HomeMy WebLinkAboutOrdinance 1266ORDINANCE NO. 1266
ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE
OF APPROXIMATELY $735,000 GENERAL OBLIGATION
TAXABLE REFUNDING BONDS, SERIES 1993A
The City of Columbia Heights does ordain:
1. It is hereby determined that:
(a) the City ia authorized by Minnesota Statutes, Chapter 475 (Act)
and Section 475.67, Subdivision 3, 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, ff 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) subdivision 4 of the Act permits the sale of refunding obligations
during the six month period prior to the date on which the obligations to be
refunded may be called for redemption;
(c) it is necessary and desirable to reduce debt service costs that the
City issue approximately $735,000 General Obligetion Taxable Refund!n~
Bonds, Series 1993A (Bonds) to refund certain outstanding general
obligations of the City;
(d) the outstanding bonds to be refunded (Refunded Bonds) consist
of the $1,100,000 General Obligation Taxable Tax Increment Bond of 1987,
Series A, dated August 1, 1987, of which $710,000 in prinaipal amount is
currently callable on August 1, 1993.
2. To provide moneys to refund the Refunded Bonds~ the City will issue
and sell Bonds in the approximate amount of $727,650. To provide in part the
additional interest required to market the Bonds at this time, additional Bonds will
be issued in the amount af $7,350. The excess of the purchase price of the Bonds
over the sum of $727,650 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 tssued~ sold and delivered in accordance with the terms of the following
Official Te~nns of Offering:
IIGS2324
C/,1S2-12
THE CITY HAS AUTHORIZED SPRINGS'rED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$73S,000°
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GENERAL OBUGATION TAXABLE REFUNDING BONDS, SERIES 1993A
DETAILS OF THE BONDS
The Bonds will be dated July 1, 1993, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1994. Interest will
be computed on the basis of a 360-day year of twelve 30-clay months. The Bonds will be
issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the
purchaser, and fully registered as to principal and interest. Principal will be payable at the main
corporate office of the registrar anc~ 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 February ! in the years end amounts as follows'
1994 $160,000 1996 $190,000
1995 $185,000
1997 $200,000
The City reserves the right, after the proposal is received, to increase or rec/uce tbs principal a/wount
of the Boncls offerecl for sale. Any such increase or rec/uction will I~e in a total amount not to exceed
$10,000 and will De mede ~n mul:iple$ of $5,000 m any of ~e maturities In the event the princ~pai
amounr of the Bonds rs increasecl or re~iuced, any premium offered or any discount taken will be
increasecl or reclucec/ Dy a percentage equal to the percentage Dy wl~,'cl~ me principal amount of the
Bonds ~s increasec~ or reducec/.
OPTIONAL REDEMPTION
The Bonds will not be sul~ject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith ancl
credit and power to levy direct general ecl valorem taxes. In addition the City will pledge tax
increment revenues generated from the City's "Downtown C.B.D. Revitalization Project." The
proceeds will be used to refuncl the 1994-1997 maturities, totaling $710,000, of the City's
General ODligation Taxable Tax Increment Bonds o! 1987, Series A.
TAXABILITY OF INTEREST
The interest to be paid on the Bonds is includable in gross income of tile recipient for IJn;te;I
States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate
·nd bank excise taxes measured by net income.
TYPE OF PROPOSALS
The Proposal shall be for not less than $727,650 and accrued interest on the total principal
amount of the Bonds. Rates shall be in integral multiples of 5/100 or 1/8 of 1% Rates m~st be
in ascending order. Bonds of the same maturity shall bear a single rate from the clare of the
Bonds to the clare of maturity. No conditiona! proposals will De accepted
-1-
3. Springsted Incorporated negotiated the sale and purchase of the Bonds
in accordance with the foregoing Terms with Millet' & Schroeder Financial, Inc. The
City Council will meet to consider the sale
of the Bonds and take any other appropriate action with raspect to the Bonds.
4. This ordinance shall be in full force and effect from and after thirty
(30) days after its passage.
First Reading: April 26, 1993
Second Reacting:
~ay 10, 1993
Offered By:
Nawrocki
Seconded By:
Peterson
Roll Call: A 1 1 a ye s
Date of Passage: May 10, 1993
Mayor
founcU Secreiar!/--
Attest:
City Clerk-Treasurer