Loading...
HomeMy WebLinkAboutResolution No. 398-10 CITY OF ROCHESTER COUNTY OF OLMSTED STATE OF MINNESOTA RESOLUTION NO.3.-10 RESOLUTION AWARDING THE SALE OF $26,700,000 TAXABLE GENERAL OBLIGATION BONDS, (BUILD AMERICA BONDS -DIRECT PAY) SERIES 2010A FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the Common Council of the City of Rochester, Olmsted County, Minnesota(the "City") as follows: Section 1. Background. 1.01. Statutory Authorization. The City is authorized by Minnesota Statutes, Sections 412.301 to finance the acquisition of capital equipment ( the "Equipment"), and by Minnesota Statutes, Section 475.521 to finance certain capital improvements under an approved capital improvement plan, all by the issuance of general obligation bonds of the City. • 1.02. Capital Improvement Plan Authorizing Issuance of Bonds. On July 19, 2010 the City held a public hearing regarding a five year capital improvement plan (the"Plan"), and regarding issuance of bonds to finance planned capital improvements. The Plan authorizes issuance of bonds to pay the cost of financing a public works maintenance garage and a portion of the costs of a mass transit maintenance garage (hereinafter referred to as the "Improvements" and together with the Equipment,the "Project"). 1.03. No Petition for a Referendum Received. The City Council has determined that, within 30 days after the hearing, no petition for a referendum on issuance of bonds pursuant to the Plan was received by the City in accordance with the Act. 1.04. Determinations of the Cite . The City has determined that: (i) the amount of principal and interest due in any year on all outstanding bonds issued under Minnesota Statutes, Section 475.521, will not exceed .16 percent of the taxable market value of property in the City for taxes payable in 2010, and (ii) the expected useful life of each item of Equipment is or will be at least as long as the term of the Bonds issued to finance the Equipment (the "Equipment Portion"); and (iii)the principal amount of the Equipment Portion will not exceed 0.25 percent of the market value of taxable property in the City for taxes payable in 2010, which is the market value as last finally equalized. 1.05. Issuance of the Bonds. It is necessary and expedient to the sound financial • management of the affairs of the City to issue its $26,700,000 Taxable General Obligation Bonds, (Build America Bonds - Direct Pay) Series 2010A (the "Bonds") to provide financing for the Improvements and the acquisition of the Equipment. 374774v1 NINO RC110-21 2 • Section 2. Sale of Bonds. 2.01. Award to the Purchaser and Interest Rates. The proposal of Morgan Keegan & Company, Inc., Memphis, Tennessee (the "Purchaser") to purchase the Bonds of the City described in the Terms of Proposal thereof is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to p rchase the Bonds at a price of $26,554,707.10, for Bonds bearing interest as follows: Year of Interest Y ar of Interest Maturi Rate MaturitV Rate 2012 0.85% 2021 3.75% 2013 1.00 025 4.00 2014 1.25 026 4.375 2015 2.00 027 4.60 2016 2.25 028 4.70 2017 2.75 029 4.80 2018 2.875 030 4.90 2019 3.60 033 5.00 2020 3.70 036 5.15 • 2.02. Purchase Contract. The sum of $121,707.10 being the amount proposed by the Purchaser in excess of$26,433,000 will be credited to the Debt Service Fund or deposited in the Construction Fund hereinafter created. The City Director f Finance is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Clerk are directed to execute a contract with the Purchaser on behalf of the City. 2.03. Terms and Principal Amount of Bonds. The ity will forthwith issue and sell the Bonds in the total principal amount of$2.6,700,000, origina ly dated the date of delivery, in the denomination of $5,000 each or any integral multiple th reof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on ebruary 1 in the years and amounts as follows: • 3747741 MMD RC110-21 3 • Year Amount Year Amount 2012 $50,000 2025 $1,060,000 2013 870,000 20 6 1,095,000 2014 880,000 2027 1,125,000 2015 890,000 2028 1,165,000 2016 900,000 2029 1,205,000 2017 915,000 2030 1,250,000 2018 940,000 2031 1,285,000 2019 955,000 2032 1,335,000 2020 975,000 2033 1,385,000 2021 950,000 203 1,435,000 2022 970,000 2035 1,490,000 2023 1,000,000 2036 1,545,000 2024 1,030,000 $23,800,000 in principal amount of the Bonds (the "Public Works Portion") maturing in the amounts and on the dates set forth below are being issued to finance the public works machine garage portion of the Improvements: • Year Amount Year Amount 2013 $745,000 20 5 $960,000 2014 755,000 20 6 990,000 2015 765,000 20 7 1,020,000 2016 775,000 20 8 1,055,000 2017 790,000 20 9 1,090,000 2018 805,000 20 0 1,130,000 2019 820,000 20 1 1,165,000 2020 840,000 20 2 1,210,000 2021 860,000 20. 3 1,255,000 2022 880,000 20 4 1,300,000 2023 905,000 20 5 1,350,000 2024 935,000 20 6 1,400,000 • 3747741 NNORC110-21 4 • $2,475,000 in principal amount of the Bonds (the"Transit Por ion") maturing in the amounts and on the dates set forth below are being issued to finance the mass transit maintenance garage portion of the Improvements: Year Amount Year Amount 2013 $80,000 2025 $100,000 2014 80,000 2026 105,000 2015 80,000 2027 105,000 2016 80,000 2028 110,000 2017 80,000 2029 115,000 2018 85,000 2030 120,000 2019 85,000 203 1 120,000 2020 85,000 20 2 125,000 2021 90,000 2033 130,000 2022 90,000 2034 135,000 2023 95,000 2035 140,000 2024 95,000 2036 145,000 The remaining $425,000 in principal amount of the Bonds (the"Equipment Portion") maturing in the amounts and on the dates set forth below are being issued to finance the Equipment: • Year Amount Year Amount 2012 $50,000 2017 $45,000 2013 45,000 20 .8 50,000 2014 45,000 20 9 50,000 2015 45,000 20 0 50,000 2016 45,000 2-04. Optional Redemption. (a) The City may ele t on February 1, 2021, and on any day thereafter.to prepay Bonds due on or after February 1, 022. Redemption may be in whole or in part and if in part, at the option of the City and in suc manner as the City will determine. If less than all Bonds of a maturity are called for redeml tion, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of suc maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial owner hip interests in such maturity to be redeemed. Prepayments will be at a price of par plus accruec interest. (b) At the option of the City, the Bonds are also subject to extraordinary redemption in whole, but not in part, at a redemption price equal t par plus accrued interest to the redemption date, on any date after the occurrence of a Determination of Ineligibility. A Determination of Ineligibility will mean if a material adverse change has occurred to Section 54AA or 6431 of the Internal Revenue Code (the "Code") (as such Sections were added by • Section 1531 of the Recovery Act pertaining to `Build America Bonds") pursuant to which the City's 35% direct payment credit from the United States Treasury shall be reduced or eliminated 3747741 MNM RC110-21 5 • 2.05 Elections for Build America Bonds; Findings. The City hereby makes an irrevocable election to have Section 54AA of the Code apply to the Bonds, in order to designate the Bonds, as Build America Bonds pursuant to Section 54 (d)(1)(C) of the Code. The City hereby makes an irrevocable election to have Subsection 54AA(g) of the Code apply to the Bonds, in order to designate the Bonds as qualified bonds, ursuant to Section 54A(g)(2)(B) of the Code. In support of such elections, it is hereby found, determined and declared that: (a) The Bonds are not private activity bonds and the interest on the Bonds would (but for this election)be excludable from gross income under Se tion 103 of the Code; (b) The Bonds are issued after February 17, 2009 and before January 1, 2011; (c) No more than 2% of the proceeds of the Bonds will be used to finance costs of issuance of the Bonds; (d) 100% of the available project proceeds of the Bonds are to be used for capital expenditures which are not working capital expenditures. Section 3. Registration and Pam. 3.01. Registered Form. The Bonds will be issued only in fully registered form. The • interest thereon and, upon surrender of each Bond, the prir cipal amount thereof, is payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to Which interest on the Bond has been paid or made available for payment, unless (i) the date of authe itication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or(ii) the date of au entication is prior to the first interest payment date, in which case the Bond will be dated as of t date of original issue. The interest on the Bonds is payable on February 1 and August 1 of eac i year, commencing August 1, 2011, to the registered owners of record thereof as of the close o business on the fifteenth day of the immediately preceding month, whether or not that day is a I usiness day. 3.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Re ister. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges cf Bonds entitled to be registered, transferred or exchanged. • (b) Transfer of Bonds. Upon surrender r transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in 3747741 MMDRC110-21 6 • form satisfactory to the Registrar, duly executed by e registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designs ed transferee or transferees, one 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 that interest payment date. (c) Exchange of Bonds. When Bonds are urrendered by the registered owner for exchange the Registrar will authenticate and deliN er one or more new Bonds of a like aggregate principal amount and maturity as requesi ed by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered u on transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to tr sfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separa a instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make trans rs 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 a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the B nd and for all other purposes and payments so made to registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds, 3ufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated Lost Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and c arges of the Registrar in connection therewith; and, in the case of a Bond destroyed, tolen or lost, upon filing with the Registrar of evidence satisfactory to it that the 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 and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered 374774v1 MAID RC110-21 7 • to the Registrar will be cancelled by the Registrar an evidence of such cancellation must be given to the City. If the mutilated, destroyed, stol n or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of th Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the tice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with he place of payment at that time. 3.04. Appointment of Initial Re istrar. The City appoints City Director of Finance, as the initial Registrar. 3.05. Execution, Authentication and Delivery. Th Bonds will be prepared under the direction of the City Director of Finance and executed on behalf of the City by the signatures of the Mayor and the City Clerk, provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose • signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and sufficie t for all purposes, the same as if the officer had remained in office until delivery. Notwithstand ng such execution, a Bond will not 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 the 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 a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Director of Finance will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore mad and executed, and the Purchaser is not obligated to see to the application of the purchase price. 3.06. Temporary Bonds. The City may elect to Jeliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substan ially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 4. Form of Bond. 4.01. The Bonds will be printed or typewritten in s bstantially the following form: • 374774v1 lv ID RC110-21 8 • No. R- $ UNITED STATES OF AMERICA STATE OF MINNESOT COUNTY OF OLMSTE CITY OF ROCHESTE TAXABLE GENERAL OBLIGATI DN BOND, (BUILD AMERICA BONDS —DIRECT P Y) SERIES 2010A Date o Rate Maturity Ori inalIssue CUSIP , 2010 Registered Owner: Cede & Co. The City of Rochester, Minnesota, a duly organized aid existing municipal corporation in Olmsted County, Minnesota (the "City"), acknowledges i self to be indebted and for value received hereby promises to pay to the Registered Ownerspecified above or registered assigns, the principal sum set forth above on the maturity date specified above, with interest thereon from • the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2011, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business ay) of the immediately preceding month. 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 by the City Director of Finance, Rochester, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the esolution 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. The City may elect on February 1, 2021, and on any day thereafter to prepay Bonds due on or after February 1, 2022. Redemption may be in whole r in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined n Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will detc rmine by lot the amount of each participant's interest in such maturity to be redeemed and ea h participant will then select by lot the beneficial ownership interests in such maturity to be rc deemed. Prepayments will be at a price of par plus accrued interest. At the option of the City, the Bonds are also sub ect to extraordinary redemption in whole, but not in part, at a redemption price equal to par ph s accrued interest to the redemption date, on any date after the occurrence of a Determination of Ineligibility. A Determination of • Ineligibility will have occurred if a change has occurred to Section 54AA or 6431 of the Internal Revenue Code (the "Code") (as such Sections were addecl by Section 1531 of the American 3747741 MMD RCI10-21 9 Reinvestment and Recovery Act, pertaining to "Build America Bonds") which results in the City's 35% direct payment credit from the United States Treasury being reduced or eliminated. This Bond is one of an issue in the aggregate principal amount of$26,700,000 all of like original issue date and tenor, except as to number, ma .ty date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the Common Council on September 20, 2010 (the "Resolution"), for the purpose of providing money to finance certain items of capital equipment and capital improvements pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including ' esota Statutes, Sections 412.301 and Section 475.521, and the principal hereof and interest f iereon are payable from ad valorem taxes as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the Common Council has obligat d itself to levy ad valorem taxes on all taxable property, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bond in denominations of$5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certa n limitations set forth therein, this Bond is transferable upon the books of the City at the prin&pal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attor iey duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond 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. Up n 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 3ame rate and maturing on the same date, subject to reimbursement for any tax, fee or governme tal charge required to be paid with respect to such transfer or exchange. The City and the Bond 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 Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVEN TED AND AGREED.that all acts, conditions and things required by the home rule charter of the City and 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 e ist, have happened and have been performed as so required, and that the issuance of this Bon does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose r entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. • IN WITNESS WHEREOF, the City of Rochester, Dlmsted County, Minnesota, by its Common Council, has caused this Bond to be executed on i s behalf by the facsimile or manual 3747741 NSM RC110-21 10 . signatures of the Mayor and City Clerk and has caused this Bond to be dated as of the date set forth below. Dated: , 2010 CITY OF ROCHESTER, MINNESOTA (Facsimile) (Facsimile) City Clerk Mayor CERTIFICATE OF AUTHENTI ATION This is one of the Bonds delivered pursuant to the Re 3olution mentioned within. CITY OF ROCHESTER, MINNESOTA By Dire for of Finance • The following abbreviations, when used in the inscription on the face of this Bond, will be constructed as though they were written out in ful according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Cust) (Minor) TEN ENT— as tenants under U 'form Gifts or by entireties Transfe s to Minors JT TEN -- as joint tenants with right of survivorship and Act . . . . . . . . . . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. • ASSIGNMENT 3747741 N4NM RC110-21 11 • For value received, the undersigned hereby E ells, 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 any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"),the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange • Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION • The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last note I below. 374774vI N%M RC110-21 12 Signature of Date of Registration Registered Owner Officer of Re ig strar Cede& Co. Federal ID #13-2555119 • • 374774vl MMD RC110-21 13 4.02. Approving Legal Opinion. The City Clerk is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond. Section 5. Payment; Security; Pledges and Covenants. 5.01. Debt Service Fund. (a) The Bonds are payable from the Taxable General Obligation Bonds, (Build America Bonds - Direct Pay) Series 2010A Debt Service Fund (the "Debt Service Fund") hereby created, and the proceeds of general taxes hereinafter levied (the "Taxes"), levied or to be levied for the Transit Portion, the Public Works Portion and the Equipment Portion of the Bonds are hereby pledged to the appropriate subaccount of the Debt Service Fund. The Debt Service Fund shall contain and Equipment Subaccount, a Transit Subaccount and a Public Works Subaccount. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Director of Finance is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for the advances out of the proceeds of Taxes when collected. (b) Construction Fund. The proceeds of the Bonds, shall be deposited in a separate Construction Fund (which shall contain separate subaccounts for the Transit Portion, the Public Works Portion and the Equipment Portion) of the Bonds to be used solely to defray expenses of • the Transit Portion, Public Works Portion and Equipment Portion. When the costs of the Improvements and Equipment have been paid, the Construction Fund is to be closed and any remaining balance shall be transferred to the appropriate subaccount in the Debt Service Fund. Notwithstanding the foregoing, other than costs of issuance the bonds within the 2% limit, the only costs of the Project paid from the proceeds of the Bonds shall be capital expenditures which are not working capital expenditures. 5.02. Pledge of Taxes. For the purpose of paying the principal of and interest on the Bonds,there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in the City,which will be spread upon the tax rolls and collected with and as part of other general taxes of the City. The taxes will be credited to the appropriate subaccount of the Debt Service Fund above provided and will be in the years-and amounts as follows (year stated being year of collection): Year Lev (See Exhibit B) 5.03. Certification to County Auditor as to Debt Service Fund Amount. It is hereby determined that the estimated collection of the foregoing Taxes will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levy herein provided is irrepealable until all of the Bonds are paid, provided that • at the time the City makes its annual tax levies the City Director of Finance may certify to the County Auditor of Olmsted County the amount available in the Debt Service Fund to pay 3747741 N MD RC110-21 14 • principal and interest due during the ensuing year, and the County Auditor will thereupon reduce the levy collectible during such year by the amount so certified. 5.05. County Auditor's Certificate as to Tax Levy and Registration. The City Clerk is authorized and directed to file a certified copy of this resolution with the County Auditor of Olmsted County and to obtain the certificate required by Minnesota Statutes, Section 475.63. Section 6. Authentication of Transcript. 6.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. 6.02. Certificate of Official Statement. The Mayor, City Clerk and Director of Finance are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their • knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. Section 7. Book-Enter System-, Limited Obligation of City_. 7.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 7.02. Participants. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of • any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with 374774v1 NRvM RC110-21 15 • respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal,premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Clerk of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Clerk will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the • Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the Common Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such-event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of,premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. • 3747741 NDYM RC110-21 16 • Section 8. Continuing Disclosure. 8.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order,to cause the City to comply with its obligations under this section. 8.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Clerk and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 9. Defeasance. 9.01. Pledges, Covenants, and Other Rights to Cease. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all 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. 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 to the date of such deposit. Section 10. Status of Bonds as Build America Bonds. 10.01. Qualified Build America Bonds. The,yield on the Bonds shall be reduced by the tax credit allowed under Section 6431 of the Code. As a condition for their designation as Build America Bonds, the Bonds shall meet all requirements for the exclusion of interest from gross income under Section 103 of the Code. The City shall comply with requirements necessary under the Code to establish and maintain the status of the Bonds as Build America Bonds which are qualified bonds, including requirements relating to the exclusion from gross income under Section 103 of the Code of the interest on the Bonds but for their election of Build America Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested as a yield greater than the yield on the Bonds, and(iii)the rebate of excess investment earnings to the United States. 10.02. Payable 35% Credits. Sections 54AA(g) and 6431 of the Code provide that the issuer of Build America Bonds which are qualified bonds, for which the City in paragraph 1.06 has made the irrevocable elections required by law, shall be allowed a credit with respect to each interest payment date under such bonds, which shall be payable by the Secretary of the Treasury. • The Secretary of the Treasury shall pay (contemporaneously with each interest payment date under such bonds) to the issuer of such bonds (or to any person who makes such interest 3747741 bevID RM 10-21 17 • payments on behalf of the issuer) 35% of the interest payable under such bonds on such date. The City and its officers and staff shall take such actions as are necessary to timely apply for and receive such credits, including filing a Form 8038B information return with respect to the Bonds and Form 8038-CP returns for credit payments to issuers of qualified bonds with respect to such interest payment on the Bonds. • • 3747741 MMD RC 110-21 18 • PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS 20TH DAY OF SEPTEMBER, 2010. PRESIDENT OF SAID COMMON COUNCIL 'LPZ-b-7&V ATTEST: CIT CL RK Approved this 20'' day of September, 2010. Seal of the City ECG I" i � tY of Rochester, Minnesota) MAYOR OF SAID CITY • • 374774v1 NIIvM RC110-21 19 iExtract of Minutes of Meeting of the Common Council of the City of Rochester, Olmsted County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the Common Council of the City of Rochester, Minnesota, was duly held in the City Hall in said City on Monday, September 20, 2010, commencing at 7:00 P.M. The following members were present: President Pro-Tem Bob Nowicki, Councilmembers Mark Bilderback, Ed Hruska, Sandra Means, Bruce Snyder, Michael Wojcik and the following were absent: President Dennis Hanson The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $26,700,000 Taxable General Obligation • Bonds, (Build America Bonds -Direct Pay) Series 2010A. The Director of Finance presented a tabulation of the proposals that had been received in the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in Exhibit A attached. After due consideration of the proposals, Member Wojcik then introduced the following resolution and moved its adoption: • 374774v1 MMD RC110-21 • The motion for the adoption of the foregoing resolution was duly seconded by Member Hruska , and upon vote being taken thereon, the following voted in favor thereof: President Pro-Tern Bob Nowicki, Councilmembers Mark Bilderback, Ed Hruska, Sandra Means, Bruce Snyder, Michael Wojcik and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. • • 374774v1 MAID RC110-21 20 • CERTIFICATION I, the undersigned City Clerk of the City of Rochester, Minnesota, do hereby certify the following: The foregoing is true and correct and a copy of the Resolution is on file and of record in the offices of the City,which Resolution relates to awarding the sale of Taxable General Obligation Bonds, (Build America Bonds -Direct Pay) Series 2010A fixing their form and specifications directing their execution and delivery; and providing for their payment, and said Resolution was duly adopted by the Rochester Common Council at a regular or special meeting of the Council held on the date therein indicated. Said meeting was duly called and regularly held and was open to the public and was held at the place at which meetings of the Council are regularly held, a quorum of the Council being present and acting throughout. Councilmember Wojcik moved the adoption of the Resolution, which motion was seconded by Councilmember Hruska . A vote being taken on the motion,the following members of the Council voted in favor of the Resolution: President Pro-Tem Bob Nowicki, Councilmembers Mark Bilderback, Ed Hruska, Sandra Means, Bruce Snyder, Michael Wojcik and the following voted against the same: None • Whereupon said Resolution was declared duly passed and adopted. The Resolution is in full force and effect and no action has been taken by the Council which would in any way alter or amend the Resolution. WITNESS MY HAND officially as the City Clerk of the City of Rochester, Minnesota, this 21ST day of SEPT , 2010. City C erk City of Rochester, Minnesota • 3747741 MIvID RC110-21 21 • EXHIBIT A PROPOSALS • • 374774vl N vID RC110-21 A_1 Springsted Incorporated 380 Jackson Street, Suite 300 • Springsted Saint Paul,MN 55101-2887 Tel: 651-223-3000 Fax: 651-223-3002 Email: advisors@spdngsted,com www.spdngsted.com $26,700,000" CITY OF ROCHESTER, MINNESOTA TAXABLE GENERAL OBLIGATION BONDS, SERIES 2010A (BUILD AMERICA BONDS—DIRECT PAY) (BOOK ENTRY ONLY) AWARD: MORGAN KEEGAN & COMPANY, INC. AND SYNDICATE SALE: September 20, 2010 Moody's Rating: Aaa Standard & Poor's Rating: AAA Interest Net Interest True Interest Bidder Rates Price Cost Rate ORGAN KEEGAN & COMPANY, INC. 0.85% 2012 $26,554,707.10 $18,430,609.63 4.5314% ROBERT W. BAIRD &COMPANY, 1.00% 2013 INCORPORATED 1.25% 2014 Net of BAB Credit $12,030,749.01 2.9773% DAVENPORT& COMPANY LLC 2.00% 2015 FIDELITY CAPITAL MARKETS SERVICES 2.25% 2016 C.L. KING &ASSOCIATES 2.75% 2017 COASTAL SECURITIES L.P. 2.875% 2018 DUNCAN-WILLIAMS, INC. 3.60% 2019 LOOP CAPITAL MARKETS, LLC 3.70% 2020 KILDARE CAPITAL 3.75% 2021 NW CAPITAL MARKETS INC. 4.00% 2022-2025 SAMCO CAPITAL MARKETS, INC. 4.375% 2026 CREWS &ASSOCIATES 4.60% 2027 EDWARD D. JONES &COMPANY 4.70% 2028 BANK OF NEW YORK 4.80% 2029 FTN FINANCIAL CAPITAL MARKETS 4.90% 2030 CRONIN & COMPANY, INC. 5.00% 2031-2033 WILLIAM BLAIR & COMPANY 5.15% 2034-2036 NORTHLAND SECURITIES Jackson Securities, LLC Northern Trust Securities, Inc. (Taxable) • (Continued) Public Sector Advisors Interest Net Interest True Interest Bidder Rates Price Cost Rate 0,IPER JAFFRAY& CO. 1.00% 2012 $26,454,253.14 $18,319,625.84 4.5263% (Taxable) 1.30% 2013 1.65% 2014 Net of BAB Credit $11,993,768.36 2.9803% 2.00% 2015 2.35% 2016 2.85% 2017 3.25% 2018 3.40% 2019 3.55% 2020 3.75% 2021 4.00% 2022 4.10% 2023 4.20% 2024 4.30% 2025 4.40% 2026 4.50% 2027 4.75% 2028-2030 4.875% 2031-2033 5.00% 2034-2036 BMO CAPITAL MARKETS GKST INC. 1.00% 2012 $26,655,295.34 $19,103,589.99 4.6869% STIFEL, NICOLAUS & COMPANY, 1.30% 2013 INCORPORATED 1.65% 2014 Net of BAB Credit $12,432,980.25 3.0700% FIRST SOUTHWEST CO. 2.10% 2015 SUNTRUST ROBINSON HUMPHREY, INC. 2.50% 2016 SVINING-SPARKS IBG, 2.90% 2017 LIMITED PARTNERSHIP 3.35% 2018 Oppenheimer&Co. Inc. 3.60% 2019 (Taxable) 3.80% 2020 4.15% 2021-2025 4.70% 2026 4.80% 2027 4.90% 2028 5.00% 2029 5.15% 2030-2032 5.30% 2033-2036 RAMIREZ & CO. 1.00% 2012 $26,459,700.00 $19,065,928.42 4.6932% (Taxable) 1.10% 2013 1.50% 2014 Net of BAB Credit $12,476,958.65 3.0925% 1.95% 2015 2.35% 2016 2.75% 2017 3.00% 2018 3.25% 2019 3.50% 2020 3.65% 2021 3.90% 2022 4.10% 2023 4.25% 2024 4.40% 2025 4.55% 2026 • 4.70% 2027 4.85% 2028 5.00% 2029 5.10% 2030 5.20% 2031 5.25% 2032-2036, (Continued) • REOFFERING SCHEDULE OF THE PURCHASER Rate Year Yield 0.85% 2012 0.72% 1.00% 2013 0.92% 1.25% 2014 1.16% 2.00% 2015 1.80% 2.25% 2016 2.10% 2.75% 2017 2.52% 2.875% 2018 2.67% 3.60% 2019 3.34% 3.70% 2020 3.44% 3.75% 2021 3.54% 4.00% 2022 Par 4.00% 2023 Par 4.00% 2024 Par 4.00% 2025 Par 4.375% 2026 4.44% 4.60% 2027 Par 4.70% 2028 Par 4.80% 2029 Par 4.90% 2030 Par 5.00% 2031 Par • 5.00% 2032 Par 5.00% 2033 Par 5.15% 2034 Par 5.15% 2035 Par 5.15% 2036 Par BBI: 3.89% Average Maturity: 14.989 Years * Subsequent to bid opening, the issue size was not changed. i EXHIBIT B TAX LEVY SCHEDULE (Transit Portion) $2,475,000 City of Rochester, Minnesota Taxable General Obligation Bonds, Series 2010A (Build America Bonds- Direct Pay) -Transit Post-Sale Tax Levies Pay Year Principal Coupon Interest Gross P+I 105%Gross Levy Amount Levy/Colle Federal 02/01/2012 - - 129,613.45 129,613.46 136,094.13 136,094.13 2010/11 45,364.70 02/01/2013 80,000.00 1.000% 100,997.50 180,997.50 190,047.38 190,047.38 2011/12 35,349.12 02/01/2014 80,000.00 1.250% 100,197.50 180,197.50 189,207.38 189,207.38 2012/13 35,069.12 02/01/2015 80,000.00 2.000% 99,197.50 179,197.50 188,157.38 188,157.38 2013/14 34,719.12 02/01/2016 80,000.00 2.250% 97,597.50 177,597.50 186,477.38 186,477.38 2014/15 34,159.12 02/01/2017 80,000.00 2.750% 95,797.50 175,797.50 184,587.38 184,587.38 2015/16 33,529.12 02/01/2018 85,000.00 2.875% 93,597.50 178,597.50 187,527.38 187,527.38 2016/17 32,759.12 02/01/2019 85,000.00 3.600% 91,153.75 176,153.75 184,961.44 184,961.44 2017/18 31,903.80 02/01/2020 85,000.00 3.700% 88,093.75 173,093.75 181,748.44 181,748.44 2018/19 30,832.80 02/01/2021 90,000.00 3.750% 84,948.75 174,948.75 183,696.19 183,696.19 2019/20 29,732.06 • 02/01/2022 90.000.00 4.000% 81,573.75 171,573.75 180,152.44 180,152.44 2020/21 28,550.80 02/01/2023 95,000.00 4.000% 77,973.75 172,973.75 181,622.44 181,622.44 2021/22 27,290.80 02/01/2024 95.000.00 4.000% 74,173.75 169,173.75 177,632.44 177,632.44 2022/23 25,960.80 02/01/2025 100,000.00 4.000% 70,373.75 170,373.75 178,892.44 178,892.44 2023/24 24,630.80 02/01/2026 105,000.00 4.375% 66,373.75 171,373.75 179,942.44 179,942.44 2024/25 23,230.80 02/01/2027 105,000.00 4.600% 61,780.00 166,780.00 175,119.00 175,119.00 2025/26 21,623.00 02/01/2028 110,000.00 4.700% 56,950.00 166,950.00 175,297.50 175,297.50 2026127 19,932.50 02/01/2029 115,000.00 4.800% 51,780.00 166,780.00 175,119.00 175,119.00 2027128 18,123.00 02/01/2030 120,000.00 4.900% 46,260.00 166,260.00 174,573.00 174,573.00 2028129 16,191.00 02/01/2031 120,000.00 5.000% 40,380.00 160,380.00 168,399.00 168,399.00 2029/30 14,133.00 02/01/2032 125,000.00 5.000% 34,380.00 159,380.00 167,349.00 167,349.00 2030/31 12,033.00 02/01/2033 130,000.00 5.000% 28,130.00 158,130.00 166,036.50 166,036.50 2031/32 9,845.50 02/01/2034 135,000.00 5.150% 21,630.00 156,630.00 164,461.50 164,461.50 2032133 7,570.50 02/01/2035 140,000.00 5.150% 14,677.50 154,677.50 162,411.38 162,411.38 2033/34 5.137.12 02/01/2036 145,000.00 5.150% 7,467.50 152,467.50 160,090.88 160,090.88 2034/35 1 2,613.62 Total $2,475,000.00 - $1,715,098.46 $4,190,098.40 $4,399,603.38 $4,399,603.38 - $600,284.32 • 374774vl MMDRC110-21 B-1 • TAX LEVY SCHEDULE (Public Works Portion) $23,800,000 City of Rochester, Minnesota Taxable General Obligation Bonds, Series 2010A (Build America Bonds- Direct Pay)- Public Works Post-Sale Tax Levies Pay Year Principal Coupon Interest Gross P+I 105%Gross Levy Amount Levy/Colle Federal Credit 02/01/2012 - - 1,247,562.02 1,247,562.02 1,309,940.12 1,309,940.12 2010/11 436,646.70 02/01/2013 745,000.00 1.000% 972,126.25 1,717,126.25 1,802,982.56 1,802,982.56 2011/12 340,244.18 02/01/2014 755,000.00 .1.250% 964,676.25 1,719,676.25 1,805,660.08 1,805,660,06 2012113 337,636.68 02/01/2015 765,000.00 2.000% 955,238.75 1,720,238.75 1,806,250.69 1,806,250.69 2013/14 334,333.56 02/0112016 775,000.00 2.250% 939,938.75 1,714,938.75 1,800,685.69 1,800,685.69 2014/15 328,978.56 02/01/2017 790,000.00 2.750% 922,501.25 1,712,501.25 1,798,126.31 1,798,126.31 2015/16 322,875.42 02/01/2018 805,000.00 2.875% 900,776.25 1,705,776.25 1,791,065.06 1,791,065.06 2016/17 315,271.68 02/01/2019 820,000.00 3,600% 877,632.50 1,697,632.50 1,782,514.13 1,782,514.13 2017/18 307,171.36 02/01/2020 840,000.00 3.700% 848,112.50 1,688,112.50 1,772,518.13 1,772,518.13 2018/19 296,839.36 02/01/2021 860,000.00 3.750% 817,032.50 1,677,032.50 1,760,884.13 1,760,884,13 2019/20 285,961.36 02/01/2022 880,000.00 4.000% 784,782.50 1,664,782.50 1,748,021.63 1,748,021.63 2020121 274,673.86 02/01/2023 905,000.00 4.000% 749,582.50 1,654,582.50 1,737,311.63 1,737,311.63 2021/22 262.353.86 02/01/2024 935,000.00 4.000% 713,382.50 1,648,382.50 1,730,801.63 1,730,801.63 2022/23 249,683.86 02/01/2025 960,000.00 4,000% 675,982.50 1,635,9112.50 1,717,7111.63 1,717,781,63 2023/24 236,593.86 • 02/01/2026 990,000.00 4.375% 637,582.50 1,627,582.50 1,708,961.63 1,708,961.63 2024/25 223,153.86 02/01/2027 1,020,000.00 4.600% 594,270.00 1,614,270.00 1,694,983.50 1,694,983.50 2025126 207,994.50 02/01/2028 1,055,000.00 4.700% 547,350.00 1,602,350.00 1,682,467.50 1,682,467.50 2026127 191,572.50 02/01/2029 1,090,000.00 4.800% 497,765.00 1,587,765.00 1,667,153.25 1,667,153.25 2027128 174,217.74 02/01/2030 1,130,000.00 4.900% 445.445.00 1,575,445.00 1,654,217.25 1,654,217.25 2028129 155,905.74 02/01/2031 1,165,000,00 5.000% 390,075.00 1,555,075.00 1,632,828.75 1,632,828.75 2029/30 136,526.24 02/01/2032 1,210,000.00 5.000% 331,825.00 1,541,825.00 1,618,916.25 1,618,916.25 2030/31 116,138.74 02/01/2033 1,255,000.00 5.000% 271,325.00 1,526,325.00 1,602,641.25 1,602,641.25 2031/32 94,963.74 02/01/2034 1,300,000.00 5.150% 208,575.00 1,508,575.00 1,584,003.75 1,584,003.75 2032/33 73,001.24 02/01/2035 1,350,000.00 5.150% 141,625.00 1,491,625.00 1,566,206.25 1,566,206.25 2033/34 49,568.74 02/01/2036 1,400,000.00 5.150% 72,100.00 1,472,100.00 1,545,705.00 1,545,705.00 2034/35 1 25,235.00 Total $23,800,000.00 - $16,507,264.52 $40,307,264.52 $42,322,627.75 $42,322,627.75 - $5,777,542.34 3747741 NOMRC110-21 B-2 • TAX LEVY SCHEDULE (Equipment Portion) $425,000 City of Rochester, Minnesota Taxable General Obligation Bonds, Series 2010A (Build America Bonds- Direct Pay)- Equipment Post-Sale Tax Levies Pay Year Principal Coupon Interest Gross P+I 105%Gross Levy Levy/Collect Federal Credit 02/01/2012 50,000.00 0.850% 12,416.25 62,416.25 65,537.06 65,537.06 2010/11 4,345.68 02/01/2013 45,000.00 1.000% 9,250.00 54,250.00 56,962.50 56,962.50 2011/12 3,237.50 02/01/2014 45,000.00 1.250% 8,B00.00 53,800.00 55,490.00 56,490.00 2012/13 3,080.00 02/01/2015 45,000.00 2.000% 8,237.50 53,237.50 55,899.38 55,899.38 2013114 2,BB3.12 02/01/2016 45,000.00 2.250% 7,337.50 52,337.50 54,954.3E 54,954.38 2014/15 2,568.12 02/01/2017 45,000.00 2.750% 6,325.00 51,325.00 53,891.25 53,891.25 2015116 2,213.74 02/01/2018 50,000.00 2.875% 5,087.50 55,087.50 57,841.88 57,841.88 2016/17 1,780.62 02/01/2019 50,000.00 3.600% 3,650.00 53,650.00 56,332.50 56,332.50 2017/18 1,277.50 02/01/2020 50,000.00 3.700% 1,850.00 51,850.00 54.442.50 54,442.50 2018/19 647.50 Total $425,000.00 - $62,953.75 $487,953.75 $512,351.44 $512,351.44 $22,033.78 * Year tax levy collected. 374774v1 MIvM RC110-21 B-3