|
leases the City Facility pursuant to a Lease Purchase Agreement, dated November 1, 1991, as
<br />supplemented by a Supplement to Lease Purchase Agreement dated December 1, 1997, as
<br />further supplemented by a Supplement to Lease Purchase Agreement dated September 1, 2002
<br />collectively the "Lease Purchase Agreement"}, between the Authority, as lessor, and the City, as
<br />lessee, The City has determined to terminate the Lease Purchase Agreement and purchase the
<br />City Hall Facility fram the Authority by refunding the Series 2002B Bonds, which are currently
<br />outstanding in the principal amount of $1,270,000.
<br />~c} The City is autharized by Minnesota Statutes, Section 475,521 the "CIP Act"} to
<br />finance certain capital improvements under an approved capital improvement plan by the
<br />issuance of general obligation bonds of the City payable from ad valorem taxes. Capital
<br />improvements include acquisition or betterment of public lands, buildings or other improvements
<br />for the purpose of a city hall, public safety facility and public worlcs facilities, Further, the City
<br />is authorized by the provisions of Minnesota Statutes, Chapter 475 the "Municipal Debt Act"),
<br />and specifically Section 475.67, Subdivisions 3 through 12 of the Municipal Debt Act, to issue
<br />and sell its general obligation bonds to refund outstanding bonds when determined by the City
<br />Council to be necessary and desirable for the reduction of debt service or interest cost and the
<br />adjustment of maturities of outstanding issues of bonds,
<br />~d} ~n December 21, 2009 the City held a public hearing regarding ~i} the adoption
<br />of a five~year capital improvement plan for the City prepared in compliance with, Minnesota
<br />Statutes, Section 475,521 the "CIP Plan"}; and iii} the issuance of general obligation bonds the
<br />"CIP Bonds"} in the maximum amount of $8,000,000, to acquire the City's Safety Facility and
<br />the City Hall Facility from the Authority by refunding the outstanding Series 2002A Bonds and
<br />Series 2002B Bonds issued by the Authority.
<br />fie} The City Council has determined that, within 30 days after the public hearing, no
<br />petition for a referendum on issuance of bonds pursuant to the Plan was received by the City in
<br />accordance with the CIP Act.
<br />~f} As required by the CIP Act, the City has determined that; ~i} the expected useful
<br />life of the City Hall will be at least five years; and iii} the amount of principal and interest due in
<br />any year on all outstanding bonds issued by the City under the CIP Act, including the CIP
<br />Bonds, will not exceed 0.16 percent of the taxable marl~et value of property in the City for taxes
<br />payable in 2011,
<br />1,02, Authorization to Issue Bonds, It is determined that the City is autharized by
<br />Section 475,67, Subdivision 3 of the Municipal Debt Act, to issue and se11 its general obligation
<br />bonds to refund obligations and the interest thereon before the due date of the obligations, if
<br />consistent with covenants made with the holders thereof, when determined by the City Council
<br />to be necessary or desirable for the reduction of debt service cost to the City or for the extension
<br />or adjustment of maturities in relation to the resources available for their payment, Further,
<br />Minnesota Statutes, Section 475,67, subdivision 4 permits the sale of refunding obligations
<br />365125v1 JSI3 F~LI$5-1 } ~
<br />
|