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RES 1977-50 - 00007120RESOLUTION NO. 50 -1977 RESOLUTION AWARDING THE SALE OF $1,115,000 GENERAL OBLIGATION SPECIAL ASSESSMENT FUND BONDS, FIXING THE FORM AND SPECIFICATION, DIRECTING THEIR EXECUTION AND DELIVERY AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Fridley, Minnesota, as follows: 1. The bid of the Continental Illinois National Bank and Trust Company, of Chicago, Illinois, to purchase $1,115,000 General Obligation Special Assessment Fund Bonds of the City described in the notice of sale thereof is hereby found and determined to be the highest and best bid received pursuant to duly advertised notice of sale and shall be and is hereby accepted, said bid being to purchase bonds bearing interest as follows: Year Rate Year Rate Year Rate 1978 3.10% 1982 4.00% 1986 4.60% 1979 3.40% 1983 4.20% 1987 4.70% 1980 3.70% 1984 4.30% 1988 4.80% 1981 3.90% 1985 4.40% 1989 4.90% at a price of $1,105,616.20. The sum of $11,616.20, being the amount bid in excess of $1,094,000, shall be credited to the bond sinking fund. The City Treasurer is directed to retain the good faith check of the successful bidder pending completion of the sale and delivery of the bonds, and the City Manager is directed to return the checks of the unsuccessful bidders forthwith. The Mayor and City Manager are directed to execute on behalf of the City the purchase agreement submitted by the purchasers. 2. The City shall forthwith issue its negotiable coupon General Obligation Special Assessment Fund Bonds of 1977 in the principal amount of $1,115,000, dated May 1, 1977, being 223 in number and numbered 1 to 223, both inclusive, in the de- nomination of $5,000 each, all bearing interest payable February 1, 1978, and ' semi - annually thereafter on August 1 and February 1 in each year, and maturing serially on February 1 in the years and amounts as follows: $65,000 in each of the years of 1978 and 1979, both inclusive; $110,000 in each of the years 1980 through 1986, both inclusive; $115,000 in the year 1987 and $50,000 in each of the years 1988 and 1989 both inclusive. All bonds are issued without option of prior payment. 3. The bonds shall be payable at the main office of the Northwestern National Bank of Minneapolis, in Minneapolis, Minnesota, as designated by the purchaser and the reasonable charge of said bank for services as paying agent shall be paid by the City. 4. It is hereby determined that the sum of $1,094,000 is the amount necessary to finance local improvements as set forth in the City Manager's Statement for Issuance of Special Assessment Fund Bonds dated April 4, 1977, and as approved in a Council resolution adopted April 4, 1977, and additional bonds in the amount of $21,000 represents the higher rate of interest authorized by MSA Section 475.56 and does not exceed two percent (2%) of the amount authorized by the Home Rule Charter of the City. 5. The bonds and interest coupons to be thereto attached shall be substantially the form attached hereto and made a part hereof and designated as Exhibit A. 6. The City Clerk shall obtain a copy of the proposed app -oving legal opinion of Messrs. LeFevere, Lefler, Pearson, O'Brien and Drawz, which shall be complete except as to dating thereof, and shall cause said opinion to be printed on each bond, together with a certificate to be signed by his facsimile signature, in substantially the following form: I hereby certify that the foregoing is a full, true and correct copy of the legal opinion executed by the above named attorneys, except as to the dating thereof, which opinion has been handed to me for filing in my office prior to the time of bond delivery. (Facsimile Signature) City Clerk The Clerk shall obtain a copy of the opinion at the time of bond delivery and execute a separate certificate as to such opinion upon receipt of such opinion and shall file the opinion in his office. RESOLUTION NO. 50 -1977 Page 2 77 7. The bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the facsimile signature of the Mayor and the manual signature of the City Manager and a facsimile of the City Seal of the City shall be affixed to each thereof, and the interest coupons shall be executed and authenticated by the printed facsimile signatures of the Mayor and City Manager. The said bonds, when so executed, shall be delivered by the City Treasurer to the purchaser thereof upon receipt of the purchase price, and the said purchaser shall not be obligated to see to the proper application thereof. 8. The bonds issued hereunder shall be payable from the Special Assessment Funds, as established by Section 7.12(d) of the City Charter and pursuant to all the provisions of said section 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 any advances out of proceeds of assessments or special taxes when collected. 9. It is hereby determined that the estimated collections of special assess- ments which will be available for the payment of said bonds will produce at least five per cent in excess of the amounts needed to meet when due the principal and interest payments on the bonds and no ad valorem taxes are required at this time. 10. The City Clerk shall deliver to the county auditor of Anoka County a certified copy of this resolution and obtain his certificate in accordance with Section 475.63, Minnesota Statutes. 11. It is hereby determined that the improvements which are financed by the issuance of bonds hereunder will benefit the entire city and the city hereby covenants with the holders from time to time of said bonds as follows: (a) The City will cause the assessments for all improvements to be promptly levied so that the first installment will become collectible not later than 1978 and will take all steps necessary to assure prompt collection. (b) The City will keep complete and accurate books and records showing all receipts and disbursements in connection with said improvements, the assessments levied therefor and other funds appropriated for their payment, and all collections thereof and disbursements therefrom, moneys on hand and balance of unpaid assessments. (c) The City will cause its said books and records to be audited at least annually by qualified public accountants and will furnish copies of such audit reports to any interested person upon request. 12. The clerk and treasurer of the City are hereby authorized and directed to prepare and furnish to the purchaser of the bonds and to the attorneys approving the same, certified copies of all proceedings and records of the City relating to said bonds and to the financial condition and affairs of the Special Assessment Fund and such certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody or under their control relating to the validity and marketability of bonds and such instruments, including any heretofore furnished, shall be deemed representations of the City as to the facts stated herein. 13. The Mayor and City Manager are hereby authorized and directed to certify that they have examined the official statement or prospectus prepared and circulated in connection with the issuance and sale of the bonds and that to the best of their knowledge and belief said statement is a complete and accurate representation of the facts and representations made therein as of the date of said official statement or prospectus. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 16TH DAY OF MAY, 1977. ( MAYOR - WILLIAM J. NEE ATTEST: �b . ,, M. RESOLUTION NO. 50 -1977 Page 3 EXHIBIT "A" UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF FRIDLEY GENERAL OBLIGATION SPECIAL ASSESSMENT FUND BOND OF 1977 $5,000 KNOW ALL MEN BY THESE PRESENTS, That the City of Fridley, Anoka County, Minnesota, acknowledges itself to be indebted, and, for value received hereby promises to pay to bearer, out of its Special Assessment Fund, on the lst day of February, 19 , the sum of FIVE THOUSAND DOLLARS and to pay interest thereon from the date hereof until the principal sum is paid at the rate of perannum, interest payable February 1, 1978, and semiannually thereafter on the lst day of August and the 1st day of February in each year in accordance with and upon presentation and surrender of the attached interest coupons as they severally become due. Both principal and interest on this bond are payable at the main office of the Northwestern National Bank of Minneapolis, in Minneapolis, Minnesota, in any coin or currency of the United States of America which on the date of payment is legal tender for public and private debts and to provide money for the prompt and full payment of said principal and interest as the same become due, the full faith, credit and taxing powers of the City have been and are hereby irrevocably pledged. All bonds are issued without option of prior payment. This bond is one of an issue of bonds in the total principal amount of $1,115,000, all of like date and tenor except as to serial numbers, interest rate, and maturity, all issued by the City for the purpose of providing money to defray the expenses incurred or to be incurred in making local improvements and in antici- pation of the collection of special assessments, as authorized by Section 7.12(d) of the Home Rule Charter of the City and is payable primarily from special assessments levied or to be levied against specially benefited property, but the full faith and credit of the City is pledged for their payment. IT IS HEREBY CERTIFIED AND RECITED, That all acts, conditions, and things required by the Constitution and Laws of the State of Minnesota and the City Charter to be done, to happen and to be performed precedent to and in the issuance of this bond have been done, have happened and have been performed in regular and due form, time and manner as required by law; and that the full faith and credit of the city is pledged for the payment of the principal of and interest on the bonds of this issue when the monies on hand in the appropriate fund are insufficient for the purpose and taxes shall be levied upon all taxable property, if needed to take care of any deficiency, which taxes may be levied without limitation as to rate or amount, and that the issuance of this bond did not cause the indebtedness of the city to exceed any constitutional, statutory or charter limitation thereon. IN TESTIMONY WHEREOF, the City of Fridley, Anoka County, Minnesota, by its City Council, has caused this bond to be executed in its behalf by the facsimile signature of the Mayor and the manual signature of the City Manager and sealed with a facsimile of the City Seal and the interest coupons hereto attached to be executed and authenticated by the facsimile signatures of said officers, all as of May 1, 1977. City Manager (Facsimile) (SEAL) (Facsimile) Mayor r (Facsimile) City Manager 1 79 RESOLUTION NO. 50 -1977 Page 4 Exhibit "A" (Con't) (Form of Coupon) No. $ On the lst day of (February) (August), 19 the City of Fridley, Anoka County, Minnesota, will pay to bearer at the main office of the Northwestern National Bank of Minneapolis, in Minneapolis, Minnesota, the amount shown hereon, for interest then due on its General Obligation Special Assessment Fund Bond of 1977, dated May 1, 1977, No. (Facsimile) Mayor (Facsimile) City Manager 1