HomeMy WebLinkAbout2011-018 Council ResolutionCouncil Member Rafferty
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introduced the following resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 11-18
RESOLUTION AUTHORIZING THE ISSUANCE OF
2011 CERTIFICATES OF INDEBTEDNESS
WHEREAS, the 2011 budget calls for the issuance of certificates amounting to $120,000.00 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 2012, 2013 and 2014.
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 $120,000.00 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 February 1, 2011 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
2011 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 $120,000 plus interest at 1.0% per annum in
three installments in 2012, 2013 and 2014 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 February 14, 2011 and is
issued pursuant to and in full conformity with Minnesota Statutes, Section 412.301, and is to be effective as
of February 1, 2011.
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.
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Julianne artell, City Cle
Adopted by the City Council of Lino Lakes, Minnesota, this 14th day of February, 2011.
The motion for the adoption of the foregoing resolution was duly seconded by Council MemberRoeser
and upon vote being taken thereon, the following voted in favor thereof:
Rafferty, Roeser, Gallup, O'Donnell, Reinert
The following voted against same:
none
Whereupon said resolution was declared duly passed and adopted.
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SCHEDULE OF PAYMENTS
2011 CERTIFICATES OF INDEBTEDNESS
FEBRUARY 1, 2011
PRINCIPAL INTEREST TOTAL
December 31, 2012 $ 39,000.00 $ 2,300.00 $ 41,300.00
December 31, 2013 40,000.00 810.00 40,810.00
December 31, 2014 41,000.00 410.00 41,410.00
Total $ 120,000.00 $ 3,520.00 $ 123,520.00
Interest Rate —1.0%
Levy 2010 Payable 2011
Levy 2011 Payable 2012
Levy 2012 Payable 2013
$ 43,365.00 (includes required 5% overlevy)
42,851.00
43,481.00
Total $129,696.00
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AGENDA ITEM IE
STAFF ORIGINATOR Al Rolek
MEETING DATE February 14, 2011
TOPIC Consider Resolution 11 -18 Authorizing the Issuance of the 2011
Certificates of Indebtedness
Simple Majority (3/5)
VOTE REQUIRED
BACKGROUND
The 2011 budget calls for the issuance of Certificates of Indebtedness in the amount of $120,000
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 has sufficient reserves to issue a loan to finance these purchases.
A special levy will pay for this certificate in 2012, 2013 and 2014 and the levy proceeds will be
credited to the Area and Unit Fund.
The equipment to be funded with the 2011 Certificate of Indebtedness is listed on the attached
schedule.
OPTIONS
1. Approve Resolution 11 -18 issuing the 2011 Certificates of Indebtedness.
2. Return to staff for further review.
RECOMMEN
Option 1.
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City of Lino Lakes
2011 Capital Equipment Replacement
Department Description Amount
Police (3) Squad Cars & Equipment $76,500
Fire
Fleet
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Capital Equipment 87,000
Tractor Backhoe
F -350 Sign Truck with Attachments
Vac Trailer
1 Ton Pickup Dump Box and Plow
Total Fleet
Total
Equipment Levy
100,000
60,000
49,000
48,000
257,000
$420, 500
200,000
Capital Improvement Fund 100,500
Certificates to be Issued $120,000