85-032 RES
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EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE CITY
OF ELK RIVER, SHERBURNE COUNTY, MINNESOTA
Pursuant to due call and notice thereof a regular
meeting qf the City Council of the City of Elk River, Sherburne
County, Minnesota, was held at the library in said City on
Monday, July 22, 1985, commencing at 7:30 p.m.
The following members were present: Williams, Schuldt &
Mayor Hinkle
and the following were absent: Engstrom & Gunkel
The following resolution was presented by Councilmember
Schuldt who moved its adoption:
RESOLUTION NO. 85-32
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $2,640,000 GENERAL OBLIGATION
REFUNDING AND IMPROVEMENT BONDS, SERIES 1985
BE IT RESOLVED by the City Council of the City of Elk
River, Sherburne County, Minnesota (City) as follows:
Section 1. Findinqs: Costs.
1.01 Springsted Incorporated (Springsted), fiscal
consultants to the City, has advised that the City can
substantially reduce its interest expense being incurred with
respect to five (5) outstanding improvement bond issues of the
City by issuing refunding bonds at current lower interest
rates, the proceeds of which would be used to prepay and redeem
the bonds of the five (5) outstanding bond issues at the
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earliest dates when such outstanding bonds may be called for
redemption. The five (5) outstanding bond issues are described
as follows:
Title of Issue
Outstanding
Principal Amount
Date of Issue
$1,065,00 General
obligation Improve-
ment Bonds of 1981
July 1, 1981
1,015,000
$770,000 General
Obligation Improve-
ment Bonds of 1981,
Series B
September 1, 1981
620,000
$1,000,000 General
Obligation Improve-
ment Bonds of 1983
September 1, 1983
940,000
$165,000 General
Obligation Improve-
ment Bonds of 1983,
Series B
December 1, 1983
165,000
$310,000 General
Obligation Improve-
ment Bonds, Series
1984
August 1, 1984
310,000
1.02 This Council has previously authorized the
resurfacing of Ridgewood Lane in the City, which improvement is
to be financed by means of an issue of improvement bonds,
payable primarily from special assessments against the
benefitted properties. Springsted has recommended that an
additional amount of bonds be issued and sold in a single
combined bond issue to provide the necessary sums for the
financing of the Ridgewood Lane improvement, together with the
funds necessary to carry out the refunding of the five (5)
outstanding improvement bond issues.
1.03 Springsted has recommended that the sale of refunding
and improvement bonds in the aggregate principal amount of Two
Million Six Hundred Forty Thousand Dollars ($2,640,000) be
authorized, but that provision be made for increasing or
reducing the face amount of the bonds by an amount not to
exceed One Hundred Seventy-five Thousand Dollars ($175,000),
depending upon the actual interest rates proposed by the bids
received for purchase of the bonds. Springsted has further
advised that a substantially reduced interest rate can be
obtained by the purchase of municipal bond guaranty insurance
for the payment of principal and interest on the bonds from the
Municipal Bond Insurance Association (MBIA) and seeking a
rating with respect to the bonds from Moody's Investment
Services, Inc. (Moody's).
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1.04 It is necessary and desirable to the sound financial
management of the City that the City issue and sell its General
obligation Refunding and Improvement Bonds, Series 1985 (the
Bonds) to refund in advance of maturity the outstanding
principal amount of the five (5) improvement bond issues to be
refunded and to finance the costs of the Ridgewood Lane
improvement.
Section 2. Sale of Bonds.
2.01 The City shall issue and sell the Bonds, pursuant to
Chapter 429 and 475 of the Minnesota Statutes. The authorized
principal amount of the Bonds shall be Two Million Six Hundred
Forty Thousand Dollars ($2,640,000); however, the right shall
be reserved to increase or reduce the principal amount of the
Bonds to be sold by an amount not to exceed One Hundred
Seventy-five Thousand Dollars ($175,000). The Mayor or the
City Administrator, and either of them, are hereby authorized
to apply toMBIA for municipal bond guaranty insurance with
respect to the Bonds and to make application to Moody's for a
rating with respect to the Bonds. The Bonds shall be issued
and sold in accordance with the terms of the Official Terms of
Offering, a copy of which, marked Exhibit A, is attached hereto
and made a part hereof.
2.02 The City Clerk is authorized and directed to
advertise the Bonds for sale in accordance with such Official
Terms of Offering and to cause an abbreviated notice of sale in
the form of Exhibit B, attached hereto and made a part hereof,
to be published in the manner required by law. The City
Council shall meet on Monday August 12, 1985, at 7:30 p.m., for
the purpose of considering sealed bids on the Bonds and taking
any other appropriate action.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmernber Williams and upon vote
being taken thereon, the following voted in favor of the
motion: All members present
and the following was voted against:
None
whereupon said resolution was declared duly passed and adopted.
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