RES 1974-45 - 00007840RESOLUTION NO. 45 -1974
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 Water, Sanitary Sewer and Storm Sewer Improvement
Project No. 114 has been estimated at $1,080,000.00.
SEC. 2. It is now estimated that the sum of $1,080,000.00 is currently necessary
to provide financing of the projects above noted, and it is hereby determined
to be necessary to borrow said amount fo rthe payment of obligations now
incurred and for expenses necessarily incurred in connection with the
construction of said improvement project.
SEC. 3. There is hereby created Water, Sanitary Sewer and Storm Sewer Improvement
Project No. 114 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 Water, Sanitary Sewer and Storm Sewer Improvement
Project No. 114 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
assessments 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 $1,080,000.00 shall be borrowed to
finance said Water, Sanitary Sewer and torm Sewer Improvement Project No. 114
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.
SEC. 6. Said bonds shall be payable from the P & I Fund of the following:
Water, Sanitary Sewer and Storm Sewer Improvement Project No. 114 but the
City further recognized its duty under the law, as provided by Sec. 429.091, and 1
convenants and agrees with the purdiaser 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 Water, Sanitary Sewer and Storm Sewer Improvmeent Project No. 114 or
out of other municipal funds which are properly available and are appropriated
by the Council for such purpose.
SEC. 7. It is hereby determined to levy special assessments against benefited property
by reason of the making of Water, Sanitary Sewer and Storm Sewer Improvement
Project No. 114 and to levy as valorem taxes, if necessary, to produce sums
at least 5% in excess of the amount 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.
SEC. 8. Said temporary improvement bonds in the amount of $1,080,000.00 shall be
denominated Water, Sanitary Sewer and Storm Sewer Improvement Project No. 114
Bond Series "A" shall be one hundred eight (108) in number and numbered
from 1 to 108 inclusive, each in the denomination of $10,000.00 shall bear
interest at the rate of 7% per annum, payable semi - annually on October and
April of each year and shall mature on April 1, 1977, 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 theholder, 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
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RESOLUTION NO. 45 -1974
Page 2
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. 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) r
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 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.
SEC. 11. The City Manager is hereby authorized and directed to file a certified copy
of this resolution with the 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 Water, Sanitary Sewer and
Storm Sewer Improvement Project No. 114 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 creditied 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 interest
on the bonds when the sums become due are not sufficient to pay the same,
that 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 (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
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RESOLUTION NO. 45 -1974
Page 3
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.
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 the amount of at least five per cent (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 them, and such certificates, certified
copies and affidavits, inclucing any heretofore furnished, shall be deemed
representations of the City as to the correctness of all statements contained
therein.
IPASSED AND ADOPTED BY THE CITY COUNCIL
ATTEST;
10(/i : W,
OF THE CITY OF FRIDLEY THIS 15TH DAY OF APRIL, 1974.
P, k. t" 4 04-.�
MAYO,t - FRANK G LIEB