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HomeMy WebLinkAbout1986-047 Council Resolution'�- COUNCIL MEETING October 27, 1986 RESOLUTION NO. 47 - 86 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $475,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1986A BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota (City) as follows: 1. It is hereby determined: (a) That the following assessable public improvements (the "Improvements ") have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429: •(b) That it is necessary and expedient to the sound financial management of the affairs of the City to issue $ General Obligation Improvement Bonds, Series 1986A (Bonds) to provide financing for the Improvements. 1.1. It is further determined: (a) The City is authorized by Minnesota Statutes, Section 475.67, Subdivision 3 (Act) to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service cost to the City. (b) The City has issued and sold its $750,000 General Obligation Improvement Bonds of 1982, dated October 1, 1982, (1982 Bonds). The 1982 Bonds maturing in the years 1989 to and including 1991 are subject to redemption on February 1, 1987, and bear interest at rates in excess of current rates for municipal bonds. (c) Subdivision 4 of the Act permits the sale of refunding obligations during the six month period prior to the date on which the obligation to be refunded shall have been called for redemption. (d) The Council finds that it is necessary to use the authority granted by the Act to issue and sell refunding obligations to refund the 1982 Bonds to reduce debt service costs. (e) That it is necessary and expedient to the sound financial management of the affairs of the City to issue $ General Obligation Improvement Bonds, Series 1986A (Bonds) to refund the 1982 Bonds. • COUNCIL MEETING October 27, 1986 2. In order to provide financing for the Improvements and for refunding the 1982 Bonds, the City shall therefore issue and sell Bonds in the amount of $467,875. In order to provide in part the additional inter- est required to market the Bonds at this time, additional Bonds shall be issued in the amount of $7,125. Any excess of the purchase price of the Bonds over the sum of $467,875 shall be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on such additional Bonds. The Bonds shall be issued and sold in accordance with the terms of the following. Official Terms of Offering: OFFICIAL TERMS OF OFFERING $475,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1986A 4 eealed bids for the Bonds will be opened by the City Administrator or his designee on Monda• vember 24, 1986, at 12:00 Noon, Central Time, at the office of SPRINGSTED Incorporated, 85 Ec venth Place, Suite 100, Saint Paul, Minnesota 55101 -2143. Consideration for award of the Bon . will be by the City Council at 7:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1986, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1987. Interest will be computed upon the basis of a 360 -day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in the denomination of. $5,000 each, or in integral multiples thereof as requested by the -Purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the Registrar and interest on each Bond will be payable by check or draft of the Registrar mailed to the registered holder thereof at his address al it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature February I in the amounts and years as follows: $10,000 1988 $1 25,000 1989 -1991 $1 5,000 1992 -1997 MANDATORY REDEMPTION In the event that pursuant to federal laws and regulations the City is required to use unexpended Bor proceeds for early redemption of Bonds in order to continue exemption of the Bonds from feder ation, the City shall use such unexpended Bond proceeds to redeem Bonds on any date after notit gl/given pursuant to law. Those Bonds remaining unpaid which have the latest maturity date will t prepaid first. If only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All such prepayments shall be at a price of 102% plus accrued interest. • OPTIONAL REDEMPTION COUNCIL MEETING October 27, 1986 U4i The City may elect on February 1, 1991, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1992. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date• will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefited property. The proceeds will be used to refund a portion of the City's improvement bonds dated October I, 1982, and to finance improvements within the City. TYPE OF BID A sealed bid for not less than $467,875 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior- to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $4,750, payable to the girder of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids unless the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been mode. Rates offered by Bidders shall be in integral multiples of 5/100 or 1/8 of I %. No rate for any maturity shall be more than I% lower than any prior rate. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. AWARD The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to, the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. • The City will reserve the right to: (0 waive non - substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have foiled to comply with the terms herein. REGISTRAR eie City will name the Registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the Registrar. • CUSIP NUMBERS COUNCIL MEETING October 27, 1986 If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the Purchaser at a place mutually satisfactory to the City and the Purchaser. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional .Association, Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no- litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City, or its designee, not later than 1:00 P.M., Central Time. Except as compliance with the terms of payment for the Bonds shall have been mode impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non - compliance with said terms for payment. At settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the to the effect that the Official Statement did not as of the date of the Official Statement, and does not as of the date of settlement, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 15 copies of the Official Statement. 3. The City Clerk- Treasurer is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of Bond Sale and to cause the abbreviated notice of sale attached hereto as Exhibit A, to be published in the manner required by law. The City Council shall meet on Monday, November 24, 1986 at 7:00 o'clock P.M. for the purpose of considering sealed bids on the Bonds and taking any other appropriate action. The Resolution was presented by Councilman Marier who moved its adopt- ion, the reading of which was dispensed with by unanimous consent. The Motion for the adoption of the foregoing Resolution was duly sec - ded by Councilman Bohjanen and upon vote being taken thereon, the llowing voted in favor of the motion: Marier, Bohjanen, Bisel and Mayor Benson and the following voted against: none where upon said Resolution was declared duly passed and adopted. Dated: October 27, 1986 COUNCIL MEETING October 27, 1986 BY ORDER OF THE CITY COUNCIL i y C1erk- Treasurer 1 042