RES 1970-125 - 00009789157
RESOLUTION NO. 125 -1970
A RESOLUTION DIRECTING THE ISSUANCE OF TEMPORARY IMPROVEMENT BONDS IN ACCORDANCE
WITH LAWS OF 1957, CHAPTER 385
BE IT RESOLVED by the Council of the City of Fridley, Anoka County, Minnesota as
follows:
SECTION 1. The total estimated cost of Street Improvement Project No. St. 1970 -1
and St. 1970 -2 has been estimated at $325,000.00.
SECTION 2. It is now estimated that the sum of $325,000.00 is currently necessary
to provide financing of the projects above noted, and it is hereby
determined to be necessary to borrow said amount for the payment of obligations
now incurred and for expenses necessarily incurred in connection with the con-
struction of said improvement project.
SECTION 3. There is hereby created Street Improvement Project No. St. 1970 -1 and
St. 1970 -2 which shall contain a construction account as part thereof
into which shall be paid all proceeds of temporary bonds ;issued pursuant to this
resolution and similary subsequent resolution, and out of which shall be paid all
amounts due and payable as costs or expenses incident to or incurred in connection
with the making of said improvement.
SECTION 4. There is also hereby created Street Improvement Project No. St. 1970 -1
and St. 1970 -2, a P F, I Account, which account in said fund may and shall
be termed as the P $ I Fund, into which shall be paid the proceeds of all special
assessments levied against benefited property by reason of making of said improve-
ments as well as all other monies therein to be paid as provided by law and out of
which shall be paid the principal and interest on all temporary improvement bonds
issued to finance said project.
SECTION S. It is hereby determined that the sum of $325,000.00 shall be borrowed to
finance said Street Improvement Project No. St. 1970 -1 and St. 1970 -2
with respect to cost of construction and expenses necessarily incurred relative
thereto to this date, by the issuance of temporary improvement bonds of the City
of Fridley as authorized in Minnesota Statutes, SEC. 429.01, Subdivision 3, as
amended by Laws 1957, Chapter 385.
SECTION 6. Said bonds shall be payable from the P $ I Fund of the following:
Street Improvement Project No. St. 1970 -1 and St. 1970 -2 but the City
further recognized its duty under the law, as provided by Sec. 429.091, and
covenants and agrees with the purchaser and all holders from time to time, of said
temporary improvement bonds, at or prior to the maturity thereof that it will pay
and retire such bonds and the interest thereon out of the proceeds of definitive
improvement bonds which the Council shall issue and sell at or prior to the maturity
of the temporary improvement bonds to the extent that the same cannot be paid out of
funds available in the P $ I Fund of Street Improvement Project St. 1970 -1 and
St. 1970 -2 or out of other Municipal funds which are property available and are
appropriated by the Council for such purpose.
SECTION 7. It is hereby determined to levy special assessments against benefited
property by reason of the making of Street Improvement Project No.
St. 1970 -1 and St. 1970 -2 and to levy ad valorem taxes, if necessary, to produce
sums at least 5% in excess of the amounts sufficient to pay principal and interest
when due on said temporary improvement bonds and on any definitive bonds to be
issued as herein provided, such special assessments to be placed on the tax rolls
at such time when said improvement projects have been completed or the total cost
thereof has been determined.
' SECTION 8. Said temporary improvement bonds in the amount of $325,000.00 shall be
denominated Street Improvement Project No. St. 1970 -1 and St. 1970 -2 Bond
Series "A" shall be Sixty Five (65) in number and numbered from 1 to 65 inclusive,
each in the denomination of $5,000.00 shall bear interest at the rate of 7% per
annum, payable semi - annually on July and January of each year and shall mature on
July 1, 1973, shall be subject to redemption and pre - payment on any interest pay-
ment date, at par and accrued interest. Not less than 30 days before the date
specified for redemption on said bonds, the City Treasurer shall mail notice of the
call thereof to the holder, if known, said Treasurer shall maintain a record of
the names and addresses of the holders of said bonds insofar as such information is
made available to him by the holders thereof, for the purpose of mailing said
notices. The principal and all interest on said bonds shall be payable at
Fridley City Hall, 6431 University Avenue, N.E., Minneapolis, Minnesota S5421.
158
RESOLUTION NO. 125 -1970 CONTINUED.
SECTION 9. Said temporary improvement bonds shall be mimeographed and when so
mimeographed shall have attached thereto an interest coupon which bond
and coupon shall be substantially in the following form:
(Form of Coupon)
No. $
(Unless the bond described below is called for earlier redemption)
on the day of 19 , the of
County, Minnesota, will pay to bearer at
, Minnesota, the sum of dollars lawful money
of the United States of America for interest then due on its
Dated
City Manager Mayor
SECTION 10. Said bonds and coupons attached shall be prepared under the direction of
the City Manager and shall be executed on behalf of the City by the
signatures of the Mayor and Manager, and the corporate seal of the City shall be
affixed thereto, and the appurtenant interest coupon shall be mimeographed and
authenticated, by the printed, engraved, lithographed, or facsimile signatures of
said Mayor and Manager. When said bonds have been executed and authenticated they
shall be delivered by the Treasurer to the purchaser thereof, upon payment of the
purchase price heretofore agreed upon and accrued interest to date of delivery and
said purchaser shall not be obliged to see to the application thereof.
SECTION 11. The City Manager is hereby authorized and directed to file a certified
copy of this resolution with County Auditor of Anoka County, together
with such other information as he shall require and to obtain from said County
Auditor a certificate that said bonds have been entered on this bond register.
SECTION 12. The bonds issued hereunder shall be payable for Street Improvement
Project St. 1970 -1 and St. 1970 -2 which is hereby created. The
Treasurer shall cause all monies received from the proceeds of said bonds, all
monies appropriated and transferred from other funds and all special assessments
for the improvements provided that if any payment of principal or interest shall
become due when there is not sufficient money in said fund to pay the same, the
Treasurer shall pay such principal or interest from the general fund of the City and
such fund shall be reimbursed for such advances out of monies to be credited to
said fund when said monies are collected. All proceeds for said bonds except
accrued interest shall be credited to the fund and used to pay the cost of said
improvements.
SECTION 13. It is further provided that should it appear at any time that the
monies credited to said fund and provided for the payment of principal
or interest on the bonds when the sums become due are not sufficient to pay the same,
that then the City shall issue further definitive improvement bonds as authorized
and provided in accordance with Minnesota Statutes, Sec. 429.091, Chapter 475, and
that the process of said further definitive bonds shall be first used to pay the
principal and interest as is then due and to redeem the temporary bonds issued
thereunder.
SECTION 14. The City Council has determined that not less than twenty percent
(20 %) of the total cost of said improvements will be paid by special
assessments to be levied against every lot, piece or parcel of land benefited by the
said improvements. The City hereby covenants and agrees that it will do and perform,
as soon as they can be done, all acts and things necessary for the final and valid
levy of such special assessments, and in the event that any such assessments be at
any time held invalid with respect to any lot, piece or parcel of land, due to
any error, defect or irregularity, or in any action or proceeding taken or to be
taken by the Council or any of the City Officers or employees, either in the making
of such assessment or in the performance of any condition precedent thereto, the
City and this Council will forthwith do all such further proceedings as may be
required by law to make such assessments valid and binding liens against such
property, and also shall take such further proceedings as may be required by law to
provide monies for the payment of principal and interest as the same fall due on the
bonds issued hereunder and to provide for the redemption of the same.
i
159
RESOLUTION NO. 125 -1970 CONTINUED.
SECTION 15. It is hereby determined that the collection of special assessments
and the proceeds of monies appropriated and transferred from other
funds is and will be in an amount of at least five per cent (50) in excess of the
amount required to pay the principal of and the interest on said bonds when due and
that no ad valorem tax levy is accordingly required.
SECTION 16. The officers of the City and the County Auditor of Anoka County are
hereby authorized and directed to prepare and furnish to the purchaser
of said bonds and to the attorneys approving the legality of the issuance thereof,
certified copies of all proceedings and records relating to said bonds and to
the financial affairs of said City, and such other affidavits, certificates and
information as may be 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 such certificates,
certified copies and affidavits, including any heretofore furnished, shall be
deemed representations of the City as to the correctness of all statements
contained therein.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 29TH DAY OF
JUNE, 1970.
R - JACK 0. iIRKHAM
ATTEST:
jL
' CITY CLERK - V� I RUB LL