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<br />EXTRACT OF MINUTES OF A MEETING OF THE
<br />CITY COUNCIL OF THE
<br />CITY OF ELK RIVER, MINNESOTA
<br />
<br />HELD: May 16,2005
<br />
<br />Pursuant to due call and notice thereof, a regular or special meeting of the City Council
<br />of the City of Elk River, Sherburne County, Minnesota, was duly held at the City Hall on
<br />May 16, 2005, at 6:30 P.M., for the pwpose, in part, of authorizing the issuance and awarding
<br />the sale of$I,660,000 General Obligation Sewer Revenue Refunding Bonds, Series 2005B.
<br />
<br />The following members were present: Mayor Stephanie Klinzing, John Dietz, Jerry
<br />Gumphrey, Larry Farber and Paul Motin;
<br />
<br />and the following were absent: none.
<br />
<br />Member Morin introduced the following resolution and moved its adoption:
<br />
<br />RESOLUTION NO. 05-54
<br />
<br />RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
<br />. OF $1,660,000 GENERAL OBLIGATION SEWER REVENUE
<br />REFUNDING BONDS, SERIES 2005B AND PLEDGING NET
<br />REVENUES FOR THE SECURITY THEREOF
<br />
<br />A. WHEREAS, the City Council of the City of Elk River, Minnesota (the "City"),
<br />owns and operates a municipal wastewater treatment system and utility as a separate revenue
<br />producing public utility (the "System"); and the net revenues of the System are pledged to all or
<br />a portion ofthe payment of the City's outstanding (i) $1,080,000 original principal amount
<br />General Obligation Storm Sewer Revenue Bonds, Series 1994C, dated June 1, 1994; and (ii)
<br />$2,655,000 original principal amount General Obligation Sewer Revenue Bonds, Series 1996A,
<br />dated July 1, 1996 (collectively, the "Outstanding Bonds"); and
<br />
<br />B. WHEREAS, the $2,655,000 original principal amount General Obligation Sewer
<br />Revenue Bonds, Series 1996A, dated July 1, 1996 (the "Prior Bonds"), were heretofore issued
<br />pursuant to the resolution of the City Council adopted on June 3, 1996 (the "Prior Resolution"),
<br />for the pwpose of providing money to finance the construction of improvements to the System
<br />(the "Project"); and
<br />
<br />C. WHEREAS, $1,630,000 in principal amount of the Prior Bonds which mature on
<br />and after February 1, 2007, are subject to redemption and prepayment at the option of the City on
<br />February 1,2006, and on any interest payment date thereafter at a price of par plus accrued
<br />interest, as provided in the Prior Resolution; and
<br />
<br />D. WHEREAS, the refunding of the callable Prior Bonds is consistent with the
<br />covenants made with the holders thereof and is necessary and desirable for the reduction of debt
<br />service cost to the City; and
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