DISCLAIMER

 

07-0710R


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)  $2,285,000 general obligation street improvement bonds, Series 2007A (the “Series 2007A bonds”), are hereby authorized and shall be issued for the purpose of financing the 2007 street improvement program, pursuant to Minnesota Statutes, Chapter 475, and the City Charter; and

           (2)  $2,120,000 general obligation sewer utility revenue bonds, Series 2007B (the “Series 2007B bonds”), are hereby authorized and shall be issued pursuant to Ordinance No. 9867, adopted October 22, 2007, Minnesota Statutes, Chapter 475, Minnesota Statutes, 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;

           (3)  $1,240,000 general obligation capital improvement bonds, Series 2007C (the “Series 2007C bonds”), are hereby authorized and shall be issued pursuant to Minnesota Statutes, Section 475.521 and Chapter 475, and the City Charter, for the purpose providing funds for capital improvements projects pursuant to an approved capital improvement plan;

           (4)  $1,985,000 general obligation equipment certificates of indebtedness, Series 2007D (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;

           (5)  General obligation DECC improvement refunding bonds, Series 2007E (the “Series 2007E bonds”), in the approximate amount of $3,850,000 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 DECC improvement bonds, Series 1999A, dated February 1, 1999; and

           (6)  General obligation water and sewer utility revenue refunding bonds, Series 2007F (the “Series 2007F bonds”), in the approximate amount of $2,340,000 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 SEWER UTILITY REVENUE BONDS, Series 1999F, dated December 1, 1999, and the city’s general obligation water and sewer utilities revenue bonds, Series 2000B, dated December 1, 2000.

(The Series 2007A bonds, the Series 2007B bonds, the Series 2007C bonds, the Series 2007E bonds and the Series 2007F 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:  This resolution is to (1) authorize the issuance of $2,285,000 general obligation street improvement bonds to provide funds necessary to finance the 2007 street improvement program, 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; (2) authorize the issuance of $2,120,000 general obligation sewer utility revenue bonds to provide funds necessary for improvements to the municipal sewer utility, and are payable primarily from net revenues of the municipal sewer utility; (3) authorize the issuance of $1,240,000 general obligation capital improvement bonds to provide funds for capital improvement projects pursuant to an approved capital improvement plan, which Bonds are payable from ad valorem taxes;(4) authorize the issuance of $1,985,000 general obligation equipment certificates of indebtedness for the purpose of purchasing capital equipment and which are payable from ad valorem taxes; and (5) authorize the issuance of two series of general obligation bonds to provide funds to refinance several outstanding city bond issues. Based upon present interest rates (as of October 22, 2007), the two refundings would provide net present value savings of approximately $137,280.