HomeMy WebLinkAboutResolution 82-55 82-S5
RESOLUTION NO.
RESOLUTION AUTHOR/ZING T~ ISSUANCE OF
$2,550,000 GENERAL OBLIGATION PERMANENT
IMPROVEMENT FUND BONDS OF 1982
PLEDGING FOR THE SECURITY THEREOF
SPECIAL ASSESSMENTS AGAINST
BENEFITED PROPERTY
iN THE CITY OF COLUMBIA HEIGHTS
BE IT RESOLVED by the City Council (the "Council") of the City of
Columbia Heights, Minnesota (the "City"), as follows:
1. That on the 23rd day of August, 1982, the Council carried out 'the
first reading of Ordinance No. 1012 authorizing the publication of the Official
Notiee of Bond Sale of the $2,550,000 General Obligation Permanent Improvement
Fund Bonds of 1982 (the "Bonds"), and soliciting bids for the purchase of the Bonds.
The Council carried out the second reading of Ordinance No. t012 on the lSth day
of September, 1982, and on that date adopted Ordinance No. 1012 on a vote of four
to one. The Bonds have a term of three years and are being issued in anticipation
of the issuance of definitive bonds.
2. That affidavits showing publication of notice of call for bids in the
official newspaper of the City and in Commercial West, have been examined and
have been placed on file. The following bids for the sale of the Bonds have been
received:
Bidder Interest Rate
Net Interest Cost
(Attached)
3. After considering the bids received, it has been determined that the
bid of The First National Bank of Saint Paul to purchase the Bonds of the City, in
accordance with the Notice of Bond Sale at the rates of interest hereinafter set
forth, and to pay therefor the sum of $2,525,137.50 is hereby found, determined
and declared to be the most favorable bid received, and is hereby accepted and the
Bonds are hereby awarded to said bidder. The Clerk-Treasurer of the City (the
"Clerk-Treasurer") is authorized and directed to retain the deposit of said bidder
and to forthwith return the good faith cheeks or drafts to the unsuccessful bidder.
The Bonds shall be payable as to principal and interest at The First National Bank
of Saint Paul in Saint Paul, Minnesola or any successor Paying Agent duly
appointed by the City.
4. The Bonds in negotiable coupon form shall be dated December 1, 1982
and shall be issued forthwith. The Bonds shall be 510 in number and numbered from
I to 510, inclusive, in the denomination of $5,000 each. The Bonds shall mature
December 1, 1985.
5. The Bonds are being issued for the purpose of providing funds to
defray the costs of making various improvements (the "Improvements"), pursuant to
Section 72 of the Charter of the City, as amended (the "Charter"). Special
assessments levied against benefited property pursuant to Chapter 8 of the Charter
will be pledged to the payment of principal of, premium, if any, and interest on the
Bonds. In compliance with Minnesota Statutes, Section 475.58, the estimated
collection of special assessments from the benefited property exceeds 20% of th~ose
eosats of the Improvements for which the Bonds are sold. The costs of the
Improvements shall include the costs enumerated in Minnesota Statutes, Section
475.65, and it is estimated that said costs will be at least equal to the amount of
the Bonds herein authorized. Work on the Improvements shall proceed with due
diligence to completion.
6. That the Bonds of this issue shall bear interest, payable December 1,
1983, and semiannually thereafter on June t and December t of each year, at the
rate of 6.70% per annum.
7. That the Bonds will be subject to redemption and prepayment at the
option of the City in inverse order of serial numbers on December 1, 1983, at a
price equal to 100.5% of their principal amount and accrued interest to the date of
redemption, and on any interest payment date thereafter, at a price equal to 1(i0%
of their principal amount and accrued interest to the date of redemption.
Published notice of redemption shall in each case be given in accordance with the
law, and at least thirty (30) days prior thereto mailed notice of redemption shall be
given to the paying agent where Bonds are payable, provided that published no~iee
alone shall be effective without mailed notice. Holders desiring to receive ma~ed
notice must register their names, addresses and bond serial numbers with the
Clerk-Treasurer.
8. That the Bonds and interest coupons to be issued hereunder shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF COLUMBIA HEIGHTS
$2,550,000
'P GENERAL OBLIGATION PERMANENT
IMPROVEMENT FUND TEMPORARY BONDS OF 1982
$5,000
KNOW ALL PEOPLE BY THESE PRESENTS that the City of Columbia
Heights, a duly organized and existing municipal corporation in the County of
Anoka, State of Minnesota, acknowledges itself to be indebted and for valise
received promises to pay to bearer upon presentation and surrender of this bond the
principal sum of
FIYE THOUSAND DOLLARS
on the first day of December, 1985, or on any earlier date on which it shall have
been duly called for redemp;~ion, and to pay interest thereon from the date hereof
until the principal sum is paid at the rate of percent
( %) per annum, payable on the first day of December, 1983, and semiannually
thereafter on the first day of June and the first day of December in each year in
accordance with and upon presentation and surrender of the interest eoupc~ns
attached hereto, as each severally become due. Both principal and interest are
payable at in ,
, or or any successor Paying Agent duly appointed by the City, in
any coin or currency of the United States of America which at the time of payment
is legal tender for public and private debts.
Bonds of this issue will be subject to redemption and prepayment at the
option of the City in inverse order of serial numbers on December 1, 1983 at a
price equal to 100.5% of their principal amount and accrued interest to the date of
redemption, and on any interest payment date thereafter, at a price equal to their
principal amount and accrued interest to the date of redemption. Published notice
of redemption shall in each case be given in accordance with law, and at least
thirty (30) days prior mailed notice of redemption shall be given to the Paying
Agent where said bonds are payable, provided that published notice alone shall be
effective without mailed notice. Holders desiring to receive mailed notice m~st
register their names, addresses and bond serial numbers with the Clerk of the City.
This bond constitutes a general obligation of the City, and the full faith and
credit and taxing powers of the City have been and are hereby irrrevocably pledged
to provide moneys for the prompt and full payment of the principal and interest
hereon as the same respectively become due. This bond is one of an issue in
aggregate principal amount of $2,550,000 all of like date and tenor, except as to
serial number, and this bond has been issued pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota and the Charter of the
City. This bond is payable out of the Permanent Improvement Bonds of 1982 Debt
Service Account of the City created pursuant to resolution of the City Couneii.
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IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
all acts, conditions and things required by the Constitution and laws of the State of
Minnesota and the Charter of the City, 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 this bond, together with all other debts of the City outstanding on the date
hereof and the date of its actual issuance and delivery, does not exceed any
constitutional, statutory or Charter limitation of indebtedness. The corporate seal
of the City has been omitted from this bond as permitted by law.
IN WITNESS WHEREOF, the City of Columbia Heights, Minnesota, by ~ts
City Council has caused this bond to be executed in its behalf by the facsimi~le
signatures of the Mayor and the City Manager of the City, and the manual
signature of one of them, and has caused the interest coupons to be executed and
authenticated by the facsimile signatures of said officers, all as of December 1,
1952.
(facsimile) (facsimile)
City Manager Mayor
4
(Certificate as to Legal Opinion)
We, the undersigned, Mayor and City Manager of the City of Columbia
Heights, Minnesota, hereby certify that except for the date line, the foregoing is ~
full, true and compared copy of the legal opinion of Holmes & Graven, Chartere~l
~of Minneapolis, Minnesota, which was delivered to us upon delivery of the bonds
and is now on file in the 'offices of the City of Columbia Heights, Minnesota.
(fascimile) (facsimile)
City Manager Mayor
(Form of Coupon)
No. $
On the first day of June (December) 19 , unless the bond described below
is called for earlier redemption, the City of Columbia Heights, Minnesota will pay
to bearer at in _,
,~ or any successor Paying Agent duly appointed by the City, the
sum shown hereon for interest then due on its General Obligation Permanent
Improvement Fund Bond of 1982, dated December 1, 1982.
(faesimfie) (faesimfle)
City Manager Mayor
9. That the Bonds shall be executed on behalf of the City by the
facsimile signatures of the Mayor and City Manager of the City, and by the man~[al
signature of one of said officers. The corporate seal shall be omitted from the
Bonds as permitted by law. The interest coupons appertaining thereto shall be
executed by the printed, engraved, lithographed or otherwise reproduced
facsimile signatures of the Mayor and City Manager of the City.
10. That the legal opinion of Holmes & Graven, Chartered of
Minneapolis, Minnesota~ respecting the validity and enforceability of the Bonds and
the tax exemption of the interest on the Bonds shall be reproduced on the reverse
side of each Bond and shall be certified by the facsimile signature of the .City
Mayor and the Manager. The Bonds when s~ prepared and executed shall be
delivered, together with the signed legal opinion of Holmes & Graven, Chartered
of Minneapolis, Minnesota, by the City Manager or other officer of the City to the
purchaser thereof upon receipt of the purchase price, and the said purchaser shall
not be obliged to see to the p. roper application thereof.
1t. That pursuant to Section 69 of the Charter there exists a sinking fund
for the payment when due of principal of and interest on all bonds and other
obligations when due, and a permanent improvement fund.
Capital Account. There is hereby created a special account in the City's
permanent improvement fund, designated the "Permanent Improvement Fund Bonds
of 1982 Capital Account" (the "Capital Account") to be held and administered by
the City separate and apart from all other accounts in the permanent improvement
fund. The Capital Account shall be maintained in the manner herein specified until
all of the Bonds herein authorized, the definitive permanent improvement fund
bonds, and any additional general obligation permanent improvement fund bon~ds
hereafter issued to complete the Improvements and the interest thereon have been
fully paid and the City has been fully reimbursed for any principal of and interest
on the Bonds paid by the City from general ad valorem taxes or from any other
source. There shall be deposited in the Capital Account the proceeds from the sale
of the Bonds, as well as special assessments levied with respect to the
Improvements and collected prior to completion of the Improvements and v~ot
deposited in the Debt Service Account created herein. All costs a.nd expenses of
making the Improvements, including the cost of any construction contracts
heretofore let, and all other costs incurred and to be incurred, of the kind
authorized in Minnesota Statutes, Section 475.65 and in the Charter, shall be paid
from the Capital Account. In addition, the monies in the Capital Account may be
used if necessary to pay interest on the Bonds due prior to the anticipated date of
commencement of the collection of sufficient taxes or special assessments herein
levied or covenanted to be levied, and if upon completion of the Improvements
there shall remain any unexpended monies in the Capital Account such monies
(other than special assessments) may be transferred by the Council to the account
of any other improvement instituted pursuant to the Charter. Any such
unexpended monies which are attributable to special assessments credited to the
Capital Account shall be u~sed only to pay principal and interest on the Bonds.
Monies in the Capital Account shall be used for no other purpose except as
provided by law.
Debt Service Account. There is hereby created a special account in the
sinking fund maintained by the City, designated the "Permanent Improvement Fund
Bonds of 1982 Debt Service Account" (the "Debt Service Account"). Principal of,
premiums, if any, and interest on the Bonds as the same become due shall be
payable, from the Debt Service Account There is hereby pledged and there shall
be credited to the Debt Service Account: (a) colleetions of special assessments
levied with respect to the Improvements such that together with any amounts tk~en
on deposit in the Debt Service Account shall be sufficient for the payment of
.interest to become due on the Bonds at the next two interest payment dates; (b) all
accrued interest received on delivery of the Bonds; (c) any collections of general ad
valorem taxes herein levied for the payment of the Bonds; (d) all funds remaining in
the Construction Account after completion of the Improvements and payment of
the costs thereof, not transferred to the fund of another improvement, and (e) the
proceeds of the definitive improvement bonds, or additional temporary
improvement bonds which will be sold, and in anticipation of which these Bonds are
issued. The Debt Service Account shall be used to pay principal and interest and
any premiums for redemption of the Bonds, and any other general obligation bonds
of the City hereafter issued by the City and made payable from the Debt Serv.[ce
Account as provided by law.
Reserve Aeeount. There is hereby created an additional account in the
sinking fund of the City, designated the "Permanent Improvement Fund Bonds of
1982 Reserve Account" (the "Reserve Account") into which shall be credited all
prepayments of special assessments levied with respect to the Improvements.
Monies in the Reserve Account may be used, if necessary, to pay interest on ~he
Bonds on any interest payment date and shall be used to pay principal on the Bonds
on December 1, 1985, or upon redemption of the Bonds.
12. That to provide moneys for the payment of interest on the Bonds
there is hereby levied upon all of the taxable property in the City a direct annual
ad valorem tax which shall be spread upon the tax rolls and collected with and as
part of, other general property taxes in said City for the years and in the amounts
as follows:
Levy Year Collection Year Amount Levied
1983 1984 $ 358,785.00
1984 1985 179,393.00
Such trax levies are such that if collected in full they, together with
estimated collections of special assessments and the definitive permanent
· improvement fund bonds or additional permanent improvement bonds herein
pledged for the payment of the Bonds, will produce at least five percent (5%}: in
excess of the amount needed to meet when due the principal and interest payments
on the Bonds.
Said tax levies shall be irrevocable so long as any of the Bonds are
outstanding and unpaid, provided that the City reserves the right and power to
reduce the levies in the manner and to the extent permitted by Minnesota Statutes.
Section 475.61, subdivision 3.
The full faith, credit and taxing powers of the City shall be and are hereby
irrevocably pledged for the prompt and full payment of the principal of ~nd
interest on the Bonds, as the same respectively become due and payable.
13. That interest earnings from the investment of money in the Debt
Service Account, the Construction Account and the Reserve Account shall remain
in the respective Accounts.
14. The City hereby covenants and agrees that it will will do and perform
as soon as they may be done, all acts and things necessary for the final and walid
undertaking of the Improvements and levy of special assessments, and in the event
that any assessment be at any time held invalid with respect to any lot, piece or
parcel of land due to any error, defect, or irregularity, in any action or proceedings
taken or to be taken by the City or th~s Council or any of the City officer~ or
employees, either in the making of such assessments or in the performance of any
condition precedent thereto, the City and this Council will forthwith do ail such
further acts and take all such further proceedings as may be required by Ia~~ to
make such assessments a valid and binding lien upon such property.
At the time the assessments are in fact levied the City Council shall, based
on the then current estimated collections of such assessments, make any
adjustments in any ad valorem taxes required to be levied in order to assure that
the City continues to be in compliance with Minnesota Statutes, Section 475~6t,
Subd. 1.
15. The Clerk-Treasurer 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 shall be required, and to obtain from such
County Auditor his or her certificate that the Bonds have been entered in the
Auditor's Bond Register.
16. The officers of the City are hereby authorized and directed to
prepare and furnish to the purchaser of the Bonds, and to the attorneys approving
the legality of the issuance thereof, certified copies of all proceedings and recc~rds
of the City relating to the Bonds and to the financial condition and affairs of the
City, and such other affidavits, certificates and information as are required to
show the facts relating to the legality and marketability of the Bonds as the same
appear from the books and ~eeords under their custody and control or as other~ise
known to them, and all such certified copies, certificates and affidavits, including
any heretofore furnished, ~hall be deemed representations of the City as to the
facts recited therein.
The motion for the adoption of the foregoing resolution was duly seconded
by Council member Hov]and and upon vote being taken thereon, the follo~.ing
voted in favor thereof:
Mayor Nawroeki
Council Member Hentges
Council Member Hovland
Council Member Norberg
Council Member Petkoff
and none voted against the same.
Whereupon said resolution was declared duly passed and adopted .~'
( L kill~ /
B~UCE G, NA~ROCKI~ NAYO~
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