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HomeMy WebLinkAbout78-023RESOLUTION #78.23 Councilperson Curry then introduced the 'following resolution and moved its adop'Lion: RESOLUTION AWARDING SALE, }'RU SCRIBING THE FORM AND DETAILS, AND PROVIf):(LNG FOR TfIL; PAYMENT OF $2,205,000 GENERAL, OBLIGATION REFUNDING BONDS OF 1978 BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, as follows: Section 1. Authorization and Sale. 1.01. This Council, by resolution duly adopted March 6, 1978, authorized the issuance and sale of $2,205,000 General Obligation Refunding Bonds of 1978.of the City, dated April 1, 1978, hereinafter called "the Bonds," the proceeds of which are to be used, together with any additional funds of the City which might be required, to refund in advance of maturity the outstanding $725,000 prin- cipal amount of Improvement Bonds of 1975 of the City dated July 1, 1975, and the outstanding $1,480,000 principal amount of Improvement Bonds of 1975 of the City dated December 1, 1975, all such 1975 Bonds being hereinafter collectively called "the Refunded Bonds." 1.02. Notice of sale of the Bonds has been...duly published, and the Council has publicly considered all_ sealed bids presented in conformity with the notice. The most favorable of such bids is ascertained to be that of First National Bank of Minneapolis , of Minneapolis , Minnesota , and associates, to purchase the Bonds at a price of par plus accrued interest plus a premium of $ 88.20 , and upon the further terms and conditions set forth in this resolution. T 1.03. The total amount of interest to accrue and become due on the Refunded Bonds from April 1, 1978,.to their stated maturity dates is $1,422,323.96. Under the terms of said bid the total amount of interest to accrue and become due on the Bonds from April 1, 1978 to their stated maturity dates, less any premium bid, is $1,187,647_63. Thus, the reduction' of interest cost resulting from the refunding of the Refunded Bonds exceeds 5% of the interest to accrue on the Refunded Bonds after April 1, 1978. 1.04. The Mayor and Clerk -Administrator are directed to execute in duplicate a contract on the part of the City for the sale of the Bonds in accordance with the proposal described in Section 1.02, and to deliver a duplicate to the purchasers. The Clerk -Administrator is directed to retain the purchaser's check :securing the contract of sale until the Bonds are delivered and the purchaser price is paid, and to return the checks securing other bids to the respective bidders. Section 2. Bond-Terms,Execution and Delivery, 2.01 The Bonds shall be ilea; ignal ed General. Obli- gation bli-gation Refunding Bonds of 1978, shall be dated April 1, 1978, shall be issued in the denomination of $5,000 each, numbered serially from 1 to 441, inclusive, shall mature y serially on February 1 in the respective years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption at the respective ' annual rates set forth opposite such years and amounts, as follows: Year Amount Rate Year Amount Rate 4 1980 $130,000 5.80% 1989 $125,000 5.10% 1981 130,000 5.80% 1990 120,000 5.20% 1982 130,000 5.80% 1991 120,000 5.25% 1983 130,000 5.80% 1992 120,000 5.30% 1984 130,000 5.70% 1993 120,000 5.40% 1985 130,000 5.60% 1994 120,000 5.500 1986 130,000 4.90% 1995 120,000 5.50% 1987 125,000 5.00% 1996 120,000 5.60% 1988 125,000 5.00% 1997 80,000 5.606 2.02 The Bonds maturing in the years 1980 through 1988 shall not be subject to redemption before maturity. The Bonds maturing in the years 1989 through 1997 shall each be subject to redemption and prepayment at the option of the City on February 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 days 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 P semiannually on each February 1 and August 1, commencing on F February 1, 1979. The principal of and interest on the Bonds shall be payable at Northwestern National. Bank of. M.i.1111enpolis 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: No. UNITED STATES OF A1,1ERICA COUNTY OF DAKOTA CITY OF LAKEVILLE GENERAL OBLIGATION REFUNDING BOND OF 1978 $5,000 K.N0W ALL MEN BY THESE PRESENTS that the City of Lakeville, a duly organized and existing municipal corpo- ration of Dakota County, 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 1st day of February, 19 , or, if this bond is redeemable as provided below, then on a date prior thereto on which it has been duly called for redemp- tion, and to pay interest on said principal sum from the date hereof until said principal sum is paid, or, if this bond is redeemable, until it has been duly called for redemption, at the rate of and hundredths percent ( %) per annum. Interest hereon is payable semiannually on February 1 and August 1 of each year, commencing February 1, 1979, in accordance with and upon presentation and surrender of the interest coupons appurte- nant hereto. Both principal of and interest on this bond 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 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 $2,205,000, all of like date and tenor except as to serial number, maturity date, interest rate and redemption privilege, issued for the purpose of refunding a like principal amount of valid outstanding Improvement Bonds of 1975 of the City, pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapter 475. Bonds of this issue maturing in the years 1980 through 1.988 are payable on their respective stated maturity dates without option of prepayment, but bonds having stated maturity dates in the years 1989 through 1997 are each subject to redemption and prepayment at the option of the City and in inverse order of serial numbers on February 1, q 1988 and any interest payment date thereafter, at par and accrued interest. Notice of redemption identifying the bonds to be redeemed will be published at: least once not less than thirty days before the date fixed for redemption in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, circu- lating throughout Minnesota and carrying financial news as a part of its service. 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 precedent 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 in regular and due form, time and manner as so required; that each and all of the bonds refunded by this issue mature or have been duly called for redemption and prepayment on or prior to March 1, 1986, and the City has appropriated the proceeds of the bonds of this issue, together with such other legally available funds of the City as may be required, and has invested such moneys in securities issued by the United States or certain of its agencies, in such amounts, maturing on such dates, and bearing interest at such rates as are required to provide funds sufficient to pay all principal and interest and redemption premiums due on the refunded bonds on or before March 1, 1986, and has irrevocably placed such funds and securities in escrow for this purpose; that the bonds are payable from the Improvement Bond Account in the Sinking Fund of the City and the collections of special assessments and ad valorem taxes levied with respect to local improve- ments which have been appropriated to such account; that, if necessary for payment of principal of and interest on the bonds of this issue, ad valorem taxes may be levied upon all taxable property in the City without limitation as to rate or anount; and that the issuance of this bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. 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 certificate appearing on the reverse side hereof to be executed by the printed facsimile signatures of the Mayor and City Clerk -Administrator, and by a printed facsimile of its official seal, and has caused this bond also to be executed by the manual signature of a duly authorized officer of The First National Bank of Saint Paul, which has been designated as authenticating agent, and has caused this bond to be ,dated as of April. 1, 1978. (Facsimile signature) (Facsimile signature) City Clerk -Administrator Mayor THE FIRST NATIONAL 13ANK OF SAINT PAUL Authorized Signature (Form of Coupon) ' No. $ i'. 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 bearer at Minnesota, +' the amount shown hereon in lawful money of the United States of America, for the interest then due on its General Obligation Refunding Bond of 1978, dated as of April 1, 1978, No. (Facsimile signature) (Facsimile signature) City Clerk -Administrator. Mayor (Form of certificate to be 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 legal opinion rendered by bond counsel on the issue of bonds of the City of Lakeville, Minnesota, which includes the within bond, dated as of the date of delivery of and payment for the bonds. (Facsimile signature) (Facsimile signature) City Clerk -Administrator Mayor 2.05. The bonds shall be prepared under the direction: of the City Clerk -Administrator and shall be executed on behalf of the City by a printed facsimile of the signature of the Mayor and City Clerk -Administrator, by a printed facsimile of the official seal of the City, and by the manual signature of a duly authorized officer of The First National Bank of Saint Paul, which is hereby designated as authenticating agent pursuant to Minnesota Statutes, Section 475.55. The authenticating agent is authorized to execute and authenticate the bonds on behalf of the City upon receipt of notification from bond counsel for the City that all proceedings required to be taken to authorize their - yl �a issuance have been completed, and that, upon execution, the bond will be valid and binding obligations of the City in accordance with their terms and the provisions of this resolution. The interest coupons shall be executed and authenticated by the printed, engraved or lithographed facsimile signatures by the Mayor and City Clerk-Adcninistrator. 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 facsimile signatures of the Mayor and City Clerk -Administrator. When said bonds have been so executed and authenticated, they shall be delivered by the Clerk -Administrator to the purchaser thereof upon payment of the purchase price in accordance with the con- tract of sale heretofore made and executed, and said purchaser shall not be obligated to see to the application of the purchase price. Section 3. Use of Bond Proceeds and Accrued Interest. The proceeds of the Bonds, including any premium and accrued interest, are irrevocably appropriated, together with such additional sum as may be required from funds now on hand, for the payment and redemption of the Refunded Bonds at their respective maturities or at the earliest dates specified in the resolutions authorizing their issuance for the redemption thereof, and for the payment of interest to become due on the Refunded Bonds on or before the respective dates on which they are to be paid and redeemed. The Clerk -Administrator is hereby authorized and directed, simultaneously with the delivery of the Bonds, to deposit the proceeds thereof, including any premium and accrued interest, and any additional sum which may be required, in escrow with Northwestern National Bank of Minneapolis , in Minneapolis , Minnesota, a banking institution whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than $500,000, and shall invest the funds so deposited in securities authorized for such purpose by Minnesota Statutes, Section 475.67, subdivision S, maturing on such dates and bearing interest at such rates as are required to provide funds sufficient, with cash retained in the escrow account, to pay when due the interest to accrue on the Refunded Bonds to their respective maturity dates or the dates designated for their earlier redemption and prepayment, and to pay the principal amount of each of the Refunded Bonds at maturity or at the date designated for the redemption and prepayment thereof. The Mayor and Clerk - Administrator are hereby authorized to enter into an escrow agreement with said Bank establishing the terms and condi- tions for the escrow account in accordance with Minnesota Statutes, Section 475.67. Section 4. Sinking -Fund and Tax Levies. 4.01 The Refunded Bonds are payable from the Improvement Bond Account in the Sinking Fund of the City and the special assessments and ad valorem taxes appropriated thereto. Upon delivery of the Bonds, the Refunded Bonds, including interest thereon, will he payable primarily from the escrow account establisheil pursuant to Section 3. Therefore, so long as the escrow account is maintained and paymenEs are made as provided in the escrow agreement, tte special assessments and ad valorem taxes from time to tiie on hand in the Improvement Bond Account: or icl finally pledged for payment of the refunded Bonds will not, be required for such purpose, and shall be made available for payment of principal and interest on the bonds which shall be payable from said Improvement Bond Account. 4.02 It is hereby estimated that the amounts of special assessments and ad valorem taxes to be made avail- able in the Improvement Bond Account pursuant to Section 4.01 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. However, the full faith and credit and taxing powers of the City are pledged to the payment of the Bonds and interest and, should the moneys on hand in the 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, without limitation as to rate or amount. Section 5. Redemption of Refunded Bonds and Certification of Proceedings. 5.01 The Clerk -Administrator is hereby authorized and directed forthwith to call for redemption and prepayment on their earliest redemption date all Refunded Bonds which by their terms are subject to redemption. Notice of the redemption of all such bonds shall be published in accor- dance with the terms of the resolutions authorizing their issuance. 5.02 The Clerk -Administrator is directed to file with the County Auditor of Dakota County a certified copy of this resolution, and to obtain from the County Auditor a certificate stating that the Bonds have been entered upon his bond register. 5.03 The officers of the City and said County Auditor are authorized and directed to prepare and furnish to the purchasers of the Bonds, and to bond counsel, certified copies of all proceedings and records of the City relating to the authorization and certificates and issuance of the Bonds and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the officers' books and records or are otherwise known to them. All such certificate copies, certificates and affidavits, including any heretofore furnished, constitute representations of the City as to the correctness of the facts recited therein and the actions stated therein to have been taken. 5.04 The Mayor and the Clerk -Administrator being the officers of the City charged with the responsibility for issuing the obligations 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(d) of the Internal Revenue Code and the regu- lations 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 certification shall further state that to the best of the knowledge and belief of the certifying officers there are no other facts, estimates or circumstances that would materially change such expectation. 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.