HomeMy WebLinkAbout1974.03.18 RESO 1974-05EXTRACT OF MINUTES OF MEETING OF THE
CI`T'Y COUNCIL OF THE CITY
OF HUGO, MINNESOTA
HELD: MARCH 18, 1974
Pursuant to due call and notice thereof, a special
meeting of the City Council of the City of Hugo, Washington
County, Minnesota, was duly held at the City Hall in said
City on the 18th day of March, 1974, at 8:00 o'clock P.M.,
C.D.S.T., for the purpose of opening and considering bids
for and awarding the sale of $56,000 General Obligation
Fire Equipment Bonds of 1974 of said City, as one of two bond
issues of the City offered for sale as one package and
totaling $906,000.
The following members were present: Mayor Crever,
Councilmen: Martin, LaValle, Lease, Leroux
and the following were absent: none
The Clerk presented affidvvits showing publication
of notice of call for bids on $56,000 General Obligation
Fire Equipment Bonds of 1974 and $850,000 General Obligation
Sanitary Sewer Improvement Bonds of 1974 of the City, for which
bids were to be received at this meeting, in accordance with
the resolution adopted by the City.Council on February 11, 1974.
Said affidavits were examined, found to comply with the provi-
sions of Minnesota Statutes, Chapter 475, and were approved
and ordered placed on file.
The Council proceeded to receive and open bids for
the sale of said bonds. The following bids were received:
Bidder Interest Rate Net Interest Cost
See page 1.1.
s
C
B I D T A B U L A T I O N
$906,000 GENERAL OBLIGATION BONDS
CITY OF HUGO, MINNESOTA
SALE: MONDAY, MAkCH 18, 1974
AWARD: ALLISON-14ILLIAMS COMPANY, MINNEAPOLIS, MINNESOTA
& ASSOCIATES
Moody's Rating: Baa -1
NET INTEREST COST
VE OF BIDDER RATES YEARS & RATE PRICE
.LISON-WILLIAMS COMPANY
4.80%
1976/80
$646,518.54
in, Kalman & Quail, Inc.
5.00%
1981/84
per, Jaffray & Hopwood Inc.
5.20%
1985/86
5.5438%
!inneapolis, Minnesota
5.40%
1987/89
ran & Moody, Inc.
5.50%
1990/91
t. Paul, Minnesota
5.60%
1992/93
ine, Webber, Jackson & Curtis
5.70%
1994/95
J. Prescott & Company
inneapolis, Minnesota
RST NATIONAL BANK OF ST. PAUL
5.20%
1976/85
$654,883.90
t. Paul, Minnesota
5.30%
1986
rst National Bank of Minneapolis
5.40%
1987
5.6155%
ller & Schroeder Municipals Inc.
5.50%
1988/89
ore, Juran & Company
5.60%
1990/91
inneapolis, Minnesota
5.70%
1992/93
5.75%
1994/95
EHLERS AND ASSOCIATES, INC.
Financial Consultants to the City
First National -Soo Line Concourse
507 Marquette Avenue
Minneapolis, Minnesota 55402
Telephone: 339-8291
Area Code: 612
$891,875.46
$896,099.60
The net effective average rate of interest of the
$56,000 General Ou 1 igation Yre Equipment Bonds of 1974,
after allocating to this bond issue a pro rata share of
the discount for the two bond issues, is -E-? %.
The Council then proceeded to consider such bids.
After the bids had been co;i�idered and discussed, member
aVallP_ introduced the following resolution
and moved its adoption:
RESOLU'i'ION ACCEPTING BID ON SALE OF
$56,000 GENERAL- OBLIGATION FIRE EQUIPMENT
I;ONDS OF 1974
PROVIDING FOR THEIR ISSUANCE AND LEVYING
A TAX � J)h THE PAYMENT THEREOF
BE IT RESOLVED by the Council of the City of
Hugo, Minnesota, a:, follows:
1. That the bid of Company
to purchase $56,001) General Obligation Fire Equipment
Bonds of 1974 of the City, in accordance with the notice
of bond sale, at the rates of interest hereinafter set
forth, and to pay therefor the sum of $ S5,117 90
is hereby found, determined and declared to be the most
favorable bid received, and is hereby accepted and said.
bonds are herEby awarded to said bidder. The City Clerk
is directed to retain the deposit of said bidder and to
forthwith return the good faith checks or drafts to the
unsuccessful bidders. Said bonds shall be payable a:; to
principal and interest at the American National Bank and
Tr st Company, in St. Paul. Minnesota __ , or
any succes_or Paying Agent duly appointed by the City.
2. The $56,000 negotiable coupon general obliga-
tion bonds of the City shall be dated April 1, 1974 and shall
be issued forthwith. Said bonds shall be 12 in number and
numbered from 1 to 1_, both inclusive, in the denomination
of $ 5,000 each., except for bonds numbered from 1_
to both inclusive, which shall be in the
denomination o 1;000 each. Said bonds shall mature
serially, lowest numbers first, on April 1 in the years and
amounts as follows:
$5,000 in each of the years 1976 to
1985, both inclusive; and
$6,000 in the year 1986.
-2-
3. Said 1)o ;ds shat 1 provide funds for the purchase
of fire equipment or,. tinE; of a tank truck and pumper tanker
(hereinafter ca.11cd t`..E Project) for the City. The total cost
of said Project, inclhc:'ng legal and other professional
charges, publication ali,: printing costs, interest accruing
on money borrowed for the 1'roject before the collection of
taxes levied therefor, and all other costs necessarily incurred
and to be incurrE-,.l from the inception to the completion of the
Project, is estimated to t at least equal to the amount of
the bonds herein .uthorizol.
4. The bona:. of said issue maturing in the years
and bearing the .;eria_i nur .,,ers set forth below shall bear
interest, payak,le Octot,er 1, 1974 and semiannually there-
after on April 1 and C?,,.tober 1 of each year, at the respec-
tive rates per annum �:-..t opposite said maturity years and
serial numbers:
Maturity Years
Serial
Numbers
Interest Rate
1976/80
1 -
25
4.80%
1981/84
26 -
45
5.00%
1985/86
46 -
56
5.20%
5. All bonds of this ssue maty ng in the years
1985 and 1986, (bonds numbered to !! both
inclusive), shall be subject to redemption and prepayment
at the option of the City in inverse order of serial numbers,
on April 1,1984 and on any interest payment date thereafter at
par and accrued interest. Published notice of redemption shall
in each case be given in accordance with law, and at least
thirty days prior mailed notice of redemption shall be given
to the bank where said borids are payable and to the last known
holders, provided that published notice alone shall be effective
without mailed notice. Holders desiring to receive mailed
notice must register their names, addresses and bond numbers
with the City Clerk.
6. The bonds and interest coupons to be issued
hereunder shall be in substantially the following form:
-3-
No.
UNI'fED :
This bo:id is one of an issue in the total principal
amount of $56,000 all of like date and tenor, except as to
serial number, maturity, interest rate and redemption privi-
lege, 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 money for the purchase
of fire equipment consisting of a tank truck and a pumper
tanker for the City and is payable out of the General Obliga-
tion Fire Equipment Bonds of 1974 Fund of the City. This
bond constitutes a general obligation of the City, and to
provide moneys for the prompt and full payment of said principal
and interest when the same become due, the full faith and
credit and taxing powers of said 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 14innesota 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 lair,
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
in its behalf by the printed facsimile signature of its Mayor and the
manual signature of its City Clerk, and by a printed facsimile of its
corporate seal, has caused the interest coupons appurtenant hereto and
the certificate as to opinion of bond counsel on the reverse side hereof
to be executed and authenticated by the facsimile signatures of said
officers, and has caused this bond to be dated as of April 1, 1974.
City Clerk Mayor
—5—
U
(Form of Coupon)
No. $
On the first day of October (April), 19 , unless
the bond described below i.s called for earlier redemption, the
City of Hugo, Washington County, Minnesota, will pay to
bearer at the Ameri n Nation I Rank and Trimt Cnmpany, in rt Paill ,Minnesota
or any successor Paying :gent duly appointed by the City,
the sum shown hereon for interest then due on its General
Obligation Fire Equipment Bond of 1974 No. dated
April 1, 1974.
/s/ Facsimile
City Clerk
M
/s/ Facsimile
Mayor
7. The bonds shall be executed on behalf of the
City by the signature of its Mayor and the signatureof
rovided,
its Clerk and be sealed with the seal of the City; p
that one of such signatures and the seal of onsthe City pertainingythere-
b e printed facsimiles. The interest coupons
lithographed
to shall be executed by t},? printed, engraved
facsimile signatures of tjL�' Mayor and Clerk.
8. The said bonds when so preparedand
executedthereof
shall be delivered by the reasurer to the p
t of the pur,ch-3_ e price, and the said purchaser
upon receipt er application thereof.
shall not be obliged to see to the prop
9. There is hereby created a special fund to be
designated "General ObligationFire
Elghep intity Boedsuof 1974
Fund" to be held and administer Y
separate and apart from all other funds of the City. Said
specified
fund shall be maintained in the manner herein
until all of the bands herein
aid. authorized
fundand
thereinterest
be
thereon have been fully pthe
maintained two separate accounts, to,be esignttedrespectively,
as
"Capital Account and the "Sinking
FundThe proceeds of the sale of the bonds herein authorized, less
ss any
any premiu�i and accrued �.nterest received thereon, and less
900,
amount paid for said bonds in excess of $5 shall be
capitalized interest in the amount of $ 2thereshall
credited to the Capital Account, from whit. and all other
be paid all costs and expenses of said Project,
costs incurred and to e incurred
aparposethe mprovided thaoneys in t
account shall be usedcessary
for the bond proceeds may saidbonds dueprior
domalso
used
the
toethenanticipated
ne
to pay interest
date of commencemenereb the
pledgedcollection
theretshallhbeecredited
levied. There is h Y
to the Sinking Fund Account, all collections of taxes herein
covenanted to -be levied,a pro rata share of all accrued all
interest received upon delivery of the two setsof
bonds,
funds paid for the bonds in excess of $54,900, capitalized
funds
interest in the amount of $ 779
remaining in said Capital Account after completion of the
king Fund
Project and payment of the costs ther�eandninterest
other
Account shall be used solely to pay p incipalgeneral erest-
on the bonds issued hereunder -and any City hereafterissued by the City and made
tion bonds of the account
payable from s
-7-
I
Any (a) earnings or net profits derived from invest-
ment or deposit of ';hc proceeds of said bonds not expended
for said Project, (b) accrued interest and premium received
upon the sale of said bonds, and (c) any other bond proceeds
not expended for :said Project will be applied against interest
and/or principal ,iue on said bonds within three years of their
date of issue.
10. To provide moneys for the payment of said
principal and interest there is hereby levied upon all of
the taxable property in the City a direct annual ad valorem
tax which shall be spread upon the tax rolls and collected
with and as part of, other general property taxes in said
City for the years and in the amounts as follows:
Year of Tax
Levy
1974
1975
1976
1977
1978
1979
1980
1981
1982
19P3
1984
Year of Tax
Collection
1975
1976.
1977
1978
1979
1980
1981
1982
1983
1984
1985
Amount
See Page 8.1
Said tax levies are such that; if collected in full
they, together with estimated collections of other revenues
pledged for the payment of said bonds, will produce at least
five per in excess of the amount needed to meet when
due the principal and interest payments on the bonds.
Said tax levies shall be irrepealable so long as
any of said bonds are outstanding and unpaid, provided that
the City reserves the right and powerto reduce the levies
in the manner and to the extent permitted by Sec. 475.61(3)
M.S.A.
For the prompt and full payment of the principal
of and interest on said bonds, as the same respectively
become due, the full faith, credit and taxing powers of
the City shall be and are hereby irrevocably pledged.
S
0.
COMPUTATION OF TAX LEVY CNJ:
$56.V000 G.O. FIRE EnUI PtIENT RONnS
-CITY OF HUGO, PIT NNESOTA
LEVY
COLLECT
AlvTPJT
A19OtPJT + 50,
TAX
19711
1975
57,772.00
$8,160
$8,200
1975
1976
$7,5?2.00
$7,909
$7,000
1976
1977
s�,292.nn
$7,656
$7,700
1977
1978
$7, 052.00
$7,11011
$7, 400
1978
1979
$6,812.00
$7,152
$7,200
1979
1980
$6,572.00
$6,900
$51000
1980
1981
$61"�?2.00
$6163q
$6,700
1981
1982
$6,072.00
$6,375
$6,4n0
1982
1983
$5,P22.00
$6,113
$6,200
1983
1984
$5,572.00
$5,850
$5,900
19811
1985
$6,312.00
$6,627
$6,700
$73,112.00 $77,200
NOTE: BOND PROCEEDS (CAOITALI7ED INTEREST) OF $2,772.00
1-11 LL BE USED TO PAY $2,772.00 OF INTEREST PAYVENTS DUE
10-1-1974, 4-1-1975,
RO(flDI NG BY COWUTER MAY CAUSE DIFFERENCE OF A Fml
CENTS 1.1HEN CHECKING COLUttJ TOTALS WITH TOTALS SHOI•IN.
PP0GP,NI CO°YPIGHT RY EHLERS MID ASSOCIATES, INC., 3-3-69, REV. 3-111-73, 2-27-74
11. The City Clerk is hereby directed to file
a certified copy ()f this resolution with the County Auditor
of Washington County, Minnesota, together with such other infor-
mation as he shail require, and to obtain from said Auditor
his certificate that laic: bonds have been entered in the said
Auditor's Bond Register, and that the tax levy required by
law has been made.
12. The officers of the City are hereby author-
ized and directed to prepare and furnish to the purchaser
of said bonds, and to the attorneys approving the legality
of the issuance there,)f, certified copies of all proceedings
and records of the City relating to said bonds and to the
financial condition a: d 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
said 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, in-
cluding any heretofore furnished, shall be deemed represen-
tations of the City as to the facts recited therein.
The motion for the adoption of the foregoing
resolution was duly seconded by member Martin
and upon vote being taken thereon, the following voted in
favor thereof: Crever, Martin, LaValle, Lease, Leroux
and the following voted against the same: none
Whereupon said resolution was declared duly
passed and adopted.
f
f
H
11. The City Clerk is hereby directed to file
a certified copy ()f this resolution with the County Auditor
of Washington County, Minnesota, together with such other infor-
mation as he shail require, and to obtain from said Auditor
his certificate that laic: bonds have been entered in the said
Auditor's Bond Register, and that the tax levy required by
law has been made.
12. The officers of the City are hereby author-
ized and directed to prepare and furnish to the purchaser
of said bonds, and to the attorneys approving the legality
of the issuance there,)f, certified copies of all proceedings
and records of the City relating to said bonds and to the
financial condition a: d 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
said 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, in-
cluding any heretofore furnished, shall be deemed represen-
tations of the City as to the facts recited therein.
The motion for the adoption of the foregoing
resolution was duly seconded by member Martin
and upon vote being taken thereon, the following voted in
favor thereof: Crever, Martin, LaValle, Lease, Leroux
and the following voted against the same: none
Whereupon said resolution was declared duly
passed and adopted.
4e
STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I. the undersigned, being the duly qualified and
acting Clerk of the City of Hugo, Minnesota, DO
HEREBY CERTIFY that I Have compared the attached and fore-
going 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 the opening and
considering of bids for, and awarding the sale of $56,000
General Obligation Fire Equipment Bonds of 1974 of said City.
WITNESS my hand and the seal of said City this lRth
day of Ida rr h , 1974.
(SEAL)
i y Clerk