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City Council Resolution 1979-13The Council t After the bids had been White move. its a option: hen proceeded to consider such bids. considered and discussed, member introduced the following resolution and RESOLUTION ACCEPTING BID ON SALE OF $1,170,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1979 PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX FOR THE PAYME[J`I' THEREOF BE IT RESOLVED by the Council of the City of Monticello, Minnesota, as follows: 1. That the bid of Dain, Kalman & Quail, Inc. to purchase $1,170,000 General Ob igation Improvement Bonds o 1979 of the City, in accordance with the notice of bond sale, at tt~e rates of interest hereinafter set forth, and to pay therefor the s wn of $ 1,170,000.00(plus a premiwn of $745.95 ) is hereby found, determined and declared to be the most favorable bid received, and is hereby accepted and said bonds are hereby awarded to said bidder. The City Clerk is directed to retain the deposit of said bidder and to forthwith return the good faith checks or drafts to the unsuccessful bidders. Said bonds shall be payable as to principal and interest at the main office of Northwestern National Bank in MinneaQolis, Minnesota , or any successor paying agent duly appointed Fey t e City: 2. The $1,170,000 negotiable coupon general obliga- tion bonds of the City shall be dated September 1, 1979 and shall be issued forthwith. Said bonds shall be 234 in number and numbered from 1 to 234, both inclusive, in the denomin- ation of $5,000 each. Said bonds shall mature serially, lowest numbers first, without option of prepayment, on February 1 in the years and amounts as follows: $135,000 in the year 1982; $115,000 in each of the years 1983 to 1991, both inclusive. 3. Said bonds shall provide funds for the construc- tion of various public improvements in the City. The total cost of said improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the bonds herein authorized. Work on the improvements shall proceed with due diligence to completion. Resolution 1979 #13 4. The bonds of said .issue maturing in the years and bearing tt~e serial numbers set forth below shall bear interest, payable August 1, 1980 and semianciually thereafter on February 1 and August 1 of each year, at the respective rates per annum set opposite said maturity years and serial numbers: taturity Years Serial Numbers Interest Rate 1982 1-27 6.00 1983 28-50 6.00$ 1984 51-73 6.00$ 1985 74-96 6.00$ 1986 97-119 5.50$ 1987 120-142 5.408 1988 143-165 5.45 1989 166-188 5.50 1990 189-211 5.55$ 1991 212-234 5.60$ 5. The bonds and interest coupons to be issued hereunder shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA_ WRIGHT COUNTY CITY OF MONTICELLO No. GENERAL OBLIGATION IMPROVEMENT BOND OF 1979 $5,000 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, without option of prepayment, 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 on the first day of August, 1980 and semiannually thereafter on the first day of August and the first day of February in each year, 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. This bond is one of an issue in the total principal amount of $1,170,000 all of like date and tenor, except as to serial number, maturity, interest rate and redemption privi- lege, 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 construction of various public improvements in the City, and is payable out of the General Obligation Improvement Bonds Common Account of the City. This bond constitutes a general obligation of the City, and to provide moneys for the prornpt and full payment of said principal and interest ~•~hen the same become due, the full faith and credit and taxing powers of said City have been and are hereby irrevocably pledged. IT IS HEREBY CEltTI~'IED ANU 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 performed, 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 WITNCSS WfiEREOE, the City of Monticello, Wright County, Minnesota, by its City Council has caused this bond to be executed in 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 said 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 September 1, 1979. /s/ Facsimile ~s/ Facsimile City Administrator Mayor (Form of Coupon) No. _ $ On the of Monticello, W successor paying shown hereon for Improvement Bond 1979. first day of August (February), 19_, the City right County, Minnesota, will pay to bearer at or any agent u y appointe y e ity, the sum interest then due on its General Obligation of 1979, No. dated September 1,. /s/ Facsimile /s/ Facsimile , City Administrator Mayor 6. The bonds shall be executed on behalf of the City by the signature of its Mayor and the_ signature of its Administrator and be sealed with the seal of the City; provided, that one (or both) of such signatures and the seal of the City may be printed facsimiles (if the bond's 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 Administrator. 7. The said bonds when so prepared and executed shall be delivered by the Treasurer to the purchaser thereof upon receipt of the purchase price, and the said purchaser shall not be obliged to see to the proper application thereof. 8. There has heretofore been created a special account designated "Improvement Bonds Common Account" held and administered by the City Treasurer separate and apart from all other accounts of the City. Said Account shall continue to be maintained in the manner heretofore specified until all of the bonds heretofore, herein and hereafter authorized and made payable from said Account and the interest thereon have been fully paid. ~In said Account there shall be created and maintained a separate fund, to be designated as the "1979 Improvement Bonds Construction Fund". The proceeds of the sale of the bonds herein authorized, less any premium and accrued interest received thereon, and less capitalized interest in the amount of $78,521 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before February 1, 1981), 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 thereof, shall be credited to the 1979 Improvement Bonds Construction Fund, from which there shall be paid all costs and expenses of making said improvements listed in paragraph 9, including the cost of any construction contracts heretofore ].et and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said fund shall be used for no other purpose except as otherwise provided by law; provided that the bond proceeds may also be used to the extent necessary to pay interest on said 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 said improvements there shall remain any unexpended balance in said 1979 Improvement Bonds Construction Fund, said balance (other than any special assessments) may be transferred by the Council to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429; and provided further that any special assessments credited to the 1979 Improvement Bonds Construction Fund 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 Fund heretofore created (a) all collections of special assessments herein covenanted to be levied and either initially credited to the 1979 Improvement Bonds Construction Fund and required to pay any principal and interest due on the bonds or collected subsequent to the completion of said improvements and payment of the costs thereof; (b) all accrued interest and any premium received upon delivery of said bonds, (c) capitalized interest in the amount of $78,521 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before February 1, 1981), (d) any collections of all taxes herein levied for the payment of said bonds; and (e) all funds remaining in said 1979 Improvement Bonds Construction Fund after completion of the improvements and payment of the costs thereof, not so transferred to the fund of another improvement. The Common Debt Service Fund shall be used solely to pay principal and interest and any premiums for redemption on the bonds issued hereunder and any other general obligation bonds of the City heretofore or hereafter issued by the City and made payable from said Fund as provided by law. Any sums from time to time held in the Common Debt Service Fund (or any other City Fund which will be used to pay principal or interest to become due on the bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without reyard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage reyulations on such investments after taking into account any applicable "temporary periods" made available under the federal. arbitrage regulations. 9. It is hereby determined that no less than 20$ of the cost of each improvement project financed hereunder to the City within the meaning of f9innesota 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 said 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 project financed hereunder unless the resolution ordering the improvement project specifies a different time limit for the letting of construction 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 by the City or this Council or any of the City officers or employees, either in the making of such assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. Subject to such adjustments as are required by conditions in existence at the time said assessments are levied, it is hereby determined that the assessments shall be payable in eyual, consecutive, annual installments, with general taxes for the years sl~owr~ below and with interest on the deferred balance of all such assessments at the rate of at least 7.1 ~ per annum: Improvement Designation Amount Levy Years 1979-1 Improvement Project $991,390 1980-89 At the time the assessments are in fact levied the City Council shall, based on the then current estimated col- lections of such 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. 10. To provide moneys for the payment of said principal and interest 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 said City for the years and in the amounts as follows: Year of Tax Levy 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 Year of Tax Col1lgegcption Amount 1981 $18,7803 1982 19,844 1983 19,638 1984 19,432 1985 19,226 1986 19,624 1987 20,142 1988 20,599 1989 20,997 1990 21,334 Said tax levies are such that if collected in full they, together with estimated collections of special assess- ments and other revenues herein pledcj.ed for the payment of said 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. Said tax levies shall be irrepealable so long as any of said 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 Sec. 475.61(3) M.S.A. For the prompt and full payment of the principal of and interest on said bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be 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 without interest from the Common Debt Service Account when a sufficient balance is available therein. 11. The City Administrator is hereby directed to file a certified copy of this resolution with the County Auditor of Wright County, Minnesota, together with such other i~~formation as he shall require, and to obtain from said Auditor his certificate that said bonds have been entered in the said Auditor's Bond Register, and that the tax levy required by law has been made. 12. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of said bonds, and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records of the City relating to said 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 said 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. The motion for the adoption of the foregoing resolution was duly seconded by member Blonigen __ and upon vote being taken thereon, the following voted in favor thereof: all members present and the following voted against tine same: none Whereupon said resolution was declared duly passed and adopted. 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 transcript 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 and considering of bids for, and awarding the sale of $1,170,000 General Obligation Improvement Bonds of 1979 of said City. WITNESS my hand and the seal of said City this i~> L~-.. day of ~~~.~r., ~t~ , 1979. u t A ministrator (SEAL)