Agenda Packets - 2017/02/13 - Laserfiche WebLink

Home Browse Search

aerial ladder, fire pump, booster tank, hoses, and ground ladders, a “Chief’s” passenger vehicle, and a truck for grass fires) for municipal fire protection and firefighting purposes (the “Equipment”). In order to finance the Equipment the Cities believe that it is necessary, desirable and appropriate that approximately $1,145,000 of General Obligation Equipment Certificates of Indebtedness (the “Certificates”) be issued pursuant to Minnesota Statutes, Section 412.301, as amended (the “Act”). 3. Equipment Certificates. Blaine, Mounds View and Spring Lake Park each represent and warrant to the other that they have each taken all action required by the Act in order to be legally authorized to issue the Certificates. The Certificates will be issued by Spring Lake Park, but Mounds View and Blaine each will be legally obligated to pay a portion of debt service on the Certificates to Spring Lake Park and hereby pledge their full faith and credit and taxing powers to pay such portions of the debt service on the Certificates. Prior to the issuance of the Certificates, in order to evidence Mounds View’s and Blaine’s obligations to Spring Lake Park to pay a portion of debt service on the Certificates, Mounds View and Blaine will each issue to Spring Lake Park a note, certificate of indebtedness or other debt instrument (collectively, the “Notes”) or adopt a resolution pursuant to which they will pledge their full faith and credit and taxing powers to pay the pro rata share of the annual debt service on the Certificates based on the Formula in effect at the time of issuance. In the event any of the Cities withdraw from participation in the Joint Powers Agreement as contemplated by Section III(I) therein, they shall remain obligated to pay their Historical Share (as defined by the Joint Powers Agreement) of debt service on the Certificates as contemplated by Section III(E) of the Joint Powers Agreement, or, if Mounds View or Blaine agree to pay scheduled debt service amounts pursuant to the Notes, they shall remain obligated to pay their scheduled debt service set forth therein, as if they did not act to withdraw from the Joint Powers Agreement. 4. Amendments to Joint Powers Agreement. Section III(G) of the Joint Powers Agreement anticipates that Blaine will issue general obligation bonds to defray the costs of acquisition, construction, furnishing and betterment of land, buildings, and equipment for municipal fire protection and firefighting purposes. However, Blaine has indicated to Spring Lake Park and Mounds View that it will issue its own tax-exempt bonds in excess of $10,000,000 during calendar year 2017, which will make all tax-exempt obligations to be issued by Blaine (including the Certificates) non-“qualified tax-exempt obligations” (otherwise known as non-“bank qualified” obligations) under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”). The Cities have each been informed by their respective municipal advisors that tax-exempt obligations that are non-“bank qualified” obligations are less desirable to investors in the open market, due to the cost savings characteristics of bank-qualified obligations. Therefore, it is necessary and desirable to realize further interest savings for the Cities that Section III(E) of the Joint Powers Agreement be supplemented to allow Spring Lake Park to issue the Certificates. Spring Lake Park has informed Mounds View and Blaine that it does not expect to issue more than $10,000,000 in tax-exempt obligations during calendar year 2017, so it may issue the Certificates as “qualified tax-exempt obligations” under Section 265(b)(3) of the Code. (i) Section III(D) of the Joint Powers Agreement is hereby amended and restated in its entirety as follows: