HomeMy WebLinkAbout2016-001 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 16-01
RESOLUTION AUTHORIZING THE ISSUANCE OF 2016 CERTIFICATES OF
INDEBTEDNESS
WHEREAS, the 2016 Capital Equipment Replacement Schedule calls for the issuance of
certificates amounting to $469,000, and
WHEREAS, the Area and Unit Fund (406) has sufficient reserves to issue a loan, and
WHEREAS, a special levy will pay for the certificates in 2017, 2018, and 2019.
NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes,
that:
1. It is hereby found and determined that it is necessary and expedient for the City to issue
a Certificate of Indebtedness for the purpose of fmancing the purchase of capital equipment, in
accordance with the provisions of Minnesota Statutes, Section 412.301; and that the sale of said
Certificates to the Capital Equipment Revolving Fund (402), on terms hereinafter set forth, is hereby
ordered.
2. The City shall issue a Certificate of Indebtedness in the amount of $469,000.00 authorized
by the City Council pursuant to the provisions of Minnesota Statutes, Section 412.301; for the
purpose of financing the purchase of capital equipment. Said Certificate shall be dated on February
1, 2016 and shall be payable to the Area and Unit Fund of the City of Lino Lakes.
3. Said Certificate shall be as follows:
CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
2016 CERTIFICATE OF INDEBTEDNESS
Know All Men By These Presents that the City of Lino Lakes, Anoka County, Minnesota,
hereby acknowledge the Capital Equipment Fund to be indebted and for values received promises
to pay the Area and Unit Fund of the City of Lino Lakes, the sum of $469,000 plus interest at 1.0%
per annum in three installments in 2017, 2018, and 2019 per attached schedule.
This Certificate is issued for the purpose of purchasing capital equipment for the City and is
authorized by a duly adopted resolution of the City Council of Lino Lakes, dated December 28, 2015
and is issued pursuant to and in full conformity with Minnesota Statutes, Section 412.301, and is to
be effective as of February 1, 2016.
It is hereby certified and recited, that all acts, conditions and things required by law to be
done, to exist, to happen and to be performed, precedent to and in the issuance of this Certificate
have been done, do exist, have happened and have been performed in regular and due form, time and
manner, that a direct, annual, irrepealable ad valorem tax will be duly levied by said City in an
amount sufficient to pay the principal and interest on this Certificate, together with all other existing
indebtedness of the said City, does not exceed any constitutional or statutory limitation on
indebtedness.
Adopted by the Council of the City of Lino Lakes this 11th day of January, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Kusterman and was duly seconded by Council Member Manthey and upon
vote being taken thereon, the following voted in favor thereof:
Kusterman, Manthey, Rafferty, Maher, Reinert
The following voted against same:
none
ATTEST:
(5Q" -‘t -w' -e Bartell, City Clerk
December 31, 2017
December 31, 2018
December 31, 2019
Total
Interest Rate — 1.0%
Levy 2016 Payable 2017
Levy 2017 Payable 2018
Levy 2018 Payable 2019
Total
SCHEDULE OF PAYMENTS
2016 CERTIFICATES OF INDEBTEDNESS
FEBRUARY 1, 2016
PRINCIPAL
$ 155,000.00
156,000.00
158,000.00
$ 469,000.00
INTEREST
$ 8,989.00
3,140.00
1,580.00
$ 13,709.00
TOTAL
$163,989.00
159,140.00
159,580.00
$482,709.00
$172,189.00 (includes required 5% overlevy)
167,097.00
167,559.00
$506,845.00
CITY COUNCLL
AGENDA ITEM 2A
STAFF ORIGINATOR: Sarah Cotton
MEETING DA 1'E: January 11, 2016
TOPIC: Consider Resolution No. 16-01, Authorizing the Issuance of 2016
Certificates of Indebtedness
VOI'E. REQUIRED: 3/5
BACKGROUND
Staff was directed to remove the 2016 Capital Equipment Replacement Schedule from the 2016
Budget which was adopted at the December 14, 2015 City Council meeting, until more information
on the equipment requested to be replaced could be provided. The Public Safety and Public Works
Capital Equipment Replacement Plans were further discussed at the January 4, 2016 City Council
Work Session.
The 2016 Capital Equipment Replacement Schedule calls for the issuance of Certificates of
Indebtedness in the amount of $469,000 to be used for the purchase of capital equipment as part of
our equipment replacement program. The interest rate on the certificates will be 1.00%.
The Area and Unit Fund (406) has sufficient reserves to issue a loan to finance these purchases.
A special levy will pay for this certificate in 2017, 2018 and 2019 and the levy proceeds will be
credited to the Area and Unit Fund.
The equipment to be funded with the 2016 Certificates of Indebtedness is listed on the attached
schedule.
RECOMMENDATION
Staff recommends the approval of Resolution No. 16-01.
ATTACHMENTS
2016 Capital Equipment Replacement Schedule
Resolution No. 16-01, Authorizing the Issuance of 2016 Certificates of Indebtedness
Department
Police
Fleet
City of Lino Lakes
2016 Capital Equipment Replacement
Description
(4) Squad Cars & Equipment
(2) Emergency Sirens
Total Police
Single Axle Dump Truck w/ Plow
F-250 Pickup
1/2 Ton Pickup
Total Fleet
Total
Equipment Levy
Capital Equipment Fund
Certificates to be Issued
Amount
$144,000
42,000
186,000
220,000
35,000
28,000
283,000
$469,000
0
0
$469,000