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HomeMy WebLinkAbout6796 (Res.)217 • • d RESOLUTION NO. 6796 RESOLUTION AITIHORIZING ISSUANCE, AND PROVIDING FOR THE PAYMENT OF $425,0�000GEPIERAL OBLIGATION BONDS OF 1ING SA1E, PRESCRIBING 'ME 19980. DETAILS BE IT 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 May 6, 1979, authorized the issuance and public sale of $425,000 General Obligation Bonds of 1980 of the City (consisting of $140,000 General Obligation Corporate Purpose Bonds of 1980, Series B, and $285,000 General Obligation Improvement Bonds of 1980, Series B, hereinafter collectively referred to as the "Bonds"), to finance various capital projects within the City and the cost of the local inprovenents designated in Section 1.02 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 receive pursuant to the published notice, does hereby find and determine that the most favorable bid received is that of The First National Bank of St. Paul, of St. Paul, Minnesota, and associates, to purchase the Bands at a price of $425,000.00 plus scared interest on all Ennuis to the day of delivery and paymeit, on the further terms and renditions 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 an 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 success- ful bidder shall be retained by the City Treasurer until the Bonds have been delivered and the purchase price paid. The good faith checks of other bidders shall be returned to them forthwith. Section 2. Bond Terms, Execution and Delivery. 2.01 The $140,000 General Obligation Corporate Purpose Bonds shall be designated General Obligation Corporate Purpose Bonds of 1980, Series B, shall be dated July 1, 1980, shall be issued in the denomination of $5,000 each, numbered searilly from 1 to 28, inclusive, shall mature serially an February 1 in the respective years and amounts stated below, and shall bear interest from date of issue until paid at the respective annual rates set forth opposite such years and anoints, as follows: YEAR Amouur RATE 1983 $ 5,000 6.25,, 1984 30,000 6.507, 1985 35,000 6.50% 1986 70,000 6.25% 2.02. The $285,000 General Obligation Improvement Bonds shall be designated General Obligation Improvement Bonds of 1980, Series B, shall be dated July 1, 1980, shall be issued in the denomination of $5,000 each, nrtered serially from 1 to 57, inclusive, shall mature serially on February in the respective years and amounts stated below, and shall bear interest fret date of issue aril paid at the respective annual rates set forth apposite such years and amounts, as follows: YEAR MOUNT RATE 1983 $25,000 6.25% 1984 25,000 6.507 1985 30,000 6.50% 1986 30,000 6.25% 1987 30,000 6.00% 1988 35,000 6.10% 1989 35,000 6.25% 1990 35,000 6.40% 1991 40,000 6.50% 2.03. The maturities of the Bonds, together with the maturities of all other outstanding general obligation bonds of the City, meet the requirements of Minnesota Statutes, Section 475.54. All Bonds will be without right of prior redemption. 2.04. The interest on the Bonds shall be payable semiannually on each February 1 and August 1, ccamencing on August 1, 1981. The principal of and interest on the Bonds shall be payable at The First National Bank of St. Paul, St. Paul, Minnesota, which is designated as paying agent, or in the event of its resignation, reoval or incapability of acting as paying agent, at the office of such successor paying agent as may be appointed by the Council. 2.05. The General Obligation Corporate Purpose Bonds of 1980, Series B, appurtenant interest mourns and certification of legal opinion shall be substantially the following form: • • • {218 • • RESOLUTION D. 6796 - continued UNITED STATES OF »ERICA STATE OF MINNESOTA WUNNY OF WASHINGTON CITY OF STTLLWATER GENERAL OBLIGATION WRPORAIE PURPOSE BWD OF 1980, SERIES B No. $5,000 KInJ ALL MEN BY THESE PRESENTS that the City of Stillwater, a duly organized and existing municipal corporation of the County of Washington, State of Minnesota, aclanwledges itself to be indebted and for value received promises to pay to bearer upon presentation and surrenderof this bond, the sun of FIVE THOUSAND DOLLARS on the 1st day of February, 19 , without option of prior payment, and to pay interest an said principal sum at the rate of per cent ( y,)perar m, from the date hereof until said principal sun is paid, payable sethazmualy o each February 1 and August 1, commencing August 1, 1981, 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 , in , Minnesota, in any min or currency of the United States of Americawhich an their respective dates of payment is legal tender for payment of public and private debts. For the prompt and full payment of such principal the City have beeneand are her respbecalm ereby ectively edged. full faith and credit and taring This bond is one of an issue in the Dotal principal anumt of $140,000, all of like date and tenor except as to serial amber, naturity date, and interest rate, all issued for the purpose of financing various capital projects within the City, and issued pursuant to and in full conformity with the Constitution and lass of the State of Minnesota and the Carter of said City thereunto enabling, and pursuant to resolutions duly adopted by the City Council. IT IS HEREBY CERTIFIED, RECITED, CONVENANIED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and Charter of said City to be done, to edst, to happen and to be 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 terms, have been done, do edst, have happened and have been performed as so required; that prior to the issuance hereof the City has levied ad valoren taxes upon all taxable property in the City, udich taxes will be collectible for the years and in mounts sufficient to produce sums rot less than We in excess of the principal of and interest on the bonds of this issue when due, and has appropriated such taxes to the payment of such principal and interest; that if necessary for payment of such principal and interest, additional ad valoren taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; and that the issuance of this bond does rot cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. IN WITNESS W E I8+ the City of Stillwater, Washington County, Minnesota, by its City f5+mri1, 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 .;ond also to be executed by the manual signature of one of said officers, and has cased this bond to be dated as of July 1, 1980. (Facsimile signature) (Facsimile signature) Mayor (Manual signature) (Form of Coupon) No. Ch the 1st day of August (February, 19 , the City of Stillwater, Washington Canty, Minnesota, will pay to bearer at , in Minnesota, the amunt shown hereon in lawful money of the United States of America, for the interest then due on its General Obligation Corporate Purpose Bond of 1980, Series B, dated as of July 1, 1980, No._ (Facsimile signature) (Facsimile signature) City Clerk Mayor (Form of ca full certificate bo tp to be printed ntedl opinion) reverse side of each bond, 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 a • • • Resolution No. 6796 - continued 219 2.06. The General Obligation Inprovanent Bonds of 1980, Series B. appurtenant interest coupons and certification of legal opinion shall be in substantially the following form: UNITED STATES OF ArERICA STATE OF MINNESOTA 001.N'Y OF WASkIIN610N 0111 CITY OF STRTWATER GENERAL OBLIGATION IMPROVEMENT BOND OF 1980, SERIES B No. $5,000 ENCW ALL PEN BY THESE PRESENTS that the City of Stillwater, a duly organized and existing municipal corporation of the County of Washington, State of Minnesota, aclmawledges itself to be indebted and for value received promises to pay to bearer upon presentation and surrender of this bond, the sum of FIVE THOUSAND Daumon 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 annum, from the date hereof until said principal sum is paid, payable semiannually on each February 1 and August 1, ceomencing August 1, 1981, 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 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 payment of such principal and interest as the same respectively became due, the full faith and credit and taxing pwers of the City have been and are hereby irrevocably pledged. This bond is one of an issue in the total principal amount of $285,000, all of like date and tenor except as to serial lumber, maturity date and interest rate, 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, Gapter 429, and is issued pursuant to and in full conformity with the Constitution and ]awe of the State of Minnesota thereunto ambling, and pursuant to resolutions duly adapted by the City Council. IT IS HEREBY METED, RECITED, OYYENANIED AND AGREED that all acts, conditions and things required by the Constitution and lam of the State of Minnesota 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 general obligation of the City in accordance with its terns, have been done, to exist, have happened and have been performed as so required; that prior to the issuance hereof the City has covenanted and agreed to levy special assessments upon pi specially benefited by the local improvements financed by the bonds and has levied ad valorem taxes on all taxable property within its corporate limits, which assessments and taxes are collectible for the years and in amounts 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 assessments 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 such property, without limitation as to rate or amount; and that the issuance of this bond does not cause the indebredness of the City to exceed any consituttional or statu- tory limitation of indebtedness. IN WITNESS 4DiEEOF 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 farcinile signatures of the Mayor and the City Clerk, has caused this bad also to be executed by the manual signature of one of said officers, and has caused this bond to be dated as of July 1, 1980. (Facsimile signature) (Facsimile signature) City Clerk Mayor (Manual signature) (Fong of Coupon) No. On the 1st fay od August (February), 19 , the City of Stillwater, Washington County, Minnesota, will pay to bearer at in , Minnesota, the smut shown hereon in lawful money of the United States of America, for the interest then due on its General Obligation Inprovenent Bond of 1980, Series B, dated as of July 1, 1980, No. (Facsimile signature) (Facsimile signature) CityClerk Mayor r (Foam of certificate to be printed on the reverse if each bond, following a full copy of the legal opinion) (continued on page 220) a e i�220 RESOLUITON NO. 6796 - continued We verify that the above is a full, true and correct copy of the legal opinion rendered by bond coumsel on the issue of bonds of the City of Stillwater, Minnne o�nwhich includes the within bond, dated as of the date of delivery of and paymentfor (Facsimile signature) (Facsimile signature) City Clerk Mayor 2.07. 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 Treasurer to the purchaser thereof upon payment 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. Security Provisions for General Obligation Corporate Purpose Bonds of 1980, Series B. 3.01. mere is hereby established on the official books and records of the City a "1980 Capital Expenditures Fund, Series B" of the City, and the Clerk shall continue to maintain such Fund until all costs and expenses incurred in construction of the capital projects to be financing by the Corporate Purpose Bonds have been paid. To said Fund there shall be credited $140,000 of the proceeds of the Corporate Purpose Bands and from said Fiord there shall be paid all costs and expenses of said capital projects. After payment of all costs incurred with respect to said capital projects the Fund shall be discontinued and any Corporate Purpose Bond proceeds remaining therein shall be transferred to the bond account referred to in Section 3.02. 3.02. The bonds shall be payable f,um a separate 1980 General Obligation Corporate Purpose Bond Account, Series B, of the Sinking Fund of the City, which Account the City agrees to maintain until the Corporate Purpose Bonds have been paid in full. If thee money in said Account or Sinking Fund should be at any tine be insufficient to principal interest due on the Corporate Purpose Bonds, such auo mts shall be paid from the General Fund of the City, which shall be reimbursed therefor when sufficient money becees available in said Account or Sinking Fund. The moneys on hand in said Account from tine to tine shall be used only to pay the principal of and interest on the Corporate Purpose Bonds and such other general obligation bonds of the City as are made payable therefrom by the City Council. Into said Account shall be paid any excess Corporate Purpose Bond proceeds, as provided in Sectionr3.01, all taxes levied pursuant to Section 3.03, and all other imneys appropriated 3.03. The full faith and credit and taxing powers of the City are hereby irrevocably pledged to the payment of the Corporate Purpose Bonds and the interest thereon when due. For the purpose of producing sums which will be not less than-, 5% in excess of the principal of and interest on the Corporate Purpose Bonds when due, there is hereby levied upon all taxable property within the w,porate limits of the City, a direct, an.uas, 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 year: Levy Year Collection Year Amount 1980 1981 $ 14,817 1981 1982 14,609 1982 1983 40•530 1983 1984 43,733 1984 1985 78,094 Said tax shall be irrepealable so long as any of the Corporate Purpose 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 4. Security Provisions for General Obligation Inproveent Bonds of 1980 Series B. 4.01. There is hereby established on the official books and records of the City an1980 80nanced Improvement Construction Fund, Series B, and an account of such Fund for each inn i by the Improvement 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 improvement for which it is established. To each account there shall be credited from the proceeds of the Improvement Bonds, 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 may from time to tine be appropriated by this Council; and frau said account there shall be paid all costs and expenses of said improvement. There shall also be credited to each account all special assessne is and taxes collected with respect to the improvement for which 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 account for it shall be discontinued and any Improvement Bond proceeds remaining therein may be transferred to the other funds or accounts (continued on page 221) r' • • 221 0 0 RFSOLUITON ND. 6796 - contunued established for construction of other improvements instituted pursuant to Minnesota Statutes, Chapter 429. All special assessments and taxes on hand in each account when terminated or thereafter received, and any Improvement Bond proceeds not so transferred, shall be credited to the 1980 Improvement Bond Account, Series B in the Sinking Fund of the City. 4.02. The Improvement Bonds to be issued shall be payable from a separate and special 1980 Improvement Bond Account, Series B, of the Sinking Fund of the City, which Account the City agrees to maintain until said Irprovement 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 an the Improvement Bonds, such amounts shall be paid from moneys on hand in said Silting Find, or if necessary from the General Fund of the City, which shall be re- imbursed therefor when sufficient money becomes 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 Improvement Bonds. Into said Account shall be paid such amount of the proceeds of the Improvement Bonds as is estimated to be necessary to pay interest on the bonds during the contraction period ($ -0- ), all special assessments and taxes collected with respect to each improvement financed by the Improvement Bonds after the costs of said improvements have been paid in full, and any excess bond proceeds, as provided in Section 4.01. 4.03. The City hereby covenants and agrees that, for the payment of the cost of improve- ments financed by the Improvement 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 Improvement Bonds. It is presently estimated assessments will be levied in the aggregate amount of $285,000. The principal of said assess- ments shall be payable in animal installments, with interest on unpaid installments thereof from time to time at the rate of rot less than 7.5% per annm. It is presently estimated that the principal and interest on such special assessments will be collected in the following years and amounts: Year Amount 1981 $ 49,875.00 1982 47,737.50 1983 45,600.00 1984 43,462.50 1985 41,325.00 1986 39,187.50 1987 37,050.00 1988 34,912.50 1989 32,775.00 1990 30,637.50 In the event that any such assessment shall at any time be held invalid with respect to any for or tract of land, due to any error, defect or irrregularity in any action or proceeding taken or to be taken by the City or by this Council or by any of the officers or employees of the City, either in the making such assessment or in the performance of any condition precedent thereto, the City hereby covenants and gees that it will forthwith do all such further things and take all such further proceedings as shall be required by law to make such assessment a valid and binding lien upon said property. 4.04. For the prompt and full payment of the principal and interest on said Improvement Bonds as such payments respectively become due, the full faith and credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce sums for the payment of the principal of and interest an the Fsprov®ant Bonds which, together with Improvenent Bond proceeds appropriated to pay interest caning due during the construction period and the collections of the assessments and interest thereon, are not less than 5% in excess of such principal and interest when due, there is hereby levied upon all taxable property in the City, a direct, annual, ad valorem tax which shall be spread upon the tax rolls for the years and in the aoout set forth below, and collected with and as a part of other general taxes of the City in the respective ensiling collection years: Levy Collection Levy Collection Year Year Anoint Year Year Amount 1980 1981 $ -0- 1985 1986 $ -0- 1981 1982 -0- 1986 1987 -0- 1982 1983 -0- 1987 1988 4,862 1983 1984 -0- 1988 1989 9,057 1984 1985 -0- 1989 1990 14,093 Said tax shall be irrepealeble as long as any of said Improvement Bonds are outstanding and unpaid; provided, that the City reserves the right and power to reduce the levies in the maser and to the extent permitted by Minnesota Statutes Section 475.61. Section 4. Defeasance. When all of the Bonds issued and all coupons appertaining thereto 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 obliga- tions with respect to any Bonds and coupons appertaining thereto which are due on any date by (continued on page 222) . • • • • ��222 • • RISOLUFTQd 140. 6796 - continued 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 neverthe- less be discharged by depositing with the paying agent a sun sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge it sobligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrrevocably 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 required to pay all principal interest to became due thereon to maturity. Section 6. 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 h additional information as he shall require, and to obtain from 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 7. Authentication of TYaiscript. 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 rends 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 same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the City as to the correctness of all statements contained therein. Section 8. Arbitrage. 8.01. The City covenants and agrees with the holders from time to time of the Bonds herein authorized, that it will not take, or pewit to be taken by any of its officers, employees or agents, any action which would cause the interest payment 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, aployees or agents to take, all affirmative actions within its powers which may be necessary to insure that such interest will not became subject to taxation under the Internal Revenue Ode. Internal Revenue Code as used herein includes the Code and all regulations, amended regulations and proposed regulations issued thereunder, as maw existing or as hereafter amended or proposed. 8.02. The Mayor and the Clerk being the officers of the City charged with the responsi- bility 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 provision of Section 103 (c) of the Internal Revenue node and the regulations, existing and proposed, pramilgated thereunder. Adopted by the Council this 28th day of May, 1980 Published: June 5, 1980 Attest:,,,, � �. ,� 1L.•,<.CQ� ty Clerk Mayo' r a • •