HomeMy WebLinkAbout2014-016 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 14-16
RESOLUTION AUTHORIZING THE ISSUANCE OF
2014 CERTIFICATES OF INDEBTEDNESS
WHEREAS, the 2014 budget calls for the issuance of certificates amounting to $495,000.00 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 2015, 2016 and 2017.
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 $495,000.00 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 15, 2014 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
2014 CERTIFICATE OF INDEBTEDNESS
Know All Men By These Presents that the City of Lino Lakes, Anoka County, Minnesota, hereby acknowledge
the Capital Equipment 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 $495,000 plus interest at 1.0% per annum in three installments in 2015, 2016 and 2017 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 10, 2014 and is issued pursuant to and in full
conformity with Minnesota Statutes, Section 412.301, and is to be effective as of February 15, 2014.
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 Council of the City of Lino Lakes this 10th day of February, 2014.
The motion for the adoption of the foregoing resolution was introduced by Council Member Ra f fPrty and was
duly seconded by Council Member Stoesd upon vote being taken thereon, the following voted in favor thereof:.
Rafferty, Stoesz, Roeser, Kusterman, Reinert
The following voted against same:
none
Page 2
ATTEST:
uiann: Bartell, City Cler
JeffReine , Mayor
Page 3
December 31, 2015
December 31, 2016
December 31, 2017
Total
Interest Rate — 1.0%
Levy 2014 Payable 2015
Levy 2015 Payable 2016
Levy 2016 Payable 2017
SCHEDULE OF PAYMENTS
2014 CERTIFICATES OF INDEBTEDNESS
FEBRUARY 15, 2014
PRINCIPAL INTEREST TOTAL
$ 160,000.00 $ 9,488.00 $169,488.00
167,000.00 3,350.00 170,350.00
168,000.00 1,680.00 169,680.00
$ 495,000.00 $ 14,518.00 $509,518.00
$177,952.00 (includes required 5% overlevy)
178,868.00
178,164.00
Total $534,993.00
CITY COUNCIL
AGENDA ITEM 1 E
STAFF ORIGINATOR Al Rolek
MEETING DATE February 10, 2014
TOPIC Consider Resolution 14-16 Authorizing the Issuance of the 2014
Certificates of Indebtedness
VOTE REQUIRED Simple Majority (3/5)
BACKGROUND
The 2014 budget calls for the issuance of Certificates of Indebtedness in the amount of $495,000
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 2015, 2016 and 2017 and the levy proceeds will be
credited to the Area and Unit Fund.
The equipment to be funded with the 2014 Certificate of Indebtedness is listed on the attached
schedule.
RECOMMENDATION
Staff recommends approval of Resolution 14-16.
ATTACHMENTS
Resolution 14-16
2014 Capital Equipment Replacement Schedule
City of Lino Lakes
2014 Capital Equipment Replacement
Department Description Amount
Police (4) Squad Cars & Equipment $144,000
Fire
Capital Equipment 85,250
Fleet Single Axle Dump Truck w/ Plow 145,000
3/4 Ton Pickup w/ Plow 45,000
1/2 Ton Pickup 40,000
John Deere Tractor 25,000
Hot Box Trailer 15,000
Total Fleet 270,000
Total $499,250
Equipment Levy 0
Capital Equipment Fund 4,250
Certificates to be Issued $495,000