10-11 - 02-03 - Certificate of Indebtedness for purchase of golf carts
Resolution 10-11
February 3, 2010
Member Pentel introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATE OF
INDEBTEDNESS FOR THE PURCHASE OF GOLF CARTS FOR
BROOKVIEW GOLF COURSE FUND
WHEREAS, the 2010-2014 Capital Improvement Program of the City of Golden Valley
calls for the issuance of a Certificate of Indebtedness in the principal amount of $135,000
for the purchase of 60 Golf Carts for Brookview Golf Course;
WHEREAS, the market valuation of the City of Golden Valley for 2009 is estimated to
be $3,265,373,100 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 $135,000 bearing an interest rate of (3.0) percent per annum. The
certificate shall be dated April 1 , 2010 with debt service payable to the Investment
Fund of the City of Golden Valley according to the following schedule:
Date
Principal
Interest
Total
04/01/2011
04/01/2012
04/01/2003
$45,000
$45,000
$45,000
$ 4,050
$2,700
$1,350
$49,050
$47,700
$46,350
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.
4. For the purpose of paying the debt service on the certificate, there is hereby a direct
payment from the operations of Brookview Golf Course Fund.
Year
2011
2012
2013
Amount
$49,050
$47,700
$46,350
Resolution 10-11 - Continued
February 3, 2010
5. In the event that there is excess cash in the enterprise fund to prepay principal
and interest owing, nothing shall so prohibit this from occurring.
didru '1(, X~
Linda R. Loomis, Mayor
ATTEST:
/Susan M. Virnig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Scanlon
and upon a vote being taken thereon, the following voted in favor thereof: Freiberg,
Loomis, Pentel, Scanlon and Shaffer; 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.