HomeMy WebLinkAboutResolution 8718 RESOLUTION NO.8718
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
A RESOLUTION CERTIFYING THE CITY OF MOUNDS VIEW'S
SHARE OF INDEBTEDNESS RELATED TO THE
CITY OF SPRING LAKE PARK'S$1,090,000
GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF
INDEBTEDNESS,SERIES 2017A,THE PROCEEDS OF WHICH
ARE TO BE USED BY THE SPRING LAKE PARK
FIRE DEPARTMENT,INC.
BE IT RESOLVED By the City Council (the "Council") of the City of Mounds View, Minnesota
(the"City")as follows:
Section 1. Sale of Certificates.
1.01. Background.
(a) The City and the cities of Spring Lake Park and Blaine, Minnesota (collectively, the
"Cities")jointly contract for fire protection and other public safety services pursuant to a Joint Powers
Agreement For the Provision of Fire Protection Services, dated December 11, 1990 (the "Joint Powers
Agreement"). The Joint Powers Agreement has been used in the past to fmance the acquisition of various
items of equipment for use by the Fire Company, and has been supplemented for a third time (the "Third
Supplement")to authorize the City of Spring Lake Park to issue general obligation equipment certificates
of indebtedness to finance the following equipment (the "Equipment"), for use by the Spring Lake Park
Fire Department, Inc., which is a Minnesota nonprofit corporation providing fire protection and other
public safety services to the Cities: a 75-foot ladder truck equipped with an aerial ladder, fire pump,
booster tank,hoses, ground ladders, a"Chiefs"passenger vehicle,and a truck for grass fires.
(b) Pursuant to Resolution No. 8714, adopted by this Council on February 13, 2017,the City
approved the Third Supplement. The City has been informed by the City of Spring Lake Park that on
February 21, 2017 the City of Spring Lake Park sold its General Obligation Equipment Certificates of
Indebtedness, Series 2017A, in the original aggregate principal amount of$1,090,000 (the"Certificates"),
pursuant to Minnesota Statutes, Section 412.301 and Chapter 475, as amended (collectively, the "Act").
The purpose of this Resolution is to memorialize the sale of the Certificates and certify the City's
obligation to pay a portion of the debt service on the Certificates, pursuant to the payment formula found
on Exhibit A to the Joint Powers Agreement (the "Formula"), as such Formula may change from time to
time up to the fmal maturity date of the Certificates on February 1,2023.
1.02. Interest Rates on the Certificates. The Certificates were sold at a price of$1,144,323.15(par
amount of $1,090,000.00, plus original issue premium of $58,955.65, less underwriter's discount of
$4,632.50),for Certificates bearing interest as follows:
1
Year Interest Rate
2019 3.000%
2020 3.000
2021 3.000
2022 3.000
2023 3.000
1.03. Terms and Principal Amounts of the Certificates. The City of Spring Lake Park will
forthwith issue and sell the Certificates pursuant to the Act in the total aggregate principal amount of
$1,090,000, originally dated March 21, 2017, in the denomination of$5,000 each or any integral multiple
thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1
in the years and amounts as follows:
Year Amount
2019 $205,000
2020 210,000
2021 220,000
2022 225,000
2023 230,000
1.04. Optional Redemption. The Certificates are not subject to optional redemption or
prepayment prior to maturity.
Section 2. Form of Mounds View Certificate.
2.01. Execution of the Mounds View Certificate. Under the precepts of the Joint Powers
Agreement and Third Supplement thereto, and to evidence its obligation to pay its proportionate share of
debt service on the Certificates, this Council finds it is necessary and expedient to the sound financial
management of the City to issue its own General Obligation Equipment Certificate of Indebtedness,
Series 2017, pursuant to the Act in a principal amount anticipated not to exceed $172,430 (the "Mounds
View Certificate"). This Council understands and acknowledges that debt service on the Mounds View
Certificate will always be payable by the City in accordance with the final percentages fixed from time to
time by the Formula. The Mounds View Certificate will be in substantially the form as attached hereto as
Exhibit A. Additionally, the City is responsible to pay to the City of Spring Lake Park the amount of
$4,677.09 on February 1,2018,which is an interest payment due on the Certificates on said date.
2.02. Security. The City of Spring Lake Park has irrevocably pledged its full faith and credit and
taxing powers to pay debt service on the Certificates. To reimburse the City of Spring Lake Park for the
City's portion of principal and interest on the Certificates, as evidenced through the Mounds View
Certificate,the City hereby irrevocably pledges the full faith and credit and taxing powers of the City,and the
City shall levy ad valorem taxes on all taxable property, which taxes may be levied without limitation as to
rate or amount. The City will pay principal and interest on the Mounds View Certificate from the general
fund of the City, and the general fund may be reimbursed for those advances out of the proceeds of the taxes
levied hereto,when collected,and the proceeds of such ad valorem taxes levied are pledged to the payment of
the Mounds View Certificate. Taxes levied to pay debt service on the Mounds View Certificate are in the
years and amounts as provided for on Exhibit B hereto.
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2.03. Changes in Formula. The City understands and acknowledges that, as of the date the
Certificates were sold,the City's share of debt service on the Certificates pursuant to the Formula is 15.819%.
The City's contribution to the debt service on the Certificates, as shown on Exhibit A hereto, is$202,343.80.
The City further understands and acknowledges that the precise contribution amounts of the City under the
Formula may change over time, and the City may be obligated to pay an additional amount, or a reduced
amount,of debt service on the Mounds View Certificate if the Formula changes accordingly. Any additional
amount of debt service may be provided through the levy of ad valorem taxes,or through payments from the
City's general fund. Any changes in debt service payments under the Mounds View Certificate that differ
from the amount provided for in Exhibit A, or through the tax levy chart in Exhibit C, may be made
administratively by the City,without further resolution of this Council.
2.04. Certificate as to Registration. The City Administrator is directed to file a certified copy of
this Resolution with the Ramsey County Property Records and Revenue Office and to obtain the certificate
required by Section 475.63 of the Act.
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The foregoing resolution was passed and adopted by the City Council of the City of Mounds
View,Minnesota,this 27th day of February,2017.
CITY OF MOUNDS VIEW,MINNESOTA
Carol A.Mueller,Mayor
Attest:
INS
g41(41/L /
Jim Ericson,City Administrator
S-1
EXHIBIT A
FORM OF MOUNDS VIEW CERTIFICATE
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF RAMSEY
CITY OF MOUNDS VIEW
GENERAL OBLIGATION EQUIPMENT CERTIFICATE OF INDEBTEDNESS,SERIES 2017
The City of Mounds View, Minnesota, a duly organized and existing home-rule charter city and
political subdivision located in Ramsey County, Minnesota (the"City"), acknowledges itself to be indebted
and for value received promises to pay to the City of Spring Lake Park, Minnesota ("Spring Lake Park") a
principal sum not-to-exceed $172,430, plus interest thereon, at the rates set forth in the Resolution (herein
defined),but ultimately payable by the City in accordance with the Formula,as defined and located at Exhibit
A to that certain Joint Powers Agreement For the Provision of Fire Protection Services, dated December 11,
1990, as amended and supplemented (the "Joint Powers Agreement"). Annual payments of principal and
interest hereon, in amounts determined in accordance with the Formula in the aforementioned Joint Powers
Agreement,shall be payable February 1 of each year,commencing February 1,2019. 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 and the City Council of the City has
obligated itself to levy ad valorem taxes on all taxable property within the City, which taxes may be levied
without limitation as to rate or amount.
This Certificate is issued pursuant to a resolution adopted by the City Council of the City on
February 27,2017(the"Resolution"),for the purpose of reimbursing Spring Lake Park for the City's share of
the financing of various items of equipment for fire protection and firefighting purposes by the Spring Lake
Park Fire Department, Inc., which is a Minnesota nonprofit corporation providing fire protection and
other public safety services to the City, Spring Lake Park, and the City of Blaine, Minnesota. This
Certificate is being issued 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 Minnesota Statutes, Section 412.301 and
Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily from ad
valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and
powers thereby conferred.
This Certificate is not subject to optional redemption by the City and is not transferable.
The City is also responsible to pay to Spring Lake Park the amount of$4,677.09 before February
1,2018,which is an amount of interest on this Certificate that is due on said date.
IT IS HEREBY CERTIFIED,RECITED, COVENANTED AND AGREED that all acts, conditions
and things required by the home-rule charter of the City,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 Certificate 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
Certificate does not cause the indebtedness of the City to exceed any charter, constitutional or statutory
limitation of indebtedness.
IN WITNESS WHEREOF, the City of Mounds View, Minnesota, by its City Council, has caused
this Certificate to be executed on its behalf by the facsimile or manual signatures of the Mayor and the City
Manager and has caused this Certificate to be dated as of the date set forth below.
Dated: March 21,2017.
CITY OF MOUNDS VIEW,MINNESOTA
City Administrator Mayor
EXIIIBIT B
TAX LEVY FOR MOUNDS VIEW CERTIFICATE
Year of Tax Levy Year of Tax Collection Amount
2017 2018 $39,481.85
2018 2019 39,290.84
2019 2020 39,905.40
2020 2021 39,639.65
2021 2022 39,348.97