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