04-0661R


RESOLUTION OF THE CITY OF DULUTH, MINNESOTA, STATING THE INTENT TO ISSUE GROSS REVENUE RECREATION FACILITY REFUNDING BONDS (MUNICIPAL GOLF COURSES), SERIES 2004.

BY COUNCILOR NESS:

     BE IT RESOLVED, by the city council (the council) of the city of Duluth, Minnesota (the city), as follows:

           Section 1. Pursuant to Minnesota Statutes, Section 471.15 through 471.191, the city operates a program of public recreation, of which the Lester Park Golf Course and Enger Park Golf Course (the golf courses) are a part.

           Section 2. The city previously issued its $3,315,000 gross revenue recreation facility refunding bonds (municipal golf courses), Series 1995, dated November 1, 1995 (the 1995 bonds), to refund certificates of participation which were issued by the city to finance improvements to and equipment for the golf courses.

           Section 3. The city desires to reduce its annual debt service payments under the 1995 bonds, and the council hereby states its intent that it is necessary, expedient, and in the best interests of the city's residents that the city issue, sell and deliver its gross revenue recreation facility refunding bonds (municipal golf courses), Series 2004 (the bonds), to refund the outstanding principal amount of the 1995 bonds.

           Section 4. The terms and conditions of the bonds and the sale thereof shall be established by further resolution of the council.


STATEMENT OF PURPOSE:  This resolution states the city’s intent to issue gross revenue recreation facility refunding bonds (municipal golf courses), Series 2004, to refund the city’s 1995 bonds, the original proceeds of such financing were used to improve the city golf courses. The purpose of this issue is to reduce annual debt service payments by extending the maturities of the prior bonds and to take advantage of any savings that may result with lower interest rates.