HomeMy WebLinkAbout26-037 - Resolution - GO Bonds 2026A IssuanceCITY OF LINO LAKES, MINNESOTA
RESOLUTION NO.26-37
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION
BONDS, SERIES 2026A, IN THE PROPOSED AGGREGATE PRINCIPAL AMOUNT OF
$8,355,000
BE IT RESOLVED By the City Council of the City of Lino Lakes, Minnesota (the "City") as
follows:
Section 1. Authorization.
1.01. Abatement Bonds.
(a) The City has determined to finance the extension and improvement of Otter
Lake Road in the City including utility improvements (the "Project").
(b) Under Minnesota Statutes, Chapter 475, as amended, and
Sections 469.1812 through 469.1815, as amended (collectively, the "Abatement Act"), the
City is authorized to grant a property tax abatement on specified parcels in order to pay for
all or part of the cost of financing or providing public infrastructure, increasing or preserving
the tax base, providing employment opportunities, and helping provide access to services
for residents of the City.
(c) On the date hereof, following a duly noticed public hearing, the City Council
adopted a resolution (the "Abatement Resolution") approving a property tax abatement (the
"Abatements") for certain property in the City (the "Abatement Parcels") over a period of ten
(10) years, in an amount sufficient to paythe principal amount of and a portion of the interest
on bonds issued to finance a portion of the Project (the "Abatement Project") in a maximum
amount of $5,000,000.
(d) In the Abatement Resolution, the City Councilfound and determined thatthe
Abatement Project benefits the Abatement Parcels and that the maximum principal amount
of bonds to be secured by Abatements does not exceed the estimated sum of Abatements
from the Abatement Parcels for the term authorized under the Abatement Resolution.
(e) It is necessary and expedient to the sound financial management of the
affairs of the City forthe Cityto issue general obligations bonds in the approximate principal
amount of $4,870,000 (the "Abatement Bonds"), pursuant to the Abatement Act, to provide
financing for the Abatement Project.
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1.02. Utility Revenue Bonds.
(a) The City engineer has recommended the construction of various
improvements to the City's water and sewer system (the "Utility Improvements") as part of
the Project.
(b) It is necessary and expedient to the sound financial management of the
affairs of the City for the City to issue general obligation bonds in the approximate principal
amount of $3,485,000 (the "Utility Revenue Bonds"), pursuant to Minnesota Statutes,
Chapters 444 and 475, as amended (collectively, the "Utility Revenue Act"), to provide
financingforthe Utility Improvements.
1.03. Issuance of Bonds.
(a) The City Council finds it necessary and expedient to the sound financial
management of the affairs of the City to issue its General Obligation Bonds, Series 2026A (the
"Bonds"), in the proposed aggregate principal amount of $8,355,000, pursuant to the Abatement
Act and the Utility Revenue Act (collectively, the "Act"), to provide financing for the Abatement
Project and the Utility Improvements.
(b) The City is authorized by Section 475.60, subdivision 2(9) of the Act to
negotiate the sale of the Bonds, it being determined that the City has retained an
independent municipal advisor in connection with such sale. The actions of the City staff and
municipal advisor in negotiating the sale of the Bonds are ratified and confirmed in all
aspects.
Section2. Sale of Bonds. To providefundsto finance the Abatement Project and the Utility
Improvements, the City will issue and sell the Bonds in the proposed aggregate principal amount of
$8,355,000. The principal amount of the Bonds is subject to adjustment in accordance with the
official Terms of Proposal to be prepared in connection with the offering and the sale of the Bonds.
Section 3. Authority of Municipal Advisor. Ehlers and Associates, Inc. (the "Municipal
Advisor") is authorized and directed to negotiate the sale of the Bonds. The City Council will meet on
Monday, April 27, 2026, or another date selected by City staff, to consider proposals on the Bonds
and take any other appropriate action with respect to the Bonds.
Section 4. Authority of Bond Counsel. The law firm of Kutak Rock LLP, as bond counsel
to the City ("Bond Counsel"), is authorized to act as bond counsel and to assist in the preparation
and review of necessary documents, certificates and instruments relatingto 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.
Section 5. Covenants. In the resolution awardingthe sale of the Bonds, the City Council
will set forth the covenants and undertakings required bythe Act.
Section 6. Official Statement. In connection with the sale of the Bonds, the officers or
employees of the City are authorized and directed to cooperate with the Municipal Advisor and
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participate in the preparation of an official statement for the Bonds and to deliver it on behalf of the
City upon its completion.
Section 7. Reimbursement. On November 10, 2025, the City Council adopted
Resolution No. 25-156 (the "Reimbursement Resolution") declaring the official intent of the City to
reimburse expenditures with respect to the Project from proceeds of bonds to be issued by the City
for purposes of Treas. Reg. § 1.150-2, issued by the Internal Revenue Service. The City Council
hereby ratifies the Reimbursement Resolution.
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Adopted by the City Council of the City of Lino Lakes this 23`d day of March, 2026.
Rob a erty, Mayor
ATTEST:
Roberta Colotti, CMC, City Clerk
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