Loading...
City Council Resolution 1976-14~ ~ EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA HELD: JULY 13, 1976 Pursuant meeting of the Cit; County, P~1i nnesota, on the 13th day of purpose of opening sale of $1,300,000 1976 of said City. to due call and notice thereof, a special Council of the City of Monticello, Wright was duly held at the City Hall in said City July, 1976, at 7:30 o'cloc'_~c P.M. for the and considering bids for and awarding the General Obligation Improvement Bonds of The following members were present: Johnson, 14lartie and Walters and the following were absent: Erickson and Hall The Clerk presented affidavits showing publication of notice of call for bids on $1,300,000 General Obligation Improvement Bonds of 1976 of the City, for which bids were to be received at this meeting, in accordance with the resolution adopted by the City Council on June 28, 1976. Said affidavits were e;camined, found to comply with the provisions of Minne- sota Statutes, Chapter 475, and were approved and ordered placed on file. The Council proceeded to receive and open bids for the sale of said bonds. The follo~~ring bids were received: Bidder Interest Rate Net Interest Cost ATTACHED ' • ~ ::;x., ~a :~: ,l SPRING.STED INCORPORATED MUNICIPAL CONSULTANTS 5_ Te b'3 OSBOAN BU~LDiNG SAINT PAUL. MINNESOTA 55102 • (612) 2278318 $1,300,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1976 CITY OF MONTICELLO, MINNESOTA AWARD: BANCNORTHWEST Minneapolis, Minnesota and Associate SALE: July 13, 1976 Moody's Rating: A Net Interest Bidder Coupons Price Cost & Rate BANCNORTHWEST Cronin & Marcotte Inc. Both of Minneapolis, MN THE FIRST NATIONAL BANK OF SAINT PAUL Saint Paul, ~ First National Bank of Minneapolis White, Weld & Company Inc. Reynolds Securities Inc. Robert W. Baird & Co. Incorporated All of Minneapolis, MN DAIN, KALMAN & QUAIL, INC. Allison-Williams Co. Piper, Jaffray & Hopwood, Inc. All of Minneapolis, MN Bank of Oklahoma, N.A. Tulsa, OK E. J. PRESCOTT ~ COMPANY, a DIVISION OF CARLETON D. BEH CO. Minneapolis, MN American National Bank Saint Paul, MN Merrill, Lynch, Pierce, Fenner & Smith Incorporated Paine, Webber, Jackson S Curtis Incorporated Both of Minneapolis, MN 5.00% 5.25% 5.50% 5.60% 5.75% 5.90% 6.00% 6.10% 4.05% 5.45% 5.50% 5.60% 5.75% 5.90% 6.00% 6.10%. 6.25% 5.50% 5.75% 5.80% 6.00% 6.10% 5.25% 5.50% 5.75% 6.00% 6.10% 6.20% 1978-80 1981 1982-87 1988 1989 1990 1991-92 1993 1978 1979-81 1982-87 1988 1989 1990 1991 1992 1993 1978-86 1987-89 1990 1991 1992-93 1978-82 1983-85 1986-87 1988-91 1992 1993 $1,300,026.31 $1,300,000.00 $1,300,006.55 $1,300,000.00 $750,807.44 (5.744%) $J57,507.50 (5.795%) $758,145.95 (5.800%) $767,155.00 (5.8695%) • • REOFFERING SCHEDULE OF THE PURCHASER Rate Year 5.00% 1978 5.00% 1979 5.00% 1980 5.25% 1981 5.50% 1982 5.50% 1983 5.50% 1984 5.50% 1985 5.50% 1986 5.50% 1987 5.60% 1988 5.75% 1989 5.90% 1990 6.00% 1991-92 6.10% 1993 Yield 4.oox 4.20% 4.40% 4.50% 4.70% 4.90% 5.10% 5.20% 5.35% 5.50% 5.60% 5.75% 5.90% 6.00% 6.00% Average Maturity: 10.05 Years BBI: 6.78 ' • • The Council then proceeded to consider such bids. After the bids had been considered and discussed, member Walters introduced the following resolution and moved its adoption: RESOLUTION ACCEPTIi~1G BID ON SALE OF $1,300,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1976 PROVIDING FOR THEIR ISSUAT?CE AND LEVYING A TAX FOR THE PAYT~NT THEREOF BE IT RESOLVED by the Council of the City of Monticello, Minnesota, as follows: 1. That the bid of BancNorthwest to purchase $1,300,000 General Obligation Improvement Bonds of 1976 of the City, in accordance vrith the notice of bond sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $1,300.000 (plus a premium of $26. 1 ) 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 Northwestern National Bank, Minneapolis, Minnesota ~ or any successor paying agent duly appointed by the City. 2. The $1,300,000 negotiable coupon general obliga- tion bonds of the City shall be dated August 1, 1976 and shall be issued forthwith. Said bonds shall be 260 in number and numbered from 1 to 260, both inclusive, in -the denomin- ation of $5,000 each. Said bonds shall mature serially, lowest numbers first, on February 1 in the years and amounts as follows: $ 5,000 $ 70,000 $ 75,000 $ 80,000 $ 85,000 $ 90,000 X100, /0~~0~~n0 $160,000 $110,000 $100,000 in in in in in in i. n 1 T1 in in in the year 1878; each of the years each of the years both inclusive; each of the years the year 1986; each of the years the year 1988; the ye~!» ~ 990; the year 1991; the year 1992; and the year 1993. 1979 and 1980; 1981 to 1983, 1984 and 1985; 1987 and 1988; -2- • 3. Said bonds shall provide funds for the construc- tion of various 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. j~lork ors 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 interest, payable August 1, 1977 and semiannually there- after on February 1 and August 1 of each year, at the respec- tive rates per annum set opposite said maturity years and serial numbers: Maturity Years Serial Numbers Interest Rate 1978-1980 1-29 5.OOo 1981 30-44 5.25a 1982-1987 45-141 5.500 1988 142-159 5.60% 1989 160-179 5.75% 1990 180-198 5.90% 1991-1992 199-240 6.00s 1993 241-260 6.100 5. All bonds of this issue maturing in the years 1988 to 1993, both inclusive (bonds numbered 142 to 260, both inclusive), shall be subject to redemption and prepayment at the option of the City in inverse order of serial numbers, on February 1, 1987 and on any interest payment date there- after at par and accrued interest. Published notice of redemption shall in each case be given in accordance with law, and at least thirty days prior mailed notice of redemption shall be given to the bank where said bonds are pay ab le and to any registered holders, provided that published notice alone shall be effective without mailed notice. Holders desiring to receive mailed notice must register their names, addresses and bond numbers with the City Clerk. 6. The bonds and interest coupons to be issued h~r~~.~nder shall be in substantially the following form: -3- ~ ~ UNITED STATES OF AMERICA STATE OF MINNESOTA t~1RIGHT COUNTY CITY OF T~TONTICELLO rv o . GENERAL OBLIGATION IMPROVEMENT BOND OF 1976 $5,000 KNOW ALL MEN BY THESE PRESENTS that the City of N'.onticello, 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 th< first day of February, 19 and to pay interest therecn from the date hereof until the principal is paid at the rate of percent ( i??) per annum, payable on-the first day of August, 1977 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 curren;:y 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 1988 to 1993, both inclusive (bonds numbered 1112 to 260, both inclusive), are subject to redemption and prepayment at the option of the City in inverse order of serial numbers, on Febr~.a.ary 1, 1987 ar~d on any interest payment date thereafter at par and accrued interest. Published notice of redemption shall in each case be given in accordance with law, and at least thirty days prior mailed notice of redemption shall be given to the bank where said bonds are payable and to any r~~gistE~red holders, provided that published notice alone shall b~::~ effective tiaithout mailed notice. Holders desiring to r~,ceive mailed notice must register their names, addresses and bond numbers with the City Clerk. -4- • This bond is one of an issue in the total principal amount of $1,300,000 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 various improvements, and is payable out of the Improvement Bonds 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 APID 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 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 signature of the Mayor and the manual signature of the City Administrator; the corporate seal 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 August 1, 1976. Mayor -5- • (Form of Coupon) No. $ On the first day of August (February), 19_, unless th° bond described below is called for earlier redemption, the City of P~lonticello, 6~Iright County, T*linnesota, will pay to _~ bearer at or any successor paying agent duly appointed by the City, the sum shocen hereon for interest then due on its General Obli- gation Improvement Bond of 1976 No. dated August 1, 1976. /s/ Facsimile /s/ Facsimile City Administrator TZayor -6- 7. The bonds shall be executed on behalf of the City by the signature of its Mayor and the signature of its Clerk and be sealed with the seal of the City; provided, that the seal may be omitted and that one of such signatures and the seal of the City, if not omitted, may be printed facsimiles; and provided further that may act as agent of the City for pur- poses of authenticating the bonds by one or more persons authorized to sign the bonds on behalf of said bank in which event the signatures of both the Mayor and the City Clerk shall be facsimile signatures. The interest coupons pertaining thereto shall be executed by the printed, engraved or litho- graphed facsimile signatures of the Mayor and Clerk. 8. 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. 9. There has heretofore been created a special account designated "Improvement Bonds Common Fund" hereafter renamed "Improvement Bonds Common Account" to be held and administered by the City Treasurer separate and apart from all other accounts of the City. Said Account shall be continued and maintained in the manner herein specified until all of the bonds herein authorized and the interest thereon have been fully paid. In said Account there shall be maintained a separate fund, to be designated as the "1976 Improvement Bonds Construction Fund" and the "Common Sinking Fund Account" hereafter renamed the "Common Debt Service Fund" shall be continued and maintained. The proceeds of the sale of the bonds herein authorized, less any premium and accrued interest received thereon, and less any amount paid for said bonds in excess of $1,300,000, and less capitalized interest in the amount of $ 54,880.00 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before February l.~ 1978 ), plus any special assessments levied caith 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 1976 Improvement Bonds Construction Fund, from which there shall be paid all costs and expenses of making said improve- ments listed in paragraph 10, including the cost of construc- tion contracts heretofore let and all other costs incurred and ~._~ ~:, ,erred o.f t~~e kind authorized in P~Iinne:;ot~. ; tatufies, ~; ; t_~~~~~ ~75.6~; anal the rnoney~ .Ln sand ac;cvunl; ski-:L1 be used for no other purpose except as other~•rise 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 ant.icix~ated date of commencement of the collection of taxes or special assessments herein levied or covenanted to be levied, -7- • and provided further that if upon completion of said improve- ments there shall remain any unexpended balance in said 1976 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 1976 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 (a) all collections of special assessments herein covenanted to be levied and either initially credited to the 1976 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, all funds paid for said bonds in excess of $1,300,000, (c) capitalized interest in the amount of $ 54,880.00 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before February 1,1978), (d) any collections of all taxes herein levied for the payment of said bonds; and (e) all funds remaining in said 1976 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 heretofore created 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 hereafter issued by the City and made payable from said Fund. 10. It is hereby determined that no less than 20% of the cost of each improvement project 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 trill 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 C~~~i~^~1 er at~,y of the City officers or employees, either in the ~ i~.il :l ~ v: '. :~il• ,1i ~ j ~~r' ~ L~!:. _X~c'r.L ~l ri~c)_1'l ~: t.' ~) ~_ c~. rl ~. c.-:=a _i ~:io:l pry cedent then: i,o, the City and trii;~ Council t•~i ll forthr,_ith do all such further acts and take all such further procee~~ings as may be required by larr to make such assessments -8- ~ ~ a valid and binding lien upon such property. Subject to such adjustments as are required by conditions in existance 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 shoUrn below and with interest on the deferred balance of all such assessments at the rate of at least-7.50 ~ per annum: Improvement Designation Amount 76-1 $640,265 At the time the assessments City Council shall, based on the then lections of such assessments, make any valorem taxes required to be levied in the City continues to be in compliance Section X475.61, Subdivision 1. Levy Years 1977-1996 are in fact levied the current estimated col- adjustments in any ad order to assure that with Priinnesota Statutes, 11. 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: _g_ • Year of Tax Year of ^ax Levy Collection Amount 1976 1977 $65,279 1977 1978 $69,810 1978 1979 $68,536 1979 1980 $72,512 1880 1981 $70,778 1981 1882 $68,849 1982 1983 $72,168 1983 1984 $69,949 1884 1985 $72,979 1985 1980 $75,723 1986 1987 $72,926 1987 1988 $80,535 1988 1988 $71,648 1989 1990 $73,414 1990 1991 $80,015 _ 1991 1992 $64,986 Said tax levies are such that if collected in full they, together with estimated collections of special assess- ments and other revenues pledged for the payment of said bonds, ~•rill 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 purer to reduce the levies in the manner and to the extent permitted by Sec. X475.61(3) H.S.A. For the prompt and full payment of the principal of and interest on said bonds, as the same respectively be- come 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 there- from, 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 :•rithout interest from the Com~~on Debt Service Fund when a sufficient balance is available 12. ~i'he City Clerk is herby directed to f_il~: a certified copy of this resolution vrith the County Auditor of ~~right County, Prlinnesota, together vrith such other infor- mation as he shall require, and to obtain from said Auditor r~~ cez°tificate that said bonds have been entered in .the said Aud_itor's Bond Register, and that the tax levy required by 1~~.~~r has beE:n made. -10- • • 13. 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 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 shoer 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 othercaise kno~,~rn 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 PQartie and upon vote being taken thereon, the folloTrring voted in favor thereof: All members present and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. -11- • • ST:lr'~: ~F P"I1NES0~1'A CITY 0'' i~0i1iICELLO I, the undersigned, being the duly qualified and acting Clerk of the City of Monticello, Minnesota, DO HE~E~Y CERTIrY that I have compared the attached and fore- goinz; extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete trar.sc~r°ipt of the minutes of a meeting of the City Council of said City, duly called and held on the date therein ir.dic~ted, insofar as such minutes relate to the opening and consiaering of bids for, and awarding the sale of $1,300,000 Gen,ral Obligation Improvement Bonds of 1976 of said City. LdITP1ESS my hand and the seal of said City thi-s _~,3 ~' day of `, 1976 . ty Clerk i ~ <;~ ~ ~~ ~.n~) -12-