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City Council Resolution 1983-71r RESOLUTION.#1983 - 71 EXTRACT OF MINUTES OF A MF. E T I NG OF TH E CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA HELD: May 9, 1983 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Monticello, Wright County, Minnesota, was duly called and held at the City Hall in said City on the 9th day of May, 1983, at 7:45 P.M., for the purpose of opening, considering bids for.and awarding the sale of $1,150,000 General Obligation Improvement Bonds of 1983 the City. The following members were present: A. Grimsmo, D. Blonigen, F. Fair, K. Maus & J. Maxwell and the following were absent: None The Administrator presented affidavits showing publi- cation of notice of call for bids on $1,150,000 General Obliga- tion Improvement Bonds of 1983 of the City, for which bids were to be received at this meeting, in accordance with the resolu- tion adopted by the City Council on March 28, 1983. The affi- davits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475, and were approved and ordered placed on file. The Council proceeded to receive and open bids for the sale of the bonds. The following bids were received: Bidder Interest Rate Net Interest Cost See Attached SPRINGSTED INCORPORATED PUBLIC FINANCE ADVISORS $1, 150,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1983 CITY OF MONTICELLO, MINNESOTA AWARD: FIRST NATIONAL BANK OF MINNEAPOLIS And Associates SALE: May 9, 1983 Moody's Rating: A Net Interest Bidder Coupons Price Cost & Rate F1RST NATIONAL BANK OF MINNEAPOLIS - The First National Bank of Saint Paul Robert W. Baird & Company, Inc. Dean Witter Reynolds Craig-Hallam, Incorporated ALLISON-WILLIAMS COMPANY Blyth Eastman Paine Webber - In Association With - PIPER, JAFFRAY & HOPWOOD INC. M.H. Novick & Company, -Inc. NORWEST SECURITIES American Na#ional Bank & Company of Saint Paul Dougherty, Dawkins, Stran Yost Incorporated Moore, .loran and Company Robert S.C. Peterson, Inc. 6.00% 6.25% 6.509'° 6.75° 7.00% 7.20°~6 7.40% 7.70% 8.00°,6 8.20% 8.40% 8.60% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25°h 7.50% 7.75% 8.00°~ 8.20°~ 8.40% 8.50° 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1985 (986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 6.00°~ 1985 Trust 6.25% 1986 6.50% 1987 & 6.75°~ 1988 7.00% 1989 Inc. 7.25% 1990 7.50°,6 199.1 7.75% 1992 8.00% 1993 8.20% 1994 8.40°~ 1995 8.60°~ d 1996 $1,133,900.00 $1,133,325,00 $1,132,750.00 $667,050.00 (7.8785%) $668,781.67 (7.89899%) $670,116.67 (7.9147%) 800 Osborn Building, Saint Paul, Minnesota 55102 (612y 222-4241 250 North Sunnyslope Road, Brookfield, Wisconsin 53005 (414) 782-8222 MERRILL LYNCH WHITE WELD 6.00°~ CAPITAL MARKETS GROUP 6.40°,6 DAIN BOSWORTH INCORPORATED 6.70°,6 7.00% 7.20% 7.40% 7.60°~ 7.80°~ 8.00% 8.20% 8.40% 8.60% 1985 $1,132,750.00 $675,893.33 1986 (7.9829%) 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 These Bonds Are Being Reoffered At Par BBI: 8.78 Average Maturity: 7.36 Years The Council then proceeded to consider and discuss the bids, after which member Maxwell introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BID ON SALE OF $1,150,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1983, PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX FOR THE PAYMENT THEREOF BE IT RESOLVED by the Council of the City of Monticello, Minnesota, as follows: 1. The bid of First National Bank of Minneapolis to purchase $1,150,000 General Obligation Improvement Bonds of 1983 of the City (hereinafter referred to as the "bonds"), in accordance with the notice of bond sale, at the rates of interest herein- after set forth, and to pay therefor the sum of $1,133,900.00 is hereby found, determined and declared to be the most favor- able bid received, and is hereby accepted and the bonds are hereby awarded to said bidder. The City Administrator is directed to retain the deposit of said bidder and to forthwith return the good faith checks or drafts to the unsuccessful bidders. The bonds shall be payable as to principal and inter- est at First National Bank of Minneapolis , or any successor paying agent duly appointed by the City. 2. The $1,1.50,000 negotiable coupon general obliga- tion improvement bonds of the City shall be dated June 1, 1983, and shall be issued forthwith. The bonds shall be 230 in number and numbered from 1 to 230, both inclusive, in the denomination of $5,000 each. The bonds shall mature serially, lowest numbers first, on February 1 in the amounts and years as follows: Year Amount 1985 $ 70,000 1986 70,000 1987 70,000 1988 70,000 1989 125,000 1990 125,000 1991 125,000 1992 125,000 1993 125,000 1994 130, 000 1995 55,000 1996 60,000 3. The bonds shall provide funds for the construc- tion of various improvements in the City (hereinafter referred to as the "Improvements"). The total cost of the Improvements, -2 - ,~.. which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the bonds herein authorized. Work on the Improvements shall proceed with due diligence to completion. 4. The bonds shall mature in the years and bear the serial numbers set forth below, and shall bear interest payable semiannually on February 1 and August 1 of each year commencing February 1, 1984, at the respective rates per annum set oppo- site the maturity years and serial numbers: Maturity Years Serial Numbers Interest Rate 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1-14 6.00% 15-28 6.25% 29-42 6.500 43-56 6.75% 57-81 7.00% 82-106 7.20% 107-131 7.40% 132-156 7.70% 157-181 8.00% 182-207 8.20% 208-218 8.40% 219-230 8.60% 5. The bonds of this issue maturing in the years 1991 to 1996, both inclusive (bonds numbered 107 to 230, both inclusive), shall be subject to redemption and prepayment at the option of the City on February 1, 1990 and on any interest payment date thereafter at par and accrued interest. Redemp- tion may be in whole or in part of the bonds subject to prepay- ment. If redemption is in part, those bonds remaining unpaid which have the latest maturity date shall be prepaid first and if only part of the bonds having a common maturity date are called for prepayment, the specific bonds to be prepaid shall be chosen by lot by the paying agent. Published notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the bank where the bonds are payable. 6. The bonds and interest coupons to be issued hereunder shall be in substantially the following form: -3 - UNITED STATES OF AMERICA STATE OF MINNESOTA WRIGHT COUNTY CITY OF MONTICELLO No. $5,000 GENERAL OBLIGATION IMPROVEMENT BOND OF 1983 KNOW ALL PERSONS BY THESE PRESENTS that the City of Monticello, Wright County, Minnesota, certifies that it is indebted and for value received promises to pay to bearer the principal sum of FIVE THOUSAND DOLLARS on the first day of February, 19 and to pay interest thereon from the date hereof until the principal is paid at the rate of percent ( ~) per annum, payable semiannually on the first day of February and the first day of August in each year commencing on the first day of February, 1984, interest to maturity being represented by and payable in accordance with and upon presentation and surrender of the interest coupons hereto attached, as the same severally become due. Both principal and interest are payable at or any successor paying agent duly appointed by the City, in any coin or currency of the United States of America which at the time of payment is legal tender-for public and private debts. All bonds of this issue maturing in the years 1991 to 1996, both inclusive (bonds numbered 107 to 230, both inclu- sive), are subject to redemption and prepayment at the option of the City on February 1, 1990 and on any interest payment date thereafter at par and .accrued interest. Redemption may be in whole or in part of the bonds subject to prepayment. If redemption is in part, those bonds remaining unpaid which have the latest maturity date shall be prepaid first and if only part of the bonds having a common maturity date are called for prepayment, the specific bonds to be prepaid shall be chosen by lot by the paying agent. Published notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the bank where the bonds are payable. This bond is one of an issue in the total principal amount of $1,150,000, all of like date and tenor, except as to serial number, maturity, interest rate and redemption -4 - privilege, which bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota for the purpose of providing money for the construc- tion of various improvement in the City and is payable out of the Improvement Bonds Common Fund of the City. This bond constitutes a general obligation of the City, and to provide moneys for the prompt and full payment of the principal and interest when the same become due, the full faith and credit and taxing powers of the City have been and are hereby irrevoc- ably pledged. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be perform- ed, precedent to and in the issuance of this bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and this bond, together with all other debts of the City outstanding on the date hereof and the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Monticello, Wright County, Minnesota, by its City Council has caused this bond to be executed on its behalf by the facsimile signatures of the Mayor and the City Administrator, and the manual signature of one of said officers, the corporate seal of the City having been intentionally omitted as permitted by law, and has caused the interest coupons to be executed and authenticated by the facsimile signatures of said officers, all as of June 1, 1983. /s/ facsimile /s/ facsimile City Administrator Mayor -5- (Form of Coupon ) No. On the first day of February (August), 19 unless the bond described below is called for earlier redemption, the City of Monticello, Wright County, Minnesota, will pay to bearer at or any successor paying agent duly appointed by the City, the sum shown hereon for interest then due on its General Obligation Improvement Bonds of 1983, No. ,'dated June 1, 1983. /s/ facsimile /s/ facsimile City Administrator Mayor -6 - 7. The bonds shall be executed on behalf of the City by the signatures of its Mayor and Administrator and be sealed with the seal of the City; provided, that one or both of the signatures and the seal of the City may be printed facsimiles if the bonds are also signed manually by at least one such officer; and provided further that the corporate seal may be omitted on the bonds as permitted by law. The interest coupons pertaining thereto shall be executed by the printed, engraved or lithographed facsimile signatures of the Mayor and Adminis- trator. 8. The bonds when so prepared and executed shall be delivered by the Administrator to the purchaser thereof upon receipt of the purchase price, and the purchaser shall not be obliged to see to the proper application thereof. 9. There has heretofore been created a special fund designated "Improvement Bonds Common Fund" held and adminis- tered by the City Administrator separate and apart from all other funds of the City. The fund shall continue to be main- tained in the manner heretofore specified until all of the bonds heretofore, herein and hereafter authorized and made payable from the fund and the interest thereon have been fully paid. There shall be created and maintained in the fund a separate account to be designated the "1983 Improvement Bonds Construction Account". The proceeds of the sale of the bonds herein authorized, less all accrued interest received thereon, and less any amount paid for the bonds in excess of $1,132,750, and less capitalized interest in the amount of $57,500 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before February 1, 1984), plus any special assessments levied with respect to Improvements financed .by the bonds and collected prior to completion of the Improvements and payment of the costs there- of, shall be credited to the 1983 Improvement Bonds Construc- tion Account, from which there shall be paid all costs and expenses of making the Improvements listed in paragraph 10, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said Account shall be used for no other purpose except as otherwise provided by law; provided that proceeds of the bonds may also be used to the extent necessary to pay interest on the bonds due prior to the anticipated date of commencement of the collection of taxes or special assessments herein levied or covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the 1983 Improvement Bonds Construc- tion Account, the balance (other than any special assessments) may be transferred by the Council to the account of any other improvement instituted pursuant to Minnesota Statutes, Chapter 1 -7- 429; and provided further that any special assessments credited to the 1983 Improvement Bonds Construction Account are hereby pledged and shall be used only to pay principal and interest due on the bonds. There is hereby pledged and there shall be credited to the Common Debt Service Account heretofore created (a) all collections of special assessments herein covenanted to be levied and either initially credited to the 1983 Improvement Bonds Construction Account and required to pay any principal and interest due on the bonds or collected subsequent to the completion of the Improvements and payment of the costs there- of; (b) all accrued interest received upon delivery of the bonds, (c) all funds paid for .the bonds in excess of $1,132,750; (d) capitalized interest in the amount of $57,500 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before February 1, 1984); (e) any collections of all taxes herein or hereafter levied for payment of the bonds; and (f) all funds remaining in the 1983 Improvement Bonds Construction Account after completion of the Improvements and payment of the costs thereof, not so transferred to the account of another improve- ment. The Common Debt Service Account shall be used solely to pay principal and interest and any premiums for redemption on the bonds issued hereunder and any other general obligation bonds of the City heretofore or hereafter issued by the City and made payable from said account as provided by law. Any sums from time to time held in the Common Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable "temporary periods" made available under the federal arbitrage regulations. 10. It is hereby determined that no less than 20$ of the cost to the City of each improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefited by the Improvements. The City hereby covenants and agrees that it will let all construction contracts not here- tofore let within one year after ordering each improvement financed hereunder unless the resolution ordering the improve- ment specifies a different time limit for the letting of con- struction contracts and will do and perform as soon as they may be done, all acts and things necessary for the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity, in any action or proceedings taken or to be taken -8- by the City or this Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. Said assessments have not heretofore been authorized, and according- ly, for purposes of Minnesota Statutes, Section 475.55, Subdi- vision 3, said special assessments are hereby authorized. Subject to such adjustments as are required by conditions in existence at the time the assessments are levied, it is hereby determined that the assessments shall be payable in equal, consecutive, annual installments, with general taxes for the years shown below and with interest on the declining balance of all such assessments at the rate of at least 9.00 $ per annum: Improvement Designation Amount Levy Years 1982-2 $735,178 1983-1992 At the time the assessments are in fact levied the City Council shall, based on the then current estimated col- lections of the assessments, make any adjustments in any ad valorem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 11. To provide moneys for payment of the principal and interest on the bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of, other general property taxes in the City for the years and in the amounts as follows: Year of Tax Year of Tax Levy Collection Amount 1983 1984 $ 5,366 1984- 1985 -0- 1985 1986 -0- 1986 1987 -0- 1987 1988 -0- 1988 1989 39,228 1989 1990 47,796 1990 1991 47,033 1991 1992 45,876 1992 1993 49,580 1993 1994 68,019 1994 1995 68,418 -9- The tax levies are such that if collected in full they, together with estimated collections of special assess- ments and other revenues herein pledged for the payment of the bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the bonds. The tax levies shall be irrepealable so long as any of the bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. For the prompt and full payment of the principal and interest on the bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall he and are hereby irrevocably pledged. If the balance in the Common Debt Service Account is ever insufficient to pay all principal and interest then due on the bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Common Debt Service Account when a sufficient balance is available therein. 12. The City Administrator is hereby directed to file a certified copy of this resolution with the County Audi- tor of Wright County, Minnesota, together with such other infor- mation as he shall require, and to obtain from the Auditor his certificate that the bonds have been entered in the Auditor's Bond Register, and that the tax levy required by law has been made. 13. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the bonds, and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records of the City relating to the bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. -10- The motion for the adoption of the foregoing resolu- tion was duly seconded by member Blonigen and upon vote being taken thereon, the following voted in favor thereof: All members and the following voted against the same: None Whereupon said resolution was declared duly .passed and adopted. -11- STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO I, the undersigned, being the duly qualified and acting Administrator of the City of Monticello, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete tran- script of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the opening, considering of bids for, and awarding the sale of $1,150,000 General Obliga- tion Improvement Bonds of 1983 of said City. WITNESS my hand and the seal of said City this day of May, 1983. City Adminis rator (SEAL) -12-