HomeMy WebLinkAboutOrdinance 370ORDIEL~CE NO. 370
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
$90,000 MUNICIPAL LIQUOR STORE BUILDING BONDS
THE COUNCIL OF THE CITY OF COLUMBIA HEIGHTS DOES ORDAIN:
Section 1. It is hereby found~ determined~ and declared: that this
City has for many years owned and operated a municipal on-sale and off-sale
liquor dispensary and has maintained a separate fund for the administration
of the receipts and disbursements relating thereto known as the "Liquor Store
Fund"; that said store h~s consistently produced substantial net profits in
each year of its operation~ which profits have been used and applied to pay
for various municipal services which would otherwise have been payable from
proceeds of general tax levies~ that the City has recently completed the
acquisition and improvement of a new store to house such dispensary and busi-
ness at a cost of more than $115,000, of which all but $90,O00has already
been paid from the net earnings of said dispensary; that it is necessary and
expedient at this time to borrow $90,000 to pay such remaining building costs)
that such money can most economically be borrowed upon bonds issued and sold
as hereinafter set forth~ and that the net revenues to be derived from opera-
tion of said dispensary and hereinafter irrevocably appropriated to the Sink-
ingFund for said bonds will be more than adequate to pay the interest on and
principal of such bonds as such payments fall due~ but that a saving in in-
terest costs on such borrowing can be made by pledging the full faith and
credit of the City to make good deficiencies, if any occur, in such net
revenues so appropriated.
Section 2. For the purpose of paying the remaining costs of said
liquor store building~ the City shall proceed to offer for sale, and shall
sell, execute, and deliver, its negotiable coupon general obligation-revenue
municipal building bonds in the aggregate principal amount of $90,000~ being
90 bonds in denomination of $1000 each, numbered serially from i through 90~
all dated as of December l, 1956, and which bonds shall mature serially in
order of serial numbers, lowest numbers first~ in the amount of $10,000 on
December I in each of the years 1957 through 1965, all without option of
prior payment. Said bonds shall bear interest at the lowest rate or average
rate obtainable upon the public sale thereof as hereinafter ordered. The
exact interest rate or rates, the place of payment of principal and interest,
the text of the bonds and interest coupons~ and the other formal details of
such bonds shall be prescribed by a resolution of this Council adopted after
receipt of bids for said bonds.
Section 3. There is hereby created a separate "Sinking Fund for
$90~000 Municipal Building Bonds". The moneys from time to time in said
Sinking Fund shall be used only to pay the interest on and principal of said
bonds as such payments become due and to maintains reserve for such payments,
save and except that,upon final paymen~ of all such bonds and interest accrued
thereon, the excess shall be transferred and appropriated to the General Fund~
and save and except that if any payment of principal of or interest on any
of said bonds shall fall due when moneys in said Sinking Fund are insufficient
therefor, such deficiency shall be met by transfer of moneys to said Sinking
Fund from~mnymother fund of the City, and the advance so made may be returned
to such other fund out of net earnings thereafter received in excess of those
herein and hereby appropriated to said Sinking Fund° There is hereby appro-
priated and irrevocably pledged to said Sinking Fund~ out of moneys now on
hand in said Liquor Store Fund, a sum equal to 105~ of the $10,000 install-
ment of principal to fall due on said bonds on December l; 1957, plus 105~
of the amount of interest to fall due on June l, 1957'and December l, 1957,
on all of said $90,000 of bonds% and there is hereby pledged and irrevocably
appropriated, out of each year's net revenues of said dispensary and as a
first charge thereon, a sum sufficient to mmke the credit balance therein
equal to 105~ of the sum of the then next maturing $10,000 installment of
principal on said bonds plus one year's interest on all bonds of said issue
then ra~aining unpaid. It is hereby estimated that such net revenues ~Lll
-1-
in each year be sufficient to maintain such credit balances in said fund~ but
the full faith and credit of the City are hereby irrevocably pledged to make
good any deficiencies in such revenues, and the City agrees that it will, if
necessary, levy and collect a general ad valorem tax on all taxable property
in the City for the full amount of each such deficiency, if any. Any excess
net revenues derived from said dispensary over and above the amounts pledged
and appropriated shall in each year be subject to transfer by the City Coun-
cil from said Liquor Store Fund to any other fund of the City to pay for any
general City services and improvements.
Section 4. This Council shall meet on Nov~nb~r 1B,1956, at 8:00
o~clock P. M., to receive bids for the purchase of said bonds. The City MAn-
ager shall cause notice thereof to be given~in substantially the form now on
file in his office, by publication thereof in one issue of the official news-
paper and in one issue of Commercial West, a financial periodical published
at Minneapolis~ Minnesota~ each of such publication~ to be made at least ten
days prior to said November
Section 5. This ordinance shall take effect thirty days after its
Final passage unless suspended under the referendum powers of the people,
and when so effective shall ratify~ confirm~ and validate any actions there-
tofore taken or things done by the City officers which would have been valid
and effective if done after such effective date.
First readying S~ptember ~ 1956
Second reading Sept~mbe~- 25, i956
Offered by
Seconded by
Rollcall:
Ay~s~
All