HomeMy WebLinkAboutCity Council Resolution 1987-4220 After due consideration of the bids, Councilmember Sisk
introduced the following resolution and moved its adoption:
RESOLUTION NO. 87-422
A RESOLUTION AWARDING THE SALE OF $3,300,000
GENERAL OBLIGATION WATER REVENUE BONDS OF 1987;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Plymouth, Hennepin
County, Minnesota (City), as follows:
Section 1. Sale of Bonds.
1.01. The bid of _Continental Illinois National Bank (Purchaser) to
purchase $3,300,000 General Obligation Water Revenue Bonds of 1987 (Bonds) of
the City described in the Official Notice of Sale thereof is hereby found and
determined to be the highest and best bid received pursuant to duly advertised
notice of sale and shall be and is hereby accepted, such bid being to purchase
the Bonds at a price of $ plus accrued interest to date of delivery,
_for Bonds bearing interest as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1989 1998
1990 1999
1991 2000
1992 2001
1993 2002
1994
1995
1996
1997
Net effective interest rate:
1.02. The sum of $ being the amount bid by the Purchaser in
excess of $3,250,500 shall be credited to the Debt Service Fund hereinafter'
created. The Finance Director is directed to retain the good faith check of the
Purchaser pending completion of the sale and delivery of the Bonds, and to
return the checks of the unsuccessful bidders forthwith. The Mayor and City
Manager are directed to execute a contract with the Purchaser on behalf of the
City.
1.03. The City shall forthwith issue and sell the Bonds in the total prin-
cipal amount of $3,300,000, originally dated June 16, 1987, in the denomination
of $5,000 each or any integral multiple thereof, numbered No. R-1 upward,
bearing interest as above set forth, and which Bonds mature serially on February
1 in the years and amounts as follows:
Year
Amount
Year
Amount
1989
$150,000
1996
;225,000
1990
175,000
1997
250,000
1991
175,000
1998
275,000
1992
175,000
1999
275,000
1993
200.000
2000
300,000
1994
200.000
2001
325,000
1995
225,000
2002
350,000
1.04. Optional Redemption. The City may elect on February 1, 1995, and on
any interest payment date thereafter, to prepay Bonds maturing on or after
February 1. 1996. Redemption may be in whole or in part of the Bonds subject to
prepayment, If redemption is in part, those Bonds remaining unpaid which have
the latest maturity date will be prepaid first. If only part of the Bonds
having a common maturity date are called for prepayment the specific Bonds to be
prepaid will be chosen by lot by the Registrar. All prepayments shall be at a
price of par plus accrued interest.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds shall be issued only in fully registered
form. The interest thereon and, upon surrender of each Bond, the principal
amount thereof shall be payable by check or draft issued by the Registrar
described herein.
2.02. Dates: Interest Payment Dates. Each Bond shall be dated as of the
last interest payment date preceding the date of authentication to which inter-
est on tl4e Bond has been paid or made available for payment, unless (i) the date
of authentication is an interest payment date to -which interest has been paid or
made available for payment, in which case such Bond shall be dated as of the
date of authentication, or (11) the date of authentication is prior to the first
Interest payment date, in which case such Bond shall be dated as of the date of
original issue. The interest on the Bonds shall be payable on February 1 and
August 1 of each year, commencing February 1, 1988, to the owner of record
thereof as of the close of business on the fifteenth day of the immediately
preceding month, whether or not such day In a business day.
2.03. Registration. The City shall appoint, and shall maintain, a bond
registrar, transfer agent. authenticating agent and paying agent (Registrar).
The effect of registration and the rights and duties of the City and the Regis-
trar with respect thereto shall be as follows:
(a) Register. The Registrar shall keep at its principal corporate
trust office a bond register in which the Registrar &:.all provide for the
registration of ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of any Bond duly
endorsed by the registered owner thereof or accompanied by a written
Instrument of transfer, in form satisfactory to the Registrar, duly
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executed by the registered owner thereof or by an attorney duly authorized
by the registered owner in writing, the Registrar shall authenticate and
deliver, in the name of the designated transferee or transferees, one or
more new Bonds of a like aggregate principal amount and maturity, as
requested by the transferor. The Registrar may. however. close the books
for registration of any transfer after the fifteenth day of the month
preceding each interest payment date and until such interest payment date.
(c) Exchange of Bonds. Whenever any Bonds . a surrendered by the
registered owner for exchange the Registrar shall authenticate and deliver
one or more new Bonds of a like aggregate principal amount and maturity, as
requested by the registered owner or the owner's attorney in writing.
(d) Cancellation. All Bonds surrendered upon any transfer or ex-
change shall be promptly cancelled by the Registrar and thereafter disposed
of as directed by the City.
(e) Improper or Unauthorized Transfer. When any Bond is presented to
the Registrar for transfer, the Registrar may refuse to transfer the same
until it is satisfied that the endorsement on such Bond or separate Instru-
ment of transfer is valid and genuine and that the requested transfer is
legally authorized. The Registrar shall incur no liability for the re-
fusal, in good faith. to make transfers which it, in its judgment, deems
improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar my treat the
person in whose name any Bond is at any time registered in the bond regis-
ter as the absolute owner of such Bond, whether such Bond shall be overdue
or not. for the purpose of receiving payment of. or on account of, the
principal of and interest on such Bond and for all other purposes. and all
such payments so made to any such registered owner or upon the owner's
order shall be valid and effectual to satisfy and discharge the liability
upon such Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or exchange of
Bonds. the Registrar my impose a charge upon the owner thereof sufficient
to reimburse the Registrar for any tax, fee or other governmental charge
required to be paid with respect to such transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond
shall become mutilated or be destroyed, stolen or lost, the Registrar shall
deliver a new Bond of like amount, number, maturity date and tenor in
exchange and substitution for and upon cancellation of any such mutilated
Bond or in lieu of and in substitution for any such Bond destroyed, stolen -
or lost, upon the payment of the reasonable expenses and charges of the
Registrar in connection therewith; and, in the case of a Bond destroyed,
stolen or lost, upon filing with the Registrar of evidence satisfactory to
It that such Bond was destroyed, stolen or lost, and of the ownership
thereof, and upon furnishing to the Registrar of an appropriate bond or
Indemnity in form, substance and amount satisfactory to it, in which both
the City and the Registrar shall be named as obligees. All Bonds so
surrendered to the Registrar shall be cancelled by it and evidence of such
cancellation shall be given to the City. If the mutilated, destroyed,
stolen or lost Bond has already matured or been called for redemption in
• accordance with its terms it shall not be necessary to issue a new Bond
prior to payment.
(1) Redemption. In the event any of the Bonds are called for redemp-
tion, notice thereof identifying the Bonds to be redeemed will be given by
the Registrar by mailing a copy of the redemption notice by first class
mail (postage prepaid) not more than 60 and not less than 30 days prior to
the data fixed for redemption to the registered owner of each Bond to be
redeemed at the address sham on the registration books kept by the Regis-
trar and by publishing said notice in the manner required by law. Failure
to give such notice by publication or by mail to any registered owner, or
any defect therein, will not affect the validity of any proceeding for the
redemption of Bonds. All Bonds so called for redemption will cease to bear
Interest after the specified redemption date, provided that the funds for
the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City hereby appoints Norwest
Bank Minneapolis. National Association, Minneapolis, Minnesota, as the initial
Registrar. The Mayor and the Manager are authorized to execute and deliver, on
behalf of the City. a contract with the Registrar. Upon merger or consolidation
of the Registrar with another corporation, if the resulting corporation is a
bank or trust company authorized by law to conduct such business, such corpo-
ration shall be authorized to act as successor Registrar. The City agrees to
pay the reasonable and customary charges of the Registrar for the services
performed. The City reserves the right to remove the Registrar upon 30 days'
•notice and upon the appointment of a successor Registrar, in which event the
predecessor Registrar shall deliver all cash and Bonds in its possession to the
successor Registrar and shall deliver the bond register to the successor Regis-
trar. On or before each principal or interest due date, without further order
of this Council. the Finance Director shall transmit to the Registrar moneys
sufficient for the payment of all principal and interest then due.
2.05. Execution, Authenticatidn and Delivery. The Bonds shall be prepared
under the direction of the Clerk and shall be executed on behalf of the City by
the signatures of the Mayor and the Manager, provided that all signatures may be
printed, engraved or lithographed facsimiles of the originals. In case any
officer whose signature or a facsimile of whose signature shall appear on the
Bonds shall cease to be such officer before the delivery of any Bond, such
signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if the officer had remained in office until delivery.
Notwithstanding such execution, no Bond shall be valid or obligatory for any
purpose or entitled to any security or benefit under this Resolution unless and
until a certificate of authentication on such Bond has been duly executed by the
manual signature of an authorised representative of the Registrar. Certificates
of authentication on different Bonds need not be signed by the same representa-
tive. The executed certificate of authentication on each Bond shall be conclu-
sive evidence that it has been authenticated and delivered under this Resolu-
tion. When the Bonds have been so prepared, executed and authenticated, the
Finance Director shall deliver the same to the Purchaser thereof upon payment of
the purchase price in accordance with the contract of sale heretofore made and
executed, and the Purchaser shall not be obligated to see to the application of
the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed
Rdefinitive bonds, one or more typewritten temporary bonds in substantially the
form set forth in Section 3 with such changes as may be necessary to reflect
more than one maturity in a single temporary bond. Upon the execution and
delivery of definitive bonds the temporary bonds shall be exchanged therefor and
cancelled.
Section 3. Form of Bond.
3.01. The Bonds shall be printed in substantially the following form:
Rate Maturity
x
No. R-
[Face of the Bond)
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF PLYMOUTH
GENERAL OBLIGATION WATER REVENUE BOND OF 1987
Date of
Original Issue CUSIP
June 16, 1987
s
The City of Plymouth, a du-- nr-.anized and existing municipal corporation
In Hennepin County, Minnesota (City), acknowledges itself to be indebted and for
value received hereby promises to pay to
or registered assigns, the principal sum of $ on the maturity date
specified above, with interest thereon from the date hereof at the annual rate
specified above. payable February 1 and August 1 in each year, commencing
February 1. 1988, to the person in whose name this Bond is registered at the
close of business on the fifteenth day (whether or not a busiuess day) of the
immediately preceding month. The interest hereon and, upon presentation and
surrend-r hereof, the principal hereof are payable in lawful money of the United -
States of. America by check or draft by Norwest Bank Minneapolis, National
Association, Minneapolis. Minnesota. as Bond Registrar, Paying Agent, Transfer
Agent, and Authenticating Agent, or its designated successor under the Resolu-
tion described herein. For the prompt and full payment of such principal and
Interest as the same respectively become due, the full faith and credit and
taxing powers of the City have been and are hereby irrevocably pledged.
The City may elect on February 1. 1995, and on any interest payment date
thereafter, to prepay Bonds of this issue maturing on or after February 1, 1996.
P_16deaption
may be in whole or in part of the Bonds subject to prepayment. If
•redemption is in part. those Bonds remaining unpaid which have the latest
maturity date will be prepaid first. If only part of the Bonds having a common
maturity date are called for prepayment the specific Bonds to be prepaid will be
chosen by lot by the Registrar. All prepayments shall be at a price of par plus
accrued interest.
The City Council has designated the Bonds as "qualified tax exempt obliga-
tions" within the meaning of Section 265 (b)(3) of the Internal Revenue Code of
1986 (the Code) and within the $10 million limit allowed by the Code for the
current calendar year of issue.
Additional provisicne of this Bond are contained on the reverse hereof and
such provisions shall for all purposes have the same effect as though fully set
forth in this place.
This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security or benefit under the Resolution until the Certificate
of Authentication hereon shall have been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Plymouth, Hennepin County, Minnesota, by
Its City Council. has caused this Bond to be executed on its behalf by the
,acsimile signatures of the Mayor and Manager and has caused this Bond to be
dated as of the date set forth below.
Dated:
CITY OF PLYMOUTH, MINNESOTA
(facsimile) (facsimile)
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned
within.
By
Authorized Representative
[Reverse of the Bond]
This Bond is one of an issue in the aggregate principal amount of
0$3,300,000, all of like original issue date and tenor, except as to number,
maturity date, redemption privilege and interest rate, issued pursuant to a
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•resolution adopted by the City Council on June ZZ, 1987 (the Resolution), for
the purpose of providing money to aid in financing various improvements to the
water system of the City. as authorized by Minnesota Statutes, Section 444.075,
and the principal hereof and interest hereon are payable primarily from the net
revenues of the water system of the City in a special debt service fund of the
City. as set forth in the Resolution to which reference is made for a full
statement of rights and powers thereby conferred. The full faith and credit of
the City are irrevocably pledged for payment of this Bond, and the City Council
has obligated itself to levy taxes on all taxable property in the City in the
event of any deficiency in net revenues and taxes pledged, which taxes may be
levied without limitation as to rate or amount. The Bonds of this series are
issued only as fully registered Bonds in denominations of $5,000 or any integral
multiple thereof of single maturities.
IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution, the City
has covenanted and agreed that it will continue to own and operate the water
plant and system, free from competition by other like utilities; that adequate
Insurance on the system and suitable fidelity bonds on employees -ill be car-
ried; that proper and adequate books of account will be kept showing all re-
ceipts and disbursements relating to the Water Fund, into which it will pay all
of the gross revenues from the water system; that it will also create and
maintain a General Obligation Water Revenue Bonds of 1987 Debt Service Fund,
into which it will pay. out of the net revenues from the water system a sum
sufficient to pay principal hereof and interest hereon when due; and that it
will provide, by ad valorem tax levies. for any deficiency in required net sewer
• system revenues.
As provided in the Resolution and subject to certain limitations set forth
therein, this Bond is transferable upon the books of the City at the principal
office of the Bond Registrar, by the registered owner hereof in person or by the
owner's attorney duly authorized in writing upon surrender hereof together with
a written instrument of transfer satisfactory to the Bond Registrar, duly
executed by the registered owner or the owner's attorney; and may also be
surrendered in exchange for Bonds of other authorized denominations. Upon such
transfer or exchange the City will cause a new Bond or Bonds to be issued in the
name of the transferee or registered owner, of the same aggregate principal
amount, bearing interest at the same rate and maturing on the same date, subject
to reimbursement for any tax, fee or governmental charge required to be paid
with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose -game
this Bond is registered as the absolute owner hereof, whether this Bond is
overdue or not, for the purpose of receiving payment and for all other purposes,
and neither the City nor the Bond Registrar shall be affected by any notice to -
the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of
Minnesota to be done, to exist, to happen and to be performed preliminary to and
in the issuance of this Bond in order to make it a valid and binding general
obligation of the City in accordance with its terms, have been done. do exist,
have happened and have been performed as so required, and that the issuance of
this Bond does not cause the indebtedness of the City to exceed any constitu-
tional or statutory limitation of indebtedness.
(Form of certificate to be printed on the reverse side of each Bond,
following a full copy of the legal opinion.)
I certify that the above is a full. true and correct copy of the legal
pinion rendered by bond counsel on the issue of Bonds of the City of Plymouth,
Minnesota, which includes the within Bond, dated as of the date of delivery of
and payment for the Bonds.
(Facsimile Signature)
City Clerk
The following abbreviations, when used in the inscription on the face
of this Bond, shall be construed as though they were written out in full accord-
ing to applicable laws or regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT Custodian
in common (Cult (Minor
TEN ENT -- as tenants
by entireties under Uniform Gifts or
Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and Act . . . . . . . . . . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above
list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers
unto
the within Bond and all rights thereunder, and does
hereby irrevocably constitute and appoint attorney
to transfer the said Bond on the books kept for registration of the within Bond,
with full power of substitution in the premises.
Dated:
Nctice: The assignor's signature to this assignment must
correspond with the name as it appears upon the face of the within
Bond in every particular, without alteration or any change whatever.
• Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust company or by a
brokerage firm having a membership in one of the major stock exchanges.
The Bond Registrar will not effect transfer of this Bond unless the infor-
mation concerning the assignee requested below is provided.
Name and Address:
(Include information for all joint owners if
this Bond is held by joint account.)
Please insert social security or
other identifying number of assignee.
3.02. The Clerk shall obtain a copy of the proposed approving legal
opinion of LeFevere, Lefler, Kennedy, O'Brien 6 Drawz, a Professional Asso-
ciation, Minneapolis, Minnesota, which shall be complete except as to dating
thereof and shall cause the opinion to be printed on each Bond, together with a
certificate to be signed by the facsimile signature of the Clerk in substantial-
ly the form set forth in the form of Bond. The Clerk is hereby authorized and
directed to execute such certificate in the name of the City upon receipt of
such opinion and to file the opinion in the City offices.
Section 4. Payment: Security: Pledges and Covenants.
4.01. The City shall continue to operate its Water Fund to which shall be
credited all gross revenues of the water system and out of which shall be paid
all normal and reasonable expenses of current operations of the water system.
Any balance therein shall be deemed net revenues and shall be transferred, from
time to time, together with general taxes hereafter levied, to a General Obliga-
tion Water Revenue Bonds of 1987 Debt Service Fund (Debt Service Fund) hereby
created in the Water Fund, which fund shall be used only to pay principal of and
interest on the Bonds and any other bonds similarly authorized. There shall
always be retained in the Debt Service Fund a sufficient amount to pay principal
of and interest on all the Bonds, and the Finance Director shall report any
current or anticipated deficiency in the Debt Service Fund to the City Council.
4.02. The City Council covenants and agrees with the holders of the Bonds
that so long as any of the Bonds remain outstanding and unpaid, it will keep and
enforce the following covenants and agreements:
(a) The City will continue to maintain and efficiently operate the
water system as a public utility and convenience free from competition of
other like utilities and will cause all revenues therefrom to be deposited
in bank accounts and credited to the water system accounts as hereinabove
provided, and will make no expenditures from said accounts except for a
duly authorized purpose and in accordance with this resolution.
(b) The City will also mai stain the Debt Service Fund as a separate
account in the Water Fund and will cause money to be credited thereto from
time to time, out of net reven:,es from the water system and ad valorem
taxes, in sums sufficient to pa, principal of and interest on the Bonds
when due.
(c) The City will keep and maintain proper and adequate books of
records and accounts separate from all other records of the City in which
will be complete and correct entries as to all transactions relating to the
water system and which shall be open to inspection and copying by any
bondholder, his agent or attorney, at any reasonable time, and it will
furnish certified transcripts therefrom upon request and upon payment of a
reasonable fee therefor, and said account shall be audited at least annual-
ly by a qualified public accountant and statements of such audit and report
will be furnished to all bondholders upon request.
(d) The City Council will cause all persons handling revenues of the
water system to be bonded in reasonable amounts for the protection of the
City and the bondholders and will cause the funds collected on account of
the operations of the water system to be deposited in a bank whose deposits
are guaranteed under the Federal Deposit Insurance Law.
(e) The Council will keep the water system insured at all times
against loss by fire, tornado and other risks customarily insured against
with an insurer or insurers in good standing, in such amounts as are
customary for like systems, to protect the holders, from time to time, of
the Bonds and the City from any loss due to any such casualty and will
apply the proceeds of such insurance to make good any such loss.
(f) The City and each and all of its officers will punctually perform
all duties with reference to the water system as required by the laws of
the State of Minnesota.
(g) The City will impose and collect charges of the nature authorized
by Minnesota Statutes, section 444.075 at the times and in the amounts
required to produce, together with any taxes designated as a source of
payment of the Bonds, net revenues adequate to pay all principal and
interest when due on the Bonds and to create and maintain such reserves
securing said payments as may be provided in this resolution.
(h) The City Council will levy general ad valorem taxes on all
taxable property in the City, when required to meet any deficiency in net
revenues.
4.03. It is hereby determin-d that the estimated collections of net water
system revenues will produce at ltast five percent in excess of the amount
needed to meet when due, the princilal and interest payments on the Bonds and
that no tax lv�ry is needed at this time. The City Clerk is directed to file a
certified copy of this resolution with the Auditor of Hennepin County, and
•obtain the certificate required by Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. The officers of the City are hereby authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds,
certified copies of proceedings and records of the City relating to the Bonds
and to the financial condition and affairs of the City, and such other certifi-
cates, affidavits and transcripts as may be required to show the facts within
their knowledge or as shown by the books and records in their custody and under
their control, relating to the validity and marketability of the Bonds and such
Instruments, including any heretofore furnished, shall be deemed representations
of the City as to the facts stated therein.
5.02. The Mayor, Manager and Finance Director are hereby authorized and
directed to certify that they have examined the Official Statement prepared and
circulated in cc nection with the issuance and sale of the Bonds and that to the
best of their knowledge and belief said statement is a complete and accurate
representation of the facts and representations made therein as of the date of
the Official Statement.
Sec. 6. Special Tax Covenant.
6.01. (a) The City covenants and agrees with the holders from time to
timE of the Bonds that it will not take or permit to be taken by any of its
*officers, employees or agents any action which would cause the interest on the
Bonds to become subject Co taxation under the Internal Revenue Code of 1986, as
amended (the Code), and the Treasury Regulations promulgated thereunder, in
effect at the time of such actions, and that it will take or cause its officers,
employees or agents to take, all affirmative action within its power that may be
necessary to ensure that such interest will not become subject to taxation under
the Code and applicable Treasury Regulations, as presently existing or as
hereafter amended and made applicable to the Bonds.
(b) The City shall comply with requirements necessary under the Code
to establish and maintain the exclusion from gross income under Section 103 of
the Code of the interest on the Bonds, including without limitation requirements
relating to temporary periods for investments, limitations on amounts invested
at a yield greater than the yield on the Bonds, and the rebate of excess Invest-
ment earnings to the United States if the Bonds (together with other obligations
reasonably expected to be issued in calendar year 1987) exceed the small -issuer
exception amount of $5,000,000. For purposes of qualifying for the small -issuer
exception to the federal arbitrage rebate requirements, the City hereby finds,
•determines ano declares that the aggregate face amount of all tax-exempt bonds
(other than private activity bonds) issued by the City (and all subordinate
entities of the City) during the calendar year in which the Bonds are issued and
outstanding at one time is not reasonably expected to exceed $5,000,000, all
within the meaning of Section 148(f)(4)(C) of the Code.
6.02. The City further covenants not to use the proceeds of the Bonds or
to cause or permit them or any of them to be used, in such a manner as to cause
the Bonds to be "private activity bonds" within the meaning of Sections 103 and
141 through 150 of the Code.
6.03. In order to qualify the Bonds as "qualified tax-exempt obligations"
. within the meaning of Section 265(b)(3) of the Code, the City hereby makes the
following factual statements and representations:
(a) the Bonds are not "private activity bonds" as defined in Section
141 of the Code;
(b) the City hereby designates the Bonds as "qualified tax-exempt
obligations" for purposes of Section 265(b)(3) of the Code.
(c) the reasonably anticipated amount of tax-exempt obligations
(other than private activity bonds, treating qualified 501(c)(3) bonds as
not being private activity bonds) which will be issued by the City (and all
subordinate entities of the City) during calendar year 1987 will not exceed
$10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City
during calendar year 1987 have been designated for purposes of Section
265(b)(3) of the Code.
The City shall use its best efforts to comply with any federal procedural
requirements which may apply in order to effectuate the designation made by this
paragraph.
DThe motion for the adoption of the foregoing resolution was duly
seconded by Councilmember Vasiliou , and upon vote being taken thereon, the
following voted in favor thereof: Mayor Schneider, Councilmembers Crain,
Sisk, Vasiliou and Zitur
and the following voted against: None
whereupon said resolution was declared duly passed and adopted.