HomeMy WebLinkAboutCity Council Resolution 2012-325CITY OF PLYMOUTH
RESOLUTION No. 2012-325
A RESOLUTION AUTHORIZING PRE -PAYMENT OF THE $1,030,000 TAXABLE
GENERAL OBLIGATION HOUSING IMPROVEMENT BONDS, SERIES 19988
WHEREAS, on February 10, 1998 the City entered into a Development Agreement with
the Shenandoah Homeowners Association to establish a housing improvement area to undertake
siding improvements to the housing units therein; and
WHEREAS, on October 1, 1998, the City issued $1,030,000 Taxable General Obligation
Housing Improvement Bonds, Series 1998B (the Bonds) to finance a portion of the cost of these
improvements; and
WHEREAS, the Bonds are being repaid through housing fees assessed against all
properties in the Shenandoah Housing Improvement Area; and
WHEREAS, all outstanding fees are collected with the annual property taxes and are
collectable through the 2013 tax year; and
WHEREAS, the Bonds were purchased by Norwest Investment Services, Inc. and
registered in the name of Cede & Co., as nominee of Depository Trust Company of New York,
New York; and
WHEREAS, the Bonds are callable on February 1, 2007 or any date thereafter at par plus
accrued interest; and
WHEREAS, the Bonds mature on February 1, 2014; and
WHEREAS, after review, staff has determined that sufficient funds are on hand to
immediately pre -pay all of the outstanding principal and interest amounts; and
WHEREAS, the current interest rates on the outstanding debt are 5.85 percent and 5.9
percent and it is the desire of the City to save on future interest costs by pre -paying the remaining
principal amount of $195,000 plus interest accrued to the pre -payment date.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF PLYMOUTH, MINNESOTA that Staff is hereby authorized to pre -pay all
outstanding principal and interest amounts on the Bonds as soon as possible given notifications
requirements.
Approved this 13th day of November 2012.
Resolution No. 2012-325
Page 2 of 2
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed city clerk of the City of Plymouth, Minnesota,
certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on
November 13, 2012, with the original thereof on file in my office, and the same is a correct transcription
thereof.
WITNESS my hand officially as such City Clerk and the corporate seal of the city this
day of
City Clerk
EXHIBIT A
NOTICE OF REDEMPTION
$1,030,000 Taxable General Obligation Housing Improvement Bonds, Series 1998B
Dated as of October 1, 1998
City of Plymouth, Minnesota
NOTICE IS HEREBY GIVEN that the City of Plymouth, Minnesota (the "Issuer"), has called for redemption and prepayment on
December 19, 2011 the outstanding Bonds of the above -referenced issue (the Bonds) maturing on February I in the following years,
in the principal amounts and having the interest rates and CUSIP numbers listed below:
Year
Amount
Interest Rate
CUSIP Number*
2013
$ 95,000
5.85%
729773 D57
2014
100,000
590%
729773 D65
The Bonds will be redeemed at a price of 100% of their principal amount plus accrued interest to the date of redemption. Holders of
the Bonds should present them for payment, on or before said date, on which date they will cease to bear interest, to the following
Paying Agent:
Finance Manager
Citi Hall
3400 Plymouth Boulevard
PIN -mouth, Minnesota 55447-1482
(763) 509-5060
Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup withholding
tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they
are not provided with your social security number or federal employer identification number, properly certified. This requirement is
firlfrlled by submitting a W-9 Form, which may be obtained at a bank or other financial institution.
The Paying Agent shall not be responsible for the selection of or use of the CUSIP number, nor is any representation made as to its
correctness indicated in this Notice of Redemption. It is included solely for the convenience of the Holders.
Dated: November 13, 2012.
*Denotes Full Call.
BY ORDER OF THE CITY COUNCIL
OF THE CITY OF PLYMOUTH,
MINNESOTA
By /s/ Dave Callister
Administrative Seivices Director