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RES 1959-111 - 00013146RESOLUTION NO. 111 - 1959 - 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 Sewer & Water Improvement Project # 16 - 1958 has been estimated at $146,000.00. Section 2. It is now estimated that the sum of $11,000.00 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 projects. Section 3. There is hereby created Sewer & Water Improvemen Project # 16 - 1958 (temporary) which shall contain a construction account as a part thereof into which shall be paid all proceeds of temporary bonds issued pursuant to this resolution and similar 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 in Sewer & Water Improvement Project # 16 - 1958 Fund (temporary) a sinking find account, which account is said fund may and shall be termed as the Sinking Fund, into which fund shall be paid the proceeds of all special assessments lev ied against benefited property by reason of the making of said improvements as well as all other monies herein to be paid as provided by law and out of which shall be paid the princia, and interest on all temporary improvement bonds issued to finance said project. Section 5. It is hereby determined that the sum of $11,000.oO shall be borrowed to finance said Sewer & Water Improvement Project # 16 - 1958 with respect to costs of construc- tion and expenses necessarily incurred relative thereto to this date, and 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. Section 6. Said bonds shall be payable from the Sinking Fund of the following: Sewer & Water improvement Project # 16 -1958 but the City further recognizes its duty under the law, as pro- vided 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 a prior or prior to the maturity of the tmporary improve- ment bonds to the extent that the same cannot be paid out of funds available in the Sinking Fund of Sewer & Water Improvement Project # 16 - 1958 or out of other municipal funds which are properly RESOLUTION NO. 111 - 1959 Continued available and are appropriated by the Council for such purpose. Wtion 7. It is hereby determined to levy special assess- ments against benefited property by reason of the making of Sewer & Water Improvement Project # 16 - 1958 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 $ 11,000.00 shall be denominated Sewer & Water Improvement Project # 15 - 1958 Bond Series "D" Temporary shall be 11 in number and numbered from 1 to 11, inclusive, each in the denomination of $1,000.00 shall bear interest at the rate of 5 % per annum, payable semi - annually December 15, 1961, 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 of said bonds, the 15th day of December, 1961 shall mail notice of the call thereof to the holder, if know, 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 6431 University Avenue, city of Fridley, Fridley City Hall. section 9. Said temporary improvement bonds shall be mimeo- graphed and when so mimeographed shall have attached thereto an interest coupon which Bond and coupon shall be substantially in the following form: C RESOLUTION NO. 111 - 1959 SECTION 10. S:id Bonds and coupons attached shall be prepared under the direction of the City and shall be executed on be- half of the City by the signatures of the Mayor and Manager, and the corporate seal of the City shall be affixed thereto, and the appurten- ant interest coupon shall be mimeographed and authenticated, by the printed, engraved, lithographed, or facsimile signatures of said Mayor and Manager. tilhen said bonds have been executed and authenticated, they shall be delived by the Treasurer to the purchaser thereof, upon payment of the purchase price heretofore agreed upon and accrued in- terest 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 the 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 his bond register. SECTION 12. The bonds issued hereunder shall be payable from Sewer and Water Improvement Project 3r` 16 1958 Fund which is hereby created. The treasurer shall cause all monies received from the pro- ceeds 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 orinterest 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 pincipal 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 proceeds of said further definitive bonds shall be first used to pay the principal and interest as is then due and to redeem the tem- porary bonds issued hereunder. SECTION 14. The City Council has determinedthat not less than eighty per cent (80 %) 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 willdo 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 othe 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, 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 assess- ments 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 and interest of said bonds and whn due and that no ad valorem tax levy is accordingly required. rs RESOLUTION NO. 111 - 1959 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, cer- tified 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 them, and such certificates, certified copies and affidavits, in -- cluding any heretofore furnished, shall be deemed representa- tions of the City as to the correctness of all statements con - tained therein. PASSED AND ADOPTED BY THE CITY COUNCIL, CITY OF FRIDLEY, THIS 10TH DAY OF DEMCEMBER, 1959. it�ff 4 OR - Frank C. LaGragre, irer ATTEST: ITY CLERK - Marvin C.Brunsell