DISCLAIMER

 

05-0773R


RESOLUTION AUTHORIZING THE ISSUANCE AND ESTABLISHING THE TERMS AND PROVIDING FOR THE PUBLIC SALE OF GENERAL OBLIGATION BONDS AND EQUIPMENT CERTIFICATES OF INDEBTEDNESS.

BY COUNCILOR STAUBER:

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

     (a)  Authorization of bonds and certificates. 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 and general obligation equipment certificates of indebtedness for the following purposes:

           (1)  $3,515,000 general obligation sewer utility revenue bonds, Series 2005F (the Series 2005F bonds), are hereby authorized and shall be issued pursuant to Ordinance No. 9750, adopted October 11, 2005, Minnesota Statutes, Chapter 475, and Section 115.46 and 444.075, and Section 55 of the Home Rule Charter of the city for the payment of the costs of improvements to the municipal sewer utility;

           (2)  Taxable general obligation tax increment bonds, Series 2005G (the Series 2005G bonds), in the approximate amount of $12,525,000 are hereby authorized and shall be issued pursuant to Minnesota Statutes, Section 469.178, Subd. 2, and Chapter 475, for the purpose of providing funds to pay the public development costs of a parking ramp and related project facilities to be constructed in connection with the St. Mary’s/Duluth Clinic Health Systems Digestive Disease/Cancer Center project;

           (3)  $1,110,000 general obligation equipment certificates of indebtedness, Series 2005H (the certificates), are hereby authorized and shall be issued pursuant to Minnesota Statutes, Sections 410.32 and 412.301 (the act), and Minnesota Statutes, Chapter 475, and the City Charter, for the purpose of providing funds to purchase capital equipment, as permitted by the act, having an expected useful life at least as long as the term of the certificates;

           (4)  General obligation improvement refunding bonds, Series 2005I (the Series 2005I bonds), in the approximate amount of $3,070,000 are hereby authorized and shall be issued, pursuant to Minnesota Statutes, Chapter 475 and the City Charter, for the purpose of refunding the city’s general obligation improvement bonds, Series 1997A, dated September 1, 1997, maturing on and after February 1, 2007;

           (5)  General obligation zoo refunding bonds, Series 2005J (the Series 2005J bonds), in the approximate amount of $1,490,000 are hereby authorized and shall be issued, pursuant to Minnesota Statutes, Chapter 475 and the City Charter, for the purpose of refunding the City’s general obligation zoo refunding bonds, Series 1997E, dated September 1, 1997, maturing on and after February 1, 2007; and

           (6)  General obligation refunding bonds, Series 2005K (the Series 2005K bonds), in the approximate amount of $1,760,000 are hereby authorized and shall be issued, pursuant to Minnesota Statutes, Chapter 475 and the City Charter, for the purpose of refunding the city’s general obligation bonds, Series 1996B, dated July 15, 1996, maturing on and after February 1, 2006.

(The Series 2005F bonds, the Series 2005G bonds, the Series 2005I bonds, the Series 2005J bonds and the Series 2005K bonds are collectively referred to as the bonds.)

     (b)  Issuance and sale of bonds and certificates. The terms and conditions of each series of the Bonds and the Certificates and the sales thereof are set forth in the official terms of offerings for each series 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 Certificates 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 and certificates;

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

     (d)  Subsequent resolutions. The form, specifications and provisions for repayment of the bonds and certificates 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 the first series of general obligation sewer utility revenue bonds ($3,515,000 of an authorized $7,600,000) to provide funds necessary to make improvements to the municipal sewer utility plant, including the construction of the Morgan Park sanitary sewer projects, phases I, II and III and improvements to Pump Station No. 1 and construction of the storage facility project located at 60th Avenue East between London Road and Superior Street necessary to eliminate sanitary sewer overflow, and are payable from net revenues of the municipal sewer utility;

     (2)  Authorize the issuance of taxable general obligation tax increment bonds to provide funds to pay the public development costs of a parking ramp and related project facilities to be constructed in connection with the St. Mary’s/Duluth Clinic Health Systems Digestive Disease/Cancer Center project, which bonds are payable in part from tax increment revenue generated from Tax Increment Financing District No. 22, in part from parking revenues and in part from ad valorem taxes;

     (3)  Authorize the issuance of general obligation equipment certificates of indebtedness for the purpose of purchasing capital equipment and which are payable from ad valorem taxes; and

     (4)  Authorize the issuance of general obligation bonds to provide funds to refinance several outstanding city bond issues. Based upon present interest rates (as of October 28, 2005), the three refundings would provide net present value savings of approximately $230,000.