HomeMy WebLinkAbout1992-043 Council ResolutionExtract 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
March 23, 1992, commencing at 6:30 P.M.
The following members were present: Linda Elliott, Sally Ruether,
Wesley Neal
and the following were absent: mayor Vernon Reinert
* * *
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 $3,640,000 General
Obligation Improvement Refunding Bonds, Series 1992A.
The City Administrator presented a tabulation of the proposals which had been
received in the manner specified in the Terms of Proposal of the Bonds. The
proposals were as follows:
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AWARD:
SALE:
SPRINGSTED
PUBLIC FINANCE ADVISORS
Home Office
85 East Seventh Place
Suite 100
Saint Paul, MN 55101-2143
(612) 223-3000
Fax: (612) 223-3002
$3,640,000
CITY OF LINO LAKES, MINNESOTA
222 South Ninth Street
Suite 2825
Minneapolis, MN 55402-3368
(612) 333-9177
Fax: (612) 333-2363
16655 West Bluemound Road
Suite 290
Brookfield, WI 53005-5935
(414) 782-8222
Fax: (414) 782-2904
6800 College Boulevard
Suite 600
Overland Park, KS 66211-1533
(913) 345-8062
Fax: (913) 345-1770
GENERAL OBLIGATION IMPROVEMENT REFUNDING
BONDS, SERIES 1992A
CRONIN & COMPANY, INCORPORATED
And Associates
March 23, 1992
Moody's Rating: Baa
Bidder
Interest
Rates
Price
Net Interest
Cost
True Interest
Rate
';RONIN & COMPANY, INCORPORATED
�_DWARD D. JONES & COMPANY
John G. Kinnard & Company Incorporated
Marquette Bank Minneapolis, N.A.
Park Investment Corporation
PIPER, JAFFRAY & HOPWOOD
INCORPORATED
American National Bank Saint Paul
Juran & Moody, Incorporated
Miller, Johnson & Kuehn, Inc.
Craig-Hallum, Incorporated
Moore, Juran and Company,
Incorporated
- In Association With -
FBS INVESTMENT SERVICES, INC.
NORWEST INVESTMENT SERVICES,
INCORPORATED
4.00% 1993
4.50% 1994
5.00% 1995
5.25% 1996
5.40% 1997
5.70% 1998
5.90% 1999
6.10% 2000
6.25% 2001
6.40% 2002
6.50% 2003
6.60% 2004
6.70% 2005-2006
3.90% 1993
4.50% 1994
5.10% 1995
5.25% 1996
5.50% 1997
5.75% 1998
6.00% 1999
6.15% 2000
6.30% 2001
6.40% 2002
6.50% 2003
6.60% 2004
6.70% 2005-2006
$3,585,400.00 $1,999,645.83
$3,585,400.00 $2,005,960.83
6.5177%
6.5403%
These Bonds are being reoffered at par.
BBI: 6.79
Average Maturity: 8.45 Years
After due consideration of the proposals, Member Kuether then
introduced the following written resolution and moved its adoption the reading of
which had been dispensed with by unanimous consent:
RESOLUTION NO. 92-43
A RESOLUTION AWARDING THE SALE OF $3,640,000
GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 1992A;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION 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. Theproposalof Cronin & Company, Incorporated (Purchaser)
to purchase $3,640,000 General Obligation Improvement Refunding Bonds, Series
1992A (Bonds) of the City described in the Terms of Proposal thereof is determined
to be the highest and best proposal received and is accepted, the proposal being to
purchase the Bonds at a price of $3,585,400 plus accrued interest to date of
delivery, for Bonds bearing interest as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1993 4.00% 2000 6.101
1994 4.50 2001 6.25
1995 5.00 2002 6.40
1996 5.25 2003 6.50
1997 5.40 2004 6.60
1998 5.70 2005 6.70
1999 5.90 2006 6.70
Net effective interest rate: 6.50227. True interest rate: 6.51771
1.02. The sum of $ -0- being the amount bid by the Purchaser in
excess of $3,585,400 is credited to the Debt Service Fund hereinafter created. The
City Clerk -Treasurer is directed to retain the good faith check of the Purchaser,
pending completion of the sale of the Bonds, and to return the good faith checks of
the unsuccessful bidders forthwith. The Mayor and City Clerk -Treasurer are
directed to execute a contract with the Purchaser on behalf of the City.
1.03. The City will forthwith issue and sell the Bonds in the total principal
amount of $3,640,000, originally dated April 1, 1992, in the denomination of $5,000
each or any integral multiple thereof, numbered No. R-1, upward, bearing interest
as above set forth, and which mature serially on February 1 in the years and
amounts as follows:
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Year Amount Year Amount
1993 $ 150,000 2000 $ 280,000
1994 150,000 2001 290,000
1995 150,000 2002 300,000
1996 200,000 2003 320,000
1997 220,000 2004 340,000
1998 250,000 2005 360,000
1999 270,000 2006 360,000
1.04. Optional Redemption. The City may elect on February 1, 2001 and on
any date thereafter to prepay Bonds maturing on or after February 1, 2002.
Redemption may be in whole or in part of the Bonds subject to prepayment. If
redemption is in part, it shall be in such order as the City shall determine. If only
part of the Bonds having a common maturity date are called for prepayment the
specific Bonds to be prepaid will be chosen by lot by the Registrar. All payments
will be at a price of par plus accrued interest.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds shall be issued only in fully registered
form. The interest thereon and, upon surrender of each Bond, the principal amount
thereof, is payable by check or draft issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each 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 such Bond shall 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 such Bond will be dated as of the date of original issue.
The interest on the Bonds is payable on February 1 and August 1 of each year,
commencing February 1, 1993, to the owner of record thereof as of the close of
business on the fifteenth day of the immediately preceding month, whether or not
such day is a business day.
2.03. Registration. The City will appoint, and shall maintain, a bond
registrar, transfer agent, authenticating agent and paying agent (Registrar) . The
effect of registration and the rights and duties of the City and the Registrar with
respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate
trust office a bond register in which the Registrar provides for the
registration of ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond 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
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any transfer after the fifteenth day of the month preceding each interest
payment date and until such interest payment date.
(c) Exchange of Bonds. When 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. Bonds surrendered upon any 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 a Bond is presented
to the Registrar for transfer, the Registrar may refuse to transfer the Bond
until the Registrar is satisfied that the endorsement on the 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 a Bond is registered in the bond register as the
absolute owner of the Bond, whether the Bond is overdue or not, for the
purpose of receiving payment of, or on account of, the principal of and
interest on the Bond and for all other purposes, and payments so made to a
registered owner or upon the owner's order will be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent of the sum or
sums so paid.
(g) Taxes, Fees and Charges. For a transfer or exchange of Bonds,
the Registrar may impose a charge upon the owner thereof sufficient to
reimburse the Registrar for any tax, fee or other governmental charge
required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a 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 the mutilated Bond or in lieu of and in
substitution for any 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 the Bond was destroyed, stolen
or lost, and of the ownership thereof, and upon furnishing to the Registrar
of an appropriate bond or indemnity in form, substance and amount
satisfactory to it and as provided by law, in which both the City and the
Registrar must be named as obligees. Bonds so surrendered to the Registrar
will be cancelled by the Registrar and evidence of such cancellation must 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
is not necessary to issue a new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for re-
demption, 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
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(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 in the manner 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 any proceeding 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. Appointment of Initial Registrar. The City appoints
Norwest Bank Minnesota, National Association, Minneapolis, Minnesota, as the initial
Registrar. The Mayor and the City Clerk -Treasurer are authorized to execute and
deliver, on behalf of the City, a contract with the Registrar. Upon merger or con-
solidation of the Registrar with another corporation, if the resulting corporation is
a bank or trust company authorized by law to conduct such business, such
corporation is authorized to act as successor Registrar. The City agrees to pay the
reasonable and customary charges of the Registrar for the services performed. The
City reserves the right to remove the Registrar upon 30 days' notice and upon the
appointment of a successor Registrar, in which event the predecessor Registrar must
deliver all cash and Bonds in its possession to the successor Registrar and must
deliver the bond register to the successor Registrar. On or before each principal
or interest due date, without further order of this Council, the Clerk -Treasurer
must transmit to the Registrar moneys sufficient for the payment of all principal and
interest then due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared
under the direction of the Clerk -Treasurer and executed on behalf of the City by the
signatures of the Mayor and the Clerk -Treasurer, provided that all signatures may
be printed, engraved or lithographed facsimiles of the originals. In case any officer
whose signature or a facsimile of whose signature appears on the Bonds ceases to be
such officer before the delivery of any Bond, such signature or facsimile will
nevertheless be valid and sufficient for all purposes, the same as if the officer had
remained in office until delivery. Notwithstanding such execution, a Bond will not
be valid or obligatory for any purpose or entitled to any security or benefit under
this Resolution unless and until a certificate of authentication on the Bond has been
duly executed by the manual signature of an authorized representative of the Regis-
trar. Certificates of authentication on different Bonds need not be signed by the
same representative. The executed certificate of authentication on each Bond is
conclusive evidence that it has been authenticated and delivered under this Resolu-
tion. When the Bonds have been so prepared, executed and authenticated, the
Clerk -Treasurer shall deliver the same to the Purchaser upon payment of the pur-
chase price in accordance with the contract of sale heretofore made and executed,
and the Purchaser is not obligated to see to the application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed
definitive Bonds one or more typewritten temporary Bonds in substantially the form
set forth in Section 3 with such changes as may be necessary to reflect more than one
maturity in a single temporary bond. Upon the execution and delivery of definitive
Bonds the temporary Bonds will be exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed in substantially the following form:
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[Face of the Bond]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
GENERAL OBLIGATION IMPROVEMENT REFUNDING BOND, SERIES 1992A
Date of
Rate Maturity Original Issue CUSIP
April 1, 1992_
No. $
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 promises to pay to
or registered assigns, the principal sum of $ on the maturity date
specified above, with interest thereon from the date hereof at the annual rate
specified above, payable February 1 and August 1 in each year, commencing
February 1, 1993, to the person in whose name this Bond is registered at the close
of business on the fifteenth day (whether or not a business day) of the immediately
preceding month. The interest hereon and, upon presentation and surrender
hereof, the principal hereof are payable in lawful money of the United States of
America by check or draft by , Minnesota,
as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its
designated successor under the Resolution described herein. 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 irrevo-
cably pledged.
The City may elect on February 1, 2001, and on any date thereafter, to prepay
Bonds of this issue maturing on or after February 1, 2002. Redemption may be in
whole or in part of the Bonds subject to prepayment. If redemption is in part, it
shall be in such order as the City shall determine. If only part of the Bonds having
a common maturity date are called for prepayment the specific Bonds to be prepaid
will be chosen by lot by the Registrar. All prepayments shall be at a price of par
plus accrued interest.
The City Council has designated the Bonds as "qualified tax exempt obliga-
tions" within the meaning of Section 265(b) (3) of the Internal Revenue Code of 1986,
as amended (the Code) relating to disallowance of interest expense for financial
institutions and within the $10 million limit allowed by the Code for the calendar year
of issue.
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Additional provisions of this Bond are contained on the reverse hereof and
such provisions for all purposes have the same effect as though fully set forth in
this place.
This Bond is not valid or obligatory for any purpose or entitled to any
security or benefit under the Resolution until the Certificate of Authentication
hereon has been executed by the Bond Registrar by manual signature of one of its
authorized representatives.
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
signatures of the Mayor and City Clerk -Treasurer and has caused this Bond to be
dated as of the date set forth below.
Dated:
CITY OF LINO LAKES, MINNESOTA
(Facsimile) (Facsimile)
City Clerk -Treasurer Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned
within.
By
Authorized Representative
[Reverse of the Bond]
This Bond is one of an issue in the aggregate principal amount of $3,640,000
all of like original issue date and tenor, except as to number, maturity date, redemp-
tion privilege, and interest rate, all issued pursuant to a resolution adopted by the
City Council on March 23, 1992 (the Resolution) , for the purpose of providing money
to refund the outstanding principal amount of certain general obligation bonds of the
City, pursuant to and in full conformity with the Constitution and laws of the State
of Minnesota, and the City's home rule charter, including Minnesota Statutes,
Chapter 429 and the principal hereof and interest hereon are payable primarily from
special assessments against property specially benefitted by local improvements and
other revenues of the City 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 ad valorem taxes on all taxable property in the
City in the event of any deficiency in such special assessments and other revenues,
which taxes may be levied without limitation as to rate or amount. The Bonds of this
series are issued only as fully registered Bonds in denominations of $5,000 or any
integral multiple thereof of single maturities.
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
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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 shall 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 Constitution and laws of the State of
Minnesota and the City's home rule charter 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.
(Form of certificate to be printed on the reverse side of each Bond, following
a full copy of the legal opinion. )
I certify that the above is a full, true and correct copy of the legal opinion
rendered by bond counsel on the issue of Bonds of the City of Lino Lakes, Minne-
sota, which includes the within Bond, dated as of the date of delivery of and
payment for the Bonds.
(Facsimile Signature)
City Clerk -Treasurer
The following abbreviations, when used in the inscription on the face of this
Bond, shall be construed as though they were written out in full according to
applicable laws or regulations:
TEN COM -- as tenants
in common
UNIF GIFT MIN ACT Custodian
(Cust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
.... JT TEN -- as joint tenants with
right of survivorship and
not as tenants in common
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Act
(State)
�- concerning the assignee requested below is provided.
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights
thereunder, and does hereby irrevocably constitute and appoint
attorney to transfer the said Bond on the books kept for
registration of the within Bond, with full power of substitution in the premises.
Dated:
Notice: The assignor's signature to this assignment must correspond
with the name as it appears upon the face of the within Bond in
every particular, without alteration or any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust company or by a
brokerage firm having a membership in one of the major stock exchanges.
The Bond Registrar will not effect transfer of this Bond unless the information
Name and Address:
(Include information for all joint owners if
this Bond is held by joint account. )
Please insert social security or other
identifying number of assignee
3.02. The City Clerk -Treasurer is authorized and directed to obtain a copy
of the proposed approving legal opinion of Holmes & Graven, Chartered,
Minneapolis, Minnesota, which is to be complete except as to dating thereof and
cause the opinion to be printed on each Bond, together with a certificate to be
signed by the facsimile signature of the Clerk -Treasurer in substantially the form
set forth in the form of Bond. The Clerk -Treasurer is authorized and directed to
execute the certificate in the name of the City upon receipt of the opinion and to file
the opinion in the City offices.
Section 4. Payment: Security: Pledges and Covenants.
4.01. (a) The Bonds are payable from the General Obligation Improvement
Refunding Bonds, Series 1992A Debt Service Fund (Debt Service Fund) hereby
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created, and the proceeds of special assessments (Assessments) levied for
improvements (Improvements) financed by the Refunded Bonds as hereinafter
defined] are hereby pledged to the Debt Service Fund.
(b) The debt service fund, if any, heretofore established for the Refunded
Bonds as defined in the resolution providing for the issuance and sale of the Bonds,
is terminated as of July 1, 1992, the maturity date of the Refunding Bonds, and any
monies then remaining therein are to be transferred to the Debt Service Fund herein
created. If any payment of principal or interest on the Bonds shall become due when
there is not sufficient money in the Debt Service Fund to pay the same, the Clerk -
Treasurer shall pay such principal or interest from the general fund of the City, and
the general fund shall be reimbursed for such advances out of the proceeds of
Assessments to be collected.
(c) There is hereby appropriated to the Debt Service Fund any amount over
the minimum purchase price of the Bonds paid by the Purchaser and all accrued
interest paid by the Purchaser upon closing and delivery of the Bonds.
4.02. It is determined that at least 20$ of the cost of the Improvements has
been specially assessed against benefitted property. 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 shall
be spread upon the tax rolls and collected with and as part of other general taxes of
the City. Such tax shall be credited to the Debt Service Fund above provided and
shall be in the years and amounts as follows (year stated being year of levy for
collection the following year) :
Year Levy
(See Attachment A) ]
4.03. The Clerk -Treasurer is directed to file a certified copy of this
resolution with the County Auditor and to obtain the certificate required by Section
475.63 of the Act.
4.04. It is hereby determined that upon the receipt of proceeds of the Bonds
(Proceeds) for payment of the Refunded Bonds that an irrevocable appropriation to
the debt service fund for the Refunded Bonds shall have been made within the
meaning of Section 475.61, Subdivision 3 of the Act and the Clerk -Treasurer is
hereby authorized and directed to certify such fact to and request the County
Auditor to cancel any and all tax levies made by the resolution authorizing and
approving the Refunded Bonds.
4.05. It is hereby determined that the estimated collection of the foregoing
Taxes and Assessments 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 shall be irrepealable until all of the Bonds are paid,
provided that the City Clerk -Treasurer may annually, at the time the City makes its
tax levies, 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 shall thereupon reduce the levy collectible during such year by the amount
so certified. It is expected that the City will annually deposit in the Debt Service
Fund amounts from connection charges sufficient to cancel the levy for the following
year.
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4.06. It is hereby determined that the Improvements financed by the Bonds
will directly and indirectly benefit the abutting property, and the City hereby
covenants with the holders from time to time of the Bonds as follows:
(a) The City has levied Assessments for the improvements and has
taken all steps necessary to assure prompt collection thereof . The City
Council has caused all actions and proceedings relative to the making and
financing of the Improvements financed hereby to have been taken with due
diligence that were 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 anticipated deficiency in the
Assessments, the City Council will levy 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 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.
Section 5. Refunding: Findings: Payment of Refunded Bonds.
5.01. The Refunded Bonds are the General Obligation Temporary Improvement
Bonds, Series 1989A, of the City, dated July 1, 1989, of which $4,660,000 in principal
amount is due on July 1, 1992.
5.02. It is hereby found and determined that the Proceeds together with other
funds of the City will be sufficient to pay all of the principal of, interest on and
redemption premium (if any) on the Refunded Bonds .
5.03. When all Bonds and all interest thereon, have been discharged as
provided in this section, all pledges, covenants and other rights granted by this
resolution to the holders of the Bonds shall cease, except that the pledge of the full
faith and credit of the City for the prompt and full payment of the principal of and
interest on the Bonds shall remain in full force and effect. The City may discharge
all Bonds which are due on any date by depositing with the Registrar on or before
that date a sum sufficient for the payment thereof in full. If any Bond should not
be paid when due, it may nevertheless be discharged by depositing with the
Registrar a sum sufficient for the payment thereof in full with interest accrued to the
date of such deposit.
Section 6. Authentication of Transcript.
6.01. The officers of the City are 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
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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, shall be deemed representations of the City as to the facts
stated therein.
6.02. The Mayor and City Clerk -Treasurer are hereby authorized and
directed to certify that they have examined the Official Statement prepared and
circulated in connection with the issuance and sale of the Bonds and that to the best
of their knowledge and belief the Official Statement is a complete and accurate repre-
sentation of the facts and representations made therein as of the date of the Official
Statement.
Section 7. Tax Covenant.
7.01. The City covenants and agrees with the holders from time to time of the
Bonds that it will not take or permit to be taken by any of its officers, employees or
agents any action which would cause the interest on the Bonds to become subject to
taxation under the Internal Revenue Code of 1986, as amended (the Code), and the
Treasury Regulations promulgated thereunder, in effect at the time of such actions,
and that it will take or cause its officers, employees or agents to take, all affirmative
action within its power that may be necessary to ensure that such interest will not
become subject to taxation under the Code and applicable Treasury Regulations, as
presently existing or as hereafter amended and made applicable to the Bonds.
7.02. The City will comply with requirements necessary under the Code to
establish and maintain the exclusion from gross income of the interest on the Bonds
under Section 103 of the Code, including without limitation requirements relating to
temporary periods for investments, limitations on amounts invested at a yield greater
than the yield on the Bonds, and the rebate of excess investment earnings to the
United States if required.
7.03. The City further covenants not to use the proceeds of the Bonds or to
cause or permit them or any of them to be used, in such a manner as to cause the
Bonds to be "private activity bonds" within the meaning of Sections 103 and 141
through 150 of the Code.
7.04. In order to qualify the Bonds as "qualified tax-exempt obligations"
within the meaning of Section 265(b) (3) of the Code, the City makes the follow- ing
factual statements and representations:
(a) the Bonds are not "private activity bonds" as defined in Section
141 of the Code;
(b) the City hereby designates the Bonds as "qualified tax-exempt
obligations" for purposes of Section 265(b) (3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations
(other than private activity bonds, treating qualified 501(c) (3) bonds as not
being private activity bonds) which will be issued by the City (and all
subordinate entities of the City) during calendar year 1992 will not exceed
$10,000,000; and
9N031693
LN140-23
(d) not more than $10,000,000 of obligations issued by the City
during calendar year 1992 have been designated for purposes of Section
265(b)(3) of the Code.
7.05. The City shall use its best efforts to comply with any federal procedural
requirements which may apply in order to effectuate the designations made by this
section.
The motion for the adoption of the foregoing resolution was duly seconded by
Member Elliott
, and upon vote being taken thereon, the following
voted in favor thereof: Elliott, Kuether, Neal
and the following voted against the same:
None
whereupon said resolution was declared duly passed and adopted.
SNG31693
11(140-23
ATTACHMENT A
Levy Collection
Year Year Levy
1992 1993 $260,013
1993 1994 259,040
1994 1995 308,634
1995 1996 323,580
1996 1997 347,577
1997 1998 358,583
1998 1999 357,328
1999 2000 354,861
2000 2001 353,352
2001 2002 358,981
2002 2003 367,953
2003 2004 369,724
2004 2005 348,731
STATE OF MINNESOTA )
)
COUNTY OF ANOKA ) SS.
)
CITY OF LINO LAKES )
I, the undersigned, being the duly qualified and acting Clerk -Treasurer 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 of the City held on March 23, 1992 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 $3,640,000 General
Obligation Improvement Refunding Bonds, Series 1992A of the City.
WITNESS My hand officially as such Clerk -Treasurer and the corporate seal
of the City this day of March
(SEAL)
SNa31693
LN140-23
, 1992.
City Clerk -Treasurer
Lino Lakes, Minnesota
STATE OF MINNESOTA )
COUNTY OF ANOKA ) SS.
CITY OF LINO LAKES )
I, the undersigned, being the duly qualified and acting Clerk -Treasurer 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 of the City held on March 23, 1992 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 $3,640,000 General
Obligation Improvement Refunding Bonds, Series 1992A of the City.
WITNESS My hand officially as such Clerk -Treasurer and the corporate seal
of the City this )2 - day of March
(SEAL)
SNG31693
LN140-23
, 1992.
4 /Y L
City Clerk -Treasurer
Lino Lakes, Minnesota