HomeMy WebLinkAbout2019-126 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 19-126
RESOLUTION AUTHORIZING THE ISSUANCE OF 2020 CERTIFICATES OF
INDEBTEDNESS
WHEREAS, the 2020 Capital Equipment Replacement Schedule calls for the issuance of
certificates amounting to $294,235, 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 2021, 2022, and 2023.
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 $294,235 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 January
1, 2020 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
2020 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 $294,235 plus interest at 1.0%
per annum in three installments in 2021, 2022, and 2023 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 September 23,
2019 and is issued pursuant to and in full conformity with Minnesota Statutes, Section 412.301, and
is to be effective as of January 1, 2020.
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 23`d day of September, 2019.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Maher and was duly seconded by Council Member stoes z and upon
vote being taken thereon, the following voted in favor thereof:
Maher, Stoesz, Manthey, Reinert
The following voted against same:
none (Absent - Rafferty)
ATTEST:
nne Bartell, C4ty Cler
December 31, 2021
December 31, 2022
December 31, 2023
Total
Interest Rate — 1.0%
Levy 2020 Payable 2021
Levy 2021 Payable 2022
Levy 2022 Payable 2023
Total
SCHEDULE OF PAYMENTS
2020 CERTIFICATES OF INDEBTEDNESS
JANUARY 1, 2020
PRINCIPAL
$ 95,000.00
99,000.00
100,235.00
$294,235.00
INTEREST
$ 5,885.00
1,992.00
1,002.00
$8,879.00
TOTAL
$100,885.00
100,992.00
101,237.00
$303,114.00
$105,929.00 (includes required 5% overlevy)
106,042.00
106,299.00
$318,270.00
CITY COUNCIL
AGENDA ITEM 2D
STAFF ORIGINATOR: Sarah Cotton
MEETING DATE: September 23, 2019
TOPIC: Consider Resolution No. 19-126, Authorizing the Issuance of 2020
Certificates of Indebtedness
VOTE REQUIRED: 3/5
BACKGROUND
The 2020 Preliminary Budget — Capital Equipment Replacement Schedule calls for the issuance of
Certificates of Indebtedness in the amount of $294,235 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 2021, 2022 and 2023 and the levy proceeds will be
credited to the Area and Unit Fund.
The equipment to be funded with the 2020 Certificates of Indebtedness is listed on the attached
schedule.
RECOMMENDATION
Staff recommends the approval of Resolution No. 19-126.
ATTACHMENTS
2020 Capital Equipment Replacement Schedule
Resolution No. 19-126, Authorizing the Issuance of 2020 Certificates of Indebtedness
Department
Police
Fleet
City of Lino Lakes
2020 Capital Equipment Replacement
Description
Marked Patrol Vehicle
Marked Patrol Vehicle
Total Police
GMC 1500
Ford F-550 Roll -Off
Ford F-350 w/ Dumpbox
GMC 2500
Total Fleet
Total
Equipment Levy
Capital Equipment Fund
Certificates to be Issued
Amount
$40,725
38,325
79,050
$38,340
101,175
67,095
58,575
265,185
$344,235
0
50,000
$294,235