HomeMy WebLinkAbout2003-211 Council ResolutionRESOLUTION NO. 03-211
A RESOLUTION AWARDING THE SALE OF $250,000
TAXABLE GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2003B
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR ISSUANCE AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County,
Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. The offer of Lino Lakes State Bank (Purchaser) to purchase the Bonds is found to
be a reasonable offer and is accepted, the offer being to purchase the Bonds at a price of
$250,000 for Bonds bearing interest as follows:
Year of Maturity Interest Rate
2006 3.20%
2007 3.75
2008 4.20
2009 4.60
2010 4.80
2011 5.10
2012 5.30
2013 5.45
2014 5.60
1.02. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes,
Chapter 429 (Act) to the Purchaser in the total principal amount of $250,000. The Bonds will be
originally dated as of December 1, 2003, in the denomination of $5,000 or integral multiple
thereof as requested by the Purchaser, and maturing on February , in the years and installment
amounts as follows:
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Year Amount
2006 $25,000
2007 25,000
2008 25,000
2009 25,000
2010 25,000
2011 30,000
2012 30,000
2013 30,000
2014 35,000
1.03. Optional Redemption. The City may elect on any date to prepay the Bonds.
Redemption may be in whole or in part and if in part, at the option of the City and in such order
as the City will determine and within a maturity by lot as selected by the registrar. Prepayments
will be at a price of par plus accrued interest.
Section 2. Registrations.
2.01. Registered Form. The Bonds will be issued as a single typewritten bond only in
fully registered form. The interest thereon and, upon surrender of each Bond, the principal
amount thereof, will be payable by check or draft issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. The Bond will be dated as of the last interest
payment date preceding the date of authentication to which interest on the Bond has been paid or
made available for payment, unless (i) the date of authentication is an interest payment date to
which interest has been paid or made available for payment, in which case the Bond will be
dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest
payment date, in which case the Bond will be dated as of the date of original issue. The interest
on the Bonds will be payable on February 1 and August 1 of each year, commencing August 1,
2004, to the registered owners of record as of the close of business on the fifteenth day of the
immediately preceding month, whether or not that day is a business day.
2.03. Registration. The City appoints the City Finance Director as Bond Registrar. The
effect of registration and the rights and duties of the City and the Registrar with respect thereto
will be as follows:
(a) Register. The Registrar will keep a bond register in which the
Registrar will provide for the registration of ownership of Bonds and the registration of
transfers and exchanges of Bonds entitled to be registered, transferred or exchanged.
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(b) Transfer of Bonds. Upon surrender for transfer of the Bonds duly
endorsed by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar, duly executed by the registered owner
thereof or by an attorney duly authorized by the registered owner in writing, the Registrar
will [authenticate and] deliver, in the name of the designated transferee or transferees,
one or more new Bonds of a like aggregate principal amount and maturity, as requested
by the transferor. The Registrar may, however, close the books for registration of any
transfer after the fifteenth day of the month preceding each interest payment date and
until that interest payment date.
(c) Exchange of Bonds. Whenever any Bonds are surrendered by the
registered owner for exchange the Registrar will [authenticate and] deliver one or more
new Bonds of a like aggregate principal amount and maturity as requested by the
registered owner or the owner's attorney in writing.
(d) Cancellation. All Bonds surrendered upon transfer or exchange
will be promptly cancelled by the Registrar and thereafter disposed of as directed by the
City.
(e) Improper or Unauthorized Transfer. When any Bond is presented
to the Registrar for transfer, the Registrar may refuse to transfer the same until it is
satisfied that the endorsement on such Bond or separate instrument of transfer is valid
and genuine and that the requested transfer is legally authorized. The Registrar will incur
no liability for the refusal, in good faith, to make transfers which it, in its judgment,
deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the
person in whose name any Bond is at any time registered in the bond register as the
absolute owner of such Bond, whether such Bond will be overdue or not, for the purpose
of receiving payment of, or on account of, the principal of and interest on such Bond and
for all other purposes, and all such payments so made to any such registered owner or
upon the owner's order will be valid and effectual to satisfy and discharge the liability
upon the Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge
upon the owner thereof for every transfer or exchange of Bonds sufficient to reimburse
the Registrar for any tax, fee or other governmental charge required to be paid with
respect to such transfer or exchange
(h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond
becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of
like amount, number, maturity date and tenor in exchange and substitution for and upon
cancellation of any such mutilated Bond or in lieu of and in substitution for any such
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Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges
of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or
lost, upon filing with the Registrar of evidence satisfactory to it that such Bond was
destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the
Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to
it, in which both the City and the Registrar will be named as obligees. All Bonds so
surrendered to the Registrar will be cancelled by it and evidence of such cancellation will
be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured
or been called for redemption in accordance with its terms it will not be necessary to
issue a new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for
redemption, notice thereof identifying the Bonds to be redeemed will be given by the
Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid)
not more than 60 and not less than 30 days prior to the date fixed for redemption to the
registered owner of each Bond to be redeemed at the address shown on the registration
books kept by the Registrar and by publishing the notice if required by law. Failure to
give notice by publication or by mail to any registered owner, or any defect therein, will
not affect the validity of the proceedings for the redemption of Bonds. Bonds so called
for redemption will cease to bear interest after the specified redemption date, provided
that the funds for the redemption are on deposit with the place of payment at that time.
2.04. Execution and Delivery. The Bonds will be prepared under the direction of the
City Administrator and will be executed on behalf of the City by the signatures of the Mayor and
the City Administrator. In case any officer whose signature or a facsimile of whose signature
appears on the Bonds will cease to be such officer before the delivery of the Bonds, such
signature will nevertheless be valid and sufficient for all purposes, the same as if the officer had
remained in office until delivery. When the Bonds have been so prepared and executed the City
Administrator will deliver the same to the Purchaser thereof upon payment of the purchase price
and the Purchaser will not be obligated to see to the application of the purchase price.
Section 3. Form of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following form (or, at
Purchaser's request, as separate serial bonds in the amount of each installment amount):
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
TAXABLE GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2003B
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No. R-1 $250,000
Date of
Original Issue
December 1, 2003
The City of Lino Lakes, Minnesota, a duly organized and existing municipal corporation
in Anoka County, Minnesota (City), acknowledges itself to be indebted and for value received
hereby promises to pay to Lino Lakes State Bank, Lino Lakes„ Minnesota, or registered assigns,
the principal sum of $250,000 on February 1 in the years, interest rates and installment amounts
as follows:
Interest Interest
Year Rate Installment Year Rate Installment
2006 3.20% $25,000 2011 5.10% $30,000
2007 3.75 25,000 2012 5.30 30,000
2008 4.20 25,000 2013 5.45 30,000
2009 4.60 25,000 2014 5.60 35,000
2010 4.80 25,000
with interest thereon from the date hereof at the annual rate specified above, payable February 1
and August 1 in each year, commencing August 1, 2004. For the prompt and full payment of
such principal and interest as the same respectively become due, the full faith and credit and
taxing powers of the City have been and are hereby irrevocably pledged.
The City may elect on any date to prepay the Bonds. Redemption may be in whole or in
part and if in part, at the option of the City and in such order as the City will determine and
within a maturity by lot as selected by the registrar. Prepayments will be at a price of par plus
accrued interest.
This Bond is one of an issue in the aggregate principal amount of $250,000 all of like
original issue date and tenor issued pursuant to a resolution adopted by the City Council on
November 24, 2003 (Resolution), for the purpose of providing money to defray the expenses
incurred and to be incurred in making local improvements, pursuant to and in full conformity
with the home rule charter of the City and the Constitution and laws of the State of Minnesota,
including the City Charter and Minnesota Statutes, Chapter 429, and the principal hereof and
interest hereon are payable from special assessments against property specially benefited by local
improvements and ad valorem taxes as set forth in the Resolution to which reference is made for
a full statement of rights and powers thereby conferred. The full faith and credit of the City are
irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy
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additional ad valorem taxes on all taxable property in the City in the event of any deficiency in
special assessments pledged, which taxes may be levied without limitation as to rate or amount.
The Bonds of this series are issued only as fully registered Bond in the denomination of
$250,000.
As provided in the Resolution and subject to certain limitations set forth therein, this
Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by
the registered owner hereof in person or by the owner's attorney duly authorized in writing upon
surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar,
duly executed by the registered owner or the owner's attorney; and may also be surrendered in
exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City
will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of
the same aggregate principal amount, bearing interest at the same rate and maturing on the same
date, subject to reimbursement for any tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond
is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose
of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will
be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the home rule charter of the City and the Constitution and laws
of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and
in the issuance of this Bond in order to make it a valid and binding general obligation of the City
in accordance with its terms, have been done, do exist, have happened and have been performed
as so required, and that the issuance of this Bond does not cause the indebtedness of the City to
exceed any constitutional, statutory or charter limitation of indebtedness.
IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its
City Council, has caused this Bond to be executed on its behalf by the facsimile or manual
signatures of the Mayor and City Administrator and has caused this Bond to be dated as of the
date set forth below.
Dated: CITY OF LINO LAKES, MINNESOTA
(facsimile)
(
csimi e)
City Administrator Mayor
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REGISTRATION PROVISIONS
The ownership of the unpaid balance of the within Bond is registered in the bond register
of the City Finance Director, in the name of the person last listed below.
Date of Registered
Registration Owner
Lino Lakes State Bank
Lino Lakes, Minnesota
Federal Employer ID
No.
Section 4. Payment: Security.
Signature of
City Finance Director
4.01. The Bond will be payable from the Taxable General Obligation Improvement
Bonds, Series 2003B Debt Service Fund (Debt Service Fund) hereby created, and the proceeds
of general taxes hereinafter levied (Taxes) and special assessments (Assessments) levied or to be
levied for the improvements described in the resolution authorizing sale of the Bonds are hereby
pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes
due when there is not sufficient money in the Debt Service Fund to pay the same, the Finance
Director will pay such principal or interest from the general fund of the City, and the general
fund may be reimbursed for those advances out of the proceeds of Assessments and taxes levied
by this resolution when collected.
4.02. There is appropriated to the Debt Service Fund all capitalized interest funded from
Bond proceeds, if any.
4.03. The City Administrator is directed to file a certified copy of this resolution with the
County Auditor of Anoka County and obtain the certificate required by Minnesota Statutes,
Section 475.63.
4.04. It is determined that at least 20% of the cost of the Improvements will be specially
assessed against benefited properties. For the purpose of paying the principal of and interest on
the Bonds, there is hereby levied a direct annual irrepealable ad valorem tax upon all of the
taxable property in the City, which will be spread upon the tax rolls and collected with and as
part of other general taxes of the City. Such tax will be credited to the Debt Service Fund above
provided and will be in the years and amounts as follows (year stated being year of levy for
collection the following year):
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Year Levy Year Levy
2004 $23,668.15 2009 $23,523.77
2005 22,828.15 2010 21,917.27
2006 21,843.77 2011 20,247.76
2007 20,741.26 2012 23,781.00
2008 19,533.77
4.05. It is determined that the estimated collections of Assessments and foregoing Taxes
will produce at least five percent in excess of the amount needed to meet when due, the principal
and interest payments on the Bonds. The tax levy herein provided is irrepealable until all of the
Bonds are paid, provided that at the time the City makes its annual tax levies the City
Administrator may certify to the County Auditor the amount available in the Debt Service Fund
to pay principal and interest due during the ensuing year, and the County Auditor will thereupon
reduce the levy collectible during such year by the amount so certified.
4.06. It is hereby determined that the Improvements to be financed by the Bonds will
directly and indirectly benefit the abutting property, and the City covenants with the holders
from time to time of the Bonds as follows:
(a) The City has caused or will cause the Assessments for the
Improvements to be promptly levied so that the first installment will be collectible not
later than 2004 and will take all steps necessary to assure prompt collection, and the levy
of the Assessments is hereby authorized. The City Council will cause all further actions
and proceedings relative to the making and financing of the Improvements financed
hereby to be taken with due diligence that are required for the construction of each
Improvement financed wholly or partly from the proceeds of the Bonds, and for the final
and valid levy of the Assessments and the appropriation of any other funds needed to pay
the Bonds and interest thereon when due.
(b) In the event of any current or anticipation deficiency in the
Assessments and Taxes, the City Council will levy additional ad valorem taxes in the
amount of said current or anticipated deficiency.
(c) The City will keep complete and accurate books and records
showing: all receipts and disbursements in connection with the Improvements,
Assessments and Taxes levied therefor and other funds appropriated for their payment,
all collections thereof and disbursements therefrom, moneys on hand and, the balance of
unpaid Assessments.
(d) The City will cause its books and records to be audited at least
annually and will furnish copies of such audit reports to any interested person upon
request.
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Section 5. Authentication of Transcript.
5.01. The officers of the City are hereby authorized and directed to prepare and furnish
to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and
records of the City relating to the Bonds and to the financial condition and affairs of the City,
and such other certificates, affidavits and transcripts as may be required to show the facts within
their knowledge or as shown by the books and records in their custody and under their control,
relating to the validity and marketability of the Bonds and such instruments, including any
heretofore furnished, will be deemed representations of the City as to the facts stated therein.
5.02. It is determined that no comprehensive Official Statement or offering material has
been prepared or circulated by the City in connection with the sale of the Bonds and that the City
is relying on the investment representation of the Purchaser in an investment letter of even date
now on file with the City Administrator.
Section 6. Continuing Disclosure.
6.01. Participating underwriters need not comply with the continuing disclosure
requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission under
the Securities Exchange Act of 1934 (the "Rule"), because the offering is in a principal amount
less than $1,000,000. Consequently, the City will not enter into any undertaking to provide
continuing disclosure of any kind with respect to the Bonds.
The motion for adoption was duly seconded by Councilmember Reinert, and, upon vote
being taken thereon, the following members voted in favor: Councilmembers Carlson, Dahl,
O'Donnell, Reinert, and Mayor Bergeson
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
I, the undersigned, being the duly qualified and acting Administrator of the City of Lino
Lakes, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached
and foregoing extract of minutes of a regular meeting of the City Council held on Monday,
November 24, 2003, with the original minutes on file in my office and the extract is a full, true
and correct copy of the minutes insofar as they relate to the issuance and sale of $250,000
Taxable General Obligation Improvement Bonds, Series 2003B, of the City.
WITNESS My hand officially as such Administrator and the corporate seal of the City
this day of , 2003.
(SEAL)
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City Administrator
Lino Lakes, Minnesota
STATE OF MINNESOTA
COUNTY OF ANOKA
COUNTY AUDITOR'S
CERTIFICATE AS TO
TAX LEVY AND
REGISTRATION
I, the undersigned County Auditor of Anoka County, Minnesota, hereby certify that a
certified copy of a resolution adopted by the governing body of the City of Lino Lakes,
Minnesota, on November 24, 2003, levying taxes for the payment of $250,000 Taxable General
Obligation Improvement Bonds, Series 2003B, of said municipality dated December 1, 2003, has
been filed in my office and said bonds have been entered on the register of obligations in my
office and that such tax has been levied as required by law.
WITNESS My hand and official seal this day of , 2003.
County Auditor
Anoka County, Minnesota
(SEAL)
By
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Deputy
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
TAXABLE GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2003B
No. R-1 $250,000
Date of
Original Issue
December 1, 2003
The City of Lino Lakes, Minnesota, a duly organized and existing municipal corporation
in Anoka County, Minnesota (City), acknowledges itself to be indebted and for value received
hereby promises to pay to Lino Lakes State Bank, Lino Lakes„ Minnesota, or registered assigns,
the principal sum of $250,000 on February 1 in the years, interest rates and installment amounts
as follows:
Interest Interest
Year Rate Installment Year Rate Installment
2006 3.20% $25,000 2011 5.10% $30,000
2007 3.75 25,000 2012 5.30 30,000
2008 4.20 25,000 2013 5.45 30,000
2009 4.60 25,000 2014 5.60 35,000
2010 4.80 25,000
with interest thereon from the date hereof at the annual rate specified above, payable February 1
and August 1 in each year, commencing August 1, 2004. For the prompt and full payment of
such principal and interest as the same respectively become due, the full faith and credit and
taxing powers of the City have been and are hereby irrevocably pledged.
The City may elect on any date to prepay the Bonds. Redemption may be in whole or in
part and if in part, at the option of the City and in such order as the City will determine and
within a maturity by lot as selected by the registrar. Prepayments will be at a price of par plus
accrued interest.
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This Bond is one of an issue in the aggregate principal amount of $250,000 all of like
original issue date and tenor issued pursuant to a resolution adopted by the City Council on
November 24, 2003 (Resolution), for the purpose of providing money to defray the expenses
incurred and to be incurred in making local improvements, pursuant to and in full conformity
with the home rule charter of the City and the Constitution and laws of the State of Minnesota,
including the City Charter and Minnesota Statutes, Chapter 429, and the principal hereof and
interest hereon are payable from special assessments against property specially benefited by local
improvements and ad valorem taxes as set forth in the Resolution to which reference is made for
a full statement of rights and powers thereby conferred. The full faith and credit of the City are
irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy
additional ad valorem taxes on all taxable property in the City in the event of any deficiency in
special assessments pledged, which taxes may be levied without limitation as to rate or amount.
The Bonds of this series are issued only as fully registered Bond in the denomination of
$250,000.
As provided in the Resolution and subject to certain limitations set forth therein, this
Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by
the registered owner hereof in person or by the owner's attorney duly authorized in writing upon
surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar,
duly executed by the registered owner or the owner's attorney; and may also be surrendered in
exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City
will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of
the same aggregate principal amount, bearing interest at the same rate and maturing on the same
date, subject to reimbursement for any tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond
is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose
of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will
be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the home rule charter of the City and the Constitution and laws
of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and
in the issuance of this Bond in order to make it a valid and binding general obligation of the City
in accordance with its terms, have been done, do exist, have happened and have been performed
as so required, and that the issuance of this Bond does not cause the indebtedness of the City to
exceed any constitutional, statutory or charter limitation of indebtedness.
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IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its
City Council, has caused this Bond to be executed on its behalf by the facsimile or manual
signatures of the Mayor and City Administrator and has caused this Bond to be dated as of the
date set forth below.
Dated:
s\
ov,1,n er- P -1f) O03
Acting City Administrator
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CITY OF LINO LAKES, MINNESOTA
REGISTRATION PROVISIONS
The ownership of the unpaid balance of the within Bond is registered in the bond register
of the City Finance Director, in the name of the person last listed below.
Date of Registered
Registration Owner
Lino Lakes State Bank
Lino Lakes, Minnesota
Federal Employer ID
No. 41-1910118
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Signature of
City Finance Director
Extract of Minutes of Meeting
of the City Council of the City of
Lino Lakes, Anoka County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Lino Lakes, Minnesota, was duly held in the City Hall in said City on Monday, November 24,
2003, commencing at 6:56 o'clock P.M.
The following members were present: Councilmembers Carlson, Dahl, O'Donnell,
Reinert, and Mayor Bergeson
and the following were absent: None
***
The Mayor announced that the next order of business was consideration of the proposals
which had been received for the purchase of the City's approximately $2,120,000 General
Obligation Improvement and Refunding Bonds, Series 2003A.
The City Administrator presented a tabulation of the proposals that had been received in
the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in
Exhibit A attached.
In accordance with the official Terms of Proposal the following adjustments were made:
Principal Amount: $2,090,000
Maturities: 2005 $435,000; 2006 $445,000
Minimum Purchase Price: $2,067,010
After due consideration of the proposals, Member Dahl then introduced the following
resolution, and moved its adoption:
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