HomeMy WebLinkAbout2009-026 Council Resolution•
•
•
Council Member Stoltz introduced the following resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 09-26
RESOLUTION AUTHORIZING THE ISSUANCE OF
2009 CERTIFICATES OF INDEBTEDNESS
WHEREAS, the 2009 budget calls for the issuance of certificates amounting to $336,000.00 and
WHEREAS, the Area and Unit Fund (406) has sufficient reserves to issue a loan, and
WHEREAS, a special levy will pay for these certificates in 2010, 2011 and 2012.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES:
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 $336,000.00 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 May 1, 2009 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
2009 CERTIFICATE OF INDEBTEDNESS
Know All Men By These Presents that the City of Lino Lakes, Anoka County, Minnesota, hereby
acknowledge the Capital Improvement Project 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 $336,000 plus interest at 3.0% per annum in
three installments in 2010, 2011 and 2012 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 April 27th, 2009 and is issued
pursuant to and in full conformity with Minnesota Statutes, Section 412.301, and is to be effective as of May
1, 2009.
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.
•
•
Page 2
Adopted by the City Council of Lino Lakes, Minnesota, this 27th day of April, 2009.
Reinert
The motion for the adoption of the foregoing resolution was duly seconded by Council Member
and upon vote being taken thereon, the following voted in favor thereof:
Stoltz, Reinert, O'Donnell, Gallup, Bergeson
The following voted against same:
Whereupon said resolution was declared duly passed and adopted.
Page 3
•
December 31, 2010
December 31, 2011
December 31, 2012
Total
Interest Rate — 3.0%
Levy 2009 Payable 2010
Levy 2010 Payable 2011
Levy 2011 Payable 2012
SCHEDULE OF PAYMENTS
2009 CERTIFICATES OF INDEBTEDNESS
MAY 1, 2009
PRINCIPAL
$ 104,000.00
114,000.00
118,000.00
$ 336,000.00
INTEREST TOTAL
$ 16,800.00 $ 120,800.00
6,960.00 120,960.00
3,540.00 121,540.00
$ 27,300.00 $ 363,300.00
$126,840.00 (includes required 5% overlevy)
127,008.00
127,617.00
Total $381,465.00
•
•
•
•
•
AGENDA ITEM 1D
STAFF ORIGINATOR Al Rolek
MEETING DATE April 27, 2009
TOPIC Consider Resolution 09 -26 Authorizing the Issuance of the
2009 Certificates of Indebtedness
Simple Majority (3/5)
VOTE REQUIRED
UND
The 2009 budget called for the issuance of Certificates of Indebtedness in the amount of
$250,000 to be used for the purchase of capital equipment as part of our equipment
replacement program. The budget was amended on March 23, 2009 to reduce the
amount of current levy used for equipment replacement by approximately $86,000 and
thereby increase the amount of 2009 certificates to $336,000. The interest rate for the
certificates will be 3.00 %, which is consistent with the market rate for a 3 -year certificate of
deposit.
The Area and Unit Fund has sufficient reserves to issue a loan to finance these
purchases.
A special levy will pay for this certificate in 2010, 2011 and 2012 and the levy proceeds will
be credited to the Area and Unit Fund.
The equipment to be funded with the 2009 Certificate of Indebtedness is listed on the
attached schedule.
1. Approve Resolution 09 -26 issuing the 2009 Certificates of Indebtedness.
2. Return to staff for further review.
Option 1.
City of Lino Lakes
2009 Capital Equipment Replacement
Department Description Amount
Police (3) Squad Cars & Equipment $75,000
Fire
Fleet
•
Capital Equipment 69,000
Single Axle Dump Truck w/ Plow 160,000
1 Ton Pickup w/ Plow 46,000
1/2 Ton Pickup with Plow 28,000
Vermeer Chipper 40,000
544 Loader (2 Year Replacement) 13,000
Aerovator 13,000
Small Utility Trailer 6,000
Total Fleet 306,000
Total $450,000
Equipment Levy 114,000
Capital Improvement Fund 0
Certificates to be Issued $336,000