RES 1975-17 - 0000750818
RESOLUTION NO. 17 - 1975
A RESOLUTION DIRECTING THE ISSUANCE OF TEMPORARY IMPROVE-
MENT 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 Sanitary Sewer and Storm Sewer
Improvement Project No. 113 has been estimated at $247,000.00.
SEC.2. It is now estimated that the sum of $245,.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. 3. There is hereby created Sanitary Sewer and Storm Sewer
Improvement Project No. 113 which shall contain a construction
account as part thereof into which shall be paid all proceeds of
temporary bonds issued purauant to this resolution and similary
subsequent resolutions, and out of which shall be paid all amountds
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 Sanitary Sewer and Storm Sewer
Improvement Project No. 113 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 improve-
ment bonds issued to finance said project.
SEC. 5. It is hereby determined that the sum of $245,000.00 shall
be borrowed to finance said Sanitary Sewer and Storm Sewer Improve-
ment Project No. 113 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: Sanitary Sewer and Storm Sewer Improvement Project.
No. 113 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 improve-
ment bonds to the extent that the same cannot be paid out of funds
available in the P & I Fund of Sanitary Sewer and Storm Sewer
Improvement Project No. 113 or out of other Minicipal 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 Sanitary Sewer and
Storm Sewer Improvement Project No. 113 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.
lei _ p
SEC. 8. " Said temporary improvement bonds in the amount of $245,000.00
shall be denominated Sanitary Sewer and Storm Sewer Improvement
Project Nol 113 Bond Series "A" shall be forty -nine (49) in number
and numbered from 1 to 49 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
January 15, 1978, 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 recemption on said
bonds, the City Treasurer shall mail notice of the call thereof to
the holder, if know, 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 55421.
SEC. 9. Said temporary improvement bonds shall be mimeographed
and when so mineographed shall have attached thereto an interest
coupon which bond and coupon shall be substantially in the follow-
ing form:
(Form of Coupon)
No. $
(Unless the bond described below is called for earlier redemption)
on the day of , 19_, the
County, Minnesota, will pa:y to bearer at
of
, 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
purchases 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
fzle a certified copy of this resolution with County Auditor of
Anoka County, together with such other information as he shall
require and to abtain from said County Auditor a certificate that
said bonds have been entered on this bond register.
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SEC. 12. The bonds issued hereunder shall be payable for Sanitary
Sewer and Storm Sewer Improvement Project No. 113 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 improve-
ments 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 minies 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 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 provideda
in accordance with Minnesota Statutes, Sec. 429.091, Chapter 475,
and that the process of said definitive improvement 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 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 Countil
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 pay: ?ent of principal and interest as the same fall
due ,an 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 trans-
ferred from other funds is and will be in an 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
noka County are hereby authorized and directed to prepare and
furnish to the purchaser of said bonds and to the attorneys approv-
ing 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 costody 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
FRIDLEY THIS 3rd aAY
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COUNCIL OF