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HomeMy WebLinkAbout2003-010 Council Resolution• CITY OF LINO LAKES RESOLUTION NO. 03-10 RESOLUTION AUTHORIZING THE ISSUANCE OF 2003 CERTIFICATES OF INDEBTEDNESS WHEREAS, the 2003 budget calls for the issuance of certificates amounting to $130,000.00 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 2004, 2005 and 2006. 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 $130,000.00 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, 2003 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 2003 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 $130,000 plus interest at 6% per annum in three installments in 2004, 2005 and 2006 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 27th, 2003 and is issued pursuant to and in full conformity with Minnesota Statutes, Section 412.301, and is to be effective as of February 1, 2003. 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. Adopted by the City Council of Lino Lakes, Minnesota, this 27th day of January, 2003. Ann Blair, City clerk Page 2 SCHEDULE OF PAYMENTS 2003 CERTIFICATES OF INDEBTEDNESS - FEBRUARY 1, 2003 PRINCIPAL INTEREST TOTAL December 31, 2004 $ 45,000.00 $ 14,950.00 $ 59,950.00 December 31, 2005 45,000.00 5,100.00 50,100.00 December 31, 2006 40,000.00 2,400.00 42,400.00 Total $130,000.00 $ 22,450.00 $152,450.00 Interest Rate - 6% Levy 2003 Payable 2004 Levy 2004 Payable 2005 Levy 2005 Payable 2006 $ 62,948.00 (includes 5% overlevy) 52,605.00 44,520.00 Total $160,073.00 • RECOMMENDATION) • AGENDA ITEM 3A STAFF ORIGINATOR Al Rolek MEETING DATE January 27, 2003 TOPIC Authorizing the Issuance of the 2003 Certificates of Indebtedness VOTE REQUIRED Simple Majority (3/5) BACKGROUND The 2003 budget called for the issuance of Certificates of Indebtedness in the amount of $130,000 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 2004, 2005 and 2006 and the levy proceeds will be credited to the Area and Unit Fund. The equipment to be funded with the 2003 Certificate of Indebtedness is listed on the attached schedule. OPTIONS 1. Approve Resolution 03 -10 issuing the 2003 Certificates of Indebtedness 2. Return to staff for further review Option 1.