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HomeMy WebLinkAbout1989-092 Council ResolutionCITY OF LINO LAKES RESOLUTION NO. 92 - 89 RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATES OF INDEBTEDNESS - 1989B WHEREAS, Minnesota Statutes, Section 412.301 and the Lino Lakes Home Rule Charter authorize the City Council to issue Certificates of Indebtedness within existing debt limits to finance the purchase of equipment; and WHEREAS, a contract will be entered into for the pur- chase of public safety equipment, road equipment, maintenance equipment and other capital equipment for the City of Lino Lakes at a total purchase price of Two Hundred Seventy-five Thousand and no/100 ($275,000.00) Dollars; and WHEREAS, the City has sought quotations for the pur- chase of said Certificates of Indebtedness, which are on file with the City Clerk; and WHEREAS, it appears that the bid of First State Bank of Hugo, Hugo, Minnesota for the purchase of such Certificates of Indebtedness is the lowest responsible bid. BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. The bid of First State Bank of Hugo for the purchase of Two Hundred Seventy-five Thousand and no/100 ($275,000.00) Dollars Certificates of Indebtedness is hereby accepted. 2. The City shall forthwith issue and sell five nego- tiable general obligation equipment Certificates of Indebtedness in the following amounts and dates: -1- 6.25% for 6.35% for 6.45% for 6.55% for 6.65% for $50,000.00 $50,000.00 $55,000.00 $60,000.00 $60,000.00 Certificate Certificate Certificate Certificate Certificate due due due due due February February February February February 1, 1991 1, 1992 1, 1993 1, 1994 1, 1995 to the First State Bank of Hugo in the form of single type- written fully registered Certificates of Indebtedness, bearing interest as set out herein, all interest payable on August 1, 1990, and February 1 and August 1 thereafter to maturity. Such Certificates shall mature serially on February 1 of each year commencing February 1, 1990. Such certificate shall be in substantially the follow- ing form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES No. R-1 $ 50,000.00 Equipment Certificates of Indebtedness KNOW ALL MEN BY THESE PRESENTS That the City of Lino Lakes, Anoka County, Minnesota, acknowledges itself to be indebted and for value received hereby promises to pay to First State Bank of Hugo, Hugo, Minnesota or registered assigns, with option of prior payment, the principal sum of FIFTY THOUSAND DOLLARS on the 1st day of February, 1990, in such coin or currency of the United States of America as at the time of -2- payment shall be legal tender for the payment of debts due the United States of America and to pay interest on said principal sum from time to time remaining unpaid in such coin or currency at the rate of six and twenty-five/hundredths (6.25%) per cent per annum from the date hereof until the principal sum is paid, interest to maturity payable on August 1, 1990 and February 1, 1991. Principal and interest on this Certificate is payable at the office of the City Clerk -Treasurer in the City of Lino Lakes, Minnesota. Payments of installments of principal and the interest due thereon shall discharge the City of the obligation hereon to the extent of the payment made. Annual payments regardless of when made, shall be applied first to the interest computed to the annual installment due date and next to principal due. Other payments, from whatever source derived, shall be applied to the principal last to become due and shall not affect the obligation of the City to pay the remaining installments as scheduled herein. The Certificate is issued as a part of a total of five Certificates of Indebtedness of Two Hundred Seventy-five Thousand and no/100 ($275,000.00) Dollars, and it is issued by the City pursuant to the Constitution and the laws of the State of Minnesota, including Minnesota Statutes, §412.301 and the Lino Lakes Home Rule Charter, for the purpose of financing the purchase of certain equipment by the City. This Certificate may be assigned but upon such assign- `" ment the assignee shall promptly notify the City at the office -3- of the City Clerk -Treasurer by registered mail, and the assignee shall furnish the same to the City Clerk -Treasurer either in exchange for a new fully registered Certificate in the principal amount then outstanding or for transfer on the registration book kept by the Clerk -Treasurer for such purpose. IT IS HEREBY CERTIFIED AND RECITED That all acts, con- ditions, and things required by the Constitution and laws of the State of Minnesota to be done, to happen, to exist, and to be performed precedent to and in the issuance of this Certificate of Indebtedness has been done, has happened, does exist, and have been performed in regular and due form, time, and manner as required by law; that prior to the issuance hereof, a direct, annual, irreparable ad valorem tax upon all the taxable property in the City has been levied for the years and in amounts at least five per cent in excess of sums sufficient to pay this Certificate and interest hereon when due, and additional taxes, if needed, will be levied upon all such property without limita- tion as to rate or amount; and this Certificate, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery does not exceed any constitutional or statutory limitation of indebtedness. IN TESTIMONY WHEREOF, The City of Lino Lakes, Anoka County, Minnesota, by its City Council has caused this Certif- icate of Indebtedness to be executed by the facsimile signature of the Mayor and the manual signature of the City Clerk with the -4- City Seal, all as of , 19 /s/ Marilyn Anderson /s/ Benjamin Benson City Clerk Mayor (SEAL) CERTIFICATE OF REGISTRATION It is hereby certified that, at the request of the holder of the within Certificate, the undersigned has this day registered it as to principal and interest in the name of such holder as indicated in the registration blank below, on the books kept by the undersigned for such purposes. DATE OF SIGNATURE NAME OF REGISTERED HOLDER REGISTRATION CITY CLERK -TREASURER First State Bank of Hugo Feb. 1, 1990 FORM OF ASSIGNMENT For value received, the registered owner does hereby sell, assign and transfer the within mentioned Certificate to, and unpaid installments of principal and interest shall be paid to the order of the assignee: NAME OF ASSIGNEE SOCIAL SECURITY NUMBER OR ID NUMBER DATE NAME OF REGISTERED HOLDER SIGNATURE OF REGISTERED OWNER'S AUTHORIZED AGENT First State Bank of Hugo 3. The Certificates shall be prepared under the direction of the City Clerk and shall be executed on behalf of the City by the facsimile signature of the Mayor and the manual signature of the City Clerk. When the Certificates have been so executed and authenticated, they shall be delivered by the City Treasurer to the purchaser on receipt of the purchase price heretofore agreed upon, and the purchaser shall not be required to see to the application thereof. 4. There is hereby created a special account in the debt service fund which shall be used only for paying principal and interest on the Certificates of Indebtedness issued pursuant to this resolution. Into this fund shall be paid all receipts from the taxes levied in this resolution and any other money appropriated to the fund from any other source. If any prin- cipal or interest on the Certificates becomes due when there is not sufficient money in the fund to pay it, the City Treasurer shall make up the deficit from the general fund of the City and the general fund shall be reimbursed for such advances from the proceeds of the taxes levied in this resolution and all other moneys received for or appropriated to the payment of principal and interest. 5. There is hereby created the equipment account in the general fund. Into this account shall be paid the proceeds of the sale of the Certificates authorized by this resolution and from this account shall be paid all expenses incurred for the purchase of equipment to be financed by such proceeds. If -6- any moneys remain in this account after all such expenses have been paid, the surplus shall be transferred to the debt service fund created in paragraph 4 of this resolution. 6. For the prompt and full payment of the principal and interest on the Certificates of Indebtedness when due, the full faith, credit, and taxing powers of the City are hereby irrevocably pledged. To provide moneys for such payment, there is hereby levied upon all the taxable property in the City a direct, annual, irrepealable, ad valorem tax which shall be spread upon the tax rolls and collected with and as a part of the other general property taxes in the City in the years and amounts as follows: Year Tax Levy 1990 1991 1992 1993 1994 $ 71,196.00 $ 67,875.00 $ 69,791.00 $ 71,316.00 $ 67,190.00 Such tax levy shall be irrepealable until all of the principal and interest on the Certificates is paid. The Treasurer is directed to certify to the County Auditor of Anoka County on or before October 10 in each year the amount on hand and available from any source and which has been appropriated to the sinking fund to be used to pay the principal of and interest on the Certificates and to direct the county to reduce the levy for such year by that amount. 7. The City Clerk is hereby authorized and directed to file a certified copy of this resolution with the County -7- Auditor of Anoka County, together with such information as he shall require, and to obtain from the County Auditor a certificate that the Certificates of Indebtedness have been entered on his bond register and the tax has been levied as required by law. 8. The City Clerk shall act as bond registrar and shall maintain a complete record of ownership of the Certificates. The City makes no representation that it is experienced in the transfer of ownership of registered securities or that it is aware of or experienced in applicable SEC regulations regarding such transfers. The Purchaser and any assignee of the Certificates shall take the Certificates subject to this condition. Adopted by the City Council this 26th day of December, 1989. Benjamin G. Benson, Mayor Marilyn G. Anderson, Clerk Treasurer