HomeMy WebLinkAbout88-126 CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
RESOLUTION
Date September 19, 1988 Resolution No. 88-126
Motion By Nelson Seconded By Sindt
RESOLUTION DEFEASING CERTAIN GENERAL OBLIGATION BONDS
AND TRANSFERRING THE NET SURPLUS TO THE CITY HALL
CAPITAL IMPROVEMENT FUND AND PUBLIC WORRS RESERVE FUND
WHEREAS, the City's fiscal consultant, Springsted, Inc., has
prepared a defeasance analysis dated July. 28, 1988 ("Defeasance
Analysis"), and
WHEREAS, the Defeasance Analysis documents that certain
general obligation bond funds have a net surplus present value.
• NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Lakeville:
1. The following general obligation bonds (the "Defeased
Bondsy) shall be defeased in accordance with the Defeasance Analysis:
$ 700,000 Bonds of 1973
630,000 Bonds of 1976
$1,250,000 Bonds of 1977
$ 215,000 Bonds of 1977, Series B
$2,205,000 Bonds of 1978
$ 700,000 Bonds of 1978
The following general obligation bonds (the "Retired Bonds") have been
fully paid and retired, and the surplus funds remaining on deposit in
the bond funds shall be applied as hereinafter set forth:
$ 450,000 Bonds of 1968
$ 505,000 Bonds of 1972
$ 725,000 Bonds of 1972, Series B
405,000 Bonds of 1974
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2. In order to defease the Defeased Bonds, sufficient funds
from the respective bonds shall be deposited in escrow with an
independent escrow agent and invested in U.S. government securities so
that the principal and interest receipts thereon, together with any
cash balance retained in the escrow account will be sufficient to pay
all principal and interest on the Defeased Bonds as such becomes due
to their stated maturities or earlier designated redemption dates.
3. After said defeasance, the net surplus from the bond
funds for the Defeased Bonds and Retired Bonds shall be transferred to
the City Hall Capital Improvement Fund.
4. Net future surplus from said bond funds shall be
transferred to the City Public Works Reserve Fund.
5. The City Administrator/Clerk and City Finance Director
• are authorized and directed to take the appropriate action to
implement this Resolution.
ADOPTED by the City Council of the City of Lakeville this
19th day of September, 1988.
CITY OF KEVILLE
BY:
Du ne R. Zaun, ayor
A ES fj
g.,
Patrick E. McGa e
City Administrator/Clerk