or Typewrite Name and Address of Transferee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Please Insert Social Security Number Identifying Number of Assignee Signature Guaranteed: or Other Notice: The signature to this assignment must correspond with the name as it appears on the face of this Bond in every particular, without alteration or any change whatever Signatures must be guaranteed by a national bank or trust company or by a brokerage firm having membership in one of the major stock exchanges. 4. The Bonds shall be payable upon presentation at the office of Wells Fargo Bank, National Association, in Minneapolis, Minnesota, as Registrar and Paying Agent, or at the offices of such other successor agents as the City may hereafter designate upon 60 days' mailed notice to the registered owners at their registered addresses. Interest shall be paid by check or draft of the Registrar mailed to the registered owners at their addresses shown on the registration books on each interest payment date unless other arrangements satisfactory to the Bond Registrar the City and the registered owners of Bonds are made. The City shall deposit funds with the Bond Registrar at the time and in the manner necessary to provide for the full and prompt payment of such principal and interest. 5. The Bonds shall be prepared in typewritten or printed form under the direction of the City Clerk and when so prepared shall be executed on behalf of the City by the facsimile signature of the Mayor and by the facsimile signature of the City Clerk. The Bonds shall not be valid for any purpose until authenticated by the Bond Registrar. The Bond Registrar is authorized and directed to register the Bonds initially issued hereunder in such names as the purchaser may direct. The Bonds initially issued hereunder shall be registered as of the date of delivery, and all Bonds issued in exchange therefor shall be registered as of such date, or, if issued after the first payment date, as of the most recent interest payment date on which interest was paid or duly provided for. When the Bonds shall have been so prepared and executed, they shall be delivered by the Finance Director in exchange for the purchase price and upon receipt of the signed legal opinion of Faegre Baker Daniels LLP, as Bond Counsel, and the purchaser shall not be required to see to the proper application of the proceeds. 10

13 6. (a) For purposes of this paragraph 6, the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person 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 Depository Trust Company, New York, New York. "Participants" shall mean those broker-dealers, banks and other financial institutions for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Blank Letter of Representations from the City to DTC, with respect to obligations issued from time to time by the City, substantially in the form on file in the office of City Clerk. (b) The Bonds shall be initially issued as separate 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 registered in the bond register of the City kept by the Registrar 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, 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 registration books of the Registrar 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. The Registrar shall pay all principal of and interest on the Bonds only to Cede & Co. in accordance with the Representation Letter, 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 subparagraph (f) hereof. 11

14 (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants, of the availability through DTC of Bond certificates. In such event, the Bonds will be transferable in accordance with subparagraph (f) 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 subparagraph (f) hereof. (d) Notwithstanding any other provision of this Resolution apparently to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, to DTC as provided in the Representation Letter. (e) The Representation Letter to DTC is hereby confirmed and expressly made applicable to the Bonds. The Representation Letter sets forth certain matters with respect to, among other things, notices, consents and approvals by registered owners of the Bonds and Beneficial Owners and payments on the Bonds. The Registrar shall have the same rights with respect to its actions thereunder as it has with respect to its actions under this Resolution. (f) In the event that any transfer or exchange of Bonds is permitted under subparagraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar from the registered owners thereof of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of paragraph 7 hereof. 7. As long as any of the Bonds issued hereunder shall remain outstanding, the City shall maintain and keep at the office of the Bond Registrar an office or agency for the payment of the principal of and interest on such Bonds, as in this Resolution provided, and for the registration and transfer of such Bonds, and shall also keep at said office of the Bond Registrar books for such registration and transfer. Upon surrender for transfer of any Bond at the office of the Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's duly authorized attorney, and upon payment of any tax, fee or other governmental charge required to be paid with respect to such transfer, the City shall execute and the Bond Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more fully registered Bonds of the same series, of any authorized denominations and of a like aggregate principal amount, interest rate and maturity. The Bonds, upon surrender thereof at the office of the Bond Registrar, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of Bonds of the same maturity and interest rate of any authorized denominations. In all cases in which the privilege of exchanging Bonds or transferring fully registered Bonds is exercised, the City shall execute and the Bond Registrar shall deliver Bonds in accordance with the provisions of this Resolution. For every such exchange or transfer of Bonds, whether temporary or definitive, the City or the Bond Registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. Notwithstanding any other provision ofthis Resolution, the cost of preparing 12

15 each new Bond upon each exchange or transfer, and any other expenses of the City or the Bond Registrar incurred in connection therewith (except any applicable tax, fee or other governmental charge) shall be paid by the City. The City and the Bond Registrar shall not be obligated to make any such exchange or transfer of Bonds during the fifteen (15) days next preceding the date of redemption in the case of a proposed redemption of Bonds or to make any transfer during the fifteen (15) days next preceding any February 1 or August 1 interest payment date. 8. Interest on any Bond which is payable, and is punctually paid or duly provided for, on any interest payment date shall be paid to the person in whose name that Bond (or one or more Bonds for which such Bond was exchanged) is registered at the close of business on the 15th day of the month preceding such interest payment date. Any interest on any Bond which is payable, but is not punctually paid or duly provided for, on any interest payment date shall forthwith cease to be payable to the registered holder on the relevant regular record date solely by virtue of such holder having been such holder; and such defaulted interest may be paid by the City in any lawful manner, if, after notice given by the City to the Bond Registrar of the proposed payment pursuant to this paragraph, such payment shall be deemed practicable by the Bond Registrar. Subject to the foregoing provisions of this paragraph, each Bond delivered under this Resolution 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 and each such Bond shall bear interest from such date that neither gain nor loss in interest shall result from such transfer, exchange or substitution. 9. As to any Bond, the City and the Bond Registrar and their respective successors, each in its discretion, may deem and treat the person in whose name the same for the time being shall be registered as the absolute owner thereof for all purposes and neither the City nor the Bond Registrar nor their respective successors shall be affected by any notice to the contrary. Payment of or on account of the principal of any such Bond shall be made only to or upon the order of the registered owner thereof, but such registration may be changed as above provided. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. 10. There is hereby created a special fund, to be known as the Road Reconstruction Bonds of2015a Fund, for purpose of paying principal and interest on the Bonds, and in the event the principal of and interest upon the said Bonds shall become due and payable and there are insufficient moneys in said fund to pay such principal and interest, the City Treasurer is authorized and directed to pay said principal and interest from the general fund and thereafter to reimburse said general fund from collections of taxes levied pursuant hereto and special assessments for the 2015 Improvements. The proceeds of the Bonds herein authorized shall be deposited in a separate construction fund to be used solely for the payment of expenses of the 2015 Improvements. Any remaining proceeds may be used for any lawful purpose. All future collections of special assessments for the 2015 Improvements are hereby irrevocably appropriated and pledged to the payment of principal of and interest on the Bonds herein authorized, and the moneys and investments in the Road Reconstruction Bonds of2015a Fund shall be used for no other purpose than to pay principal and interest on the Bonds until such principal and interest shall have been paid in full; provided, however, that nothing herein contained shall prevent the issuance and sale of additional bonds payable from the proceeds of such assessments to provide additional funds to pay the balance of the cost of said 2015 Improvements. The City is hereby authorized to levy 13

16 assessments for said Improvements for which special assessments have not heretofore been levied. The City Treasurer may create separate accounts within the Road Reconstruction Bonds of2015a Fund for any capitalized interest and for assessment prepayments. 11. There is hereby levied upon all the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected as part of other general ad valorem taxes of the City in the years and amounts as follows: Levy Year Collection Year Amount $157, , , , , , , , , , , , , , , Said levy shall be irrepealable and the taxes so levied are irrevocably appropriated to the debt service fund, but the City reserves the right to reduce said levy from funds in the Road Reconstruction Fund or other moneys in the manner and to the extent permitted by Minnesota Statutes, Section It is hereby found and determined that the foregoing taxes, if collected in full, will, together with the estimated collection of pledged special assessments, produce at least five percent in excess of the amount needed to meet when due the payments of principal and interest on the Bonds; but the Bonds are general obligations of the City to which the full faith, credit and unlimited taxing powers of the City have been and are hereby pledged; and the City Council shall levy general ad valorem taxes on all taxable property in the City, if necessary, to pay the principal of and interest on the Bonds when due. 12. The City Clerk is authorized and directed to prepare and furnish to the purchaser and to the attorneys approving the Bonds, certified copies of all proceedings and records relating to the issuance of said General Obligation Road Reconstruction Bonds, Series 2015A and to the right, power and authority of the City and its officers to issue the same, and said certified copies and certificates shall be deemed the representations of the City as to all matters stated therein. 13. The Official Statement relating to the Bonds, on file with the Clerk and presented to this meeting, is hereby approved and its designation as a "near final" Official Statement for purposes of Rule 15c2-12 of the Securities and Exchange Commission and the furnishing thereof 14.

17 to prospective purchasers of the Bonds are hereby ratified and confirmed, insofar as the same relates to the Bonds and the sale thereof. The Continuing Disclosure Certificate included in the Official Statement is hereby approved and shall be executed and delivered in connection with the delivery of the Bonds. The Continuing Disclosure Certificate constitutes a contractual obligation in accordance with its terms. 14. The officers of the City are hereby authorized and directed to prepare and furnish to the Secretary of the Treasury a statement meeting the information reporting requirements of Section 149( e) of the Internal Revenue Code of 1986, as amended (the "Code"), by the 15th day of the second calendar month after the close of the calendar quarter in which the Bonds are issued. 15. The City shall not take or permit any action that would cause the Bonds to be "private activity bonds" within the meaning of Section 141 of the Code. The City shall comply with the rebate requirements imposed under Section 148(f) of the Code and regulations thereunder, including (if applicable) the requirement to make periodic calculations of the amount subject to rebate thereunder and the requirement to make all required rebates to the United States. The City Clerk of the City is hereby authorized to make on behalf of the City all elections that he may deem necessary and expedient under Section 148 of the Code. In addition, the City shall make no investment of funds that would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and regulations thereunder. All terms used in this paragraph 15 shall have the meanings provided in the Code and regulations thereunder. 16. The City Clerk shall furnish a certified copy of this resolution to the County Auditor of Hennepin County, and obtain the County Auditor's certificate as required by law. 17. The Bonds are hereby designated "qualified tax-exempt obligations" under Section 265(b)(3) of the Code. 15

18 The motion for the adoption of the foregoing resolution was duly seconded by Member upon vote being taken thereon the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 16

19 STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF MAPLE GROVE ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Maple Grove, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a meeting of the City Council of said City held June 15, 2015, with the original thereof on file and of record in my office and the same is a full, true and complete transcript therefrom insofar as the same relates to the issuance and sale of $3,550,000 General Obligation Road Reconstruction Bonds, Series 2015A of said City. WITNESS My hand officially and the seal of the City this day of June (Seal) City Clerk City of Maple Grove, Minnesota US

20 D Springsted Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN Tel: Fax: $3,700,000(a) CITY OF MAPLE GROVE, MINNESOTA GENERAL OBLIGATION ROAD RECONSTRUCTION BONDS, SERIES 2015A (BOOK ENTRY ONLY) AWARD: RAYMOND JAMES & ASSOCIATES, INC. SALE: June 15, 2015 Standard & Poor's Rating: AAA Bidder RAYMOND JAMES & ASSOCIATES, INC. FTN FINANCIAL CAPITAL MARKETS PIPER JAFFRAY & CO. Interest Rates 2.00% % % % % % % % % % % % % % % % % % % 2031 Net Interest True Interest Price Cost Rate $3,820,101.30(b) $770,989.19(b) %(b) $3,716, $775, % $3,828, $790, % (a) Subsequent to bid opening, the issue size decreased from $3,700,000 to $3,550,000. (b) Subsequent to bid opening, the price, net interest cost, and true interest rate have changed to $3,663,935.74, $758,540.21, and %, respectively. Public Sector Advisors

21 Interest Net Interest True Interest Bidder Rates Price Cost Rate ROBERT W. BAIRD & COMPANY, 2.00% $3,779, $817, % INCORPORATED 3.00% C.L. KING & ASSOCIATES 2.25% 2025 CRONIN & COMPANY, INC. 2.50% 2026 VINING-SPARKS IBG, 3.00% LIMITED PARTNERSHIP LOOP CAPITAL MARKETS, LLC EDWARD D. JONES & COMPANY WNJ CAPITAL CREWS & ASSOCIATES CASTLEOAK SECURITIES, L.P. DAVENPORT & COMPANY LLC DUNCAN-WILLIAMS, INC. ROSS, SINCLAIRE & ASSOCIATES, LLC DOUGHERTY & COMPANY LLC COUNTRY CLUB BANK OPPENHEIMER & CO. INC. SUMRIDGE PARTNERS R. SEELAUS & COMPANY, INC. SIERRA PACIFIC SECURITIES ALAMO CAPITAL ISAAK BOND INVESTMENTS, INC. IFS SECURITIES SUNTRUST ROBINSON HUMPHREY, INC. 3.00% $3,769, $819, % BANK OF OKLAHOMA 2.00% STIFEL, NICOLAUS & COMPANY, 2.10% 2024 INCORPORATED 2.20% % BMO CAPITAL MARKETS GKST INC. 2.00% $3,798, $832, % 3.00% % % NORTHLAND SECURITIES, INC. 2.00% $3,734, $828, % 2.50% %

22 REOFFERING SCHEDULE OF THE PURCHASER Rate Year Yield 2.00% % 2.00% % 2.00% % 3.00% % 3.00% % 3.00% % 3.00% % 3.00% % 2.20% 2025 Par 2.40% 2026 Par 2.50% % 2.50% % 2.75% % 3.00% % 881: 3.87% Average Maturity: Years