Title
AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF A $3,857,531 GENERAL OBLIGATION WATER UTILITY REVENUE NOTE OF THE CITY OF DULUTH 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.
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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 city has applied for and received a commitment from the Minnesota Public Facilities Authority (the "Authority") for a loan for rehabilitation of the Middle Booster Station including replacement and upgrades to existing pumps, motors and piping (the "Project") as identified in the city's application to the Authority.
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 a general obligation water utility revenue note in the amount of $3,857,531 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 $47,000; general obligation water utility revenue note dated September 14, 2010, now outstanding in the amount of $363,000; general obligation water utility revenue note dated ...
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