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HomeMy WebLinkAbout78-031CERTIFICATION OF MINUTES RELATING TO $700,000 IMPROVFMF,NT FONDS OF 1978 Issuer: City of Lakeville, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held Monday, May 15, 1978, at 7:30 o'clock P.M. in the Council Chambers in the Public Works Building: Members present: Mayor Gordon Lekson, Councilmembers Marianne Curry, Robert Nelson, Jerry Spande and Duane Zaun Members absent: None RESOLUTION X178-31 Documents Attached: Minutes of said meeting (pages): RESOLU`1'ION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $700,000 IMPROVEMENT BONDS OF 1978 I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certifying that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this /Sday of May, 1978- /,zA, / Signature Patrick McGarvey, City Administrator icilperson Curry then introduced the . following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $700,000 IMPROVEMENT BONDS OF 1978 BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, as follows: 1. Authorization and Sale. This Council, by resolution adopted April 3, 1978, authorized the issuance and public sale of $700,000 Improvement Bonds of 1978 of the City, to provide moneys needed together with collections of special assessments on hand, to pay the outstanding $905,000 principal amount of General Obligation Temporary Improvement Bonds of 1975 of the City dated July 1, 1975, maturing on July 1, 1978. Notice of sale of the Bonds has been duly published, and the Council, having examined and considered all bids received pursuant to the published notice, does hereby find and determine that the most favorable bid received is that of Allison -Williams Company of Minneapolis ,Minnesota , and associates, to purchase the Bonds at a price of $700,000.00 , plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. The sale of the Bonds is hereby awarded to said bidder, and the Mayor and Administrator are hereby autho- rized and directed on behalf of the City to execute a contract for the sale of the Bonds in accordance with the terms of said ' bid . The good faith check of the successful bidder shall be retained by the Administrator unt'.l the Bonds have been delivered and the purchase price paid. The good faith checks of other bidders shall be returned to them forthwith. Section 2. Bond Terms, Execution and Delivery. 2.01 The Bonds shall be designated Improvement Bonds of 1978, shall be dated June 1, 1978, shall be issued in the denomination of $5,000 each, numbered serially from 1 to 140, inclusive, shall mature serially on February 1 in the respective years and amounts stated below, and shall bear interest from date of issue for redemption at the respective opposite such years and amounts, until paid or duly called annual rates set forth as follows: T Year Amount Irate Year Arnount Rate 1979 $40,000 5.70% 1988 $35,000 5.50% 1980 40,000 5.70% 1989 40,000 5.30% 1981 40,000 5.70, 1990 40,000 5.40% 1982 40,000 5.70% 1991 40,000 5.50% 1983 40,000 5.70% 1992 40,000 5.60% 1984 40,000 5.70% 1993 40,000 5.70% 1985 35,000 5.70% 1994 40,000 5.75% 1986 35,000 - 5.70% 1995 40,000 5.80% 1987 35,000 5.60% 1996 40,000 5.80% 2.02 The Bonds maturing in the years 1979 through 1988 shall not be subject to redempt.ion before maturity. The Bonds maturing in the years 1989 through 1996 shall each be subject to redemption and prepayment at the option of the City on Februrary 1, 1988 and any interest payment date thereafter, in inverse order of their serial numbers, at a price of par plus accrued interest. Notice of redemption identifying the Bonds to be redeemed shall be published at least once not less than thirty day: prior to the date fixed for redemption in a daily or weekly }periodical published in a Minnesota city of the first class or its metropolitan area, circulating throughout Minnesota and carrying financial news as a part of its service. 2.03 The interest on the Bonds shall be payable semiannually on each February 1 and August 1, commencing on February 1, 1979. The principal of and interest on the Bonds shall be payable at the First National Bank of Minneapolis , in Minneapolis , Minnesota, which is designated as paying agent, or in the event of its resigna- tion, removal or incapability of acting as paying agent, at the office of such successor paying agent as may be appointed by the Council. 2.04 The Bonds, appurtenant interest coupons and certification of legal opinion shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF LAKEVILLE IMPROVEMENT BOND OF 1978 No. $5,000 KNOW ALL MEN BY THESE PRESENTS that the City of Lakeville, a duly organized and existing municipal corporation of the County of Dakota, State of Minnesota, acknowledges itself to be indebted and for value received promises to pay to bearer upon presentation and surrender of this bond the sum of FIVE THOUSAND DOLLARS on the lst day of February, 19 , or, if this bond is redeemable as provided below, then on a date prior thereto on which it shall have been duly called for redemption, and to pay interest on said principal sum at the rate of per cent ( %) per annum, from the date hereof until said principal sum is paid, or if this bond is redeem- able, until it has been duly called for redemption, payable semiannually on each February 1 and August 1, commencing February 1, 1979, interest to maturity being payable in accordance with and upon presentation and surrender of the interest coupons appurtenant hereto. Both principal and interest are payable at in Minnesota, in any coin or currency of the United States of America which on their respective dates of payment is legal tender for payment of public and private debts. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This bond is one of an issue in the total Principal amount of $700,000, all of like date and tenor except as to serial number, maturity date, interest rate and redemption privilege, all issued for the purpose of refund- ing outstanding temporary improvement bonds of the City issued to finance the construction of local improvements heretofore duly ordered to be made within the City in accordance with the provisions of Minnesota Statutes, Chapter 429, and is issued pursuant to and in full conformity with the Constitution and laws of -the State of Minnesota thereunto enabling, and pursuant to resolutions duly adopted by the City Council . Bonds of this issue maturing in 1988 and earlier years are payable on their respective stated maturity dates without option of prior payment, but ponds having stated maturity dates in 1989 and later y0drs Me each subject to redemption and prepayment at the option of the City and in inverse order of serial numbers on February 1, 1988 and any interest payment date thereafter, at par and accrued interest. Not less than thirty days before the date specified for redemption of any of the bonds, the City will cause notice of such redemption to he published in a financial periodical published in a Minnesota city of the first class or its metropolitan area. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that the special assessments appropriated to the payment of the bonds are collectible for the years and in amounts sufficient to produce sums not less than 5% in excess of the principal of and interest on the bonds of this issue when due; that if necessary for payment of such principal and interest, ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; and that the issuance of this bond does not cause the indebtedness of the City to exceed any constitutional or :t-atutory limitation of indebtedness. IN WITNESS WHEREOF the City of Lakeville, Dakota County, Minnesota, by its City Council, has caused this bond and the interest coupons appurtenant hereto and the certi- ficate appearing on the reverse side hereof to be executed by the signatures of the Mayor and the City Administrator, and by affixation of its official seal, all such signatures and the seal being printed facsimiles except for the manual signature of one of said officers on the face of this bond, and has caused this bond to be dated as of June,, 1978. Mayor AttLe�t:� zity A mi strator// (Form of C'oul)nn) No. Unless the bond described below is subject to and has been duly called for earlier redemption, on the 1st day of February (August), 19 , the City of Lakeville, Dakota County, Minnesota, will pay to beater at , in , Minnesota, the amount shown hereon in lawful money of the United States of America, for the interest then due on its Improvement Bond of 1978, dated as of June 1, 1978, No. (Facsimile signature) (Facsimile signature) City Administrator Mayor (Form of certificate to he printed on the reverse side of each bond, following a full copy of the legal opinion) We certify that the above is a full, true and correct copy of. the 1 opal opinion rendered by bond counsel on the issue of bonds of the City of Eakev ill e, Minnesota, which includes the within bond, dated as of the date of delivery of and payment foi the bonds. (Facsimile signature) (Facsimile signature) City Administrator Mayor 2.05 The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and City Administrator, and by the official seal of the City, one such signature and the seal to be printed facsimiles and the other signature to be manual. The interest coupons shall be executed and authenticated by the printed facsimile signa- tures of the Mayor and City Administrator. On the reverse side of each Bond shall be printed a copy of the approving opinion to be rendered by bond counsel, certified by the printed facsimile signatures of the Mayor and City Adminis- trator. When the Bonds have been so executed and authenti- cated, they shall be delivered by the City Administrator to the purchaser thereof upon k)ayment of the purchase price in accordance with the contract of sale heretofore made and executed, and said purchaser shall not be obligated to see to the application of the purchase price. Sect ion 3. Use of _Bond Pi oeeeds. The proceeds of the Bonds received from theurchascr thereof shall be credited and used as follows; $700,000 thereof shall be credited to the sinking fund established for the payment of the $945,000 General Obligation Temporary Improvement Bonds of 1975 of the City dated July 1, 1975 and used, together with the collections of special assessments and interest on hand therein, to pay and redeem Lhe Outstanding Bonds of said issue and the interest due thereon on July 1, 1978; and the balance of such proceeds shall be credited to the Improvement Bond Account in the Sinking Fund of. the City and used for the purposes thereof. Section 4. Payment of Bonds. The Bonds and the interest thereon shall be payable from the Improvement Bond Account in the Sinking Fund of the City heretofore estab- lished by this Council and the special assessments and ad valorem taxes appropriated thereto; provided that if the moneys on hand in the said AccounL are ever insufficient for this purpose, the Treasurer shall. pay such principal and interest from the General Fund of the City, and shall reimburse the General Fund for such transfers out of the next moneys received in said Account not needed to pay principal and interest coming due within the next six months. There is hereby appropriated to said Account, from and after July 1, 1978, all collections received before or after said date of special assessments and interest levied with respect to the local improvements financed by the General Obligation Temporary Improvement Bonds of 1975 of the City, not used for the payment of said Temporary Improvement Bonds. Section 5. Pl_edgee`of_Taxing Powers. The full. faith and credit and taxing power s of the City are pledged to the payment of the Bonds and the interest thereon when due and, should the moneys on hand in the said Improvement Bond Account ever be insufficient for said purpose, the City affirms its obligation to pay the Bonds and interest when due from moneys on hand in its General Fund, and if necessary to levy ad valorem taxes upon all taxable property in the City for this purpose, withouL limitation as to rate or amount. However, it is hereby estimated that the amounts Of special assessments and interest to be made available in the Improvement Bond Account pursuant to Section 4 will provide sums at least 5% in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, and consequently no ad valorem taxes are levied for this purpose at this time. Section 6. Defeasance. When all of the Bonds and all coupons appertaining thereto have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City inay discharge its obligations with respect to any Bonds and coupons appertaining thereto which are due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond or coupon should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds according to their terms, by depositing with the payin(-I agent on or before that date an amount equal to the principal, interest and redemp- tion premium, if any, which are then due, provided that notice of such redemption has been duly given as provided herein. The City may also at any time discharge its obligations with respect to any Bonds, :subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law a:; an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interrst payable at such times and at such rates and maturing on such dates as shall be required to pay all principal, interest and redemption premiums to become due thereon to maturity or said redemption date. Section 7. Registration_ of Bonds. The City Administrator is hereby author.Lzed all directed to file a certified copy of this resolution with the County 1luditor of Dakota County, together with such additional information as he shall require, and to obtain from said County Auditor a certificate that the Bonds have heen duly entered upon his bond register. Section 8. Authentication of Transcript. The officers of the City and the County hereby authorized and directed to prepare and furnish to the purchasers of the Bonds, and to the attorneys approving the legality thereof, certified copies of all proceedings and records relating to the Bonds and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed repre- sentations of the City as to the correctness of all state- ments contained therein. Section 9. Arbitra e. The Mayor and the City Administrator being the off�rs of the City charged with the responsibility for issuing the Honds pursuant to this resolution, are authorized and directed to execute and deliver to the purchaser a certification in order to satisfy the provisions of Section 103(c) of the Internal Revenue Code and the regulations thereunder. Such certification shall state that on the basis of the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds as therein set forth, it is not expected that the proceeds of the Bonds will be used in such a manner that would cause the Bonds to be arbitrage bonds, and the certi- fication shall further state that to the best of the knowl- edge and belief of the certifying officers there are no other facts, estimates or circumstances that would materially change such expectation. Mayor Attes City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilperson Zaun and upon vote being taken thereon, the following voted in favor thereof: All members and the following voted against the same: None whereupon the resolution was declared duly passed and adopted, and was presented to and approved by the Mayor, and attested by the City Administrator.