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HomeMy WebLinkAbout19830509_special278 MINUTES EDINA CITY COUNCIL HELD AT CITY HALL MAY 9, 1983 OF THE SPECIAL MEETING OF THE Answering rollcall were Members Bredesen, Richards, Schmidt and Turner. SITE INSPECTIONS CONDUCTED. with City Xanager Rosland and Assistant City Manager Bernhardson, proceeded to an on-site inspection of a requested variance at 6616 Dovre Drive. was made to 6001 Pine Bluff Drive to view the property of Dr. Paul Carson for possible use as public open space. The Council Members then returned to City Hall at 9:00 p.m. (See correction as to addresses in Minutes of June 20, 1983.) The Special Council Meeting was called to order at 9:00 p.m. by Mayor Pro-Tem Richards. At 7:OO p.m. the Council Members present, together A visit then I CABLE FRANCHISE AMENDMENT TO ORDINANCE NO. 1120 CONTINUED TO MAY 16, 1983. As recommended by Mr. Rosland, second reading of Ordinance No. 1120-A1 was continued to May 16, 1983, by motion of Member Bredesen, seconded by Member Turner. Ayes: Bredesen, Schmidt, Turner, Richards Nays: None -_ Motion carried. BID AWARDED FOR SALE OF $1,200,000 GENERAL OBLIGATION TAX ANTICIPATION CERTIFI- CATES OF INDEBTEDNESS. 1983, authorizing the sale $1,200,000 General Obligation Tax Anticipation Certi- ficates of Indebtedness and directing negotiation for bids thereon, it was. reported that two sealed bids for the purchase of $1,200,000 General Obligation Tax Anticipation Certificate, of Indebtedness of the City has been received by the City Finance Director-Treasurer prior to the meeting. publicly opened, read and tabulated and the bids are as follows: Pursuant to a Resolution of the Council adopted April18, The bids have been . Bidder :- First Edina National Bank Price $1,2oo,o00 Interest Rate 5.875% First Southdale National Bank $1,200,000 6.50% Member Turner then introduced the following resolution and moved its adoption: RESOLUTION RELATING TO AND PROVIDING FOR BORROWING MONEY IN ANTICIPATION OF THE RECEIPT OF TAXES; AUTHORIZING THE ISSUANCE OF $1,200,000 GENERAL OBLIGATION TAX ANTICIPATION CERTIFICATE- OF INDEBTEDNESS, AWARDING THE SALE THEREOF, FIXING THE FORM AND DETAILS THEREOF, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND PROVIDING FOR A DEBT SERVICE FUND THEREFOR BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the City), I as follows: poses in the amount of $5,422,640. It is found and determined that the amounts receivable in the City from collections in 1983 of general taxes levied in 1982 for general City purposes, will not be received in time to meet all expenditures necessary to be made for the purposes for which such taxes have been levied. To meet such expenditures it is therefore necessary and expedient for the City, in accordance with the provisions of Minnesota Statues, Section 412.261, as amended, to borrow money by the issuance of its General Obligation Tax Anticipation Certi.- fication of Indebtedness in a total principal amount of $1,200,000 (the Certificate) the proceeds of which will be deposited in the general fund of the City and the amount of which does not exceed the total current taxes for general City purposes which are to be deposited in the general fund uncollected at this time plus cash on hand in such fund. of the Certificate upon the terms and conditions set forth herein. the requirements as to public sale do not apply to the issuance of the Certificate by the City, if the Certificate is sold in accordance with the most favorable of two or more proposals solicited privately. has solicited on behalf of the City two or more proposals for the purchase of the Certificate. is hereby approved and ratified. ficate were received prior to the time of this meeting. and publicly read and considered, and the purchase price, interest rate and net interest cost under the terms of each bid have been determined. offer received is that of First Edina National Bank, of Edina, Minnesota, to purchase the Certificate at a price of $1,200,000, with interest at the rate of 5.875% per annum, payable at maturity. Mayor and City Manager are hereby authorized and directed to execute a contract on-the part of the City for the sale of the Certificate to such purchaser. The Section 1. Authority. The City has levied in 1982 taxes for general City pur- For this purpose this Council hereby authorizes the issuance Section 2. Sale. Pursuant to Minnesota Statutes, Section 475.60, subdivision 2, The City Finance Director-Treasurer The solicitation of such bids by the City Finance Director-Treasurer The bids have been opened Two sealed bids for the purchase of the Certi- The most favorable Such offer is hereby accepted, and the 5/9/83 m 5 good faith checks of the unsuccessful bidders shall be returned forthwith. Obligation Tax Anticipation Certificate of Indebtedness". The Certificate shall be dated as of the date of delivery to the purchaser thereof and shall bear interest, payable at maturity, at the rate per annum stated in Section 2 hereof. The interest payment required on the Certificate shall be computed on the basis of the number of days elapsed in a 365-day year. on August 1, 1983, without option of prior payment. interest on the Certificate shall be payable to bearer at the office of the City Finance Director-Treasurer. .- Section 4. Statement of Expenditures and Receipts; Arbitrage Certificate. The Council estimated that (i) the Certificate will not be outstanding after a period ending thirteen months after the date on which the Certificate is issued and (ii) that the amount of the Certificate authorized to be issued does not exceed the maximum anticipated cumulative cash flow deficit to be financed by such tax collections and other funds for the period during which the Certificate will be outstanding, as contemplated by the regulations of the Internal Revenue Service, 26 CFR Part 1, Section 1.103-14(~)(1) (the Regulations), promulgated under Sec- tion 102(c) of the Internal Revenue Code of 1954, as amended (the Code). The City Finance Director-Treasurer is directed to prepare a statement of estimated expenditures and receipts during the period for which the Certificate will be outstanding, for the purpose of verifying the correctness of this estimate. In the event that such statement does not verify this Council's estimate, the amount of the Certificate shall be reduced to such amount as will not exceed such maxi- mum antkipated cumulative cash flow deficit. Certificate, the Mayor and City Manager shall execute and deliver to the purchaser of the Certificate a certificate as contemplated in Section of the Regulations stating the facts, estimates and circumstances on the basis of which it is not expected that the proceeds of the Certificate will be used in a manner that would cause the Certificate to be an "arbitrage bond" within the meaning of Section 103(c) of the Code. in substantially the following form: Section 3. Certificate ,Terms. The Certificate shall be denominated "General The Certificate shall mature The principal of and the Prior to the issuance of the 1.103-13(a) (2) (ii) Section 5. Form of Certificate. The Certificate shall be printed or typewritten UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDINA GENERAL OBLIGATION TAX ANTICIPATION CERTIFICATE OF INDEBTEDNESS No. 1 $1,200,000 KNOW ALL MEN BY THESE PRESENTS that the City of Edina, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and for value received hereby promises to pay to bearer, upon presentation and surrender hereof, the principal sum of ($1,200,000) in lawful money of the United States of America on August 1, 1983, with interest thereon payable at that date in the amount of $ the rate of Five and Eight Hundred Seventy-Five Thousandths percent (5.875%) per annum, upon presentation and surrender of this Certificate of Indebtedness at the office of the City Finance Director-Treasurer, in Edina, Minnesota. For the prompt payment of this Certificate of Indebtedness, both principal and interest as aforesaid, the proceeds of the*taxes assessed on the account the fund against which this Certificate of Indebtedness is issued and the full faith and credit of the City are hereby irrevocably pledged. of $1,200,000 against and for the use of the general fund of the City, for which fund the total amount embraced in the general taxes levied in 1982, collectible in 1983, is $5,422,640, and is issued pursuant to and in accordance with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 412.261 and Chapter 475, in anticipation of the receipt of general taxes heretofore levied by the City for general purposes, which taxes at the date of issuance hereof remain unpaid and are due and payable in the current calendar year and as to which no penalty for nonpayment has attached. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things re- quired by law to be done, to exist and to be performed precedent to and in the issuance of this Certificate of Indebtedness have been done, do exist and have been performed in due form, time and manner as required by law, and that the issuance of this Certificate of Indebtedness does not cause the indebtedness of the City to exceed any statutory or constitutional limitation. ONE MILLION TWO HUNDRED THOUSAND DOLLARS , being at This Certificate of Indebtedness is issued in the aggregate principal amount IN WITNESS WHEREOF, the Cfty of Edina, Hennepin County, State of Minnesota, 5/9/83 280 has caused this Certificate of Indebtedness to be signed by the Mayor and the City Manager and has caused this Certificate of Indebtedness to be dated this day of May, 1983. ATTEST: .. . City Manager Mayor (SEAL) *-. Section 6. Execution and Delivery. The Certificate shall be prepared under .. the direction of the City Clerk and the City Finance Direc-tor-Treasurer, in substantially the form heretofore prescribed. Then prepared, the Certificate shall be signed on behalf of the City by the Mayor and the City Manager and the In the absence of disability of the Mayor, the Certificate shall be executed by the Acting Mayor, and in the absence or disability of the City Manager the Certificate shall be executed by Mark Bern- hardson as Assistant City Manager. When the Certificate has been so executed and authenticated, the City Finance Director-Treasurer shall cause the Certificate to be delivered to the purchaser thereof upon receipt of the purchase price. purchaser shall not be obligated to see to the application of the purchase price. except any premium paid by the purchaser, shall be deposited in the general fund of the City and used solely to pay claims duly approved and allowed with respect to current operating expenses of the kinds and within the amounts provided in the official budget of the City for the year ending December 31, 1983. A tax in the amount of $5,422,640 has been levied for the purposes of the general fund and is payable, according to law, one-half on or before May 31, 1983, and one-half on or before October 31, 1983. The proceeds of this tax shall be credited to the debt service fund created in Section 8 hereof as received until the amount in the debt service fund is sufficient to pay the principal and interest Certificate on August 1, 1983, at which time the proceeds of this tax shall be credited to the general fund. and shall be maintained by the City Finance Director-Treasurer as a bookkeeping account in the financial records of the City separate from all other funds, for the payment of the principal of and the interest on the Certificate. if any, received from the purchaser shall be credited to the Fund. proceeds of the tax referred to in Section 7 there shall be credited to the Fund an amount which, added to the premium, if any, and investment income therefrom, equals the amount required to pay the principal and interest due on August 1, 1383, with respect to the Certificate. This amount is irrevocably appropriated to the Fund for the payment of such principal and interest. cancellation of the Certificate, any balance in the Fund shall be transferred to the general fund. ment of the principal of and interest on the Certificate and, in accordance with Minnesota Statutes, Section 412.261 and 475.61, the City covenants and agrees that it will levy and cause to be extended upon all taxable property within its corporate limits such additional taxes, if any, as may be required for the payment of such principal and interest in full. The City Clerk is hereby authorized and directed to file a certified copy of this resolution with the Hennepin County Director of Property Taxation, together with such other information as he shall require, and to obtain from said Director of Property Taxation, a certificate that the Certi- ficate has been entered on his bond register as required by law. I . seal of the City shall be affixed thereto. The .Section 7. Use of Proceeds of Certificate. The proceeds of the Certificate, ." due on the Section 8. Debt Service Fund. A special debt service fund (the Fund) is created I The premium, From the After such payment and The full faith and credit of the City are pledged for the pay- Section 9. Registration. Section 10. Certifications. The officers of the City and the &Mepin County Director of Property Taxation are hereby authorized to prepare and furnish to the purchaser of the Certificate and the attorneys passing on the legality of the issuance thereof certified copies of all proceedings and records of the City relating thereto and to the financial condition and affairs of the City, and all such certified copies, including any heretofore furnished, shall be deemed repre- sentations of the City as to facts recited therein. Section 11. Covenant. The City covenants and agrees with the holders from time to time of the Certificate that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Certificate to become subject to taxation under the Internal Revenue Code of 1954, as amended (the Code), and regulations, amended regulations and proposed regulations issued thereunder, as now existing or as hereinafter-amended or pro- posed and in effect at the time of such action. The motion €or the adoption of the foregoing resolution was duly seconded by Member Bredesen, and upon vote being taken thereon the following voted in favor thereof: I . -- Rollcall.: Ayes: Bredesen, Richards, Schmidt and Turner Nays: None . .- ., 5/9/83 ,, ' 281 whereupon said resolution was declared duly passed and adopted and was signed by the Mayor, which was attested by the City Clerk. CONTRACT ARBITRATION WITH TEAMSTERS 320 DISCUSSED. by Mark Bernhardson regarding the upcoming contract arbitration with Teamsters. No. 320 and the City's stance for the arbitration. A brief presentation was made No action was taken. LONG RANGE PLANNING DISCUSSION CONTINUED TO MAY 16, 1983. agreed to continue discussion of the Long Range Planning items with a rescheduled It was informally date to be determined at the May 16, 1983, meeting. On a motion by Member Bredesen, seconded by Member Schmidt and unanimously carried the meeting was adjourned at 9:35 p.m. . __. Acting City Clerk rn 5 I