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HomeMy WebLinkAbout2006-006 Council Resolution• • Council member Q -4-0\et introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 06 -06 RESOLUTION AUTHORIZING THE ISSUANCE OF 2006 CERTIFICATES OF INDEBTEDNESS WHEREAS, the 2006 budget calls for the issuance of certificates amounting to $307,000.00 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 2007, 2008 and 2009. 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 $307,000.00 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, 2006 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 2006 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 $307,000 plus interest at 4% per annum in three installments in 2007, 2008 and 2009 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 January 23rd, 2006 and is issued pursuant to and in full conformity with Minnesota Statutes, Section 412.301, and is to be effective as of February 1, 2006. 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 • Juri - - : - dell, City Clerr Adopted by-the City Council of Lino Lakes, Minnesota, this 23rd day of January, 2006. The motion for the adoption of the foregoing resolution was duly seconded by 01Poin vie l 1 and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Whereupon said resolution was declared duly passed and adopted. • • Page 3 • SCHEDULE OF PAYMENTS 2006 CERTIFICATES OF INDEBTEDNESS FEBRUARY 1, 2006 PRINCIPAL INTEREST TOTAL December 31, 2007 $ 90,000.00 $ 26,479.00 $ 116,479.00 December31, 2008 107,000.00 9,765.00 116,765.00 December 31, 2009 110,000.00 4,950.00 114,950.00 Total $ 307, 000.00 $ 41,194.00 $ 348,194.00 Interest Rate - 4% Levy 2006 Payable 2007 Levy 2007 Payable 2008 Levy 2008 Payable 2009 $122,303.00 (includes 5% overlevy) 122,603.00 120,698.00 Total $365,604.00 • • • AGENDA ITEM 1C STAFF ORIGINATOR Al Rolek MEETING DATE January 23, 2006 TOPIC Consider Resolution 06 -06 Authorizing the Issuance of the 2006 Certificates of Indebtedness Simple Majority (3/5) VOTE REQUIRED BACKGROUND The 2006 budget called for the issuance of Certificates of Indebtedness in the amount of $307,000 to be used for the purchase of capital equipment as part of our equipment replacement program. 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 2007, 2008 and 2009 and the levy proceeds will be credited to the Area and Unit Fund. The equipment to be funded with the 2006 Certificate of Indebtedness is listed on the attached schedule. OPTIONS 1. Approve Resolution 06 -06 issuing the 2006 Certificates of Indebtedness 2. Return to staff for further review RECOMMENDATION Option 1.