HomeMy WebLinkAbout77-32RESOLUTION 77-32 '
Councilperson Emond then introduced
the following resolution and moved its adoption:
RESOLUTION AUTHORIZING, SELLING AND
ESTABLISHING THE TERMS OF $200,000
LIQUOR DISPENSARY REVENUE BONDS OF 1977,
AND MAKING PROVISION FOR THEIR PAYMENT
BE IT RESOLVED by the City Council of the City of
Lakeville, Minnesota, as follows:
Section 1. Authorization and Sale.
1.01. Liquor Dispensary Improvements. The City of
Lakeville now owns and operates a Municipal Liquor Dispensary
selling liquor both off -sale and on -sale, as a public revenue-
producing convenience, pursuant to Minnesota Statutes,
Chapter 340. This Council has determined that it is necessary
for the City to provide for the acquisition and betterment
of additions and improvements to the Municipal Liquor Dispensary
at an estimated construction cost of approximately $250,000.
1.02. Existing Indebtedness and Liens. The City
now has outstanding $20,000 principal amount of Municipal
Liquor Revenue Bonds of 1961 dated October 1, 1961, hereinafter
referred to as "the 1961 Bonds," payable as to both principal
and interest from the net revenues to be derived from the
operation of the Municipal Liquor Dispensary, and constituting
a first lien and charge on such net revenues.
1.03. Additional Bonds. It is necessary and expedient
for the City to sell and issue its Liquor Dispensary Revenue
Bonds of 1977, in the principal amount of $200,000, upon the
terms and conditions hereinafter set forth, to finance a portion
of the cost of such additions and improvements; and to make the
bonds payable solely from the net revenues of the Municipal
Liquor Dispensary on a parity as to both priDcipal and interest
with the outstanding 1961 Bonds, it being hereby found and
determined that the revenues to be derived from reasonable
charges for the services, products and by-products of said
Dispensary during the term of the 1961 Bonds will be more
than ample to meet all payments of principal and interest
on the 1961 Bonds and the bonds herein authorized.
1.04.
dated August 24,
Bonds, the City
Parity Lien. In
196 authorizing
reserved the right
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Paragraph 5 of the resolution
the issuance of the 1961
to issue additional bonds
payable from such net revenues and the Sinking and
Account of its Liquor Dispensary Municipal Building
a parity as to both principal and interest with the
Bonds, and secured by each and all of the covenants
provisions made in such resolution for the benefit
holders of the 1961 Bonds, provided that:
Interest
Fund on
1961
and other
of the
The net revenues derived from the ownership
and operation of said dispensary, after
provision for the payment of the necessary
expenses for current operation, maintenance
and ordinary repairs, shall have been, for
each of the two calendar years immediately
preceding the date of such additional
issue in an amount at least one and one-
half times the average annual interest and
principal requirements of the bonds issued
hereunder and such additional bonds, during
the then remaining life of the bonds issued
hereunder.
The amount of net revenues of the Municipal Liquor Dispensary
during the calendar years 1975 and 1976, were $86,711 and
$86,624, respectively. The average amount of principal
and interest to become due and payable from the Sinking and
Interest Account in the current or any subsequent calendar
year during the term of the 1961 Bonds, on the 1961 Bonds
M and the bonds now to be issued, is $26,123.75 ; and
150% of this amount is $39,185.63 , which is less than such
net revenues for each of the calendar years 1975 and 1976.
Therefore, the bonds now to be issued can be made payable from
the Sinking and Interest Account and the net revenues of the
Municipal Liquor Dispensary pledged thereto, on a parity as to
both principal and interest with the 1961 Bonds, and except
as hereinafter provided shall be secured in accordance with
said resolution dated August 24, 1961.
1.05. Sale of Bonds. Notice of sale of the bonds
now to be issued as been duly published and the Council has
publicly received, opened and considered all sealed bids
presented in conformity with the notice. The most favorable
of such bids is ascertained to be that of Cronin & Marcotte, Inc.
of Minneapolis ,Minnesota , and associates, to
purchase the bonds at a price of $197,000.00 plus accrued
interest, and upon the further terms and conditions set forth
in this resolution.
1.06. Sale Contract. The Mayor and City Adminis-
trator 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 1.05, and to deliver a
duplicate to the purchaser. The Treasurer is directed to
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retain the purchasers' check securing the contract of sale
until the bonds are delivered and the purchase price is paid,
and to return the checks securing other bids to the respective
bidders.
Section 2. Form of Bonds and Coupons.
2.01. Bond Form. The bonds issued hereunder shall
be printed in substantially the following form:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF LAKEVILLE
LIQUOR DISPENSARY REVENUE BOND OF 1977
No.
$5,000
KNOW ALL MEN BY THESE PRESENTS, that the City of
Lakeville, a municipal corporation of Dakota County, Minnesota,
hereby acknowledges itself to be specially indebted and for
value received promises to pay to bearer, solely from the net
revenues of the City's Municipal Liquor Dispensary pledged to
the Sinking and Interest Account of its Liquor Dispensary
Municipal Building Fund, the sum of
FIVE THOUSAND DOLLARS
on the 1st day of December, 19 , without option of prior
payment, and to pay interest thereon from said net revenues
at the rate of percent ( o) per annum from the date
hereof until the principal sum is paid, payable semiannually I
on each June 1 and December 1, commencing June 1, 1978,
in accordance with and upon presentation and surrender of the
interest coupons appurtenant hereto. Both principal and interest
are payable at , in . •
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.
This bond is one of an issue in the aggregate principal
amount of $200,000, all of like date and tenor except as to
serial number, interest rate, maturity date and redemption
privilege, all issued for the purpose of financing improvements
to the Municipal Liquor Dispensary of the City, pursuant to and
in full conformity with the Constitution and laws of the State
of Minnesota and an Authorizing Resolution of the City Council
adopted on June 6, 1977. The bonds of said issue are payable
solely from the net revenues of the Municipal Liquor Dispensary
as defined in said Resolution, which net revenues have been
pledged to said Sinking and Interest Account; and are payable
from such net revenues on a parity as to both principal and
interest with the outstanding Municipal Liquor Revenue Bonds
of 1961 of the City dated October 1, 1961. The full faith and
credit and taxing powers of the City are not pledged for the
payment of the principal or interest on said bonds.
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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, to exist and
to be performed precedent to and in the issuance of this bond
in order to make it a valid and binding special obligation
of the City according to its terms have been done, have happened,
do exist and have been performed in regular and due form,
time and manner as so required; that the City has established
and will maintain said Sinking and Interest Account until the
bonds herein authorized are paid or discharged and will
transfer each month to said Account a sum not less than one -
twelfth of the aggregate amount of principal and interest
to become due within the twelve months next following, on said
said bonds and all other obligations payable from said Account,
and any sum needed to maintain the required reserve in said
Account; that the City and its officers and employees will
establish and maintain operating policies covering the purchase
and sale of merchandise, and will do all other things necessary
and feasible, to assure that the gross receipts of its Municipal
Liquor Dispensary will at all times be adequate to pay all
costs of operation and maintenance thereof and to produce
net revenues adequate to make such transfers to said Sinking
and Interest Account; that in and by said Authorizing Resolution
the City has made and entered into covenants with the holders
of all such bonds which will be fully and promptly performed
by the City and all of its officers and employees; and that
the issuance of this bond does not cause the special or general
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 City Administrator, and its
corporate seal to be affixed hereto, all such signatures and
the seal being authentic printed, engraved or lithographed
facsimiles except for the manual signature of one of said
officers on the face of this bond, and has dated this bond
as of June 1, 1977.
Mayor
6�t
Attest: /%
City Administrator
(SEAL)
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- 2.02 Legal Opinion Certificate. 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 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.
City Administrator Mayor
2.03. Interest Coupons. 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 June (December), 19 , the City
of Lakeville, Dakota County, Minnesota, will pay to bearer solely
from the net revenues described in the bond to which this coupon
appertains, at , in ,
the amount shown hereon in lawful money of the United States
of America for interest then due on its Liquor Dispensary Revenue
Bond of 1977, dated June 1, 1977, No.
City Administ ator Mayor
Section 3. Bond Terms, Execution and Delivery.
3.01. Terms. The bonds issued hereunder shall be
designated LiquorD si pensary Revenue Bonds of 1977, dated
June 1, 1977, shall be issued in the denomination of $5,000
each, numbered serially from 1 to 40, inclusive, shall mature
serially on December 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 stated opposite such maturity years and amounts:
CFS
3.02 Interest; Paying Agent. Interest on the bonds
shall be payable semiannually on June 1 and December 1 in each
year, commencing June 1, 1978. The principal of and interest on
the bonds shall be payable at American National Bank & Trust Co.
in St. Paul, MN, 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 customary charges of the paying agent for
this service, and to account for such charges as an operating
cost of the Municipal Liquor Dispensary.
3.03. Redemption Before Maturity. The bonds shall
not be subject to redemption prior to maturity.
3.04. Execution and Delivery. The bonds and the
interest coupons and the certificate on the reverse side of
each bond shall be executed and authenticated in 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 shall be printed, engraved
or lithographed facsimiles except for the manual signature of
one of these officers on the face of each bond. The bonds
shall then be delivered by the Treasurer to the purchasers on
receipt of the cash purchase price stated in Section 1.05.
Section 4. Security Provisions; Bond Proceeds.
4.01. Existing Bond Resolution. Except as herein-
after expressly provided, the provisions of Paragraphs 2, 4, 5
and 6 of the resolution adopted by the City Council on August
24, 1961 authorizing the issuance and sale of the 1961 Bonds
are incorporated herein, and shall apply to the bonds herein
authorized. Said Paragraphs read as follows:
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Interest
Interest'
Year
Amount
Rate
Year
Amount
Rate
1978
$10,000
5.00%
1983
$25,000
5.10%
1979
20,000
5.00%
1984
25,000
5.25%
1980
20,000
5.00%
1985
20,000
5.40%
1981
20,000
5.00%
1986
20,000
5.40%
1982
20,000
5.10%
1987
20,000
5.50%
3.02 Interest; Paying Agent. Interest on the bonds
shall be payable semiannually on June 1 and December 1 in each
year, commencing June 1, 1978. The principal of and interest on
the bonds shall be payable at American National Bank & Trust Co.
in St. Paul, MN, 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 customary charges of the paying agent for
this service, and to account for such charges as an operating
cost of the Municipal Liquor Dispensary.
3.03. Redemption Before Maturity. The bonds shall
not be subject to redemption prior to maturity.
3.04. Execution and Delivery. The bonds and the
interest coupons and the certificate on the reverse side of
each bond shall be executed and authenticated in 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 shall be printed, engraved
or lithographed facsimiles except for the manual signature of
one of these officers on the face of each bond. The bonds
shall then be delivered by the Treasurer to the purchasers on
receipt of the cash purchase price stated in Section 1.05.
Section 4. Security Provisions; Bond Proceeds.
4.01. Existing Bond Resolution. Except as herein-
after expressly provided, the provisions of Paragraphs 2, 4, 5
and 6 of the resolution adopted by the City Council on August
24, 1961 authorizing the issuance and sale of the 1961 Bonds
are incorporated herein, and shall apply to the bonds herein
authorized. Said Paragraphs read as follows:
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2. In order to provide for the proper administra-
tion of all funds which will be derived from the
operation of the dispensary and in order to provide
security for the bonds to be issued hereunder, the
Village Treasurer shall maintain a separate Liquor
Dispensary Municipal Building Fund with the fol-
lowing subaccounts:
(A) A Building Construction Account to which
shall be credited all proceeds received from the
sale of the bonds issued hereunder and any other
amounts which may be appropriated for the purpose
of constructing a municipal building to house the
liquor dispensary. The moneys therein shall be used
solely for the purpose of paying for the costs of
construction of such building, and any surplus shall
be transferred to the sinking and interest account
hereinafter provided for.
(B) An Operation and Maintenance Account to
which shall be credited, as received, all receipts
from the operation of the Municipal Liquor Dispensary.
There shall be charged against such account all items
of disbursement which by sound accounting practices
constitute normal and reasonable costs of current
operation and maintenance of the dispensary. Such
costs shall include compensation for the manager and
other necessary employees, insurance, utility services,
costs of replacement of merchandise sold and similar
expense items. There shall be retained in said
account an amount which will be sufficient to pay all
anticipated expenditures for such current operation
and maintenance for one month in advance. Any
balance therein shall be deemed net revenue.
(C) A Sinking and Interest Account to which
shall be credited on the first secular day of each
calendar month, commencing on October 1, 1961, the
amount of one -twelfth of the total amount of prin-
cipal and interest due for said bonds issued pursuant
to this resolution for the period from October 1,
last, to October 1, next, from the net revenues in
the Operation and Maintenance Account to pay prin-
cipal and interest on the bonds until said bonds
and interest have been fully paid. In addition,
commencing with November 1, 1961, there shall be
credited to a surplus account from the net revenues
in the Operation and Maintenance Account the sum of
$300 on the 1st day of each month until a reserve
of $13,000 has be accumulated over and above the
amount required to pay principal and interest coming
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due within the next year. The monies constituting
�-' the $13,000 reserve shall be used only to the extent
necessary for the payment of principal and interest
on said revenue bonds whenever other monies in the
Sinking and Interest Account are insufficient thereof,
and whenver so used said balance shall be restored by
the transfer of additional monies from the net revenues
in the Operation and Maintenance Account. All said
monthly credits shall be cumulative and in the event
the earnings are insufficient to make the credits
required herein, the difference between the amount in
fact credited and the amount required hereunder shall
be made up out of the net revenue for the following
period or periods. Provided, however, that the monies
constituting the $13,000 reserve may be used to prepay
bonds, when such prepayment will retire all bonds of
this issue then outstanding.
4. The Village reserves the right and privilege
of issuing and selling refunding bonds if and to the
extent needed to refund maturing bonds of the issue
herein authorized, if monies in the Sinking and Interest
Account and Surplus Account are at any time insufficient
for the payment in full of the principal and interest
due thereon, which refunding bonds shall be payable
from said fund on a parity with this issue as to
interest, but shall mature subsequent to all of the
bonds payable from said fund which are to remain
outstanding upon the completion of such refunding.
5. The Village also reserves the right and
privilege of issuing bonds payable from surplus net
revenues of the liquor dispensary, without regard to
the limitations set forth in paragraph 4, provided
that such bonds are expressly made subject and junior
to the lien and charge on the net revenues in favor
of bonds payable from the Sinking and Interest Account
and Surplus Account. Provided, however, that the
Village may authorize the issuance of additional
Municipal Building Revenue Bonds or other obligations
payable from the revenues of the liquor dispensary
and on a parity as to lien upon the earnings of such
dispensary with the bonds authorized to be issued
hereunder if, but only if, the net revenues derived
from the ownership and operation of said dispensary,
after provision for the payment of the necessary
expenses for current operation, maintenance and
ordinary repairs, shall have been, for each of the
two calendar years immediately preceding the date of
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such additional issue in an amount at least one and
one-half times the average annual interest and
principal requirements of the bonds issued hereunder
and such additional bonds, during the then remaining
life of the bonds issued hereunder.
6. The Village of Lakeville hereby certifies
and represents to, and covenants and agrees with,
the purchaser and holders from time to time of each
bond issued hereunder as follows:
6.1. As long as any of said bonds are outstand-
ing, the Village will continue its ownership and
operation of said dispensary as a revenue producing
utility and convenience, in the manner authorized
and subject to the restrictions imposed by the
Statutes and Laws of the State of Minnesota including
sections 340.20 and 340.25, Minnesota Statutes relating
to elections on the licensing of intoxicating liquors,
and will not authorize the establishment or operation
of any other establishment within the Village for the
on -sale or off -sale of intoxicating liquors at retail,
and the Village will maintain the dispensary building,
furnishings, equipment and merchandise in good condi-
tion, and free from all liens, provided that purchase
money liens may be created on merchandise acquired for
resale, or such merchandise may be acquired subject
to liens existing at the time of acquisition.
6.2. If any properties constituting capital
assets of the dispensary shall be sold and disposed
of, it shall be only at their fair market value,
and the proceeds of such sale or disposition shall
be used either to procure other capital assets or
applied to pay principal of and interest on bonds
issued hereunder. No such sale or sales shall be
made at times or prices such as to imperil the prompt
and full payment of the bonds issued hereunder and
the interest thereon.
6.3. The Village will procure and keep in force
insurance on the dispensary building and the equip-
ment and furnishings thereof and all stocks of
merchandise, protecting against loss or damage by
fire, tornado, windstorm, flood, theft and all other
causes customarily insured against for like properties,
in amounts sufficient to cover total loss thereof, and
will procure and keep in force suitable fidelity
bonds covering all employees handling monies of the
dispensary. The bond of the liquor store manager,
and bonds of other employees shall be in such amounts
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as the council shall determine will be adequate to
protect the Village and the holders of bonds issued
hereunder. In the event of loss covered by said
insurance policies or bonds the proceeds shall be
used to repair or restore the damage or to retire
bonds payable from the revenues of said dispensary.
The Village will further keep in force a
liability insurance policy (covering its operation
of said dispensary) in the maximum amount possible.
Said policy shall specifically provide for the
payment by the insurance company on behalf of the
insured of all sums which the Village shall be
obligated to pay by reason of liability imposed
upon it by law for injuries or damage to persons,
other than employees, including liability imposed
by reason of M.S.A. 340.95.
6.4. The Village will continue its "Liquor
Dispensary Funds" and establish and continue therein
the accounts specified in paragraph 2 hereof and its
subdivisions, and will cause proper and adequate
books and records of account to be kept separate
from all other records of the Village, reflecting
all receipts and disbursements relating to said
dispensary and its operation. All of said books
- and records shall be open to inspection and copying
at all reasonable times by the holder of any of said
bonds or his agent or attorney, and the Village will,
without cost, furnish copies of any portions thereof
reasonably requested by any bondholder. The Village
will cause annual operating statements to be pre-
pared and an independent audit of books of the
dispensary to be made by a competent public accountant,
within ninety days after the close of such fiscal
year, and will furnish a copy thereof without cost
to the purchaser of said bonds, and, upon request,
to any bondholder.
6.5. The gross and net revenues of the dis-
pensary will be used and applied only as prescribed
in paragraph 2 hereof and its subdivisions. The
Village will at all times maintain operating policies
concerning the purchase and sale of merchandise
and do and perform all other acts and things necessary
to assure that the net revenues collected will be at
least sufficient to meet all payments of principal
and interest on the bonds and to establish and main-
tain the reserve therefor above defined.
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6.6. In the event that monies in said "Liquor
Dispensary Fund" shall at any time be insufficient
to pay principal and interest then due on bonds
issued hereunder, said monies shall first be applied
to pay the accrued interest on all such bonds then
outstanding and the balance shall be applied in
payment of maturing principal, in order of the serial
numbers, lowest numbers first, of the bonds which
are then due and payable.
6.7. The appropriation and pledge of revenues
hereinabove made to the Liquor Dispensary Municipal
Building Fund and its sub -accounts shall at all times
constitute an irrevocable pledge and appropriation
for the benefit and security of the holders of bonds
issued hereunder, and the Village will not issue
any additional Bonds or other evidences of indebted-
ness or incur or suffer to be incurred any obliga-
tion payable from said revenues, except as expressly
authorized in paragraphs 4 and 5.
6.8. Each and all of the foregoing provisions
of this resolution, which in any wise tend to secure
or assure prompt and full payment of the principal
of and interest on bonds issued hereunder will be
promptly and faithfully performed and carried out
by the Village and its officers and agents.
6.9. The holders of 20 percent or more in
aggregate principal amount of bonds under this
resolution and at any time outstanding may, either
at law or in equity, by suit, action or other pro-
ceedings protect and enforce the rights of all
holders of bonds issued hereunder and then out-
standing, or enforce and compel the performance of
any and all of the covenants and duties herein
specified to be performed by the Village or its
officers and agents.
6.10. The Village further covenants and agrees
that as long as any of the bonds issued hereunder
or any bonds issued to refund the same remain
outstanding, all real and personal properties
acquired by the Village from the proceeds of bonds
issued hereunder or from revenues derived from
such properties or from the operation thereof shall
be and are hereby irrevocably appropriated to be
used only for the liquor dispensary purposes of the
Village, including payment of the principal of and
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interest on said bonds, and shall not be devoted to
any other use or purpose; that upon any discontinuance
of the operation of the liquor dispensary as a
municipally owned revenue producing convenience or
utility, while any of said bonds remain outstanding,
all of the bonds then outstanding shall forthwith be
and become immediately due and payable, notwith-
standing any provisions therein or herein to the
contrary, and all such real and personal property,
including the stock of merchandise, shall be sold
and disposed of as specified in part 6.2 hereof, and
the net proceeds thereof and any working capital then
on hand are hereby irrevocably appropriated to be
used so far as needed for the prorata payment of the
outstanding bonds and interest thereon.
4.02. Payment of Bonds. The principal of an interest
on the bonds herein authorized shall be payable from the Sinking
and Interest Account established by Paragraph 2(c) of said
resolution dated August 24, 1961; and the payment of such
principal and interest shall be secured by the reserve held
in said Account; all on a parity as to both principal and
interest with the 1961 Bonds. On the first day of each month
commencing on July 1, 1977 there shall be credited to said
account from the net revenues on hand in the Operation and
Maintenance Account established by Paragraph 2(B) of said
resolution, a sum equal to not less than one -twelfth of the
total amount of principal and interest due on all bonds payable
from said Account in the next twelve months, and any sum
required to maintain the bond reserve as required by Section
4.03.
4.03. Increase of Reserve. There is hereby appro-
priated to said Sinking and Interest Account from moneys now
on hand in the General Fund, the sum of $ 18,000.00 , which
shall be added to the $13,000 reserve presently held in said
Account, and shall constitute a reserve securing the payment
of the principal of and interest on all bonds payable from
said Account. A reserve in the total amount of $ 30,847.50
shall thereafter be maintained in said Account by the transfer
in accordance with Section 4.02 of additional net revenues
from the Operation and Maintenance Account established by
said resolution dated August 24, 1961 whenever necessary.
4.04. Bond Proceeds. The proceeds of the bonds
herein authorized shall be credited to the Building Construc-
tion Account established by Paragraph 2(A) of said resolution
dated August 24, 1961.
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4.05. Liquor Licenses. Notwithstanding the pro-
visions of Paragraph .1 of said resolution dated August 24,
1961, in any year after the payment of the 1961 Bonds the
City may authorize and issue licenses for the establishment
and operation of privately owned liquor dispensaries, selling
on -sale, off -sale, or both, if the net revenues derived by the
City from the operation of its Municipal Liquor Dispensary
for the preceeding calendar year were not less than 125% of
the aggregate amount of principal and interest to become due
in the current year or any subsequent year on all bonds payable
from said Sinking and Interest Account.
4.06. Particular Covenants. The City covenants and
agrees with the holders from time to time of the bonds herein
authorized, until such bonds and the interest thereon are fully
paid or discharged as herein provided, that except as expressly
provided in Section 4.05, it will fully and promptly perform
and do all acts and thing's required in Paragraphs 2, 4, 5
and 6 of said resolution dated August 24, 1961.
Section 5. Defeasance.
5.01. Effect. When the revenue bonds of any series
issued under and secured by this resolution 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 such series of bonds shall
cease.
5.02. Deposit With Paying Agent. The City may
discharge the revenue bonds of any series and the coupons
appertenant thereto which are due on any date by depositing
with the paying agent or agents for such revenue bonds on
or before that date a sum sufficient for the payment thereof
in full; or if any revenue bond or coupon shall 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.
5.03. Deposit With Paying Agent; Redemption.
The City may also discharge any prepayable revenue bonds of
any series which are called for redemption on any date in
accordance with their terms, by depositing with the paying
agent or agents on or before that date an amount equal to
the principal, interest and redemption premium, if any, which
are then due thereon, provided that notice of such redemption
has been duly given as provided in the resolution authorizing
such revenue bonds.
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5.04. Deposit In Escrow. The City may also at
any time discharge any series of such revenue bonds in its
entirety, subject to the provisions of law now or hereafter
authorizing and regulating such action, by depositing irrevo-
cably in escrow, with a bank qualified by law as an escrow
agent for this purpose, cash or securities which are authorized
by law to be so deposited, bearing interest payable at such
times and at such rates and maturing or redeemable at the
option of the holder on such dates as shall be required to
provide funds sufficient to pay all principal, interest and
redemption premiums to become due on all revenue bonds of
the series on and before the maturity dates of the bonds or
their earlier redemption date.
Section 6. Registration of Revenue Bonds and
Authentication of Transcript.
6.01. Registration. The City Administrator is
authorized and directed to cause a copy of this resolution
to be filed with the County Auditor of Dakota County, and
to obtain from said County Auditor a certificate that the
issue of revenue bonds hereunder has been duly entered upon
his bond register.
6.02. Authentication. The City Administrator and
other officers of the City and County are also authorized and
directed to prepare and furnish to the purchaser of each
series of revenue bonds hereunder and to the attorneys approving
the legality thereof, certified copies of this resolution
and of all other resolutions, proceedings and records of the
City relating to the authorization and issuance of said revenue
bonds, and all other proceedings and records reasonably required
to show the validity or marketability of the revenue bonds;
and all statements contained in such documents shall be deemed
representations and recitals by the City of Lakeville.
Section 7. Official Statement. Springsted Incorpo-
rated has prepared and presented to this Council an Official
Statement containing financial and other information relating
to the City and the bonds herein authorized. Such Official
Statement and its distribution to prospective purchasers of
such bonds is hereby approved.
Section 8. Arbitrage; Certificate of Mayor and Clerk.
The Mayor and City 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 1.103-13 of the amended
Income Tax Regulations (26 CFR Part 1) published in the Federal
-17-
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, and the certification shall further state
that to the best of the knowledge and belief of the certifying
officers there are not other facts, estimates or circumstances
that would materially change such expectation.
Mayor
OAttest:a2 City AdminisJ
The motion for the adoption of the foregoing
resolution duly seconded by Councilperson Zaun
and upon vote being taken thereon, the following voted in
favor thereof: Mako, Clarkson, Emond and Zaun
and the following voted against the same: Curry
whereupon the resolution was declared duly passed and adopted,
and was signed by the Mayor, whose signature was attested
by the City Administrator.