RES 88-019 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $875,000 GENERAL OBLIGATION-REVENUE WATER SYSTEM BONDS, SERIES 1988A

Home Browse Search

. OFFICIAL TERMS OF OFFERING . $875,000* CITY OF ST. ANTHONY, MINNESOTA GENERAL OBLIGATION - REVENUE WATER SYSTEM BONDS, SERIES 1988A (CAPITAL APPRECIATION BONDS) Sealed bids for the Bonds will be opened by the City in the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143 on Tuesday, June 28, 1988, at 11 :00 A.M., Central Time. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated and shall bear interest from their date of settlement. Interest on the Bonds shall be compounded on January I, 1989, and semiannually thereafter on January I and July I of each year, and is payable, together with principal, only at maturity or upon prior redemption. The "original principal" as used herein is that principal amount which, when accreted at its associated interest rate until its scheduled maturity date, results in a payment described hereinafter as its "maturity value." These maturity values will be $5,000 denominations or integral multiples thereof. Payment of the accreted amount shall be payable at the main corporate office of the Registrar upon presentation and surrender for cancellation of the Bonds. OThe Bonds are being issued in the aggregate original principal amount of approximately $875,000*. The rate specified by the successful purchaser will determine the original principal amount of each Bond. The maturity value of approximately $1,200,000 will be paid on July I, 1993. The City reserves the right to increase or decrease the maturity value, in the multiple of $5,000, in order to result in an original principal amount which will not exceed $875,000*. Within 48 hours of award, the successful bidder shall provide a table of accreted values for a $5,000 maturity value as of each January I and July I through its maturity date based on semiannual compounding at the interest rate specified for such Bonds, from the assumed settlement date of July 25, 1988. In case of discrepancy, the City's calculation of accreted values shall be controlling. The City may elect on July I, 1992, or January I, 1993, to prepay Bonds due on July I, 1993. Redemption may be in whole or in part of the Bonds subject to prepayment. If ony part of the Bonds are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at the accreted value as of the date of redemption. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge revenues of the water system, including anticipated payments from the U.S. Army. The proceeds will be used to finance the costs associated with a temporary water filtration system and associated legal fees in conjunction with litigation against the U.S. Army. Approximate, subject to adjustment, but in no event will the original principal amount exceed $875,000. Page 5