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Bonds, Refunding, Series 2006C . D~~%duE ~ck~ MEMORANDUM April 1 0, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Procedure to Complete Action of Issuance of $3,525,000 General Obligation Refunding Bonds, Series 2006C to Partially Refund $2,750,000 General Obligation Bonds, Series 2000B, dated June 1, 2000, and $6,290,000 General Obligation Bonds, Series 2000C, dated November 1, 2000 Finance Director Ken TeKippe is recommending the procedure to complete action of issuance of $3,525,000 General Obligation Refunding Bonds, Series 2006C to partially refund $2,750,000 General Obligation Bonds, Series 2000B dated June 1, 2000, and $6,290,000 General Obligation Bonds, Series 2000C, dated November 1, 2000. The first resolution appoints Wells Fargo Bank, National Association of Des Moines, Iowa, to serve as paying agent, bond registrar, and transfer agent, and authorizing the execution of the agreement. The second resolution authorizes approval of Tax Exemption Certificate, approval of Continuing Disclosure Certificate and authorizes the issuance of the bonds. I concur with the recommendation and respectfully request Mayor and City Council approval. (It { L1/1rJ( Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Ken TeKippe, Finance Director ,'.... 5~~~E ~t/de-~ Memorandum TO: Michael C. Van Milligen, City Manager FROM: Ken TeKippe, Finance Director ~C?~ SUBJECT: Procedure to Complete Action of Issuance of $3,525,000 General Obligation Refunding Bonds, Series 2006C to Partially Refund $2,750,000 General Obligation Bonds, Series 2000B dated June 1, 2000 and $6,290,000 General Obligation Bonds, Series 2000C dated November 1, 2000 DATE: April 10, 2006 The purpose of this memorandum is to provide suggested proceedings to complete the action required on the recent bond issue. The first resolution appoints Wells Fargo Bank, National Association of Des Moines, Iowa to serve as paying agent, bond registrar, and transfer agent, approving the paying agent and bond registrar and transfer agent agreement and authorizing the execution of the agreement. The second resolution authorizes approval of Tax Exemption Certificate, approval of Continuing Disclosure Certificate and authorizes the issuance of the bonds in accordance with the terms of the bid previously accepted by the City Council on the date of the sale. This is the final City Council action required on the bond issue. KT/jg Enclosures Council Member Joyce Connors introduced the following resolution entitled "RESOLUTION APPOINTING WELLS FARGO BANK, NATIONAL ASSOCIATION OF DES MOINES, IOWA, TO SERVE AS PAYING AGENT, BOND REGISTRAR, AND TRANSFER AGENT, APPROVING THE PAYING AGENT AND BOND REGISTRAR AND TRANSFER AGENT AGREEMENT AND AUTHORIZING THE EXECUTION OF THE AGREEMENT", and moved that the resolution be adopted. Council Member Kevin Lynch seconded the motion to adopt. The roll was called and the vote was, AYES: Braig, Buol, Cline, Connors, Jones, Lynch, Michalski NAYS: None Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION #142-06 RESOLUTION APPOINTING WELLS FARGO BANK, NATIONAL ASSOCIATION OF DES MOINES, IOWA, TO SERVE AS PAYING AGENT, BOND REGISTRAR, AND TRANSFER AGENT, APPROVING THE PAYING AGENT AND BOND REGISTRAR AND TRANSFER AGENT AGREEMENT AND AUTHORIZING THE EXECUTION OF THE AGREEMENT WHEREAS, pursuant to the provisions of Chapter 75 of the Code ofIowa, $3,525,000 General Obligation Refunding Bonds, Series 2006C, dated the date of delivery, have been sold at public sale and action should now be taken to provide for the maintenance of records, registration of certificates and payment of principal and interest in connection with the issuance of the Bonds; and WHEREAS, this Council has deemed that the services offered by Wells Fargo Bank, National Association of Des Moines, Iowa, are necessary for compliance with rules, regulations, and requirements governing the registration, transfer and payment of registered Bonds; and -2- . . . . . WHEREAS, a Paying Agent, Bond Registrar and Transfer Agent Agreement (hereafter "Agreement") has been prepared to be entered into between the City and Wells Fargo Bank, National Association. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE, IOWA: Section I. That Wells Fargo Bank, National Association of Des Moines, Iowa, is hereby appointed to serve as Paying Agent, Bond Registrar and Transfer Agent in connection with the issuance of$3,525,000 General Obligation Refunding Bonds, Series 2006C, dated the date of delivery. Section 2. That the Agreement with Wells Fargo Bank, National Association of Des Moines, Iowa, is hereby approved and that the Mayor and Clerk are authorized to sign the Agreement on behalf of the City. PASSED AND APPROVED this l7th day of April, 2006. Roy D. Buol, Mayor ATTEST: Jeanne F. Schneider, City Clerk -3- . AYES: Braig, Buol, Cline, Connors, Jones, Lynch, Michalski NAYS: None Whereupon, the Mayor declared said Resolution duly adopted as follows: RESOLUTION #143-06 RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF $3,525,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2006C, AND LEVYING A TAX TO PAY SAID BONDS WHEREAS, the Issuer is duly incorporated, organized and exists under and by virtue of the laws and Constitution of the State ofIowa; and WHEREAS, the Issuer is in need of funds to pay costs of refunding and refinancing of outstanding City indebtedness, consisting of the General Obligation Bonds, Series 2000B, dated June 1,2000, and the General Obligation Bonds, Series 2000C, dated November 1,2000, an essential corporate purpose, and it is deemed necessary and advisable that General Obligation Refunding Bonds in the amount of $3,525,000 be issued for said purpose; and WHEREAS, pursuant to notice published as required by Section 384.25 of said Code, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of said Bonds, and the Council is therefore now authorized to proceed with the issuance of said Bonds; and WHEREAS, pursuant to the provisions of Chapter 75 of the Code ofIowa, the above mentioned bonds were heretofore sold at public sale and action should now be taken to issue said bonds conforming to the terms and conditions of the best bid received at the advertised public sale: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Definitions. The following terms shall have the following meanings in this Resolution unless the text expressly or by necessary implication requires otherwise: -3- . "Authorized Denominations" shall mean $5,000 or any integral multiple thereof. . "Beneficial Owner" shall mean the person in whose name such Bond is recorded as the beneficial owner of a Bond by a Participant on the records of such Participant or such person's subrogee. . "Bond Fund" shall mean the fund created in Section 3 of this Resolution. . "Bonds" shall mean $3,525,000 General Obligation Bonds, Series 2006C, authorized to be issued by this Resolution. . "Cede & Co." shall mean Cede & Co., the nominee ofDTC, and any successor nominee ofDTC with respect to the Bonds. . "Continuing Disclosure Certificate" shall mean that certain Continuing Disclosure Certificate executed by the Issuer 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. . "Depository Bonds" shall mean the Bonds as issued in the form of one global certificate for each maturity, registered in the Registration Books maintained by the Registrar in the name ofDTC or its nominee. . "DTC" shall mean The Depository Trust Company, New York, New York, a limited purpose trust company, or any successor book -entry securities depository appointed for the Bonds. . "Escrow Fund" shall mean the fund required to be established by this Resolution for the deposit of the proceeds of the Bonds. . "Issuer" and "City" shall mean the City of Dubuque, Iowa. . "Participants" shall mean those broker-dealers, banks and other financial institutions for which DTC holds Bonds as securities depository. . "Paying Agent" shall mean Wells Fargo Bank, National Association, or such successor as may be approved by Issuer as provided herein and who shall -4- carry out the duties prescribed herein as Issuer's agent to provide for the payment of principal of and interest on the Bonds as the same shall become due. . "Rebate Fund" shall mean the fund so defined in and established pursuant to the Tax Exemption Certificate. . "Refunded Bonds" shall mean the 2010 through 2020 principal maturities ofthe General Obligation Bonds, Series 2000B, dated June 1,2000, and the 2018 through 2020 principal maturities of the General Obligation Bonds, Series 2000C, dated November 1,2000. . "Representation Letter" shall mean the Blanket Issuer Letter of Representations executed and delivered by the Issuer to DTC. . "Resolution" shall mean this resolution authorizing the Bonds. . "Tax Exemption Certificate" shall mean the Tax Exemption Certificate executed by the Treasurer and delivered at the time of issuance and delivery ofthe Bonds. . "Treasurer" shall mean the City Treasurer or such other officer as shall succeed to the same duties and responsibilities with respect to the recording and payment of the Bonds issued hereunder. Section 2. Levy and Certification of Annual Tax: Other Funds to be Used. (a) Levy of Annual Tax. That for the purpose of providing funds to pay the principal and interest of the Bonds hereinafter authorized to be issued, there is hereby levied for each future year the following direct annual tax on all of the taxable property in Dubuque, Iowa, to-wit: -5- AMOUNT FISCAL YEAR (JULY 1 TO JUNE 30) YEAR OF COLLECTION: $289,401 139,098 304,098 303,075 301,785 305,223 298,285 301,255 298,748 300,948 732,653 731,653 744,315 2007/2008 2008/2009 2009/2010 2010/2011 201112012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 (NOTE: For example the levy to be made and certified against the taxable valuations of January 1, 2005, will be collected during the fiscal year commencing July 1, 2006). (b) Resolution to be Filed With County Auditor. A certified copy of this Resolution should be filed with the County Auditor of Dubuque County, Iowa, and said Auditor is hereby instructed in and for each of the years as provided, to levy and assess the tax hereby authorized in Section 2 of this Resolution, in like manner as other taxes are levied and assessed, and such taxes so levied in and for each of the years aforesaid be collected in like manner as other taxes of the City are collected, and when collected be used for the purpose of paying principal and interest on said Bonds issued in anticipation of said tax, and for no other purpose whatsoever. (c) Additional City Funds Available. Principal and interest coming due at any time when the proceeds of said tax on hand shall be insufficient to pay the same shall be promptly paid when due from current funds of the City available for that purpose and reimbursement shall be made from such special fund in the amounts thus advanced. Section 3. Bond Fund. Said tax shall be collected each year at the same time and in the same manner as, and in addition to, all other taxes in and for the City, and when -6- collected they shall be converted into a special fund within the Debt Service Fund to be known as the "GENERAL OBLIGATION REFUNDING BOND FUND 2006C" (the "Bond Fund"), which is hereby pledged for and shall be used only for the payment ofthe principal of and interest on the Bonds hereinafter authorized to be issued; and also there shall be apportioned to said fund its proportion of taxes received by the City from property that is centrally assessed by the State of Iowa. Section 4. Deposit of Proceeds In Escrow. The proceeds derived from the sale of the Bonds herein authorized shall be placed in escrow with Wells Fargo Bank, N.A. of Dubuque, Iowa, as Trustee under the Refunding Trust Agreement, which Trustee shalll) hold such proceeds in a special and irrevocable trust fund, 2) invest such proceeds only in cash or direct obligations of the United States, and 3) apply such proceeds and earnings thereon only in accordance with the terms and conditions of the Refunding Trust Agreement in such manner that the amounts deposited will be sufficient, without the need of any further investment or reinvestment to retire all of the Refunded Bonds on June l, 2009. All the terms and conditions of the Refunding Trust Agreement are hereby incorporated by reference in this Resolution as if set forth herein in full. The Refunding Trust Agreement is hereby approved and confirmed as binding upon the Issuer, and the Mayor and City Clerk are hereby authorized to execute the same on behalf of the Issuer. Section 5. Investments of Bond Fund Proceeds. All moneys held in the Bond Fund, provided for by Section 3 of this Resolution shall be invested in investments permitted by Chapter l2B, Code ofIowa, 2005 (formerly Chapter 452, Code ofIowa, as amended) or deposited in financial institutions which are members of the Federal Deposit Insurance Corporation and the deposits in, which are insured thereby and all such deposits exceeding the maximum amount insured from time to time by FDIC or its equivalent successor in anyone financial institution shall be continuously secured in compliance with the State Sinking Fund provided under Chapter l2C ofthe Code ofIowa, 2005, as amended or otherwise by a valid pledge of direct obligations of the United States Government having an equivalent market value. All such interim investments shall mature before the date on which the moneys are required for payment of principal of or interest on the Bonds as herein provided. Section 6. Bond Details, Execution and Redemption. (a) Bond Details. General Obligation Refunding Bonds, Series 2006C, of the City in the amount of$3,525,000, shall be issued pursuant to the provisions of Section 384.25 of the City Code ofIowa for the aforesaid purpose. The Bonds shall be designated "GENERAL OBLIGATION REFUNDING BOND, SERIES 2006C", dated the date of delivery, and bear interest from the date thereof, until payment thereof, at the office of the .7. Paying Agent, said interest payable on December I, 2006, and semiannually thereafter on the 1st day of June and December in each year until maturity at the rates hereinafter provided. The Bonds shall be executed by the manual or facsimile signature of the Mayor and attested by the manual or facsimile signature of the Clerk, and impressed or printed with the seal of the City and shall be fully registered as to both principal and interest as provided in this Resolution; principal, interest and premium, if any, shall be payable at the office of the Paying Agent by mailing of a check to the registered owner of the Bond. The Bonds shall be in the denomination of$5,000 or multiples thereof. The Bonds shall mature and bear interest as follows: Interest Principal Maturity Rate Amount June 1st 3.65% $165,000 2010 3.70 170,000 2011 3.75 175,000 2012 3.75 185,000 2013 3.80 185,000 2014 3.85 195,000 2015 3.90 200,000 2016 3.95 210,000 2017 4.00 650,000 2018 4.05 675,000 2019 4.10 715,000 2020 (b) Redemption. Bonds maturing after June I, 2014 may be called for redemption by the Issuer and paid before maturity on said date or any date thereafter, from any funds regardless of source, in whole or from time to time in part, in any order of maturity and within an annual maturity by lot. The terms of redemption shall be par, plus accrued interest to date of call. Thirty days' notice of redemption shall be given by certified mail to the registered owner of the Bond. Failure to give such notice by mail to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds. All bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment. -8- If selection by lot within a maturity is required, the Registrar shall designate the bonds to be redeemed by random selection of the names of the registered owners of the entire annual maturity until the total amount of bonds to be called has been reached. Section 7. Issuance of Bonds in Book-Entry Form: Replacement Bonds. (a) Notwithstanding the other provisions of this Resolution regarding registration, ownership, transfer, payment and exchange of the Bonds, unless the Issuer determines to permit the exchange of Depository Bonds for Bonds in the Authorized Denominations, the Bonds shall be issued as Depository Bonds in denominations of the entire principal amount of each maturity of Bonds (or, if a portion of said principal amount is prepaid, said principal amount less the prepaid amount); and such Depository Bonds shall be registered in the name of Cede & Co., as nominee ofDTC. Payment of semi-annual interest for any Depository Bond shall be made by wire transfer or New York Clearing House or equivalent next day funds to the account of Cede & Co. on the interest payment date for the Bonds at the address indicated in or pursuant to the Representation Letter. (b) With respect to Depository Bonds, neither the Issuer nor the Paying Agent shall have any responsibility or obligation to any Participant or to any Beneficial Owner. Without limiting the immediately preceding sentence, neither the Issuer nor the Paying Agent shall have any responsibility or obligation with respect to (i) the accuracy of the records of DTC or its nominee or of any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant, any Beneficial Owner or any other person, other than DTC or its nominee, of any notice with respect to the Bonds, (iii) the payment to any Participant, any Beneficial Owner or any other person, other than DTC or its nominee, of any amount with respect to the principal of, premium, if any, or interest on the Bonds, or (iv) the failure ofDTC to provide any information or notification on behalf of any Participant or Beneficial Owner. The Issuer and the Paying Agent may treat DTC or its nominee as, and deem DTC or its nominee to be, the absolute owner of each Bond for the purpose of payment of the principal of, premium, if any, and interest on such Bond, for the purpose of all other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes whatsoever (except for the giving of certain Bondholder consents, in accordance with the practices and procedures ofDTC as may be applicable thereto). The Paying Agent shallpay all principal of, premium, ifany, and interest on the Bonds only to or upon the order of the Bondholders as shown on the Registration Books, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the principal of, premium, if any, and -9- interest on the Bonds to the extent so paid. Notwithstanding the provisions of this Resolution to the contrary (including without limitation those provisions relating to the surrender of Bonds, registration thereof, and issuance in Authorized Denominations), as long as the Bonds are Depository Bonds, full effect shall be given to the Representation Letter and the procedures and practices ofDTC thereunder, and the Paying Agent shall comply therewith. (c) Upon (i) a determination by the Issuer that DTC is no longer able to carry out its functions or is otherwise determined unsatisfactory, or (ii) a determination by DTC that the Bonds are no longer eligible for its depository services or (iii) a determination by the Paying Agent that DTC has resigned or discontinued its services for the Bonds, if such substitution is authorized by law, the Issuer shall (A) designate a satisfactory substitute depository as set forth below or, if a satisfactory substitute is not found, (B) provide for the exchange of Depository Bonds for replacement Bonds in Authorized Denominations. (d) To the extent authorized by law, if the Issuer determines to provide for the exchange of Depository Bonds for Bonds in Authorized Denominations, the Issuer shall so notify the Paying Agent and shall provide the Registrar with a supply of executed unauthenticated Bonds to be so exchanged. The Registrar shall thereupon notify the owners of the Bonds and provide for such exchange, and to the extent that the Beneficial Owners are designated as the transferee by the owners, the Bonds will be delivered in appropriate form, content and Authorized Denominations to the Beneficial Owners, as their interests appear. ( e) Any substitute depository shall be designated in writing by the Issuer to the Paying Agent. Any such substitute depository shall be a qualified and registered "clearing agency" as provided in Section 17 A of the Securities Exchange Act of 1934, as amended. The substitute depository shall provide for (i) immobilization of the Depository Bonds, (ii) registration and transfer of interests in Depository Bonds by book entries made on records of the depository or its nominee and (iii) payment of principal of, premium, if any, and interest on the Bonds in accordance with and as such interests may appear with respect to such book entries. -10- Section 8. Registration of Bonds: Appointment of Registrar: Transfer: Ownership: Delivery: and Cancellation. (a) Registration. The ownership of Bonds may be transferred only by the making of an entry upon the books kept for the registration and transfer of ownership of the Bonds, and in no other way. Wells Fargo Bank, National Association is hereby appointed as Bond Registrar under the terms of this Resolution (and under the provisions of a separate agreement with the Issuer filed herewith which is made a part hereof by this reference.) Registrar shall maintain the books of the Issuer for the registration of ownership of the Bonds for the payment of principal of and interest on the Bonds as provided in this Resolution. All Bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section 384.31 of the Code ofIowa, subject to the provisions for registration and transfer contained in the Bonds and in this Resolution. (b) Transfer. The ownership of any Bond may be transferred only upon the Registration Books kept for the registration and transfer of Bonds and only upon surrender thereof at the office of the Registrar together with an .assignment duly executed by the holder or his duly authorized attorney in fact in such form as shall be satisfactory to the Registrar, along with the address and social security number or federal employer identification number of such transferee (or, if registration is to be made in the name of multiple individuals, of all such transferees). In the event that the address of the registered owner of a Bond (other than a registered owner which is the nominee of the broker or dealer in question) is that ofa broker or dealer, there must be disclosed on the Registration Books the information pertaining to the registered owner required above. Upon the transfer of any such Bond, a new fully registered Bond, of any denomination or denominations permitted by this Resolution in aggregate principal amount equal to the unmatured and unredeemed principal amount of such transferred fully registered Bond, and bearing interest at the same rate and maturing on the same date or dates shall be delivered by the Registrar. (c) Registration of Transferred Bonds. In all cases of the transfer of the Bonds, the Registrar shall register, at the earliest practicable time, on the Registration Books, the Bonds, in accordance with the provisions of this Resolution. (d) Ownership. As to any Bond, the person in whose name the ownership of the same shall be registered on the Registration Books of the Registrar shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of any such Bonds and the premium, if any, and interest thereon shall be made only to or upon the order of the registered owner thereof or his legal representative. -I 1- All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. (e) Cancellation. All Bonds which have been redeemed shall not be reissued but shall be cancelled by the Registrar. All Bonds which are cancelled by the Registrar shall be destroyed and a certificate of the destruction thereof shall be furnished promptly to the Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the cancelled Bonds to the Issuer. (t) Non-Presentment of Bonds. In the event any payment check representing payment of principal of or interest on the Bonds is returned to the Paying Agent or if any bond is not presented for payment of principal at the maturity or redemption date, if funds sufficient to pay such principal of or interest on Bonds shall have been made available to the Paying Agent for the benefit ofthe owner thereof, all liability of the Issuer to the owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit ofthe owner of such Bonds who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Resolution or on, or with respect to, such interest or Bonds. The Paying Agent's obligation to hold such funds shall continue for a period equal to two years and six months following the date on which such interest or principal became due, whether at maturity, or at the date fixed for redemption thereof, or otherwise, at which time the Paying Agent, shall surrender any remaining funds so held to the Issuer, whereupon any claim under this Resolution by the Owners of such interest or Bonds of whatever nature shall be made upon the Issuer. (g) Registration and Transfer Fees. The Registrar may furnish to each owner, at the Issuer's expense, one bond for each annual maturity. The Registrar shall furnish additional bonds in lesser denominations (but not less than the minimum denomination) to an owner who so requests. Section 9. Reissuance of Mutilated. Destroyed. Stolen or Lost Bonds. In case any outstanding Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall at the request of Registrar authenticate and deliver a new Bond of like tenor and amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond to Registrar, upon surrender of such mutilated Bond, or in lieu of and substitution for the Bond destroyed, stolen or lost, upon filing with the Registrar evidence satisfactory to the Registrar and Issuer that such Bond has been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Registrar and Issuer with satisfactory indemnity and complying with such other reasonable regulations as the Issuer -12- or its agent may prescribe and paying such expenses as the Issuer may incur in connection therewith. Section 10. Record Date. Payments of principal and interest, otherwise than upon full redemption, made in respect of any Bond, shall be made to the registered holder thereof or to their designated agent as the same appear on the books of the Registrar on the 15th day preceding the payment date. All such payments shall fully discharge the obligations of the Issuer in respect of such Bonds to the extent of the payments so made. Payment of principal shall only be made upon surrender of the Bond to the Paying Agent. Section II. Execution. Authentication and Delivery of the Bonds. Upon the adoption of this Resolution, the Mayor and Clerk shall execute and deliver the Bonds to the Registrar, who shall authenticate the Bonds and deliver the same to or upon order of the Purchaser. No Bond shall be valid or obligatory for any purpose or shall be entitled to any right or benefit hereunder unless the Registrar shall duly endorse and execute on such Bond a Certificate of Authentication substantially in the form of the Certificate herein set forth. Such Certificate upon any Bond executed on behalf of the Issuer shall be conclusive evidence that the Bond so authenticated has been duly issued under this Resolution and that the holder thereof is entitled to the benefits of this Resolution. No Bonds shall be authenticated and delivered by the Registrar unless and until there shall have been provided the following: 1. A certified copy of the Resolution ofIssuer authorizing the issuance of the Bonds; 2. A written order ofIssuer signed by the Treasurer of the Issuer directing the authentication and delivery of the Bonds to or upon the order of the Purchaser upon payment of the purchase price as set forth therein; 3. The approving opinion of Ahlers & Cooney, P.C., Bond Counsel, concerning the validity and legality of all the Bonds proposed to be issued. Section 12. Right to Name Substitute Paying Agent or Registrar. Issuer reserves the right to name a substitute, successor Registrar or Paying Agent upon giving prompt written notice to each registered bondholder. -13- Section 13. Form of Bond. Bonds shall be printed in substantial compliance with standards proposed by the American Standards Institute substantially in the form as follows: I (0) I I (0) I I (7) I I (8) I I (I) I I (2) I I (J) I I (4) I I ()) I (9) I (9a) I (10) (Continued on the back of this Bond) I (11)(Il)(U) I I (14) I I (I)) I FIGURE 1 (Front) -14- (10) (Continued) (16) FIGURE 2 (Back) -15- The text of the Bonds to be located thereon at the item numbers shown shall be as follows: Item I, figure I = "STATE OF IOWA" "COUNTY OF DUBUQUE" "CITY OF DUBUQUE" "GENERAL OBLIGATION REFUNDING BONDS" "SERIES 2006C" Item 2, figure I = Rate: Item 3, figure I = Maturity: Item 4, figure I = Bond Date: May 2, 2006 Item 5, figure I = Cusip No.: Item 6, figure I = "Registered" Item 7, figure I = Certificate No. Item 8, figure I = Principal Amount: $ Item 9, figure I = The City of Dubuque, Iowa, a municipal corporation organized and existing under and by virtue of the Constitution and laws of the State of Iowa (the "Issuer"), for value received, promises to pay from the source and as hereinafter provided, on the maturity date indicated above, to Item 9A, figure I = (Registration panel to be completed by Registrar or Printer with name of Registered Owner). Item 10, figure I = or registered assigns, the principal sum of (principal amount written out) THOUSAND DOLLARS in lawful money of the United States of America, on the maturity date shown above, only upon presentation and surrender hereof at the office of Wells Fargo Bank, National Association, Paying Agent ofthis issue, or its successor, with interest on said sum from the date hereof until paid at the rate per annum specified above, payable on December 1,2006, and semiannually thereafter on the 1st day of June and December in each year. Interest and principal shall be paid to the registered holder of the Bond as shown on the records of ownership maintained by the Registrar as of the 15th day preceding such interest payment date. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. This Bond is issued pursuant to the provisions of Section 384.25 of the City Code of Iowa, for the purpose of paying costs of refunding and refinancing of outstanding City -16- indebtedness, consisting of the General Obligation Bonds, Series 2000B, dated June 1, 2000, and the General Obligation Bonds, Series 2000C, dated November 1, 2000, in conformity to a Resolution of the Council of said City duly passed and approved. Unless this certificate is presented by an authorized representative of The Depository Trust Company, a limited purpose trust company (tlDTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative ofDTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative ofDTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. Bonds maturing after June 1,2014 may be called for redemption by the Issuer and paid before maturity on said date or any date thereafter, from any funds regardless of source, in whole or from time to time in part, in any order of maturity and within an annual maturity by lot. The terms of redemption shall be par, plus accrued interest to date of call. Thirty days' notice of redemption shall be given by certified mail to the registered owner of the Bond. Failure to give such notice by mail to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds. All bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment. If selection by lot within a maturity is required, the Registrar shall designate the bonds to be redeemed by random selection of the names of the registered owners of the entire annual maturity until the total amount of bonds to be called has been reached. Ownership ofthis Bond may be transferred only by transfer upon the books kept for such purpose by Wells Fargo Bank, National Association, the Registrar. Such transfer on the books shall occur only upon presentation and surrender of this Bond at the office of the Registrar as designated below, together with an assignment duly executed by the owner hereof or his duly authorized attorney in the form as shall be satisfactory to the Registrar. Issuer reserves the right to substitute the Registrar and Paying Agent but shall, however, promptly give notice to registered bondholders of such change. All bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section -17- 384.31 of the Code ofIowa, subject to the provisions for registration and transfer contained in the Bond Resolution. This Bond is a "qualified tax-exempt obligation" designated by the City for purposes of Section 265(b)(3)(B) of the Internal Revenue Code of 1986. And it is hereby represented and certified that all acts, conditions and things requisite, according to the laws and Constitution of the State of Iowa, to exist, to be had, to be done, or to be performed precedent to the lawful issue of this Bond, have been existent, had, done and performed as required by law; that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within the territory of the Issuer for the payment of the principal and interest of this Bond as the same will respectively become due; that the faith, credit, revenues and resources and all the real and personal property of the Issuer are irrevocably pledged for the prompt payment hereof, both principal and interest; and the total indebtedness of the Issuer including this Bond, does not exceed the constitutional or statutory limitations. IN TESTIMONY WHEREOF, the Issuer by its Council, has caused this Bond to be signed by the manual signature of its Mayor and attested by the manual signature of its City Clerk, with the seal of said City impressed hereon, and to be authenticated by the manual signature of an authorized representative of the Registrar, Wells Fargo Bank, National Association, Des Moines, Iowa. Item II, figure 1 = Date of authentication: Item 12, figure 1 = This is one oftht;Bonds described in the within mentioned Resolution, as registered by Wells Fargo Bank, National Association. WELLS FARGO BANK, NATIONAL ASSOCIATION, Registrar By: Authorized Signature Item 13, figure 1 = Registrar and Transfer Agent: Wells Fargo Bank, National Association Paying Agent: Wells Fargo Bank, National Association SEE REVERSE FOR CERTAIN DEFINITIONS -18- Item 14, figure I = (Seal) Item 15, figure I = [Signature Block] CITY OF DUBUQUE, IOWA By: (manual signature) Mayor ATTEST: By: (manual signature) City Clerk Item 16, figure 2 = [Assignment Block] [Information Required for Registration] ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto (Social Security or Tax Identification No. ) the within Bond and does hereby irrevocably constitute and appoint attorney in fact to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated (Person(s) executing this Assignment sign(s) here) SIGNATURE ) GUARANTEED) IMPORTANT ~ READ CAREFULLY The signature(s) to this Power must correspond with the name(s) as written upon the face of the certificate(s) or bond(s) in every particular without alteration or enlargement or any change whatever. Signature guarantee must be provided in accordance with the prevailing standards and procedures of the Registrar and -19- Transfer Agent. Such standards and procedures may require signature to be guaranteed by certain eligible guarantor institutions that participate in a recognized signature guarantee program. INFORMATION REQUIRED FOR REGISTRATION OF TRANSFER Name ofTransferee(s) Address ofTransferee(s) Social Security or Tax Identification Number of Transferee( s) Transferee is a(n): Individual* Partnership Corporation Trust *Ifthe Bond is to be registered in the names of multiple individual owners, the names of all such owners and one address and social security number must be provided. The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common IA UNIF TRANS MIN ACT - ........... .Custodian............ (Cust) (Minor) under Iowa Uniform Transfers to Minors Act................... (State) ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST Section 14. Contract Between Issuer and Purchaser. This Resolution constitutes a contract between said City and the purchaser of the Bonds. -20- Section 15. Non-Arbitrage Covenants. The Issuer reasonably expects and covenants that no use will be made of the proceeds from the issuance and sale ofthe Bonds issued hereunder which will cause any of the Bonds to be classified as arbitrage bonds within the meaning of Sections 148(a) and (b) of the Internal Revenue Code of the United States, as amended, and that throughout the term of the Bonds it will comply with the requirements of statutes and regulations issued thereunder. To the best knowledge and belief ofthe Issuer, there are no facts or circumstances that would materially change the foregoing statements or the conclusion that it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be arbitrage bonds. Without limiting the generality of the foregoing, the Issuer hereby agrees to comply with the provisions of the Tax Exemption Certificate and the provisions of the Tax Exemption Certificate are hereby incorporated by reference as part of this Resolution. The Treasurer is hereby directed to make and insert all calculations and determinations necessary to complete the Tax Exemption Certificate in all respects and to execute and deliver the Tax Exemption Certificate at issuance of the Bonds to certifY as to the reasonable expectations and covenants of the Issuer at that date. Section 16. Additional Covenants. Representations and Warranties of the Issuer. The Issuer certifies and covenants with the purchasers and holders of the Bonds from time to time outstanding that the Issuer through its officers, (a) will make such further specific covenants, representations and assurances as may be necessary or advisable; (b) comply with all representations, covenants and assurances contained in the Tax Exemption Certificate, which Tax Exemption Certificate shall constitute a part of the contract between the Issuer and the owners of the Bonds; (c) consult with bond counsel (as defined in the Tax Exemption Certificate); (d) pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Bonds; (e) file such forms, statements and supporting documents as may be required and in a timely manner; and (1) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and other persons to assist the Issuer in such compliance. Section 17. Amendment of Resolution to Maintain Tax Exemption. This Resolution may be amended without the consent of any owner of the Bonds if, in the opinion of bond counsel, such amendment is necessary to maintain tax exemption with respect to the Bonds under applicable Federal law or regulations. Section 18. Oualified Tax-Exempt Obligations. For the sole purpose of qualifYing the Bonds as "Qualified Tax Exempt Obligations" pursuant to the Internal Revenue Code of the United States, the Issuer designates the Bonds as qualified tax-exempt obligations -21- and represents that the reasonably anticipated amount of tax exempt governmental and Code Section 501(c)3 obligations which will be issued during the current calendar year will not exceed Ten (10) Million Dollars. Section 19. Continuing Disclosure. The Issuer hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate, and the provisions of the Continuing Disclosure Certificate are hereby incorporated by reference as part of this Resolution and made a part hereof. Notwithstanding any other provision of this Resolution, failure ofthe Issuer to comply with the Continuing Disclosure Certificate shall not be considered an event of default under this Resolution; however, any holder of the Bonds or Beneficial Owner may take such actions as may be necessary and appropriate, including seeking specific performance by court order, to cause the Issuer to comply with its obligations under the Continuing Disclosure Certificate. For purposes ofthis section, "Beneficial Owner" means any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bond (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. Section 20. Severability Clause. If any section, paragraph, clause or provision of this Resolution be held invalid, such invalidity shall not affect any of the remaining provisions hereof, and this Resolution shall become effective immediately upon its passage and approval. Section 21. Repeal of Conflicting Resolutions or Ordinances. That all ordinances and resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed. PASSED AND APPROVED this 17th day of April, 2006. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk -22- Council Member Joyce Connors introduced the following Resolution entitled "RESOLUTION AUTHORIZING THE REDEMPTION OF CERTAIN OF THE OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2000B, DATED JUNE 1,2000, AND GENERAL OBLIGATION BONDS, SERIES 2000C, DATED NOVEMBER 1,2000, OF THE CITY OF DUBUQUE, IOWA, AND DIRECTING NOTICE OF REDEMPTION," and moved its adoption. Council Member Kevin Lynch seconded the motion to adopt. The roll was called and the vote was, AYES: Braig, Buol, Cline, Connors, Jones, Lynch, Michalski NAYS: None Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION #144-06 RESOLUTION AUTHORIZING THE REDEMPTION OF CERTAIN OF THE OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2000B, DATED JUNE 1,2000, AND GENERAL OBLIGATION BONDS, SERIES 2000C, DATED NOVEMBER 1,2000, OF THE CITY OF DUBUQUE, IOWA, AND DIRECTING NOTICE OF REDEMPTION WHEREAS, the City did by Resolution dated June 5, 2000, authorize the issuance of $2,750,000 General Obligation Bonds, Series 2000B, dated June 1,2000 (the "Series 2000B Bonds"); and WHEREAS, the City did by Resolution No. 520-00 dated November 6, 2000, authorize the issuance of $6,265,000 General Obligation Bonds, Series 2000C, dated November 1,2000 (the "Series 2000C Bonds"); and WHEREAS, the Series 2000B Bonds and the Series 2000C Bonds maturing after June 1,2009 are redeemable in any order of maturity upon giving notice in the manner provided in the resolutions authorizing the issuance of the Series 2000B Bonds and the Series 2000e Bonds; and -2- WHEREAS, it is deemed necessary and advisable that certain of the Series 2000B Bonds and the Series 2000C Bonds be so redeemed and notice of redemption be given. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the 2010 through 2020 principal maturities of the General Obligation Bonds, Series 2000B, dated June 1,2000, in the aggregate amount of $1,905,000, and the 2018 through 2020 principal maturities of the General Obligation Bonds, Series 2000C, dated November 1,2000, in the aggregate amount of$I,440,000, be and the same are hereby redeemed as of June 1,2009. Wel1s Fargo Bank, N.A., as Registrar and Paying Agent for the Refunded Bonds, is hereby authorized and directed to cause notices of such redemption to be given not less than thirty (30) days prior to the redemption date. Section 2. The Finance Director is hereby authorized and directed to cause to be deposited with Wells Fargo Bank, N.A., as trustee under the Refunding Trust Agreement dated as of May 2, 2006, from the proceeds of the General Obligation Refunding Bonds, Series 2006C, an amount sufficient to pay all principal and interest on the redeemed Series 2000B Bonds and the Series 2000C Bonds to the date of redemption. The form of Refunding Trust Agreement is hereby approved and the Mayor and City Clerk are authorized to execute and deliver the same for and on behalf of the City upon issuance of the Series 2006C Bonds. Section 3. That the form of such notices be substantial1y as fol1ows: -3- NOTICE OF THE CALL OF BONDS FOR REDEMPTION TO THE HOLDERS OF THE FOLLOWING DESCRIBED BONDS: Please take notice that the Bonds described below have been called for redemption. Owners of the Bonds should present their Bonds for payment on the Redemption Date. Issuer: City of Dubuque, Iowa Original Issue Amount: $2,750,000 Bond Issue: General Obligation Bonds, Series 2000B Dated Date: June I, 2000 Redemption Date: June 1,2009 Redemption Price: Par, plus accrued interest Bonds Called for Redemption Principal Interest Maturity CUSIP Amount Rate Date Numbers $130,000 5.800% June 1,2010 263867 NP4 140,000 5.800 June 1,2011 263867 NQ2 145,000 5.800 June 1,2012 263867 NRO 155,000 5.800 June 1,2013 263867 NS8 160,000 5.800 June 1,2014 263867 NT6 170,000 5.800 June 1,2015 263867 NU3 180,000 5.800 June 1,2016 263867 NVI 190,000 5.800 June 1,2017 263867 NW9 200,000 5.800 June 1,2018 263867 NX7 210,000 5.800 June 1,2019 263867 NY5 225,000 5.875 June 1,2020 263867 NZ2 -4- No representation is made as to the accuracy of the CUSIP numbers printed herein or on the Bonds. The above Bonds should be presented to Wells Fargo Bank, N.A., 666 Walnut Street, Des Moines, Iowa 50309, telephone (515/245-8504). This represents a full call of the outstanding obligations. All interest will cease to accrue on the Redemption Date. Wells Fargo Bank, National Association (End of Notice) -5- NOTICE OF THE CALL OF BONDS FOR REDEMPTION TO THE HOLDERS OF THE FOLLOWING DESCRIBED BONDS: Please take notice that the Bonds described below have been called for redemption. Owners of the Bonds should present their Bonds for payment on the Redemption Date. Issuer: City of Dubuque, Iowa Original Issue Amount: $6,265,000 Bond Issue: General Obligation Bonds, Series 2000C Dated Date: November I, 2000 Redemption Date: June I, 2009 Redemption Price: Par, plus accrued interest Bonds Called for Redemption Principal Interest Maturity CUSIP Amount Rate Date Numbers $455,000 5.125% June 1,2018 263867 PS6 475,000 5.125 June 1,2019 263867 PT4 510,000 5.250 June I, 2020 263867 PUI No representation is made as to the accuracy of the CUSIP numbers printed herein or on the Bonds. -6- The above Bonds should be presented to Wells Fargo Bank, N.A., 666 Walnut Street, Des Moines, Iowa 50309, telephone (515/245-8504). This represents a full call of the outstanding obligations. All interest will cease to accrue on the Redemption Date. Wells Fargo Bank, National Association (End of Notice) -7- PASSED AND APPROVED this 17th day of April. 2006. Roy D. Buol, Mayor ATTEST: Jeanne F. Schneider, City Clerk City Clerk -8-