RES 1978-68 - 00007264111
RESOLUTION NO. 68 -1978
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 Street Improvement Projects ST. 1978 -1, '
2, and 4 has been estimated at $500,000.00.
Sec. 2. It is now estimated that the sum of $500,000.00 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 Street Improvement Projects ST. 1978 -1, 2,
and 4 which shall contain a construction account as part thereof into which
shall be paid all proceeds of temporary bonds issued pursuant to this resolu-
tion 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 Street Improvement Projects ST. 1978 -1,
2, and 4 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 assess-
ments 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 $500,000.00 shall be borrowed
to finance said Street Improvement Projects ST. 1978 -1, 2, and 4 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:
Street Improvement Projects ST. 1978 -1, 2, and 4 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 improve-
ment 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 Street Improvement Projects ST. 1978 -1, 2,
and 4 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 against benefited
property by reason of the making of Street Improvement Projects ST. 1978 -1, 2,
and 4 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 $500,000.00 shall
be denominated Street Improvement Projects ST. 1978 -1, 2 and 4 Bond Series "A"
shall be fifty (50)in number and numbered from 1 to 50 inclusive, each in the
denomination of $10,000.00 shall bear interest at the rate of 7% per annum,
payable semi - annually on November 15 and May 15 of each year and shall mature
on May 15, 1981, shall be subject to redemption and prepayment 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
III
RESOLUTION NO. 68 -1978 (Continued) Page 2
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
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
nty, Minnesota, will pay to bearer at
Minnesota, the sum of
of
dollars lawful
money to the United Stated of America for interest then due on its
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 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 Street Improvement
Projects ST. 1978 -1,2 and 4 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
112
RESOLUTION NO. 68 -1978 (Continued) Page 3
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.
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 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.
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 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 24TH DAY
OF JULY, 1978.
ATTEST:
CITY CLERK - MARVIN C. BRUNSELL
MAYOR - WI AM J. NEE