RES 1977-71 - 00007152108
RESOLUTION NO. 71 -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:
SECTION 1. The total estimated cost of Water, Sanitary Sewer and Storm
Sewer Improvement Project No. 121 has been estimated at $35,000.
SECTION 2. It is now estimated that the sum of $35,000 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.
SECTION 3. There is hereby created Water, Sanitary Sewer and Storm Sewer
Improvement Project No. 121 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.
SECTION 4. There is also hereby created Water, Sanitary Sewer and Storm
Sewer Improvement Porject 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.
SECTION 5. It is hereby determined that the sum of $35,000 shall be
borrowed to finance said Water, Sanitary Sewer and Storm Sewer Improvement Project
No. 121 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, SECTION 429.01, Subdivision
3, as amended by Laws 1957, Chapter 385.
SECTION 6. Said bonds shall be payable from the P & I Fund of the following:
Water, Sanitary Sewer and Storm Sewer Improvement Project No. 121 but the City
further recognized its duty under the law, as provided by Section 429.091, and
convenants 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 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 Improvement Project No. 121 or out of other Municipal
funds which are property available and are appropriated by the Council for such
purpose.
SECTION 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. 121 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.
SECTION 8. Said temporary improvement bonds in the amount of $35,000 shall
be denominated Water, Sanitary Sewer and Storm Sewer Improvement Project No. 121
Bond Series "A" shall be seven (7) in number and numbered from 1 to 7 inclusive,
each in the denomination of $5,000 shall bear interest at the rate of 7% per annum,
payable semi - annually on February and August of each year and shall mature on
August 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
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RESOLUTION NO. 71 -1977
Page 2
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.
SECTION 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)
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
the United States of America for interest then due on its
DATED
CITY MANAGER MAYOR
SECTION 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
authenticiated. 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.
SECTION 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.
SECTION 12. The bonds issued hereunder shall be payable for Water, Sanitary
Sewer, and Storm Sewer Improvement Project No. 121 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.
SECTION 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, Section 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.
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RESOLUTION NO. 71 -1977
Page 3
SECTION 14. The City Council has determined that not less than twenty
percent 209/ 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 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.
SECTION 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 percent (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.
SECTION 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 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 25TH DAY OF '
JULY, 1977.
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MAYOR - WILLIAM J. NEE
ATTEST:
CITY CLERK - MARVIN C. NSELL