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HomeMy WebLinkAbout7157 (Res)• 51 . • RESOLUTION NO. 7157 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM MD DETAILS AND PROVIDING FOR THE PAYMENT OF $650,000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS OF 1983. BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, as follaus: n Section 1. Auth^'sization and Sale. 1.01. This Council, by a resolution adopted February 1, 1983, authorized the issuance and public sale of $650,000 General Obligation Corporate Purpose Bonds of 1983 of the City, pursuant to Sections 75 and 200 of the City Charter and Minnesota Statutes, Sections 475.52 and 475.58. Said resolution is incorporated herein by reference and is hereby ratified and confirmed. 1.02. Notice of sale of the Bonds has been duly published, and the Caancil, having examined and considered all bids received pursuant to the published notice, does hereby find and determine that the most favorable bid received is that of BancNorthwest of Minneapolis, Minnesota, and associates, to purchase the Bonds at a price of $644,800.01 plus accrued interest an all Bands to the day of delivery and payment, an the further terms and conditions hereinafter set forth. 1.03. The sale of the Bands 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 Bawls in accordance with the terms of said bid. The good faith check of the surressful bidder shall be retained by the Treasurer until the Bonds have been delivered and the purchase price paid. The good faith cheeks of other bidders shall be returned to then forthwith. Section 2. Bond Terms, Execution and Delivery. 2.01. The Bonds shall be designated General Obligation Corporate Purpose Bonds of 1983, shall be dated March 1, 1983, shall be issued in the denomination of $5,000 each, metered serially from 1 to 130, inclusive, shall mature serially on March 1 in the respective years and amounts stated below, and shall bear interest from date of issue aril paid, at the respective annual rates set forth opposite such years and amounts, as follows: Year Ant Rate 1985 $ 25,000 5.0:0 1986 -0- - - 1987 75,000 5.50Z 1988 200,000 5 75% 1989 200,000 6.00% 1990 150,000 6.25% The maturities of the 1 ads, 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. 2.02. The interest on the Bonds shall be payable semiannually an each March 1 and September 1, ccemening on Nardi 1, 1984. The principal of and interest on the Bonds shall be payable at North- western National. Bank of Minneapolis, in Minneapolis, Minnesota, which is designated as paying agent, or in the event of its resignation, removal or incapability of acting as paying agent, at the office of such serressor paying -gent as inay be appointed by the Council. 2.03. The Bands, appurtenant interest coupons and certification of legal opinion shall be in substantially the follaring form: --� UNITED STATES OP AMERICA STATE OF MINNESOTA COUNTY OF WASHINGT7N CITY OF STIISk7ATER GENERA, OBLIGATION CORPORATE PURPOSE BON OF 1983 No. $5,000 IQIITel ALL MEN BY THESE PRZSFNPS that the City of Stillwater, a duly organized and existing municipal corporation of the County of Washington, State of Minnesota, acknowledges itself to be indebted and for value received prcedses to pay to bearer upon presentation and surrender of this bond, the sun of FIVE THOUSAND DOLLARS on the 1st day of March, 19 , without option of prior payment, and to pay interest an said principal sun at the rate of percent ( %) per aonm, from the date hereof until said principal sun is paid, payable semiannually an each March 1 and September 1, co®micing March 1, 1984 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 an their respective dates of payment in legal tender for payment of public and private debts. For the prompt and full payment of such principalean interest eas thehshe hrespame ecirvelycbbeeco a due, the full faith and credit and taxing powers City ed. This bond is one of an issue in the total principal amount of $650,000, all of like date and tenor except as to serial amber, maturity date and the interest rate, all issued for the purpose of financ- ing the acquisition and betterment of public buildings and equipment, and is issued pursuant to and in full conformity with the Constitution - and laws of the State of Minnesota and the Charter of said City [hereunto enabling, and pursuant to resolutions duly adopted by the coC[iityy Cou col. ipage 52) • • • 52 • • RESOLUTION NO. 7157 - continued 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 general obligation of the City in accordance with its terms, have been done, to exist;: have happened and have been performed as to 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 suns not less than 5% in excess of the principal of and interest on the bonds of this issue when due, and has appro- priated such 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 ,on all such to rate or pthedebtedness of the City as eared any constitutional,i; and that the issuance of this bond i statutory or charter limitation omcause in- debtedness. IN WITNESS WEREOF the City of Stillwater, Washington County, Minnesota, by its City Council, has cased 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 March 1, 1983 (Facsimile signature) (Facsimile signature) City Clerk Mayor (Manual signature) (Fonn of Coupon) No. On the 1st day of March (September), 19 , the City of Stillwater, Washington County, Minnesota, will pay to bearer at , in Minnesota, the amount sham hereon in lawful money of the United States of America, for the interest then due on its General Obligation Corporate Purpose Bond of 1983, dated as of March 1, 1983, 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 full, ture 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 2.04. 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 spans 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. 1983 Capital Expenditures Fund. There is hereby established on the official books and records of the City a "1983 Capital Expenditures Fund" of the City, and the Clerk shall continue to maintain such Rid until all costs and expenses incurred in construction of the public buildings and the acquisition of the now equipment to be financed by the bonds have been paid. To said Raid there shall be credited $639,250 of the proceeds of the bonds and from said Fund there shall be paid all costs and expenses of said public buildings and equipment. After payment of allcosts incurred with respect to said public buildings and equipment the Fund 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 from a separate 1983 General Obligation Corporate Purpose Bond Account of the Sinking Fund of the City, which Account the City agrees to maintain until the Bands have been paid in full. If the money in said Account or Sinking Rind should at any time be insufficient to pay principal and interest due on the Bonds, such amounts shall be paid from the General Fund of the City, which shall be reimbursed therefor when sufficient money becomes available in said Account or Sinking Fund. The Honeys 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 payable therefrom by the City Council. Into said Account shall be paid all Bond proceeds in excess of $639,250, all taxes levied pursuant to Section 5, and all other moneys appropriated thereto. (continued on page 53) • • • 53 ': • • e RESOLUTION N0. 7157 - continued 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 principal of and interest on the Bonds when due, there is hereby levied upon all taxable property within 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 belau, in the amnmt set forth opposite such years, to be collected in the respec- tive succeeding collection years: beby Year Collection Year Mont 1983 1984 $ 106,575 1984 1985 38,850 1985 1986 117,600 1986 1987 244,519 1987 1988 232,444 1988 1989 167,344 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 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 mays discharge its obligations with respect thereto to any bonds and coupons appertaining which are due on date bydepositing with the paying agent on or before that date a sun sufficent 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 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 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 spurpose, cash securities which are authorized by law to be so deposited, bearing interestasschtimes to and at such rates and maturing au such dates as shall be required to 1 allpayableprincipalinterest become due thereon to maturity. Section 7. RReeggi�sstration of Bonds. The Clerk is hereby authorized and directed to file a certified copy of this resolution "nth the County Auditor of Washington County, together with such additional information as he shall require, and to obtain from said County Auditor a certificate that thereof onddthe s have been duly entered upon his bond register and that the tax required forpayment paym been levied and filed as required by lag. Auditor Section 8. Authentication of Transcript. The officers of the City and bonbey ando� hereby authorized and directed to prepare and furnish to the purchasersand records relating attorneys approving the legality thereof, certified copies of all proceedings_ to the bondssuch and suother affidavits, certificates and information as may be Sequired to uin the banks and the facts relating to the legality and marketability of the Bonds, as the same appear records in their custody and control or as otherwise known to then, and all such certified copies, the City affidavit,s and to certificates, if iificates, includings cldi s any any heretofore e retoforeafued furnished, therein. shall be deemed representations of a the Section 9. Arbitrapp. 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 pent to be taken by any of its officers, mployees or agents, any action which would cause the interest payment on the Bonds to become subject to taxation under the United States Internal Revenue Code; and that it will takes, 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 and all regulations, amended regulations and proposed regulations issued thereunder, as now existino or as hereafter amended or proposed. 9.02. The Mayor and the Cleric 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 othcr�of Section 103(c) of the Internal Revenue Code and the regulations, edsting and proposed, promulgated Adopted by the Council this 1st day of March, 1983 Published: March 8, 1983 Attest: K' .iz ez Cipcj Clerk . . • •