City Council Resolution 1978-16The Council th
Af ter the bids had been
White
moved its adoption:
�qT_ 1(10
en proceeded to consider such bids.
considered and discussed, member
introduced the following resolution and
RESOLUTION ACCEPTING BID ON SALE OF
$1,475,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1978
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. That the bid of The First National Bank of Saint Paul
to purchase $1,475,000 General Obligation Improvement Bonds of
1978 of the City, in accordance with the notice of bond sale,
at the rates of interest hereinafter set forth, and to pay
therefor the sum of $1,475,000 kq, xx' ni02x.x)�fxxxxxxxx)
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 Administrator 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* First National Bank of Saint Paul, in
St. Paul, Minnesota , or any successor
paying agent duly appointed by the City.
2. The $1,475,000 negotiable coupon general obliga-
tion bonds of the City shall be dated November 1, 1978 and
shall be issued forthwith. Said bonds shall be 295 in number
and numbered from 1 to 295, 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:
$185,000 in each of the years 1981 to 1987,
both inclusive; and
$180,000 in the year 1988.
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.
4. The bonds of said issue maturing in the years
and bearing the serial numbers set forth below shall bear -
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interest, payable August 1, 1979 and semiannually thereafter
on February 1 and August 1 of each year, at the respective
rates per annum set opposite said maturity years and serial
numbers:
Maturity Years
1981-1984
1985-1986
1987
1988
Serial Numbers
Interest Rate
1-148
5.500
149-222
5.10%
223-259
5.15%
260-295
5.20%
5. The bonds and interest coupons to be issued
hereunder shall be in substantially the following form:
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No.
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WRIGHT COUNTY
CI`T'Y OF MONTICELLO
GENERAL OBLIGATION IMPROVEMENT
BOND OF 1978
$5,000
KNOW ALL MEN BY THESE PRESENTS that the City of
Monticello, Wright County, Minnesota, certifies tiiat it is
indebted and for value received promises to pay to bearer,
without option of prepayment, the principal sum of
FIVE ` TH'OUSAND 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
( o) per annum, payable on the first day of August, 1979
and semiannually thereafter on the first day of February and
the first day of August 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 $114751000 all of like date and tenor, except as to
serial number, maturity and interest rate, 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 -various public improvements in
the City, and is payable out of the Improvement Bonds Common
Common Account of the City. This bond. constitutes a general
obligation of the City, and to provide moneys for the prompt
and full payment of said principal. and interest when 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 CERTIFIED AND RECITED that all acts,
conditions and things required by the Constitution and laces 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 WITNESS WHEREOF, 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 sseal 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 november 1,
1978.
City Administrator Mayor
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(Form of Coupon)
No. $
On the first day of August (February), 19 , 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 Bond of 1978 No. dated
November 1, 1978.
/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 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 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 "1978
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 $84,900 ( subject to such adjustments
as are appropriate to provide sufficient funds to pay interest
due on the bonds on or before February 1, 1980), 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 1978 Improvement Bonds Construction Fund, from,
which there shall be paid all costs and expenses of making
said 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 _
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 1978 Improvement Bonds Construction
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Fund, said balance, (other than any special assess;i,ents) i�ay 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 1978 Improvement Bonds Construction Fund are
hereby pledged and shall b\ used only t_o 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
1978 Impr.over:ent Bonds Construction Fund and required to pay
any principal and interest due on the bonds or collected
subsequent to the completion of said imp r. ove,laents and payment
of the costs thereof; (b) all accrued interest and any preiium
received upon delivery of said bonds, (:) capitalized interest.
in the amount of $84,900 (subject to such adjustments as are
appropriate to provide sufficient funds to pay interest due on
the bonds on or before February 1, 1980), (d) any collections
of all taxes herein levied for the payment of said bonds; and
(e) all funds remaining in said 1978 Impr.oveMent Bonds
Construction Fund after completion of the improvements and
payment of the costs thereof, not so transferred to the fund
of another improvement. The Corr,rlon Debt Service Fund. shall be
used solely to pay principal and interest and any premiums for
rederontion on the bonds issued hereunder and any other general
oblig-tion bonds.. of the City heretofore or hereafter issued by
the City and made payable from said Fund. Any sums from t ir<<e
to time held in the Debt Service Fund (or any other City
Fund T,,hich will be used to pay principal or interest to
become due on the bonds) in excess of amounts which under_
then applicable federal arbitrage regulations may be
invested without regard as to yield shall not be invested
at a yield. i.? -n excess of the applicable yield restrictions
imposed by said regulations on said investment.
9. It is hereby determined that no less than 200-6 of.
the cosi- of each improvement project financed hereunder to the
City 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 said improvements. The City hereby covenants and
agrees that it will let all construction contracts not
heretofore let, within one year after ordering each
improvement project financed hereunder, unless the resolution
ordering the improvement project specifies a diz.Lerent time
limit for the letting of construction contracts and will do
and perform as soon as they may be done, all acts and tih in-is
necessary for the final and valid levy of such special
assessiments, and in the event that any such asse,ssment 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
a Me
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 equal, consecutive, annual
installments, with general taxes for the years shown below and
with interest on the deferred balance of all such assessments
at the rate of at least 6.75 o per annum:
Improvement
Designation Amount Levy Years
78-1 $1,313,578 1979-1983
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 T( -ix
Lev y
Year of Tax
Collection Amount
1978
1979
$18,076
1979
1980
38,934
1980
1981
38,934
1981
1982
38,934
1982
1983
38,934
1983
1984
38,934
1984
1985
38,934
1985
1986
38,934
1986
1987
38,934
Said 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
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 Fund 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 Fund 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-
information 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 author-
ized 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
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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, in-
cluding any heretofore furnished, shall be deemed represen-
tations 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: Blonigen, Grimsmo, Walters and White
and the following voted against the same: None
Whereupon said resolution was declared duly passed
and adopted.
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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 $1,475,000 General
Obligation Improvement Bonds of 1978 of said City.
WITNESS my hand and the seal of said City this
"5- day of 1978.
Cit Administrator
(SEAL)