HomeMy WebLinkAbout25-071 - Resolution - GO Bonds Series 2025A - Lino LakesEXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
Pursuant to due call and notice thereof, a regular meeting of the City Council
of the City of Lino Lakes, Minnesota, was duly held in the City Hall in said City
on May 27, 2025, commencing at 6:30 o'clock p.m.
The following members were present: M of \ia � �� "j t14"v,
C'av,colw) to 0?-52.
and the following were absent:�,`,Mcyh1p�r-�2NtAAA aVI- A
Member I.—.,i8evN introduced the following resolution and
moved its adoption:
CITY OF LINO LAKES, MINNESOTA
RESOLUTION NO. 25-71
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL
OBLIGATION BONDS, SERIES 2025A, IN THE MAXIMUM AGGREGATE
PRINCIPAL AMOUNT OF $8,665,000; AND TAKING OTHER ACTIONS WITH
RESPECT THERETO
BE IT RESOLVED By the City Council ("Council") of the City of Lino Lakes, Minnesota
(the "City"), as follows:
1. Background.
(a) Street Reconstruction Bonds.
(i) The City is authorized by Minnesota Statutes, Chapter 475, as amended (the "Act"),
including Minnesota Statutes, Section 475.58, subd. 3b, as amended ("Section 475.58, subd.
3b"), to issue general obligation street reconstruction bonds to finance the cost of street
reconstruction and bituminous overlay projects.
(ii) Pursuant to a resolution adopted by the Council on June 26, 2023, following a duly
noticed public hearing, the Council approved by a vote of two-thirds majority of its members
present: (i) a Street Reconstruction Plan for the years 2024 — 2028 (the "Plan") that
described the streets to be reconstructed and estimated costs over a period of five (5) years;
and (ii) the issuance of general obligation bonds, all pursuant to the Act, including Section
475.58, subd. 3b.
(iii) The Council hereby finds that no petition for a referendum on the issuance of the
bonds to pay the costs of the proposed street reconstruction projects was received by the
City within thirty (30) days of the hearing, in accordance with Section 475.58, subd. 3b.
(iv) The Council hereby finds and determines that it is necessary and expedient to the
sound financial management of the affairs of the City to authorize the issuance of general
obligation bonds in the aggregate principal amount not to exceed $4,495,000 (the "Street
Portion"), pursuant to the Act, including Section 475.58, subd. 3b, to finance the street
reconstruction projects described in the Plan (collectively, the "Street Project"), and related
financing costs.
(b) Utility Revenue Bonds.
(i) The City is authorized by the Act and Minnesota Statutes, Chapter 444, as amended
("Chapter 444"), to issue general obligation revenue bonds to finance the costs of
improvements to the City's water utility systems.
(ii) The City engineer has recommended the construction of various improvements to
the City's sewer, water, and storm sewer systems (the "Utility Improvements").
(iii) The Council hereby finds and determines that it is necessary and expedient to the
sound financial management of the affairs of the City to issue general obligation bonds in
the proposed principal amount of $4,170,000 (the "Utility Portion"), pursuant to the Act and
Chapter 444, to provide financing for the Utility Improvements (collectively, the "Utility
Project"), and related financing costs. The Street Project and the Utility Project are
hereinafter collectively referred to as the "Project."
(c) The Council hereby determines that the Street Portion and the Utility Portion shall
be issued together in a single series in the aggregate principal amount not to exceed of
$8,665,000 (the "Bonds"). The Council hereby designates the Bonds as the "General
Obligation Bonds, Series 2025A."
2. Sale of Bonds. The City has retained Ehlers and Associates, Inc. (the "Municipal
Advisor"), to serve as the City's independent municipal advisor with respect to the offer and
sale of the Bonds and, therefore, is authorized by Section 475.60, subdivision 2(9), of the Act
to sell the Bonds other than pursuant to a competitive sale.
3. Authority of Municipal Advisor. The Municipal Advisor is authorized and directed to
assist the City in the preparation and dissemination of a Preliminary Official Statement to be
distributed to potential purchasers of the Bonds and to open, read, and tabulate the
proposals for the purchase of the Bonds for presentation to the Council. The Municipal
Advisor is further authorized and directed to assist the City in the award and sale of the
Bonds on behalf of the City after receipt of written proposals and to assist the City in the
preparation and dissemination of a final Official Statement with respect to the Bonds.
4. Acceptance of Proposal. The Council shall meet at the time specified in the
Preliminary Official Statement or at such other time designated by the Council to receive and
consider proposals forthe purchase of the Bonds and take any other appropriate action with
respect to the Bonds.
5. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, is
authorized to act as bond counsel for the City ("Bond Counsel"), and to assist in the
preparation and review of necessary documents, certificates, and instruments related to the
Bonds. The officers, employees, and agents of the City are hereby authorized to assist Bond
Counsel in the preparation of such documents, certificates, and instruments.
6. Reimbursement from Bond Proceeds. The City may incur certain expenditures that
may be financed temporarily from sources other than the Bonds and reimbursed from the
proceeds of the Bonds. Treasury Regulation § 1.150-2 (the "Reimbursement Regulations")
provides that proceeds of tax-exempt bonds allocated to reimburse expenditures originally
paid from a source other than the tax-exempt bonds will not be deemed expended unless
certain requirements are met. In order to preserve its ability to reimburse certain costs from
proceeds of the Bonds in accordance with the Reimbursement Regulations, the City hereby
makes its declaration of official intent (the "Declaration") described below to reimburse
certain costs
(a) Declaration of Intent. The City proposes to issue the Bonds to finance the costs of
the Project. The City may reimburse original expenditures made for certain costs of the
Project from the proceeds of the Bonds in an estimated maximum principal amount of
$8,665,000. All reimbursed expenditures will be capital expenditures, costs of issuance of
the Bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of
the Reimbursement Regulations.
(b) Declaration Made Not LaterThan 60 Days. This Declaration has been made not later
than sixty (60) days after payment of any original expenditure to be subject to a
reimbursement allocation with respect to the proceeds of the Bonds, except for the
following expenditures: (a) costs of issuance of the Bonds; (b) costs in an amount not in
excess of $100,000 or five percent (5%) of the proceeds of the Bonds; or (c) "preliminary
expenditures" up to an amount not in excess of twenty (20) percent of the aggregate issue
price of the Bonds that finance or are reasonably expected by the City to finance the Project
for which the preliminary expenditures were incurred. The term "preliminary expenditures"
includes architectural, engineering, surveying, bond issuance, and similar costs that are
incurred prior to commencement of acquisition, construction, or rehabilitation of the
Project, other than land acquisition, site preparation, and similar costs incident to
commencement of construction.
(c) Reasonable Expectations; Official Intent. This Declaration is an expression of the
reasonable expectations of the City based on the facts and circumstances known to the City
as of the date hereof. The anticipated original expenditures for the Project and the principal
amount of the Bonds described in Section 6(a), above, are consistent with the City's
budgetary and financial circumstances. No sources other than proceeds of the Bonds to be
issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term
basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such
original expenditures. This Resolution is intended to constitute a declaration of official intent
for purposes of the Reimbursement Regulations.
The motion for the adoption of the foregoing resolution was duly seconded by Member
S, ay-e! � , and upon vote being taken thereon, the following voted in favor of
the motion.
and the following voted against:
whereupon the resolution was declared duly passed and adopted.
. y 4 2,
Ro fferty, Mayor
ATTEST:
';gL444s
Roberta Colotti, CIVIC, City Clerk
STATE OF MINNESOTA)
COUNTY OF ANOKA ) ss.
CITY OF LINO LAKES 1
I, the undersigned, being the duly qualified City Clerk of City of Lino Lakes, Anoka County,
Minnesota (the "City"), do hereby certify that I have carefully compared the attached and
foregoing extract of minutes of a regular meeting of the City Council of the City held on
May 27, 2025, with the original minutes on file in my office, and the extract is a full, true,
and correct copy of the minutes insofar as they relate to they relate to authorizing the
issuance of the City's General Obligation Bonds, Series 2025A, in the maximum aggregate
principal amount of $8,665,000.
WITNESS My hand officially as such City Clerk this 21L day of May, 2025.
Clerk of the City
City of Lino Lakes, Anoka County, Minnesota