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HomeMy WebLinkAboutOrdinance 1235Extract of Minutes of Meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota Pursuant to due call and notice thereof a special meeting of the City Council of the City of Columbia Heights, Anoka County, Minnesota, was held at the City Hall in the City on Tuesday, November 12, 1991, commencing at 7:00 P.M. The following members of the Council were present: Nawrocki, Clerkin, Ruettimann, Peterson~ Carlson and the following were absent: None The following ordinance was presented by Councilmember who moved its adoption: Nawrocki ORDINANCE NO. 1235 ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991A SN~24424 The City of Columbia Heights does ordain: 1. It is hereby determined that: (a) the City is authorized by Minnesota Statutes, Chapter 475 (Act) and Section 475.67 of the Act to issue and sell its general obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment; (b) it is necessary and desirable to reduce debt service costs that the City issue approximately $6,725,000 General Obligation Tax Increment Refunding Bonds, Series 1991A (Bonds) to refund certain outstanding general obligations of the City: (c) the outstanding bonds to be refunded (Refunded Bonds) consist of the $9,100,000 General Obligation Tax Increment Refunding Bonds, Series A, dated June 1, 1987, of which $6,550,000 in principal amount is callable on March 1, 1994. 2. To provide moneys to refund the Refunded Bonds, the City will issue and sell Bonds in approximately the amount of $6,624,125. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $100,875. The excess of the purchase price of the Bonds over the sum of $6,624,125 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: 8#~24424 TERMS AND CONDmONS $6,725,000* CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL OBUGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991A DETAILS OF THE BONDS The Bonds will be dated December 1, 1991, as the date of original issue, and will bear interest payable on March 1 and September 1 of each year, commencing September 1, 1992. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature March 1 in the years and amounts as follows: 1995 $890,000 1996 $965,000 1997 $955,000 1998 $990,000 1999 $945,000 2000 $900,000 2001 $860,000 2002 $220,000 The City reserves the right, prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $100,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. OPTIONAL REDEMPTION The City may elect on March 1, 1999, and on any day thereafter, to prepay Bonds due on or after March 1, 2000. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge income from tax increment districts in the City. The proceeds will be used to advance refund the 1995-2002 maturities of the City's General Obligation Tax Increment Refunding Bonds, Series 1987A, dated June 1, 1987. TYPE OFPROPOSAL The proposal shall be for not less than $6,624,125 and accrued interest on the total principal amount of the Bonds and shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check in the amount of $67,250, payable to the order of the City. The City will deposit the check, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. -i- AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of the proposal, in accordance with customary practice, will be controlling. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SE'i-rLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost 270 copies of the Official Statement and the addendum or addenda described above. -ii- 3. Springsted Incorporated is authorized and directed to negotiate the Bonds for sale to Miller & Schroeder Financial, Inc. in accordance with the foregoing Terms of Proposal. The City Council will meet as soon as possible after the City receives an offer from Miller & Schroeder Financial, Inc. to purchase the Bonds upon terms which are recommended by Springsted Incorporated, for the purpose of awarding the sale of the Bonds and taking any other appropriate action with respect to the Bonds. 4. This ordinance shall be in full force and effect from and after 30 days after its passage. Mayor Edward M, Carlson First Reading: October 28, 1991 Second Reading: November 12, 1991 Offered By: Naw rock i Seconded By: Ruettimann Roll Call: All ayes Date of Passage: November 12, 1991 ec~tary tO CounCil- SNG24424 CL162-8