DISCLAIMER

 

06-0765R


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

BY COUNCILOR STEWART:

     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)  $4,525,000 general obligation steam utility revenue bonds, Series 2006E, are hereby authorized and shall be issued pursuant to Ordinance No. 9791, adopted September 25, 2006, Minnesota Statutes, Chapter 475, Minnesota Statutes, Section 444.075 and Section 55 of the Home Rule Charter of the city for the payment of the costs of construction of improvements to the central steam utility located in the Downtown area of Duluth;

           (2)  $3,255,000 general obligation utilities revenue bonds, Series 2006F, are hereby authorized and shall be issued pursuant to ordinance Nos. 9793, 9794 and 9795, adopted October 10, 2006, 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 water, sewer and gas utilities;

           (3)  $1,785,000 general obligation equipment certificates of indebtedness, Series 2006G (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 2006H (the “Series 2006H bonds”), in the approximate amount of $2,465,000 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 1996A, dated July 15, 1996;

           (5)  General obligation street improvement refunding bonds, Series 2006I (the “Series 2006I bonds”), in the approximate amount of $3,540,000 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 street improvement bonds, Series 1998C, dated August 1, 1998; and

           (6)  General obligation street improvement refunding bonds, Series 2006J (the “Series 2006J bonds”), in the approximate amount of $3,265,000 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 street improvement bonds, Series 2000A, dated September 1, 2000.

     (The Series 2006E bonds, the Series 2006F bonds, the Series 2006H bonds, the Series 2006I bonds and the Series 2006J 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 sale 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 general obligation steam utility revenue bonds to provide funds necessary for improvements to the central steam utility located in the Downtown area of Duluth and are payable primarily from net revenues of the municipal steam utility;

     (2)  Authorize the issuance of general obligation utilities revenue bonds to provide funds necessary to make improvements to the municipal water, sewer and gas utilities and which are payable from net revenues of the municipal water, sewer and gas utilities;

     (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 three series of general obligation bonds to provide funds to refinance several outstanding city bond issues. Based upon present interest rates (as of October 30, 2006), the three refundings would provide net present value savings of approximately $269,000.