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' .F.- ' �'_ : � . . . . . _ '�'. . � . . . �, � , '�:��. � - . , � , . . . .. - . - - . . +�. - _ . . . , . - � , , . , . . . . . ., . . ., . ... . . __, , �_. . ..�. . . . . .,. . . � . -.: . .. . r:. . . . ., . . .,, . �.�.. . .. .. .- F.�r . `.. ' ,. " . . : ... .* � . . ,: . .. � . ..-,.' , .. . _. . . . ' ,,::- . � .. . ,.. .. �� . . . . � , . ,: :. .:�, : . � .. . � � ' ..�� •.,. , . y, � ' . , ,- . ..� , �� . . . . � .. - . - . �- . ; , . ... -. . ;; .� . . ` . . , . .. . � �, r , . . . ;�. , . � . . .. , , . � � . .. ..:. , . . .. 3 � .. . . �.Ay . � . . . . . .. ., ��i , � , � � , , � , . .�. - � �, ,::.,- � . � ' _ Or�. �. �5�y �� C`T Y o�'� � �� w -� � � ��._�'�� o ..0 9.vfa.a... � ..e a....a.... � avo—°��° ae ab CITY OF SAINT PAUL �s h� w.a OFFICE OF THE CITY ATTORNEY September 15 , 1975 PIERRE N. REGNIER • Rose Mix , City Clerk 386 City Hall Saint Paul , Minnesota Dear Mrs . Mix : Enclosed is an ordinance authorizing the issuance of Port Authority bonds in the amount of �3, 350,000. It has been brought to my attention that this ordirrance is scheduled for first reading by the City Council on September 18, 1975. The ordinance will have to be signed by a councilman before it can be introduced. I would assume that you will have it signed at the September 18th meeting of the City Council so that it can be introduced on that date . Yours truiy, . �� PIERRE N. REGNIE City Attorney PNR:bl Enc . cc : Robert F. Sprafka Bernard P. Friel, Briggs & Morgan Members of the City Council Mayor Lawrence D. Cohen Thomas J. Kelley City Hall, Saint Paul, Minnesota 55102 612 298-5121 O� . rlo � IS�4 CITY OF SAINT PAUL G►tY O.► � d �� Rose Mix o .�,..;;p;. '' Albert B. Olson City Clerk and ?� �=�� a� Council Recorder Council Secretary "'m nc ... OFFICE OF THE CITY CLERK BUREAU OF RECORDS 486 City Hall St.Paul,Minnesota 5510�2 Phone 298-k°�8i i i � � f' � .` � � � • � ';i . � � "cl ':{ , (�. . . . .. . O ,� . .,. . . -� ... � . -:1 c i September 18, 1975 ', �� Mr. Robert Sprafka Port Authority 330 Minnesota Building St. Paul, Minnesota Dear Sir: At today's City Council meeting, a presentation was made in connection with an ordinance authorizing the issuance of bonds and a packet of information was distributed to City Councilmen during the presentation by Mr. Popovich. Will you please forward a copy of this information to the City Clerk to be made part of the record in connection with this matter. ours truly, ��F � { "'� City Clerk G� Ao/sc _. _ - - --- ___ - --__------� . , .� , � , � . -... � �� GL-�/��e�s�-- � � � ' � � �,,.-�� - . � � _. r`� _�__- (, � ; _.�i� � �/��/��-- . . � ._ _ _ c R , . � � �. _,� I , .. ...__, , .> � ` � �� _� __ . � E_ ..__ ; M � ,. ... _ ' � � � � , J' . . � � , ` ,.., _ _.._ . .,,..,__ .__. . ___ _.__ _ �S51 �....._.. _.. _.—._. _.___ . .. . ._ � , PHONE /^(�,� • f I�,/ ' ��J-� � 612Y 222-931 S v/ r �. +�.. � , , � �EfE2�.on � �o/iov�e�i MUNICIPAL BOND COIV3ULTANTS 314 MINN[SOTA BUILDING SCHOOL AND MUNICIPAL SAINT PAUL, MINN6BOTA 5`$101 BOND 188UE3 FINANGIAL.SURVtYs . September 16, 1975 As:rss�avr,^No Locws. iMrreovseewTs TO: The Honorable Members of the St. Paul Port Authority Re: $2,250,000 General Obligation Bonds or. $5,600,000 General . obliqation Bonds Dear Commiss ioners : � As you know, the Authori`ty has Council approval to issue $2,250,000 general obligation bonds. Because of � market �conditions the bonds were not issued and temporary short-term financing due early in 1976 was utilized. The Authority is also presently considering requesting Council approval for additional $3, 350,000 general obligation bond authority. Consideration should be given to whether the Authority should have two separate issues or one combined issue. In order to assist you in your determination of the amount of bonds to be issued, we have prepared the following data relating to market conditions, over all indebtedness, and possible schedules. 1. Exhibit l, shows the present Port Authority principal requirements far its nine outstanding general oblic}ation issues. � 2. Exhibit 2, shows the Port Authority`s present levy requirements for the existing nine general obligation issues. 3. Exhibit 3, shows the principal requirements of all outstanc3ing general obligation bon�s for the City of St. Paul, the School District, the County and Port Authority. 4. Exhibit 4, shows the actual levy requirements presently certified for all outstanding indebtedness of the City, the School District, County and Port Authority. T'hese levies include principal, �.nterest, and the required 5% excess to retire the principal indicated in the previous Exhibit 3. i � � ' � i ' � � The Honorable Members of the �r, •. � . , • St. Paul Port Authority September 16, 1975 Page Two. 5. Exhibit 5,• is the 20 and 11 year Bond Buyers -Index � showing the municipal bond average yield. Also attached , are several articles relating to the New York City situation , and the financing needs of the City of New York and New ; York State. The New York State Legislature recently I authorized $2.3 billion assistance from the State whi�h should alleviate the City's demands on the market through , December. 6 . Exhibit 6, is the total principal requirements taken from Exhibit 3, together with the addition of the pending Ramsey County Adult and Juvenile -Detention Center issue of $11,420,000. The exact detail of the City or School District future authorization is presently unknown. This Exhibit contains two Port Authority possible schedules. One is tor $2,250,000 and the other for a combined issue of $5,600,000. The maturity schedules of the Authority's proposed financing have been dovetailed into outstanding principal requirements of all subdivisions of government. 7. Exhibit 7, shows the present principal total ot the Authority's nine outstanding issues and contains several possible maturity schedules, i.e. , three each for the $2,250,000 authorization and three for a possible $5,600,000 issue. �8. Exhibit 8, is a proposed Notice of Bond Sale with appropriate blanks for insertion of the amount and maturity schedule refl,ecting the final decision of the Port Authority Commissioners . 9. Exhibit 9, is a history of all past Port Authority general obligation sales i.n comparisan with market conditions � then prevailing. 10. Exhibit 10, is a sampling of bond sales of comparative quality to illustrate interest rates received. It is, of course, difficult to forecast future market conditions. The issuance of bonds should depend primarily upon the construction needs and financial requirements of the Authority. Funds should be on hand to meet construction , . . _. ._ __.- - -�-- - -- --. _ - - -- - _ _.�._._.__ ._.�----- � � . . � �•, � � The Honorable Members of the St. Paul Port Authority September 16, 1975 ---- Page Three. costs when needed. Of course, the proceeds of the bond issue will be reinvested from the time bond proceeds are received to the end of the construction period. Such reinvestment proceeds offset total net interest costs and are appropriated to the sinking fund for the purpose of retiring bond principal or reducing required levies. Market conditions during 1975 have been affected by the problems of New York City, the inflationary trends, and the deficit financing needs of the Federal Government. �he backlog of unissued municipal securities is growing even though there has been record financing du�`ing 1975 to date. Local supplies of Minnesota securities have been reasonable and have been absorbed by the market in good order. However, the needs of New York, the United States Government and other municipalities indicates, according to municipal market observers, that interest rate� will continue at present levels well into 1976 _ � 1. We xecommend, therefore, that the AuthQrity consider offering bonds for sale and receiving bids at nnon on Tuesday, November 18. Bids can then be evaluated for Port Authority action at its regular meeting at 2 :00 p,m, 2 . We further recommend that the Port Authority consider a combined issue in the total amount of $5, 600,000 be sold to avoid one issue in 1975 and another shortly thereafter in 1936. Some savings will accrue in advertising, bond .printing, et�. where one issue proceeds . Obviously, however, if the $3, 350, 000 contemplated by Resolution No. 1007 is not needed for a con- siderable period of time, then only the existing $2,250, 000 authorization should be issued. 3. After consultation with a number of possible bidders and beeause of current market conditions, we recommend the shortened maturity schec3ule with the balloon payment in 1993 . This is done with the obvious view of achieving lowest net interest rates in today's market and with the view that the balloon maturity can be advance refunded, if market conditions ). . ! j 1 \ • The Honorable Members of the St. Paul Port Authority September 16, 1975 Page Four. improve, or refunded at the time of the call date or last maturity by another definitive issue. The Port Authority historically has issued its bonds over a 30 year period of time. In the past years of low interest rates, such a� leng- thened maturity schedule was permissible and least affected real estate taxes . The Authority normally received an interest rate comparable with the . index at the time of the sale. (See Exhibit 9) . Since the index is considerably higher than the . statutory 7/ interest rate limitation, utilizing a, schedule as in the past may produce no b�clders and the sale would be un- successful. Exhibit 10 is a sampling of recent sales of AA rated a nd high quality entities for illustrative purposes. Note the correlation of the net rate received and the length of the maturity schedule. It is anticipated that with the schedule suggested the Authority would receive a net interest rate of approximately 6'�/0. W'hile the rate is high, the schedule cor- responds in the earlier years to the normal Authority schedule pattern, results in savings in interest dollars over a lengthier schedule, and with the call feature permits refinancing of the large tail-end maturity. We will be happy to augment the foregoing exhibits and comments in oral discussion with the Authority members at your convenience. � Sinc�rel ours, � . � � Peter S. 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Bonds) Monthly Bond Index 1970 1971 1972 1973 1974 1975 January 6.79 5. 74 5.03 5.08 5. 18 , 7.08 February 6.54 5.27 5. 35 5.16 5.16 6. 34 March 6.00 5. 37 5.29 , 5.22 5.27 6.54 April 6. 11 5.15 5.49 5.22 5. 73 6.93 May 6 .89 5.84 5.35 5 .10 5. Q1 6.95 June 6.92 5.70 5. 15 5. 13 6.01 7.05 July 6. 79 5. 19 5.43 5.34 6.64 6.96 August 6.25 6.07 5.32 5.59 6.70 7.16 September 6.16 5. 39 �. 39 5.18 6.88 7.34 October 6. 39 5. 17 5.22 5.04 6.68 November 6.28 4.99 5.04 5.17 6.66 December 5.41 5.44 4.96 5.15 6.89 Weekly Bond Index 8/22/74 6.73 1/2/75 7.08 5/15/75 6.88 8/29/74 6.91 1/9/75 6.99 5/22/75 7.09 9/5/74 6.88 1/16/75 6.90 5/29/75 7.09 9/12/74 6.79 1/23/75 6.59 6/5/75 7.05 9/19/74 6. 76 1/30/75 6.54 6/12/75 6.80 9/26/74 6.62 2/6/75 6. 34 6/19/75 6 .93 10/3/74 6.68 2%13/75 6.27 6/26/75 7.00 10/10/74 6.52 2/20/75 6.40 7/3/75 6.96 10/17/74 . 6.48 2/27/75 6.55 7/10/75 6.98 10/25/74 6.57 3/6/75 6.54 7/17/75 7.06 10/31/74 6.65 3/13/75 6.65 7/24/75 7.22 11/7/74 6.66 3/20/75 6.77 7/31/75 7.09 11/14/74 6.55 3/27/75 6.95 8/7/75 7.16 11/21/74 6.53 4/3/75 6.93 8/14/75 7.17 ' 11/27/74 6.71 4/10/75 7.03 8/21/75 7.18 12/5/74 6.89 4/17/75 6.86 8/28/75 7.18 12/12/74 7.T5 4/24/75 6.97 9/4/75 7.34 12/19/74 7.08 5/1/75 6.95 _ �/11/75 7.40 12/26/74 7.08 5/8/75 6.86 EXHIBIT V, Paqe 1 September 15, 1975 Municipal Bond Average (11 Bonds) We ek ly 9/11/75 6.95 � 7/2/75 6.56 9/4/75 6.90 6/26/75 6.58 , 8/28/75 6.72 6/19/75 6.49 8/21/75 6.73 6/12/75 6. 37 8/14/75 6.72 6/5/75 6.64 8/7/75 6.73 5/29/75 6.71 7/31/75 6.65 5/22/75 6. 71 7/24/75 6.76 5/15/75 6.49 7/17/75 6.69 5/8/75 6.47 7/10/75 6.59 � 5/1/75 6.55 Monthly 1971 1972 1973 1974 1975 January 5.47 4.82 4.98 5.05 6.62 � February 5 .01 5.14 5.06 5.04 6.00 March 5. 15 5.08 5.11 5 . 16 6.20 April 4.93 5.29 5.11 5.61 6 .57 � May 5.62 5 .17 4.98 5.78 6.55 June 5.47 4.97 5.02 5.83 6.64 July 5.99 5.24 5.22 6.42 6.56 August 5.86 5.14 5.45 6.44 6.73 September 5. 14 5.21 5.04 6.56 6.90 October 4.92 . 5.05 4.91 6. 34 November 4.77 4.91 5 .05 6.33 December 5.21 4.84 5.03 6.50 EXHIBIT V, Page 2 , . �� i�ack of Faith: I-nvestors Doubt-�f`� ' ��-� . . .� �: _ : :_ : . .:. �uick New York.�Returri to Market� �= � _ :... .. . Cowriwwd Fmrw FJrst PaBr' -::' r restoratlon�J ot� investor:-conttdence 'in� six curred.a cost oi T.9S96 in seiliog t38:4 mil- manths is"very questi�able."The.dty will ;tion ol notea. Cleveland ottictals estfmsted t�ave to rework.its budget systems aud"sell . that .ther would have paW on1�..8.�0 1t them W the rinancial oommuaitp ou s credi- investors hadn't been worried by urbaa H- ble baais,••Mr.G1yde saps."New-York Clty nancial probiems. The higher rate w[U oost atricials hare been�nable to P�'o��aPP�' the dty i�50.000 tn added interest charges.- . pTiate.tacta a� ng�n+es. and oonsequently HIgber interest ratea on new�ly issued sc- most analysts have loet a Eood deal o[conii- curities also drtve do�m tLe eecondary•rnar- deaoe in tt►e dty's budget tigur+es."1 ,�:;.. . ket priixa oi notei sad boods nold ear8er�at '. Asked wrt�at-the-dty can do to eestorc , lower rates. And since mid-FebTUarr..�rhen contidence aod retura to the credit maskets, the New York Ctq►situatlua began to 6et na- an executi�e ot a New Yorlc tnwranoe com- tional attention.s tYPiaal iS.00D state oe dty P�r�3'5.:•.Nothing.17�r city'caa't do any- bona has suacainea a arastic prke aecllne af etring. Tney nave losc cdeir mark�r.tability , Ss�S,dealers estlmate: .. ,., ;"r;, for a generatlon.'- ` '�� _ There[ore. it im't oNy other states and. ,;- pa �, � - i.,:, :� � ery;:.nnsaeiat executi,re is`�,o cities.Wat are being tnat bp tl�e market e!- Sloomr; ot courne; even�thoush tha.dty's tect ot debt trouble�in Near,York Aty aad p�lerns have lrozea it.out ot the credit . the �mpire State. Hadera oC e�dsting tax- markets for.monttn.'1 think New YoHc pty exem •se�.writies—moWy banka;inwra�e mi t otfer r ta a �so"sa Mr. compaaies and other tinancial institutioaa-- grandltz ot quibank ia Pittsburgtr 'You'R . are xeing the ralue ot t h e ir p o rt fo l i o s P a i a- have to aee a year�so o[balanced lwdgets � I f t h e b o r r o w i a g can't b e d 0� t h e s t a t e tully erode. ' ;,� _ ; .;�;: tor it�estors W De c�ideot that the pattern �and tt�city are•expected to tenew'tbeir ap- ta Ironically. this erosion tends to limit.the can be contlnued." • . ; _.,,� P�als tor help trom tbe tederal sorernment. market tor new debt securitlea. In qcder to : The emergency Aelp pcovtd�d.by the 'T h i a p o a a i b i l i t y, 9 o tar fl r m ly re j e c t e d by Secretary ot Lhe 1�eawry William Simoa buy cew New. York securities, a Philsdei� atate 1a hastily pas�ed legislation this vreek .and Mr.Burns,the Fed chsirraan,b causi� phia bankes notes� bis ioadWtlon wovld doesn't:cover that l�g a period, though. It hare W niae (nnds by selUag xcurftles o[ p�vides tor meeting the city's>tinancial mlxed feelinga among flnaneial peopl�out- � other iasuers,which rwv�show a paper loss. � in tull tor 9eptember, October and �de the atate. - � . The sale. Lovrerer, wrould result ta a real November. But in December the qutaide Ror one thing, there is cencera that a capital loss.which tde bank doe�n't:want to help wlll oover aNyl�alf the cltp's projected tedergi baq-a�t ot New York, U it could be � incur_ . .= � �'�:- Dudget ahorttall. :accomplished;�roiild set a dsn6sen�es prece• ( �� .,. .".' dettt.._••n wou2d=be an. tm►ltation to � This mearu th��whik there is stlll aome The DeadBwes ' V: . every city in the t�ta�tty t�o tay.ib pe+obiems p�rverse gl�e around the country at New In December and iri following months, at Washington'a doontep.The batUe for tir York C[ty's plight, tinancial people gener- ��i�r is Eaced vr(th cont�►uing obligations �,1 responsibirity wouid be hali bst at the ' aliy are aympathetic and hopetul that a te- tor Rpayments ot debt, payrolls artd ather atart if cities telt,in the long nm they wrould � oovery can be made. . - � costs..It doesdt expect revenues.to cover pe bailed out b the federal v •'We've taken a constructive rlew ot New the9e uoats, but tbe:amount�the deticit b 3' �ao ernment,•. York Qty's abiUty W withataad the detault still unclear. . . , . ; • • , warru Donald M. Brandin;,-chairataa: o! siq�sti�,••aays A[errfll Rirg.vice preaident � Maturtng debt,�whlch wiri have to be re- Boatmen'a NationaT Bank oE SL i.onls.: ? �i and txad ot resesrcd tor the imesUnent di- �� . n��. y; �m� ��.�. ' But, whtle he doesn't wreloome the idea. vlaion of Bank ot America. The Sau Fran- rdentieas wavea.With the r�atate legisis- �k. ot Calitornia'a Mr.• Hfqer thinks. c�sco bank was smong the wt�a[-towa tinan- short-tun federsl guarantees of Na�r York tion presumably covertng the city through debt mi ht be needed. "A detault cial laitiwtions in the $�ouP that tmder November. inveators are lookfag ahesd to York Q� would be aucb a maasive shock to wrote 4 ST36 miWon boren�vinB bY New York pec. 11�aa the next critical.date. Tde dty. the Snanclal system that the te�rxl�arn- State this w�eek; ot that total;i�30 tniliMa has•i�13T.8 mi111on in notes maturing the�t, ee we�W.meet cit7�., ° , : ,' , .` iw a�other f6.Z millbn in bonds Dec�15 ment has a rois ir� reven P �6 �." � .. •.We,�e always belteved the capabilityr W 'and 531.8 mtllfon in notes Dec.1T:-.....�.>-•;,,; ��°" _. `` � -`,; ` ;. ' vrithstand default e x i sted,�• M r. R ing s ays: •; The pichn^e is the sarae moath by manW � A-better, lo n g r a n g e aol u t i o o, Mt`.btiller� ; ..Tde etmnces ot detault ipeceaeed because inW.1976 sud beyond.In mid,ianuary;i968:4 �says,requires the restrucQrri�g e!loml gw-. unable'W get its ac�to- �ernmeat-tiaance:�specitically,. ••s r�Bienai-1 � ��'9� aPPe� m111ion in tiotes and bonda mature; in miQ- ther but, W me, :the resources vvete tax bax ttaking in the suDurbr) so tfiat tt�ef Be : � Febrnary, �8'-.miliion: in mid-Mai�ch; x=.yices needed in a city can be ntore talily j A Q�testioe et Tirtie -- : ::; � . :• �, $598.3�miltion..�>_.`, .:i._:- . -�: '•c .` .. . _ ;_:, allocated againsf tax tevenuea.. , � Tr,e ac�rs ��u� aenMC u�ougn •••�e roblem ot NeK•York is a robiea� � ..Whether the city can market its own ae- j P P this tiscal year is estimated at t3.3.mil- j ;n vernment tinance and�one that was curltles in three to a1x months is a direct� lion, bronght on by years ot apending more � fta�ctlon o[ the proSress they csn ahowr" in' than was taken in.. ,- ,_ ��:. Soing' to controni"us at some po{nt,•• Mr" getttng Snance under control� •Mr.' Ring Under the new state law; the city has tv Miller says.'•It.6appened in New York._but� sa Other bankere a8ree. but some think it c�uld have beerr any city." Ys. submit a ttnanctal pTan by Oc�ZQ to a new .a-•=:-- . three W six monthe is too sdart a time tor �ncy set up to•cantrol the city's purse ' �f�� . .-- , :, � ..-.",' strings, called-the Emergency :FEnancial � Fot example, L.arrY G7Yde, vice preai- Oo�trol Board: Thts plan is expected to dent aad manager o[ bond trading tor San show a deficit ot aome�00 million in the tir. �anciaca's (�ocker. NationsF Bank..says ��.ending next June 30. This deticit— "- � and a likely deficit tor the tollowing tiscal � year sxtd possibly the year atteT that=�vi12 � Qavs:to.Da.c�ered bY Dormwin�-�bY'tlfr . citr;Dy aa s�ency�set up to borro�rt tor the. , : . ciir caikd the�1�uhicfPal-Asdstaaoe Coen:,. '. � a'DT.:tt1Q statet:ias�� ._�r`►•`�w:,�, �s: , . _ - — �.. . I ' � . • _. . - --<-y:�_;.,,,,.,..- , '� THE WALL STREET JOURNAL , � � September 12, 1975 . � I,ack,o f Fa�th �~ _ � Reatoring contidence in Newr'York C(ty's 1 Investors Are Doubtful :�� . � �:�d�t � im�<<�,� ,��j,��.�,�L cicy nuc i ( . _ ,._ ,.. .. , ••. �� La 8'overnmental bodies througtrout the.� � I country, financial executives,say. States i New York Can Return ; and cities rely heavily on sa1Q�the�� _ ; � : � ,� exempt aecuritiea to provide-services and-i '' build roads, schools and other tacilitks. Al--� To CTedit Market Soon ,:{ �aar �i�nea by ,�,i„�-�Sc,:� �r sion-reducxd tax nvenues, the:atates and-� � l -'�" - ��+ c►aes an feeUng ttu. impact.ot tha New:j City Isn'�`Out:of the:Woods' - p��i=��.�Ag�.: .:� r . . . ,... z 'Tberr has:been a sub�stanttal pullback�i Despite Its Latest-Rescue, ,�, � �+� �1 kinda ot municipal credits by 1ndi-_i . _ ._ .., ., • � � viduala and�imestors who �iust.are oon-=i Fed &-Contingency�Plans :; Cem� �L me ,�,,�„�,:�.�,�,, � H �: _� Branditz, .senior vics pnsidsnt, .inveat-sJ �_-,; ,. � ;�:__ _:. _! ments,..ot Pittsburgh's Fquibanl[..�•I tdink:� � , -- .,, ` �: � � -� the New-YoFk ffituatlon has had s tremen-�.� It s - Just -'� Buying _ Time �' doua effect aot.oniy on the muni�{pal ma�._:., � ''� ',: ' .� ket but on other,markets as well and on the.- i;,.a .�.. < . � _ thinking ot monetary authorities^•: . 'A�WALL�9'R6tf�JWRNAL HfW''Rer+dt/ _ . � �'. �.. . -}�;cr+'.c...:.a: � '�; j •A 3evero Jolt''. - Restoring New York City'$good.name tn.7 The contiauing posa;b�lity-ot default on✓; the credit market� is gioin��o take heroic •� its debi obUgations by NeWC York'�is ot wch�� measures...Potentiai .iendera.: around the.: a magnitude to impact negativelq�.n� ... counaysay:-�And;•at best,tdey=sdd,rehabil � � cial markets natlonwide,,,sars Jack Miller � itation will take mang= months,-.perhapa� , vice president o! the investment diviafon ot .i years.ot good.behaviorx-�= : -; :,:- ' San F'rancisco'a Bank of California: •.Muai- i ..It•a like:an.x�iitaithful wlte.:Oncx she : cipalitiea in general already have�to PeY _� s�rsys, you arorry'about htr Lor:quite some -i mon for their.raoney: pnd a detault would { time no matter what'�she dcea,••says Orson.-.; raise quesLions about the soundness ot aii"� Ciay. seaior via pt�esident ot-American•Na-":� municipal tinancing a� would.be a severe-. tional FYnancial Corp.,:an.instu�ancx�holdin8 j " jolt W all finaacial markets._' ,{ •, ,r s. = company in Galveston, Texaa �. � �' .-- :� Aftiuent St.'.Louis suburbs, tor example,� New York City waa nscned this week�� •�are alread trom the latest in its dreary series:of tinan- ± f . 3`PaY��B more"on their borrovv. " cial er[xs—partly through emergeney loan.sc� ing because .o! New York'a.-'etteet on the � trom the atate.This was part.oi an o�sall+;J lenders' conEidenex. complains'Claeence C. ' Barksdale, president of F'frst National.Bank. ptan pssaed by the ataLe legislature de-.' in S� Louis. He te that Lhe New York signed to-avoid immi�unt.deisult.by�the : � city. Oae action was to set.up a new statr��: troubles •'.will hang over the=.market tor a dominated agency to oversee-the city's fi- < long time; the rescue�by the atate 1s pr�ly: "nances..But poLentiak_leiiden—Hnancial in- i � temporary,•• �; '_, _;c i stttutions both:ta:the city and elsewhere— ' � The New• York� rescue��involved the now ere watcning to see how°well the city � s�u's ��ng i250 miliion Tnesday to� usea the_time it bought,,on•credit�They are cover city needs..The cost ot this atate.bor. � looking.ahead'W new�'daadlines-ovhen the a rowing provided�.clear evidence ot•the ripple:i embattled metropolis.wilL.tace more-multi-� effects ot the city's trouble_The state,Nad W ' � millfon�ollar';obligatlona�thai i[ doeaa t:_! pay a super-high 8.7%on its notes„an esti-•� have the money to meek:..-. ,5 ;,� -� mated T.5 per�entage.pointy gyovc what it �� m g� � a � .. normally wrould have paid. Interest.rates on�:�; The possibility of�fault�atill remains—a s� local government. debts are_.usually low� danger°that• prompted Federal-YReserve-,� compared�with the-costs ot other kinda ot %� goard Chairman-Arthur Burns to reassure� �i'i'a�ng.because�the income to fnvestors-� the nation'a banking�system,ycsterday: He" �s exempt trom tederat taxes ;.�, ,� � said the Fed has,�developed contingenc}F,� Fear ot the Futur�-:=- <-�, � ^ , � plaiss to sid the banks-and :.assure an or- � : � ° ;� ' derly�ttnancial environment"in ttie event of_ ' The high interest rate-�demanded..by � imrestors reflected-not so much the preaent 4 a de[ault.on tAe aity s debt (ae�atory otr-! city burden bein�assumed�b�rthe yt� but:� 3)_--' "`�'� PaR� .; _ � '_ :- the fesr thatadditlonal state heIp'vvilt be�.: Whether such.federal sid:is necessary. needed, according to Ralph:W. Erv1n Jr., y d¢pends crucially on what arould•be lenders•� presfdent ot Fint Pennco-Secur(ties Co., a �i think of the efforts to get the city's tinanCial,i unit ot-Philadelphia's:�First Pennsylvania y aftalrs in,order.Right now these lenders are f Corp. New•York 3tate•"is a strong-tinanctai � far ti'um contident,1Ys clear trorrt talks wlth; entity but it is being placed under�additionf►!.� oftictaU of banks and insurance companies.{ strain, and the quality ot state obligations is 8�ross.the. nation: Banks and• insurance�� being diminished,"_he cautions; = - ,. �x companiea sre the major,hotders.ot exisLing;; � , , city debi`.:' �' .�. - �,, _ Local' bond f§suers from��'wfttiin New-� N�"��the W�' ;�;, ;,-', - ' York�State have'been a1l but`iroun out ot` •'T dodt believe they are at all out ot the� ? the•market, deaters say: In�`early July, foc sa s Bartlett T. Grimes, sentor: , exampte, the New York'State Dormi � woal�,": Y . :i � Author[t was abie to seli onl �y /� ! vi�e president oi Firemen's Fund American:l Y Y i6 million ot� � ' In.rurance.Cos.. a;San Franciscosubsidiary.�j t� �3 million in new notes it put•up foc J- ct •American e-Expresa Co:-,"Unlesa. they.� con►petitive bidding and Aad to pay 1070 on= � really:.make-:�aome' substaririaL�progresa�to j that limited amounGal -•,� � . solve-thelr:probtems;.thia wilt bc.a continu--j . Aiid larga;cities othertha�i?NeMi�York al : l'�`� ing sitnation: AlYthey are doing.�with tiis,: ready are -paying stif[ penalties tor thaY•3 � '� W,�{c'a.borrowingl.is buying Ume and noi:;j city's plight"In late r Mav ,Cteveland in-a very:muchatthat�s`.•��.t.�+t✓.:-s:.... ;� _ . . �� Pleaat Turx to Page 19 ColuinR�� w �� . NAT/ONAt AiFAlRS I ' � `�� HiGH HURDLES � Each month trom now untii June, New York � City's bills will exceed its revenues by amounts JUNE ra�ging as high as $1,364,000,000 in January. ♦��OQ " 'M��'� . ° �. By the end of the iiscal year,the city will have w ,.> ''�'��=- '�' . to raise $8 billion to prevent default. MILLlQN.,,, ; ,�� °� ZpT' ,�; �� _.:., _. ..JA11F:�9� � ��/ "°'g'� . . ��` � ��,±� w, �\ � � / 3�".� lV��"' x`�� ..:,:.� ti �� 3- ' $�' �a p�� tl;Lt0t1[� �'6,$$;.��' '�!1 � ;�I ,f �.. " g �a'c ?�� tirrwonr��r 9 �.s � � �� .$1�.-�, �� ,. ;�7 �� `��`�- . -.-��- �.�tb � �M, 1�,�� ,r�t : �,��,,. �'�� ,3 �� i0(�;�� ; '+o�k�, � " '� ' I u � ,,��o.� :� . x. ,M 3g �� s �: �. � � ►u ��-�-` -�'r- I ,,._ ; � x „ "�^,�; � �� ;: + .� : �� _,..,»n� � ID OOI�pp ister the bitter medicine of debt deferral �f �I ew Yo rk �o�s �u s� and�s�reform."The city has no credit left—it can't get worse," said teachers' union boss Albert Shanker. New York I �A�hatha � Congressman Herman Badillo argued ppensifNewYorkCityfinally wouldmovequicklytoprotectanythreat- that only default and subsequent bank- b V defaults on its massive debts?Until ened banks or financial institutions,ifnot ruptcy proceedings could give relief ' recendy the prospect had been almost as New York City itself.And some speculat- from -the mounting debt service i unthinkable in its way as the unseating of ed that default had already become-so tharges—$1.8 billion this year—.t}�at he i a President svas little more than a yeaz expected, and thus discounted, that it claimed were"choking New York."And � ago. But just as mounting evidence might actually trigger an invigorating Badillo announced that Congressional i against Richard Nixon focused attention roundofstockmarkettrading.Atleastthat hearings would be held next m�nth on on the process of impeachment,the on- was the message ofa�ont-page story last revising Chapter IX of the U.S. Bank- � again-off-again fiscal perils of New York week in�The Wall Street Joumal,which ruptcy Law to make it less unwieldy for ! have made default an increasingly grim also ran an editorial hailing default as big cities like New York to use. probability. By last week, the potential "The Last Recourse" for putting New But default would carry New York into impact of default had become a pressing York's fiscal house in order. uncharted—�nd hazardous�--tertitory. concem to politicians,businessmen and Prka: For a veteran accountant like MAC of�'icials painted a stark pictura in � bankers both in the city and around the Abe Beame, default was simply un- which unpa.id city employees refused to ' country—even as New York officials acceptable as a solution to the city's work,unpaid vendors shut of�the flow of launched a last desperate effort to end problems. Last-week he grudgingly ac- vital supplies and--welfare recipients � their fiscal nighhnare. cepted a further reduction of his official went hungry and homeless. Court ap- i All week long, Gov. Hugh Carey powers demanded by Carey and the big pointrnent of a private trustee, warned ' waged a tense tug-of-war with the city's New York banks as the price for a jury- MAC fiscal whiz Felix Rohatyn, would i much criticized mayor,Abraham Beame, rigged $2.3 billion plan to keep the Big "decapita.te the political process. i a ballcy state legislature and the powerful Apple afloat through November.Even if There d be an irreversible exodus of financial commuaity—trying to save the plan were to opezate successfuily, business from the city."Said an attorney� i ' 1\ew York by placing it in virtual receiv- however,there was no guarantee that the with long experience in the field of j enhip under a state-dominated Emer- Municipal Assistance Corporation or the bankruptcy: "You're letting yourself in gency Financial Control Board. For all city could then return to the bond mazket for years of litigation and$ppeals:'With- I the politieal pushing and shoving,how- to finance the remainder of an anticipat out a clearcut, modemized municipal ever,there was surprising disagreement ed$6 billion deficit this fiscal year. banlavptcy law, he said, the legal and I on just how serious a default might . Supporters of the plan hoped that practical problems would be endiess. � � actually be for the city or for the rest of three months of lean and fiscally Some of the key questions: _ I the nation.�tew York's continuing fiscal sound—operahon under the new board's Do bondisolders have fsrst call on any i crisis had already cast a lengthening control would.draw help from"sophisti- available�ily revenue?.The bonds them- shadow over the sale of other state and cated"investors,or perhaps the Federal selves contain that guarantee, and City city bonds;last week officials in Adanta, govemment. An increase in the h�ansit Controller Harrison J. Coldin agrees. I Hartford and Detroit complained that faze (to 50 cents) last week—sparldng But City Corporation Counsel Bernard they were forced to pay higher-than- only token protest was to be followed Richland has said that vital senrices-.• normal interest rates as a result of the by still more highly visible economies.If firemen, police, garbage collecting: fiscal ripples from New York.Md there the bond market's well remained dry must continue at all costs, and thus • � �vas concern that outrlght default—,a fail- nevertheless,MAC also proposed a spe- would be paid for first In the thousands I I ure to redeem some of the billions of cial banlmiptcy plan that would permit a of municipal defaults that have already � dollars in outrtanding city obligations--• state court to protect the city from law- occurred in the U.S—mosdy in the i might paralyze the municipal bond mar- suits for 90 days, maintain vital munici- 1930s—vital services were always main- I ; ket completely, undercut the counhy's pal services and stretch out the city's tained in some fashion and most bonds I basic credit system and even prompt a burden of debt over several more years. were eventually paid off in full. A 1934 Depression-style run on the banks, a , It was that aspect of default that was default in Gerald Ford's hometown of I I number of which havC invested heavily clearly most attractive to its current Grand Rapids, for example, prompted a � in New York bonds(p+�8e�). proponents--the opportunity to hand the court-ordered moratorium on debt pay- But many experts predicted that even city's fiscal mess to a judge who could ments—and the State of Michigan took � the fiscally cautious Fnrd Administration presumably rise above politics to admin- over city welfare costs. But during the Newsweek,Septembar 15,1975 27 I _ , 1 � . _ . _ .._ _ ,.,�./� _�=:-�^�'�- __ _. � . � /' • . . .' � ,. 2��w��R NAT/OMAL AFFAIRS • ' • �/�� " �' in saari&ces," said another "That was the stazt of bull markets in both" ` � ,�ppy�(ipWN�8R0�(tm T�IVS S union o�'icial. Besides, he bonds and stocks.One has to know how --- . conceded, many workers much default has already been dis- �z_�;,�,� .:�� - ' might feel that partial pay- counted by sophisticated institutional in- ment was better than none. vestors.It could be a great opportunit7'•� Wha!would the banks do? Despite that bullish possibility, the With an estimated $1.5 bil- city's crisis seemed to trigger a new . ,'. r ?�-,, � lion already invested in New mood of concem in Washington last ..v�� - York City and Big Mac week. "I sense a significant change," � .�.�" ' ' bonds,the banks were appar- said New York's Republican Sen.Jacob _ �'• ently resigned to waiting as K.Javits.Md House Speaker Casl Albert many extra years for their promised to support legislation helpful , money as a court might or- to New York, although no Snal action f der—especially if the court was likely this year. also mandated a sirict finan- The Ford Adminisbration was still ; cial plan whereby the city holding to its policy of nonintervention. I -reduced its spending and Top officials said that no specific request , �adually paid its debts. for aid had yet come from the city,biAC � �,;��;= The banks were also ex- officials or Carey, who met last week � . ,� pected to show compassion with the President himself.At weekend ; : '.'��.� for municipal employees meetings with Vice President Nelson i who are their depositors. "I Rockefeller and other Ford insiLlers, � t;. , � Na;_; think we'd make a decision however, New York Republican leader � �j � �: �� to cash a paycheck and hold it Warren Anderson launched a last-ditc� � EXEF as a claim against the city," effort of his own for Federal assunnces -, � said Greenwich Savings to prevent default. Bank vice president Freder- Meanwhile, a special .task force ick Gillam. Principal pay- headed by Secretary Simon had begun ! ments on mortgages or monitoring developments in the city j : school loans mighc also be and preparing "damage control��pl� � � deferred, although interest against the default they appare y � could still be collected sumed to be inevitable.The preliminary j Token protest:Would new fares impreee inveetors? Federal Reserve Board - pacl�aSa, contained modest cash ad- � chairman Arthur Bums— � vances to the city and proposals to ease 1970 financial crisis in Hamtramck, who has refused to guarantee city municipal banlQUptcy requirements. ,' vlich., municipal employees actually bonds—said the Fed would shore up the Simon heatedly denies the charge— worked without paY w1►i1e city fathers-- banks' liquidity by lending them cash made by many New York Democrats-- i under court order-�disbursed$60,00�ia against solid but hard-to-sell securities. that the Ford Administrafiion favors the bond principal and interes�pa ymeno ��k�ble loss,'8said one,Adminr Democratic lt incompetemnceC Indeed, I "Even welfare miSht P tY over bondholders; said bond dealer ishation expert, but he felt such losses members of the Simon team have a Ryland D.Chase."It was called the dole. were unlikely.'Still, those financial in- conspiracy theory of their own: they when Detroit defaulted in tt►e '30s, but stitutions that had underwritten� city � suspect that Mayor Beame will use de- !, even those payments Preceded pay- issues were vulnerable to lawsuits by fault and some form of bankruptcy pro- , ments to bondholders:' purchasers stung by default—and ceeding as a platform from which to i Can the courtJ ajtet'exss=;ng contracis among those who might be ��,. � with bondholdera.+�*►d°r�and uniantP worried on this score was ,�� h;''. ' ' The question could So all the way t°the Tnas"n' Secretary William � j Y �';'. Supreme Cowrt. Some experts believe Simon,for-years the munici- •� - . t h a t o n l y F e d e r a l c ourb h�►�e this power pal bond expert at Salomon - � '�� ` * I_ under the Constituhon, but others cite Brothers in New York City. - `-��'`.� ;��. ;;�� ..�-sr ;#i - - x�, . Depression cases suggeating that state � Now would de.fault affect �.� � courts, too, could order the deferral of ths nation at large?Even the� �'�`�x`+-�'; � � . •g< a v;��, ti r � payments as long as the full sum,includ- enpests in those cities whose ,�tl,t ,.,,, � ��"� �• ing interest, eventuallY was to be P�d bond .sales have not been� �. � �" •� _` � off.'Whether the cowts could alter exist affected by the New York . �� ,� �;a� v n e o f t h e c i ty's c r i s i s c o n c e d e that a default . � �""" � � f� �� ing pensio�prograrr►s--o ,�`. *� � � �. tb�; �+ • r greatest burdens--��so unclear. could chill securitles mar- � �'°�� „- � + ��hat would the munic�pal unions do? ke�s. It would make borrow-� ��'��^�� - �__ , .>�'�F ''' '�"=`��.-;�" '� �� ' "If a worker works, he must be paid," ing more difficult for a l l �� '� , , ' municipal union spokesman Victor Got- states and cities,and cut the '�! �/�: 1� � ��I•�-11`,�� .� !r F '\�ti�i�`e`��\�f � Y �"AY q �' ., �, N.. baum likes to thunder.But Gotbaum also number of capital projects l� �7I�(�`` ,`` K �� 'x, y �` says that delayinq paYchecks for a week that could be undertaken. ,q � ,\�l�,�� `ti _�; �a� �. ` �; ;�� here or there "as Part af a solid plan"— Beyond that, some believe, ';; q r/��;'��ti`1\��1�`� � � � the ci 's irre lar the devaluation of New York `� j� ?��`��,� � ��'';� '� and in line �vith tY �' ; 'z# ,��jtj�tiit� � ..�� _ , , � ,r � income pattem--WOUId be "no prob- bonds held by financial insli- t r,,,,� .,» ,x,r � _,��"`�x w+� lem." Court-ordered pay cuts, on the tutions and small investors ,��1 �7��+��.+►�� , .�, a r. o t h e r h a n d, w o ald be "worse than not would have a ripple effect, „ti�+`S,' �� Y�,�Y j ' � �`' a 'n a t a l l" he �+�s. Yet Gotbaum re ducing t heir va lue a s c o l- !�� , ,> -e-� P Yi 8 • ,�;,''=;C',;s�,�� ,� � himself helped to work out the "wag e l a t e r a l an d thus threatenin g a �}y` �-� �,�i. ,^�� Y�� freeze" under which city unions agreed variety of investments. ,+ ' �, � ,, - '` ,�� - ,�� "�- . � to defer part or ull of a scheduled 6 per �� Other ezperts disagree. � * . -,�,,' ,.�- ,. _.. ; �: � .� .� '.�: cent pay increa�e for three years. The Remember the Penn- . --- ��,,,ti�,t,,,,,,,N.,., . key to the whola �n8 is a cleaz sense Central debacle," says one that workers aza no!the only ones mak- leading New York broker. Carey(left)and Rohatyn:Teeterin5 ae the brink � .� . l�ewsweek,Septesnber 15,1975 28 . . • ' � THE WEEKLY BOND BUYER . • � ` , September 8, 1975 ' � .,,;c y , .�, �:�,,..,. , ., ; .r'.} '.� a".�'. '� . ': ;+ .-.:� - }^ �.�;,�� -5' � :� �rr��nr��o�;1l�eek�tY�rrrL.r�E�pa��ssues. .. .� (. _ �'� .11 'f �',��.�.,µ,�, :�.5.�..'� �\ ^� ,'Li t � �r M .� L:.S{ y. . . . f �ejri:iR �: �t� �y'a�.:+vRC"W!�.�� . � y u�4T r .r'-'k'a.,y.?�'E:.f` 1- � . _ -- -r�:nev�assaereseeto�it-wa�atnctIp;,�a�wee�+.tor negotisted"deals'A` � sy�d'xCS�jQiIIt�jtIDa�ngSedby Bt�t�,Esst�ts '�t�o�dtCb.i;�l!!Ce#7Cf11�Y?�Chr . y; ' . f J�`.. �L:hq:� �'. � W .. .. 1c. P1CLt��@nII6L.��►Smi�II . . • jy�� _ , �^ . w ..:...5'! � ..��4;..r,•.�,av�t . y ti�+"'�'„^'�'��'. 7�i�'.r'' , � . � ��.'G`o�¢'7a�Iisteb�Bsebe�-&'�Fn��Iiit Weld-'d:r Co:,.Inc;'snd S'iidd�Er;:P�'sbod�d�'"'`Co'�a��:w s�' � ,M '�;;�"�_.• .. x ., DD@f�IID� " �lC.�.��OJ$a,IIIIC�E�M � �� II��ty'. 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'��`Aut1i;,,Ctilif:,:.��-�'"��`��;I;F"a�.`�Umtecir$ah��1�- r�-�4�9"�5��b66'- � �`��Vest:Neww3..Yorlc:SD,_N.J 1,2d1�'`-Nnaesna�" _�-' �$ '712��7�= � �'/."±>yf�{T�yp�� i��is�..��r�r.`?.r�ct _i...+ `�.��."Qr`�a.t.�.W"��S'.,E.►L�T1 "'.'�#+�r'b:Y?�'�� ...i_�,.Y,'� A�tlJ�jrM+r+++�'��J'aL��Yir_.-rir.C.i'�"'o•�`..R.r_7xLd�'�!�� .~.y�',�::��.{�'C" �� 'f='� .i ti� `��s.��;aa:.:..:��:�4Q-�Bidc#e��'_e�►�3Cr,e.�..esryc:�-a •r$'.k29�" '� rw+�.pvG� 1 . � "�:..s��rwxf••;•y�.'siGJL',.>.,��c'.S�Y"�f,ct' �'ryYTr .Y.f.T'�"'�t`.rT^Ll:�..-. „s� �=ti�:�- � � '-�iegattia aale � ` y -"` �� 3 tedr L`x�.: s��, � '�-�. e : C�a-�r�t�r?S y.i� /" �� J— NA-C'ost�noC avadabie..• �:� ,� t�''t Y"' � �.w__-.�,�.`s�-� �;,,v. � . _.�_.fi.r�.��v.�i�sg,a�'s'�.?'��'v��.L`�'w�.•�.a"'r.4r�s��.-.4"._...�hr'.�Yar;.��..�:4�"1!'r.��._ � � . � THE WEEKLY BOND BUYER � September 15, 1975 � , 1 .r�« .r t r Y a- � _y��7s ; t _ � �... Y:.�..a � � `� ' :� : r � .-� . - . -� � _ � � .._. �,r�,�ci�y�of;V�l`,��ek�.s��,M'�in�cip�r� 1ssu,es �ri�ti�a ' •�i�=iais.�ts�L �a:��•Q".Ft#�'�'iat�•(!Pii��Wfaa.•d.--`r�7�a��"� ,M+�� ' 'In the week's�la=gest competit�ve o�e�g_the State-of Coanec�iicu�rated=� :.triple�A'.nb3+a�boaY�"'.aridt,�'ou�le�:"'�+"��y�lStaads�"&�oos'.�paid::an.NIC:. oi'6.'1684:'on its'�orsowm&-b�"�Y00`m�lida'�"viY'iaitli•'aad`'-crediL�'�aads.�� It ,i =Was tlie second;hi�hest�cost iii=�tl�e,histosq of:�the�$tate, �PP� oaly by tha� 6.8833,5 TTICfnearred.back aa�gy��1.�;�970 Q�s;��tioa:genez�al`:obhgation,;� fiIIBDCIn$•' ' � '', * '��.. ^ i:�y. �y. i,-'.' r " sa.rr+ta,..� 7.-.. sp,� ... .The issue,.�vas�.bid�ia,by a,combiaation,:oi4foas.�iidding,accounts.:with.two�, of the groups merging'with' two.�thers.to�,produaej;-.tha,.:win,ning;;bid.,.-As:.a ; result.there�rere;:only;L�ww�.competitive�bidaxrecei9ed.:rathe�tthan�eShe?:�thr�: � OIlg1Il8�p"'$]Cp6Ct8E�w _�!,^.�'.• •1 {' .. �:'4"'4�S�,c^�: c� t,: ..`'t "{5tL ".. _-•The;winniagL�ndcrsv�itin�teaea�-:oompriaed='a�°spndieate�joistly.�msuagec�-� � bp••Fizst.NationaL GitpcBaak;;.:F.ehman�Biothess;;Inc;_Bal�e'Y..'Stva=t_:&_Co--,^- Inc:, �Philade�phiar:•I�Fatione�?�+Bankf-Weederi:`&;,Cpy 3nc:,'an�•�re�al Bank,-:`. bidding in associatio�-wit�a==grovg�co�managed by:Connecticnt.Bank..&_,1Yust�: Cos anc�•Banir•b!•�Ameriea,-',��imthex�associstic�,with.atkaccount•�ed.b�,Chasa-: Manhshtan $snk;si�-�nal�p=ia aa�oeiatioa..�5ith.s�i twa.h?►r�ded-.accowaL com=�; prising�Ham�1Yttst.&:.3aviagsr$mmk.an��Coni3nenta,k IIlim�+:iYstiana1;Banj4:� e. at r„�,..� �:�s •, . . BL.TIII3t��i0.- �� ..�.. � �;....y ti,r.-r,t-'t �,�:. ,. �x.�C�i�2.,.'''.ii'--jY '?�-�i�.'�--�n.��''y�`.,.'. �._The seeond aadon7y.othe�bid ca,me•in�at•a�►�i1Il�G.a�"6�m:an:acconnt : jo�tly:�ansg�-�i'y`�3ankers:l5o�.s�:,_Cd,,:Ssleiaon'��ibtl�re�B�6rgaH-6usianty':; 1`iust�a-►.E3rst:Al�t;iA*i�1�i�_��So;Norther�'I`ri2sl�Fo.�f'e!r's�FI:yndr;�' �Pierce,,.�'easesi&.Smi�h;;,Iac:�:S.,cMorton;�'�F>o::�I3i�isionZof-=Acmericaa-�• 'brp�esrGb..�;;;jJaalt�dn�t��,+'Dan'sldsoa;L�an&=�enrrtte�'8ecurities��= =Cosp:,:3..��^�►+�•;��.��Fir�t.�istional=Baalc�m`DalIas;Toka Nnveen:&:�; ��o.,�Ine.,:Loeby:S�ad+e��6O•'�oJ+ind�G�aekqr'N?1��,8a�i.;'` a .�' �`=�:: w s..r • ..�.'"84��i`.�`1��- � 7F :fs_c.�Beo�esin�s'syiaidsiiaai=�ran8e�fromp4�20�-7�xX��t'�& A�?t��o,.6.?5f�� iri�29�:San�r�iir�198f�were�offeseii at a b.OS,S�ietnr��.�(k*�ea�nextarit�;� c�me.a�a��ie�d'�ol�8:80yI�'YS'a"��5.30'J�'ietasnr�?ass.P1_ss�;oa:.1Wea��'-mstnrity'�;'� ' .Tlz�=yietd.r+ wdie�aiSniS�ant1Y'��i�her:tl��clhoa�;io�aa�yv��Ie��==.stat� �names'to zesch,tbs`=market-�ia",yea%:aa�:sseioinlpsaiahade�s�owentha�r�th�� -zecord.long-term yieTda.`ieacheik7 in•�B�ay,r-1970:��►$75?-�illioa�dosble-"A'='` Lomsiaaa =bda�s�v►eie-bid;rai�a-�syadicat�joiatYp insaaged=by�'�irs�Nationaf-t Citg'Bank�ancYBaisep;Stasrt'Bt' Co=�`Ia��l�ate:of�Bache �Cd;:Ine:;':�tTi" as'sociation'tvi�3S'aa�.accoun�.iointly.:.;nangSed`.kFal.�st.8o�ton Cozp;;;;:Ban�of:. 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'�!�',a,L..�. -�"ti .n�.,,..�s�el�`�r'�s+.Ct��$J��Ya'�'�a��R 1 'NA Cost not available. _ •,:�.. :' . _.-�--•ti.,y.��,,,_ _S�� . . . ., . � .. ��k r-:-•�'-.._. . . c, . , , . - • - �CSU�uLion No. • • � , 1975 • � ' � PORT AUTHORITY OF THE CITY OF SAINT PAUL RESOLUTION PROVIDING FOR PUBLIC SALE OF $2, 250,000 GENERAL IMPROVEMENT BONDS, SERIES I BE IT RESOLVED by the Port Authority of the City of Saint Paul that it is determined to be necessary at this time for the Port Authority to issue and se11 its Ge�:�ral Improvement Bond.� , to be designated as Series I, in the principal amount of' $2,250,000, dated as of December 1, 1975, as r�ecommended by Resolution No. 904, of the Port Authority of the City of Saint Paul, adopted June 18, 1974, and as authorized by Ordinance No. of the City of Saint Paul, which became final on , 197 , for the acquisition of property and other purposes in furtherance of its program of port and industrial developmentt that the form of Official Advertisement and Notice of BQnd Saie presented to the Authority and incorporated in the minutes of this meeting is approved, and the Secretary is��directed to cause the notice to be published forthwith in the St. Pau1 Legal Ledger, the Commercial West, the St. Paul Dispatch or Pioneer Press and The Bond Buyer, that each and all of the terms and conditions for the sale thereof set forth in said Official Advertisement and Notice of Bond Sale are hereby adopted and con- firmed as the terms and conditions upon which said bonds sha11 be issued and sold, unless a11 bids are rejected pursuant to the privilege. therein reserved by the Port Authorityj that the Execu- tive Vice President or one or more officers designated by him are authorized to receive, open and tabulate the sealed bids which, in accordance with said Official Advertisement and Notice of Bond Sale, are to be received at the office of the Port Authority of the City of Saint Paul �until 12:00 o'clock noon, on Tuesday, November 18, 1975f that the Executive Vice President is directed to present all bids received to the Port Authority at a special meeting to be held at 2:00 o'clock p. m. , on Tuesday,. Novemb�r 18, 1975, together with the good faith checks securing said��bidst and that the Port Authority shall at said meeting consider the. bids presented and take such other and further action with reference to the issuance and sale .of said bonds as shall then be deemed necessary and expedient. Adopted: , 1975. President Port Authority of the City of Saint Paul A�test: Secretary EXHIBIT VIII, Pacfe 1 (SEAL) ; , � . , . NOTICE OF BOND SALE $2,250,000 GENERAL IMPROVFM,ENT BONDS, SERIES S PORT AUTHORITY OF TAE CITY OF SAINT PAUL SAIPIT PAUL, RAMSEY COUNTYo MINNESOTA NOTICE IS HEREBY GIVEN that these bonds will .be offered for sale according to the following terms: , TIME AND PLACE: Bids will be received until 12:00 o'clock noon on Tuesday, November 18, 1975 at the office of Robert Sprafka, Executive Vice President of the Port Authority of the City of Saint Paul, in 3aint Paul, Minnesota and said bids will then be opened and tabulated and wi11 be presented for consideration to the Commissioners of the Port Authority at their meeting to be held at 2:00 o'clock p. m. on Tuesday, November 18, 1975 at the Port Authority Offices, 330 Minnesot� Building, Saint Paul, Minnesota. ' TYPE OF BONDS: Negotiable coupon general obligation bonds in the denomination of $5,000 each for which the full faith and credit and taxing powers of the Port Authority and of the City of Saint Paul are pledged. DATE OF BONDS: December I, 1975. � pURPOSE: To acquire and develop properties in furtherance of the Port Authority`s program of Port and Industrial develop- ment. INTEREST PAYN�NTS: December 1, 1976 and June 1 and December 1 thereafter. , . _ MATURITIES; _ _ __ , December 1 in the �ears and amounts as follows: $ 75,000 1978 - 1992 1,125,000 1993. EXHIBIT VIII. Paqe 2 i �, � f � � REDEN�PTION: At the option of the issuer, bonds maturing after December 1, 1985 shall be subject to redemption and prior payment, in inverse order of serial numbers, on Dece�nber 1, 1985 and any interest payment date there- - after, at a price of par and accrued interest. PAYING AGENT: May be named by bidder subject to the Port Authority`s acceptance which " w.ill be assumed unless the bidder is notified within 24 hours after the Port Authority has been advised of the proposed paying agent. The Port Authority wi11 pay customary charges. DELIVERY: 'Within 30 days after award subject to approving legal opinion of Measrs. Briggs and Mort}an,- Professional Association -of St. Paul, Minnesota, and Messrs.- �eterson & Popovich of St. Paul, Minnesota, including customary closing documents. Bond printing and legal opinion will be paid by issuer an . delivery will be anywhere in the conti- nental United States without cost to the purchaser. Legal opinion wi11 be printed on the bonds at the request of the successful bidder. Payment must be made in Federal Funds or equivalent immediately available funds, on day of . delivery. CUSIP NUMBERS: The bonds will be printed without CUSIP numbers unless requested by the purchaser who must agree in the Offer for the Bonds to pay all costs and expenses _thereof -including printing and CIISIP=Servsce- Bureau charges. Any failure to print such numbers or errors in printing shall not be �ause for failure or refusal of the purchaser to accept delivery of and pay� for the bond in accordance with the purchase contrac The purchaser shall waive any exten- sion in delivery time due to use of the numbers and shall accept all responsi- bility in connection with use of CUSIP numbers. EXHIBIT VI II, Pac�e 3 � , ♦ ' •�� , ♦ TyPE OF BID: Sealed bids of not less than $2,205,000 and accrued interest on the principal sum of $2,250, 000 from date of bonds to date of delivery must be fi.led with the � undersigned prior to the time of sale, together with a certified or cashier' s check in the amount of $45,000, payable to the order of the Treasurer of the Issuer, to be forfeited as �liquidated damages, but without limitation of issuer`s right to additional damages, if bidder fails to comply with accepted bid. Checks of the unsuccessful bidders will be returned as soon as the sale of bqnds is awarded. Bids for the bonds should be addressed to: Robert F. Sprafka Executive Vice President St. Paul Port Authority 330 Minnesota Building St. Paul, Minnesota 55101 and marked on the outside "Proposal for General Improvement Bonds, �Series I." RATES: All rates must be in integral mult iples of 5/100ths of 1/ and may not exceed 7/ per annum. Additional interest coupons may not be used. No limitation � is placed upon the number of rates which may be used. Al1 bonds of the same maturity must bear a single rate of interest from date of issue to maturity. No rate of interest payable on any maturity of the issue may be more than 1/2� lower than the highest rate of interest payable on any of the preceding matu=ities. AWARD: Award will be made on the basis of lowest dollar interest cost, determi.ned by addition of any discount to and deduction of any premium from the total interest on all bonds from their date to their stated maturity. The net EXHIBIT VIII, Paqe. 4 � , . - • . effective average rate of the issue may not exceed 7% per annum. The issuer reserves the right to reject any and all bids, to waive informalities, and to adjourn the sale. Dated: September 16, 1975. BY ORDER OF THE PORT AUTI�URITY OF THE CITY OF SAINT PAUL , /s/ Louis H. Meyers Secretary Additional information may be obtained from: PETERSON & POPOVICH ' , Port Authority Bond Cons�-ltants 314 Minnesota Building St. Paul, Minnesota 55101 612-222-5515 - EXHIBIT VIII, Page 5 � . _ � ' . , � .� ST. PAUL PORT AUTHORITY HISTORY OF PAST GENERAL OBLIGATION SALES Amount Series Date Date Index Received D�fference of Issue of Sale $2, 500, 000 A 9-1-61 9-6-61 3.54 3.48 .06 2, 50�, 000 B 4-1-62 4-25-62 3.06 2 .93 .13 2, 500, 000 C I2=1-62 12-11-62 3.11 3.05 .06 2, 500, 000 D 6-1-63 6-18-63 3.20 3.17 .03 � 2, 500, 000 E 6-1-64 7-28-64 3.16 3.21 ( .05) 1, 500, 000 F 6-1-66 7-19-66 3.98 3.93 .�� 2, 000, 000 G-1 3-1-68 2-8-68 4.16 4.25 ( .�9) 2, 500, 000 G-2 2-1-69 1-9-69 4.85 4.82 .03 2,650, 000 H 1-1-71 1-12-71 5.74 5.41 .33 EXHIBIT � , , -� • . • ` + , , Minnesota High Quality Sale Results (A-1 - AAA� Net Date Issuer. Ratinq Amount Maturity Rate 9/g/75 Minneapolis AAA $ 9,385, 000 76-85 5.23 � 9/9/75 � Minneapolis AAP, 4,010, 000 76-95 5.98 ' 9/9/75 Minneapolis AAA 200,000 76-95 6.49 9/9/75 Minneapolis S/D AAA 5, 100, 000 77-85� 5.37 8/25/75 Bloomington A-1 2,500, 000 76-96 6.40 8/25/75 State of Minnesota A 8,000,000 1985 6.80 Higher Education Coordinating Comm. 7/28/75 Albert Lea A-1 385,000 78-89 6.01 7/10/75 West St. Paul A-1 1,080,000 76-87 5.78 '7/14/75 Ramsey County AA 3,030, 000 77-90 5.88 7/14/75 Duluth A-l . 1, 180, 000 77-91 6.03 6/23/75 St. Cloud A-1 1, 700, 000 78-97 6.58 6/23/75 Roseville A-1 850, 000 77-95 6.53 6/23/75 Roseville A-1 1,130, 000 77-95 6.50 6/9/75 Red Wing AA 1,525,000 77-86 5.5i 5/28/75 Rochester AA 2,010, 000 76-82 5.19 5/6/75 Wayzata A-1 81, 000 78-86 5.68 5/6/75 Wayzata A-1 250,000 76-86 5.68 5/6/75 Minneapolis AAA 600, 000 76-83 5. 19 ' S/6/75 Minneapolis AAA 13,400, 000 76-83 5.19 5/6/75 Minneapolis AAA 1,265, 000 76-95 6.14 5/6/75 St. Cloud A-1 4,650, 000 76-87 5.87 5/14/75 Richfield A-1 4,600, 000 78-97 6.58 4/22/?5 Red Wing AA 1,525,000 77-91 6.03 4/22/75 Red Wing AA 820,000 76-94 6.03 4/22/75 Red Wing AA 755, 000 76-90 6.11 4/15/75 St. Paul AA 1, 310, 000 77-87 5.51 3/18/75 Freeborn County A-1 1,450, 000 76-85 5.25 3/�/75 Minneapolis AAA 3,000, 000 78-88 5.40 3,%^/75 Minneapolis AA.A 7,800, 000 83-93 5.88 EXHIBIT X r��<�� . , .� . � .'. , , � August - September, 1975 Selected Sale Results High Grade Issues Issuer Rating Amount Maturity Rate ' Scal.e Minneapolis, City AAA $ 9, 300,000 76-85 5.2 4.1 - 6.7 AAA 4,000,000 76-95 5.98 Minneapolis S/D AAA 5, 100,000 77-85 5.37 4.33 - 5.6 Knoxville, TN AA 9, 000;000 76-95 7.29 4.50 - 7.375 Forsyth County, NC AA 7,500, 000 77-98 6.012 4. 3 - 6.75 Toledo, OH AA 5, 105, 000 77-96 6.421 4.75 - 7.1 Madison, WI AAA 3,500,000 76-85 5.251 4.00 - 5.5 Orangeburg, SC AA 3,000,000 76-95 6.80 4.50 - 7.2 Kane County, IL AA 4,500,000 79-94 6.47 5.00 - 6.9 Connecticut AAA 100,000,000 76-95 6.16 4.2 - 6.75 Louisiana AA 75, 000, 000 76-00 6.46 4.2 - 7 Macomb County, MI A-1 5, 900,000 76-00 6.69 4.5 - 7.9 � Sussex County, DE A-1 9,600, 000 76-05 7.43 4.5 - 7.5 Florida AA 28,500, 000 76-96 6. 74 4.4 - 7 Hawaii AA 75, 000,000 78-95 6.45 4.8 - 7. 1 Colorado Springs, CO AA 6, 000, 000 76-95 6.47 4.25 - 7. 1 Austin, TX AA 26, 000, 000 77-00 7.29 6.5 - 7.5 Oster Bay, NY A-1 9, 100,00Q 76-95 7.25 5.4 - 7.5 Mt_ Vernon, NY A-1 4,500, 000 76-00 7.23 5.5 - 7.5 Jackson County, MI AA 6,000,000 78-03 6.43 4. 7 - 7.5 Houston, TX AAA 25,000,000 76-95 5.79 3.9 - 6. 3 Tredyffrin Municipal Authority, PA AA 4, 350, 000 81-00 7.00 N/A Los Angeles County, CA AAA 10,000,000 78-95 5.93 - b.2 Florida AA 6,900,000 76-04 6.53 N/A Pennsylvania A-1 150,000,000 77-95 6. 7 4.8 - 7.25 Sacramento, CA AA 5, 700,000 76-95 6.04 N/A Lynchburg, VA AA 8,400,000 76-95 6.315 4.2 - 6.9 Maricapa County, AZ AA 14,800, 000 80-83 5.75 N/A Frederich County, MD . Metro AA 4,500, 000 81-05 6.79 N/A EXHIBIT X, Page 2 . 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00000 �'1 N n � N 1 1 I d� O� 01 01 01 01 01 0� O� � Q� dl d1 � � rl ri r-1 r-I r-I rl r-i �-1 N N • � N � � a � f4 �y � {�} � � y p O O O O O O O O O O O O O O O O O O O O O O O O O O O O O aJ p I I 1 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O ,.� ,ap 000000000000000000000 O 000000000 O I: t I . . . . . . . . . . . . . . � . . . � ,a 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O �-I �1 t11 CO OD C� C� CO 00 00 C� CO CD �D CA � CO CD �0 CA CO � � � � � � � � � �l N z ,N N N f0 N V?� �' �'r •V� � � ,_..� O O O O O O O O O O O O O O O O O O O O O O O O O O O � � O O O O O O O O O O O O O O O O O O O O O O O O O O O � ,�, o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o a o 0 0 0 o i . . . . . . . . . . . . . . . . . . . . _, . . . . . . o • ° `� 000000 �n �n � 000 �n �n �n �n �n �nooa � ou, �nu, u� � ►n H � N M d' tll l� d1 M tf1 lp � d' lfl rl N t11 l� Ql � t11 N � -O N N N N Lf1 � fn l0 l0 l0 l0 t0 l0 l� I� [� � � � �1 01 al d1 d� � l0 t11 l+7 MI M C�1 N r-I r--I M � N � �.F„� e-� N .. � � N 01 N�- S-I a � t11 �D l� 00 01 O �--I N c'� d' tf1 l0 t� 00 a1 O .-i N M d' � t0 l� QO Ol O r-I N M �t' t(1 (f3 ' t� h t� I� t� 00 CO CO Ca � CA � QO Q� 00 Q1 Q1 01 � O� O� �1 d1 � O� O O O O O O -1� � . , d� 0� a'1 6� O� �1 a1 G1 d� 01 O� 01 61 dl 01 dl d� � 01 Q� (31 0"t d1 01 a1 O O O O O O O ' '--I r-1 r-1 ri r--I � �--I rl r-1 �-! *-I r-1 r-i ri r-I r-� ri r-I r1 r1 �-1 r-I •-1 r-1 r'I N N N N N N E� St. Paul Port Authority General Obliqation Improvement Bonds Principal Series F Series G-1 ' Series G-2 Series A Series B Series C Series D Series E �1966) (1968) (1969) �1961) (1962) (1962) (1963) (1964) 2 , 000,000 $2 , 500, 000 ir -�2 500, 000 �2 , 500, 000_ �2 , 500, 000 �2 , 500, 000 $2 , 500, 000 1 500 0 0 � Net 3.05°/ Net 3.17% Net 3.21% Net 3.9 3% Ne 4.2 5% N e t 4.82% N e t 3.48% Net 2 .93% o 3.25% 64/77 2 .75% 62/72 2 .75% 65/72 3. 10% 66/84 2 .75% 67/68 3.90% 69 92 4.10% 71/87 4.80% 71/9� 3. 50"/0 78/87 2 .90% 73/86 3.00% 73/85 3.20% 85/87 3.00% 69/76 4.00% 93 96 4, 3% 92/94 4.90% 93/9� 3.60% 88/91 3. 00% 87/92 3.10% 86/88 3.25% 88/93 3_20% 77/88 ' 4.40% 95/98 3.20% 89/92 3.25/0 89/91 3. 30% 92/94 g�l 5/1 12/1 6/1 6/1 6/1 � 3�1 2�1 $ $ $ 60 $ $ $ $ $ 61 62 63 64 50, 000 �,5 60, 000 50, 000 50, 000 66 60, 000 60, 000 60, 000 50,000 6� 60, 000 60, 000 60, 000 60, 000 50, 000 68 60, 000 60, 000 60, 000 60, 000 60, 000 30, 000 69 60, 000 60, 000 60, 000 60, 000 60, 000 ,'70 70, 000 60, 000 60, 000 60, 000 60, 000 30,000 50, 000 75, 000 ,71 70, 000 70, 000 . 70, 000 60, 000 60, 000 30, 000 50, 000 75, 000 �72 70, 000 70,000 70, 000 70, 000 60, 000 50, 000 75 , 000 ,73 70, 000 70, 000 70, 000 70, 000 70, 000 40, 000 �74 80, 000 70, 000 � 70, 000 70, 000 70, 000 40, 00� 50, 000 75 , 000 ��5 80, 000 80, 000 80, 000 70, 000 70, 000 �O��j 50, 000 75 , 000 i76 f30, 000 80, 000 80, 000 80, 000 70, 000 � 50, 000 75 , 000 ,�� 80, 000 80, 000 80, 000 80, 000 80, 000 40� �r'�' 50, 000 75 , 000 ��g 90, 000 80, 000 80, 000 80, 000 80, 000 40, 0�� 50, 000 75 , 000 �79 90, 000 90, 000 90, 000 80, 000 80, 000 5Q� uG� 50,000 75 , 000 �gp 90, 000 90, 000 90, 000 90, 000 . 80, 000 50, 0�� 75, 000 75 , 000 )81 100, 000 90, 000 90, 000 90, 000 90, 000 50� �� 75, 000 75, 000 )82 100, 000 100, 000 100, 000 90, 000 90, 000 50, 000 75 , 000 75, 000 �83 100, 000 100, 000 100, 000 100, 000 90, 000 �84 110, 000 100, 000 100, 000 100, 000 100� 000 60,00�7 75, 000 75, 000 385 110, 000 1I0, 000 110, 000 100, 000 � 000 60. 000 75, 000 75 , 000 �86 120, 000 110, 000 110, 000 110, 000 100, )g'7 120, 000 120, 000 120, 000 110, 000 110, 000 60,OO�J 75 , 000 100, 00Q �gg 120, 000 120,000 120, 000 120, 000 110, 000 60, �a� 75, 000 100, 000 �g9 130, 000 120,000 120, 000 120, 000 120, 000 70, G0� 75 , 000 100, 000 �9p 130, 000 130, 000 130, 000 120, 000 120, 000 70, COi� 75 , 000 100, 000 a91 1��, 000 130, 000 130, 000 130, 000 120, 000 70, OOJ 75, 000 100, 000 �92 140, 000 140, 000 130, 000 130, 100, 000 140, 000 130, 000 80, OO�J 100,000 100, 000 �93 140, 000 80, 00 100, 000 �94 g0, 00 100, 000 100, 000 �95 90,U0 100, 000 100, 000 396 I 100, 0�0 100, 000 �� 100, 000 100, 000 �98 � 100, 000 �99 �00 001 002 �. � $2 �;00 000 $2 , 500, 000 $2 ,500, 000 $2,500, 000 $2, 500, 000 $ 1, 500, 000 $2 , 000, 000 $2 , 500, 000 (No Call} line a ears indicate callable bonds on th Prin�iPal maturities below the line in each column where a PP the year immediately above the line. - F °; ;: :i WHITE - CITY CLERK r . �tssos� PINK � � F�h NCE �-"�� GITY OF SAINT PALTL Council CANAR�' -�DE�MRTMENT " File NO. B�..UE� -MAVOR . � • , rdin�nce Ordinance N 0. ��"�"( Presented By � efe d To Committee: Date Out of Committee By Date �% _ .--,.'' � i An ordinanoe a�uthori�i.n.g :the issuanc�, of bonds by the Port Authority of the_`Gity of Sair�t Paul in �t°> � the principal amount of $3,`350,000 over and above � the amounts iseued �nder ardinanoea No. 11913, No. Y' � 12166� No. 1228'7� No. i3223, No. i3729, No. 14623� � and No. 15708, for the purpose of securing funds aa needed for the p�yment of the cost necessarily � incurred and to be ineurred by said Port Authority for the acquisition of property and other purposes in Yurtherance of its program of port, harbor� iMdu�trial and reareational development, in anticip�- tion of the reQeipt by said Port Authority of payments, appropriations ! rents and profits and o� ineome from other sources; prescribing the form and detaila o� sueh bonds; a�.d au�tlorizj.ng eaid Port A��ho�it3� -to �° pledge �h�-' �u''.il fai�h, eredit and resourees of the � City o� Saint Paul �or the aeourity of said bonde. WSEREAS, the Port Authority of the City of Saint Pau 1, by � its Resolution ldo. 1007, adopted Augus� 39� 3:�'75� �as re�t�ested - ... : the Council of the City of Saint Paul by ordinanee to au�ha��ze the issuance of bonds by said Port Authority in the aggregate prinoipal amount of �3,350,000, �or the purpose set forth in said` resolution, a oertit,ied copy of whieh has been presented to the Couneil and is now on file in the office oY the Cit y Gi�erk, all pursuant to the provisions of Seetion 458. 193, Minnesota Statutes ; and WHEREAS, the Port Authority, by Resolution No. 1007, evideneed its inten.t to review each year the amount o� earninge or other income it has on hand and available in its treasury which can. lawfully be used to pay the prinaipal or i.nterest or both� om. the bonda isaued pursuant to this Resolution and� COUNCILMEIV Requested by Department.of:. Yeas Nays - Christensen Hozza In Favor Levine Rcedler � Again�t BY Sylvester . Tedesco President Hunt Adopted by Council: Date Form A by City Attorney r Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Council .By BY �ar. � . . . . . �'7 V�� . . ��:r m,z�. rx�. �� . .,. . Page 2. � City Council Ordinance, and to adopt a resolution authorizing • the: Secretary of the Por'� Authority to . certify on or befor$ 4ctober 15 in an,y year tp the Ramsey County Tax Department i�uditor) tY�e amount on hand and availabYe in tY�e Por�: ;A�xtgi��=ity� treasury� from earnings or c�ther inco�e,. including the amount i.n the sinking fund which it will use ta pay principal or iraterest or both on the bonds issued pursuant to 'this Resolution and `City Council OrdinanEe, thus causing the `Ramsey County Tax Depar'tment �o reduce the levy for that year pertaining to th ose speciYic bonds by the amount so cer.tified, such action being authorrized by Mfnnesota Statu�es, See. 458. 193,� Subd. 5, and . WHEREAS, the Counci�. of the Gity oY Saint Paul, being du2y advised in the premises, � finds and determines that it is neces— sary, for the Port l�at��tty} tq•,ris,sue �an:d ,.�el�l��:�.�,i+d bonds in the nea_x� futura for the purpose �of`�securing func�s, as. needed by it to pay the cost . af; pri�perty� acqu�.r,ed and for a�her purposes ' ir� �urthe:ranee of tfie';�r'rag�n .o�` ':port� �ic� j`fndu�t:ri�.al development referred to in said r�so�,ution, and ��horized by Minnesota Statutes , Chapter .�•5�, a$• ame;��ded�,,;in anti,e_iga t�o�: of the receipt � �y z:�z l=��rt wuLiiu�ity o� pa3�m�nts, .$�►Prr,pr�a��,�,�zi�s;� rents and. , prc.�i.ts and of -xncome fro� ot�ier sources,� �rfict�''i� • is necessaxy an�.0 pi•�p�r Yop �the Caunc�I, :pursuant to said 7.aw, to ar�thori•r,c� t,�e issuanee and sale of said bonds and the gled�e of .the �ull f�.�.t1Y, eredit and resour�ees of the City of Saint Paul -for ��he ••.�:�urity thereof, and to presc�ibe and cronsent to the form 'ana tc��ns of �said bonds when and as issued by the _ Por�t Authority ui��er i�xe auth�rization gY•an�ted b� -this ordin�nce , now, � th�r+�for�.�� ' THE �OUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN�z Section i. ' � T�iat -pursuant to and in accordance with t�e pro�is ions� . terms -and conditions of this ordinance and of Minnesota Sta�utes, �hapter �58, authority is hereby gra.nted to the Port Authorfty of. t�he �'i�y of Saint Paul tp issus and se 11 i�:s -.bonds as' au�horized ; t�.v Se�t��r. �5�. ��33, i� a�i:iiti.on to its Gen��_al �mprovem�r�t $or�d�, �:;�ies A ±^ n, i.??�?�.:a�ive , he�eta�c��e i:��*e� 'a:�c� �olci �n3�r authority of Ordinanees No� i1913, No. 1�16fi, No. 12287, No. 13223, No. 1372g, and No. 146:'3, and in addition to the - Genera� Improvement Bond ,; Serie� I, heretofore autho=�ized for sale; and that said �onds are authorized to be . �issued : and sold in tr.e aggregat�e pri�cipal amount of ��,3S0,OOO, far the purpase of secur3.ng ��zn�s.- as need�d by the Port Authority, � � in said aggregate amount, . in antieipation of the receipt a� � � ,�� . �.- . - � � , . ; : � . � ��if�l�� ` � � � C�. 1'�0� �58�1 y Page 3. the Port Authority of payments, appropriations, rents and profits and of income from other sources, to defray the cost and expense necessar_�ly incurred and to be incurred in the near future for its program of port, harbor, industrial and recreational develop- ment, generall� described as follows : (1) The acquisition of waterfront, riparian and other lands and the construction of docks , wh�rves, piers , dikes , and other related port facilities ; (2) The acquisition, development and redevelopment of lands for the purpose of establishing a system of harbor ax�d ri'ver improvements and industrial develop- ments within the poxt dist�ict, and within the industrial development districts heretofore created therein for that pu�pose; (3) The provis�on of recreational lands and �aca.Tities along the river; and (4) Incidental to the foregoing, all cl;ean�ng, dredging and filling, grading and reclaiming marginal land for port and industrial purposes; the development of port and industrial areas ; and the construction of � storm at�d sanitary �ewage disposal facilitiea , water distribution systems for drinking and other purpoae�, streets , traekage , tsurfa�iaig and other land improvements, and other utili�y i�ast�lla�iox�s in those areas . Section 2. ; - . That the bonds of each series issued and sold� pursuant to this ordinance shall bear date not�,_la,ter than the first day of the month in whieh: su�h i�on�d.s �are del-ivered to the purchaser the reof; that the first installment of each series shall mature not Iater than three yeaxs from such date an.d the last not later than thirty years from such date ; that no amount of principal of any series payable in any calendar year shall exceed five times the smallest amount of principal maturing in any calendar year ending three years or more after the date of issue of the series ; that the bond:s o� each aeries shall be issued and sold by the Port Authority in the manner provided by Iaw, shall be num+�ered serially, shall each be in the denominatian of a multiple of �1, 000, and shall bear interest not in excess of the maximum rate permitted under applicable law at the time of issue , sa�.d interest 'to be payable semi-annually, according to interest coupons to be attached to the same; th�t' the bonds of each series ek�.al� be substantially in the form hereinafter prescribed by the �Council �d approved by the City Attorney of � � , � Ks; � '�' , � � :.�,t�. ��so � , � � - : � �. r�. ��qy Page 4. , the City; that said �o�.ds sYa 11 bear such interest as the City Council shall apg��ve , and shall be sold in one ` or more series by the Port AutI�ority to the highest bidder therefor, not less than 14 days.' alfter publication, of the 'time and glace fvr receiving bids thereon; that the proceeds �irom t�e issuance and sale of s�id bonds,: as received by the Po�rt t�uthority, ahall be deposited hy it in a fund of the Port �iuthority allo�ated thereto and subject to 'disbursement only in defrayment of the costs and expenses necessarily incurred and to be incurxed by the Port Authority for the prograu� of port and �.n.dus'trial development hereinabove described; that a11 of the .bo�ad� shal:� be payable in lawful money of the United Sta�e� .:of -��ica at the office of a. paying �.gen� or age�.ts des�gnated �y the Port Authority, and as �tecurity for the prQept artd faithful pay�[s�i:t„ of bflth princ.ig�1, au:d i.s�.�r�9t on_ s�ai,d bands , the Port Authority is hereby autY�orized to plec�ge .tl�e fuil faith , credi� and resources oY �the Cat�y a�- �ain`t Paul�� ' t�iat the bonds af each � series issued hereunc�e� `:.;shall be e�t�itled "Port Authority of the City of Saint Pau1 Gerre.ral Improvement; Bonda, �eries "J" , shall be issued in series eons�eQUtivel�y d�s.i�nat�d, �nd be�inning �vi�h fieries J-i, iY issit�d in mo�re than +��e. sexies, and _.the' bond��'�: ,. of eaeh series shaYl be humbered consecutively beginni�g witM N4. i; that e�oh of said; bon8�s sha31, be si�:ned by the Preside�;� ` � of tYxe •Port Authority, attested by i�ts 3ecretary and cor�nter-- signed by i�ss Treasur�r; , provided that a�l but one of s�id � signatures may be printed, l�ithographed, stamped or engraved on the "bonds , and intere�t coupons sha�:l be 'att&ched thereto, and shall be executed and authenticated b� th� printed, ea�g�'aved, or lithographed gacsimil� signatures of said P�esiden� and !L� Secretary;: that each of the bonds��hall . be aealed with the corporate seal of the' Fort Authority, or a Printed, lithographed or engraved facsimile thereof; that if ap�proved by the reso- lu�tion �� tY�e City Council� any oY said bonds 'may be made sub= �ect to redemption. and : prep,ayment �t� �h.,e` optiori 'of:, the Port Authority at such tim� aii�d� g��e or:, p�ices,, ari� upo�n such notice � as �hall be provided in s�.id resolution; anc� that eaeh of the bonds shall be in substar�tia�lly �the follo�v,iaz�;:��rm�, wi'th' suit.- able variations as� "to �s�rial< �designa�iog�.aridc n��, deMO�i�a- tion, place or places pf payment, redemption p�ovidions, intere�t. rates andz_nom�.na� da�e af��u�►�.: : , _- ;. . . . UNITE� STATES 0�' AMEI�tICA STATE OF MINNESOTA _ COUNTY OF RAM�EY PORT AUTHORITY OF THE CITY OF SAiNT PAUL GENERAt, IMPROVEMENT BOND SERI�S J N0. � ,000 � , �rl..�Vl.�V� , . � . _ �� . � . ��4'y Page 5. KNOW ALL MII�T BY THESE PRESENTS, That the Port Au�thority of the City of Saint Pau�, in the County of Ram$ey and State of Minnesota, acknowledges itself to owe an@ for value received hereby promises to pay to bearer the sum of THOUSAND I�OLLARS =� ':�: on the first day of , lg , togeth�r with interest thereon at the rate of percent ' (��fo) per annum from the date her,eof until paid, payable , 19 and semiannually thereafter on the first days of and in each year, interest �o maturity being evidenced �hy an'dypaya-�7:e in accordance with and upom presen.tation and surrender of the ann.exed interest coupons a� they se��ally become dt�e . Both pri.ncipal and interest of this bond a�e payable in. lawful money of the United States of Ame rica at the office of in , and for the prompt payment o� thi.s bond, both principal an ;�.nterest, when due , the full fa•i�h, cr�dit� and resources o� the -�.z�ty of Saint ' patz}. are l�ereby irrevo�ab�l'�'," pl�i�ged. - Thie �ond is one o� a aeries aBe.o�ntiri� in the aggregate - to the sum of �3, 350,Oa0 issued by said Part° Authority for: the purpose of securing funds as needed by the Port Authority to pay the cost and expense necessarily inaurred an.d ta be incurred for the program of port and industrial development described in Ordinance No. of the City of Saint Paul, all � p pur�uant to the provisions and by •�a�he��ty of Minnesota Statutes , Chapter 458, and in antici�ation of the receipt by said Port Authority of ' payments, appropriations , rents and prafits and income from other sources thereunder, and in accordance with the provisions , terms and conditiona of Chapter. 458, Minnesota ��t�:es . Thie bond is issued pursuant to said ordinance , as -� e�acted by the Council of the City of S�int Paul and duly signed, :�'� attested and aut�o�ized in accordance wfth said °Chapter 458, ;"�`' an.d pursuant to fteaolu�tion of said Council No. , passed and a�proved , 19 , and under au�hority and �.n all respects in: �nl� _caiap�3�:�e� w,itYf ,t�i:e �Gh�rter of saa,d City o� Saint Paul, pwr�usn'� to-. �e,so�utt"�o.n$. o�-`�ssF�d Po"rt Authority, -:; No. 1007, and No. , passed and� approved, respectively, August 19, �-975, and . ,�...�,,;�. 1�- , - . :�'.� a}� in a11 �esp��cts " in full ec�mpi�.ance:��v� �all, .:a�pl'�e�bi�; ��sif�n.te�.�.o� . 1aw,f in� �luding Chaptez` 4�5, Minne�dta Statu�e�: . . .. . . .. ., ,.� _ ; . , , � .;. It is hereby c`�ertified a�.d reci�ed t�i�t ` a1'� things, acts ,. and condit ion.s re quired by the Cous titut ion and laws of the Sta�te of l�finnesota and the Charter of said City to` .happen and be done ; and performed precedent to and in the issu�nce of this bond have happened and been done and performed in regular and due � � �^ � 2f6��0 . . , 7 C�'�Q • �o• �5�y Page . will pay to the bearer at in , the sum sh.own hereon in lawful money of the United States, for interest then. due on its General �mprovement Bond, Series J, dated , 19 , No. � (Facsimile Signature) (�'acsimile Signature ) Attest Secretary President and that there shall be printed �on the reverse side of each bond a tru.e and correct. copy of �he t�xt: of the-, c�pin�on rendered by bond co�nsel as to the vali�dity �her+eof, a.t th�. �ime of del ivery of such bond, together with the following certifi�cate �o be executed by a lithographed facsimile of the signature of the Secretary: I certify that the above is a full , true and correct copy - o� the legal opinion rendered by bond co unsel on the issue of bQnds of the Port Authority of the City of Saint Paul which includes the within bond, da�ted as of the date of delivery of and payment for the bonds . �Facsimile Signature ) Secret�ry Section 3. TYiat such bonds -both in respect o'� the principal amount of the same and in respect of the interest thereon shall be paid by said Port Authority from tax levies provided for and authorized by said Chapter 458, Minnesota Statutes , and from the earnings and all income received by said Port Authority from whatever source derived, to the extent that such earnings and income are determined by the Port Authority to be available for such pur- pose and are not pledged for the payment �of revenue bonds issued under Minnesota Statutes , Section 458. 194; that said Port Authority sh�31;: befcire the issuance of any series of bonds authorized hereunder, levy for each year, until the principal and iriterest are paid in full, a direct annual tax on all the taxable pro.perty in the City of Saint Paul, in an amount not 1�ss than 5dfo in exeess of the sum required to pay the prineipa`1 and interest of the �same when and as such principal and interest mature , and after such bonds have been delivered to the purchasers, such tax shall be irrepealable until all such indeb�edness is pa�d, and af ter the issuance of such bonds no further action by said' Port Authority shall be necessary to authorize the ' extension, assessment and collection of such ta�; �Ytat the Seeretary of said Port Authority shall Yorthwith furnish a certified copy of such levy to the County Auditor of Ramsey / �� • � �^ ♦ . • . � � �� • "� • ' I Y V�4 I Pag e 8. County, Minnesota, the county in which said Port Authority and said City are located, together with full information regarding -the bon.ds of said Port Authority for which the� tax is levied, and. sueh County Auditor shall e�tend and assess the tax so ievied, and shall do so ann�ally unti� the prineipal and interest have been paid in fu�l ; prov�:ded that said Port Authority may, on or before October 15 in any year, by appro- priate aetion cause its Secretary to certi�y to the said County Auditor the amount on hand and available in its own treasury from earnings or other income , including the amount in the sinking fund, which it will use to pay the principai or interest or both nn each specified issue of its :bonds artd the County Auditor shall reduce the le'vy for that year herein provided for by that amount; that the amount of .funds so acquired shall be set aside by said Port Authority and be us�d for no other pt�rpoae than fp.r the, re,paym�nt Qf tl�e princ�pal ,and inte�e�t on such bonds ; and that all such tz4xes , b�ir�g authorized to be levied under Section 458 . �-93, Minnesota Statutes , shall be collected and remitted to t�e Port Authority by the County Treasurer in accordance wit� the proviaions of law go ve�;ing the oollECtion of other tax s ��nd shall be used solel�� 1�' the payment of the princips� and interest on �u�h bon+��; :- S�ctia�. 4. . Tha.t said Port Au�hori ,��sh��1; pro�id�e ,for the` exercise of the authority hereb� � � �d for it9` hi�r��ance <and sale of its said bonds , and the p ' ��' of the full faith, cred�.t and 'resources af sai,dCit� �f ` � "Paul` a,� �ecurity' for the_ payment of the same , by appropriate: resolutions.; and that in �a�� such instance said� Port Authority shall make due compliance with all appl`icable requirements of th:�s ordi.nance , sa�d Chapters 458 and 475, bYinnesota Statutes, and all other �pplicable laws . 4 � . . . . '-:?`�,,:1 . � ��:r+1.._;� . .x � . ..y.�- ' . '�4o- WH17E • - CITV~CLERK �� PINK . � FINANCE� . GITY OF SAINT PALTL Council G,ANARY =D'�PARTMENT � . B�VE � -MAVOR File - NO. `r ` � � Ordinc�nce Ordinance N 0. I�CJ�� Presented By Referred To Committee: Date Out of Committee By Date Page 9. Section 5. That this ordinanee shall take effeet and be in foree thirty (30) days from and after its passage , approval and publication in the officia}. newspaper of the City. COUIVCILMEN Requested by Department of:: Yeas Nays Christensen I� Hunt In Favor Levine Rcedler � Against BY Sylvester '�ek�ees. President� Hoz2a Adopted by Council: Date � � �� Form Approved by City Attorney Certified P by C uncil Secretary� BY B Approved Mayor: Date Approved by Mayor for Submission to Council By By ��o OC� i 1 1�7r