PROCEEDINGS OF THE COUNTY BOARD OF JACKSON COUNTY, MINNESOTA

May 17, 2016

The County Board of Jackson County, Minnesota met in regular session, in the Jackson County
Courthouse Board Room, 405 Fourth Street, City of Jackson, Minnesota, on May 17, 2016. The
following County Board members were present: Rosemary Schultz, William Tusa, David Henkels,
Kim Hummel and Don Wachal, Commissioners. County Coordinator Steven Duncan and Trish
Schulz, Human Resources Technician, were also in attendance.
CALL TO ORDER
Chairperson Schultz called the meeting to order at approximately 9:00 a.m. and led the Pledge of
Allegiance.
Motion was made by Commissioner Hummel and seconded by Commissioner Wachal to adopt
the agenda with the following change: move agenda item 2.5 Resolution Absentee, UOCAVA &
Mail Ballot Board from the Consent Agenda and move to agenda item 9.2 under County
Coordinator. Motion carried unanimously.
CONSENT AGENDA
Motion was made by Commissioner Henkels and seconded by Commissioner Tusa to approve
the Consent Agenda. The motion carried unanimously.
Board Action 16 - 111: Approve the May 3, 2016 Board of Commissioner meeting minutes.
Board Action 16 - 112: Approve all Commissioners disbursements in accordance with Minnesota
Statutes 130.01, subd. 4(b), recorded on warrants numbered 78221 through 78368 in the amount of
$368,643.95 - for Revenue Fund, $73,595.80; Road and Bridge, $136,092.31; CIP Bonds,
$16,539.00; Ditch Funds, $138,545.49; Agency, $2,737.00; Tax and Penalty, $947.00; Library,
$107.35, and Forfeit, $80.00. A detailed list of claims paid is available at the Auditor/Treasurers
Office upon request.
Board Action 16 - 113: Approve the Application for Exempt Permit of Des Moines Valley Ducks
Unlimited and approve no waiting period, for a raffle to be held on June 17, 2016 at the Jackson
Motorplex Track.
Board Action 16 - 114: Approve contract with Enterprise Township for assessing services with the
Jackson County Assessors Office effective July 1, 2016 through June 30, 2020 unless earlier
terminated upon six months written notice.
Board Action 16 - 115: Approve the following utility permits:
SEI Excavating- place intake - CR 83 Enterprise Township
Minnesota Energy Resources replace service line - CSAH 14 - Des Moines Township
Board Action 16 - 116: Approve Appropriation - The County Board finds that according to MS
138.052 the County Board is authorized and empowered to appropriate, out of the revenue fund of

such county or out of the proceeds from a special tax levy upon all the taxable property in the
county, such sum as it may deem advisable, to be paid to the historical society of such county, to be
used for the promotion of historical work within the borders thereof, and for the collection,
preservation and publication of historical material, and to disseminate historical information of the
county, and in general to defray the expense of carrying on the historical work in such county, and
as such the Jackson County Historical Society is an appropriate recipient of County funds. Chair
Schultz directs the Auditor/Treasurer to pay $24,500 to the Jackson County Historical Society.
Board Resolution 16 - 054 requesting that Deputy Jordan Bretzman be accepted as a member of the
Public Employees Police and Fire Plan effective with his first payroll deduction.
RESOLUTION 16 - 054
POLICE OFFICER DECLARATION
WHEREAS, the policy of the State of Minnesota as declared in Minnesota Statutes 353.63 is to
give special consideration to employees who perform hazardous work and devote their time and
skills to protecting the property and personal safety of others; and
WHEREAS, Minnesota Statutes Section 353.64 permits governmental subdivisions to request
coverage in the Public Employees Police and Fire plan for eligible employees of police or sheriff
departments whose position duties meet the requirements stated therein and listed below.
BE IT RESOLVED that the Board of Commissioners of Jackson County hereby declares that the
position of Deputy Sheriff, held by Jordan Bretzman, meets all of the following Police and Fire Plan
membership requirements:
1. Said position requires a license by the Minnesota peace officer standards and training
board under sections 626.84 to 626.863 and this/these employee/s is/are so licensed;
2. Said positions primary (over 50%) duty is to enforce the general criminal laws of the
state;
3. Said position charges this employee with the prevention and detection of crime;
4. Said position gives this employee the full power of arrest, and
5. Said position is assigned to a designated police or sheriffs department.
BE IT FURTHER RESOLVED, that this governing body hereby requests that the named
employee be accepted as a member of the Public Employees Police and Fire Plan effective the date
of this employees initial Police and Fire Plan salary deduction by the governmental subdivision.
Adopted this 17th day of May 2016.
_____________________________
Rosemary Schultz, Chair
ATTEST: ___________________________________
Steven Duncan, County Coordinator
Board Action 16 - 117 Approve the request to advertise and hire a full-time Appraiser in the
Assessors Office due to a retirement.

Board Action 16 - 118 Approve Service Contract with All-City Elevator in regard to repairs related
to the elevator damage.
RED ROCK RURAL WATER SYSTEM
Motion was made by Commissioner Tusa and seconded by Commissioner Hummel to approve
Board Resolution 16 - 055 Providing for the Issuance, Sale & Delivery of $2,879,000 General
Obligation Water Revenue Bond, Series 2016B of Jackson County, MN, to Pay a Part of the Cost of
Water System Improvements; Establishing the Terms & Conditions Therefor; & Awarding the Sale
Thereof. Motion carried unanimously.
RESOLUTION NO. 16-055 PROVIDING FOR THE ISSUANCE, SALE, AND DELIVERY
OF $2,879,000 GENERAL OBLIGATION WATER REVENUE BOND, SERIES 2016B OF
JACKSON COUNTY, MINNESOTA, TO PAY A PART OF THE COST OF WATER SYSTEM
IMPROVEMENTS; ESTABLISHING THE TERMS AND CONDITIONS THEREFOR; AND
AWARDING THE SALE THEREOF
BE IT RESOLVED, by the County Board (the County Board) of Jackson County,
Minnesota (the Issuer), as follows:
Section 1.

Bond Purpose, Authorization and Award.

1.01 Recitals. For a fuller understanding of the matters set forth in this Resolution, the
following factual matters are set forth:
A.
Pursuant to the requirements of Minnesota Statues, Sections 116A.01 through
116A.26 (the Act), on July 20, 1984 the District Court of the Fifth Judicial District of the
County of Cottonwood, State of Minnesota (the Court) entered its order establishing the
Red Rock Rural Water System (the System) as a multicounty water system, including area
in Brown, Cottonwood, Jackson, Lyon, Martin, Murray, Redwood, and Watonwan Counties.
Jackson County is herein referred to as the Issuer.
B.
Pursuant to the requirements of Section 116A.24 of the Act, the Court
appointed a water commission of the System (the Commission) to do all things necessary
to establish, construct, operate and maintain the System, to act as agent of the Issuer in
supervising the construction, improvement and extension of the System and in operating and
maintaining the System as further set forth in Section 116A.24 of the Act.
C.
The County Board has determined that it is in the public interest and in
furtherance of the purposes of the Issuer to provide for the acquisition and construction of
certain facilities and improvements to the Issuers waterworks system commonly referred to
as the Expansion Project, which has been subdivided into two separate projects known as
1) the Jackson-Martin Project and 2) the System Upgrade Project.
D.
In order to provide temporary financing for the Expansion Project, the Issuer
issued its $6,641,000 General Obligation Bond Anticipation Note dated October 19, 2015
(the Prior Bond) which is subject to redemption and prepayment any day at par plus

accrued interest. The portion of the Prior Bond allocable to the Jackson-Martin Project is
$2,879,000 and the portion allocable to the System Upgrade Project is $3,762,000.
E.
Pursuant to Section 116A.20 of the Act, the Issuer is authorized to issue
general obligation bonds to finance the Jackson-Martin Project, including refunding the Prior
Bond, which bond must be issued in strict accordance with the requirements of the Act and
will be payable from special assessments levied or to be levied against property specially
benefited by the Expansion Project to be extended upon the tax rolls in each year of the term
of the Bond referred to below, together with interest payable thereon (the Special
Assessments) and from the net revenues from time to time received during the term of the
bonds in excess of the current costs of operating and maintaining the System, including
maintenance of a reasonable operating reserve and necessary allowances for depreciation,
from the establishment and collection of charges for connection to the System and for
service furnished and made available by the System to any person, firm, corporation, or
political subdivision or from any federal or state grant monies, or from any combination of
these receipts (the Net Revenues). The Special Assessments and Net Revenues are
collectively referred to herein as (the Pledged Revenues).
F.
Pursuant to that order and judgment entered July 28, 2015, the Court
determined that the Pledged Revenues are sufficient for payment of bonds issued to finance
the Expansion Project and authorized the Issuer to issue such bonds.
G.
By resolution adopted May 12, 2016, the Commission has found that the
Special Assessments expected to be approved no later than the date of issuance of the Bond,
together with the Net Revenues available for payment of the Bond (if necessary), will be
sufficient to pay the Bond. The Special Assessments and Net Revenues are pledged to
payment of the Bond.
H.
Pursuant to a Joint Powers Agreement dated May 1, 2015 (the Joint Powers
Agreement), Martin County and the Issuer have each agreed to pay their proportionate
share of principal of and interest on the Bond in the event that Pledged Revenues are
insufficient for payment thereof. The Commission has acknowledged the Joint Powers
Agreement.
1.02

Findings.

A.
The County Board has found that it is necessary and in the best interest of the Issuer
and its taxpayers to provide long-term financing for the costs of the Jackson-Martin Project by
obtaining a loan from the United States of America acting through the United States Department of
Agriculture (the USA) acting under the provisions of the Consolidated Farm and Rural
Development Act, as the Issuer is unable to obtain sufficient credit elsewhere to finance the cost of
the Jackson-Martin Project, taking into consideration prevailing private interest rates and terms
currently available. Such finding is ratified and confirmed.
B.
It is found and determined that it is necessary, expedient and in the best interests of
the System and its customers, that the Issuer should issue the Bond for the purpose of paying a
portion of the outstanding principal amount of the Prior Bond allocable to the Jackson-Martin
Project.

1.03 The Bond. Pursuant to Minnesota Statutes, Chapter 475 and Section 116A.20 of the
Act, the Commission, on behalf of the Issuer, has applied for and received approval of a $2,879,000
loan from the USA to finance the Jackson-Martin Project (the Loan) and authorizes and directs the
issuance and sale of the General Obligation Water Revenue Bond, Series 2016B of the Issuer in the
aggregate principal amount of not to exceed $2,879,000 (the Bond) to the USA on the terms as
hereinafter provided to evidence the Loan.
1.04 Advances. Principal of the Bond will be advanced by the USA to or at the direction
of the Issuer as requested to pay the costs of a portion of the Jackson-Martin Project provided that
the aggregate principal amount of not to exceed $2,879,000 shall be fully advanced no later than
December 31, 2016. The Commission is authorized and directed to make such requests on behalf of
the Issuer.
Section 2.

Terms of Bond.

2.01 Principal Payments. This issue shall be a single bond, dated the date of delivery, in
fully registered form, in an amount not to exceed $2,879,000, with principal payable in 39
installments on January 1 of each year commencing with the initial principal payment on January 1,
2018 in the principal amounts and in the years stated below (as adjusted to reflect the total amount
advanced hereunder):
Maturity
Date
(January 1)
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037

Principal
Amount Due

Maturity Date
(January 1)

Principal Amount
Due

47,000
48,000
49,000
50,000
51,000
52,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
62,000
63,000
65,000
66,000
68,000
70,000
72,000

2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056

74,000
74,000
77,000
78,000
80,000
81,000
83,000
85,000
88,000
90,000
91,000
93,000
96,000
99,000
101,000
103,000
106,000
108,000
110,000

2.02 Interest Payments. The Bond shall bear interest on the advanced and unpaid
principal balance at the rate of 2.25% per annum or such lower rate as may be in effect prior to
closing and delivery of the Bond. Interest shall be payable on January 1 of each year commencing
with the initial interest payment on January 1, 2017 (each, an Interest Payment Date). Payments
shall be applied first to interest due through the stated maturity date set forth above on the unpaid
balance of the Bond and thereafter to reduction of principal. Delinquent payments, if any, shall be
applied by the registered holder in the following sequence: (1) billed delinquent interest, (2) pastdue interest installments, (3) past-due principal installments, (4) interest installments due and (5)
principal installments due. The Bond is subject to redemption and prepayment, in whole or in part,
at the option of the Issuer on any date, at par plus accrued interest. Partial prepayments of principal
on the Bond shall be applied to the principal amounts last to come due. Notice of redemption shall
be given in accordance with the rules and regulations of the USA and Minnesota Statutes, Chapter
475.
2.03 Registration and Transfer. The Bond is transferable upon the books of the Issuer at
the office of the County Coordination, by the registered holder of the Bond in person or by its
attorney duly authorized in writing, upon surrender thereof together with a written instrument of
transfer satisfactory to the County Coordinator, fully executed by the registered holder or its duly
authorized attorney. Upon such transfer, the County Coordinator will note the date of registration
and the name of the newly registered holder in the registration blank appearing on the Bond. The
Issuer may deem and treat the person in whose name the Bond is last registered upon the books of
the Issuer, with such registration noted on the Bond, as the absolute owner thereof for the purpose of
receiving payment of or on account of the principal balance or interest on the Bond and for all other
purposes; and all such payments so made to the registered holder shall be valid and effectual to
satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid and the
Issuer will not be affected by notice to the contrary.
Section 3.
3.01

Form, Preparation and Delivery of Bond.

Form. The Bond shall be in substantially the following form:

UNITED STATES OF AMERICA
STATE OF MINNESOTA

No. R-1

$2,879,000
JACKSON COUNTY
GENERAL OBLIGATION WATER REVENUE BOND, SERIES 2016B
Rate
2.25%

Date of Original Issue

June 16, 2016

REGISTERED OWNER:

UNITED STATES OF AMERICA

(acting through the United States Department of Agriculture)

PRINCIPAL AMOUNT:

TWO MILLION EIGHT HUNDRED SEVENTY-NINE THOUSAND

DOLLARS

The County Board of Jackson County, Minnesota (the Issuer), for value received promises
to pay to the registered owner set forth above, or registered assigns (the Holder), at such address
as shall be designated in writing by the Holder, the principal amount of not to exceed $2,879,000
(but only so much as shall have been drawn hereunder, as provided below) in 39 installments, on
January 1 of each year commencing with the initial principal installment on January 1, 2017 in the
principal installment amounts and the years stated below (as adjusted to reflect the total amount
advanced hereunder):
Maturity
Date
(January 1)
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037

Principal
Amount Due

Maturity Date
(January 1)

Principal Amount
Due

47,000
48,000
49,000
50,000
51,000
52,000
54,000
55,000
56,000
57,000
58,000
59,000
60,000
62,000
63,000
65,000
66,000
68,000
70,000
72,000

2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056

74,000
74,000
77,000
78,000
80,000
81,000
83,000
85,000
88,000
90,000
91,000
93,000
96,000
99,000
101,000
103,000
106,000
108,000
110,000

and to pay interest on the advanced and unpaid principal balance to the Holder, said interest being at
the rate per annum set forth above. Interest shall be computed on the basis of the actual days
elapsed in a year of 365 days. Interest is payable to the Holder commencing January 1, 2017, and
annually thereafter on January 1 of each year. The principal of and interest on this Bond are payable
in such funds as are legal tender for payment of debts due the United States of America. Payments
shall be applied first to interest due through the maturity date set forth above on the unpaid principal
balance and thereafter to reduction of principal. Delinquent payments, if any, shall be applied by the
Holder in the following sequence: (1) billed delinquent interest, (2) past-due interest installments,
(3) past-due principal installments, (4) interest installments due and (5) principal installments due.
Principal of this Bond shall be advanced by the Holder to the Commission of the Red Rock
Rural Water System (the System) on behalf of the Issuer in accordance with the Resolution, to
refund a portion of Issuers $6,641,000 General Obligation Bond Anticipation Note dated October
19, 2015.

For the prompt and full payment of such principal and interest as they become due, the full
faith and credit and taxing power of the Issuer are irrevocably pledged. This Bond is issued
pursuant to the authority of and in strict compliance with Minnesota Statutes, Section 116A.01
through 116A.26 and Chapter 475, and all other laws thereunto enabling, and pursuant to an
authorizing resolution adopted by the governing body of the Issuer on May 17, 2016 (the
Resolution), to provide funds to refund that portion of Issuers $6,641,000 General Obligation
Bond Anticipation Note dated October 19, 2015 allocable to the project commonly known as the
Jackson-Martin Project. The principal of and interest on the Bond are payable primarily from
special assessments levied or to be levied against property specially benefited by the extension and
enlargement of the System and from the net revenues from time to time received in excess of the
current costs of operating and maintaining the System. The Commission of the System, by
resolution adopted May 12, 2016, has pledged and appropriated the net revenues to be derived from
the operation of the System in excess of normal, reasonable and current costs of the operation and
maintenance of the System for the payment of the principal and interest when due on the Bond, and
has covenanted and agreed that it will establish rates and charges for the service of the System,
sufficient to pay all costs of operation and maintenance thereof and to produce net revenues
adequate, with special assessments, to pay the Bond and interest thereon when due. Reference is
made to the Resolution for a full statement of rights and powers thereby conferred together with all
other bonds issued on a parity herewith.
This Bond is subject to redemption and prepayment, in whole or in part, at the option of the
Issuer on any date, at par plus accrued interest. Any partial prepayment of this Bond shall be
applied to the principal installments last to come due as provided above. Notice of redemption shall
be given in accordance with the rules and regulations of the Holder and Minnesota Statutes, Chapter
475.
This Bond is transferable upon the books of the Issuer at the office of the County
Coordinator, by the registered Holder hereof in person or by its attorney duly authorized in writing,
upon surrender hereof together with a written instrument of transfer satisfactory to the County
Coordinator, duly executed by the registered Holder or its duly authorized attorney. Upon such
transfer the County Coordinator will note the date of registration and the name of the newly
registered Holder in the registration blank appearing below. The Issuer may deem and treat the
person in whose name this Bond is last registered upon the books of the Issuer, with such
registration noted on the Bond, as the absolute owner hereof for the purpose of receiving payment of
or on account of the principal balance or interest on this Bond and for all other purposes; all such
payments so made to the registered Holder or upon its order shall be valid and effectual to satisfy
and discharge the liability upon this Bond to the extent of the sum or sums so paid, and the Issuer
shall not be affected by any notice to the contrary.
It is certified and recited that all acts and conditions required by the laws and the
Constitution of the State of Minnesota to be done and to exist precedent to and in the issuance of
this Bond, in order to make it a valid and binding general obligation of the Issuer in accordance with
its terms, have been done and do exist in form, time, and manner as so required; that all taxable
property within the boundaries of the Issuer is subject to the levy of ad valorem taxes to the extent
needed to pay the principal hereof and the interest hereon when due, without limitation as to rate or
amount; and that the issuance of this Bond does not cause the indebtedness of the Issuer to exceed
any constitutional or statutory limitation.

IN WITNESS WHEREOF, the Board of Commissioners of Jackson County has caused this
Bond to be signed by its Chair, and attested by its County Coordinator, and has caused this Bond to
be dated the date of original issue set forth above.
[form do not sign here]
Chair
ATTEST:
[form do not sign here]
County Coordinator
PROVISIONS AS TO REGISTRATION
The ownership of the unpaid principal balance of this Bond and the interest accruing thereon
is registered on the books of the Board of Commissioners of Jackson County, Minnesota, in the
name of the registered Holder last noted below.
Date of Registration
June 16, 2016

Name of Registered Holder

Signature of County Coordinator
United States of America, acting through
the United States Department of ___________________________
Agriculture

__________________ __________________________________ ___________________________

__________________ __________________________________ ___________________________

__________________ __________________________________ ___________________________

__________________ __________________________________ ___________________________

__________________ __________________________________ ___________________________

ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
_________________
________________________________________________________________________________
_____
(Name and Address of Assignee)
______________________________

Social Security or Other

______________________________

Identifying Number of Assignee

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 thereof with full power of substitution in the premises.
Dated: _________________
___________________________________
___________________________________
NOTICE: The signature to this assignment
must correspond with the name of the
registered owner as it appears upon the face of
the within Bond in every particular, without
alteration or enlargement or any change
whatsoever.
Signature Guaranteed:
______________________________
(Bank, Trust Company, member of
National Securities Exchange)
3.02 Execution. The Bond shall be executed on behalf of the Issuer by the manual
signatures of the Chair and the County Coordinator on the face of the Bond. The corporate seal may
be omitted from the Bond as permitted by law.
3.03 Delivery. The Bond when so prepared and executed shall be delivered under the
direction of the County Coordinator or her designee to the USA upon receipt of the initial advance.
Section 4.

Funds, Accounts and Covenants.

4.01 Rate Covenant. The Commission has covenanted and agreed with the Issuer, the
holder from time to time of the Bond and with its customers that it will impose and collect just and
equitable rates and charges for all use and for the availability of all facilities of the System at the
times and in the amounts required to pay the normal, reasonable, and current expenses of operating
and maintaining the System and to maintain a reasonable operating reserve, and also to produce Net
Revenues which along with Special Assessments will be at least adequate at all times to pay the
principal and interest due on the Bond issued hereunder and on all other bonds heretofore or
hereafter issued and made payable from said Net Revenues, and will operate the System and
segregate and account for the revenues thereof as provided in this Section.
4.02

Funds, Accounts, Appropriations and Revenues.

A.

Water Fund.

(1)
The Commission has agreed to place all charges described in Section 4.01
above when collected, and all money received from the sale of any facilities or equipment of
the System in the Water Fund (the Water Fund) previously established by the
Commission.
(2)
The Water Fund will be continued as a single fund administered by the
Commission on behalf of the Issuer and held to serve as a depository for all sums, including
bond proceeds, Special Assessments, tax levies and Net Revenues received on account of
the System.
(3)
Except as provided in this Section, the Water Fund may be used only to pay
claims duly approved and allowed for payment of expenses which, under generally accepted
accounting principles, constitute normal, reasonable, and current expenses of operating and
maintaining the System; to maintain such reasonable reserves for such expenses and other
reasonable operating reserves as the Commission determines to be necessary from time to
time; and as may otherwise be permitted by the Act. Sums required to make such payments
and maintain such reserves, constitute the Net Revenues which are herein pledged and
appropriated first to pay the principal of and interest when due on the Bond.
(4)
The depository bank selected by the Commission for deposit of the monies
constituting the Water Fund is hereby deemed designated by the County Board for purposes
of Section 116A.24, subdivision 3(d).
B.
Prior Debt Service Fund. On receipt of each advance of the purchase price of the
Bond, the Issuer shall credit the proceeds from the sale of the Bond to the 2015 Bond Anticipation
Note Fund (the Prior Debt Service Fund) established for the Prior Bond by the Issuer in a
resolution adopted September 15, 2015 (the Prior Bond Resolution), a joint account administered
by the Commission on behalf of the Issuer. The Commission is directed to use the proceeds of the
Bond to pay and retire the principal amount of the Prior Bond allocable to the Jackson-Martin
Project on the earliest possible date.
C.
Debt Service Fund. For the convenience and proper administration of the monies to
be borrowed and repaid on the Bond and to provide adequate and specific security for the purchaser
and holder from time to time of the Bond a separate debt service fund is created in the Water Fund

which is designated as the 2016B Bond Debt Service Fund (the Debt Service Fund) as a joint
account administered by the Commission on behalf of the Issuer as a bookkeeping account separate
and apart from all other funds maintained in the official financial records of the Issuer and the
System.
(1)
Pledged Revenues are pledged and appropriated to the Debt Service Fund in
an amount sufficient to pay the interest and principal then due on the Bond. The money in
the Debt Service Fund must be used for no purpose other than the payment of principal and
interest on the Bond when due.
(2)
The Debt Service Fund shall be maintained in the manner herein specified
until all of the Bond and interest thereon have been fully paid.
(3)
The Commission has directed that, prior to each Interest Payment Date, its
chief financial officer of the Commission must transfer from the Water Fund to the Debt
Service Fund amounts of Net Revenues which, along with payments of Special Assessments
on deposit in the Debt Service Fund, will be sufficient for the payment of all interest and
principal then due on the Bond.
(4)
If the balances in the Debt Service Fund are ever insufficient to pay all
principal and interest then due on the Bond the County Coordinator of the Issuer is required
to provide sufficient money from any other funds of the Issuer which are available for that
purpose, including, the proceeds of taxes levied pursuant to Section 4.03B and any amounts
received under and pursuant to the Joint Powers Agreement, and the funds from which said
monies have been taken must be replenished by the Commission with interest for the time
actually needed at the rate of eight percent per annum from the Pledged Revenues and such
funds applied to such replenishment shall not be deposited in the Debt Service Fund.
(5)
The County Board hereby affirms the pledge and appropriation to the Debt
Service Fund by the Commission of the Special Assessments and Net Revenues in an
amount described in clause (1) above.
D.
Surplus Revenues. The County Board hereby consents to the use of surplus revenues
from time to time received in the Water Fund, in excess of payments due from and reserves required
to be maintained in the Water Fund and in the Debt Service Fund, for necessary expenditures for the
improvement or extension of the System, for the prepayment and redemption of bonds constituting a
lien on the System, and for any other proper purpose consistent with the Act and the policies
established by resolution of the Commission.
E.
Investments. Monies on deposit in the Water Fund and the Debt Service Fund may,
at the discretion of the Commission, be invested in securities permitted by Minnesota Statutes,
Chapter 118A; provided, that any such investments must mature at such times and in such amounts
as will permit for payment of principal and interest on the Bond when due.
4.03

No Tax Levy.

A.
The Court has previously determined that the Special Assessments (including interest
thereon) and Net Revenues are sufficient for payment of the Bond and interest thereon by order
entered pursuant to Section 116A.12, subdivision 8 of the Act, which amounts will be received at

the times required and in the amounts not less than 5% in excess of the amounts needed to meet
when due the principal and interest payments on the Bond and, accordingly, no tax is presently
levied for this purpose.
B.
It is recognized, however, that the Issuers liability on the Bond is not limited to the
Net Revenues and Special Assessments so pledged, and the County Board covenants and agrees that
it will levy upon all taxable property within the Issuer, and cause to be extended, assessed, and
collected, any taxes found necessary for full payment of the principal of and interest on the Bond,
without limitation as to rate or amount.
Section 5.
5.01

Tax Covenants.

General.

A.
The Issuer covenants and agrees to comply with requirements under the Code
necessary to establish and maintain the tax exempt status of the Bond, including without limitation
(1) requirements relating to temporary periods for investment, (2) limitation on amounts invested at
a yield greater than the yield on the Bond, and (3) the rebate of excess investment earnings to the
United States if the proceeds of the Bond are not spent within six months of the date of closing and
delivery of the Bond.
B.
The Issuer covenants and agrees with the holders of the Bond that the Issuer will (1)
take all action on its part necessary to cause the interest on Bond to continue to be exempt from
income taxation including, without limitation, restricting, to the extent necessary, the yield on
investments made with the proceeds of the Bond and investment earnings thereon, making required
payments to the federal government, if any, and maintaining books and records in a specified
manner, where appropriate, and (2) refrain from taking any action which would cause interest on the
Bond to be subject to federal income taxes, including, without limitation, refraining from spending
the proceeds of the Bond and investment earnings thereon on certain specified purposes.
C.
No portion of the proceeds of the Bond shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (i) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bond was issued, and (ii) in addition to the above, in an
amount not greater than the lesser of five percent of the proceeds of the Bond or $100,000 (the
minor portion). To this effect, any proceeds of the Bond and any sums from time to time held in
the Debt Service Fund (or any other Issuer account which will be used to pay principal and interest
to become due on the Bond) in excess of amounts which under the applicable federal arbitrage
regulations may be invested without regard as to yield shall not be invested at a yield in excess of
the applicable yield restrictions imposed by the arbitrage regulations on such investments after
taking into account any applicable temporary periods or minor portion made available under the
federal arbitrage regulations. Money in those funds shall not be invested in obligations or deposits
issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if
and to the extent that such investment would cause the Bond to be federally guaranteed, other than
as permitted by the Code.
5.02 Eighteen-Month Spending Exception to Rebate. Based on the representation of the
Commission, Issuer reasonably expects that the gross proceeds and investment earnings thereon will

be allocated to project costs allocable to the Bond in accordance with the following schedule
measured from the date of closing and delivery of the Bond:
(a)

at least 15% within 6 months (the first spending period);

(b)

at least 60% within 12 months (the second spending period); and

(c)

100% within 18 months (the third spending period);

provided that the Bond will not fail to satisfy the spending requirement herein specified as a result
of reasonable retainage not exceeding 5% of the proceeds of the Bond if such amount is allocated to
the portion of the project costs allocable to the Bond within 30 months of the date of closing and
delivery of the Bond. In the event proceeds of the Bond are not so spent, the Issuer will compute or
cause to be computed and cause the payment to the United States of all amounts required under the
rebate requirement of Section 148(f) of the Code and the Regulations issued thereunder.
Section 6.
Certificate of Proceedings.
6.01 Filing of Resolution. The County Coordinator or her designee is directed to file a
certified copy of this Resolution in her office and to provide a certificate stating that the Bond herein
authorized has been duly entered on her register.
6.02 Proceedings. The officers of the Issuer are authorized and directed to prepare and
furnish to the USA and to bond counsel certified copies of all proceedings and records of the Issuer
relating to the authorization and issuance of the Bond and other affidavits and certificates as may
reasonably be requested to show the facts relating to the legality and marketability of the Bond as
such facts appear from the official books and records of the officers custody or otherwise known to
them. All of such certified copies, certificates, and affidavits, including any heretofore furnished,
constitute representations of the Issuer as to the correctness of facts recited therein and the actions
stated therein to have been taken.
6.03 Absent or Disabled Officers. In the event of the absence or disability of the Chair or
the County Coordinator, such officers of the Issuer or members of the County Board as in the
opinion of the Issuers attorney may act in their behalf shall, without further act or authorization of
the Issuer, execute and deliver the Bond, and do all things and execute all instruments and
documents required to be done or executed by such absent or disabled officers.
Section 7.

Refunding; Findings; Redemption.

7.01 Findings. It is found and determined that, based on information provided by the
Commission and bond counsel,
A.
the issuance of the Bond is consistent with covenants in the Prior Bond and is
necessary and desirable for the reduction of debt service cost to the Issuer and the System
and for the adjustment of the maturities in relation to the resources available for their
payment; and
B.
proceeds of the Bonds and available System funds will be sufficient to pay
that portion of the Prior Bond outstanding on June 16, 2016 and allocable to the Jackson-

Martin Project in full on the date of closing and delivery of the Bonds or as soon thereafter
as reasonably possible.
7.02 Notice of Call for Redemption. That portion of the Prior Bond outstanding on June
16, 2016 and allocable to the Jackson-Martin Project shall be redeemed and prepaid in accordance
with its terms. The designee of the Commission is authorized and directed to forthwith provide
notice of call of redemption of that portion of the Prior Bond outstanding on June 16, 2016 and
allocable to the Jackson-Martin Project in accordance with its terms.
Adopted: May 17, 2016.
___________________________________
Chair
ATTEST:
___________________________________
County Coordinator
SHERIFFS DEPARTMENT
Motion was made by Commissioner Henkels and seconded by Commissioner Schultz to
approve Board Action 16 - 119 approving the job description of Chief Deputy. Motion carried
unanimously.
Motion was made by Commissioner Tusa and seconded by Commissioner Wachal to approve
Board Resolution 16 - 120 authorizing the Sheriff to create and appoint to the position of Chief
Deputy after July 1, 2016. Motion carried unanimously.
PUBLIC WORKS
Motion was made by Commissioner Hummel and seconded by Commissioner Wachal to
approve Board Action 16 - 121 awarding SAP 032-599-098 to M & K Bridge Bridge Construction
of Walnut Grove, Minnesota for $382,640.40. Motion carried unanimously.
Motion was made by Commissioner Tusa and seconded by Commissioner Wachal to approve
Board Action 16 - 122 accepting the bid by Wilcon Construction of $377,800 for the Bus Storage
Facility, contingent upon Jackson City Council also approving. Motion carried unanimously.
PUBLIC HEARING/ABATEMENT PROPOSAL TRI-STATE GENERAL CONTRACTING
Chair Schultz opened the public hearing at 11:04 a.m. to consider Use of Tax Abatement for TriState General Contracting, Inc.
Shannon Sweeney of David Drown Associates presented information.
After all persons who wished to do so had stated or filed their views on the Tax Abatement, Chair
Schultz declared the public hearing closed at 11:09 a.m.

Motion was made by Commissioner Wachal and seconded by Commissioner Tusa to adopt
Board Resolution 16 - 056 Authorizing a Tax Abatement on Property for the Purpose of Funding
Project Expenses for Tri-State General Contracting, Inc. Motion carried unanimously.
RESOLUTION 16 056 AUTHORIZING A TAX ABATEMENT ON
PROPERTY FOR THE PURPOSE OF FUNDING PROJECT EXPENSES FOR TRI-STATE
GENERAL CONTRACTING, INC.
WHEREAS:
1.

The County Board of Jackson County, Minnesota (the County), has held a public hearing
on the proposed tax abatement, pursuant to Minnesota Statutes, Sections 469.1813 through
and including 469.1815, to finance project expenses for the construction of a new 12,000
sq. ft. building to be occupied by Tri-State General Contracting, Inc. (the Project) in the
City of Jackson; and

2.

The County Board has proposed to abate a portion of the Countys share of property taxes
on the following parcel for a period of up to 9 years:
Parcel I.D. #:23.013.1330

3.

The County Board finds that the proposed abatement and benefited project is in the best
interest of the County and its businesses and residents.

BE IT RESOLVED by the County Board of Jackson County, Minnesota, as follows:

1.

Abatement. The County Board hereby authorizes the abatement of the County share of
property taxes attributable to the increase in market value as a result of the project. The
amount of the abatement shall not exceed $1,949 per year, or in any event the abatement
shall not exceed the Countys tax rate multiplied by the total net tax capacity added by
improvements made in 2016 as a result of the Project. The abatement period shall not
exceed 9 years commencing with taxes payable in 2018. Final terms that do not exceed the
provisions of this resolution will be established within a financial assistance agreement.

2.

Purpose. The Abatements will be provided to Tri-State General Contracting, Inc. to

reimburse expenses associated with the Project.

3.

Public Benefit. The proposed abatement will benefit the public by:
a) increasing the property tax base of Jackson County; and
b) creating new employment opportunities within Jackson County; and
c) help provide access to services for businesses and residents in Jackson County.

4.

Financial Assistance Agreement. The Board Chair and County Coordinator are hereby
authorized to execute a Financial Assistance Agreement providing specific terms and
conditions for the assistance granted by this resolution.

Adopted this 17th day of May, 2016.

JACKSON COUNTY BOARD OF COMMISSIONERS
_____________________________________________
Rosemary Schultz, Chair
ATTEST: _______________________________
Steven Duncan, County Coordinator
Motion was made by Commissioner Henkels and seconded by Commissioner Hummel to
approve Board Action 16 - 123 authorizing the Execution of a Financial Assistance Agreement
Related to a Tax Abatement on Property for the Purpose of Funding Project Expenses for Tri-State
General Contracting, Inc. Motion carried unanimously.
PUBLIC HEARING/ABATEMENT PROPOSAL NEW VISION COOPERATIVE
Chair Schultz opened the public hearing at 11:17 a.m. to consider Use of Tax Abatement for New
Vision Cooperative.
Shannon Sweeney of David Drown Associates presented information.
After all persons who wished to do so had stated or filed their views on the Tax Abatement, Chair
Schultz declared the public hearing closed at 11:23 a.m.
Motion was made by Commissioner Schultz and seconded by Commissioner Tusa to adopt
Board Resolution 16 - 057 Authorizing a Tax Abatement on Property for the Purpose of Funding
Project Expenses for New Vision Cooperative. Commissioner Henkels recused himself due to
conflict of interest. Motion carried.
RESOLUTION 16 057 AUTHORIZING A TAX ABATEMENT
ON PROPERTY FOR THE PURPOSE OF FUNDING PROJECT EXPENSES
FOR NEW VISION COOPERATIVE
WHEREAS:
1.

The County Board of Jackson County, Minnesota (the County), has held a public hearing
on the proposed tax abatement, pursuant to Minnesota Statutes, Sections 469.1813 through
and including 469.1815, to finance project expenses for the construction of a new grain
handling and storage facilities by New Vision Cooperative (the Project) in the City of
Heron Lake; and

2.

The County Board has proposed to abate a portion of the Countys share of property taxes
on the following parcel for a period of up to 9 years:
Parcel I.D. #s:

22.019.3700
22.019.3800
22.019.3900
22.200.0010
22.200.0020
22.200.0040
3.

22.200.0080
22.200.0090
22.561.0010
22.562.0120
22.562.0130
22.562.0140

The County Board finds that the proposed abatement and benefited project is in the best
interest of the County and its businesses and residents.

BE IT RESOLVED by the County Board of Jackson County, Minnesota, as follows:

1.

Abatement. The County Board hereby authorizes the abatement of the County share of
property taxes attributable to the increase in market value as a result of the project. The
amount of the abatement shall not exceed $6,215 per year, or in any event the abatement
shall not exceed the Countys tax rate multiplied by the total net tax capacity added by
improvements made in 2016 as a result of the Project. The abatement period shall not
exceed 9 years commencing with taxes payable in 2018. Final terms that do not exceed the
provisions of this resolution will be established within a financial assistance agreement.

2.

Purpose. The Abatements will be provided to New Vision Cooperative to reimburse

expenses associated with the Project.

3.

Public Benefit. The proposed abatement will benefit the public by:
a) increasing the property tax base of Jackson County; and
b) retaining employment opportunities within Jackson County; and
c) help provide access to services for businesses and residents in Jackson County.

4.

Financial Assistance Agreement. The Board Chair and County Coordinator are hereby
authorized to execute a Financial Assistance Agreement providing specific terms and
conditions for the assistance granted by this resolution.

Adopted this 17th day of May, 2016.

JACKSON COUNTY BOARD OF COMMISSIONERS
_____________________________________________
Rosemary Schultz, Chair
ATTEST: _______________________________
Steven Duncan, County Coordinator
Motion was made by Commissioner Wachal and seconded by Commissioner Hummel to
approve Board Action 16-124 authorizing the Execution of a Financial Assistance Agreement
Related to a Tax Abatement on Property for the Purpose of Funding Project Expenses for New
Vision Cooperative. Commissioner Henkels recused himself due to conflict of interest. Motion
carried.

GENERAL OBLIGATION DRAINAGE BONDS/DAVID DROWN ASSOCIATES

Motion was made by Commissioner Hummel and seconded by Commissioner Wachal to adopt
Board Resolution 16 - 058 authorizing issuance of $3,495,000 General Obligation Drainage Bonds,
Series 2016A for Judicial Ditch 30, Judicial Ditch 35 and County Ditch 124 at 2.3437% interest to
Stifel, Nicolaus & Co. Motion carried unanimously.
RESOLUTION 16-058 ACCEPTING PROPOSAL ON THE SALE OF $3,495,000 GENERAL
OBLIGATION DRAINAGE BONDS, SERIES 2016A, PROVIDING FOR THEIR ISSUANCE
AND PLEDGING SPECIAL ASSESSMENTS FOR THE PAYMENT THEREOF
A.
WHEREAS, the contract for the construction of improvements and repair of Judicial
Ditch No. 30, Judicial Ditch No. 35 and County Ditch No. 124 (collectively, the "Project") has been
let, and it is necessary and desirable at this time to issue bonds to defray the cost of constructing
such Project; and
B.
WHEREAS, the County Board has heretofore determined that it is necessary and
expedient to issue $3,495,000 General Obligation Drainage Bonds, Series 2016A (the "Bonds" or
individually, a "Bond") pursuant to Minnesota Statutes, Section 103E and Chapter 475 to provide
funds to finance the Project; and
C.
WHEREAS, the County has retained David Drown Associates, Inc., in Minneapolis,
Minnesota ("David Drown"), as its independent financial advisor for the sale of the Bonds and was
therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes,
Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by David
Drown; and
D.
WHEREAS, the proposals set forth on Exhibit A attached hereto were received by
the County Coordinator, or designee, at the offices of David Drown at 10:00 A.M. this same day
pursuant to the Terms of Offering established for the Bonds; and
E.
WHEREAS, it is in the best interests of the County that the Bonds be issued in bookentry form as hereafter provided.
NOW, THEREFORE, BE IT RESOLVED by the County Board of the County of Jackson,
Minnesota, as follows:
1.
Acceptance of Proposal. The proposal of Stifel, Nicolaus & Co., Inc. (the
"Purchaser"), to purchase the Bonds in accordance with the Notice of Sale established for the
Bonds, at the rates of interest hereinafter set forth, and to pay therefor the sum of $3,463,432.50,
plus interest accrued to settlement, is hereby found, determined and declared to be the most
favorable proposal received and is hereby accepted, and the Bonds are hereby awarded to the
Purchaser. The Coordinator is directed to retain the deposit of the Purchaser and to forthwith return
to the unsuccessful bidders any good faith checks or drafts.

2.

Bond Terms.

(a)
Original Issue Date; Denominations; Maturities; and Term Bond Option. The Bonds
shall be dated June 1, 2016, as the date of original issue, shall be issued forthwith on or after such
date in fully registered form, shall be numbered from R-1 upward in the denomination of $5,000
each or in any integral multiple thereof of a single maturity (the "Authorized Denominations") and
shall mature on February 1 in the years and amounts as follows:
Year

Amount

2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038

$ 150,000
150,000
150,000
155,000
155,000
155,000
160,000
160,000
165,000
170,000
170,000
175,000
180,000
185,000
185,000
195,000
200,000
205,000
210,000
220,000

As may be requested by the Purchaser, one or more term Bonds may be issued having
mandatory sinking fund redemption and final maturity amounts conforming to the forgoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(b)
Book Entry Only System. The Depository Trust Company, a limited purpose trust
company organized under the laws of the State of New York or any of its successors or successors to
its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this
end:
(i)
The Bonds shall be initially issued and, so long as they remain in book entry
form only (the "Book Entry Only Period"), shall at all times be in the form of a separate
single fully registered certificate for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized Denominations for
any Bond shall be deemed to be limited during the Book Entry Only Period to the
outstanding principal amount of that Bond.
(ii)

Upon initial issuance, ownership of the Bonds shall be registered in a bond

register maintained by the Registrar (as hereinafter defined) in the name of CEDE & CO., as
the nominee (it or any nominee of the existing or a successor Depository, the "Nominee").
(iii)
With respect to the Bonds neither the County nor the Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial institution for
which the Depository holds Bonds as securities depository (the "Participant") or the person
for which a Participant holds an interest in the Bonds shown on the books and records of the
Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence,
neither the County, nor the Registrar, shall have any such responsibility or obligation with
respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant
with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant,
any Owner or any other person, other than the Depository, of any notice with respect to the
Bonds, including any notice of redemption, or (C) the payment to any Participant, any
Beneficial Owner or any other person, other than the Depository, of any amount with respect
to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or
other action taken by the Depository as the Registered Holder of any Bonds (the "Holder").
For purposes of securing the vote or consent of any Holder under this Resolution, the County
may, however, rely upon an omnibus proxy under which the Depository assigns its
consenting or voting rights to certain Participants to whose accounts the Bonds are credited
on the record date identified in a listing attached to the omnibus proxy.
(iv)
The County and the Registrar may treat as and deem the Depository to be the
absolute owner of the Bonds for the purpose of payment of the principal of and premium, if
any, and interest on the Bonds, for the purpose of giving notices of redemption and other
matters with respect to the Bonds, for the purpose of obtaining any consent or other action to
be taken by Holders for the purpose of registering transfers with respect to such Bonds, and
for all purpose whatsoever. The Registrar, as paying agent hereunder, shall pay all principal
of and premium, if any, and interest on the Bonds only to or upon the Holder of the Holders
of the Bonds as shown on the register, and all such payments shall be valid and effective to
fully satisfy and discharge the County's obligations with respect to the principal of and
premium, if any, and interest on the Bonds to the extent of the sum or sums so paid.
(v)
Upon delivery by the Depository to the Registrar of written notice to the
effect that the Depository has determined to substitute a new Nominee in place of the
existing Nominee, and subject to the transfer provisions in paragraph 10, references to the
Nominee hereunder shall refer to such new Nominee.
(vi)
So long as any Bond is registered in the name of a Nominee, all payments
with respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the Registrar or
County, as the case may be, to the Depository as provided in the Letter of Representations to
the Depository required by the Depository as a condition to its acting as book-entry
Depository for the Bonds (said Letter of Representations, together with any replacement
thereof or amendment or substitute thereto, including any standard procedures or policies
referenced therein or applicable thereto respecting the procedures and other matters relating
to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter
referred to as the "Letter of Representations").

(vii) All transfers of beneficial ownership interests in each Bond issued in bookentry form shall be limited in principal amount to Authorized Denominations and shall be
effected by procedures by the Depository with the Participants for recording and transferring
the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to the
Holders pursuant to this Resolution by the County or Registrar with respect to any consent
or other action to be taken by Holders, the Depository shall consider the date of receipt of
notice requesting such consent or other action as the record date for such consent or other
action; provided, that the County or the Registrar may establish a special record date for
such consent or other action. The County or the Registrar shall, to the extent possible, give
the Depository notice of such special record date not less than 15 calendar days in advance
of such special record date to the extent possible.
(ix)
Any successor Registrar in its written acceptance of its duties under this
Resolution and any paying agency registrar agreement, shall agree to take any actions
necessary from time to time to comply with the requirements of the Letter of
Representations.
(x)
In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Certificate of a lesser denomination as provided in paragraph 5,
make a notation of the reduction in principal amount on the panel provided on the Bond
stating the amount so redeemed.
(c)
Termination of Book-Entry Only System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
(i)
The Depository may determine to discontinue providing its services with
respect to the Bonds at any time by giving written notice to the County and discharging its
responsibilities with respect thereto under applicable law. The County may terminate the
services of the Depository with respect to the Bonds if it determines that the Depository is no
longer able to carry out its functions as securities depository or the continuation of the
system of book-entry transfers through the Depository is not in the best interests of the
County or the Beneficial Owners.
(ii)
Upon termination of the services of the Depository as provided in the
preceding paragraph, and if no substitute securities depository can be found which, in the
opinion of the County, is willing and able to assume the functions of the Depository
hereunder upon reasonable or customary terms, or if the County determines that it is in the
best interests of the County or the Beneficial Owners of the Bonds that the Beneficial
Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered
as being registered in the bond register in the name of the Nominee, but may be registered in
whatever name or names the Holder of the Bonds shall designate at that time, in accordance
with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee
by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the
Beneficial Owners.
(iii)
Nothing in this subparagraph (c) shall limit or restrict the provisions of
paragraph 10.

(d)
Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part hereof. If and to the extent any such provisions
are inconsistent with the other provisions of this resolution, the provisions in the Letter of
Representations shall control.
3.
Purpose. The Bonds shall provide funds to finance the Project. The total cost of the
Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated
to be at least equal to the amount of the Bonds. Work on the Project shall proceed with due
diligence to completion.
4.
Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2017, calculated
on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth
opposite the maturity years as follows:
Maturity Year
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038

Interest Rate
1.000 %
1.100
1.200
1.300
1.400
1.500
1.600
1.750
1.750
2.000
2.000
2.250
2.250
2.375
2.375
2.500
2.500
2.750
2.750
2.750

5.
Redemption. All Bonds maturing on February 1, 2020 and thereafter, shall be subject
to redemption and prepayment at the option of the County on February 1, 2019, and on any date
thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the
Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts
within each maturity to be redeemed shall be determined by the County and if only part of the
Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid
shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall
be due and payable on the redemption date, and interest thereon shall cease to accrue from and after
the redemption date. Mailed notice of redemption shall be given to the paying agent and to each

affected registered holder of the Bonds at least thirty (30) days prior to the date fixed for
redemption.
To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar
prior to giving notice of redemption shall assign to each Bond having a common maturity date a
distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall
then select by lot, using such method of selection as it shall deem proper in its discretion, from the
numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the
principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to
which were assigned numbers so selected; provided, however, that only so much of the principal
amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal
$5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it
shall be surrendered to the Bond Registrar (with, if the County or Bond Registrar so requires, a
written instrument of transfer in form satisfactory to the County and Bond Registrar duly executed
by the holder thereof or his, her or its attorney duly authorized in writing) and the County shall
execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such
Bond, without service charge, a new Bond or Bonds of the same series having the same stated
maturity and interest rate and of any Authorized Denomination or Denominations, as requested by
such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of
the principal of the Bond so surrendered.
6.
Bond Registrar. U.S. Bank National Association, in St. Paul, Minnesota, is
appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the County and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record
holders) of the Bonds in the manner set forth in the form of Bond and paragraph 13.
7.
Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF JACKSON
R-____________

$_________
GENERAL OBLIGATION DRAINAGE BOND, SERIES 2016A

Interest Rate

Maturity Date

Date of Original Issue

February 1,

June 1, 2016

REGISTERED OWNER:
PRINCIPAL AMOUNT:

CEDE & CO.

CUSIP

THE COUNTY OF JACKSON, MINNESOTA (the "Issuer"), certifies that it is indebted and
for value received promises to pay to the registered owner specified above, or registered assigns, in
the manner hereinafter set forth, the principal amount specified above, on the maturity date specified
above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1
and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2017, at the
rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months)
until the principal sum is paid or has been provided for. This Bond will bear interest from the most
recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from
the date of original issue hereof. The principal of and premium, if any, on this Bond are payable
upon presentation and surrender hereof at the principal office of U.S. Bank National Association, in
St. Paul, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent
duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by
check or draft mailed to the person in whose name this Bond is registered (the "Holder" or
"Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the
address appearing thereon at the close of business on the fifteenth day of the calendar month next
preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid
shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and
shall be payable to the person who is the Holder hereof at the close of business on a date (the
"Special Record Date") fixed by the Bond Registrar whenever money becomes available for
payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders
not less than ten days prior to the Special Record Date. The principal of and premium, if any, and
interest on this Bond are payable in lawful money of the United States of America. So long as this
Bond is registered in the name of the Depository or its Nominee as provided in the Resolution
hereinafter described, and as those terms are defined therein, payment of principal of,premium, if
any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter
of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for
payment of the redemption price upon a partial redemption of this Bond. Until termination of the
book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the
Depository or its Nominee.
Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2020 and
thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1, 2019,
and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in
part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal
amounts within each maturity to be redeemed shall be determined by the Issuer; and if only part of
the Bonds having a common maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for
redemption shall be due and payable on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying
agent and to each affected Holder of the Bonds at least thirty days prior to the date set for
redemption.
Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of
Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the principal amount of such Bond.
The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper
in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each
number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed

shall be the Bonds to which were assigned numbers so selected; provided, however, that only so
much of the principal amount of such Bond of a denomination of more than $5,000 shall be
redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be
redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond
Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond
Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing)
and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to
the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having
the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as
requested by such Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Bond so surrendered.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of $3,495,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, denomination and redemption privilege, issued pursuant to and in full conformity with
the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the
County Board on May 17, 2016 (the "Resolution"), for the purpose of providing funds to finance the
construction of improvements and repair of Judicial Ditch No. 30, Judicial Ditch No. 35 and County
Ditch No. 124, as defined in Minnesota Statutes, Section 103E. This Bond is payable out of the
General Obligation Drainage Bonds, Series 2016A Fund of the Issuer. This Bond constitutes a
general obligation of the Issuer, and to provide moneys for the prompt and full payment of its
principal, premium, if any, and interest when the same become due, the full faith and credit and
taxing powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations provided
in the Resolution. Reference is hereby made to the Resolution for a description of the rights and
duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond
Registrar.
Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney duly
authorized in writing at the principal office of the Bond Registrar upon presentation and surrender
hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and
to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar.
Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in
exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but
not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or
Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the
same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection with the transfer or exchange of
this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
herein provided (except as otherwise provided herein with respect to the Record Date) and for all

other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond
Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed by
the Bond Registrar.
Qualified Tax-Exempt Obligations. The Bonds have been designated by the Issuer as
"qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code
of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by
the Constitution and laws of the State of Minnesota to be done, to happen and to be performed,
precedent to and in the issuance of this Bond, have been done, have happened and have been
performed, in regular and due form, time and manner as required by law, and that this Bond,
together with all other debts of the Issuer outstanding on the date of original issue hereof and the
date of its issuance and delivery to the original purchaser, does not exceed any constitutional or
statutory limitation of indebtedness.
IN WITNESS WHEREOF, the County of Jackson, Minnesota, by its County Board has
caused this Bond to be executed on its behalf by the facsimile signatures of the Chair and the
Coordinator, the seal of the Issuer having been intentionally omitted as permitted by law.
Date of Registration:

Registrable by: U.S. BANK NATIONAL

ASSOCIATION

_____________________________
Payable at:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the Bonds
described in the Resolution
mentioned within.

U.S. BANK NATIONAL

ASSOCIATION

COUNTY OF JACKSON, MINNESOTA

/s/ Facsimile
Chair of the County Board

U.S. BANK NATIONAL ASSOCIATION,

St. Paul, Minnesota
Bond Registrar
/s/ Facsimile
County Coordinator
By: ________________________
Authorized Signature
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, shall be
construed as though they were written out in full according to applicable laws or regulations:

TEN COM - as tenants in common

TEN ENT - as tenants by the entireties
JT TEN
- as joint tenants with right of survivorship and not as tenants in common
UTMA - _____________ as custodian for _____________
(Cust)
(Minor)
under the _____________________ Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used though not in the above list.
___________________________________________________________

ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto ________ the
within Bond and does hereby irrevocably constitute and appoint ________ attorney to transfer the
Bond on the books kept for the registration thereof, with full power of substitution in the premises.
Dated:__________

_____________________________________________________
Notice:
The assignor's signature to this assignment must
correspond with the name as it appears upon the face
of the within Bond in every particular, without
alteration or any change whatever.

Signature Guaranteed:
___________________________
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having
a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as
defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
transferee requested below is provided.
Name and Address:

________________________________________
________________________________________
________________________________________

(Include information for all joint owners if the Bond is held by joint account.)
PREPAYMENT SCHEDULE
This Bond has been prepaid in part on the date(s) and in the amount(s) as follows:
DATE

AMOUNT

AUTHORIZED SIGNATURE
OF HOLDER

8.
Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the County by the signatures of its Chair of the County Board and County Coordinator and be sealed
with the seal of the County; provided, as permitted by law, both signatures may be photocopied
facsimiles and the corporate seal has been omitted. In the event of disability or resignation or other
absence of either officer, the Bonds may be signed by the manual or facsimile signature of the
officer who may act on behalf of the absent or disabled officer. In case either officer whose
signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer
before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient
for all purposes, the same as if the officer had remained in office until delivery.
9.
Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to
any security or benefit under this resolution unless a Certificate of Authentication on such Bond,
substantially in the form hereinabove set forth, shall have been duly executed by an authorized
representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be
signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the
County on each Bond by execution of the Certificate of Authentication on the Bond and by inserting
as the date of registration in the space provided the date on which the Bond is authenticated, except
that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as

a date of registration the date of original issue, which date is June 1, 2016. The Certificate of
Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated
and delivered under this resolution.
10.
Registration; Transfer; Exchange. The County will cause to be kept at the principal
office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the
Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the
registration of transfers of Bonds entitled to be registered or transferred as herein provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the
County shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9 with respect to authentication) of, and deliver, in the name
of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination
or Denominations of a like aggregate principal amount, having the same stated maturity and interest
rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or
in the name of "bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any
Bonds are so surrendered for exchange, the County shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the holder
making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be
promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the County.
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the County evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be
accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly
executed by the holder thereof or the Holder's attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any legal
or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the County contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close
its transfer books between record dates and payment dates.
11.
Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12.
Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest
Payment Date by check or draft mailed to the person in whose name the Bond is registered (the

"Holder") on the registration books of the County maintained by the Bond Registrar and at the
address appearing thereon at the close of business on the fifteenth (15th) day of the calendar month
next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so
timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular
Record Date, and shall be payable to the person who is the Holder thereof at the close of business on
a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available
for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond
Registrar to the Holders not less than ten days prior to the Special Record Date.
13.
Treatment of Registered Owner. The County and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12 with respect to interest payment and record date) on, such Bond and for
all other purposes whatsoever whether or not such Bond shall be overdue, and neither the County
nor the Bond Registrar shall be affected by notice to the contrary.
14.
Delivery; Application of Proceeds. The Bonds when so prepared and executed shall
be delivered by the Auditor-Treasurer to the Purchaser upon receipt of the purchase price, and the
Purchaser shall not be obliged to see to the proper application thereof.
15.
Fund and Accounts. There is hereby created a special fund to be designated the
"General Obligation Drainage Bonds, Series 2016A Fund" (the "Fund") to be administered and
maintained by the Auditor-Treasurer as a bookkeeping account separate and apart from all other
funds maintained in the official financial records of the County. The Fund shall be maintained in the
manner herein specified until all of the Bonds and the interest thereon have been fully paid. There
shall be maintained in the Fund two separate accounts, to be designated the "Construction Account"
and "Debt Service Account", respectively.
(a)
Construction Account. To the Construction Account there shall be credited the
proceeds of the sale of the Bonds, less capitalized interest received thereon, less any amount paid for
the Bonds in excess of the minimum bid. From the Construction Account there shall be paid all
costs and expenses of the Project, including the cost of any construction contracts heretofore let and
all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section
475.65. Moneys in the Construction Account shall be used for no other purpose except as otherwise
provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary
to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of
taxes herein levied or covenanted to be levied and provided further that completion of the Project
the balance in the Construction Account shall be transferred to the Debt Service Account.
(b)
Debt Service Account. There are hereby irrevocably appropriated and pledged to,
and there shall be credited to, the Debt Service Account: (i) all collections of special assessments
herein covenanted to be levied with respect to the Project and either initially credited to the
Construction Account and not already spent as permitted above and required to pay any principal
and interest due on the Bonds or collected subsequent to the completion of the Project and payment
of the costs thereof; (ii) capitalized interest in the amount of $129,729.17, together with interest
earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds
to pay interest due on the Bonds on or before February 1, 2017; (iii) all funds paid for the Bonds in
excess of the minimum bid; (iv) any collections of all taxes herein or hereafter levied for the
payment of the Bonds and interest thereon; (v) all funds remaining in the Construction Account after

completion of the Project and payment of the costs thereof; (vi) all investment earnings on funds
held in the Debt Service Account; and (vii) any and all other moneys which are properly available
and are appropriated by the governing body of the County to the Debt Service Account. The Debt
Service Account shall be used solely to pay the principal and interest and any premiums for
redemption of the Bonds and any other general obligation bonds of the County hereafter issued by
the County and made payable from said account as provided by law.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher
yielding investments or to replace funds which were used directly or indirectly to acquire higher
yielding investments, except (1) for a reasonable temporary period until such proceeds are needed
for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not
greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any
proceeds of the Bonds and any sums from time to time held in the Construction Account or Debt
Service Account (or any other County account which will be used to pay principal or interest to
become due on the bonds payable therefrom) in excess of amounts which under then applicable
federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield
in excess of the applicable yield restrictions imposed by said arbitrage regulations on such
investments after taking into account any applicable "temporary periods" or "minor portion" made
available under the federal arbitrage regulations. Money in the Fund shall not be invested in
obligations or deposits issued by, guaranteed by or insured by the United States or any agency or
instrumentality thereof if and to the extent that such investment would cause the Bonds to be
"federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986,
as amended (the "Code").
16.
Assessments. It is hereby determined that no less than one hundred percent of the
cost to the County of the Project financed hereunder, within the meaning of Minnesota Statutes,
Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every
assessable lot, piece and parcel of land benefited by the Project. The County hereby covenants and
agrees that it has let all construction contracts financed hereunder. The County hereby further
covenants and agrees that it will do and perform as soon as they may be done all acts and things
necessary for the final and valid levy of such special assessments, and in the event that any such
assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any
error, defect, or irregularity in any action or proceedings taken or to be taken by the County or the
County Board or any of the County officers or employees, either in the making of the assessments
or in the performance of any condition precedent thereto, the County and the County Board will
forthwith do all further acts and take all further proceedings as may be required by law to make the
assessments a valid and binding lien upon such property. The special assessments have heretofore
been authorized. Subject to such adjustments as are required by the conditions in existence at the
time the assessments are levied, it is hereby determined that the assessments shall be payable in
equal, consecutive, annual installments, with general taxes for the years shown below and with
interest on the declining balance of all such assessments at the rates per annum not less than the rate
per annum set forth opposite the collection years specified below:
Improvement Designation

Levy Years
See attached

Collection Years

Amount
$

Interest Rate
%

At the time the assessments are in fact levied the County Board shall, based on the thencurrent estimated collections of the assessments, make any adjustments in any ad valorem taxes
required to be levied in order to assure that the County continues to be in compliance with
Minnesota Statutes, Section 475.61, Subdivision 1.
17.
Coverage Test. The special assessments are such that if collected in full they,
together with estimated collections of other revenues herein pledged for the payment of the Bonds,
will produce at least five percent in excess of the amount needed to meet when due the principal and
interest payments on the Bonds.
18.
General Obligation Pledge. For the prompt and full payment of the principal and
interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers
of the County shall be and are hereby irrevocably pledged. If the balance in the Debt Service
Account is ever insufficient to pay all principal and interest then due on the Bonds and any other
bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the County
which are available for such purpose, and such other funds may be reimbursed with or without
interest from the Debt Service Account when a sufficient balance is available therein.
19.
Defeasance. When all Bonds have been discharged as provided in this paragraph, all
pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds
shall, to the extent permitted by law, cease. The County may discharge its obligations with respect
to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or
before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid
when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient
for the payment thereof in full with interest accrued to the date of such deposit. The County may
also discharge its obligations with respect to any prepayable Bonds called for redemption on any
date when they are prepayable according to their terms, by depositing with the Bond Registrar on or
before that date a sum sufficient for the payment thereof in full, provided that notice of redemption
thereof has been duly given. The County may also at any time discharge its obligations with respect
to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such
action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as
an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67,
Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as
shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due
thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such
earlier redemption date.
20.
Compliance with Reimbursement Bond Regulations. The provisions of this
paragraph are intended to establish and provide for the County's compliance with United States
Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the
"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the
County to reimburse itself for any expenditure which the County paid or will have paid prior to the
Closing Date (a "Reimbursement Expenditure").
The County hereby certifies and/or covenants as follows:
(a)
Not later than 60 days after the date of payment of a Reimbursement
Expenditure, the County (or person designated to do so on behalf of the County) has made or
will have made a written declaration of the County's official intent (a "Declaration") which

effectively (i) states the County's reasonable expectation to reimburse itself for the payment
of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives
a general and functional description of the property, project or program to which the
Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a
specific fund or account of the County and the general functional purpose thereof from
which the Reimbursement Expenditure was to be paid (collectively the "Project"); and (iii)
states the maximum principal amount of debt expected to be issued by the County for the
purpose of financing the Project; provided, however, that no such Declaration shall
necessarily have been made with respect to: (i) "preliminary expenditures" for the Project,
defined in the Reimbursement Regulations to include engineering or architectural, surveying
and soil testing expenses and similar prefatory costs, which in the aggregate do not exceed
twenty percent of the "issue price" of the Bonds, and (ii) a de minimus amount of
Reimbursement Expenditures not in excess of the lessor of $100,000 or five percent of the
proceeds of the Bonds.
(b)
Each Reimbursement Expenditure is a capital expenditure or a cost of
issuance of the Bonds or any of the other types of expenditures described in Section 1.1502(d)(3) of the Reimbursement Regulations.
(c)
The "reimbursement allocation" described in the Reimbursement Regulations
for each Reimbursement Expenditure shall and will be made forthwith following (but not
prior to) the issuance of the Bonds and in all events within the period ending on the date
which is the later of three years after payment of the Reimbursement Expenditure or one
year after the date on which the Project to which the Reimbursement Expenditure relates is
first placed in service.
(d)
Each such reimbursement allocation will be made in a writing that evidences
the County's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if
made within thirty days after the Bonds are issued, shall be treated as made on the day the
Bonds are issued.
Provided, however, that the County may take action contrary to any of the foregoing
covenants in this paragraph upon receipt of an opinion of Bond Counsel for the Bonds stating in
effect that such action will not impair the tax-exempt status of the Bonds.
21.
Certificate of Registration. A certified copy of this resolution shall be filed in the
office of the County Coordinator, together with such other information as the County Coordinator
shall require and the County Coordinator shall issue a certificate that the Bonds have been entered in
the County Coordinator's Bond Register and that the tax levy required by law has been filed and
levied.
22.
Records and Certificates. The officers of the County are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the County relating to the
Bonds and to the financial condition and affairs of the County, and such other affidavits, certificates
and information as are required to show the facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the County as to the facts recited therein.

23.
Negative Covenant as to Use Bond Proceeds and Project. The County hereby
covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit it to be
used, or to enter into any deferred payment arrangements for the cost of the Project, in such a
manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and
141 through 150 of the Code.
24.
Tax-Exempt Status of the Bonds; Rebate. The County shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross income
under Section 103 of the Code of the interest on the Bonds, including without limitation (a)
requirements relating to temporary periods for investments, (b) limitations on amounts invested at a
yield greater than the yield on the Bonds, and (c) the rebate of excess investment earnings to the
United States. The County expects to satisfy the twenty four month expenditure exemption for
gross proceeds of the Bonds as provided in Section 1.148-7(d)(1) of the Regulations. If any
elections are available now or hereafter with respect to arbitrage or rebate matters relating to the
Bonds, the Chair, the County Coordinator, or either of them, are hereby authorized and directed to
make such elections as they deem necessary, appropriate or desirable in connection with the Bonds,
and all such elections shall be, and shall be deemed and treated as, elections of the County.
25.
Designation of Qualified Tax-Exempt Obligations. In order to qualify the
Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code,
the County hereby makes the following factual statements and representations:
(a)

the Bonds are issued after August 7, 1986;

(b)

the Bonds are not "private activity bonds" as defined in Section 141 of the Code;

(c)
the County hereby designates the Bonds as "qualified tax exempt obligations" for
purposes of Section 265(b)(3) of the Code;
(d)
the reasonably anticipated amount of tax exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be
issued by the County (and all entities treated as one issuer with the County, and all subordinate
entities whose obligations are treated as issued by the County) during this calendar year 2016 will
not exceed $10,000,000;
(e)
not more than $10,000,000 of obligations issued by the County during this calendar
year 2016 have been designated for purposes of Section 265(b)(3) of the Code; and
(f)

the aggregate face amount of the Bonds does not exceed $10,000,000.

The County shall use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designation made by this paragraph.
26.
Official Statement. The Official Statement relating to the Bonds prepared and
distributed by the Purchaser is hereby approved and the officers of the County are authorized in
connection with the delivery of the Bonds to sign such certificates as may be necessary with respect
to the completeness and accuracy of the Official Statement.
27.
Continuing Disclosure. The County is the sole obligated person with respect to the
Bonds. The County hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),

promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the
"Undertaking") hereinafter described to:
(a)
Provide or cause to be provided to the Municipal Securities Rulemaking Board (the
"MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual financial
information and operating data in accordance with the Undertaking. The County reserves the right
to modify from time to time the terms of the Undertaking as provided therein.
(b)
Provide or cause to be provided to the MSRB notice of the occurrence of certain
events with respect to the Bonds in not more than ten (10) business days after the occurrence of the
event, in accordance with the Undertaking.
(c)
Provide or cause to be provided to the MSRB notice of a failure by the County to
provide the annual financial information with respect to the County described in the Undertaking, in
not more than ten (10) business days following such occurrence.
(d)
The County agrees that its covenants pursuant to the Rule set forth in this paragraph
and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the County's obligations under
the covenants.
The Chair of the County Board and County Coordinator, or any other officer of the County
authorized to act in their place (the "Officers") are hereby authorized and directed to execute on
behalf of the County the Undertaking in substantially the form presented to the County Board
subject to such modifications thereof or additions thereto as are (i) consistent with the requirements
under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers.
28.
Severability. If any section, paragraph or provision of this resolution shall be held to
be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
29.
Headings. Headings in this resolution are included for convenience of reference only
and are not a part hereof, and shall not limit or define the meaning of any provision hereof.

COORDINATOR
Motion was made by Commissioner Henkels and seconded by Commissioner Schultz to adopt
County Board Resolution 16 059 Absentee, UOCAVA and Mail Ballot Board. Commissioners
Wachal and Hummel recused themselves due to conflict of interest. Motion carried.
RESOLUTION 16 - 059
JACKSON COUNTY BOARD RESOLUTION

WHEREAS, The County Board of Commissioners of the County of Jackson, desires to establish an
absentee ballot board, UOCAVA absentee ballot board and mail ballot board for the 2016 Primary
and General elections, and
WHEREAS, Said board must examine all return envelopes and accept or reject the absentee or mail
ballots in the manner provided in Minnesota Statutes 203B.121, subd. 1 and 204B.245, subd. 2.
NOW, THEREFORE, BE IT RESOLVED That the Jackson County Board of Commissioners hereby
certify that the absentee ballot board, UOCAVA absentee ballot board and mail ballot board for the
2016 Primary and General elections shall consist of the following members:
Kevin Nordquist
Patti Wachal
Jill Horn
Heather Hummel
Adopted this 17th day of May, 2016.
_____________________________
Rosemary Schultz, Chair
ATTEST: ___________________________________
Steven Duncan, County Coordinator
COMMITTEE AND BOARD REPORTS
Commissioner Henkels reported on Southwest Mental Health Center Governing Board, Des Moines
Valley Health and Human Services Board (DVHHS), and Southwest Regional Development
Commission Board of Directors Meeting.
Commissioner Wachal reported on DVHHS and Greater Blue Earth River Basin Alliance
(GBERBA.)
Commissioner Tusa reported on Hunger Team, Fair Board, DVHHS, Western Community Action,
and Bus Facility Meeting.
Commissioner Schultz reported on Research to Action conference call, Policy Committee, Trails
Meeting, DVHHS, and Jackson County Library Board.
Commissioner Hummel reported on Policy Committee, DVHHS, and Bus Facility Meeting.
ADJOURN
Motion was made by Commissioner Hummel and seconded by Commissioner Tusa to adjourn
the meeting. The motion carried unanimously.

JACKSON COUNTY BOARD OF COMMISSIONERS

_____________________________________________
Rosemary Schultz, Chair
ATTEST: _______________________________
Steven Duncan, County Coordinator