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~ . . . RESOLUTION NO. 87-34 RESOLUTION APPROVING DEFEASANCE PROGRAM FOR CERTAIN GENERAL OBLIGATION BONDS OF THE CITY AND REQUESTING CANCELLATION OF TAX LEVIES WHEREAS, the City has duly issued and presently has out- standing $215,000 General Obligation Refunding and Improvement Bonds of 1977 dated December 28, 1977 and $60,000 General Obligation Improvement Bonds of 1982 dated October 10, 1982 (hereinafter collectively referred to as the "Refunded Bonds") and has substantial asset balances in the sinking funds for said Refunded Bonds; and WHEREAS, it appears that by (i) the purchase of government securities which are general obligations of the United States or agencies thereof in an amount sufficient so that the receipts of principal and interest thereon will be adequate to pay all principal and interest on the Refunded Bonds as such becomes due and (ii) the deposit of such government obligations, to- gether with any required beginning cash balance, with an inde- pendent escrow agent, the security of the holders of the Refunded Bonds will be enhanced, the remaining taxes heretofore levied for payment of the Refunded Bonds may be cancelled, and the remaining asset balances in said sinking funds will be available for any authorized expenditure of the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota as follows: 1. The defeasance program prepared by Juran & Moody, Inc. is hereby approved. The Finance Official is authorized to proceed, at such time as he deems appropriate, with the purchase of the securities necessary for the program. 2. The form of Escrow Agreement between the City and American National Bank and Trust Company, in Saint Paul, Minne- sota, a copy of which has been presented to the Council, is approved, and the Mayor and City Administrator are authorized and directed to execute said Escrow Agreement on behalf of the City. 3. Upon establishment of the Escrow Account and the receipt of an opinion from Abdo, Abdo & Eick, certified public accountants, that the federal securities deposited in the Escrow Account mature at such times and bear interest at such rates that the collections of principal and interest thereon, together with the beginning cash balance in the Account, will be sufficient to pay the principal and interest when due on the Refunded Bonds, the Administrator is hereby directed to provide a copy of this resolution to the Sherburne County