HomeMy WebLinkAbout6731-6732 (Res.)147`
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RESOLUTION NO. 6731
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND
DETAILS AND PROVIDING FOR THE PAYMENT OF $885,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1980.
BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, as
follows:
Section 1. Authorization and Sale.
1,01 This (puff-: it by a resolution adopted November 6 1979, authorized the issuance and
public sale of $885,000 General Obligation Improvenent Bonds of 1980 of the City, to finance
the cost of the local improvements designated in Section 1 of said resolution. Said resolution
is incorporated herein by reference.
1.02 Notice of sale of the Bonds has been duly published, and the Council, having
examined and considered all bids received pursuant to the published notice, does hereby find
and determine that the most favorable bid re eived is that of The First National Bank, of
St. Paul, Minnesota, and associates to purchase the Bonds at aprietof $8further
she 0t0�0 lus
accrued interest on all Bonds to the day of delivery and paymentic
and
conditions hereinafter set forth.
1.03 The sale of the Bonds is hereby awarded to said bidder, and the Mayor and the
City Clerk are hereby authorized and directed on behalf of the City to execute a contract
for the sale of the Bonds in accordance with the terms of said bid. The good faith check
of the successful bidder shall be retained by the City Treasurer until the Bonds have gear
delivered and the purchase price paid. The good faith checks of other bidders shall be
returned to then forthwith.
Section 2. Bond Terre, Execution and Delivery.
2.01 The Bonds shall be designated General Obligation Improvement Bonds of 1980, shall
be dated January 1, 1980, shall be issued in the denomination of $5,000 each, numbered serially
from 1 to 177, inclusive, shall mature serially on February 1 in the respective years and amounts
stated belay, and shall bear interest from date of issue until paid or duly called for re-
demption at the respective annual rates set forth opposite such years and amounts, as follows:
Year Amount Rate
Year Mount Rate
1982 $ 55,000 6.40% 1988 $ 55,000 6.407
1983 55,000 6.407, 1989 55,000 6.407,
1984 55,000 6.407, 1990 55,000 6.40%
1985 55,000 6.407 1991 55,000 6.45%
1986 55,000 6.40% 1992 335,000 6.50%
1987 55,000 6.407,
The maturities of the Bonds, toga thewi rth eqe uirements ities of all other esnofsall Statutes,
to t� general
obligation bonds of the City,eq
2.02 Bonds maturing in the years 1982 through 1991 shall not be subject to redemption
prior to maturity, but Bonds maturing on February 1, 1992, shall be subject to redemption and
prepayment at the option of the city, in inverse order of serial numbers, on February 1, 1990
and any interest payment date thereafter at a price equal to the principal amount thereof and
accused interest to the date of redemption. At least thirty days prior to the date set for
redemption of any Bond prior to its stated maturity date, the City Clerk shall cause notice of
the call for redemption thereof to be published in a daily or weekly periodical published in
a Minnesota city of the first class, or its metropolitan area, which circulates throughout the
state and furnishes financial news as a part of its service, and mailed to the bank at which
principal of and intrest on the Bonds are then payable and to the holder thereof, if know to
the City Clerk,but no defect in or failure to give such mailed notice of redemption shall
affect the validity of proceedings for the redemption of any Bond. The City Clerk is hereby
authorized and directed to maintain a register of the mores and addresses of the holders
of prepayable Bonds who desire to register the serial numbers of their Bonds with him for the
purpose of receiving such mailed notice.
2.03 The interest on the Bonds shall be payable semiannually on each February 1 and
August 1, commencing on August 1, 1980. The principal of and unrest on the Bonds be
payable at The First National Bank, St. Paul, Minnesota, which is designated as at or in the event of its resignation, removal or incapauility of acting as paying agent,
office of such successor paying agent as may be appointed by the Council
2.04 The Bonds, appurtenant interest coupons and certification of legal opinion
shall be substantially the following form:
(continued on page 148)
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RESOLUIICN NO. 6731 - continued
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF STILIWATER
GENERAL OBLIGATION IMPROVEMENT BOND OF 1980
No $5,000
R Wd ALL MEN BY THESE PRESENTS that the City of Stillwater, a duly organized and existing
mmicipal corporation of the Cbumty of Washington, State of Minnesota, acknowledges itself to
be indebted and for value received prcadses to pay to bearer upon presentation and surrender of
this bond, the sum of FIVE THOUSAND DOLLARS on the 1st day of February, 19 , or, if this bond is
redeemable as provided below, then on a date prior thereto on which it shall have been duly called
for redemption, and to pay interest on said principal sum at the rate of per cent
( 7,) per anon, from the date hereof until said principal sum is paid, or if this bond is re-
deemable, until it has been duly called for redeuption, payable semiannually on each February 1 and
August 1, contenting August 1, 1980, interest to maturity being payable in accordance with and upon
presentation and surrender of the interest coupons appurtentat hereto. Both principal and interest
are payable at in
Minnesota, in any coin or currency of the United States of America which on their respective dates
of payment is legal tender for payment of public and private debts. For the prompt and full payment
of
axingh powers of the Ciand tyhavebeent as the same and are herrebylYbecalm irrevocablly pledged. , the 1 faith and credit and
This bond is one of an issue in the total principal amount of $885,000, all of like date and
tenor except as to serial amber, maturity date, interest rate and redemption privilege, all issued
for the purpose of financing the construction of local improvements heretofore duly ordered to
be made within the City in accordance with the provisions of Minnesota Statutes, Chapter 429,
and is issued pursuant to and in full conformity with the Constitution and laws of the State of
Minnesota thereunto enabling, and pursuant to resolutions duly adopted by the City Council.
Bonds of this issue maturing in 1991 and earlier years are payable on their respective
stated maturity dates without option of prior payment, but bonds having a stated maturity date in
1992 are subject to redemption and prepayment at the option of the Clty and in inverse order of
serial numbers on February 1, 1990 and any interest payment date thereafter, at par and accrued
interest. At least thirty days prior to the date specified for the redemption of any Bond prior
to its stated maturity date, notice of the call for redemption will be published in a daily or
weekly periodicial published in a Minnesota city of the fist class, or its metropolitan area, which
circulates throughout the state and furnishes financial news as a part of its service, and will be
mailed to the bank at which the Bonds are then payable and to the holder of each Bond to be
redeemed, if know, but no defect in or failure to give such mailed notice of redemption shall
affect the validity of proceedings for the redemption of any Bond. Holders of prepayable Bonds
who desire to receive such notice may register their names and addresses and the serial numbers
of their Bonds with the City Clerk.
IT IS HEREBY CERTIFIED, RECITED, CONVENNAN1IED AND AGREED that all acts, conditions
and things required by the Constitution and laws of the State of Minnesota to be done, to exist,
to happen and to oe performed preliminary to and in the issuance of this bond in order to
make it a valid and binding general obligation of the City in accordance with its tame, have
been done, to exist, have happened and have been perfoned as so 'squired; that prior to the
issuance hereof the City has covenanted and agreed to levy special assessments upon prupeLcy
specially benefited by the local improvements financed by the bonds, and has levied ad valorem
taxes upon all taxable property in the City, which assessments and taxes will be collectible for
the years and in aroumts sufficient to produce sums not less than 5% in excess of the principal
of and interest on the bonds of this issue when due, and has appropriated such special assess-
ments and taxes to the payment of such principal and interest; that if necessary for payment of
such principal and interest, additional ad valorem taxes are required to be levied upon all taxable
property in the City, without limitation as to rate or mount, and that the issuance of this bond
does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of
indebtedness.
IN WITNESS WHEREOF the City of Stillwater, Washington County, Minnesota, by its City Council,
has caused this bond and the interest coupons appurtenants hereto and the certificate appearing on
the reverse side hereof to be executed by the printed facsimile signatures of the Mayor and the
City Clerk, has caused this bond also to be executed by the manual signature of one of aadd officers,
and has caused this bond to be dated as of January 1, 1980.
(Facsimile signature) (Fadsmile signature)
City Clerk Mayor
(Manual signature)
Fls
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RESOLUTION NO. 6731 - continued
(Form of Coupon)
Unless the bond described below is subject to and has been duly called for earlier redemption,
on the 1st day of August (February), 19 , the City of Stillwater, Washington County, Minnesota,
will pay to bearer at in , Minnesota, the amount shown
hereon in lawful money of the United States of America, for the interest then due on its General
Obligation Improvement Bond of 1980 dated as of January 1, 1980, N0.
(Fascimile signature) (Facsimile signature)
City Clerk Mayor
(Form of certificate to be printed on the reverse side of each bond,
following a full copy of the legal opinion)
We certify that the above is a full, true and correct copy of the legal opinion rendered
by bond counsel on the issue of bonds of the City of Stillwater, Minnesota, which includes the
within bond, dated as of the date of delivery of and payment for the bonds.
(Facsimile signature) (Facsimile signature)
City Clerk Mayor
2.05 The Bonds shall be prepared under the direction of the City Clerk and shall be
executed on behalf of the City by the printed facsimile signatures of the Mayor and the City
Clerk, and by the manual signature of either of said officers. The interest coupons attached
to each Bond and the legal opinion certificate shall be executed and authenticated by the
printed facsimile signatures of the Mayor and the City Clerk. When the Bonds have been so
executed and authenticated, they shall be delivered by the City Treasurer to the purchaser
thereof upon payment of the purchase price in accordance with the contract of sale hereto-
fore made and executed, and said purchaser shall not be obligated to see to the application
of the purchase price.
Section 3. 1980 Improvement Construction Fund. There is hereby established on the official
books and records of the City a 1990 Improvement Construction._ Fuand and an account of such Fund
for each improvement financed by the Bonds, and the Clerk shall continue to maintain such Fund
and each account until payment of all costs and expenses incurred in construction of the
improvemet for which it is established. To each account there shall be credited from the pro-
ceeds of the Bends, an amount equal to the estimated cost of the improvement for which the account
is established, less such amount as was established to be necessary to pay interest incurred
during construction: and such other funds as nay from time to time be appropriated by this
Council; and from said account there shall be paid all costs and exposes of said improvement.
There shall also be credited to each account all special assessments and taxes collected with
respect to the improvement for wluth it is established until all costs of said improvement have
been fully paid. After payment of all costs incurred with respect to each improvement, the
accaat for it shall be discontinued and any Bond proceeds remaining therein may be transferred
to the other funds or accounts established for construction of other inprovmers instituted
pursuant to Minnesota Statutes, Chapter 429. All special assessments and taxes on hand in each
account when terminated or thereafter received, and any Bond proceeds not so transferred, shall
be credited to the 1980 Improvement Bond Account in the Sinking fiord of the City.
Section 4. 1980 Improvement Bond Account. The Bonds to be issued shall be payable from a
separate and special 1980 Improvement Bond Account of the Sinking Fund of the City, which Account
the City agrees to maintain until said Bonds and the interest thereon have been paid in full. If
the money in said Account should at any time be insufficient to pay principal and interest due
on the Bands, such amounts shall be paid from moneys on hand in said Sinking Fiend, or if necessary
from the General Fund of the City, which tall be reimbursed therefor when sufficient money be-
comes available in said Account. The moneys on hand in said Account from time to time shall be
used only to pay the principal of and interest on the Bonds. Into said Account shall be paid such
amount of the proceeds of the Bonds as is estimated to be necessary to pay interest on the bonds
during the construction period ($61,430.00), all special assessments and taxes collected with
respect to each improvement financed by the Bonds after the costs of said inprovemers have been
paid in full, and any excess bond proceeds, as provided in Section 3.
Section 5. Special Assessments. The City hereby covenants and agrees that, for the payment
of the cost of improvements financed by the Bonds, the City will do and perform all acts and
things necessary for the final and valid levy of special assessments in an amount not less than
20 of the cost of each improvement financed by the Bonds. It is presently estimated assessments
will be levied in the aggregate amount of $870,787. The principal of said assessments shall be
payable in the annual installments, with interest on unpaid installments thereof fret time to
time at the rate of not less than 7.5% per annun. It is presently estimated that the principal
and interest on such special assessments will be collected in the following years and amounts:
Year
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
Amount Year Amount
$137,640 1991 $54,617
116,989 1992 52,276
112,799 1993 49,935
108,608 1994 47,595
104,418 1995 45,254
100,228 1996 42,913
96,038 1997 40,572
91,847 1998 38,232
87,657 1999 35,891
83,464 2000 33,540
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RESOLUTION NO. 6731 - continued
In the event that any such assessment shall at any time be held invalid with respect to any
lot or tract of land, due to any error, defect or irregularityin n action oactionsor rrproceeding
taken or to be taken by the City or by this Council or by any of the
of the City, either in the making of such assessment or in the perfotiance of any condition
precedent thereto, the City hereby covenants and agrees that it will fortlarith do all such
further things and take all such further proceedings as shall be required by law to nuke
such assessment valid and binding lien upon said property.
Section 6. Pledge of Taxing Powers. For the prcapt and full paymenof uth fthe prin ipal
of and interest on said Bonds as such payments respectively became due,
or ah
and credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged.
In order to produced sums for the payment of the principal of and interest on the Bonds which,
together with Bond proceeds appropriated to pay interest coming due during the construction
period and the collections of the assessments and interest thereon, are not less than 57, in
excess of such principal and interest when due, there is hereby levied up n all
ttx ablestaxable prope�
in the City, a direct, annual, ad valorem tax which shall be spread upon the
the years in and in the amounts set forth below, and collected with and as a part of other general
taxes of the City in the respective ensuring collection years:
Collection
Year Collection Amount � Year Amount
Year Year
1980 1981 $ 00 1986 1987 $ 00
1981 1982 1987 1988 00
00
1982 1983 1989 1990 00
1983 1984 1990 1991 290,019
1984 1985 00
1985 1986
Said tax shall be irrepealable as long as any of said Bonds are outstanding and unpaid; provided,
that the City reserves the right and pager to reduce the levies in the manner and to the extent
permitted by Minnesota Statutes, Section 475.61.
Section 7. Defeasance. When all of the Bonds issued and all coupons appertaining there-
to have been discharged as provided in this section, all pledges, covenants and other rights
granted by this resolution to the holders of the Bonds shall The Cit axle due on adischarnyits
date
obligations with respect to any Bonds and coupons appertaining thane
by depositing with the payment agent on or before that date a sum sufficient for the payment there-
of in full; or, if any Bond or coupon should not be paid when due, it may nevertheless be dis-
charged by depositing with the paying agent a sum sufficient for the payment thereof in full with
interest accrued to the date of such deposit. The City nay also discharge it obl;glmtions with
respect to any prepayable Bonds according b their terms, by depositing with the paying agent
on or before that date an amount equal to the principal, interest and redemption premium, if any,
which are then due, provided that notice of such redemption has been duly given as provided:hesein.
the City may also at any time discharge its obligations with respect to any Bonds, subject to the
provisions of law now or hereafter authorizing and regulating such action, by depositing irrevoc-
ably in escrow with a bank qualified by law as an escrow agent for this purpose, cash or
securities which are authorized by lea to be so deposited, bearing interest payable at such time
and at such rates and maturing on such dates as shall be required to pay all principal, interest
and redemption premdnms to become due thereon to maturity or said redemption date.
Section 8. Registratation of Bonds. The City Clerk is hereby authorized and directed
to file a certified copy of this resolution with the County Auditor of Washington County together
with such additional information as he shall require, and to obtain Pram said County Auditor a
his
ond register,
iforethe that
the Bonds have been dulpayment thereof has been levied and entered filed filed asbrequired by law.
Section that the tax re-
quiredSecticn 9. Authentication of Transcript. The officers of the City and the County Auditor
are hereby authorized and directed to prepare and furnish to the purchasers of theme and to
the attorneys approving the legality thereof certified copies of all proceedings
cords
relating to the Bonds and such other affidavits, certificates and information as may be required
to show the facts relating to the legality and marketability of the Bonds, as the sale app�
from
the books and records in their custody and control or as otherwise known to them, nduch
certified copies, affidvaits and certificates, including any heretofore furnished, shall be deemed
representations of the City as to the correctness of all statements contained therein.
Section 10. Arbitrage.
10.01. The City covenants and agrees with the holders from time to time of the Bonds
herein authorized, that it will not take, or permit to be taken by any of its officers, employees
or agents, any action which would cause the interest payable on the Bonds to became subject to
taxation under the United States Internal Revenue Code: and that it will take, or it will
cause its officers, employees or agents to take, all affirmative actions within its powers which
may be necessary to insure that such interest will not become subject to taxation under the Internal Revenue Code. Internal Revenue Code as used herein includes the Code and all regulations,
amended regulations and proposed regulations issued thereunder, as now existing or as hereafter
wended or proposed.
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RFS0LUFIQd NO. 6731 - continued
10.02. The Mayor and the City Clerk being the officers of the City charged with
the responsiblity for issuing the Bonds pursuant to this resolution, are authorized and
directed to execute and deliver to the purchaser a certification in order to satisfy the
provisions of Section 103 (c) of the Internal Revenue Cade and the regulations, existing
and proposed, promulgated thereunder.
Adopted by the Council this 4th day of December, 1979
Published: December 13, 1979
Mayor
Attest: /(-) �
City Clerk
RESOLUTION NO. 6732
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND
DETAILS AND PROVIDING FOR THE PAYMENT OF $300,000 GENERAL OBLIGATION CORPORATE
PURPOSE BONDS OF 1980.
BE TI RESOLVED by the City Council of the City of Stillwater, Minnesota, as follows:
Section 1. Authorization and Sale.
1.01. This Council, by a resolution adopted Noveaber 6, 1979, authorized the issuance
and public sale of $300,000 General Obligation Corporate Purpose Bonds of 1980 of the City,
pursuant to Section 200 of the City Charter and Minnesota Statutes, Sections 475.52 and 475.58.
Said resolution is incorporated herein by reference.
1.02. Notice of sale of the Bonds has been duly published, and the Council, having
examined and considered all bids received pursuant to the published notice, does hereby find and
detetmine that the most favorable bid received is that of The First National Bank, of St. Paul,
Minnesota,
all t
on all Bonds to the dayand s of delivery and payment, , to purchase the Bonds at
the further terms and 003.00 pconditions hlus accrued ereinafter
set set forth.
1.03. The sale of the Bonds is hereby awarded to said bidder, and the Mayor and Clerk
are hereby authorized and directed on behalf of the City to execute a contract for the sale of
the Bonds in accordance with the terns of said bid. The good faith check to the successful
bidder shall be retained by the Treasurer until the Bonds have been delivered and the purchase
price paid. The good faith checks of other bidders shall be returned to them forhiwith.
Section 2. Bond Terms, Execution and Delivery.
2.01. The Bonds shall be designated General Obligation Corporate Purpose Bonds of 1980,
shall be dated January 1, 1980, shall be issued in the denomination of $5,000 each, numbered
serially from' to 60, inclusive, shall mature serially on February 1 in the respective years and
amounts stated below, and shall hear interest from date of issue until paid, at the respective
annual rates set forth opposite such years and anounts, as follows:
Year
Mount pate
1982 $10,000 6.407,
1983 35,000 6.40M
1984 40,000 6.407,
1985 70,000 6.40%
1986 ,000 6.40%
1987 755,000 6.40%
(continued on page 152)
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RESOLUTION NO. 6732-- continued
The maturities of the Bonds, together with the ofoalall
Sothereoutstanding standin 475.54. general
obligation bonds of the City, requirements
All Bonds will be without right of prior redemption.
2.02. The interest on the Bonds shall be payable efsemiannuaand tallylt on the Bonds on each February
shall
and August 1, coomencixng on August 1, 1980. The principal
be payable at The First National Bank of Saint Paul, in St. Paul, Minnesota, which is designated
as paying agent, or in the event of its resignation, removal of incapability of acting as
paying agent, a the office of such successor paying agent as may be appointed by the Council.
2.04 The Bonds appurtenant interest coupons and certification of legal opinion shall
be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF PIIR1ESOTA
COUNTY OF WASBIN^ON
CITY OF STTIJ}IAIER
GENERAL OBLIGATION CORPORATE PURPOSE BOND OF 1980
No. $5,000
IQNZW ALL PEN BY TBESE PRESEPTIS that the City of Stillwater, a duly organized and existing
mmicipal corporation of the County of Washington, State of Minnesota, acknowledges itself to be
indebted and for value recieved promises to pay to bearer upon presentation and surrender of this
bond, the sun of FIVE THOUSAND DOLLARS on the 1st day of February, 19 , without option of prior
payment, and to pay interest on said principal sum at the rate of percent ( %)
per anima from the date hereof until said principal sum is paid, payable s.nda.muaxly on each
February 1 and August 1, uunencing August 1, 1980, interest to maturity being payable in accordance
with and upon presentation and surrender of the interest coupons appurtenant hereto. Both principal
and interest are payable at Minnesota, in any coin
or currency of the United States of America which on their respective dates of payment is legal
tender for payment of public and private debts. 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.
This bond is one of an issue in the total principal amount of $300,000, all of like date
and tenor except as to serial amber, maturity date and interest rate, all issued for the purpose
of financing the acquisition and betterment of public buildings and equipment, and is issued pur-
suant to ofsaidsaid City thereuntin full o enabling. and purswith the uion ant ttoressoolutionsof adulyte of adopted by the ota and
tythe
Council.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota and the Charter of said City to
be done, to exist, to happen and to be performed preliminary to and in the issuance of this bond
in order to make it a valid and binding g general obligation of the City in accordance with its
terns, have been done, do exist, have happened and have been performed as so required; that
prior to the issuance hereof the City has levied ad valorem taxes on all taxable property within
its corporate limits which are collectible for the years and in amounts sufficient to produce
sums not less than S% in excess of the principal of and interest on the bonds of this issue when
due, and has appnpriated such taxes to the payment of such principal and interest; that if necessary
for payment of such principal and interest, additional ad valorem taw" are required to be levied
upon all such property,without limitation as to rate or amount; and that the issuance of this bond
does not cause the indebtedness of the City to exceed any constitutional statutory or charter
limitation of indebtedness.
IN WITNESS WHEREOF the City of Stillwater, Washington County, Minnesota, by its City Council,
has caused this bond and the interest coupons appurtenant hereto and the certificate appearing on
the reverse side hereof to be executed by the printed facsimile signatures of the Mayor and the
City Clerk, has caused this bond also to be executed by the manual signature of one of said officers,
and has caused this bond to be dated as of January 1, 1980.
(Facsindle signature) (Facsimile signature)
City Clerk Mayor
(Manual signature)
(continued on page 153)
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04 RESOLUTION NO. 6732 - continued
No.
(Form of Coupon)
On the 1st day of August (February),19 , the City of Stillwater, Washington County,
Minnesota, will pay to bearer at in , Minnesota, the
amomt shorn hereon in lawful money of the United States ofAmerica, for the interest then
due on its General Obligation Corporate Purpose Bond of 1980, dated as of January 1, 1980,
No.
(Facsimile signature) (Facsimile signature)
City Clerk Mayor
(Form of certificate to be printed on the reverse side of each
bond, following a full copy of the legal opinion)
We certify that the above is a full, true and correct copy of the legal opinion rendered
by bond coaisel on the issue of bonds of the City of Stillwater, Minnesota, which includes the
within bond, dated as of the date of delivery of and payment for the bonds.
(Facsimile signature) (Facsimile signature)
City Clerk Mayor
2d o. ehe Bonds shall be prepared printedfacsimilefacsimilthe e signatures ofction of the City the Mayorand sluill be
andthe City
Clerk,
and behalf of the City by pr o
Clerk, and by the manual signature of either of said officers. The interest coupons attached
to each bond and the legal opinion certificate shall be executed and authenticated by the
printed facsimile signatures of the Mayor and the City Clerk. When the bonds have been so
executed and authenticated, they sho21 be delivered by the Treasurer to the purchaser thereof
upon paym ent of the purchase price in accordance with the contract of sale heretofore made and
executed, and said purchaser shall not be obligated to see to the application of the purchase price.
Section 3. 1980 Capital FSryenditures Fuld.
There is hereby established on the official books and records of the City a "1980 Capital Expend-
itures Fund' of the City, and the Clerk shall continue to maintain such Fund until all costs and
expenses incurred in construction of the public buildings and the acquisition of the new equipment
to be financed by the bonds have been paid. To said find there shall be credited $295,000 of the
proceeds of the bonds and from said hind there shall be paid all costs and expenses of said public
buildings and equipment. After payment of di costs incurred with respect to said public buildings
and equipment the Find shall be discontinued and any bond proceeds remaining therein shall be
transferred to the bond account referred to in Section 4.
Section 4. General Obligation Corporate Purpose Bond Account. The bonds shall be payable
fun a separate 1980 General Obligation •• ..rate Purpose Bond Account of the Sinking Find of the
City, which Account the City agrees to maintain until the Bonds have been paid in full. If the
money in said Account or Sinking Flail should at any time be insufficient to pay principal and
interest ;is on the Bonds, such amounts shall be paid from the General Fund of the City, which
stall be reimbursed therefor when sufficient money becomes available in said Account or Sinking
Fund. The moneys on hand in said Account from tine to time shall be used only to pay the principal
of and interest on the Bonds and such other general obligation bonds of the City as are made pay-
able therefrom by the Cuty Council. Into said Account shall be paid all Bond proceeds i> thereto.
of $295,000, all taxes levied pursuant to Section 5, and all other moneys appropriated
Section 5. Pledge of Taxing Powers. The full faith and credit and taxing powers of the
City are hereby irrevocably pledged to the payment of the Bonds and the interest thereon when
due. For the purpose of producing sums which will be not less than 5% in excess of the
e principal
of and interest on the Bonds when due, there is hereby levied upon all taxable prop rty
the corporate limits of the City, a direct, annual, ad valorem tax to be spread upon the tax rolls
of the City in each of the years set forth below, in the amount set forth opposite such years,
to be collected in the respective succeeding collection years:
Levy Year Collection Year Acouht
1980 1981 $ 52,501
1981 1982 56,238
1982 1983 59,136
1983 1984 87,948
1984 1985 83,244
1985 1986 83,790
(continued on page 154)
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RESOLUTION NO. 6732 - continued
Said tax 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.
Section 6. Defeasance. When all of the Bonds issued and all coupons appertaining there-
to have been discharged as provided in this section, all pledges, covenants and other rights
granted by this resolution to the holders of the bonds shall cease. The City may discharge its
obligations with respect to any bonds and coupons appertaining thereto which are due on any date
by depositing with the paying agent on or before that date a sun sufficient for the payment
thereof in full; or, if any Bond or coupon should not be paid when due, it may nevertheless be
discharged by depositing with the paying agent a sum sufficient for the payment thereof in full
with interest accrued to the date of such deposit. The City may also at any time discharge its
obligations with respect to any bonds, subject to the provisions of law now or hereafter authorizing
and regulating, such action, by depositing irrevocably in escrow, with a bank qualified by law as an
escrow agent for this purpose, cash or securities which are authorized by law to be so deposited,
bearing interest payable at such times and at such rates and maturing on such dates as shall be re-
quired to pay 11 principal interest to become due thereon to maturity.
Section 7. Registration of Bonds. The Clerk is hereby authorized and directed to file a
certified copy of this resolution with the County Auditor of Washington County, together with such
additional information as he shall require, and to obtain fran said County Auditor a certificate that
the bonds have been duly entered upon his bond register and that the tax required for the payment
thereof has been levied and filed as required by law.
Section 8. Authentication of Transcript. The officers of the City and the County Auditor
are hereby authorized and directed to prepare and furnish to the purchasers of the bonds and to the
attorneys approving the legality thereof, certified copies of all proceedings and records relating
to the bonds and such other affidavits, certificates and information as may be required to sthe
facts relating to the legality and markfrom
the
books
etability of the Bonds, as the same appear such
and records in their custody and control or as otbewis.,nwn to osthe,,and sandlall ll deemed rtifiednta-
certified
copies, affidavits and certificates, including any heretofore
representa-
tions of the City as to the correctness of all 3ateaents contained therein.
Section 9. Arbitrage.
9.01. The City covenants and agrees with the holders from time to time of the bonds herein
authorized, that it will not take, or permit to be taken by any of its officers, employees or
agents, any action which could cause the interest payment on the Bonds to became subject to taxation
under the United States Internal Revenue Code; and it will take, or it wll cause its officers,
eployees or agents to take, all affirmative actions within its powers which may be necessary to
insurance that such interest will not become subject to taxation under the Internal Revere Code.
Internal Revenue Code as used herein includes the Code and all regulations, amended regulations and
proposed regulations issued thereunder, as roe existing or as hereafter amended or proposed.
9.02. The Mayor and the Clerk being the officers of the City charged with the responsibility
for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and
deliver to the purchaser a certification in order to satisfy the provisions of Section 103 (c) of the
Internal Revenue Code and the regulations, existing and proposed, prowlgated thereunder.
Adopted by the Council this 4th day of December, 1979
Published: December 13, 1979
Attest ,�Q r .e. ,44.-04C
J City Clerk
Mayor
u
e
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