HomeMy WebLinkAbout2017-017 Council ResolutionCITY OF LINO LAKES
�-- RESOLUTION NO. 17-17
RESOLUTION AUTHORIZING THE ISSUANCE OF 2017 CERTIFICATES OF
INDEBTEDNESS
WHEREAS, the 2017 Capital Equipment Replacement Schedule calls for the issuance of
certificates amounting to $311,000, 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 2018, 2019, and 2020.
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 financing 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 $311,000.00 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 March 1,
2017 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
2017 CERTIFICATE OF 1NDEB I EDNESS
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 $311,000 plus interest at 1.0%
per annum in three installments in 2018, 2019, and 2020 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 February 27, 2017
and is issued pursuant to and in full conformity with Minnesota Statutes, Section 412.301, and is to
be effective as of March 1, 2017.
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, anneal, 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 27th day of February, 2017.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Kusterman and was duly seconded by Council Member Rafferty and upon
vote being taken thereon, the following voted in favor thereof:
Kusterman, Rafferty, Manthey, Reinert
The following voted against same:
none (Absent - Maher)
ATTEST:
December 31, 2018
December 31, 2019
December 31, 2020
Total
Interest Rate — 1.0%
Levy 2017 Payable 2018
Levy 2018 Payable 2019
Levy 2019 Payable 2020
Total
SCHEDULE OF PAYMENTS
2017 CERTIFICATES OF INDEBTEDNESS
MARCH 1, 2017
PRINCIPAL
$ 102,000.00
104,000.00
105,000.00
$ 311,000.00
INTEREST
$ 5,702.00
2,090.00
1,050.00
$ 8,842.00
TOTAL
$107,702.00
106,090.00
106,050.00
$319,842.00
$113,087.00 (includes required 5% overlevy)
111,395.00
111,353.00
$335,835.00
CITY COUNCIL
AGENDA ITEM 2A
STAFF ORIGINATOR: Sarah Cotton
MEETING DATE: February 27, 2017
TOPIC: Consider Resolution No. 17-17, Authorizing the Issuance of 2017
Certificates of Indebtedness
VOTE REQUIRED: 3/5
BACKGROUND
The 2017 Adopted Budget - Capital Equipment Replacement Schedule calls for the issuance of
Certificates of Indebtedness in the amount of $311,000 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 2018, 2019 and 2020 and the levy proceeds will be
credited to the Area and Unit Fund.
The equipment to be funded with the 2017 Certificates of Indebtedness is listed on the attached
schedule.
RECOMMENDATION
Staff recommends the approval of Resolution No. 17-17.
ATTACHMENTS
2017 Capital Equipment Replacement Schedule
Resolution No. 17-17, Authorizing the Issuance of 2017 Certificates of Indebtedness
City of Lino Lakes
�.- 2017 Capital Equipment Replacement
Department Description Amount
Police (2) Investigations Vehicles $42,000
Total Police 42,000
Fleet Skid Steer $70,000
ATV 20,000
1 Ton Pickup 52,000
1 Ton Pickup 53,000
'/z Ton Pickup 30,000
Mower 19,000
Tack Trailer 25,000
Total Fleet 269,000
Total $311,000
Equipment Levy 0
Capital Equipment Fund 0
Certificates to be Issued $311,000