Title
AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF GENERAL OBLIGATION WATER UTILITY REVENUE BONDS OF THE CITY OF DULUTH IN AN AMOUNT NOT TO EXCEED $4,200,000 FOR THE IMPROVEMENT OF THE MUNICIPAL WATER UTILITY UPON TERMS AND CONDITIONS TO BE PROVIDED BY RESOLUTION OF THE CITY COUNCIL AND PLEDGING REVENUES FOR THE PAYMENT THEREOF.
Body
CITY PROPOSAL:
The City of Duluth does ordain:
Section 1. BOND PURPOSE AND AUTHORIZATION.
1.01 Under and pursuant to the provisions of Section 55 of the City Charter, Section 444.075 and Chapter 475 of Minnesota Statutes and other pertinent provisions of said Charter and Statutes, the city is authorized to issue its general obligation bonds to provide funds for the improvement of the municipal water utility plant, which bonds shall be a specific lien upon such plant and are payable primarily from net revenues, as hereinafter defined, to be derived from operation of the municipal water utility pledged for their payment. The improvement program for the municipal water utility includes replacement of water mains and water lines within the Superior Street corridor from Sixth Avenue West to Fourth Avenue East, as a part of the reconstruction of Superior Street (the "Project").
1.02 The city council hereby determines that it is in the best interest of the city and it is necessary to improve the municipal water utility through the Project, and determines that it is necessary to issue general obligation water utility revenue bonds in an amount not to exceed $4,200,000 for the purpose of paying costs of the Project.
1.03 The city has heretofore issued and sold the following: general obligation utilities revenue bonds dated February 19, 2009, the water utility portion of such bonds now outstanding in the amount of $90,000; general obligation water utility revenue note dated November 23, 2009, now outstanding in the amount of $174,000; general obligation water utility revenue note dated September 14, 2010, now outstan...
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