99-031 - 04-08 - Certificate Indebtedness for Public Safety, Public Works, General Admin Equipment Resolution 99-31 April 8, 1999
Member Bakken introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATE OF
INDEBTEDNESS FOR THE PURCHASE OF PUBLIC SAFETY,
PUBLIC WORKS AND GENERAL ADMINISTRATION EQUIPMENT
WHEREAS, the 1999-2003 Capital Improvement Program of the City of Golden Valley
calls for the issuance of a Certificate of Indebtedness in the principal amount of $450,000
for the purchase of Public Safety, Public Works and General Administration Equipment, in
1999; and
WHEREAS, the market valuation of the City of Golden Valley for 1999 is estimated to
be $1,466,274,900 and the total principal amount of equipment certificate debt outstanding
after this issue is less than .25% of this market valuation, and
WHEREAS, the sale of the certificate to the Investment Fund of the City of Golden
Valley, Minnesota, upon the terms herein is in the best interests of the City of Golden
Valley and is in accordance with the provisions of Minnesota Statutes 410.32 and 412.301,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Golden Valley
as follows:
1. The City shall issue a general obligation certificate of indebtedness in the principal
amount of $450,000 bearing an interest rate of (5) percent per annum. The
certificate shall be dated May 1, 1999 with debt service payable to the Investment
Fund of the City of Golden Valley according to the following schedule:
Date Principal Interest Total
05/01/00 $ 22,500 $ 22,500
05/01/01 $ 150,000 22,500 172,500
05/01/02 150,000 15,000 165,000
05/01/03 150,000 7,500 157,500
2. The Investment Fund of the City of Golden Valley shall purchase the Certificate of
Indebtedness described in paragraph 1, above.
3. The certificate shall be executed on behalf of the City by the signatures of the Mayor
and City Manager and the official seal of the City shall be affixed hereto. The full
faith, credit and taxing powers of the City are hereby pledged for the full and prompt
payment of the principal and interest as they respectively fall due.
Resolution 99-31 - Continued April 8, 1999
4. For the purpose of paying the debt service on the certificate, there is hereby levied
a direct ad valorem tax upon all of the taxable property in the City for the year and
amount as indicated:
Year Amount
2001 $181,125
2002 173,250
2003 165,375
5. Said taxes shall be extended upon the tax rolls for collection in the above year, and
shall be collected as part of the other general taxes levied in and for the City and
the proceeds thereof, when and so collected shall be placed in a sinking fund which
has been created for certificates of indebtedness, and shall be used for no other
purposes than to pay the principal and interest of said certificates when and as the
same become due.
6. In the event that there is excess cash in the debt service fund to prepay principal
and interest owing, nothing shall so prohibit this from occurring.
,00° 7 gam
Mary E. Afire erson, Mayor
ATTEST:
Shirley J. 41--•n, ity Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Johnson
and upon a vote being taken thereon, the following voted in favor thereof: Anderson,
Bakken, Johnson, LeSuer, and Micks; and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and her signature attested by the City Clerk.