00-25 - 04-18 - Indebtnedness Purchase of Public Safety, Public Works and General Administration Equipment Resolution 00-25 April 18, 2000
Member LeSuer 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 2000-2004 Capital Improvement Program of the City of Golden Valley
calls for the issuance of a Certificate of Indebtedness in the principal amount of $600,000
for the purchase of Public Safety, Public Works and General Administration Equipment, in
2000; and
WHEREAS, the market valuation of the City of Golden Valley for 2000 is estimated to
be $1,568,007,700 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 $600,000 bearing an interest rate of (5.5) percent per annum. The
certificate shall be dated May 1, 2000 with debt service payable to the Investment
Fund of the City of Golden Valley according to the following schedule:
Date Principal Interest Total
05/01/01 $ 33,000 $ 33,000
05/01/02 $200,000 33,000 233,000
05/01/03 200,000 22,000 222,000
05/01/04 200,000 11,000 217,000
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 00-25 - Continued April 18, 2000
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
2002 $244,650
2003 233,100
2004 221,550
5. Said taxes shall be extended upon the tax rolls for collection in the above year, and
shall be collected as part of the other general taxes levied in and for the City and
the proceeds thereof, when and so collected shall be placed in a sinking fund which
has been created for certificates of indebtedness, and shall be used for no other
purposes than to pay the principal and interest of said certificates when and as the
same become due.
6. In the event that there is excess cash in the debt service fund to prepay principal
and interest owing, nothing shall so prohibit this from occurring.
Mary E.$derson, Mayor
ATTEST:
Shirley J. s n, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Micks
and upon a vote being taken thereon, the following voted in favor thereof: Anderson,
Johnson, LeSuer and Micks; and the following was absent: Bakken, 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.