Loading...
HomeMy WebLinkAbout1981.09.21 RESO 1981-16RESOLUTION 1981-16 RESOLUTION PROVIDNG FOR THE ISSUANCE AND SALE OF $170,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS OF 1981 WHEREAS: A. The City Council has heretofore determined that it is necessary and expedient to issue $170,000 to issue $170,000 General Obligation Temporary Improvement Bonds of 1981, pursuant to Minnesota Statutes, Chapters 475 and 429, to finance the construction of street and storm sewer improvements in the City; B. No other obligations have been sold pursuant to a private sale within the last three (3) months which when combined with this issue would exceed $200,000 as required by Minnesota Statutes, Section 475.60, Sub- division 2(2); NOW THEREFORE, BE IT RESOLVED by the Council of the City of Hugo, Minnesota, as follows: 1. That the offer of The First National Bank of St. Paul to purchase $170,000 General Obligation Temporary Improvement Bonds of 1981 of the City in accordance with the terms and at the rates of interest hereinafter set forth and to pay therefor the sum of $167,671.00 is hereby accepted. Said bonds shall be payable as to principal and interest at The First National Bank of St. Paul or any successor paying agent duly appointed by the City. 2. The $170,000 negotiable coupon general obligation bonds of the City shall be dated October 1, 1981, and shall be issued forthwith. The bonds shall be 34 in number and numbered from 1 to 34, both inclusive, in the denomination of $5,000 each. Said bonds shall mature, without option of prepayment, on October 1, 1984. 3. The bonds shall provide funds for the construction of street and storm sewer improvements in the City. The total cost of the improve- ments, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the bonds herein authorized. Work on the improvements shall proceed with due diligence to completion. 4. The bonds shall bear interest at the rate of 9.90% per annum, payable semiannually on April 1 and October 1 of each year, commencing April 1, 1982. 5. The bonds and interest coupons to be issued hereunder shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA WASHINGTON COUNTY CITY OF HUGO No' $5,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BOND OF 1981 KNOW ALL PERSONS BY THESE PRESENTS that the City of Hugo, Washington County, Minnesota, certifies that it is indebted and for value received promises to pay to bearer, with- out option of prepayment, the principal sum of FIVE THOUSAND DOLLARS on the first day of October, 1984, and to pay interest thereon from the date hereof until the principal is paid at the rate of percent ( %) per annum, payable semiannually on t efirst day of Apri=nd the first day of October in each year, commencing April 1, 1982, interest to maturity being represented by and payable in accord- ance with and upon presentation and surrender of the interest coupons hereto attached, as the same severally become due. Both principal and interest are payable at or any successor paying agent duly appointed by the City, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. This bond is one of an issue in the total principal amount of*$170,000, all of like date and tenor, except as to serial number, which bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota for the purpose of providing temporary financing for the construction of street and storm sewer improvements in the City and is payable out of the General Obligation Temporary Improvement Bonds of 1981 Fund of the City, to which fund there has been irrevocably pledged the special assessments and taxes to be levied in respect to the improvements financed by said issue, and into which fund there are to be paid the proceeds of the definitive improvement bonds or additional temporary improvement bonds which the City is required by law to issue at or prior to the maturity of this bond for the purpose of re- funding the same if the special assessments and taxes thereto- fore collected, or any other municipal funds which are properly available and are appropriated by the City Council for such purpose, are not sufficient for the payment thereof. This bond -3- constitutes a general obligation of the City, and to provide moneys for the prompt and full payment of the principal and interest when the same become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this bond, have been done, have happened and have been performed, -in regular and due form, time and manner as required by law, and this bond, together with all other debts of the City outstanding on the date hereof and the date of its actual issuance and delivery does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Hugo, Washington County, Minnesota, by its City Council has caused this bond to be executed on its behalf by the facsimile signature of the Mayor and the manual signature of the City Clerk -Treasurer, the corporate seal of the City having been intentionally omit- ted as permitted by law, and has caused the interest coupons to be executed and authenticated by the facsimile signatures of said officers, all as of October 1, 1981. /s/ facsimile City Clerk -Treasurer Mayor (Form of Coupon) No. On the first day of April (October), 19 , the City of Hugo, Washington County, Minnesota, will pay to bearer at , or any successor paying agent duly appointed by the City, the sum shown hereon for interest then due on its General Obligation Temporary Improvement Bond of 1981, No. dated October 1, 1981. /s/ Facsimile /s/ Facsimile City Clerk -Treasurer Mayor -4- 6. The bonds shall be executed on behalf of the City by the signatures of its Mayor and Clerk -Treasurer and be sealed with the seal of the City; provided, that one of the signatures and the seal of the City may be printed facsimiles and provided further that the corporate seal may be omitted on the bonds as permitted by law. The interest coupons pertaining thereto shall be executed by the printed, engraved or litho- graphed facsimile signatures of the Mayor and Clerk -Treasurer. 7.' The bonds when so prepared and executed shall be delivered by the Clerk -Treasurer to the purchaser thereof upon receipt of the purchase price, and the purchaser shall not be obliged to see to the proper application thereof. S. There is hereby created a special fund to be designated "General Obligation Temporary Improvement Bonds of 1981 Fund" to be held and administered by the City Clerk - Treasurer separate and apart from all other accounts of the City. The Fund shall be maintained in the manner herein speci- fied until all of the bonds herein authorized and the interest thereon have been fully paid. There shall be maintained in the Fund two separate accounts, to be designated the "Construction Account" and the "Debt Service Account", respectively. The proceeds of the sale of the bonds herein author- ized, less accrued interest received thereon, and less any amount paid for the bonds in excess of $167,000, and less capitalized interest in the amount of $18,000 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before October 1, 1982), plus any special assessments levied with respect to improve- ments financed by the bonds and collected prior to completion of the improvements and payment of the costs thereof, shall be credited to the Construction Account, from which there shall be paid all costs and expenses of making the improvements listed in paragraph 9, including the cost of any construction con- tracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that the bond proceeds may also be used to the extent necessary to pay interest on the bonds due prior to the anticipated date of commencement of the collection of taxes or special assess- ments herein covenanted to be levied; and provided further that if upon completion of the improvements there shall remain any unexpended balance in the Construction Account, the balance (other than any special assessments) may be transferred by the Council to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429; and provided further that any special assessments credited to the Construc- tion Account are hereby pledged and shall be used only to pay principal and interest due on the bonds. -5- There is hereby pledged and there shall be credited to the Debt Service Account (a) all collections of special assessments herein covenanted to be levied and either initially credited to the Construction Account and required to pay any principal and interest due on the bonds or collected subsequent to the completion of the improvements and payment of the costs thereof; (b) all accrued interest received upon delivery of the bonds, (c) all funds paid for the bonds in excess of $167,000, (d) capitalized interest in the amount of $18,000 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before October 1, 1982), (e) any collections of all taxes which may hereafter be levied for the payment the bonds; and (f) all funds remaining in the Construction Account after completion of the improvements and payment of the costs thereof, not so transferred to the account of another improvement, provided however, that upon termination of the Debt Service Account all collections of such special assessments and taxes herein covenanted to be levied and any other sums pledged and appropriated to the Debt Service Account and not used for the payment of said bonds and interest shall be pledged and credited to the extent necessary to the Debt Service Account of any definitive improvement bonds or additional temporary improvement bonds issued to pay in whole or part said bonds. The Debt Service Account herein created shall be used solely to pay the principal and interest and any premiums for redemption of the bonds issued hereunder and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. Any sums from time to time held in the Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments. 9. It is hereby determined that no less than 20% of the cost to the City of each improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land 'benefited by the improvements. The City hereby covenants and agrees that it will let all construction contracts not here- tofore let within one year after ordering each improvement financed hereunder unless the resolution ordering the improve- ment specifies a different time limit for the letting of construction contracts and will do and perform as soon as they may be done, all acts and things necessary for the final and valid levy of such special assessments, and in the event that -6- any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity, in any action or proceedings taken or to be taken by the City or this Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. Subject to such adjustments as are required by conditions in existence at the time the assessments are levied, it is•hereby determined that the assessments shall be payable in equal, consecutive, annual installments, with general taxes for the years shown below and with interest on the declining balance of all such assessments at the rate of at least 12.0 % per annum: Improvement Designation Amount Levy Years See attached schedule At the time the assessments.are in fact levied the City Council shall, based on the then current estimated collections of the assessments, make any adjustments in any ad valorem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 10. To provide moneys for payment of the bonds there is hereby levied upon all of the property in the City a direct annual ad valorem be spread upon the tax rolls and collected with other general property taxes in the City for the the amounts as follows: Year of Tax Levy 1981 1982 1983 Year of Tax Collection 1982 1983 1984 the interest on taxable tax which shall and as part of, years and in Amount I The tax levies shall be irrepealable so long as any of the bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61(3). For the prompt and full payment of the principal and interest on the bonds, as the same respectively become due, the -7- full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the bonds payable therefrom, the defici- ency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 11. To further provide moneys for the prompt and full payment of principal and interest on said bonds,.:the City shall issue and sell definitive improvement bonds or additional temporary improvement bonds, at or prior to the maturity date of the bonds issued hereunder, in such amounts as are needed to pay the principal and interest then due on said bonds after the application of the assessments and taxes collected, and the appropriation of such other municipal funds as are properly available for such purpose. The Council hereby finds, determines and declares that the estimated collections of special assessments and taxes to be received before the maturity date of said bonds, together with the proceeds of any definitive improvement bonds or additional temporary improvement bonds to be issued at or before said maturity date, and other revenues pledged for the payment of said bonds and the interest thereon will equal at least 5% in excess of the principal and interest requirements of said bonds as the same become due. 12. The City Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Washington County, Minnesota, together with such other infor- mation as he shall require, and to obtain from the Auditor his certificate that the bonds have been entered in the Auditor's Bond Register. 13. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the bonds, and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records of the City relating to the bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. -8- The motion for the adoption of the foregoing resolution was duly seconded by member J. M' ,hael McAI l i ster and upon vote being taken thereon, the following voted in favor thereof: Mayor Marvin LaValle, Councilmembers: Larry Irsfeld, J. flichael'McAllister, Howard Schletty and the following voted against the same: Councilmember Deane Vail (absent) Whereupon said resolution was declared duly passed and adopted. -9- STATE OF MINNESOTA eoUNTY OF WASHINGTON CITY OF HUGO I, the undersigned, being the duly qualified and acting Clork-Treasurer of the City of Hugo, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to awarding the sale of $170,000 General Obligation Temporary Improvement Bonds of 1981 of said City. WITNESS my hand and the seal of said City this 1'_%.4v day of 1981. (SEAL) -10- City Clerk -Treasurer I STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF HUGO I, the undersigned, being the duly qualified and acting Clerk -Treasurer of the City of Hugo, Minnesota, DO + HEREBY CERTIFY that I have compared the attached andforegoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to awarding the sale of $170,000 General Obligation Temporary Improvement Bonds of 1981 of said City. WITNESS my hand and the seal of said City this day of/ , 1981. (SEAL) -10- GJ&y Clerk -Treasury`