City Council Resolution 2003-63 (2)Extract of Minutes of Meeting
of the City Council of the City of
Monticello, Wright County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of
Monticello, Minnesota, was duly held in the City Hall in said City on Monday, September 8, 2003,
commencing at 7:00 o'clock p.m.
The following members were present: Roger Carlson, Glen Posusta, Robbie Smith, Brian
Stumpf and Bruce Thielen.
and the following were absent: None.
The Mayor announced that the next order of business was consideration of the sale of the
City's approximately $12,500,000 General Obligation Sewer Revenue Refunding Bonds, Series
2003B. Member Smith introduced the following resolution, and moved its adoption:
RESOLUTION NO. 2003-63
A RESOLUTION PROVIDING FOR THE SALE OF APPROXIMATELY $12,500,000
GENERAL OBLIGATION SEWER REVENUE REFUNDING BONDS, SERIES 200313;
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 Monticello, Wright County, Minnesota
as follows:
It is hereby determined that:
(a) The City is author'szed by Minnesota Statutes. Chapter 475 (Act) and Section
�}7j.(,7_ �.IhCli� i�ioll Of'the ACC ti, i,su� anal : ;ill it,; +�cncr�►1 1>hll��aut,il ht►ncls to rt lul7ti
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 fore 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) Section 475.67, 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 $12,500,000 General Obligation Sewer Revenue Refunding Bonds, Series
2003B (Bonds) to refund certain outstanding general obligations of the City;
(d) The outstanding bonds to be refunded (Refunded Bonds) consist of the
$14,700,000 General Obligation Wastewater Treatment Note, Series 1997, dated March 13,
1997, of which $12,053,365 in principal amount is currently outstanding and is callable on
December 30, 2003.
2. Ehlers & Associates (Ehlers) is authorized and directed to structure the terms of the
Bonds, provided that the principal amount shall not exceed $12,500,000 and the final maturity shall
be no later than August 1, 2018. Ehlers is further authorized to negotiate sale of the Bonds. The City
Council authorizes the City Administrator and Mayor to consider proposals and take any other
appropriate action with respect to the Bonds, provided that the proposal of the selected purchaser
(Purchaser) must (a) offer the lowest true interest cost, which shall in any event be no higher than
3.81 % per annum, and (b) produce debt service savings such that the present value of the debt service
on the Bonds (computed to their stated maturity dates) is lower by at least one percentage point than
the present value of the debt service on the Refunded Bonds_
3. The City Council will meet on the first practicable date after acceptance by the City
Administrator and Mayor of a proposal from the Purchaser, to ratify such acceptance and take any
other appropriate action with respect to the Bonds.
The motion for the adoption of the foregoing resolution was duly seconded by Member
Carlson, and upon vote being taken thereon, the following voted in favor thereof:
Carlson, Posusta, Smith, Stumpf and Thielen
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.