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RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF A $3,857,531 GENERAL OBLIGATION WATER UTILITY REVENUE NOTE, SERIES 2022A, AND PROVIDING FOR ITS PAYMENT.
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CITY PROPOSAL:
BE IT RESOLVED, by the city council of the city of Duluth, Minnesota (the "City"), as follows:
Section 1. Note Purpose and Authorization.
1.01 Under and pursuant to the provisions of Section 55 of the City Charter, Minnesota Statutes, Section 444.075 and Chapter 475, and other pertinent provisions of said Charter and statutes, the City is authorized to issue its general obligation bonds or notes to provide funds for the payment of costs of improvements to the municipal water utility, which bonds or notes shall be a specific lien upon the water utility and are payable primarily from net revenues to be derived from the operation of the municipal water utility and pledged for their payment. The City has applied for and received a commitment from the Minnesota Public Facilities Authority (the "PFA") for a loan for the Project, as hereinafter defined.
1.02 The city council has, by Ordinance No. 10782 adopted December 6, 2021 (the "Ordinance"), ordered the issuance, sale and delivery of a general obligation water utility revenue note, in one or more series, in the amount of $3,857,531 of the City, for the payment of improvements to the water utility system, consisting of rehabilitation of the Middle Booster Station including replacement and upgrades to existing pumps, motors and piping (the "Project").
1.03 The general obligation water utility revenue note to be issued under the Ordinance shall be issued in the principal amount of $3,857,531 (the "Note") to pay the costs of the Project.
1.04 The City hereby authorizes the issuance and sale of the Note for the Project to the PFA, in substantially the form attached hereto as Exhibit A, pursuant to a Minnesota Public Facilities Authority Bond Purchase and Project Loan Agreement dated November 5, 2021, ...
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