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RES 1981-54 - 00006220100 RESOLUTION NO. 54 - 1981 A RESOLUTION DIRECTING THE ISSUANCE OF TEMPORARY IMPROVE- MENT BONDS IN ACCORDANCE WITH LAWS OF 1957, CHAPTER 385 ST. 1980 -1, ST. 1980 -2 AND ST. 1980 -3 STREET IMPROVEMENT PROJECTS BE IT RESOLVED by the Council of the City of Fridley, Anoka County, Minnesota, as follows: SECTION 1. The total estimated cost of ST. 1980 -1, ST. 1980 -2 and ST. 1980 -3 Street Improvement Projects has been estimated at $800,000. SECTION 2. It is now estimated that the sum of $800,000 is currently necessary to provide financing of the project 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 a ST. 1980 -1, 1980 -2 & ST. 1980 -3 Street Improvement Projects Fund 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 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 a ST. 1980 -1, ST. 1980 -2 & ST. 1980 -3 Street Improvement Projects principal and interest account, which account in said fund may and shall be termed as the principal and interest 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 $800,000 shall be borrowed to finance said ST. 1980 -1, ST. 1980 -2 & ST. 1980 -3 Street Improvement Projects with respect to cost of construction and expenses necessarily incurred relative thereto by this date, by the issuance of temporary improvement bonds of the City of Fridley as authorized in Minnesota Statues, Section 429.01, Subdivision 3, as amended by Laws of 1957, Chapter 385. SECTION 6. Said bonds shall be payable from the principal and interest fund of the ST. 1980 -1, ST. 1980 -2 & ST. 1980 -3 Street Improvement Projects but the City, further recognizing its duty under the law as provided by Section 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 improvement bonds to the extent that the same cannot be paid out of funds available from the principal and interest fund of ST. 1980 -1, ST. 1980 -2 & ST. 1980 -3 Street Improvement Projects or out of other Municipal funds which are properly 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 ST. 1980 -1, ST. 1980 -2 & St. 1980 -3, Street Improvement Projects and to levy ad valorem taxes if necessary to produce sums at least five percent 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 when the total cost thereof has been determined. t 4 3 t Page 2 -- RESOLUTION NO. 54 - 1981 SECTION 8. Said temporary improvement bonds in the amount of $800,000 shall be denominated ST. 1980 -1, ST. 1980 -2 & St. 1980 -3, Street Improvement Projects and shall be 80 in number and numbered from 1 to 80 inclusive, each in the denomination of $10,000 and shall bear interest at the rate of 8 percent per annum payable semiannually on the 15th day of October and April of each year, and shall mature on April 15, 1984, and shall be subject to redemption and prepayment on any interest payment date at par and accrued interest. Not less than thirty days before the date specified for redemption of 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., Fridley, Minnesota 55432. SECTION 9. Said temporary improvement bonds shall be duplicated and when so duplicated shall have attached thereto an interest coupon which bond coupon shall be substantially in the following form: No. (Unless the bond described below is called for earlier redemption On the day of the of Minnesota, will pay to bearer at Minnesota the sum of lawful money of the United States of America for interest then due on its Dated: CITY MANAGER MAYOR SECTION 10. Said bonds and attached coupons shall be prepared under the direction of the City Clerk and shall be executed on behalf of the City by the signatures of the Mayor and City Clerk, and the corporate seal of the City shall be affixed thereto and the appurtenant interest coupon shall be duplicated and authenticated by the printed, engraved, lithographed or facsimile signatures of said Mayor and City Clerk. 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 Clerk is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Anoka County, together with such other information as she /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 from ST. 1980 -1, St. 1980 -2 & St. 1980 -3 Street Improvement Projects 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 improvement, 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. lot 102 A Page 3 -- RrSOLUTION N0. 54 - 1981 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. SECTION 14. The City Council has determined that not less than twenty percent of the total cost of said improvement will be paid by special assessments to be levied against every lot, piece or parcel of land benefited by the said improvement. 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 by 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 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 Conty 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 fact 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 them, 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, MINNESOTA THIS 20TH DAY OF APRIL, 1981. WILLIAM J NE , MAYOR ATTEST: CITY CLE - SIDNEY C. INMAN OO91A/1325A 1