Res 1987 - 19 Extract of Minutes of Meeting of the City Council of Mendota Heights (3/3/1987)560A-2
RESOLUTION .NO.:87-'19
EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF
MENDOTA HEIGHTS, MINNESOTA
HELD: March 3, 1987
Pursuant to due call and notice thereof, a regular meeting
of the City Council of the City of Mendota Heights, Dakota
County, Minnesota, was duly held at the City Hall in said City
on the 3rd day of March, 1987, at 7:30 P.M. for the purpose of
authorizing the issuance of and awarding the sale of $500,000
General Obligation Tax Anticipation Certificates of 1987 of
said City.
The following members were present:
and the following were absent:
Member introduced the following
resolution and moved its adoption:
RESOLUTION PROVIDING FOR THE
ISSUANCE AND SALE OF
$500,000 GENERAL OBLIGATION
TAX ANTICIPATION CERTIFICATES OF 1987
WHEREAS, the City Council of the City of Mendota Heights
has heretofore determined that it is necessary and expedient to
issue $500,000 General Obligation Tax Anticipation Certificates
of 1987 pursuant to Minnesota Statutes, Section 412.261 and
Chapter 475 in anticipation of the collection of taxes levied
for the general fund and not yet collected by the City;
provided that the total amount of all certificates issued
against the general fund for the year and the interest to
accrue thereon to maturity, together with all orders
outstanding against the general fund may not exceed the total
current taxes for the fund uncollected at the time of issuance
plus the cash on hand in the fund.
WHEREAS, in accordance with Minnesota Statutes, Section
475.60, Subdivision 2(3), the City Council has heretofore
solicited two or more offers for the sale of $500,000 General
Obligation Tax Anticipation Certificates.
NOW THEREFORE BE IT RESOLVED by the City Council of the
City of Mendota Heights, Minnesota, as follows:
1. That the offer of
, in , Minnesota (the
"Purchaser") to purchase $500,000 General Obligation Tax
Anticipation Certificates of 1987 of the City in accordance
with the terms and at the rate of interest hereinafter set
forth and to pay therefor the sum of $ plus
interest accrued to settlement is hereby accepted. Said
certificates shall be payable as to principal and interest at
, in
Minnesota or any successor paying agent duly appointed by the
City.
2. The $500,000 negotiable general obligation tax
anticipation certificates of the City shall be dated March 15,
1987 and shall be issued forthwith. The certificates shall be
in the denomination of $5,000 each and shall be one hundred
(100) in number bearing the numbers 1 to 100. The certificates
shall mature, without option of prepayment, on March 15, 1988.
3. The certificates shall provide funds in
anticipation of the collection of taxes levied for the general
fund and not yet collected. The total principal amount of the
certificates plus the interest accruing thereon to maturity
does not exceed $ , which amount is the total current
uncollected taxes levied for the general fund plus any cash on
hand in the general fund. There are no orders outstanding
against the general fund.
4. The certificates mature on March 15, 1988'and
bear interest payable at maturity, at the annual rate of
percent
( %).
5. The certificates to be issued hereunder shall be
in substantially the following form:
r
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF MENDOTA HEIGHTS
No. $5,000
GENERAL OBLIGATION TAX
ANTICIPATION CERTIFICATE OF 1987
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Mendota Heights, Dakota County, Minnesota, certifies that it is
indebted and for value received promises to pay to bearer,
without option of prepayment, the principal sum of
FIVE THOUSAND DOLLARS
on the fifteenth day of March, 1988, and to pay interest•
thereon from the date hereof until the principal is paid at the
rate of percent ( %) per
annum, payable on the 15th day of March, 1988, both the
principal and interest being payable upon presentation and
surrender of this certificate at maturity. The total dollar
amount of interest payable hereon at maturity is
Dollars ($ ). Both principal and interest are
payable at , in
, Minnesota, 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 certificate is one of an issue in the total
principal amount of $500,000, which certificate has been issued
pursuant to and in full conformity with the Constitution and
laws of the State of Minnesota for the purpose of anticipating
the receipt of general taxes heretofore levied by the City for
the general fund for the year 1987 and not yet collected. The
total amount of taxes levied for the general fund for the year
3
1987 is $ . This issue in the total principal
amount of $500,000 is the total amount of certificates issued
against the general fund. This certificate constitutes a
general obligation of the City, and to provide moneys for the
prompt and full payment of the principal and interest when the
same become due, the full faith and credit and taxing powers of
the 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
certificate, have been done, have happened and have been
performed, in regular and due form, time and manner as required
by law, that the taxes levied for the general fund shall be
irrevocably appropriated to the redemption of the certificate
and the interest thereon, and this certificate, 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.
This Certificate is one of an issue which has been
designated by the City as "qualified tax exempt obligations"
under Section 265(b)(3) of the Internal Revenue Code of 1986,
as amended.
IN WITNESS WHEREOF, the City of Mendota Heights,
Dakota County, Minnesota, by its City Council has caused this
certificate 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 the City having been intentionally
omitted as permitted by law, all as of March 15, 1987.
/s/ Facsimile
City Clerk Mayor
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6. The certificates shall be executed on behalf of
the City by the signatures of its Mayor and Clerk and be sealed
with the seal of the City: provided, that one (or both) of the
signatures and the seal of the City may be printed facsimiles
(if the certificates are also signed manually by at least one
such officer); and provided further that the corporate seal may
be omitted on the certificates as permitted by law.
7. The certificates when so prepared and executed
shall be delivered by the Treasurer to the purchaser thereof
upon receipt of the purchase price, and the purchaser shall not
be obliged to see to the proper application thereof.
8. The proceeds of the sale of the Certificates
herein authorized, less any accrued interest received thereon,
shall be credited to the Capital Account, from which the
proceeds shall be disbursed to pay expenses of the City for
which the taxes, in anticipation of which the Certificates are
issued, were to be used. Any accrued interest received upon
delivery of the certificates shall be credited to the "1987
Certificates of Indebtedness Debt Service Account" hereinafter
created.
9. To provide for the payment of principal and
interest on the Certificates, the City shall retain all taxes
levied by it for the general fund in 1986, payable in 1987 (the
"Taxes") received by the City until there remains unpaid Taxes
in an amount equal to 110% of the principal and interest due on
the certificates on March 15, 1988. Thereafter all Taxes shall
be paid over to the "1987 Certificates of Indebtedness Debt
Service Account" (the "Debt Service Account") hereby created,
until there is on hand in the fund an amount equal to the
principal of and interest on the certificates due on March 15,
1988. Thereafter the City shall be entitled to receive and
retain all Taxes and apply them to purposes for which they were
levied. The moneys in the Debt Service Account shall be used
solely to pay the principal of and interest on the certificates
or any other certificates hereinafter issued and made payable
from the Debt Service Account. Any sums from time to time
held in the Debt Service Account (or any other City account
which will be used to pay principal and interest to become due
on the certificates) in excess of amounts which under the
applicable federal arbitrage regulations may be invested
without regard as to yield shall not be invested in excess of
the applicable yield restrictions imposed by the arbitrage
regulations on such investments after taking into account any
applicable "temporary periods" made available under the federal
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arbitrage regulations. In addition, money in the Account shall
not be invested in obligations or deposits issued by,
guaranteed by or insurel by the United States or any agency or
instrumentality thereof if and to the extent that such
investment would cause the Bonds to be "federally guaranteed"
within the meaning of Section 149(b) of the Internal Revenue
Code of 1986, as amended.
For the prompt and full payment of the principal and
interest on the certificates, as the same respectively become
due, the full faith, credit and taxing powers of the City shall
be and are hereby irrevocably pledged.
10. The City shall comply with requirements
necessary under the Internal Revenue Code of 1986, to establish
and maintain the Bonds as tax-exempt under Section 103 thereof,
including without limitation requirements relating to temporary
periods for investments, limitations on amounts invested at a
yield greater than the yield on the Bonds, and the rebate of
excess investment earnings to the United States if the Bonds,
together with other obligations reasonably expected to be
issued in this calendar year, exceed the small -issuer exception
amount of $5,000,000. For purposes of qualifying for the small
issuer exception to the federal arbitrage rebate requirements,
the City hereby finds, determines and declares that the'
aggregate face amount of all tax-exempt bonds (other than
private activity bonds) issued by the City (and all subordinate
entities of the City) during the calendar year in which the
Bonds are issued is not reasonably expected to exceed
$5,000,000, all within the meaning of Section 148(f)(4)(C) of
the Internal Revenue Code of 1986.
11. In order to qualify the Certificates as
"qualified tax-exempt obligations" within the meaning of
Section 265(b)(3) of the Internal Revenue Code of 1986, as
amended, the City hereby makes the following factual statements
and representations:
(a) the Certificates are not "private
activity bonds" as defined in Section 141 of the
Code;
(b) the City hereby designates the
Certificates as "qualified tax-exempt obligations"
for purposes of Section 265(b)(3) of the Code;
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(c) the reasonably anticipated amount of
tax-exempt obligations (other than private
activity bonds) which will be issued by the City
(and all subordinate entities of the City) during
calendar year 1987 will not exceed $10,000,000;
and
(d) not more than $10,000,000 of obligations
issued by the City during calendar year 1987 have
been designated for purposes of Section 265(b)(3)
of the Code.
The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate
the designation made by this paragraph.
12. The City Clerk is hereby directed to file a
certified copy of this resolution with the County Auditor of
Dakota County, Minnesota, together with such other information
as he shall require, and to obtain from the Auditor his
certificate that the certificates have been entered in the
Auditor's Register.
13. The officers of the City are hereby authorized
and directed to prepare and furnish to the Purchaser of the
certificates, and to the attorneys approving the legality of
the issuance thereof, certified copies of all proceedings and
records of the City relating• to the certificates 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
the certificates 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
representations of the City as to the facts recited therein.
The motion for the adoption of the foregoing
resolution was duly seconded by member
upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed
and adopted.
and
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF MENDOTA HEIGHTS •
I, the undersigned, being the duly qualified and
acting Clerk of the City of Mendota Heights, Minnesota, DO
HEREBY CERTIFY that I have compared the attached and foregoing
extract of minutes with the original thereof on file in my
office, and that the same is a full, true and complete
transcript of the minutes of a meeting of the City Council of
said City, duly called and held on the date therein indicated,
insofar as such minutes relate to authorizing the issuance and
sale of $500,000 General Obligation Tax Anticipation
Certificates of 1987 of said City.
WITNESS my hand and the seal of said City this
day of , 1987.
(SEAL)
City Clerk
City Clerk