Title
RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF GENERAL OBLIGATION CAPITAL EQUIPMENT NOTES, SERIES 2015B.
Body
CITY PROPOSAL:
BE IT RESOLVED, by the city council of the city of Duluth, Minnesota, as follows:
1. Authorization of Notes. The city council adopted Resolution No. 14-0594 on December 8, 2014, declaring its intent to issue general obligation capital equipment notes in 2015 in an amount up to $4,416,000 plus costs of issuance and discount. It is hereby found, determined, and declared to be necessary, and in the best interests of the city and its residents, that the city should issue General Obligation Capital Equipment Notes, Series 2015B, in the approximate amount of $3,380,000 (the “Notes”), pursuant to Minnesota Statutes, Sections 410.32 and 412.301 (the “Act”), and Minnesota Statutes, Chapter 475, and the City Charter, for the purpose of providing approximately $3,451,000 to purchase capital equipment, as permitted by the Act, having an expected useful life at least as long as the term of the Notes. The city’s municipal advisor is anticipating receipt of bids with original issue premium.
2. Issuance and sale of Notes. The terms and conditions of the Notes and the sale thereof are set forth in the official terms of offering attached as Exhibit A hereto. Each and all of the terms and provisions set forth in the official terms of offering are adopted and confirmed as the terms and conditions of the Notes and the sale thereof, and the city council shall meet at the time and place fixed herein to consider bids for the purchase of the Notes. Due to changes in the municipal bond market, the city’s chief administrative officer, with the advice of the city’s municipal advisor, may modify the official terms of offering regarding the maturity schedule, the minimum bid and the maximum bid prior to the sale of the Notes.
3. Competitive sale of Notes. Public Financial Management, Inc., independent municipal advisor to the city, is hereby authorized to provide the notice of the sale for the Notes in accordance with Minnesota Statutes, Section 475.60, subdivision 3, and in accordance with the official terms of offering.
4. Subsequent resolutions. The form, specifications and provisions for repayment of the Notes shall be set forth in a subsequent resolution of this city council.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the issuance of approximately $3,380,000 General Obligation Capital Equipment Notes for the purpose of purchasing capital equipment in the approximate amount of $3,451,000. The Notes are payable from ad valorem taxes. The city’s municipal advisor is anticipating bids with substantial premium, which results in the par amount of the Notes being less than cash needed to purchase the capital equipment.