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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 - -2- 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: -3- 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 -5- (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 -7- 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 -10- 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. -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 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)