87-034 RES
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RESOLUTION NO.
87-34
RESOLUTION APPROVING DEFEASANCE PROGRAM FOR
CERTAIN GENERAL OBLIGATION BONDS OF THE CITY
AND REQUESTING CANCELLATION OF TAX LEVIES
WHEREAS, the City has duly issued and presently has out-
standing $215,000 General Obligation Refunding and Improvement
Bonds of 1977 dated December 28, 1977 and $60,000 General
Obligation Improvement Bonds of 1982 dated October 10, 1982
(hereinafter collectively referred to as the "Refunded Bonds")
and has substantial asset balances in the sinking funds for
said Refunded Bonds; and
WHEREAS, it appears that by (i) the purchase of government
securities which are general obligations of the United States
or agencies thereof in an amount sufficient so that the receipts
of principal and interest thereon will be adequate to pay
all principal and interest on the Refunded Bonds as such becomes
due and (ii) the deposit of such government obligations, to-
gether with any required beginning cash balance, with an inde-
pendent escrow agent, the security of the holders of the Refunded
Bonds will be enhanced, the remaining taxes heretofore levied
for payment of the Refunded Bonds may be cancelled, and the
remaining asset balances in said sinking funds will be available
for any authorized expenditure of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Elk River, Minnesota as follows:
1. The defeasance program prepared by Juran & Moody,
Inc. is hereby approved. The Finance Official is authorized
to proceed, at such time as he deems appropriate, with the
purchase of the securities necessary for the program.
2. The form of Escrow Agreement between the City and
American National Bank and Trust Company, in Saint Paul, Minne-
sota, a copy of which has been presented to the Council, is
approved, and the Mayor and City Administrator are authorized
and directed to execute said Escrow Agreement on behalf of
the City.
3. Upon establishment of the Escrow Account and the
receipt of an opinion from Abdo, Abdo & Eick, certified public
accountants, that the federal securities deposited in the
Escrow Account mature at such times and bear interest at such
rates that the collections of principal and interest thereon,
together with the beginning cash balance in the Account, will
be sufficient to pay the principal and interest when due on
the Refunded Bonds, the Administrator is hereby directed to
provide a copy of this resolution to the Sherburne County
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Auditor and to request that the County Auditor, pursuant to
Section 475.61, subd. 3, cancel all remaining tax levies for
the Refunded Bonds, commencing with the year 1987.
4. Nothing herein shall impair the security originally
provided to the holders of the Refunded Bonds, and the City
recognizes and affirms its obligation to levy ad valorem taxes.
Adopted this 6th
, 1987.
day of
July
Attest:
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JiJ;/z; AP~aYOr
City Administrator
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STATE OF MINNESOTA
COUNTY OF SHERBURNE
CITY OF ELK RIVER
SSe
I the undersigned, being the duly qualified and acting
Administrator of the City of Elk River hereby certify that
the attached and foregoing is a true and correct copy of a
resolution duly adopted by the City Council of the City of
Elk River at its meeting on July 6, 1987, as the same is re-
corded in the minutes of the meeting of such council for said
date, on file and of record in my office.
Dated this 6th
day of July
, 1987.
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City Administrator
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