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HomeMy Public PortalAbout1978-042Member d-NrO S 1911 introduced the following resolution and moved its adoption: CITY OF MEDINA RESOLUTION NO. 7�� RESOLUTION AUTHORIZING THE SALE OF WATER REVENUE BONDS BY THE CITY OF MEDINA TO THE HAMEL IMPROVEMENT BOND FUND WHEREAS, there is a need for interim financing to pay a portion of the cost of the construction of a public well and water supply appurtenances in the amount of $13,022.00; and WHEREAS, permanent financing of the said cost shall be arranged through an increase in the rates charged to the users of the said water supply system; and WHEREAS, such interim financing shall be in the form of Temporary Bonds which shall be sold by the City of Medina to the Hamel Improvement Bond Fund at 8% interest with a maturity date of three (3) years; and WHEREAS, the amount contained in the Hamel Improvement Bond Fund is $137,512.00 and the amount to be collected by special assessment over the succeeding three (3) year period is $180,000.00, creating an aggregate in the said Bond Fund of $317,512.00; that the amount to be paid from the Hamel Improvement Bond Fund over the said three (3) year period for the retirement of Special Assessment Bonds maturing is $230,978.00, making $86,534.00 available for purchase of Temporary Bonds; and WHEREAS, the holders of the Bonds in the Hamel Improvement Bond Fund shall have the same right as the City of Medina to sell permanent Bonds to replace the said Temporary Bonds, or to exchange the same prior to their maturity; and WHEREAS, the said Temporary Bonds are authorized by MSA 5429.091 Subd. 3, by MSA §471.56 and by MSA §475.66. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MEDINA as follows: 1. The City Attorney is authorized to draft the Temporary Water Revenue Bonds as set forth herein and the City of Medina hereby authorizes the sale thereof to the Hamel Improvement Bond Fund; 2. The Mayor and the City Clerk are hereby authorized and directed to execute said Bonds on behalf of the City of Medina; 3. The City Clerk is hereby directed to establish a sinking fund for the purpose of retiring the Temporary Water Revenue Bonds and to fund said sinking fund from the proceeds of an increase in the water rate charged to the users of the water supply system herein described. DATE: L a(le,/2-) r / /g Cr ATTEST : r C 7'2!K/a- ) ex-e_ tcel Clerk, Donna Roehl Mayor, yne Neddermeye G, The motion fpF the adoption of the foregoing resolution was duly seconded by member ice-/ Se de and upon vote being .taken thereon, the following voted in favor thereof 4,/e-, /n.ee ep.- L/Se./ Cros6,, ku�,�� and the following voted aginst the same: Yl aam• l whereupon said resolution was declared duly passed and adopted. CITY OF MEDINA HENNEPIN COUNTY, MINNESOTA Revenue Bond No. 1. $13,022.00 The City of Medina, a Minnesota Municipal Corporation located in the County of Hennepin and State of Minnesota, hereinafter referred to as the City, for value received, has obligated itself to pay to the Hamel Improvement Bond Fund from, its General Account on the 'j day of /),,,I n 61 - , 19, , the sum of $13,022.00, together with interest thereon from the date of issuance at the rate of 8% per annum. Such interest shall be payable annually on the anniversary ofthedate of issuance of this bond. If this bond, together with ail interest thereon, is not paid at maturity, the bond and interest payments then accrued shall continue to bear interest at the rate stated herein until paid in full. This bond shall be owned by the Hamel Improvement Bond Fund and shall be non-negotiable. The City may, at any time prior to maturity, pay all or a portion of the face amount of the bond, together with interest thereon and issue a new bond for the remaining face amount yet unpaid upon the same terms and conditions. This bond is issued by the City for the purpose of providing interim financing to pay the cost of the acquisition, construction, and financing of a public well to serve the Hamel Sewer and Water District and both principle and interest are payable from the General Fund of the City of Medina. This bond shall incorporate the provision of paragraphs five and six of Resolution No. of the City of Medina dated the day of , 1978. IN WITNESS WHEREOF, the City of Medina, by its City Council has caused this bond to be executed in its behalf and under its official seal by its Mayor and countersigned by its Clerk this / day of /lli,7,Je X6,4- , 1978. Mayor Wayne ed.ermeyer Countersigned: City Clerk Donna Roehl