DISCLAIMER

05-0570R


RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $4,260,000 GENERAL OBLIGATION STREET IMPROVEMENT BONDS, SERIES 2005D, AND $310,000 GENERAL OBLIGATION TAX ABATEMENT BONDS, SERIES 2005E.

BY COUNCILOR STAUBER:

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

     (a)  Authorization of bonds. 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)  $4,260,000 general obligation street improvement bonds, Series 2005D, are hereby authorized and shall be issued for the purpose of financing the 2005 street improvement program, including payment of part of the interest cost of such bond issue and expenses incurred in the issuance of the bonds, pursuant to Minnesota Statutes, Chapter 475, and the City Charter; and

           (2)  $310,000 general obligation tax abatement bonds, Series 2005E, are hereby authorized and shall be issued pursuant to Minnesota Statutes, Section 469.1814, and Chapter 475 and the City Charter to pay for the acquisition of property for the extension of the city’s Lakewalk, including payment of part of the interest costs of such bond issue and expenses incurred in the issuance of the bonds.

The $4,260,000 general obligation street improvement bonds, Series 2005D, and the $310,000 general obligation tax abatement bonds, Series 2005E, are hereinafter referred to as the bonds;

     (b)  Issuance and sale of bonds. The terms and conditions of the bonds and the sales thereof are set forth in the official terms of offerings on file with the city clerk as Public Document No. ____________. Each and all of the terms and provisions set forth in the official terms of offerings are adopted and confirmed as the terms and conditions of the Bonds and the sales thereof, and the city council shall meet at the time and place fixed herein to consider bids for the purchase of the bonds;

     (c)  Competitive sale of bonds. Public Financial Management, Inc., independent financial advisor to the city, is hereby authorized to provide the notice of the sales of the bonds in accordance with Minnesota Statutes, Section 475.60, subdivision 3, and in accordance with the official terms of offering;

     (d)  Subsequent resolution. 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 (1) authorize the issuance of $4,260,000 general obligation street improvement bonds to provide funds necessary to finance the 2005 street improvement program and costs of issuance, which are payable in part from special assessments levied or to be levied against property specially benefitted by the improvements and in part from ad valorem taxes or other revenues of the city; and (2) authorize the issuance of $310,000 general obligation tax abatement bonds to provide funds to pay for the acquisition of property for the extension of the city’s Lakewalk, capitalized interest and costs of issuance, which are payable from tax abatement on certain parcels of property. Under the tax abatement statute, property owners pay their property taxes under the general tax procedures, and the city is authorized to use its portion of the property taxes to pay debt service on the tax abatement bonds.

 

DISCLAIMER