HomeMy Public PortalAbout2019-84 Resolution Authorizing Internal Loan in Connection with the Redemption of the City's Taxable GO Bonds, Series 2011BMember Pederson introduced the following resolution and moved its adoption.
CITY OF MEDINA, MINNESOTA
RESOLUTION NO.2019-84
RESOLUTION AUTHORIZING INTERNAL LOAN IN
CONNECTION WITH THE REDEMPTION OF THE CITY'S
TAXABLE GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 2011B
WHEREAS, the City of Medina, Minnesota (the "City"), previously issued its Taxable General
Obligation Improvement Bonds, Series 2011B (the "Bonds"), dated July 12, 2011, in the original
aggregate principal amount of $870,000; and
WHEREAS, the Bonds are subject to redemption on or after February 1, 2017 at a price of par
plus accrued interest and are currently outstanding in the principal amount of $295,000; and
WHEREAS, pursuant to a resolution adopted by the City Council of the City (the "Council") on
December 3, 2019, the City has determined to redeem and prepay the Bonds maturing on
February 1, 2021 and February 1, 2022 in the principal amount of $200,000 (the "Refunded Maturities")
on February 1, 2020 (the "Redemption Date"); and
WHEREAS, the City intends to advance funds from its Sewer Capital Fund, or any other fund
designated by the City, in the amount of $50,000 in order to redeem and prepay the Refunded Maturities
of the Bonds and proposes to designate such advance as an interfund loan in accordance with the terms of
this resolution; and
WHEREAS, the City intends to repay such interfund loan using revenues derived from the tax
levies and assessments originally pledged to the payment of the Bonds (together, the "Revenues"); and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MEDINA, MINNESOTA AS FOLLOWS:
1. The City shall borrow from the City's Sewer Capital Fund, or any other fund designated
by the City, the amount of $50,000 to pay a portion of the principal amount of the
Refunded Maturities of the Bonds on the Redemption Date (the "Interfund Loan").
2. Interest shall accrue on the principal amount from the date of disbursement of the
Interfund Loan at the rate of 4% per annum, which shall be payable from the Revenues or
other available funds of the City authorized to be used to repay the Interfund Loan.
3. Payments of principal of and interest (the "Payments") on the Interfund Loan shall be
paid semiannually on each February 1 and August 1 (each a "Payment Date"),
commencing on February 1, 2020 and continuing until the principal of and interest on the
Interfund Loan is paid in full.
Resolution No. 2019-84
December 17, 2019
4. Payments on the Interfund Loan will be made in the amount and only to the extent that
Revenues are available and shall be applied first to accrued interest, and then to unpaid
principal.
5. Payments on the Interfund Loan are payable from the Revenues or from other available
funds of the City authorized to be used for such purpose.
6. The principal sum and all accrued interest payable under the Interfund Loan is prepayable
in whole or in part at any time by the City without premium or penalty.
7. The City may amend the terms of the Interfund Loan at any time by resolution of the
Council, to the extent permissible under law.
Dated: December 17, 2019.
Kathleen Martin, Mayor
ATTEST:
Jodi M. CCiallup, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member Albers and upon
vote being taken thereon, the following voted in favor thereof:
Albers, Anderson, DesLauriers, Martin, Pederson
And the following voted against same:
None
Whereupon said resolution was declared duly passed and adopted.
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Resolution No. 2019-84
December 17, 2019