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HomeMy WebLinkAbout10-22-79 Special Mtg. 154 Hastings, Minnesota October 22, 1979 The City Council of the City of Hastings, Minnesota met in a special meeting on Monday, October 22, 1979 at 5:00 0' clock P.M. in the Council Chambers of the City Hall. Members present: Councilmen Trautmann, Trutna, Liska, Stoffel, Shannon, Karnick, Legler, and Acting Mayor, Collins. r Members absent: Mayor Petersen. Pursuant to due call and notice thereof, a special meeting of the City Council of the City of Hastings, Washington and Dakota Counties, Minnesota, was duly held at the City Hall in said City on the 22nd day of October, 1979, at 5:00 0' clock P.M. for the purpose of opening and considering bids for and award- ing the sale of $1,700,000 General Obligation Improvement Bonds of 1979, Series B of said City. The Clerk presented affidavits showing publication of notice of call for bids on $1,700,000 General Obligation ImprovEment Bonds of 1979, Series B of the City, for which bids were to be received at this meeting, in accordance wi th the resolution adopted by the City Council on September 17, 1979. Said affidavits 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 said bonds. The follo.ving were received: rl The First National Bank of Saint Paul Banc Northwest Arrerican National Bank and Trust Company Cronin & Marcotte, Inc. First National Bank of Minneapolis E.F. Hutton & Co. Inc. Merrill Lynch White Weld Capital Markets Group Paine, webber, Jackson & Curtis, Inc. Moore, Juran & Company, Inc. M.H. Novick & Co. INC. Robert S.C. Peterson, Inc. N.W. National Bank, Hastings OOUPONS 6.60% 1982-91 6. 70% 1992-93 7.00% 1994-2002 PRICE $1,678,002.00 NET INTEREST casT & RATE $1,708,891.75 (6,99935%) BIDDER The Council then proceeded to consider such bids. After the bids had been considered and discussed, Councilman Trutna introduced the following resolution and moved its adoption: r-- RESOLUfIoo ACCEPTING BID 00 SALE OF $1, 700,000 GENERAL OOLIGATION IMPROVEMENT OONIS OF 1979, SERIES B PROVIDING FOR TIIEIR ISSUANCE AND LEVYING A TAX FOR TIIE PAYMENT TIIEREOF RFSOllJTION #268-79 BE IT RESOLVED by the Council of the City of Hastings, Minnesota, as follo.vs : 1. That the bid of 1st National Bank of St. Paul to purchase $1,700 , 000 General Obligation ImprovEment Bonds of 1979, Series B 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 $1,678,002.00 is hereby found, deter- mined 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 First National Bank of Saint Paul in St. Paul MN, or any successor paying agent duly appointed by the City. 155 2. The $1,700,000 negotiable coupon general obligation bonds of the City shall be dated November 1, 1979 and shall be issued forthwith. Said bonds shall be 340 in nl..1IIDer and nuni:lered fran 1 to 340, both inclusive, in the daoonimation of $5,000 each. Said bonds shall mature serially, lo.vest nunbers first, on February 1 in the years and arrounts as follCM'S: $40,000 in the year 1982; $45,000 in the year 1983; $50 ,000 in each of the years 1984 and 1985; $55,000 in each of the years 1986 and 1987; $60,000 in the year 1988; $65,000 in the year 1989; $70,000 in each of the years 1990 and 1991; $75,000 in the year 1992; $80 ,000 in the year 1993; $85,000 in the year 1994; $90 ,000 in the year 1995; $95,000 in the year 1996; $100 ,000 in the year 1997; $110,000 in the year 1998; $115,000 in the year 1999; $l~, 000 in the year ~O; $130,000 in the year ~Ol; and $140 ,000 in the year 2002. n 3. Said bonds shall provide funds for the construction of storm sewer improvements in the City. The total cost of said improvements, which shall include all costs enuroorated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the arrount of the bonds herein authorized. Work on the improvements shall proceed with due diligence to canpletion. 4. The bonds of said issue maturing in the years and bearing the serial nuni:lers set forth be[lo.v shall bear interest, payable August 1, 1980 and semiannually thereafter on February 1 and August 1 of each year, at the respec- tive rates per annum set opposite said maturity years and serial nunbers: MATURI'lY YEARS 1982-91 1-112 6.60% 0... 1992-93 113-143 6.7(J% 1994-2002 144-340 7.00% 5. All bonds of this issue maturing in the years 1995 to 2002, both inclusive (bonds numbered 161 to 340, both inclusive), shall be subject to redemption and prepayment at the option of the City in inverse order of serial nUIi:>ers and by lot wi thin a cannon maturity, on February 1, 1994 and 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 mailed notice of redemption shall be given to the bank where said bonds are payable. SERIAL NUMBERS INTEREST RATE 6. The bonds and interest coupons to be issued hereunder shall be in substantially the following form: BNITED STATES OF AMERICA STATE OF MINNESOl'A WASHING"l'rn AND DAKOl'A CXXJNTIFS CI'lY OF HASTINGS No. $5,000 GENERAL OOLIGATIoo IMPROVEMENT J3CW) OF 1979, SERIFS B KNav AIL PERSOOS BY 'IHESE PRESENTS that the City of Hastings, U. Washinglbon and Dakota Cbunties, Minnesota, certifies that it is indebted for value received pranises to pay to bearer the principal sum of FIVE 'IHOU3AND OOLLARS 00 '!HE FIRST DAY OF February , 19_ and to pay interest thereon fran the date hereof until the principal is paid at the rate of % ( %) per annun, payable on the first day of August, 198:> and semiannually thereafter on the first day of February and the first day of August in each year, interest 156 to maturity being represented by and payable in accordance with and upon presentation and surrender of the interest coupons hereto attacbed, as the same severally becaoo 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 Dni ted 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 1995 to 2002, both inclusi ve (bonds nunbered 161 to 340, both inclusive), are subject to redemp- tion and prepayment at the option of the City in inverse order of serial r numbers and by lot wi thin a maturity, on February 1, 1994 and 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 mailed notice of redemption shall be given to the bank where said bonds are payable. This bond is one of an issue in the total principal amount of $1,700,000 all of like date and tenor, except as to serial nunber, ma turi ty , interest rate and redemption 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 DDney for storm sewer. (Form of Coupon) No. $ On the first day of August (February), 19 , unless the bond described belOW' is called for earlier redemption, the City of Hastings, Wash- ington and Dakota Counties, Minnesota, will pay to bearer at or any successor paying agent duly appointed by the City, the sum shawn for interest then due on its General ())liga tion Improvement Bond of 1979, Series B No. dated Novenber 1, 1979. Ii /s/ Facsimile Ci ty Clerk /s/ Facsimile Mayor 7. The bonds shall be executed on behalf of the City by the signatures of its Mayor and the signature of its Clerk 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 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 Corrroon Account" held and administered by the City Treasurer separate and apart fran all other accounts of the City. Said account shall con- tinue to be maintained in the manner heretofore specified until all of the bonds heretofore, herein and hereafter authorized and made payable fran 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,Series B Improvement Bonds Construction Fund',' The proceeds of the sale of the bonds herein authorized, less any accrued interest received thereon, and less any amount paid for said bonds in excess of $1,678,000. and less capitalized interest in the amount of $113,000 (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, Series B Improvement Bonds Construction Fund, fran which there shall be paid all costs and expenses of making said improvements listed in paragraph 10, including the cost of any con- struction contracts heretofore let and all other costs incurred and to be in- curred of the kind authorized in Minnesota Statutes, Section 475.65; and the lIDneys in said fund shall be used for no other purpose except as otherwise pro- vided 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 CaTI- mencement of the collection of taxes or special assessments herein levied or 157 covenanted to be levied; and provided further that if upon canpletion of said improvements there shall ranain any unexpended balance in said 1979, Series B Improvement bonds Construction Fund, said balance (other than any special assessments) may be transferred by the Council to the fund of any other imp- rovement insti tutedpursuant to Minnesota Statutes, Chapter 429; and provided further that any special assessments credited to the 1979, Series B Improve- ment 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 Carmon Debt Service Fund heretofore created (a) all collec- tions of special assessments herein covenanted to be levied and either initially credi ted to the 1979, Series B Improvement Bonds Construction Fund and required to pay any principal and interest due on the bonds or collected subsequent to the conpletion of said improvements and payment of the costs thereof; (b) all accrued interest received upon delivery of said bonds, (c) all funds paid for said bonds in excess of $1,678,000, (d) capitalized interest in the amount of $113,000 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before February 1, 1981), (e) any collections of all taxes herein levied for the pa~nt of said bonds; and (f) all funds remaining in said 1979, Series B Improvement Bonds Construction Fund after canpletion of the i1nP~vements and payment of the costs thereof, not so trans- ferred to the fund of another improvement. The Carm::>n 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 fran said Fund as provided by law. Any sums fran time to time held in the Carmon Debt Service Fund (or any other City Fund which will be used to pay principal or interest to becane 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 saidarbitrage regulations on such investments after-taking into acco~t any applicable "temporary periods" made available under the federal arbip)rage regu- lations. 10. It is hereby detennined that no less than 2IY!o of the cost of each improvement project financed hereunder to the City wi thin the meaning of Minn- esota 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 benefi ted by said improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let wi thin one year/ after ordering each improvement project financed hereunder unless the resol~on ordering the improvement project specifies a different time limit for the let- ting 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 in- valid 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 Councilor 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. At the time the assessments are in fact levied the City Council, shall, based on the then current estimated collections 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 conpliance with Minnesota Statutes, Section 475.61, Subdivision 1. 11. 'Ib provide rroneys 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 valoran 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 follONs: n 0" . . o 158 Year of Tax Year of Tax Amount Levy Collection 1980 1981 $164 , 110 1981 1982 166,588 1982 1983 168,720 1983 1984 165,255 1984 1985 167,040 1985 1986 163,228 1986 1987 164 ,667 II 1987 1988 165,759 1988 1989 166,504 i 1989 1990 161,653 1990 1991 162.052 199V, 1992 162.026 1992 1993 161,648 1993 1994 160,650 1994 1995 159,285 1995 1996 157,553 1996 1997 160,703 1997 1998 157,868 1998 1999 154,665 1999 2000 156,345 2000 2001 157,290 Said tax levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged for the payment of said bonds, will produce at least five percent in excess of theaIIDunt needed to meet when due the principal and interest payment 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 paver to reduce the levies in the manner and to the extent permitted by Sec. 475.61 (3) M.S.A. r I For the prompt and full payment of the principal of and interest on said bonds, as the same respectively becane due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocable pledged. If the balance in the Cammon Debt Service Fund is ever insufficient to pay all principal and interest then due on the bonds payable therefrom, the deficiency shall be pranptly paid out of any other funds of the City which are available for such purposes, and such other funds may be reinimrsed without interest from the Corrmon Debt Service Fund when a sufficient balance is available therein. 12. The City Clerk is hereby directed to file a certified copy of this resolution with the County Auditors of Dakota and Washington Counties, Minnesota, together with such other information as they shall require, and to obtain from each said Auditor their certificates that said bonds have been entered in their bond registers, and that the tax levy required by law has been made. ,--- 13. The officers of the City are hereby authroized and directed to pre- pare and furnish to the purchaser of said bonds, and to the attorneys approving the legali ty 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 other- wise kncmn to then, 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 IIDtion for the adoption of the foregoing resolution was duly seconded by Councilman Legler and upon vote being taken thereon, the follaving voted in favol'! thereof: all menbers present and the follaving voted against the same. none. Whereupon said resolution was ~~ to adjourn Mayor Moved by Councilman Trautmann, the meeting. Ayes, 8; Nayes, none.