RES 1971-116 - 0000939819(),
RESOLUTION NO. 116 -1971 ,
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:
SEC. 1. The total estimated cost of Street Improvement Projects ST. 1971 -1 and
ST. 1971 -2 has been estimated at $60,000.00.
SEC. 2. It is now estimated that.the sum of $150,000.00 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 construction of
said improvement project.
SEC . There is hereby created Street Improvement Projects ST. 1971 -1 and ST.
1971-2 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 resolutions, 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.
SEC. 4. There is also hereby created Street Improvement Projects ST. 1971 -1 '
and 1971 -2 a P & 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 assess-
ments levied against benefited property by reason of making of said improvements
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.
SEC. 5. It is hereby determined that the sum of $150,000.00 shall be borrowed
to finance said Street Improvement Projects ST. 1971 -1 and ST. 1971 -2 with re-
spect 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.
SEC, 6. Said bonds shall be payable from the P & I Fund of the following:
Street Improvement Projects ST. 1971 -1 and ST. 1971 -2 but the City further recog-
nized 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 improve-
ment 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 avail-
able in the P & I Fund of Street Improvement Projects ST. 1971 -1 and ST. 1971 -2 or
out of other Municipal funds which are properly available and are appropriated by
the Council for such purpose. I
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RESOLUTION N0, 116 -1971 Cont.
Page 2
SEC It is hereby determined to levy special assessments against benefited
property by reason of the making of Street Improvement Projects ST. 1971 -1 and
1971 -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 there-
of has been determined.
SEC. S. Said temporary improvement bonds in the amount of $150,000.00 shall be
denominated Street Improvement Projects ST. 1971 -1 and ST. 1971 -2 Bond Series
''A" shall be Thirty (30) in number and numbered from 1 to 30 inclusive, each
in the denomination of $5,000.00 shall bear interest at the rate of 7% per annum,
payable semi - annually on June and December of each year, and shall mature on
June 30,1974, shall be subject to redemption and pre - payment on any interest
payment 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 informa-
tion 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 55432.
SEC 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
SEC, 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 authenti-
cated, by the printed, engraved, lithographed, or facsimile signatures of said
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RESOLUTION NO. 116 -1971 Cont. -
Page 3
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.
SE. 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.
SEC. 12. The bonds issued hereunder shall be payable for Street Improvement
Projects ST. 1971 -1 and ST. 1971 -2 which is hereby created. The Treasurer shall
cause all monies received from the proceeds of said bonds, all monies appropri-
ated and transferred from other funds and all special assessments for the im-
provements 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 Trea-
surer 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.
SEC. 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 inter-
est 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.
SEC. 14, The City Council has determined that not less than twenty percent (207)
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 improve-
ments. 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.
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RESOLUTION NO. 116 -1971 Cont.
Page 4
SEC 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 percent (5 %) 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.
SEC. 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 the, 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 13TH DAY OF
SEPTEMBER, 1971.
�„a
C AYOR - Jack 0. Kirkham
ATTEST:
CITY CLERK - Marvin C. Brunsell
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