RES 1975-34 - 00007531RESOLUTION NO. 34 - 1975
RESOLUTION AUTHORIZING, SELLING AND ESTABLISHING
THE TERMS OF $1,220,000 GENERAL OBLIGATION
REFUNDING BONDS, CREATING A SINKING FUND
THEREFOR, AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED by the City Council of the City of
Fridley, Minnesota, as follows:
Section 1. Authorization and Sale.
1.01 By resolution duly adopted February 3, 1975,
this Council found that it would be in the best interests of
the City to advertise for the sale of $1,220,000 General
Obligation Refunding Bonds, the proceeds to be used, together
with any additional funds of the City which might be required,
to refund in advance of maturity the outstanding $875,000
principal amount of Special Assessment Fund Bonds of 1970 and
$375,000 principal amount of Waterworks Bonds of 1970 of the
City, each dated July 1, 1970 (hereinafter referred to as the
"1970 Bonds ").
1.02 Notice of sale of $1,220,000 General Obligation
Refunding Bonds (hereinafter referred to as "the Bonds ") has
been duly published, and the Council has publicly considered
all sealed bids presented in conformity with the notice. The
most favorable of such bids is ascertained to be that of
Juran & M o o d y, I n c , of St. Paul, Minnesota, and
associates, to purchase the Bonds at a price of par plus
accrued interest plus a premium of $13,090.00 ,. and upon
the further terms and conditions set forth in this resolution.
It is hereby found that by acceptance of said bid, and the
refunding of the 1970 Bonds in accordance with the procedures
set forth in Minnesota Statutes, Section 475.67, the interest
cost to the City can be substantially reduced from a net
effective rate of 6.779% for the remaining 1970 Bonds to
5.7431 % for the Bonds. It is therefore found to be in the best
interests of the City to accept said bid.
1.03 The Mayor and City Manager are directed to
execute in duplicate a contract on the part of the City for
the sale of the Bonds in accordance with the proposal described
in Section 1.02, and to deliver a duplicate to the purchasers.
The Finance Director is directed to retain the purchasers check
securing the contract of sale until the Bonds are delivered and
the purchase price is paid, and to return the checks securing
other bids to the respective bidders.
Section 2. Bond Terms, Execution and Delive
2.01 The Bonds shall be designated General Obligation
Refunding Bonds, dated March 1, 1975, shall be issued in the
denomination of $5,000 each, numbered serially from 1 to 244,
inclusive, shall mature serially on January 1 in the respective
years and amounts stated below and shall bear interest from
date of issue until paid or duly called for redemption at the
respective annual rates set forth opposite such years and amounts,
as follows:
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Interest
Interest
Year
Amount
Rate
Year
Amount
Rate
1976
$145,000
6.00%
1983
$50,000
6.00%
1977
145,000
6.00%
1984
50,000
6.00%
1978
150,000
6.00%
1985
40,000
6.00%
1979
150,000
6.00%
1986
45,000
6.00%
1980
145,000
6.00%
1987
45,000
6.00%
1981
105,000
6.00%
1988
45,000
6.00%
1982
95,000
6.00%
1989
10,000
6.00%
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2.02 The Bonds maturing in the years 1976 through
1983 shall not be subject to redemption before maturity. The
Bonds maturing in the years 1984 through 1989 shall each be
subject to redemption and prepayment at the option of the
City on January 1, 1983, and on any interest payment date
thereafter, in inverse order of their serial numbers, at a
price of par plus accrued interest. Notice of redemption
identifying the Bonds to be redeemed shall be published at
least once not less than thirty days prior to the date fixed
for redemption in a daily or weekly periodical published in a
Minnesota city of the first class or its metropolitan area,
circulating throughout Minnesota and carrying financial news
as a part of its service.
2.03 The interest on the Bonds shall be payable
semiannually on each January 1 and July 1, commencing on
July 1, 1975. The principal of and interest on the Bonds
shall be payable at The First National Bank of Saint Paul, in
St. Paul, Minnesota, which is designated as paying agent,
or in the event of its resignation, removal or incapability
or acting as paying agent, at the office of such successor
paying agent as may be appointed by the Council.
2.04 The Bonds, appurtenant interest coupons and
certification of legal opinion shall be in substantially the
following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF FRIDLEY
GENERAL OBLIGATION REFUNDING BOND
No.
$5,000
KNOW ALL MEN BY THESE PRESENTS, that the City of Fridley,
a duly organized and existing municipal corporation of Anoka
County, Minnesota, acknowledges itself to be indebted and for
value received promises to pay to bearer upon presentation and
surrender of this bond the sum of FIVE THOUSAND DOLLARS on the
first day of January, 19 , or, if this bond is redeemable as
provided below, then on a date prior thereto on which it has
been duly called for redemption, and to pay interest on said
principal sum from the date hereof until said principal sum is
paid, or, if this bond is redeemable, until it has been duly
called for redemption, at the rate of six and no hundredths per-
cent (6.00 %) per annum Interest hereon is payable semiannually
on January 1 and July 1 of each year, commencing July 1, 1975,
interest to maturity being payable in accordance with and upon
presentation and surrender of the interest coupons appurtenant
hereto. Both principal of and interest on this bond are payable
at The First National Bank of Saint Paul, in St. Paul, Minnesota,
in any coin or currency of the United States of America which
on their respective dates of payment is legal tender for public
and private debts. For the prompt and full payment of such
principal and interest as the same respectively become due, the
u ll faith, credit and taxing powers of the City have been and
are hereby irrevocable pledged.
This bond is one of an issue in the total principal
amount of $1,220,000, all of like date and tenor except as to
serial number, maturity date, interest rate and redemption pri-
vilege, issued for the purpose of refunding a like principal amount
of valid outstanding bonds of the City, consisting of $875,000
Special Assessment Fund Bonds of 1970, dated July 1, 1970, and
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$345,000 Waterworks Bonds of 1970, dated July 1, 1970, pursuant to
laws of the State of Minnesota thereunto enabling, including
Chapter 475, Minnesota Statutes, as amended.
Bonds of this issue maturing in the years-1276 through
1983 are payable on their respective stated maturity dates without
option of prepayment, but bonds having stated maturity dates in the
years 1984 through 1989 are each subject to redemption and prepay-
ment at the option of the City and in inverse order of serial
numbers on January 1, 1983, and on any interest payment date
' thereafter, at par and accrued interest. Notice of redemption
identifying the bonds to be redeemed will be published at least
once not less than thirty days before the date fixed for redemp-
tion in a daily or weekly periodical published in a Minnesota
city of the first class or its metropolitan area, circulating
throughout Minnesota and carrying financial news as a part of
its service.
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 the City
to be done, to exist, to happen and to be performed precedent 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, do exist, have happened and have been per-
formed in regular and due form, time and manner as so required;
that each and all of the bonds refunded by this issue mature or
have been duly called for redemption and prepayment on or prior
to January 1, 1982, and the City has appropriated the proceeds of
the bonds of this issue, together with such other legally such moneys
in securities issued by the United States or certain of its agencies,
in such amounts, maturing on such dates, and bearing interest at
such rates as are required to provide funds sufficient to pay all
principal and interest and redemption premiums due on the refunded
' bonds on or before January 1, 1982, and has irrevocably placed
such funds and securities in escrow for this purpose; that the
bonds are payable primarily from special assessments and net
revenues of the water system appropriated to the 1975 Refunding
Bond Account established in the Debt Service Fund of the City, but,
if necessary for payment of principal of and interest on the bonds
of this issue, ad valorem taxes may be levied upon all taxable
property in the City without limitation as to rate or amount;
and that the issuance of this bond does not cause the inde tedness
of the City to exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF the City of Fridley, Anoka County,
Minnesota, by its City Council has caused this bond to be executed
in behalf by a facsimile of the signature of the Mayor, attested
by the manual signature of the City Manager, sealed with a facsimile
of its official seal, and has caused the interest coupons appurtenant
hereto and the certificate appearing on the reverse side hereof to
be executed and authenticated by the facsimile signatures of said
officers, and has cuased this bond to be dated as of March 1, 1975.
MAYOR - WILLIAM J. NEE
Attest:
CITY MANAGER - NASIM QURESHI
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(Form of Coupon)
No.
Unless the bond described below is subject to and has
been duly called for earlier redemption, on the first day of July
(January), 19 , the City of Fridley, Anoka County, Minnesota,
will pay to bearer at The First National Bank of Saint Paul, in
St. Paul, Minnesota, the amount shown hereon in lawful money of
the United States of America, for the interest then due on its
General Obligation Refunding Bond, dated as of March 1, 1975,
No.
(Facsimile signature)
City Manager
(Facsimile signature)
Mayor
(Form of certificate to be printed on the reverse side
of each bond, following a full copy of the elgal opinion)
We certify that the above is a full, true and correct
copy of the legal opinion rendered by bond counsel on this issue
of bonds of the City of Fridley, Minnesota, which includes the
within bond, dated as of the date of delivery of and payment for
the bonds.
(Facsimile signature)
City Manager
(Facsimile signature)
Mayor
2.05. The Bonds shall be prepared under the direction
of the City Manager and shall be executed in behalf of the City
by the signatures of the Mayor and City Manager (one of
which signatures may be a facsimile), and by affixation of a
facsimile of its official seal, and the interest coupons
thereto attached shall be executed and authenticated by the
printed, engraved or lithographed facsimile signatures of said
Mayor and Manager. On the reverse side of each Bond will be
printed a copy of the approving opinion to be rendered by
bond counsel certified by the facsimile signatures of the
Mayor and Manager. After the Bonds have been so signed and
certified, the Finance Director shall thereupon deliver the
same to the purchaser thereof upon receipt of the purchase
price heretofore agreed upon, and the purchaser shall not be
obligated to see to the application of said purchase price.
Section 3. Use of Bond Proceeds and Accrued Interest.
3.01 The proceeds of the Bonds, including any premium
and accuued interest, are irrevocably appropriated, together,
with such additional sum as may be required from funds now on
hand, for the payment and redemption of the outstanding 1970
Bonds at their respective maturities or at the earliest date
hereinafter specified for the redemption thereof, and for
the payment of interest to become due on such 1970 Bonds on
or before the respective dates on which they are to be paid and
recdemed. The Finance Director is hereby authorized and directed,
simultaneously with the delivery of the Bonds, to deposit the
proceeds thereof, including any premium and accrued interest,
and any additional sum which may be required, in escrow with
The First National Bank of Saint Paul, in St. Paul, Minnesota,
a banking institution whose deposits are insured by the Federal
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Deposit Insurance Corporation and ^whose combined capital and surplus
is not less than $500;000, and shall invest the funds so deposited
in securities authorized for such purpose by Section 475.67,
subdivision 8, as amended, maturing on such dates and bearing
interest at such rates as are required to provide funds sufficient,
with cash retained in the escrow account, to pay when due the
interest to accrue on the 1970 Bonds being refunded to their
respective maturity dates or the date hereinafter designated for
their earlier redemption and prepayment, and to pay the principal
amount of each of said 1970 Bonds at maturity or at the date here-
inafter designated for the redemption and prepayment thereof.
The Mayor and City Manager are hereby authorized to enter into
an escrow agreement with said Bank establishing the terms and
conditions for the escrow account in accordance with Minnesota
Statutes, Section 475.67.
Section 4. Sinking Fund and Tax Levies.
4.01 The 1970 Bonds, including interest thereon,
will be payable primarily from the escrow account established
and irrevocable appropriated for such purpose as of the date of
delivery of the Bonds; therefore, so long as the escrow account
is maintained as provided in the escrow agreement, the special
assessments and net water system revenues originally pledged
for payment of the Special Assessment Fund Bonds of 1970 and Water-
works Bonds of 1970, respectively, will not be required for said
purpose, and shall be available for appropriation to the 1975
Refunding Bond Account established pursuant to Section 4,02
hereof.
4.02 The Bonds shall be payable from the 1975 Refund-
ing Bond Account to be established and maintained by the Finance
Director as a separate account within the Debt Service Fund of
the City for so long as any of the Bonds are outstanding and
unpaid. Moneys in this Account shall be used solely to pay the
principal of and interest on the Bonds as such becomes due, and
if any payment of principal of interest on the Bonds shall become
due when there is not sufficient money in the Account to make such
payment the Finance Director shall advance the amount required from
the general fund of the City. There shall be deposited in said
Account (i) all present funds on hand in the Waterworks Bonds
of 1970 Account established by Resolution No. 130 -1970 and
all future appropriations of net revenues of the water system
which would have otherwise been credited to said Waterworks
Bonds of 1970 Account pursuant to said Resolution; (ii) all
prepayments of assessments levied with respect to the improvements
financed by the.issuance of the Special Assessment Fund Bonds of
1970 and all future collections of installments of said assessments;
and (iii) the collections of any taxes levied pursuant to Section
4.03 hereof and any other funds appropriated by the Council for
payment of the Bonds.
4.03 It is hereby estimated that the amounts of special
assessments and net water revenues to be made available pursuant
to Section 4.01 will provide sums for the 1975 Refunding Bond
Account at least 5% in excess of the amounts needed to meet when
due the principal and interest payments on the Bonds, and conse-
quently no ad valorem taxes are levied at this time. However,
the full faith, credit and taxing powers of the City are pledged
to the payment of the Bonds and, should the moneys on hand in 1975
Refunding Bond Account ever be insufficient for said purpose,
the City affirms its obligation to levy ad valorem taxes upon
all taxable property within the City, without limitation as to rate
or amount, to the extent required to remedy and deficiency.
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Section 5. Redemption of 1970 Bonds and Certification
of Proceedings.
5.01 The Assistant City Manager is hereby authorized
and directed forthwith to call for redemption and prepayment on
January 1, 1982, those bonds of the issue of Special Assessment
Fund Bonds of 1970, dated July 1, 1970, which have stated maturity
dates in the years 1983 through 1991. Notice of the redemption
of said bonds shall be published in accordance with the terms
of the resolution authorizing the issuance of the bonds.
5,02 The Assistant City Manager is directed to file
with the Councy Auditor of Anoka County a certified copy of this
resolution, and to obtain from the County Auditor a certificate
stating that the Bonds have been entered upon his bond register.
5;03 The officers of the City and said County Auditor
are authorized and directed to prepare and furnish to the
purchasers of the Bonds, and to bond counsel, certified copies
of all proceedings and records of the City relating to the
authorization and certificates and issuance of the Bonds and
such other affidavits and certificates as may reasonably be required
to show the facts relating to the legality and marketability
of the bonds as such facts appear from the officers' books and
records or are otherwise known to them. All such certified copies,
certificates and affidavits, including any heretofore furnished,
constitute representations of the City as to the correctness of
the facts recited therein and the actions stated therein to have
been taken.
5.04 The Mayor and the City Manager being the officers
of the City charged with the responsibility for issuing the
obligations pursuant to this resolution, are authorized and
directed to execute and deliver to the purchaser a certification
in order to satisfy the provisions of Section 1.103 -13 of the
amended Income Tax Regulations (26 CFR Part 1) published in the
Federal Register, May 5, 1973. Such certification shall state that
on the basis of the facts, estimates and circumstances in existence
on the date of issue and delivery of the Bonds as therein set
forth, it is not expected that the proceeds of the Bonds will be
used in such a manner that would cause the Bonds to be arbitrage
bonds, and the certification shall further state that to the
best of the knowledge and belief of the certifying officers
there are no other facts, estimates or circumstances that would
materially change such expectation.
5.05 This resolution shall take effect upon passage.
Approved:
MAYOR - WILLIA NEE
Attest^,
j� V l [Q/7.�
ASSISTANT CITY MANAGER
Motion for adoption of the foregoing resolution was
duly seconded by Member Breider, and upon vote being taken thereon,
the following voted in favor:
Councilwomen Kukowski
Councilman Fitzpatrick
Councilman Breider
Mayor Nee.
and the following voted against the same:
None
whereupon said resolution was declared duly passed and adopted.
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