HomeMy WebLinkAbout05-22-78 Spec. Mtg.
283
Hastings, Minnesota
May 22, 1978
The City Council of the City of Hastings, Minnesota met in a special
meeting on Monday, May 22, 1978 at 5:00 o'c19ck P.M. in the Council Chambers of
the City Hall.
Members present: Shannon. Trautmann, Erickson, Trutna, Novak, Karnick,
Collins, and Mayor Petersen.
r--
I
Members absent:
Council member Fischer.
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 May, 1978, at 5:00
o'clock P.M. for the purpose of opening and considering bids for and awarding the
sale of $920,000 General Obligation Improvement Bonds of 1978, Series A of said
City.
The Clerk presented affidavits showing publication of notice of call
for bids on $920,000 General Obligation Improvement Bonds of 1978, Series A of the
City, for which bids were to be received at this meeting, in accordance with the
resolution adopted by the City Council on April 17, 1978. 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 following bids were received: NET INI'EREST
BIDDER COUPONS PRICE COST & RATE
The First National Bank 5.20% 1981-89 $920,046.00 $319,407.34
of St. Paul (5.19925%)
Carleton D. Beh Co.
,-- First National Bank
, of Minneapolis
Robert W. Baird & Co.
Bancnorthwest 5.30% 1981-87 920,564.69 327,171.96
Cronin & Marcotte, Inc. (5.325%)
Northwestern National
Bank, Hastings
Piper, Jaffray & Hopwood 5.25% 1981-82 920,142.60 327,259.07
Incorporated 5.30% 1983-87 (5.327%)
Allison-Williams Company 5.40% 1988-89
Dain, Kalman & Quail, Inc.
The Council then proceeded to consider such bids. Mter the bids
had been considered and discussed, member Karnick introduced the following
resolution and moved its adoption:
RESOLUTION ACCEPTING BID ON SALE OF
$920,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1978, SERIES A AND
PROVIDING FOR THEIR ISSUANCE
RESOLUTION #167-78
follows:
BE IT RESOLVED by the Council of the City of Hastings, Minnesota as
1. That the bid of The First National Bank of Saint Paul to purchase
$920,000 General Obligation Improvement Bonds of 1978, Series A 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 $920,000 (plus a premium of $46.00)
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 uncuceessful bidders. Sadd 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.
284
2. The $920,000 negotiable coupon general obligation bonds of the
City shall be dated June 1, 1978 and shall be issued forthwith. Said bonds
shall be 184 in number and numbered from 1 to 184, both inclusive, in the
denomination 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:
$100,000
$110,000
$100,000
$110,000
in the year 1981;
in the year 1982;
in each of the years
in the year 1989.
1983 to 1988, both inclusive; and
3. Said bonds shall provide funds for the construction of various I~l
improvements in the City. The total cost of said improvements, which shall l I
includde abll cost IS enumeratled inhMinnesota Sftahtutbes'dsehction 475th.65,.isdesti-k ~J
mate to e at east equa to t e amount 0 t e on s erein au orlze. Wor
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 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 Serial Numbers Interest Rate
1981-89 1-184 5.20%
5. The bonds and interest coupons to be issued hereunder shall be
in substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON AND DAKOTA COUNTIES
CITY OF HASTINGS
$5,000
No.
GENERAL OBLIGATION IMPROVEMENT
BOND OF 1978,SERIES A
o
KNOW ALL MEN BY 1HESE PRESENTS that the City of Hastings, Washington,
and Dakota Counties, Minnesota, certifies that it is indebted and for value
received promises to pay to bearer, without option of prepayment, the principal
sum of
FIVE rnOUSAND 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, 1979 and semi-
annually tnereafter on the first day of February and the first day of August of
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
Clty, 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 $920,000
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 improvements in the City, and is payable out of the Improve-
ment Bonds COTIBIlon Account of the Ci 1;y. This bond constitutes a general obli - III
gation of the City, and to provide moneys for the prompt and full payment of -..JI
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 irrevocable pledged.
IT IS HEREBY CERTIFIED AND 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 ours tanding on the date hereof and the date of its actual issuance
and delivery does not exceed any constitutional or statutory limitation of
indebtedness.
285
IN WITNESS WHEREOF, the City of Hastings, Washington and Dakota
COlUlties, Minnesota, by its City COlUlcil has caused this bond to be executed
in its behalf by the facsimile signature of the Mayor and the manual signa-
ture of the City Clerk, the corporate seal of said City having been inten-
tionally 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 JlUle 1, 1978.
City Clerk
/s/ facsimile
Mayor
(Form of Coupon)
r--
I
$
No.
On the first day of August, (February), 19 , the City of Hastings,
Washington and Dakota COlUlties, Minnesota, will pay toOearer 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,
Series A No. dated JlUle 1, 1978.
/s/ facsimile
City Clerk
/s/ facsimile
Mayor
6. 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 one of such signatures and the seal of the City may be
printed facsimiles; 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.
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 accolUlt designated
"Improvement Bonds Connnon AccOlUlt" held and administered by the City Treasurer
separate and apart from all other accolUlts of the City. Said ACCOlUlt shall
continue to be maintained in the manner heretofore specified lUltil all of the
bonds heretofore, herein and hereafter authorized and made payable from said
ACCOlUlt and the interest thereon have been fully paid. In said AccOlUlt there
shall be created and maintained a separate flUld, to be designated as the
"1978 Improvement Bonds Construction FlUld". The proceeds of the sale of the
bonds herein authorized, less any premium and accrued interest received thereon,
and less capitalized interest in the amolUlt of $30,000 (subject to such adjust-
ments as are appropriate to provide sufficient flUlds to pay interest due on the
bonds on or before August 1, 1979), 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 FlUld, 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 let and all other costs in-
curred and to be incurred of the kind authorized in Minnesota Statutes, Section
475.65; and the moneys in said flUld 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 connnencement of the collection of special assessments herein covenanted
to be levied; and provided further that if upon completion of said improvements
there shall remain any lUlexpended balance in said 1978 Improvement Bonds Con-
struction FlUld, said balance (other than any special assessments) may be trans-
ferred by the COlUlcil to the flUld of any other improvement instituted pursuant
to Minnesota Statutes, Chapter 429; and provided further that any special assess-
ments credited to the 1978 Improvement Bonds Construction FlUld 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 Connnon Debt Service FlUld here-
tofore created (a) all collections of special assessments herein covenanted to be
levied and either initially credited to the 1978 Improvement Bonds Construction
FlUld 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 amolUlt of $30,000 (subject to such adjustments as
are appropriate to provide sufficient flUlds to pay interest due on the bonds on or
before August 1,1979), and (d) all flUlds remaining in said 1978 Improvement Bonds
286
Construction !lffid 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 of the bonds issued hereunder and any other general obli-
gation bonds of the City heretofore or hereafter issued by the City and made
payable from said Flffid.
9. It is hereby determined that no less than 100% of the cost 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 wi 11 do and
perform as soon as they may be done, all acts and things necessary for the final rl
and valid levy of such special assessments, and in the event that any such I I
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 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 COlfficil 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 8.00% per annum:
Improvement
Designation
East Hastings Sanitary
Sewer & Water Extension
AmOlffit
Levy Years
$260,000
1978-87
1978 Street Improvements
$660,000
1979-88
Said special assessments are such that if collected in full they,
together with estimated collections of other revenues herein pledged for the
payment of said bonds, will produce at least five percent in excess of the
amolffit needed to meet when due the principal and interest payments on the bonds.
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 irrevocable pledged. If the
balance in the Common Debt Service Flffid is ever insufficient to pay all prin-
cipal and interest then due on the bonds payable therefrom, the deficiency shall
be promptly paid out of any other flffids 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.
o
10. The city Clerk is hereby directed to file a certified copy of this
resolution'with the County Auditor of Washington and Dakota COlffities, 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 Aufitor's
Bond Register.
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 [I
otherwise known to them, and all such certified copies, certificates and affidavits, I
including any heretofore furnished, shall be deemed representations of the City J
as to the facts recited therein.
The motion for the adoption of the foregoing resolution was duly
seconded by COlfficilman Novak and upon vote being taken thereon, the following
voted in favor thereof: all members present and the following voted against the
same: None.
Whereupon said resolution was declared duly passed and adopted.
287
.
REOFFERING SCHEDULE OF THE PURrnASER (omitted from Page 1)
Rate Year Yield
5.20% 1981 4.60%
5.20% 1982 4.70%
5.20% 1983 4.80%
5.20% 1984 4.90%
5.20% 1985 5.00%
5.20% 1986 5.00%
5.20% 1987 5.10%
5.20% 1988 5.15%
5.20% 1989 5.20% BBI: 5.98
Average Maturity: 6.68 years
r-
I
Pursuant to due call and notice thereof, a special meeting of the City
Council of the City of Hastings, Dakota and Washington Counties, Minnesota, was
duly held at the City Hall in said City on the 22nd day of May, 1978, at 5:00
o'clock P.M. for the purpose of opening and considering bids for the awarding
the sale of $100,000 General Obligation Tax Increment Bonds of 1978 of said City.
Members present: Councilmen Shannon, Trautmann, Erickson, Trutna,
Novak, Kamick, Collins and Mayor Petersen.
Members absent: Councilperson Fischer.
The Clerk presented affidavits showing publication of notice of call for
bids on $100,000 General Obligation Tax Increment Bonds of 1978 of the City, for
which bids were to be received at this meeting, in accordancd with the resolution
adopted by the City Council on April 17, 1978. 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 following bids were received:
BIDDER
COUPONS
The First National Bank
of Saint Paul
Carleton D. Beh Co.
First National Bank of
Minneapolis
Robert W. Baird & Co.
5.30% 1980
5.35% 1981-89
PRICE
NET INTEREST
COST & RATE
$32,983.34
(5.3486%)
$100,000
REOFFERING SCHEDULE OF THE PURrnASER
Rate
5.30%
5.35%
5.35%
5.35%
5.35%
5.35%
5.35%
5.35%
5.35%
5.35%
BBI: 5.98
Average Maturity: 6.17 Years
Year
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
Yield
4.50%
4.60%
4.70%
4.80%
4.90%
5.00%
5.00%
5.10%
5.15%
5.20%
The Council then proceeded to consider such bids. After the bids had
been considered and discussed, member Erickson introduced the fOllowing resolution
and moved its adoption:
RESOLUTION AUTHORIZING THE ISSUANCE OF
$100,000 GENERAL OBLIGATION
TAX INCREMENT BONDS AND
PLEDGING FOR THE SECURITY lliEREOF
TAX INCREMENTS FROM
THE DOWNTOWN REDEVELOPMENT PROJECT
BE IT RESOLVED by the Council of the City of Hastings, Minnesota as
follows:
RESOLUTION #168
288
1. That the bid of The First National Bank of Saint Paul to purchase
$100,000 General Obligation Tax Increment Bonds of 1978 of the City, in accord-
ance with the notice of bond sale, at the rates of interest hereinafter set
forth, and to pay therefor the sum of $100,000.00 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 prin-
cipal and interest at the First National Bank of Saint Paul, in St. Paul, Minn.
or any successor paying agent duly appointed by the City.
2. The $100,000 negotiable coupon general obligation bonds of the City
shall be dated June 1, 1978 and shall be issued forthwith. Said bonds shall be r-1
20 in number and numbered from 1 to 20, both inclusive, in the denomination of
$5,000 each. Said bonds shall mature serially, lowest numbers first, on February ,
1 in the years and amounts as follows: L_ j
$10,000 in each of the years 1980 to 1989, both inclusive.
3. Said bonds shall provide funds for contributions to a redevelopment
project undertaken by the Housing & Redevelopment Authority of the City and desig-
nated as the Downtown Redevelopment Project, herein called Project. Under an
agreement between the Authority and the City, tax increments and net proceeds
derived from the Project, have been poedged to the payment of such bonds and
interest thereon. The estimated collection of such tax increments exceeds 20%
of the cost of the Project. The total cost of said Project, 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 Project
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, 1979 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 numbers:
Maturity Years
1980
1981-89
Serial Numbers
1-2
3-20
Interest Rate
5.30%
5.35%
n
LJ
5. The bonds and interest coupons to be issued hereunder shall be ln
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA AND WASHINGTON COUNTIES
CITY OF HASTINGS
$5,000
No.
GENERAL OBLIGATION
TAX INCREMENT
BOND OF 1978
KNOW ALL MEN BY 1HESE PRESENTS that the City of Hastings, Dakota and
Washington Counties, Minnesota, certifies that it is indebted and for value re-
ceived promises to pay to bearer, without option of prepayment, the principal
sum of
FIVE THOUSAND DOLLARS
on the first Hay of February , 19 and to pay interest thereon from the date
hereof until the principal is paia-at the rate of percent ( %)
per annum, payable on the first day of August 1979 and semiannually thereafter [ l!',
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 pre- J
sentation 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
$100,000 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
289
the Constitution and laws of the State of Minnesota for the purpose of pro-
viding money for contributions to a redevelopment project undertaken by the
Housing & Redevelopment Authority of the City pursuant to the Municipal Housing
& Redevelopment Act, and is payable out of the General Obligation Tax Increment
Bonds of 1978 Account of the City. This bond constitutes a general obligation
of the City, and to provide moneys for the prompt and full payment os 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 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 indebted-
ness.
IT WITNESS WHEREOF, the City of Hastings, Dakota 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 Clerk, and
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 June 1, 1978.
City Clerk
/s/ facsimile
Mayor
(Form of Coupon)
No.
$
On the first day of August (February), 19 , the City of Hastings,
Dakota and Washington Counties, 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 Tax Increment Bond of 1978
No. dated June 1, 1978.
/s/ facsimile
City Clerk
/s/ facsimile
Mayor
6. 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 one of such signatures and the seal of the City may be printed
facsimiles; and provided further that the corporate seal may 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 or
Clerk.
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 is hereby created a special account to be designated "General
Obligation Tax Increment Bonds of 1978 Account" to be held and administered by the
City Treasurer separate and apart from all other accounts of the City. Said
account shall be maintained in the manner herein specified until all of the bonds
herein authorized, and any other general obligation tax increment bonds hereafter
issued to complete the Project, including any modifications or additions thereto,
and the interest thereon have been fully paid and the City has been fully reim-
bursed from the pledge of tax increments and net proceeds for all of the principal
and interest of such bonds paid by the City from taxes levied on property in the
City other than the Project area. In said Account there shall be maintained two
separate funds, to be designated as the "Capital Fund" and the "Debt Service Fund",
respectively. The proceeds of the sale of the bonds herein authorized, less any
premium and accrued interest received thereon, and less such amount as is necessary
together with other available funds to pay interest due on the bonds prior to the
anticipated date of commencement of the collection of taxes herein levied, shall
be credited to the Capital Fund, from which there shall be paid all costs and
expenses of said Project, including the cost of any construction contracts, here-
tofore 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 account shall be used
for no other purpose. There is hereby pledged and there shall be credited to the
290
Debt Service Fund, all accrued interest received upon delivery of said bonds,
collections of all tax increments derived from the Project and all taxes herein
levied for the payment of said bonds, and all funds remaining in said Capital
Fund after completion of the Project and payment of the costs thereof. The
Debt Service Fund shall be used solely to pay principal and interest on the bonds
issued hereunder and any other general obligations tax increment bonds hereafter
issued and made payable from said fund, except that upon discharge of such bonds
the City shall use the remaining funds in said fund to reimburse the City as
provided above.
To the extent that any of the Project is sold during the life of the
bonds herein authorized so as to enable the City to retire substantially all of
the bonds at a date which is significantly earlier than the last maturity date l~
of the issue, the City covenants that it will comply with the requirements of
the Internal Revenue Code, Section 103(c) and the applicable regulations from
time to time promulgated thereunder if and to the extent such provisions remain .. J
in full force and effect.
9. The County Auditor of Dakota County has certified that the original
taxable value of real property within the Downtown Redelelopment Project area, as
most recently determined according to the assessment'as of January 1,1974 is
$1,872,837.00. Under the provisions of Minnesota Statutes, Section 465.585, sub-
division 3, the County Auditor will include only the original taxable value in
the assessed valuation upon which he computes the rate of all state, county, city,
school district and other taxes, but will extend the rates so determined against
the entire assessed valuation of such real property in 1975 and each subsequent
year, and the County Treasurer will remit to the City of Hastings acting on behalf
of the Housing & Redevelopment Authority of the City that proportion of the taxes
paid each year on such real property which the excess of the assessed valuation
over the original taxable value bears to such original value.
10. The Authority has agreed to segregate the tax increments derived
from the Project in the Debt Service Fund until payment of all bonds and interest
thereon and reimbursement of the City as provided in paragraph 9 hereof. In
accordance with the provisions of Minnesota Statutes, Section 475.61, the City
Clerk shall certify annually to the County Auditor of Dakota County the amount of
tax increments and any other funds appropriated to and then held in the Debt
Service Fund and shall request the County Auditor to reduce by the amount so cer- l~
tified, and if possible to cancel, the amount of the tax levy otherwise to be
included in the tax rolls next thereafter prepared. _J
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:
Year of Tax Year of Tax
Levy Collection Amount
1978 1979 $19,854
1979 1980 15,556
1980 1981 14,994
1981 1982 14,433
1982 1983 13,871
1983 1984 13,309
1984 1985 12,747
1985 1986 12,186
1986 1987 11,624
1987 1988 11,062
Ir-':II
Said tax levies are such that if collected in full they will produce
at least five percent in excess of the amount needed to meet when due the prin- I___....J
cipal 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 Section 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
291
the 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 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 said Auditors their certificate that said bonds have been entered
in their Bond Registers, that the levy required by law has been made, and that
the Tax Increment Pledge Agreement to be entered into by the City and its
Housing & Redevelopment Authority to secure payment of the bonds has been filed
with the County Auditors.
13. The officers of the City are hereby authorized and directed to
prepare and furnish to the purchaser of said bonds, and to the attorneys approv-
ing 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 representa-
tions of the City as to the facts recited therein.
14. Notwithstanding any provision herein to the contrary, the City
and the Authority reserve the right to terminate or reduce the tax increments
herein pledged to the payment of the bonds and interest thereon to the extent
and in the manner permitted by law.
The motion for the adoption of the foregoing resolution was duly
seconded by Councilman Shannon and upon vote being taken thereon, the following
voted in favor thereof: all members present and the following voted against
the same: None.
Whereupon said resolution was declared duly passed and adopted.
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 May 1978, at 5:00
o'clock P.M. for the purpose of opening and considering bids for and awarding
the sale of $140,000 General Obligation Bonds of 1978 of said City.
The Clerk presented affidavits showing publication of notice of call
for bids on $140,000 General Obligation Bonds of 1978 of the City, for which
bids were to be received at this meeting, in accordance with the resolution
adopted by the City Council on April 17, 1978. 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 following bids were received: NET INTEREST
BIDDER COUPONS PRICE COST & RATE
The First National Bank 5.00% 1981-85 $138,033.00 $ 66,766.17
of Saint Paul 5.20% 1986-89 (5.4577%)
Carleton D. Beh Company 5.35% 1990
First National Bank of
Minneapolis 5.60% 1992
Robert W. Baird & Co.
Piper, Jaffray & Hopwood 4.75% 1981 $138,602.10 $ 67,251. 24
Incorporated 5.20% 1982-88 (5.49737%)
5.25% 1989
5.60% 1990-92
292
REOFFERING SGIEDULE OF THE PUROiASER
Rate
Year
5.00%
5.00%
5.00%
5.00%
5.00%
5.20%
5.20%
5.20%
5.20%
5.35%
5.50%
5.60%
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
Yield
4.60%
4.70%
4.80%
4.90%
5.00%
5.00%
5.10%
5.15%
5.20%
5.35%
5.50%
5.60%
r~
l_~
BBI: 5.98
Average Maturity: 8.74 Years
The. COlUlcil then proceeded to consider such bids. After the bids
had been co~idered and discussed, member Trautmann introduced the following
resolution and moved its adoption:
RESOLUTION ACCEPTING BID ON SALE OF
$140,000 GENERAL OBLIGATION
BONDS OF 1978
PROVIDING FOR THEIR ISSUANCE AND LEVYING
A TAX FOR THE PAYMENT THEREOF
RESOLUTION #169
follows:
BE IT RESOLVED by the COlUlcil of the City of Hastings, Minnesota as
1. That the bid of The First National Bank of Saint Paul to purchase
$140,000 General Obligation 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
therfor the sum of $138,033.00 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 J
at The First National Bank of Saint Paul, in St. Paul, Minnesota or any
successor paying agent duly appointed by the City.
2. The $140,000 negotiable coupon general obligation bonds of the
City shall be dated June 1, 1978 and shall be issued forthwith. Said bonds
shall be 28 in number and numbered from 1 to 28, both inclusive, in the denom-
ination 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:
$10,000 in each of the years 1981 to 1988,
both inclusive; and
$15,000 in each of the years 1989 to 1992,
both inclusive.
3. Said bonds shall provide funds for the improvement and installa-
tion of recreation facilities and other open space and park improvements at Lake
Rebecca Park area in the City (hereinafter referred to as "Project"). The total
cost of said project, 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 Project 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, 1979 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 numbers:
n
Maturity Years
1981-1985
1986-1989
1990
1991
1992
Serial Numbers
1-10
11-19
20-22
23-25
26-28
Interest Rate
5.00%
5.20%
5.35%
5.50%
5.60%
293
5. The bonds and interest coupons to be issued hereunder shall be ln
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON AND DAKOTA COUNTIES
CIIT OF HASTINGS
No.
$5,000
GENERAL OBLIGATION
BOND OF 1978
,--.
KNOW ALL MEN BY 1HESE PRESENTS that the City of Hastings, Washington,
and Dakota Counties, 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 para-at the rate of
percent ( %) per annum, payable on the first day of August, 1979 and semi-
annually tiiereafter 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~ying agent duly appointed by the City,
in any coin or currency of the ~ed States of America which at the time of
payment is legal tender for puhlic and private debts.
This bond is one of an issue in the total principal amount of $140,000
all of like date and tenor, except as tsi 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 the improvement and installation of recreational facilities and other
open space and park improvements at Lake Rebecca Park area in the City, and is
payable out of the General Obligation Bonds of 1978 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 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 or indebted-
ness.
IT WITNESS WHEREOF, the City of Hastings, Washington and Dakota Counties,
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 Clerk,
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 June 1, 1978.
City Clerk
/s/ facsimile
Mayor
(Form of Coupon)
,--.
No.
$
On the first day of August (February), 19 ,the City of Hastings,
Washington and Dakota Counties, 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 Bond of 1978, No. dated
June 1, 1978.
/s/ Facsimile
City Clerk
/s/ Facsimile
Mayor
294
6.. 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 o!ne of such signatures and the seal of the
City be printed facsimiles; and prbvided further that the corporate seal may
be omitted on the bonds as pennitted by law. The interest coupons pertaining
thereto shall be executed by the printed, engraved or lithographed facsimile
signatures of the Mayor and Clerk.
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 is hereby created a special account to be designated
"General Obligation Bonds of 1978 Account" to be held and administered by the
City Treasurer separate and apart from all other accounts of the City. Said
Account shall be 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 two separate funds, to be designated
as the "Capital Fund" and the "Debt Service Fund", respectively. 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 $138,000, shall
be credited to the Capital Fund, from which there shall be paid all costs an~
expenses of making such project, including the cost of any construction con-
tracts 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 anitcipated date of commencement
of the collection of taxes herein levied. There is hereby pledged and there
shall be credited to the Debt Service Fund (a) all accrued interest received
upon delivery of said bonds, (b) all funds paid for said bonds in excess of
$138,000, (c) any collections of all taxes herein levied for the payment of
said bonds; and {d) all funds remaining in said Capital Fund after completion
of the improvements and payment of the costs thereof, not so transferred to
the fund of another improvement. The Debt Service Fund herein 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.
9. 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 Year of Tax
Levy Collection Amount
1978 1979 $12,789
1979 1980 18,173
1980 1981 17,648
1981 1982 17,123
1982 1983 16,598
1983 1984 16,073
1984 1985 15,548
1985 1986 15,002
1986 1987 14,456
1987 1988 19,160
1988 1989 18,341
1989 1990 17,499
1990 1991 16,632
Said tax levies are such that if collected in full they, together
with estimated collections of 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.
n
o
c
295
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.
10. 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 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 Debt Service Fund
when a sufficient balance is available therein.
11. The City Clerk is hereby directed to file a certified copy of this
resolution with the County Auditors of Washington and Dakota Counties, 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 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 affi-
davits, 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 Councilman a and upon vote being taken thereon, the following voted in
favor thereof: a members present, and the following voted against the same: none.
ATTEST:
Mayor
said resolution was declared duly passed and adopted.
~
-----
.