RES 1977-05 - 00007049RESOLUTION NO. 5 -1977
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 Storm Sewer Improvement Project No. 120 has
been estimated at $7,000.00.
Sec. 2. It is now estimated that the sum of $7,000.00 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.
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Sec. 3. There is hereby created Storm Sewer Improvement Project No. 120 which
shal-f contain a construction account as part thereof into which shall be paid all
proceeds of temporary bonds issued pursuant to this resolution and similarly 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 Storm Sewer Improvement Project No. 120
a P-9 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 $7,000.00 shall be borrowed to
finance said Storm Sewer Improvement Project No. 120 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:
Storm Sewer Improvement Project No. 120 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 Storm Sewer Improvement Project No. 120 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 aginst benefited
property by reason of the making of Storm Sewer Improvement Project No. 120 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.
Sec. 8. Said temporary improvement bonds in the amount of $7,000.00 shall be
denominated Storm Sewer Improvement Project No. 120 Bond Series "A" shall be
seven (7) in number and numbered from 1 to 7 inclusive, each in the denomination
of $1,000.00 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 1, 1980, 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 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 55432.
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RES. NO. 5 -1977 (Con't.)
Sec. 9. Said temporary improvement bonds shall be mimeographed and when so
memeographed shall have attached thereto an interest coupon which bond and
coupon shall be substantially in the following form:
(Form of Coupon)
M
(Unless the bond described below is called for earlier redemption)
on the day of , 19_, the
County, Minnesota, will pay to bearer at
, Minnesota, the sum of
money of the United States of America for interest then due on its
DATED
of
dollars lawful
CITY MANAGER - NASIM M. QURESHI MAYOR - WILLIAM J. NEE
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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 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 Storm Sewer Improvement
Project No. 120 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.
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 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 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
RES. NO. 5 -1977 (Con't)
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 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 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
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 3RD DAY
OF JANUARY, 1977.
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Pl YOR -NIL IAf1 J, NEE
ATTEST:
aZl-
CITY CLERK - PIARVIN C. BRUNSELL
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