Title
RESOLUTION CALLING FOR THE PREPAYMENT AND REDEMPTION OF GENERAL OBLIGATION STREET IMPROVEMENT BONDS, SERIES 2008C OF THE CITY OF DULUTH, MINNESOTA.
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CITY PROPOSAL:
BE IT RESOLVED, by the City Council (the "City Council") of the city of Duluth, St. Louis County, Minnesota (the "City"), as follows:
Section 1. Under and pursuant to Minnesota Statutes, Chapter 475 and the Home Rule Charter of the City, the City previously issued its $2,320,000 General Obligation Street Improvement Bonds, Series 2008C, dated August 7, 2008 (the "2008 Bonds"). The 2008 Bonds were issued to finance the 2008 street improvement program.
Section 2. The 2008 Bonds are substantially in the form prescribed by Resolution 08-0461 duly adopted by the Council on July 24, 2008.
Section 3. The Council hereby determines that it is necessary and desirable for the City to redeem and prepay the 2008 Bonds maturing on and after February 1, 2018 (the "Redeemed Bonds"), of which $1,240,000 in principal amount is outstanding and is hereby called for prepayment and redemption on February 1, 2017 (the "Redemption Date").
Section 4. (a) Funds previously deposited in the Debt Service Account in the amount of $1,420,691.26 shall be segregated and shall constitute a separate trust fund to be used for no purpose other than the payment of the principal of the 2008 Bonds maturing on February 1, 2017, interest on the 2008 Bonds due on February 1, 2017, and the principal of the Redeemed Bonds called for prepayment and redemption on the Redemption Date.
(b) It is hereby found and determined that the funds on deposit in the Debt Service Account in the amount of $1,420,691.26 will be sufficient to pay the principal of the 2008 Bonds maturing on February 1, 2017 ($150,000), the interest on the 2008 Bonds due on February 1, 2017 ($30,691.26), and the outstanding principal of the Redeemed Bonds ($1,240,000) on the Redemption Date.
(c) Upon redemption of the Redeemed Bonds on the Redemption ...
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