HomeMy WebLinkAboutJune 23, 1993 Special MeetingNOTICE OF OFFICIAL MEETING
Notice is hereby given that an official meeting
is to be held in the
City of Columbia Heights
as follows:
Meeting of:
MAYOR, CITY COUNCIL, AND CITY MANAGER
Date of Meeting:.
WEDNESDAY, JUNE 23, 1993
Time of Meeting:
3:00 PM
Location of Meeting:.
CITY HALL CONFERENCE ROOM
Purpose of Meeting:.
SPECIAL MEETING FOR APPROVAL OF BOND SALE
The City of Columbia Heights does not discriminate on the basis of disability in the
admission or access to, or treatment or employment in, its services, programs, or
activities. Upon request, accommodation will be provided to allow individuals with
disabilities to participate in all City of Columbia Heights' services, programs, and
activities. Auxiliary aids for handicapped persons are available upon request when the
request is made at least 96 hours in advance. Please call the City Council Secretary at
782-2800, Extension 209, to make arrangements. (TDD/782-2806 for deaf only)
CITY COUNCIL LETTER
SPECIAL MEETING OF: VUNE 23, 1993
AGENDA SECTION: ORDINANCES & ORIGINATING DEPT.: CITY MANAGER
RESOLUTIONS FINANCE APPROVAL
NO: 6
ITEM: TAXABLE GENERAL OBLIGATION BY: WILL~IA~?~RITE~ BY:
REFI3NDING BONDS, SERIES
1993A DATE: JUNE 22, 1993
NO:
Attached is a draft resolution for the sale of $735,000 in taxable general obligation refunding bonds.
The first reading of Ordinance #1266 for the sale of these bonds was held on April 26, 1993. The
second reading was held on May 10, 1993. A spedal meeting was called for June 23, 1993, at 3:00
p.m. to adopt the resolution for the sale of the refunding bonds. Dan Hartrnan from Springsted and
Cleo Rasmussen from Miller, Schroeder will be present at the special meeting to explain to the City
Council the sale and savings.
RECOMMENDED MOTION: Move to waive the reading of the resolution, there being ample copies
available to the public.
RECOMMENDED MOTION: Move to adopt Resolution #93- , being a resolution authorizing the
sale of $735,000 in Taxable General Obligation Refunding Bonds, Series 1993A..
WE:dh
9306225
Attachment:
Draft Resolution
COUNCIL ACTION:
STEFANIE N. GALEY
A~torney at Law
Direct Dial (612) 337-9212
HOLMES & GRAVEN
CHARTERED
470 Pillsbury Center. Minneapolis, Minnesota 55402
Telephone (612) 337-9300
Fae~imik (612) 337-9310
June 17, 1993
Nancy Lan~T~ess
Springsted Incorporated
85 East Seventh Place, #100
St. Paul, MN 55101
$735,000
City of Columbia Heights, Minnesota
Taxable General Obligation Refundlr,~ Bonds
Series 1993A
Dear Nancy:
Enclosed please find the form of sale resolution for the above-capl~oned bonds.
understand that a special meeting has been called for Wednesday, June 2Srd, for the
purpose of taking action on this matter. You will be providing the City with a
completed sale resolution (amounts and interest rates filled in) at that time.
Attachment A to this resolution is the notice of call for the 1987 Bonds, which needs
to be published by the end of this month.
Please call if I can be of any further assistance.
Sincerely,
t. Stefa~ie N. Galey
SNG/bjm
Enclosure
cc (w/enc): Bill Elrtte
(w/o enc): Cleo Rasmussen
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~r.162-12
Extract of Minutes of Meeting
of the City Council of the City of
Columbia Heights, Anoka County, Miuuesota
Pursuant to due call and notice thereof, a special meeting of the City Council
of the City of Columbia Heights, Minnesota, was duly held in the City Hall in said
City on Wednesday, June 23, 1993, commencing at ~ .M.
The following members were present:
and the following were absent:
The Mayor announced that the next order of business was consideration of the
sale of the City's $735,000 Taxable General Obligation Refunding Bonds, Series
1993A.
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CZ,:162-12
Member then introduced the following written resolution
and moved its adoption the reading of which had been dispensed with by unanimous
consent:
RESOLUTION NO.
A RESOLUTION AWARDING THE SALE OF $
TAXABLE GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993A;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Columbia Heights, Anoka
County, Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. The proposal of Miller & Schroeder Financial, Inc. (Purchaser) to
purchase $ Taxable General Obligation Refunding Bonds, Series
1993A (Bonds) of the City described in the Terms of Proposal thereof is determined
to be a reasonable offer and is accepted, the proposal being to purchase the Bonds
at a price of $ plus accrued interest to date of delivery, for Bonds
bearing interest as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1994 1996
1995 1997
Net effective interest rate:
1.02. The Mayor and City Manager are directed to execute a contract with the
Purchaser on behalf of the City.
1.03. The City will forthwith issue and sell the Bonds in the total principal
amount of $ , originally dated July 1, 1993, in the denomination of
$5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing
interest as above set forth, and which mature serially on February 1 without option
of prior payment in the years and amounts as follows:
Year Amount Year Amount
1994 1996
1995 1997
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds shall be issued only in fully registered
form. The interest thereon and, upon surrender of each Bond, the principal amount
thereof, is payable by check or draft issued by the Registrar described herein.
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2.02. Dates ~ Interest Payment Dates. Each Bond will be dated as of the last
interest payment date preceding the date of authentication to which interest on the
Bond has been paid or made available for payment, unless (i) the date of
authentication is an interest payment date to which interest has been paid or made
available for payment, in which case such Bond shah be dated as of the date of
authentication, or (ii) the date of authentication is prior to the first interest
payment date, in which case such Bond will be dated as of the date of ori~nal issue.
The interest on the Bonds is payable on February 1 and August 1 of each year,
comraencing February 1, 1994, to the 6wrier of record thereof as of the close of
business on the fifteenth day of the immediately preceding month, whether or not
such day is a business day.
2.03. Registration. The City will appoint, and shah maintain, a bond
registrar, transfer agent, authenticating agent and paying agent (Registrar). The
effect of registration and the rights and duties of the City and the Registrar with
respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate
trust office a bond register in which the Registrar provides for the
registration of ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly
endorsed by the registered owner thereof or accompanied by a written
instrument of transfer, in form satisfactory to the Registrar, duly executed
by the registered owner thereof or by an attorney duly authorized by the
registered owner in writing, the Registrar will authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Bonds
of a like aggregate principal amount and maturity, as requested by the
transferor. The Registrar may, however, close the books for registration of
any transfer after the fifteenth day of the month preceding each interest
payment date and until such interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the
registered owner for exchange the Registrar will authenticate and deliver one
or more new Bonds of a like aggregate principal amount and maturity, as
requested by the registered owner or the owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon any transfer or exchange
will be promptly cancelled by the Registrar and thereafter disposed of as
directed by the City.
(e) Impreper or Unauthorized Transfer. When a Bond is presented
to the Registrar for transfer, the Registrar may refuse to transfer the Bond
until the Registrar is satisfied that the endorsement on the Bond or separate
instrument of transfer is valid and genuine and that the requested transfer
is legally authorized. The Registrar will incur no liability for the refusal, in
good faith, to make tr~n~fera which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat
the person in whose name a Bond is registered in the bond register as the
absolute owner of the Bond, whether the Bond is overdue or not, for the
8~*G54615
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purpose of receiving payment of, or on account of, the principal of and
interest on the Bond and for all other purposes, and payments so made to a
registered owner or upon the owner's order wili be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent of the sum or
sums so paid.
(g) Taxes, Fees and Charges. For a transfer or exchange ~ Bonds,
the Registrar may impose a charge' upon the owner thereof sufficient to
reimburse the Registrar for any tax, fee or other governmental charge
required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost~ Stolen or Destroyed Bonds. If a Bond becomes
mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond
of like amount, number, maturity date and tenor in exchange and substitution
for and upon cancellation of the mut~f!sted Bond or in lieu of and in
substitution for any Bond destroyed, stolen or lost, upon the payment of the
reasonable expenses and charges of the Registrar in connection therewith;
and, in the case of a Bond destroyed, stolen or lost, upon filing with the
Registrar of evidence satisfactory to it that the Bond was destroyed, stolen
or lost, and of the ownership thereof, and upon furnishing to the Registrar
of an appropriate bond or indemnity in form, substance and amount
satisfactory to it and as provided by law, in which both the City and the
Registrar must be named as obligees. Bonds so surrendered to the Registrar
will be cancelled by the Registrar and evidence of such cancellation must be
given to the City. If the mutilated, destroyed, stolen or lost Bond has
already matured or been called for redemption in accordance with its terms it
is not necessary to issue a new Bond prior to payment.
2.04. Appointment of Initial Registrar. The City appoints
, , Minneso~, as the initial
Registrar. The Mayor and the City Manager are authorized to execute and deliver,
on behalf of the City, a contract with the Registrar. Upon merger or consolidation
of the Registrar with another corporation, if the resulting corporation is a bank or
trust company authorized by law to conduct such business, such c.orporation is
authorized to act as successor Registrar. The City agrees to pay the reasonable and
customary charges of the Registrar for the services performed. The City reserves
the right to remove the Registrar upon 30 days' notice and upon the appointment of
a successor Registrar, in which event the predecessor Registrar must deliver ali
cash and Bonds in its possession to the successor Registrar and must deliver the
bond register to the successor Registrar. On or before each principal or interest
due date, without further order of this Council, the Clerk-Treasurer must transmit
to the Registrar moneys sufficient for the payment of all principal and interest then
due.
2.05. Execution~ Authentication and Delivery. The Bonds will be prepared
under the direction of the Manager and executed on behalf of the City by the
signatures of the Mayor and the M_~_n_ager, provided that all signatures may be
printed, engraved or lithographed facslmi]es of the originals. In case any officer
whose signature or a facsimile of whose signature appears on the Bonds ceases to be
such officer before the delivery of any Bond, such signature or facsiml]e will
nevertheless be valid and sufficient for all purposes, the same as ff the officer had
remained in office until delivery. Notwithstanding such execution, a Bond will not
be valid or obligatory for any purpose or entitled to any security or benefit under
this Resolution unless and until a certificate of authentication on the Bond has been
81~G54615
CZ,162-12
duly executed by the manual signature of an authorized representative of the Regis-
trar. Certificates of authentication on different Bonds need not be signed by the
same representative. The executed certificate of authentication on each Bond is
conclusive evidence that it has been authenticated and delivered under this Resolu-
tion. When the Bonds have been so prepared, executed and authenticated, the
Manager shall deliver the same to the Purchaser upon payment of the purchase price
in accordance with the contract of sale heretofore made and executed, and the
Purchaser is not obligated to see to the .application of the purchase price.
2.06. Temporary. Bonds. The City may elect to deliver in lieu of printed
definitive Bonds one or more typewritten temporary Bonds in substantially the form
set forth in Section 3 with such changes as may be necessary to reflect more than one
maturity in a single temporary bond. Upon the execution and delivery of definitive
Bonds the temporary Bonds will be exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed in substantially the following form:
[Face of the Bond]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF COLUMBIA HEIGHTS
TAXABLE GENERAL OBLIGATION REFUNDING BOND, SERIES 1993A
Date of
Rate Maturity Original Issue CUSIP
July l, 1993
The City of Columbia Heights, Minnesota, a duly organized and existing
municipal corporation in Anoka County, Minnesota (City), acknowledges itself to be
indebted and for value received promises to pay to
or registered assigns, the principal sum of $ on the maturity date
specified above without option of prior payment, with interest thereon from the date
hereof at the annual rate specified above, payable February 1 and August 1 in each
year, commencing February 1, 1994, to the person in whose name this Bond is regis-
tered at the close of business on the fifteenth day (whether or not a business day)
of the immediately preceding month. The interest hereon and, upon presentation
and surrender hereof, the principal hereof are payable in lawful money of the United
States of America by check or draft bY ,
Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating
Agent, or its designated successor under the Resolution described herein. For the
8NG54615
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prompt and full payment of such principal and interest as the same respectively
become due, the full faith and credit and taxing powers of the City have been and
are hereby irrevocably pledged.
Additional provisions of this Bond are contained on the reverse hereof and
such provisions for all purposes have the same effect as though fully set forth in
this place.
This Bond is not valid or obligatory for any purpose or entitled to any
security or benefit under the Resolution until the Certificate of Authentication
hereon has been executed by the Bond Registrar by manual signature of one of its
authorized representatives.
IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minne-
sota, by its City Council, has caused this Bond to be executed on its behalf by the
facsimile signatures of the Mayor and City Manager and has caused this Bond to be
dated as of the date set forth below.
Dated:
CITY OF COLUMBIA HEIGHTS,
MINNESOTA
(Facsimile)
City Manager Mayor
(Facsimile)
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned
within.
By
Authorized Representative
[Reverse of the Bond]
This Bond is one of an issue in the aggregate principal amount of $
all of like original issue date and tenor, except as to number, maturity date, and
interest rate, all issued pursuant to a resolution adopted by the City Council on
June 23, 1993 (the Resolution), for the purpose of providing money to refund the
outstanding principal amount of certain general obligation bonds of the City,
pursuant to and in full conformity with the Constitution and laws of the State of
Minnesota, and the City's home rule charter, including l~{nnesota Statutes, Chapters
469 and 475, and the principal hereof and interest hereon are payable primarily from
from tax increments resulting from increases in the taxable value of real property
in a tax increment financing district in the City, as set forth in the Resolution to
which reference is made for a full statement of rights and powers thereby conferred.
The full faith and credit of the City are irrevocably pledged for payment of this
Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable
property in the City in the event of any deficiency in tax increments and taxes
pledged, which taxes may be levied without limitation as to rate or amount. The
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Bonds of this series are issued only as fully registered Bonds in denomi~Aations of
$5,000 or any integral multiple thereof of single maturities.
As provided in the Resolution and subject to certain limitations set forth
therein, this Bond is transferable upon the books of the City at the principal office
of the Bond Registrar, by the registered owner hereof in person or by the owner's
attorney duly authorized in writing upon surrender hereof together with a w~itten
instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or the owner's attorney; and may also be surrendered in exchange
for Bonds of other authorized denominations. Upon such transfer or exchange the
City will cause a new Bond or Bonds to be issued in the name of the transferee or
registered owner, of the same aggregate principal amount, bearing interest at the
same rate and maturing on the same date, subject to reimbursement for any tax, fee
or governmental charge required to be paid with respect to such transfer or
exchange.
The City and the Bond Registrar may deem and treat the person in whose name
this Bond is registered as the absolute owner hereof, whether this Bond is overdue
or not, for the purpose of receiving payment and for all other purposes, and neither
the City nor the Bond Registrar shall be affected by any notice to the contrary.
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 City's home rule charter to be done, to exist, to happen and to be
performed preliminary to and in the issuance of this Bond in order to make it a valid
and binding general obligation of the City in accordance with its terms, have been
done, do exist, have happened and have been performed as so required, and that
the issuance of this Bond does not cause the indebtedness of the City to exceed any
constitutional, statutory or charter limitation of indebtedness.
(Form of certificate to be printed on the reverse side of each Bond, following
a full copy of the legal opinion. )
I certify that the above is a full, true and correct copy of the legal opinion
rendered by bond counsel on the issue of Bonds of the City of Columbia Heights,
Minnesota, which includes the within Bond, dated as of the date of delivery of and
payment for the Bonds.
(Facsimile Signature)
City Manager
8~{G5463.5
r"r.162-12
The following abbreviations, when used in the inscription on the face of this
Bond, shall be construed as though they were written out in full according to
applicable laws or regulations:
TEN COM -- as tenants
in common
UNIF GIFT MIN ACT
Custodian
(Cust) (Minor)
TEN ENT -- as tenants
by entireties
under Uni~'orm Gifts or
Transfers to Minors
JT TEN --
as joint tenants with
right of survivorship and
not as tenants in common
Act .
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights
thereunder, and does hereby irrevocably constitute and appoint
attorney to transfer the said Bond on the books kept for
registration of the within Bond, with full power of substitution in the premises.
Dated:
Notice:
The assignor's signature to this assignment must correspond
with the name as it appears upon the face of the within Bond in
every particular, without alteration or any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust company or by a
brokerage firm having a membership in one of the major stock exchanges.
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the assignee requested below is provided.
Name and Address:
(Include information for aU joint owners if
this Bond is held by joint account. )
Please insert social security or other
identifying number of assignee
3.02. The City M~n-ger is authorized and directed to obtain a copy of the
proposed approving legal opinion of Holies & Graven, Chartered, Minneapolis,
Minnesota, which is to be complete except as to dating thereof and cause the opinion
to be printed on each Bond, together with a certificate to be signed by the facsimile
signature of the Manager in substantially the form set forth in the form of Bond.
The Manager is authorized and directed to execute the certificate in the name of the
City upon receipt of the opinion and to file the opinion in the City offices.
Section 4. Payment ~ Security ~ Pledges and Covenants.
4.01. (a) The Bonds are payable from the Taxable General Obligation Re-
funding Bonds, Series 1993A Debt Service Account (Debt Service Account) hereby
created within the City's Project Account created on the official records of the City
by resolution adopted on August 11, 1980, and the proceeds of tax increments
resulting from increases in the taxable value of real property in the Sullivan Lake
Tax Increment Financing District (District) and the Downtown CBD Revitalization
Project (Project) which are pledged to the City pursuant to a tax increment pledge
agreement between the City and the Housing and Redevelopment Authority in and
for the City of Columbia Heights, in an amount sufficient to pay principal of and
interest on the Bonds are hereby pledged to the Debt Service Account.
(b) The debt service account heretofore established for the Refunded Bonds
as defined in the resolution providing for the issuance and sale of the Bonds, is
terminated from and after August 1, 1993, and all monies therein are hereby directed
to be transferred on that date to the Debt Service Account herein created. If any
payment of principal or interest on the Bonds shall become due when there is not
sufficient money in the Debt Service Account to pay the same, the Clerk-Troasurer
shall pay such principal or interest from the general fund of the City, and the
general fund shall be reimbursed for such advances out of the proceeds of Taxes
levied, and tax increments when collected.
(c) There is hereby appropriated to the Debt Service Account any amount
over the minimum purchase price of the Bonds paid by the Purchaser, all accrued
interest paid by the Purchaser upon closing and delivery of the Bonds, and the
proceeds of any taxes from time to time levied for the payment of the Bonds.
4.02. The Clerk-Treasurer is directed to 'file a certified copy of this
resolution with the Property Records and Taxation Division Manager and to obtain
the certificate required by Section 475.63 of the Act.
4.03. It is hereby determined that upon the receipt of proceeds of the Bonds
(P~o. ceeds) for payment of the Refunded Bonds that an irrevocable appropriation to
the debt service account for the Refunded Bonds sbsll have been made within the
meaning of Section 475.61, Subdivision 3 of the Act and the Clerk-Treasurer is
hereby authorized and directed to certify such fact to and request the Property
Records and Taxation Division Manager to cancel any and all tax levies made by the
resolution authorizing and approving the Refunded Bonds.
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4.04. It is hereby determined that the estimated collection of the tax
increments will produce at least five percent in excess of the amount needed to meet
when due, the principal and interest payments on the Bonds and that no tax levy is
needed at this time. The full faith and credit and taxing powers of the City are
irrevocably pledged for the prompt and full payment of principal of and interest on
the Bonds.
Section 5. Refunding; Findings; Redemption of Refunded Bonds.
5.01. The Refunded Bonds are the Gene~l Obligation Taxable Tax Increment
Bonds, Series 1987A, of the City, dated August 1, 1987, of which $710,000 in
p~4ncipal amount is callable on August 1, 1993. It is hereby found and determined
that based upon information presently available from the City's financial advisers,
the issuance of the Bonds is consistent with covenants made with the holders thereof
and is necessary and desirable for the reduction of debt service cost to the
municipality.
5.02. It is hereby found and determined that the Proceeds will be sufficient
to prepay all of the p~_ncipal of, interest on and redemption premium (if any) on the
Refunded Bonds.
5.03. The Refunded Bonds maturing on February 1, 1994 and thereafter shall
be redeemed and prepaid on August 1, 1993. The Refunded Bonds shall be redeemed
and prepaid in accordance with their terms and in accordance with the terms and
conditions set forth in the forms of Notice of Call for Redemption attached hereto as
Attachment A which terms and conditions are hereby approved and incorporated
herein by reference. The City is hereby author4zed and directed to forthwith
publish the Notice of Call for Redemption in a publication qualified under Section
475.54 of Minnesota Statutes and to send written notices of call to the pa~ing agent
for the Refunded Bonds, provided that published notice alone shall be effective.
5.04. When all Bonds and all interest thereon, have been discharged as
provided in this section, all pledges, covenants and other rights ~anted by this
resolution to the holders of the Bonds shall cease, except that the pledge of the full
faith and credit of the City for the prompt and full payment of the principal of and
interest on the Bonds shall remain in full force and effect. The City n~y discharge
all Bonds which are due on any date by depositing with the Registrar on or before
that date a sum sufficient for the payment thereof in full. If any Bond should not
be paid when due, it may nevertheless be discharged by deposit~ng with the
Registrar a sum sufficient for the payment thereof in full with interest acorued to the
date of such deposit.
Section 6. Authentication of Tr~nscr41~t.
6.01. The officers of the City are authorized a_~d directed to prepare and
furnish to the Purchaser and to the attorneys approving the Bonds, certified copies
of proceedings and records of the City relating to the Bonds and to the financial
condition and affairs of the City, and such other oertificates, affidavits and
t~nscripts as may be required to show the facts within their _knowledge or as shown
by the books and records in their custody and under their control, relating to the
validity and marketability of the Bonds and such instruments, including any
heretofore furnished, shall be deemed representations of the City as to the facts
stated therein.
IB~G54615
6.02. The Mayor and City Manager are hereby authorized and directed to
certify that they have examined the Official Statement prepared and circulated in
connection with the issuance and sale of the Bonds and that to the best of their
knowledge and belief the Official Statement is a complete and accurate representation
of the facts and representations made therein as of the date of the Official Statement.
The motion for the adoption of th~ foregoing ~esolut/on was duly seconded by
Member ~ and upon vote being taken thereon ~ the following
voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
8RG54615
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STATE OF MINNESOTA )
)
COUNTY OF ANOKA ) SS.
)
CITY OF COLUMBIA HEIGHTS )
I, the undersigned, being the duly qualified and acting Clerk-Treasurer of
the City of Columbia Heights, Anoka County, Minnesota, do hereby certify that I
have carefully compared the attached and foregoing extract of ~,inutes of a special
meeting of the City Council of the City held on June 9.3, 1993 with the original
minutes on file in my office and the extract is a full, t~ue and correct copy of the
minutes insofar as they relate to the issuance and sale of $ Taxable
General Obligation Refunding Bonds, Series 1993A of the City.
WITNESS My hand officially as such Clerk-Treasurer and the coz-porate seal
of the City this day of , 1993.
(SEAL)
City Clerk-Treasurer
Columbia Heights, Minnesota
~r.162-~.2
NOTICE OF CALL FOR REDEMPTION
ATTACHMENT A
$1,100,000 GENERAL OBLIGATION TAXABLE TAX
INCREMENT BONDS, SERIES 1987A
CITY OF COLUMBIA HEIGHTS
ANOKA COUNTY, MINNESOTA
CUSIP Number Rate
Principal Called
Maturity Date
Februaz~r
197684 HV8 8.90% $155,000 1994
197684 HW6 9.00 170,000 1995
197684 HX4 9.10 185,000 1996
197684 HY2 9.10 200,000 1997
NOTICE IS HEREBY GIVEN that the City of Columbia Heights, Anoka County,
Minnesota, has called for redemption on August 1, 1993, the aggregate principal
amount outstanding of its General Obligation Taxable Tax Increment Bonds, Series
1987A, dated August 1, 1987.
The Bonds are being ~edeemed at a price of par plus accmied interest to the
redemption date. On said date the principal amount and interest of each bond to be
redeemed shall become due and payable, and from and after said date interest
thereon will cease to accrue and be payable.
A Form W-9, Payer's Request for Taxpayer Identification Number, must be
completed and returned with the called bond or 31% of the bond redemption proceeds
wili be withheld. Payment of principal and accrued interest to the redemption date
of the bonds to be redeemed will be made on and after August 1, 1993 upon receipt
of said bond, together with the completed Form W-9 to the following address:
Norwest Bank Minnesota, N.A.
Attention: Corporate Trust Operations
P.O. Box 514
255 Second Avenue South
Minneapolis, Minnesota 55479-0113
If you request payment of principal and/or interest via wire transfer please be
advised there is a $25.00 fee which will be deducted from your payment.
BY ORDER OF THE CITY COUNCIL
By /s/ William Elrite
City Clerk-Treasurer
City of Columbia Heights, l~i~nesota
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CITY OF COLUMBIA HEIGHTS
590 40th AVenue N. E.
Columbia Heights, MN 55421-3878
(612) 782-2800
Mayor
Donald J. Murzyn, Jr.
Councilmembers
Scan T. Clerkin
Bruce G. Nawrocki
Gary L. Peterson
Robert W. Ruettimann
City Manager
Patrick Hemges
May 13, 1993
Mr. Dan Hartman
Springsted
85 East 7th Place, Ste. 100
St. Paul, Minnesota 55101-2143
Dear Dan:
Enclosed is an excerpt from Section 72 of the Columbia Heights City Charter
regarding bonded debt and debt limits. The portion we discussed on the telephone
on May 4th is the second paragraph on page 18.
Before the actual sale of the next bond issue, we would like a written opinion from
the bond counsel or your office regarding the City's requirement to publish a one
week's notice of the time and the place of the bid opening. There are two concerns
I have with this section: lb'st, it relates to bids and not a negotiated sale. I do not
know if this is enough of a difference to exempt us from the publication requirement.
Also, are there any State statutes that would take precedence over this section of the
Charter and exempt us from the one week publication?
At the ~tast City Council meeting, Bruce Nawrocki questioned this section of the
Charter related to the bond sale, and would like a written response prior to the bond
sale.
Thank you for your attention to this matter.
Sincerely,
William Elrite
Finance Director
WE:dn
9305135
cc: Pat Hentges, City Manager
Attachment: Excerpt, Section 72, City Charter
"SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER
Section 70. RECEIPTS TO GO TO CIIT TREASURER. All receipts of money
belonging to the city, or any branch thereof, excepting only those funds
collected by the county treasurer, shall be paid into the city treasurer by the
person authorized to receive the same at the close of each business day. Ail
such monies, and also all monies received upon tax settlements from the county
treasurer, shall be deposited as soon as received in the bank or banks approved
by the city council. Any person in the employ of the city guilty of a viola-
tion of this provision shall be liable to be reduced in rank and salary or to
be dismissed from office or position, as the council may determine after a
hearing.
Section 71. ACCOUNTS AND BEPORTS. The city manager shall be the chief
accounting officer of the city. The council may enforce the obligation of the
city manager to use generally accepted accounting principles in all accounting
obligations in this chapter. Such obligation shall include a thorough monthly
report and an annual report covering the entire financial operation of the city
for the past year which the city manager must provide to the council on or be-
fore March 30 of each year. The annual report shall include a comparison of
actual expenditures and actual revenues for each fund, divided into such
categories as the budget presented by the city manager for the subject fiscal
year, along with such additional information as required by the council.
Section 72. BONDED DEBT AND DEBT LIMIT. Bonds may be issued by four-
fifths vote of the council without the previous approval of the voters of the
said city, but subject to the referendum powers of the people, for the purchase
of real estate; for new construction; for new equipment; for all improvements
of a lasting character; for the purchase or construction of public waterworks
or for the enlargement of the same and for the protection and distribution of
the water supply; for the establishment of public lighting, heating, or power
plants, and for their acquisition and equipment by purchase or otherwise; for
the acquisition or construction of street railways, telegraph or telephone
lines, or any other public convenience from which a revenue is or may be
derived; for the creation or maintenance of a permanent improvement fund; for
the purchase or erection of needful public buildings; for establishing and
maintaining garbage crematories, or other means of garbage disposal; for the
establishment ahd maintenance of hospitals, schools, libraries, museums, art
galleries and cemetaries; for the construction of sewers, subways, streets,
sidewalks, pavements, culverts, and parks and parkways and play grounds; for
changing, controlling or bridging streams and other waterways within the
corporate limits and constructing and repairing roads and bridges within two
miles of the corporate limits thereof; for the purpose of refunding outstanding
bonds; for the purpose of funding floating indebtedness; and for all purposes
which may be authorized by the laws of the State of Minnesota right of the city
to issue bonds under the authority of any law heretofore and this section of
the city's charter shall not be construed to limit the passed and adopted by
the State of Minnesota, but no bonds shall ever be issued to pay current ex-
penses or to refund emergency debt certificates. The total bonded indebtedness"
of the city shall never exceed ten per cent of the last assessed valuation of
the taxable property therein, including monies and credits, but in computing
the total bonded indebtedness, emergency debt certificates and certificates of
indebtedness or bonds issued before or after the adoption of this charter shall
not be included in or counted as part of such bonded indebtedness, if Il] held
in a sinking fund maintained by the city, 2] issued for the acquisition,
equipment, purchase, construction, maintenance, extension, enlargement or
improvement of street railways, telegraph or telephone lines, water, l~hting,
heatin~ and power plants, or either of them, or any other public convenience,
from which a revenue is or may be derived, owned and operated by the city, or
the acquisition of property needed in connection therewith; or for the con-
struction of sewers, public drainage ditches, or the acquisition of lands, or
for improvement of streets, parks, or other public improvements, to the extent
that they are payable from the proceeds of assessments levied upon property
specially benefited by such ditches or /mprove~ents, or [3] for the purpose of
anticipatin~ the collection of general taxes for the year An which Assued. In
no case shall bonds be issued to ~un for more than thirty years. The purpose
for which bonds are issued shall be set forth ~n the ordinance authorizin~ them
and the proceeds from such bonds shall not be diverted to any other purpose.
Before any bonds are sold, at least one week's published notice shall be
given of a meetins of the city council to open and consider bads therefore.
The time and place of said meetin~ shall be fixed and the newspaper in which
the notice shall be published shall be designated by a resolution duly passed,
which may provide for additional notice. At the time and place so fixed, the
bids shall be opened and the offer complyinS with the terms of such sale and
deemed most favorable sha!l be accepted; PROVIDED, that the council may reject
any and all such offers and award said bonds to a more favorable bidder or upon
like notice, it may invite other bids. Bids may be asked on the basis of a
rate of interest specified in the proposals and on the net interest basis on
which the bidder will pay par for the same.
Section 72a. In addition to all powers specifically granted in that regard
by its charter or amendments thereto, the city shall have all the powers in
reference to the issuance of bonds or eertiflcates of indebtedness provided for
in respect to Cities of the Fourth Class by Chapter 10, General Statutes of
Minnesota, 1913, and the Acts of the Legislature amendatory thereof and sup-
plemental thereto.
Section 72b. BONDED DEBT AND DEBT LIMIT. No bond shall ever be issued to
pay current expenses or to refund certificates of indebtedness issued to pro-
vide for tempora~ry deficiencies in the r~venues to cover current expenses, but
bonds may be issued by a four-fifths vote of the council, subject to the
referendum powers of the people, for the purchase of real estate, for new
equipment, and for all improvements of a lastins character. The total bonded
debt of the city shall never exceed ten per cent of the assessed valuation of
all the taxable property in the city, but in computins the total bonded debt,
emergency debt certificates, and bonds issued prior to the adoption of this
charter and either held in a sinkins fund or issued for the purchase, construc-
tion, maintenance, extension enlargement, or improvements of water or lightins
plants, or issued for the acquisition, equipment, purchase, construction,
maintenance, extension enlargement, or improvement of water, heatins plants or
either, or any other public convenience from which a revenue is or may be
derived, owned and operated by such city or villase, or the acquisition of
property needed in connection therewith, or for the improvement of streets,
parks or other public improvements, to the extent that they are payable from
the proceeds of assessments levied upon property especially benefitted thereby,
and obligations issued for the /mprovements which are payable, wholly or
18
7-17-84
partly, from the collections of special assessments levied on property bene-
fitted thereby, or for the creation or maintenance of a permanent ln~rovement
revolving fund shall not count as part of such total bonded debt. In no case
will bonds be issued to run for more than thirty years. The purpose for which
bonds are issued shall be set forth in the ordinance authorizing them and the
proceeds from such bonds shall not be diverted to any other purposes.
Section 73. FORE AND REPAYMENT OF BONDS. Bonds issued by the city may
take the form either of term bonds or of serial bonds. In ease of the issuance
of any term bonds, it shall be the duty of the city manager to include in the
budget estimates each year a sufficient sum, with a safe margin to spare, to
set aside in a sinking fund for the repa]~ent of the bonds at the end of the
term, and another sum to pay the interest on the bonds for that year. In case
of the issuance of serial bonds, it shall be the city manager's duty to include
in the budget estimates each year a sum amply sufficient to pay the principal
and interest on any bonds falling due thst year, and another sum sufficient to
pay the interest for that year on the bonds still outstanding.
Section 74. ~4ERGENCY DEBT CERTIFICATES. If any year the receipts from
taxes or other sources should from some unforeseen cause become insufficient
for the ordinary expenses of the city, or if any calamity or other public
emergency should subject the city to the necessity of making extraordinary
expenditures, then the council may authorize the sale by the city treasurer of
emergency debt certificates to run not to exceed one year and to bear interest
at six per cent per annum. A tax sufficient to redeem all such certificates at
maturity shall be levied as part of the budget of the following year. The
authorization of an issue of such emergency debt certificates shall take the
form of an ordinance approved by four-fifths of the members of the council; the
ordinance may, if deemed necessary, be passed as an emergency ordinance.
CHAPTER 8
LOCAL IMPROVEMENTS AND SPECIAL ASSESSMENTS
Section 75.~ POWER TO MAKE LOCAL IMPROVEMENTS. The city of Columbia
Heights shall have the power to lay and construct, extend, relay and repair,
and maintain, directly by day labor, or by contract, pavements, curb and
gutters, sidewalks, sewers, water mains, electric conduits, and any and all
other local improvements in or under the streets, alleys, and public places in
the city.
Section 76. POWER TO LEVY SPECIAL ASSESSMENTS. The power of the city of
Columbia Heights, und'er the conditions of this charter specified, to provide by
any lawful method for the payment of the whole or any part of the cost of any
local improvement by special assessments upon the property specially benefitted
thereby, shall not be deniede and the city of Columbia Heights shall possess
this power as fully as any other city in the state. The amount assessed to the
property specially benefitted, to pay for such local improvements, shall not,
however, exceed the amount of the benefits received by such property.
CITY OF COLUMBIA HEIGHTS
DATE:
MAY 24, 1993
TO:
FROM:
RE:
PAT HENTGES
CITY MANAGER
WILLIAM ELRITE~/c/)
FINANCE DIRECTOR
Published Notice for Bond SAle
As of this date I have spoken to Dan Haman and he has informed me that he will do the appropriate
notice as required in the City Charter for the award of the sale of the refunding bonds. If there is anyother
information you want on this please let me know.
WE:we
930524b
MANAG£R
CITY OF COLUMBIA HEIGHTS
590 40th Avenue N. E.
Columbia Heights, MN 55421-3878
(612) 782-2800
~A¥ 14 1993
MANAGER
CITY OF COLUMBIA HEIGHTS
Mayor
Donald J. Murzyn, Jr.
Councilmembers
Sean T. Clerkin
Bruce G. Nawrocki
Gar3, L. Peterson
Robert W. Ruettimann
City Manager
Patrick Hentges
May l3, 1993
Mr. Dan Hartman
Springsted
85 East 7th Place, Ste. 100
St. Paul, Minnesota 55101-2143
Dear Dan:
Enclosed is an excerpt from Section 72 of the Columbia Heights City Charter
regarding bonded debt and debt limits. The portion we discussed on the telephone
on May 4th is the second paragraph on page 18.
Before the actual sale of the next bond issue, we would like a written opinion from
the bond counsel or your office regarding the City's requirement to publish a one
week's notice of the time and the place of the bid opening. There are two concerns
I have with this section: fa'st, it relates to bids and not a negotiated sale. I do not
know if this is enough of a difference to exempt us from the publication requirement.
Also, are there any State statutes that would take precedence over this section of the
Charter and exempt us from the one week publication?
At the last City Council meeting, Bruce Nawrocki questioned this section of the
Charter related to the bond sale, and would like a written response prior to the bond
sale.
Thank you for your attention to this matter.
Sincerely,
William Elrite
Finance Director
WE:dn
9305135
cc: pat-Hentges,' City Manager
Attachment: Excerpt, Section 72, City Charter
"SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER
Section 70. RECEIPTS TO OO TO CITY TREASURER. All receipts of money
belonging to the city, or any branch thereof, excepting only those funds
collected by the county treasurer, shall be paid into the city treasurer by the
person authorized to receive the same at the close of each business day. Ail
such monies, and also all monies received upon tax settlements from the county
treasurer, shall be deposited as soon as received in the bank or banks approved
by the city council. Any person in the employ of the city guilty of a viola-
tion of this provision shall be liable to be reduced in rank and salary or to
be dismissed from office or position, as the council may determine after a
hearing.
Section 71. ACCOUNTS AND REPORTS. The city manager shall be the chief
accounting officer of the city. The council may enforce the obligation of the
city manager to use generally accepted accounting principles in all accounting
obligations in this chapter. Such obligation shall include a thorough monthly
report and an annual report covering the entire financial operation of the city
for the past year which the city manager must provide to the council on or be-
fore March 30 of each year. The annual report shall include a comparison of
actual expenditures and actual revenues for each fund, divided into such
categories as the budget presented by the city manager for the subject fiscal
year, along with such additional information as required by the council.
Section 72. BONDED DEBT AND DEBT LIMIT. Bonds may be issued by four-
fifths vote of the council without the previous approval of the voters of the
said city, but subject to the referendum powers of the people, for the purchase
of real estate; for new construction; for new equipment; for all improvements
of a lasting character; for the purchase or construction of public waterworks
or for the enlargement of the same and for the protection and distribution of
the water supply; for the establishment of public lighting, heating, or power
plants, and for their aoquisition and equipment by purchase or otherwise; for
the acquisition or construct/on of street railways, telegraph or telephone
lines, or any other public convenience from which a revenue is or may be
derived; for the creation or maintenance of a permanent improvement fund; for
the purchase or erection of needful public buildings; for establishing and
maintaining garbage crematories, or other means of garbage disposal; for the
establishment and maintenance of hospitals, schools, libraries, museums, art
galleries and oemetaries; for the construction of sewers, subways, streets,
sidewalks, pavements, culverts, and parks and parkways and play grounds; for
changing, controlling or bridging streams and other waterways within the
corporate limits and constructing and repairing roads and bridges within two
miles of the corporate limits thereof; for the purpose of refunding outstanding
bonds; for the purpose of funding floating indebtedness; and for all purposes
which may be authorized by the laws of the State of Minnesota right of the city
to issue bonds under the authority of any law heretofore and this section of
the city's charter shall not be construed to limit the passed and adopted by
the State of Minnesota, but no bonds shall ever be issued to pay current ex-
penses or to refund emergency debt certificates. The total bonded indebtedness"
of the city shall never exceed ten per cent of the last assessed valuation of
the taxable property therein, including monies and credits, but in computing
the total bonded indebtedness, emergency debt certificates and certificates of
indebtedness or bonds issued before or after the adoption of this charter shall
not be included in or counted as part of such bonded indebtedness, if [1] held
in a sinking fund maintained by the city, 2] issued for the acquisition,
~7
equipment, purchase, construction, maintenance, extension, enlargement or
improvement of street railways, telegraph or telephone lines, water, lightin~,
heating and power plants, or either of them, or any other public convenience,
from which a revenue is or may be derived, owned and operated by the city, or
the acquisition of property needed in connection therewith; or for the con-
struction of sewers, public drainage ditches, or the acquisition of lands, or
for improvement of streets, parks, or other public improvements, to the extent
that they are payable from the proceeds of assessments levied upon property
specially benefited by such ditches or improvements, or [3] for the purpose of
anticipating the collection of general taxes for the year in which issued. In
no case shall bonds be issued to run for more than thirty years. The purpose
for which bonds are issued shall be set forth in the ordinance authorizing them
and the proceeds from such bonds shall not be diverted to any other purpose.
Before any bonds are sold, at least one week's published notice shall be
given of a meeting of the city council to open and consider bids therefore.
The time and place of said meeting shall be fixed and the newspaper in which
the notice shall be published shall be designated by a resolution duly passed,
which may provide for additional notice. At the time and place so fixed, the
bids shall be opened and the offer complying with the terms of such sale and
deemed most favorable shall be accepted; PROVIDED, that the council may reject
any and all such offers and award said bonds to a more favorable bidder or upon
like notice, it may invite other bids. Bids may be asked on the basis of a
rate of interest specified in the proposals and on the net interest basis on
which the bidder will pay par for the same.
Section 72a. In addition to all powers specifically granted in that regard
by its charter or amendments thereto, the city shall have all the powers in
reference to the issuance of bonds or certificates of indebtedness provided for
in respect to Cities of the Fourth Class by Chapter 10, General Statutes of
Minnesota, 1913, and the Acts of the Legislature amendatory thereof and sup-
plemental thereto.
Section 72b. BONDED DEBT AND DEBT LIMIT. No bond shall ever be issued to
pay current expenses or to refund certificates of indebtedness issued to pro-
vide for temporary deficiencies in the revenues to cover current expenses, but
bonds may be is~ued by a four-fifths vote of the council, subject to the
referendum powers of the people, for the purchase of real estate, for new
equipment, and for all improvements of a lasting character. The total bonded
debt of the city shall never exceed ten per cent of the assessed valuation of
all the taxable property in the city, but in computing the total bonded debt,
emergency debt certificates, and bonds issued prior to the adoption of this
charter and either held in a sinking fund or issued for the purchase, construc-
tion, maintenance, extension enlargement, or improvements of water or lighting
plants, or issued for the acquisition, equipment, purchase, construction,
maintenance, extension enlargement, or improvement of water, heating plants or
either, or any other public convenience from which a revenue is or may be
derived, owned and operated by such city or village, or the acquisition of
property needed in connection therewith, or for the improvement of streets,
parks or other public improvements, to the extent that they are payable from
the proceeds of assessments levied upon property especially benefitted thereby,
and obligations issued for the improvements which are payable, wholly or
18
7-17-84
partly, from the collections of special assessments levied on property bene-
fitted thereby, or for the creation or maintenance of a permanent improvement
revolving fund shall not count as part of such total bonded debt. In no case
will bonds be issued to run for more than thirty years. The purpose for which
bonds are issued shall be set forth in the ordinance authorizing them and the
proceeds from such bonds shall not be diverted to any other purposes.
Section 73. FORM AND REPAYMENT OF BONDS. Bonds issued by the city may
take the form either of term bonds or of serial bonds. In case of the issuance
of any term bonds, it shall be the duty of the city manager to include in the
budget estimates each year a sufficient sum, with a safe margin to spare, to
set aside in a sinking fund for the repayment of the bonds at the end of the
term, and another sum to pay the interest on the bonds for that year. In case
of the issuance of'serial bonds, it shall be the city manager's duty to include
in the budget estimates each year a sum amply sufficient to pay the principal
and interest on any bonds falling due that year, and another sum sufficient to
pay the interest for that year on the bonds still outstanding.
Section 74. EMERGENCY DEBT CERTIFICATES. If any year the receipts from
taxes or other sources should from some unforeseen cause become insufficient
for the ordinary expenses of the city, or if any calamity or other public
emergency should subject the city to the necessity of making extraordinary
expenditures, then the council may authorize the sale by the city treasurer of
emergency debt certificates to run not to exceed one year and to bear interest
at six per cent per annum. ~ tax sufficient to redeem all such certificates at
maturity shall be levied as part of the budget of the following year. The
authorization of an issue of such emergency debt certificates shall take the
form of an ordinance approved by four-fifths of the members of the council; the
ordinance may, if deemed necessary, be passed as an emergency ordinance.
CHAPTER 8
LOCAL IMPROVEMENTS AND SPECIAL ASSESSMENTS
Section 75..1 POWER TO MAKE LOCAL IMPROVEMENTS. The city of Columbia
Heights shall have the power to lay and construct, extend, relay and repair,
and maintain, directly by day labor, or by contract, pavements, curb and
gutters, sidewalks, sewers, water mains, electric conduits, and any and all
other local improvements in or under the streets, alleys, and public places in
the city.
Section 76. POWER TO LEVY SPECIAL ASSESSMENTS. The power of the city of
Columbia Heights, under the conditions of this charter specified, to provide by
any lawful method for the payment of the whole or any part of the cost of any
local improvement by special assessments upon the property specially benefitted
thereby, shall not be denied, and the city of Columbia Heights shall possess
this power as fully as any other city in the state. The amount assessed to the
property specially benefitted, to pay for such local improvements, shall not,
however, exceed the amount of the benefits received by such property.
CITY COUNCIL LETTER
MEETING OF: MAY 10, 1993
AGENDA SECTION: ORDINANCES AND ORIGINATING DEPT.: CITY MANAGER
RESOLUTIONS FINANCE APPROVAL
NO: 6
GENERAL OBLIGATION TAX BY: WILLIAM ELRITE B~.._~'/
ITEM:
INCREMENT REFUNDING BONDS,
SERIES 1993A DATE: MAY 3, 1993 ~,_~[q (ct ~
NO:
The first reading of Ordinance #1266 was read April 26, 1993.
Dan Hartman of Springsted was present at that meeting and at the work session of May 3, 1993, to
discuss the advantages of refunding the tax increment bonds of 1987. At this time, it is projected
the refunding of these bonds would result in a savings to the City of approximately $37,000. The
first reading of this Ordinance was held at the April 26, 1993, City Council meeting.
Attached is an ordinance authorizing the refunding of the General Obligation Tax Increment
Refunding Bonds of 1987. The ordinance was prepared and reviewed by Holmes and Graven, bond
council for the City.
RECOMMENDED MOTION: Move to waive the reading of the ordinance, there being ample copies
available to the public.
RECOMMENDED MOTION: Move to adopt Ordinance No. 1266, being an ordinance authorizing
issuance of up to $735,000 in General Obligation Taxable Refunding Bonds, Series 1993A.
WE:dh
Attachment
9305031
COUNCIL ACTION:
ORDINANCE 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 is authorized by Mi_nnesota S~atutes, 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 Obligation Taxable Refunding
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 principal 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 of $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 issued, sold and delivered in accordance with the terms of the following
Official Terms of Offering:
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF, PROPOSALS WILL BE RECEIVED ON TIlE FOLLOWING BASIS:
TERMS OF PROPOSAL
$735,000'
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GENERAl. OBLIGATION 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-da~' 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 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 prececllng
month.
The Bonds will mature February ! in the years and amounts as follows:
1994 $160,000 1996 $190,000 1997 $200,000
1995 $185,000
The City reserves the right, after the proposal is received, to ~.ncrease or recYuce the principal amount
of the ~oncts offered for safe. A.,~y such increase or reduction will be in a total amount not to excee~
$70,000 and will De made ~n mul;iples of $5,000 ~n any of the maturities In the event the princ~pai
amount of the Bonds is increaseci or reclucecl, any premium offered or any discount taken will
increased or recluce~ Dy a percentage equal to the percentage Dy which tne principal amount of the
BoncYs rs increase= or recYucecf.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds wili be general obl;gations of the City for which the City will pledge its full faith and
credit and power to levy clirect general ad 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 refund the 1994-1997 maturities, totaling $710,000, of the City's
General Obligation Taxable Tax Increment Boncis of 1987, Series A.
TAXABILITY OF INTEREST
The interest to be paid on the Bonds is includable in gross income of the recipient for Un;ted
States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate
and 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 principaJ
amount of the Bonds. Rates shall be in integraJ multiples of 5/100 or 'i/8 of 1% Rates m~st
in ascending order. Bonds of the same maturity shall bear a single rate from the c~ate of the
Bonds to the date of maturity. No conditiona! proposals will be accepted
-1-
3. Springsted Incorporated negotiated the sale and purchase of the Bonds
in accordance with the foregoing Terms with Miller & Schroeder Financial, Inc. The
City Council will meet to consider the sale
of the Bonds and take any other appropriate action with respect to the Bonds.
4. This ordinance shall he in full force and effect from and after thirty
(30) days after its passage.
First Reading:
Second Reading:
Offered By:
Seconded By:
Roll Call:
Date of Passage:
Mayor
Council Secretary
Attest:
City Clerk-Treasurer
C~3,62-3,2
C. olumhia Heights, Minnesota
G.O. Taxable Refunding Bonds, Series 1993A
Current Refunding Summary
Prepared: 04/01/93
By SPRINGSTED Incorporated
Partial Current Refunding of
TAXABLE G.O. Tax Increment Bonds of 1987
Even Annual Savings Structure
iRefunding Bond Rating: A1
IDate of Bonds: 07/01/93
Delivery Date: 07/21/93
Refunded Call: 08/01/93
1st Callable: 02/01194
Refunding Delivery Date Sources / Uses
Sources of Funds on: 07/21/93
Refunding Principal: 735,000.00
Accrued Interest: 1,849.32
Total Sources of Funds: 736,849.32
Uses of Funds on:
07/21/93
Discount ~ $10.00
Acc. Int. & Unused Disc:
Refunding Expenses:
Investment to Call Date:
Total Uses of Funds:
7,350.00
1,849.32
18,125.00
709,525.00
736,849.32
Refunded Bond Call Date Sources / Uses
Sources of Funds on:
Invest. Proceeds Mature:
Inv. Earnings @ 2.75%:
Funds from Issuer:
Total Sources of Funds:
08/01193
709,525.00
542.00
710,067.00
Uses of Funds on:
Refunded Principal:
Refunded Call Premium:
Excess Proceeds:
Total Uses of Funds:
08101/93
710,000.00
67.00
710,067.00
Refunded / Refunding Bond Comparison
As of: Refunded Refunding
07/01/93 Statistics Statistics
'Principal: 710,000 735,000
Interest: 140,979 75,330
Bond Yrs: 1,554 1,594
Avg. Mat: 2.189 2.168
NIC: 9.07% 5.19%
Total Net Savings/Present Value Savings
Future Savings: 35,304.79
Less Funds From Issuer:
Plus Accr. Int. to DIS Fund:
Plus Exc. Proc. to DIS Fund:
Total Net Savings:
1,849.32
67.00
37,221.11
Present Value Sav@ 4.72%:
As % of P.V. Refunded Int.:
34,491.90
27.41%
~olumbia Heights, Minnesota
TAXABLE G.O. Tax Increment Bonds
Existing Debt Service
Date Principal
Rate
of 1987
Schedule A
Interest
Prepared:
By SPRINGSTED
Semi-Annual
04/01/93
Incorporated
Annual'
08/01/93
o2/01/94
08/01/94
02/0!/95
08/01/95
02/01/96
08/01/96
o2/01/97
32,065.00 32,065.00
155,000.00 8.900% 32,065.00 187,065.00
25,167.50 25,167.50
170,000.00 9.000% 25,167.50 195,167.50
17,517.50 17,517.50
185,000.00 9.100% 17,517.50 202,517.50
9,100.00 9,100.00
20~,~00.00 9.100% 9,100.00 209,100.00
219,130.00
220,335.00
220,035.00
218,200.00
Totals
Bond Years:
Ay9. Mat..:
RIC ....... :
710,000.00
1,554.17
2.!89
9.071%
167,700.00
All lower calculations
are made from the date
of the refunding bonds
877,700.00
877,700.0C
Columbia Meights, Minnesota
TAXABLE G.O. Tax Increment Bonds of 1987
Refunded Principal and any Call Premium
Schedule B
Date
Principal
Premium
Prepared: 04/01/9~
By SPRINGSTED Incorporated
Semi-Annual
Annual
02/01/94
710,000.00
710,000.00
710,000.00
Tot al s
710,000.00
Call Date ............. :
First Date Called ..... :
2all Premium .......... :
0s/0 /93
710,000.00 710,000.00
This portion will be paid with proceeds.
Uo!umbia Heights, Minnesota
TAXABLE G.O. Tax Increment Bonds of 1987
/~on-Refunded Debt Service
Schedule C
Date Principal Rate Interest
Prepared: 04/01/93
By SPRINGSTED Incorporated
semi -Annual
Annual
08/0 /93
32,065.00
32,065.00
32,065.00
Totals 32,065.00 32,065.00 32,065.00
This portion Will be paid by the issuer.
the entire existing debt service.
The first payment includes interest on
Columbia Meights, Minnesota
~.O. Taxable Refunding Bonds,
Refunding Debt Service
Series
1993A
Schedule D
Date Principal
Rate
Interest
Prepared:
By SPRINGSTED
Semi -Annual
04/01199
Incorporated
Annual
o2/01/94
08/Ol/94
02/01/95
o8/ol/95
o2/01/96
08/01/96
o2/ol/97
160,000.00
185,000.00
190,000.00
200,000.00
4.000%
4.250%
4.750%
5.000%
19,417.71
13,443.75
13,443.75
9,512.50
9,512.50
5,000.00
5,000.00
179,417.71
13,443.75
198,443.75
9,512.50
199,512.50
5,000.00
205,000.00
179,417.71
211,887.50
209,025.00
210,000.00
Totals
Bond Date.:
Avg. Mat..:
/~IC ....... :
735,000.00
07/01/93
2.168
5.188%
75,330.21
810,330.21
Delivery..:
Discount.%:
Bond Yield:
810,330.21
07/21/93
1.00000%
4.72!23~
Columbia Rei~hts, Minnesota
G.O. Taxable Refunding Bonds, Series 1993A
Annual Savings Analysis
Schedule E
Refunding Non-Refunded Total New
Date Debt Service Debt Service Debt Service
(1) (2) (3) (4)
08/0!/93
02/01/94
08/01/94
02/01/95
o8/0!/95
D2/0!/96
o8/01/96
o2/01/97
179,417.71
211,887.50
209,025.00
210,000.00
32,065.00
211,482.71
211,887.50
209,025.00
210,000.00
Prepared: 04/01/93
By SPRINGSTED Incorporated
Existing Savings
Debt Service or (Loss)
(5) (6)
219,130.00
220,335.00
220,035.00
218,200.00
7,647.29
8,447.50
11,010.00
8,200.00
Totals
810,330.21
Present Value Rate...:
Present Value Savings:
As % of P.V. Ref. Iht:
32,065.00
4.7212%
34,491.90
27.41%
842,395.21 877,700.00
Exc. Pro. to D/S Fund:
Acc. Int. to D/S Fund:
Total Net Savings .... :
35,304.79
67.00
1,849.32
37,221.11
Columbia Heights, Minnesota
~.O. Taxable Refunding Bonds, Series 1993A
Escrow Structure
Schedule F
Prepared: 04/01/93'
By SPRINGSTED Incorporated'
This page has been left blank intentionally to show that an escrow account is
not required for a current refunding.
~olu~bia Heights, Minnesota Prepared:
G.O. Taxable Refunding Bonds, Series 1993A By SPRINGSTED
Sources and Uses of Funds
Schedule G
04/01/93
Incorporated
Sources of Funds:
Par Value of Refunding Bonds .................................... :
Less Discount / Plus Premium .................................... :
Accrued Interest ................................................ :
Earnings on Proceeds at: 2.750% .............................. :
Funds From Issuer ............................................... :
Total Sources of Funds
735,000.00
(7,350.00)
1,849.32
542.00
730,041.32.
Uses of Funds:
Refunded Debt Service and Call Premium if any ................... :
Open Market Security ............................................ :
Beginning Balance in Escrow ..................................... :
Accrued Interest to Sinking Fund ................................ :
Unused Discount to Sinking Fund ................................. :
Refunding Expenses .............................................. :
Excess Proceeds ................................................. :
Total Uses of Funds
710,000.00
1,849.32
18,125.00
67.00
730,041.32
Columbia Heights, Minnesota
G.O. Taxable Refunding Bonds, Series 1993
Prepared: 06/23/93
By SPRINGSTED Incorporated
Current Refunding Summary
Partial Current Refunding of
ITAXABLE G.O. Tax Increment Bonds of 1987
IEven Annual Savings Structure
IRefunding Bond Rating: A1
Date of Bonds: 07/01/93
07/26193
08/01/93
[1 st Callable: 02/01/94
Refunding Delivery Date Sources / Uses
Sources of Funds on: 07/26~93
Refunding Principal:
Accrued Interest:
Total Sources of Funds:
735,000.00
2,329.52
737,329.52
Uses of Funds on:
07/26/93
Discount @ $10.00 :
Acc. Int. & Unused Disc:
Refunding Expenses:
Investment to Call Date:
Total Uses of Funds:
7,350.00
2,329.52
18,575.00
709,075.00
737,329.52
Refunded Bond Call Date Sources/Uses!
Sources of Funds on: 08/01/93
Invest. Proceeds Mature:
Inv. Earnings @ 2.75%:
Funds from Issuer:
Total Sources of Funds:
7O9,075.0O
270.83
654.17
710,000.00
Uses of Funds on:
Refunded Principal:
Refunded Call Premium:
Excess Proceeds:
Total Uses of Funds:
08/01/93
710,000.00
710,000.00
Refunded / Refunding Bond Comparison
As of: Refunded Refunding
07/01/93 Statistics Statistics
Principal: 710,000 735,000
Interest: 140,979 76,658
Bond Yrs: 1,554 1,594
Avg. Mat: 2.189 2.168
NIC: 9.07% 5.27%
Total Net Savings/Present Value Savings
Future Savings:
Less Funds From Issuer:
Plus Accr. int. to DIS Fund:
Plus Exc. Proc, to D/S Fund:
Total Net Savings:
33,977.08
654.17
2,329.52
Present Value Say @ 4.81%:
As % of P.V. Refunded iht,:
26.25~
Columbia Heights, Minnesota
TAXABLE G.O. Tax Increment Bonds of 1987
Existing Debt Service
Schedule A
Date
Principal
Rate
Interest
Prepared: 06/23/93
By SPRINGSTED Incorporated
Semi-Annual
Annual
08/01/93
02/01/94
08/01/94
02/01/95
08/01/95
02/01/96
08/01/96
02/01/97
155,000.00
170,000.00
185,000.00
200,000.00
8.900%
9.000%
9.100%
9.100%
32,065 00
32,065 00
25,167 50
25,167 50
17,517 50
17,517 50
9,100.00
9,100.00
32,065.00
187,065.00
25,167.50
195,167.50
17,517.50
202,517.50
9,100.00
209,100.00
219,130.00
220,335.00
220,035.00
218,200.00
Totals
Bond Years:
Avg. Mat..:
NIC ....... :
710,000.00
1,554.!7
2.189
9.071%
167,700.00
All lower calculations
are made from the date
of the refunding bonds
877,700.00
877,700.00
Columbia Heights, Minnesota
TAXABLE G.O. Tax Increment Bonds of 1987
Refunded Principal and any Call Premium
Schedule B
Date
Principal Premium
Prepared: 06/23/93
By SPRINGSTED Incorporated
Semi-Annual
Annual
08/01/93
02/01/94
710,000.00
710,000.00
710,000.00
Totals
710,000.00
Call Date ............. :
First Date Called ..... :
Call Premium .......... :
08/01/93
710,000.00 710,000.00
This portion will be paid with proceeds.
Columbia Heights, Minnesota
TAXABLE G.O. Tax Increment Bonds of 1987
Non-Refunded Debt Service
Prepared: 06/23/93
By SPRINGSTED Incorporated
Schedule C
Date Principal Rate
Interest Semi-Annual
Annual
08/01/93
02/01/94
32,065.00
32,065.00
32,065.00
Totals
32,065.00
32,065.00
32,065.00
This portion Will be paid by the issuer.
the entire existing debt service.
The first payment includes interest on
Columbia Heights, Minnesota
G.O. Taxable Refunding Bonds,
Refunding Debt Service
Date Principal
Series 1993
Schedule D
Rate Interest
Prepared: 06/23/93
By SPRINGSTED Incorporated
Semi-Annual
Annual
02/01/94
08/01/94
02/01/95
08/01/95
02/01/96
08/01/96
02/01/97
160,000.00 3.800% 19,567.92
13,732.50
185,000.00 4.400% 13,732.50
9,662.50
190,000.00 4.750% 9,662.50
5,150.00
200,000.00 5.150% 5,150.00
179,567 92
13,732 50
198,732 50
9,662 50
199,662 50
5,150 00
205,150.00
179,567.92
212,465.00
209,325.00
210,300.00
Totals
Bond Date.:
Avg. Mat..:
NIC ....... :
735,000.00
o7/ol/93
2.168
5.271%
76,657.92
811,657.92
Delivery..:
Discount.%:
Bond Yield:
811,657.92
07/26/93
1.00000%
4.80584%
Columbia Meights, Minnesota
G.O. Taxable Refunding Bonds, Series 1993
Annual Savings Analysis
Schedule E
Refunding Non-Refunded Total New
Date Debt Service Debt Service Debt Service
(1) (2) (3) (4)
08/01/93
02/01/94
02/01/95
08/01/95
02/01/96
08/01/96
02/01/97
179,567.92
212,465.00
209,325.00
210,300.00
32,065.00
211,632.92
212,465.00
209,325.00
210,300.00
Prepared: 06/23/93
By SPRINGSTED Incorporated
Exi st lng Savings
Debt Service or (Loss)
(5) (6)
219,130.00
220,335.00
220,035.00
218,200.00
7,497.08
7,870.00
10,710.00
7,900.00
Totals 811,657.92
Present Value Rate...:
Present Value Savings:
As % of P.V. Ref. Int:
32,065.00
4.8058%
33,009.86
26.25%
843,722.92
877,700.00
Funds from Issuer .... :
Acc. Int. to D/S Fund:
Total Net Savings .... :
33,977.08
(654.17)
2,329.52
35,652.43
Columbia Heights, Minnesota
G.O. Taxable Refunding Bonds, Series 1993
Sources and Uses of Funds
Schedule G
Prepared: 06/23/93
By SPRINGSTED Incorporated
Sources of Funds:
Par Value of Refunding Bonds .................................... :
Less Discount / Plus Premium .................................... :
Accrued Interest ................................................ :
Earnings on Proceeds at: 2.750% .............................. :
Funds From Issuer ............................................... :
Total Sources of Funds
735,000.00
(7,350.00)
2,329.52
270.83
654.17
730,904.52
Uses of Funds:
Refunded Debt Service and Call Premium if any ....................
Open Market Security .............................................
Beginning Balance in Escrow ......................................
Accrued Interest to Sinking Fund .................................
Unused Discount to Sinking Fund ..................................
Refunding Expenses ...............................................
Excess Proceeds ..................................................
Total Uses of Funds
710,000.00
2,329.52
8,575 . 0(~
730~ 904.: