01-0873R

RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS IN THE APPROXIMATE AMOUNT OF $1,075,000 AND GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS IN THE APPROXIMATE AMOUNT OF $630,000.

BY COUNCILOR HOGG:

        BE IT RESOLVED, by the city council of the city of Duluth, Minnesota, as follows:
        (a)     Pursuant to Resolution 01-0806, adopted November 13, 2001, the council authorized the issuance and sale of general obligation bonds for various purposes, including two current refunding bond issues to provide the city with debt service savings. Due to increases in interest rates and on the advice of the city's financial advisor, bids were not taken on the sale of such bonds. The city's financial advisor expects interest rates to decline in the near future and such refundings may be economically beneficial to the city;
        (b)     It is hereby found, determined, and declared to be necessary, and in the best interests of the city and its residents, that the city should issue its general obligation bonds for the following purposes:
                (1)     General obligation improvement refunding bonds in the approximate principal amount of $1,075,000, are hereby authorized and shall be issued, pursuant to Minnesota Statutes, Chapter 475, for the purpose of refunding the outstanding principal balance of the city's general obligation improvement bonds dated October 1, 1993; and
                (2)     General obligation tax increment refunding bonds in the approximate principal amount of $630,000, are hereby authorized and shall be issued, pursuant to Minnesota Statutes, Chapter 475, for the purpose of refunding the outstanding principal balance of the city's general obligation tax increment bonds dated October 1, 1993.
                        The general obligation improvement refunding bonds and the general obligation tax increment refunding bonds are hereinafter referred to as the bonds;
        (c)     The administration is authorized to work with the city's financial advisor and bond counsel to establish the official terms of offering for the sale of the Bonds, as and when interest rate conditions appear to produce reasonable debt service savings to the city;
        (d)     Evensen Dodge, Inc., independent financial advisor to the city, is hereby authorized to provide the notice of the sale of the Bonds in accordance with Minnesota Statutes, Section 475.60, subdivision 3, and in accordance with the official terms of offering;
        (e)     The form, specifications and provisions for repayment of the bonds shall be set forth in subsequent resolutions of this city council.



STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize to call for a bond sale for the following two current refunding bonds, if the interest rate market conditions provide reasonable debt service savings to the city:
        (a)     General obligation improvement refunding bonds to provide funds to refinance an outstanding city bond issue; and
        (b)     General obligation tax increment refunding bonds to provide funds to refinance an outstanding city bond issue.