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HomeMy WebLinkAbout77-64WN RESOLUTION 77-64 Couneilperson Curry introduced tho following resolution and moved its adoption: RESOLUTION AUTHORIZING, SELLING AND ESTABLISHING THE TERMS of $215,000 IMPROVEMENT BONDS OF' 1977, SERIES B, AND PROVIDING FOR THEIR PAYMENT BE•IT RESOLVED by the City Council of the City of Lakeville, Minnesota: Section 1. Authorization and Sale. 1.01. This Council, by resolution adopted September 6, 1977, entitled "Resolution Providing For The Issuance and Sale of $215,000 Improvement Bonds of 1977, Series B", authorized the issuance and sale of said -bonds. The_ provisions of said _ resolution are incorporated herein by reference. 1.02. Notice of sale of the bonds has been duly published and the Council has publicly received, opened and considered all sealed bids presented in conformity with the notice and determines that the most favorable of such bids is that of The First American National Bank of St. Cloud, Minnesota , to purchase the bonds at a price of $215,000.00 , plus accrued interest on the total principal amount to the date of delivery and payment, and upon the further terms and.conditions set forth in this resolution. 1.03. The Mayor and City Administrator are directed to execute in duplicate a contract on the part of the City for the sale of the bonds in accordance with this proposal, and to deliver a duplicate to the purchaser. The Administrator shall retain the purchaser's check securing the contract of sale until the bonds are delivered and the purchase price is paid, and shall return the checks securing other bids to the respective bidders. Section 2. Form of Bonds, Certificate and Coupons. 2.01. The bonds issued hereunder shall be printed in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF LAKEVILLE IMPROVEMENT BOND OF 1977, SERIES B 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 the sum of FIVE THOUSAND DOLLARS on the 1st day of February, without option of prior payment, and to pay interest thereon at the rate of percent ( %) per annum from the date hereof until the principal sum is paid, payable semiannually on February 1 and August 1 in each year, commencing August 1, 1978, 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 or at the office of such successor paying agent as may be designated by the City Council under the provisions of the resolution authorizing the issuance hereof, in any coin or currency of the United States of America which on the 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 are hereby irrevocably pledged. This bond is one of an issue in the aggregate principal amount of $215,000, all of like date and tenor except as to serial number, maturity date and interest rate, all issued for the pur- pose of financing the cost of local improvements in and for the City, and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475, and pursuant to resolutions duly adopted by the City Council. The principal of and interest on this bond are payable primarily from the Improvement Bond Account in the Sinking Fund of the City, but if the moneys on hand in said Account are ever insufficient for this purpose, the City is required to pay both principal and interest out of its General Fund. IT IS CERTIFIED AND RECITED 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 prior to the issuance hereof the City has covenanted and agreed to levy special assessments upon property specially benefited by the improvements financed by the bonds, which assessments will be collectible with interest in the years and in amounts not less than 5% in excess of the principal of and interest on the bonds when due, and has appro- priated such assessments and interest to said Improvement Bond Account; that, if necessary for the payment of such principal and interest, the City is required by law to levy ad valorem taxes on all taxable property within its corporate limits, which taxes are not subject to limitation as to rate or amount; and that the issuance of this bond did 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 on the reverse side hereof to be executed and authenticated by the signatures of the Mayor and of the City Administrator, and the corporate seal to be affixed hereto, all such signatures and the seal being authenticated facsimiles except for the manual signature of one of said officers subscribed on the face of this bond, and has dated this bond as of November 1, 1977. Mayor f Attest: City Administrator (Facsimile Seal) 2.02. A copy of the text of the legal opinion of bond counsel shall be printed on the reverse side of each bond and identified by a certificate in substantially the following form: 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 which includes the within bond, dated as of the date of delivery of and payment for the bonds. (Facsimile signature) (Facsimile signature) City Administrator Mayor 2.03. Interest on each bond to maturity shall be represented by a consecutively numbered set of interest coupons, printed in substantially the following form: No. , On the 1st day of February (August), unless the bond described below is subject to and has been called for earlier redemption, the City of Lakeville, Dakota County, Minnesota, will pay to bearer at , in I , the amount shown hereon in lawful money of the United States of America for interest then due on its Improvement Bond of 1977, Series B dated November 1, 1977, No. (Facsimile signature) City Administrator (Facsimile signature) Mayo2 Section 3. Bond Terms, Execution and Delivery. 3.01. The bonds issued hereunder shall be designated Improvement Bonds of 1977, Series B shall be in the aggregate principal amount of $215,000, dated November 1, 1977, shall be issued in the denomination of $5,000 each, numbered serially from 1 to 43 inclusive, shall mature serially on February 1 in the respective years and amounts stated below, without option of prior payment, and shall bear interest from date of issue until paid at the respective annual rates stated opposite such years and amounts: Year Amount Rate Year Amount Rate 1979 $25,000 4.10% 1984 $20,000 4.60% 1980 20,000 4.20% 1985 20,000 4.70% 1981 20,000 4.30% 1986 20,000 4.80% 1982 20,000 4.40% 1987 25,000 4.90% 1983 20,000 4.50% 1988 25,000 5.00% 3.02. The interest on the bonds shall be payable semiannually on February 1 and August 1 in each year, commencing August 1, 1978. The principal of and interest•on the bonds. shall be payable at The First American -National Bank . , in St. Cloud , Minnesota , which is designated .as paying agent, or in the event of its resignation, removal or incapability of acting as paying agent, at the office of such successor paying agent as may be appointed by the Council, and the City agrees to pay the reasonable and cus*.omary charges of the paying agent for this service. 3.03. Before the bonds are delivered the City Adminis— trator shall file with the County Auditor of Dakota County a certified copy of this resolution, together with such other information as the Auditor may require, and shall obtain from the Auditor a certificate that the issue has been entered on his register. 3.04. The bonds and the interest coupons and the certificate on the reverse side of each bond shall be executed and authenticated on behalf of the City by the signatures of the Mayor and the City Administrator, and the corporate seal of the City shall be affixed to each bond. All signatures and the seal may be printed, engraved or lithographed facsimiles except for the manual signature of one of said officers which shall be subscribed on the face of each bond. The bonds shall then be delivered by the City Administrator to the purchaser upon receipt of the cash purchase price stated in Section 1.02. The purchaser shall not be required to see to the application of the proceeds of the bonds. Section 4. Funds. 4.01. A separate fund shall be provided by the City Administrator for each of the improvements designated in the resolution referred to in Section 1.01. The City appropriates to each fund (a) an amount of the bond proceeds determined to be necessary for payment of the cost of the improvement for which �- the fund was created, and (b) all collections of special assess- ments levied with respect to the improvement for which it was created until completion of the improvement and payment of the costs thereof. Each fund shall be used solely to defray expenses of the improvement for which it is created until that improvement has been completed and the cost thereof has been paid. Thereupon each fund shall be discontinued, and any balance of the proceeds of the bonds remaining therein may be transferred to the fund established to pay the cost of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429. If not so transferred, any such balance, together with all subsequent collections of special assessments levied for the improvement, shall be credited and paid into the Improvement Bond Account. 4.02. The bonds herein authorized and the interest -therenri"shall he -payable from the Improvement Bond Account in the Sinking Fund of the City, which shall be maintained on the official books and records of the City so long as any of the bonds are still outstanding and unpaid. If the balance in the Account is at any time insufficient to pay all principal and intere$t due on the bonds, such amounts shall -be paid from thL-'general fund of the -City, subject to reimbursement -from the Account when the balance therein is sufficient, and the Council covenants and agrees that.it will each year levy an ad valorem tax in an amount sufficient to eliminate any such accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory tax limitation. 4.03. The City irrevocably pledges and appropriates to the Improvement Bond Account all bond 'proceeds in excess of $215,000: any balance of bond proceeds and special assessments on hand in any improvement fund upon completion of the improve- ment.for which it.is'established; and all subsequent collections - of special assessments, and taxes, if any, levied pursuant to Sections 4.04 and 4.05 hereof. 4.04. The City further covenants and agrees that it has performed all acts and things necessary for the final and valid levy of special assessments upon the properties benefited by each of the local improvements financed by said bonds in amounts proportionate to and not exceeding special benefits received by the respective properties, and with respect to each improvement and the properties benefited thereby, in an aggregate principal amount which is not less than 20% of the cost thereof. It is anticipated that the remaining installments of said special assessments and the interest thereon will be collected in the following years and amounts: . Year Amount Year Amount 1978 $43,000 1983 $30,100 1979 $36,980 1984 $28,380 1980 $35,260 1985 $26,660 1981 $33,540 1986 $24,940 1982 $31,820 1987 $23,220 In the event that any such assessment shall at any time be held invalid with respect to any lot or tract of land, due to any error, defect or irregularity in any action or proceedings taken or to be taken by the City or by this Council or by any of the officers or employees of the City, either in the making of such assessment or in the performance of any condition precedent thereto, the City hereby covenants and agrees that it will forthwith do all such things and take all such further proceedings as shall be required by law to make such assessment a valid and binding lien upon said property. 4.05. The full faith, credit and taxing powers of the City are irrevocably pledged for the prompt and full payment of the principal of and interest on the bonds issued hereunder. However, it is estimated that the collections of special assess- ments and interest referred to in Section 4.04 will be not less than 5% in excess of the principal of and interest on the bonds when due, and accordingly no tax is levied at this time. Section 5. Authentication of Transcript. The officers of the City and the 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 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 certified copies, certi- ficates and affidavits, including any heretofore furnished, con- stitute representations of the City as to the correctness of the facts recited therein and the actions stated therein to have been taken. Section 6. Discharge. When all of the Improvement Bonds of 1977, Series B, and all coupons appertaining thereto, have been discharged as provided in this Section, all pledges, covenants and other rights granted by this resolution shall cease. The City may discharge all bonds and coupons due on any date by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The City may also discharge all bonds of said issue at any time by irrevocably depositing in escrow with the paying agent or other suitable bank, for the purpose of paying all principal and interest due on such bonds to maturity, or if pre- payable, to an earlier date on which they may be called for redemption, a sum of cash and securities of the types described in Minnesota Statutes, Section 475.67, as amended, in such aggregate amount, bearing interest at such rates and maturing or callable at the holder's option on such dates as shall be required to provide funds sufficient for this purpose. Section 7. Arbitrage. The Mayor, the Clerk -Administrator and the Treasurer, 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 1.103-13 of'the amended Income Tax Regulations (26 CFR Part 1) published in the Federal Register, May 5, 1973. 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 or obligations, and the certification shall further state that to the best of the.knowledge and belief of the certifying officers there zre not other facts, estimates or circumstances that.would materially change such expectation. Attest: . OM CLi� Mayor I c ity Cler--A ministrator The motion for the adoption of the foregoing resolution was duly seconded by Councilperson Zaun and upon vote thereon, the following voted in favor thereof: Mako, Curry and Zaun and the following voted against the same: None whereupon said resolution was declared duly.passed and adopted.