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Res 1986 - 12 Extract of Minutes of Meeting of the City Council of MH (3/4/1986)555R EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA HELD: March 4, 1986 Pursuant to due call and notice thereof, aregular 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 4th day of March, 1986, 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 1986 of said City. The following members were present: Blesnner, Cummins and the following were absent: none Lockwood, Witt, Hartmann Member Lockwood introduced the following resolution and moved its adoption: RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $500,000 GENERAL OBLIGATION TAX ANTICIPATION CERTIFICATES OF 1986 WHEREAS: The City Council has heretofore determined that it is necessary and expedient to issue $500,000 General Obligation Tax Anticipation Certificates of 1986 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. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1. That the offer of First Bank , in St. Paul , Minnesota (the "Purchaser") to purchase $500,000 General Obligation Tax Anticipation Certificates of 1986 of the City in accordance with the terms and at the rate of interest hereinafter set forth and to pay therefor the sum of $ 497,875.00 plus interest accrued to settlement is hereby accepted. Said certificates shall be payable as to principal and interest at First Bank in St_ Paul , 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, 1986 and shall be issued forthwith. The certificates shall be in the denomination of $5,000 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, 1987. 3. The certificates shall provide funds in anticipa- tion of the collection of taxes levied for the general fund and not yet collected. The total principal amount of the certifi- cates plus the interest accruing thereon to maturity does not exceed 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 shall mature -on March 15, 1987 and shall bear interest payable at maturity, at the annual rate of ;Five and Four Hundreds percent (S 4 %) . 5. The certificates to be issued hereunder shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA DAKOTA COUNTY CITY OF MENDOTA HEIGHTS No. $5,000 GENERAL OBLIGATION TAX ANTICIPATION CERTIFICATE OF 1986 KNOW ALL PERSONS BY THESE PRESENTS that the City of Mendota Heights, Dakota County, Minnesota, certifies that it is indebted and for value received promises to pay to bearer, without option of prepayment, the principal sum of FIVE THOUSAND DOLLARS on the fifteenth day of March, 1987, and to pay interest thereon from the date hereof until the principal is paid at the rate of percent ( %) per annum, payable on the 15th day of March, 1987, both the principal and interest being payable upon -presentation and surrender of this certificate at maturity. The total dollar amount of interest payable hereon at maturity is Dollars ($ ). 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 1986 arid not yet collected. The total amount of taxes levied for the general fund for the year 3 1986 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. 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, 1986. /s/ Facsimile City Clerk Mayor 4 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) oDthe 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, and less any amount paid for the Certificates in excess of $ 497.500 , 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 "1986 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 1985, payable in 1986 (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, 1987 and thereafter all Taxes shall be paid.over to the "1986 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, 1987. 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 at a yield 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 5 the federal arbitrage regulations. In addition, money in the Account shall not be invested in obligations or deposits issued by, guaranteed by or insured 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 103(h) of the Internal Revenue Code of 1954, 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. Unless, and to the extent in the opinion of bond counsel (based on existing law and, so long as it is pending, H.R. 3838 passed by the United States House of Representatives on December 17, 1985, or any amended version thereof (the "Act")), the following representations and covenants are not necessary to maintain the tax-exempt status of the Certificates, the City represents and covenants as follows: (a) The City does not expect to, and shall not, use or permit to be used the lesser of (i) five percent (5%) or more of the gross proceeds of the Certificates or (ii) $1,000,000 to make or finance loans to persons other than governmental units; and does not expect to, and shall not use or permit to be used the lesser of (x) ten percent (10%) or more of the gross proceeds of the Certificates or (y) $1,000,000, in any trade or business carried on by any person other than a governmental unit, provided that use as a member of the general public shall not be taken into account; (b) 100 percent of the net proceeds of the Certificates will be used to finance operating expenses of the City, and in no event shall any proceeds of the Certificates be used to finance the acquisition or construction of real or personal property. (c) If the Act is enacted into law and if under the Act any arbitrage profit earned with respect to the Certificates is required to be rebated to the United States, the City shall to the maximum extent practicable rebate such arbitrage profit and earnings thereon as required by the Act. 6 (d) The City shall expend five percent (5%) or more of the net proceeds of the Certificates within thirty (30) days after the date of issue of the Certificates (i.e. prior to April 14, 1986) to carry out the governmental purpose of the issue. (e) The City shall submit to the Secretary of the Treasury, not later than the fifteenth (15th) day of the second (2nd) calendar month after the close of the calendar quarter in which the Certificates are issued (or such later time as is permitted under the Act), a statement concerning the Certificates which contains: (i) the name and address of the City, (ii) the date of issue, the amount of net proceeds of the issue, the stated interest rate, term, and full amount of each Certificate, and the costs of issuance and amount of reserves of the issue, and (iii) such other information as said Secretary may by regulations require. (f) If the Act is enacted in a form different from that adopted by the House of Representatives on December 17, 1985, and if the Act imposes any other requirements retroactively effective to the time the Certificates are issued, the City shall use its best efforts to meet such requirements, provided that in meeting such requirements the District will do so only to the extent consistent with the purposes of this Resolution, to the extent consistent with the laws of Minnesota, and to the extent that there is a reasonable period of time in which to comply. 11. 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. ti 12. 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, in- cluding any heretofore furnished, shall be deemed represen- tations of the City as to the facts recited therein. The motion for the adoption of the foregoing resolution was duly seconded by member Vitt and 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. 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 of and awarding the sale of $500,000 General Obligation Tax Anticipation Certificates of 1986 of said City. WITNESS my hand and the seal of said City this day of March, 1986. (SEAL) /pg/e4.1cArc.) City Clerk 9