HomeMy WebLinkAbout2019-005 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 19-05
RESOLUTION AUTHORIZING THE ISSUANCE OF 2019 CERTIFICATES OF
INDEBTEDNESS
WHEREAS, the 2019 Capital Equipment Replacement Schedule calls for the issuance of
certificates amounting to $388,535, 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 2020, 2021, and 2022.
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.
r1 2. The City shall issue a Certificate of Indebtedness in the amount of $388,535 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, 2019 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
2019 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 $388,535 plus interest at 1.0%
per annum in three installments in 2020, 2021, and 2022 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 January 14, 2019
and is issued pursuant to and in full conformity with Minnesota Statutes, Section 412.301, and is to
be effective as of February 1, 2019.
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 14t" day of January 2019.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Manthey and was duly seconded by Council Member S cues , and upon
vote being taken thereon, the following voted in favor thereof:
Manthey, Stoesz, Rafferty, Maher, Reinert
The following voted against same:
none
ATTEST:
Aus e Bartell, C'ty Clerc
rW
SCHEDULE OF PAYMENTS
2019 CERTIFICATES OF INDEBTEDNESS
FEBRUARY 1, 2019
PRINCIPAL INTEREST TOTAL
December 31, 2020 $ 126,000.00 $ 7,447.00 $133,447.00
December 31, 2021 131,000.00 2,626.00 133,626.00
December 31, 2022 131,535.00 1,316.00 132,851.00
Total $ 388,535.00 $ 11,389.00 $399,924.00
Interest Rate — 1.0%
Levy 2019 Payable 2020 $140,119.00 (includes required 5% overlevy)
Levy 2020 Payable 2021 140,307.00
Levy 2021 Payable 2022 139,493.00
Total $419 919.00
CITY COUNCIL
AGENDA ITEM 2A
STAFF ORIGINATOR: Sarah Cotton
MEETING DATE: January 14, 2019
TOPIC: Consider Resolution No. 19-05, Authorizing the Issuance of 2019
Certificates of Indebtedness
VOTE REQUIRED: 3/5
BACKGROUND
The 2019 Adopted Budget — Capital Equipment Replacement Schedule calls for the issuance of
Certificates of Indebtedness in the amount of $388,535 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.
r� A special levy will pay for this certificate in 2020, 2021 and 2022 and the levy proceeds will be
credited to the Area and Unit Fund.
The equipment to be funded with the 2019 Certificates of Indebtedness is listed on the attached
schedule.
RECOMMENDATION
Staff recommends the approval of Resolution No. 19-05.
ATTACHMENTS
2019 Capital Equipment Replacement Schedule
Resolution No. 19-05, Authorizing the Issuance of 2019 Certificates of Indebtedness
City of Lino Lakes
2019 Capital Equipment Replacement
Department Description
Police Marked Patrol Vehicle
Patrol K9 Vehicle
Total Police
Fleet Asphalt Roller
% Ton Pickup w/ Plow
Zero -Turn Mower
Bobcat Toolcat
1 Ton Pickup w/ Dumpbox & Plow
% Ton Pickup w/ Plow
Ford Escape — Bldg Inspections
Asphalt Hot Box
Total Fleet
Total
Equipment Levy
Capital Equipment Fund
Certificates to be Issued
Amount
$34,185
41,700
75,885
$55,000
40,000
15,000
35,000
61,000
55,000
26,000
25,650
312,650
$388, 535
0
0
$388, 535