HomeMy WebLinkAbout2004-011 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 04-11
RESOLUTION AUTHORIZING THE ISSUANCE OF
2004 CERTIFICATES OF INDEBTEDNESS
WHEREAS, the 2004 budget calls for the issuance of certificates amounting to
$274,000.00 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 2005, 2006 and 2007.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes
that:
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 Improvement Project Fund (401), on
terms hereinafter set forth, is hereby ordered.
2. The City shall issue a Certificate of Indebtedness in the amount of $274,000.00
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, 2004 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
2004 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 $274,000 plus interest at 4% per annum in three installments in 2005, 2006
and 2007 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 26"', 2004 and is issued pursuant to and in full conformity with Minnesota
Statutes, Section 412.301, and is to be effective as of February 1, 2004.
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
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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.
Adopted by the City Council of Lino Lakes, Minnesota, this 26th day of January, 2004.
Ann B1�ir, City Clerk
J
Page 2
December 31, 2005
December 31, 2006
December 31, 2007
Total
Interest Rate - 4%
SCHEDULE OF PAYMENTS
2004 CERTIFICATES OF INDEBTEDNESS -
Levy 2004 Payable 2005
Levy 2005 Payable 2006
Levy 2006 Payable 2007
Total
FEBRUARY 1, 2004
PRINCIPAL
$ 81,000.00
95,000.00
98,000.00
$274,000.00
INTEREST
$ 21,007.00
7,720.00
3,920.00
$ 32,647.00
TOTAL
$102,007.00
102, 720.00
101,920.00
$306,647.00
$107,107.00 (includes 5% overlevy)
107,856.00
107,016.00
$321,979.00
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AGENDA ITEM 3A
STAFF ORIGINATOR Al Rolek
MEETING DATE January 26, 2004
TOPIC Authorizing the Issuance of the 2004 Certificates of
Indebtedness
Simple Majority (3/5)
VOTE REQUIRED
BACKGROUND
The 2004 budget called for the issuance of Certificates of Indebtedness in the amount of
$274,000 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 2005, 2006 and 2007 and the levy proceeds
will be credited to the Area and Unit Fund.
• The equipment to be funded with the 2004 Certificate of Indebtedness is listed on the
attached schedule.
OPTIONS
1. Approve Resolution 04 -11 issuing the 2004 Certificates of Indebtedness
2. Retum to staff for further review
RECOMMENDATION
Option 1.
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