94-1393 a«,�u Fu� � A�} -13Gi3
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RESOLUTION
OF IN PAUL, MINNESOTA �
PreseMed By
Roforrad To Committee: Date
ACC PTING THE OFFER OF
THE MINNESOTA PUBLI FACILITIES AUTHORITY TO PURCHASE
A $600,000 GENERAL OBLIGATION SEWER
NUE NOTE OF 1994,
PROVIDING FOR T3 ISSUANCE, AND AUTHORIZING
EXECUTION O A PROJECT LOAN AGREEMENT
A. WHEREAS, the Cit Council of the City of Saint Paul,
Minnesota (the "City"), h s heretofore applied for a loan from
the Minnesota Public Faci ities Authority (the "PFA") to provide
financing pursuant to Min esota Statutes, Chapter 475 and
Sections 116.19 and 115.4 , for the construction of improvements
to the City's wastewater reatment facilities (the "Pro�ect");
and
B. WHEREAS, the PFA is authorized pursuant to Minnesota
Statutes, Chapter 446A, a amended, to issue its bonds (the "PFA
Bonds") and to use the pr ceeds thereof, together with certain
other funde, to provide 1 ans to municipalities to fund eligible
costs of construction of ublicly owned wastewater treatment
facilities in accordance ith Title VI of the federal Clean Water
Act; and
C. WHEREAS, the Cit has applied for a loan from the PFA
pursuant to such program, and the PFA has committed to make a
loan to the City in the p incipal amount of $600,000, to be
disbursed and repaid in a cordance with the terms of a Project
Loan Agreement (the "Proj ct Loan Agreement") executed by the PFA
and City, a copy of which is before this meetinq and on file with
the Clerk; and the Projec Loan Agreement, as executed, is
incorporated by reference• and
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D. WHEREAS, the $60 ,000 General Obliqation Sewer Revenue
Note of 1994 (the "Note") of the City is not tax-exempt, but the
City will need to assure he tax-exemption of the PFA Bonds; and
E. WHEREAS, in acco dance with Minnesota Statutes, Section
475.60, Subdivision 2(4), the City is authorized to issue
obliqations to a board, d partment or agency of the State of
Minnesota by negotiation nd without advertisement for bide and
the PFA is, and has repre ented that it is, a board, department
or aqency of the State of Minnesota; and
F. WHEREAS, gross r venues (the "Revenues" as defined in
the City's Re�olution No. 88-835, adopted May 24, 1988, beinq
referred to herein a� the "General Resolution") of the City's
storm and sanitary sewer ystems, including all pipinq, pumps,
valvee, maintenance equip ent arid buildings, improvements and
real and personal propert used in connection therewith, and all
funds, accounts, contract rights, permits, authorization,
approach and intangibles elated thereto (the "Sewer System"),
have been pledged to the ayment of the City�s Sewer Revenue
Bonds, Series 1988A, and ewer Revenue Refundinq Bonds, Series
1993 (the "Bonds"), and u der the General Resolution the pledge
of Revenues to the paymen of the Note is required to be junior
and subordinat�d to the p edge to the Bonds; and
G. WHEREAS, the Ci y has heretofore is�ued to the PFA its
General Obligation Sewer evenue Note of 1993 (the p1993 Note"),
and und�r the resolution uthorizinq the issuance of the 1993
Note the pledge of Revenu s to the payment of the Note may be on
a parity of lien with the pledge to the 1993 Note; and
H. WFIEREAS, a contr ct or contracts for the Pro�ect have
been made by the City wit the approval of the PFA and all other
state and federal agencie of which approval is required:
NOW, THE�tEFORE, BE I RESOLVED by the Council of the City of
Saint Paul, Ramsey County Minnesota, as follows:
1. The offer of the PFA
to purch�se a$600,000 Ge eral Obligation Sewer Revenue Note of
1994 of the City (the "No e"), at the rates of interest herein-
after set forth, and to p y therefor the sum of $600,000 as
provided below, is hereby aecepted, and the sale of the Note is
hereby awarded to the PFA Payment for the Note shall be
disbursed in installments as eligible costs of the Project are
reimbursed or paid, all a provided in the Project Loan
Agreement.
2. enom'nat' s•
�iaturities. The Note sha 1 be a fully registered negotiable
obligation, shall be titl d the "General Obligation Sewer Revenue
Note of 1994", shall be d ted as of the date of delivery and
shall be issued forthwith The Note shall be in the principal
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amount of $600,000, or so much thereof as ahall be disbursed
pursuant to the Proiect an Agreement, shall bear no interest
until Auqust 20, 1995, an from and after August 20, 1995, shall
bear interest on so much f the principal amount of the Note as
(i) may be disbursed from time to time as provided in the Project
Loan Agreement and (ii) r mains unpaid, from August 20, 1995, for
disbursements made on or rior to that date or from the date of
each later disbursement u til the principal amount of the Note
has b�en paid or has been provided for, at the rate of three and
sixty hundredths percent 3.60�) per annum (calculated on the
basis of a 360-day year o twelve 30-day months), payable
semiannually on each Feb ary 20 and August 20, commencing
February 20, 1996, and sh 11 mature on the dates and in the
installments as follows: �
Date u Date Amount
February 20, 1996 $10, 71.45 February 20, 2006 $14,818.19
August 20, 1996 10, 58.14 August 20, 2006 15,084.91
February 20, 1997 10, 48.18 February 20, 2007 15,356.44
Auqust 20, 1997 10, 41.65 August 20, 2007 15,632.86
February 20, 1998 11, 38.60 February 20, 2008 15,914.25
August 20, 1998 11, 39.09 August 20, 2008 16,200.71
February 20, 1999 il, 43.20 February 20, 2009 16,492.32
August 20, 1999 11, 50.98 August 20, 2009 16,789.18
February 20, 2000 11, 62.49 February 20, 2010 17,091.39
August 20, 2000 12, 77.82 Auqust 20, 2010 17,399.03
February 20, 2001 12, 97.02 February 20, 2011 17,712.21
August 20, 2001 12, 20.17 August 20, 2011 18,031.03
February 20, 2002 12, 47.33 February 20, 2012 18,355.59
August 20, 2002 13, 78.58 August 20, aoia 18,685.99
February 20, 2003 13, 13.99 February 20, 2013 19,022.34
August 20, 2003 13, 53.65 August 20, 2013 19,364.74
February 20, 2004 13, 97.61 February 20, 2014 19,713.31
August 20, 2004 14, 45.97 August 20, 2014 20,068.15
February 20, 2005 14, 98.80 February 20, 2015 20,429.37
August 20, 2005 14, 56.17 August 20, 2015 20,797.10
In the absence f a prepayment or reamortization, if
the full principal amount of the Note is disbursed before
August 20, 1995, payments based on the above schedule will be
$21,171.45 each six (6) m nths, all as set forth on Exhibit �, to
the Project Loan Agreemen .
Interest shall ccrue only on the agqregate amount of
the Note which has been d sbursed and is unpaid under the Project
Loan Aqreement. The prin ipal installments shall be paid in the
amounts scheduled above e en if at the time of payment the full
principal amount of the N te has not been disbursed; provided
that if the full principa amount of the Note is never disbursed,
the amount of the princip 1 not disbursed shall be applied to
reduce each unpaid princi al installment in the proportion that
such installment bears to the total of all unpaid principal
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installments (i.e., the r maininq principal payment schedule
shall be reamortized to p ovide similarly level semiannual
installments of total deb service payments). Principal,
interest and any premium ue under the Note will be paid on each
payment date by wire paym nt, or by check or draft mailed the
last business day prior t the payment date to the person in
whose name the Note is re istered, in any coin or currency of the
United States which at th time of payment is legal tender for
public and private debts.,
Interest on the includes amounts treated by the
PFA as service fees.
' 3. • . The proceeds of the Note ehall
provide funds to finance onstruction of the Project. The Note
is issued to aid in finan ing a sewage disposal system or part
thereof pursuant to Minne ota Statutes, Section 115.46. The
total cost of the constru tion of the Project, including legal
and other professional ch rges, publication and printing costs,
interest accruing on mone borrowed for the Project before the
collection of Revenues pl dged and appropriated therefor, and all
other costs necessarily i curred and to be incurred from the
inception to the completi n of the Project, is estimated to be at
least equal to the amount of the Note. The City covenants that
it shall do all things an perform all acts required of it to
assure that work on the P oject proceeds with due diligence to
completion and that any a d all permits and studies required
under law for the Project are obtained.
4. �edem�tion. The Note shall be subject to
redemption and prepayment in whole or in part at the option of
the City or mandatorily a provided in the Project Loan
Agreement. If redemption is in part, installments of principal
payable last under the No e shall be prepaid first, unless (1)
the prepayment is made wi h receipts of a grant under the state
independent grants progra , in which case the installmenta of
principal shall be propor ionately prepaid, or (2) the City and
the hold�r of the Note ag ee to a different result.
5. ' t ot . At the time of issuance and
delivery of the Note, the Treasurer of the City shall reqister
the Note in the name of t e payee in a note register which she
and her successors in off ce shall maintain for the purpose of
registering the ownership of the Note. The Note shall be
prepared for execution wi h an appropriate text and spaces for
notation of registration. The force and effect of such regis-
tration shall be as state in the form of Note hereinafter set
forth. Payment of princi al installments and interest, whether
upon redemption or oth�rw se, made with respect to the Note, may
be made to the registered holder thereof or to his, her or its
leqal representative, wit out presentation or surrender of the
Note.
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6. . The Note, together with the
Certificate of Registrati n thereon, shall be in substantially
the followinq form:
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UNIT D STATES OF AMERICA
S ATE OF MINNESOTA
RAMSEY COUNTY
C TY OF SAINT PAUL
$600,0 0 GENERAL OBLIGATION
SEWER REVENUE NOTE OF 1994
IQdOW ALL PERSO BY THESE PRESENTS that the City of
Saint Paul, Ramsey Count Minnesota (the "City"), certifies that
it is indebted and for va ue received promises to pay to the
Minnesota Public Faciliti s Authority or the registered assign,
the principal sum of SIX NDRED THOUSAND DOLLARS, or so much
thereof as may have be�n isbursed, on the dates and in the
installments as follows:
Date Date Amount
February 20, 1996 $10, 71.45 February 20, 2006 $14,818.19
August 20, 1996 10, 58.14 August 20, 2006 15,084.91
February 20, 1997 10, 48.18 February 20, 2007 15,356.44
August 20, 1997 10, 41.65 August 20, 2007 15,632.86
February 20, 1998 11, 38.60 February 20, 2008 15,914.25
August 20, 1998 11, 39.09 August 20, 2008 16,200.71
February 20, 1999 11, 43.20 February 20, 2009 16,492.32
August 20, 1999 11, 50.98 August 20, 2009 16,789.18
February 20, 2000 11, 62.49 February 20, 2010 17,091.39
August 20, 2000 12, 77.82 August 20, 2010 17,399.03
February 20, 2001 12, 97.02 February 20, 2011 17,712.21
August 20, 2001 12, 20.17 August 20, 2011 18,031.03
February 20, 2002 12, 47.33 February 20, 2012 18,355.59
August 20, 2002 13, 78.58 August 20, 2012 18,685.99
February 20, 2003 13, 13.99 February 20, 2013 19,022.34
Auqust 20, 2003 13, 53.65 August 20, 2013 19,364.74
February 20, 2004 13, 97.61 February 20, 2014 19,713.31
August 20, 2004 14, 45.97 August 20, 2014 20,068.15
February 20, 2005 14, 98.80 February 20, 2015 20,429.37
August 20, 2005 14, 56.17 August 20, 2015 20,797.10
and to pay interest on so much of the principal amount of the
debt as (i) may be disbur ed from time to time as provided in the
Pro�ect Loan Agreement (a defined below) and (ii) remains
unpaid, from August 20, 1 95, for disbursements made on or prior
to that date or from the ate of each later disbursement until
the principal amount here f is paid or has been provided for, at
the rate of zero percent 0.0�) per annum from the date hereof
until Auqust 20, 1995, an from and after August 20, 1995, at the
rate of three and sixty h ndredths percent (3.60�) per annum
(calculated on the basis f a 360-day year of twelve 30-day
months), payable semiannu lly on each February 20 and Auqust 20,
commencing February 20, 1 96.
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ci a te es a ents. Interest shall accrue
only on the aggregate amo nt of this Note which has been
disbursed under the Proje t Loan Agreement dated as of Auqust 26,
1994, by and between the ity and the Minnesota Public Facilities
Authority (the "Project an Agreement"). The principal
installments shall be pai in the amounts scheduled above even if
at the time of payment th full principal amount of the Note has
not been disbursed; provi ed that if the full principal a�ount of
this Note is never disbur ed, the amount of the principal not
disbursed shall be applie to reduce each unpaid principal
installment in the propor ion that such installment bears to the
total of all unpaid princ pal installments (i.e., the remaininq
principal payment schedul shall be reamortized to provide
similarly level semiannua installments of total debt service
payments). Interest on t ig Note includes amounts treated by the
Minnesota Public Faciliti s Authority as service feee.
Principal, interest and a y premium due under this Note will be
paid on each payment date by wire payment, or by check or draft
mailed the last business ay prior to the payment date to the
person in whose name this Note is registered, in any coin or
currency of the United St tes of America which at the time of
payment is legal tender f r public and private debts.
Redemption. Th s Note is subject to redemption and
prepay�►ent in whole or in part at the option of the City or
mandatorily as provided i the Project Loan Aqreement. If
redemption is in part, in tallments of principal payable laat
under this Note shall be repaid first, unless (1) the prepayment
is made with receipta of qrant under the state independent
qrants program, in which ase the installments of principal shall
be proportionately prepai , or (2) the City and the holder of
this Note agree to a diff rent result.
• G t'o . This Note has been issued
pursuant to and in full c nformity with the Constitution and laws
of th� �tate of Minnesota for the purpose of providing money to
finance the construction f improvements to the City's �aa�tewater
treatm�nt facilities in t e City, and is payable out of the PFA
Debt Service Account of t e Sewer Service Enterprise Fund of the
City, to which account ha e been pledged qross revenues of the
City's sewer system. Thi Note has been issued to aid in
financinq a sewage dispos 1 system or part thereof pursuant to
Minnesota Statutes, Secti n 115.46. This Note constitute's a
general obligation of the City, and to provide moneys for the
prompt and full payment o said principal installments and
interest when the same be ome due, the full faith, credit and
taxing powers of the City have been and are hereby irrevocably
pledqed.
' '• s . This Note shall be regiatered
in the name of the payee n the books of the City by presentinq
this Note for registratio to the City's Treasurer, who will
endorse his or her name a d note the date of reqistration
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opposite the name of the ayee in the certificate of reqistration
on the reverse side hereo . Thereafter this Note may be
transferred to a bona fi purchaser only by delivery with an
assiqnment duly executed y the registered owner or his, her or
its legal representative, and the City may treat the registered
owner as the person exclu ively entitled to exercise all the
rights and powers of an o ner until this Note is presented with
such assignment for regis ration of transfer, accompanied by
assurance of the nature p ovided by law that the assignment is
genuine and effective, an until such transfer is registered on
said books and noted here n by the City�s Treasurer.
s ss. The Treasurer may require
payment of a sum sufficie t to cover any tax or other
governmental charge payab e in connection with the transfer of
this Note and any legal o unusual costs regarding transfers and
lost notes.
a e m . The terms and conditions of
the Project Loan Agreemen are incorporated herein by reference
and made a part hereof. he Project Loan Agreement may be
attached to this Note, an shall be attached to this Note if the
holder of this Note is an person other than the Minnesota Public
Facilities Authority.
ab O' a The City intends that none of the
interest on this Note wil be excluded from gross income for
United States income tax urposes or from both gross income and
taxable net income for St te of Minnesota income tax purposes.
IT IS HEREBY CE TIFIED AND RECITED that all acts,
conditions and things re ired by the Constitution and laws of
the State of Minnesota an the charter of the City to be done, to
happen and to be performe , precedent to and in the issuance of
this Note, have been done have happened and have been performed,
in reqular and due form, ime and manner as required by law; that
the City has covenanted a d agreed with the holder of this Note
that it will impose and c llect charges for the service, use and
availability of and conne tion to its municipal sewer system at
the times and in amounts ecessary to produce gross revenues
adequate to pay all princ pal and interest when due on this Note;
that the City will levy a direct, annual, irrepealable ad valorem
tax upon all of the taxab e property in the City, without
limitation as to rate or mount, for the years and in amounts
sufficient to pay the ins allments of principal and interest on
this Note as they respect vely become due, if the qross revenue�
from said municipal sewer system and any other revenues
irrevocably appropriated o said PFA Debt Service Account are
insufficient therefor; an that this Note, together with all
other debts of the City o tstanding on the date hereof, being the
date of its actual issuan e and delivery, does not exceed any
constitutional or statuto y or charter limitation of
indebtedness.
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IN WITNESS WHE OF, the City of Saint Paul, Ramsey
County, Minnesota, by its City Council has caused this Note to be
executed on its behalf b the signature of its Mayor, attested by
the signature of its Cle , and countersigned by the signature of
its Director, Department f Finance and Management Services, and
the corporate seal of the City to be affixed hereto, all �s of
October _, 1994.
CITY OF SAINT PAUL, RAMSEY COUNTY,
MINNESOTA
X X X
Mayor
Attest:
X X X
Clerk
Countersigned:
X X X
Director, Department of
Finance and Management Services
( SEAL)
General Obligation Sewer evenue Note of 1994.
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The transfer o ownership of the principal amount of
the attached Note may be ade only by the registered owner or
his, her or its legal re esentative last noted below.
DATE OF SIGNATURE OF
13EGISTRATION CITY TREASURER
Minn ota Public
Fa ilities Authority
Sain Paul, Minnesota
Fede 1 Employer ldenti-
October , 1994 'o X X X
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7. Execution. The Note shall be �xecuted on behalf of
the City by the signatur of its Mayor, Clerk, and Director
Department of Finance an Management Services, each with the
effect noted on the form f the Note, and be sealed with the seal
of the City. In the eve of disability or resignation or other
absence of any such offi r, the Note may be signed by the manual
signature of that office who may act on behalf of such absent or
disabled officer. In ca any such officer whose signature shall
appear on the Note shall ease to be such officer before the
delivery of the Note, su signature shall nevertheless be valid
and sufficient for all p poses, the same as if he or she had
remained in office until elivery.
8. • . The Note when
so prepared and executed hall be delivered by the Director,
Department of Finance an Management Services, to the purchaser
thereof prior to disburs ents pursuant to the Project Loan
Aqreement, and the purch er shall not be obliged to see to the
proper application there .
9. . There has heretofore been
created (as provided in e General Resolution) a separate fund
of the City designated t "Sewer Service Enterprise Fund" (the
"Fund"). The Fund shall e maintained in the manner specified in
the General Resolution a herein until the Bonds, and interest
thereon, have been fully aid, and as specified herein until the
Note and interest thereo have been fully paid. There shall be
maintained in the Fund, i addition to the Construction Account,
Operation and Maintenance Account, Revenue Bond Debt Service
Account, Reserve Account, Excess Investment Earnings Account and
1993 Refunding Escrow Acc unt heretofore established with re�pect
to the Bonds, the followi g two (2) separate accounts which have
heretofore been establish d by the resolution authorizinq the
issuance of the 1993 Note to which shall be credited and debited
all income and disburseme ts of the Fund relating to the 1993
Note and the Note as here'nafter set forth. The Treasurer and
all municipal officials a d employees concerned therewith shall
establish and maintain fi ancial records of the receipts and
disbursements of the Sewe System in accordance with this
resolution. In such reco ds there shall be maintained accounts
of the Fund for the purpo es and in the amounts as follows:
a. A" A ", to which shall be
credited all proceed received from the sale of the 1993
Note and the Note. he 1993 Note and the Note shall be the
only sources of mone s credited to the PFA Construction
Account. It is reco nized that the sale proceeds of the
1993 Note and the No e are received in reimbursement for
costs expended'on th Project and the project funded by the
1993 Note or in dire t payment of such costs, and that
accordingly the mone s need not be placed in the PFA
Construction Account upon receipt but may be appli�d
immediately to reimb rse the source from which the
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expenditure was mad . The moneys in the PFA Construction
Account shall be us solely for the purpose of paying for
the cost of constru ing the Project and the project funded
by the 1993 Note, i luding all costs enumerated in
Minnesota Statutes, ection 475.65, provided that such
moneys shall only b expended for costs and expenses which
are permitted under he Project Loan Agreement. The PFA
prohibits the use o proceeds of the 1993 Note and the Note
to reimburse costs itially paid from proceeds of other
obliqations of the 'ty, such as the Bonds. Upon completion
of the Project and e payment of the costs thereof, any
surplus shall be tr sferred to the PFA Debt Service
Account.
b. A" e cou ", to which shall be
irrevocably appropr' ted, pledged and credited: (1)
Revenues (as define in the General Resolution, and as
provided in Section .03(A) Sixth thereof) in an amount
sufficient, with ot r moneys, to pay the principal of, and
interest on, the 199 Note and the Note when due; (2) all
collections of taxes which may hereafter be levied for the
payiaent of the princ'pal of, and interest on, the 1993 ATote
or the Note; (3) the proceeds of any grant which by the
terms of the Project Loan Agreement is required to be
applied to reduction or repayment of the 1993 Note or the
Note; (4) all invest ent earnings on moneys held in the PFA
Debt Service Account (5) any amounts transferred from the
PFA Construction Acc unt; and (6) any other moneys which are
properly available a d are appropriated by the City Council
to the PFA Debt Servi ce Account. The moneys in said account
shall be used only t pay or prepay the principal of, and
interest on, the 199 Note and the Note and any other
qeneral obliqation b nds hereafter issued and made payable
from said account, a d to pay any rebate due to the United
States with respect o the PFA Bonds in connection with the
Not�.
c. Excess Reve ues may be used for any proper purpose
to the extent provid d in the General Resolution.
The City shall observe th covenants of paragraphs 16 and 17 of
this resolution and of pa agraph 21 of the Project Loan Agreement
with reqard to the Fund.
10. v a T s• ed e e • s
�tevenues. It is hereby f und, determined and declared that the
Revenues of the Sewer Sys em are sufficient in amount, when u�ed
in the order provided in he General Resolution, to pay when due
one hundred five percent 105$) of the principal of and interest
on the Note, and the Reve ues of the Sewer System are hereby
pledqed for the payment o the Note, but solely to the extent
required to meet, with ot er pledged sources, one hundred five
percent (105�) of the pri cipal and interest requirements of the
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Note as the same become e. Excess Revenues may be used for any
proper purpose as provid in the General Resolution.
Nothing contai d herein shall be deemed to preclude
the City from making fur er pledges and appropriations of the
Revenues of the Sewer Sy em for the payment of other or
additional obliqations o the City, provided that it has first
been determined by the C y Council that estimated Revenues of
the Sewer System will be ufficient, in addition to all other
sources, for the payment f the Note and such additional
obligations, and any suc pledge and appropriation of the
Revenues may be made sup ior or subordinate to, or on a parity
with, the pledge and app priation herein. The Note is issued
pursuant to Minnesota St utes, Section 115.46, and nothing
herein shall preclude th City from levyinq taxes for the payment
of the Note.
Revenues are h eby pledged to the payment of the Note.
The lien on Revenues sec ing the Note is hereby expressly made a
lien on Revenues junior d subsequent to the lien of the General
Resolution as it applies o the Bonds (as therein defined), all
as provided in Section 6. 1(A) of the General Resolution. The
Note shall be paid from e Operation and Maintenance Account of
the Sewer Service Enterp 'se Fund as provided in Section 4.03(A)
Sixth of the General Res ution, and for this purpose it is
hereby found, determined nd declared that the Note finances
Improvements (as defined 'n the General Resolution).
As provided in aragraph 10 of the resolution
authorizing issuance of e 1993 Note, it is hereby found,
determined and declared at estimated revenues of the Sewer
System will be sufficient in addition to all other sources, for
the payment of the 1993 te and the Note. The pledqe and
appropriation of the Reve ues to the payment of the Note shall be
on a parity with the pled e and appropriation to the payment of
the 1993 Note.
11. e e. In accordance with
Minnesota Statutes, Secti n 116.19, the City hereby covenants and
aqrees with the holder of the Note that it will impose and
collect charges for the s rvice, use and availability of and
connection to the Sewer S stem at the times and in the amounts
required to produce Reven es adequate to pay all principal and
interest when due on the ote. Nothing herein shall preclude the
City from levying taxes f r the payment of the Note as permitted
by Minnesota Statutes, Se tion 115.46.
12. . The full faith, credit
and taxinq powers of the ity shall be, and are hereby,
irrevocably pledged for t e prompt and full payment of the
principal and interest on the Note as the same respectively
become due. If the Reven es of the Sewer System appropriated and
pledged to the payment of principal and interest on the Note,
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together with other fund irrevocably appropriated to the PFA
Debt Service Account ref red to in paragraph 9 of this �
resolution, shall at any ime be insufficient to pay such
principal and interest w n due, the City covenants and agrees to
levy, without limitation s to rate or amount, an ad valorem tax
upon all taxable propert in the City sufficient to pay such
principal and interest a they become due. If the balance in the
PFA Debt Service Account 's ever insufficient to pay all
principal and interest t n due on the Note and any other
obligatione payable ther rom, the deficiency shall be promptly
paid out of any other fu s of the City which are available for
such purpose, and such o er funds may be reimbursed, with or
without interest, from t PFA Debt Service Account when a
sufficient balance is av 'lable therein.
13. f . The Director,
Department of Finance an Management Services, is hereby directed
to file a certified copy f this resolution with the County Aud-
itor of Ramsey County, M' nesota, toqether with such other infor-
mation as the County Aud' or shall require, and to obtain the
County Auditor's certifi te that the Note has been entered in
the County Auditor's Bon Register.
14. reem The Project Loan
Agreement is hereby appr ed in substantially the form heretofore
presented to the City Co cil, and in the form executed is hereby
incorporated by referenc and made a part of this resolution.
Each and all of the prov' ions of this resolution relatinq to the
Note are intended to be nsistent with the provisions of the
Project Loan Agreement, d to the extent that any provision in
the Project Loan Agreeme is in conflict with thi� resolution as
it relates to the Note, at provision shall control and this
resolution shall be deem accordingly modified. The Mayor and
Director, Department of 'nance and Manaqement Services, are
hereby authorized and di cted to execute the Project Loan
Agreement. The executio of the Project Loan Agreement by the
appropriate officers shal be conclusive evidence of the approval
of the Project Loan Agre ent in accordance with the terms
hereof. The Project Loa Agreement may be attached to the Note,
and shall be attached to he Note if the holder of the Note is
any person other than the PFA.
15. Ce t'f'ca s. The officers of the
City are hereby authoriz and directed to prepare and furnish to
the PFA, and to the atto eys approving the legality of the
issuance of the Not�, ce ified copies of all proceedinqs and
records of the City relat ng to the Note and to the financial
condition and affairs of he City, and such other affidavits,
certificates and informat'on as are required to show the facts
relatinq to the legality nd marketability of the Note as the
same appear from the boo and records under their custody and
control or as otherwise own to them, and all such certified
copies, certificates and ffidavits, including any heretofore
272719.2 1 4
��
furnished, ehall be deem representations of the City as to the
facts recited therein.
16. Ne t venants as t Use
Project. The City hereb covenants not to use the proceeds of __
the Note or to use the P ject, or to cause or permit them to be
used, or to enter into a deferred payment arrangement for the
cost of the Project, in ch a manner as to cause the PFA Bonds
to be "private activity nds" within the meaning of Sections 103
and 141 through 150 of t federal Internal Revenue Code of 1986,
as amended (the "Code").
17. - • . The
City with respect to the ote shall comply with requirementa
necessary under the Code o establish and maintain the exclusion
from gross income under ction 103 of the Code of the interest
on the PFA Bonds, includ g without limitation (1) requirements
relating to temporary pe 'ods for investments, (2) limitations on
amounts invested at a yi d greater than the yield on the PFA
Bonds, and (3) the rebat of excess investment earnings to the
United States. The City ovenants and agrees with the PFA and
holders of the Note that he investments of proceeds of the Note,
including the investment f any revenues pledged to the Note
which are considered gro proceeds of the PFA Bonds under the
applicable regulations, d accumulated sinking funds, if any,
shall be limited as to a unt and yield in such mann�r that the
PFA Bonds shall not be a itrage bonds within the meanir�q of
Section 148 of the Code d any regulations thereunder. On the
basis of the existing fa s, estimates and circumstances,
including the foregoinq 'ndings and covenants, the City hereby
certifies that it is not xpected that the proceeds of the Note
will be used in such man r as to cause the PFA Bonds to be
arbitraqe bonds under Se ion 148 of the Code and any requlations
thereunder. The Mayor, erk, Director, Department of Finance
and Management Services, nd Treasurer shall furnish a
certificate to the PFA e racing or based on the foregoinq
certification at the time of delivery of the Note to the PFA.
The proceeds of the Note ill likewise be used in such manner
that the Note is not a p'vate activity bond under Section 103(b)
of the Code.
18. s a 'o 'e e .
The Note, as a taxable ob igation, may not be qualified as a
"qualified tax-exempt obl'gation" within the meaning of Section
265(b)(3) of the Code, a hence is not designated for such
purpose.
2n��9.2 15
q��13��
19. The General Resolution
and the resolution author'zinq the issuance of the 1993 Note are
hereby supplemented to th extent necessary to give effect to the
provisions of paragraph 9 of this resolution.
20. . If any section, paragraph or
provision of this resolut'on shall be held to be invalid or
unenforceable for any rea on, the invalidity or unenforceability
of such section, paragra or provision shall not affect any of
the remaining provisions f this resolution.
21. HPadincrs. Headings in this resolution are
included for convenience f reference only and are not a part
hereof, and shall not li t or define the meaninq of any
provisfon �ereof. �
272719
Y N a q �� �� a:
Blak
Grimm Financ nd Manaqement Services
Guerin
Harris
M ard
Rettman BY�
Thune
Adopted by CouncN: D�a Form AP � bY �Y �«�Y
Adop�ion Cwti�ed by Cotxx�l Secr�ery By:
By:
Approvad by Mayor: � �
Appr May for S to p
By: �2 gy;
: ;:. ; .�.. ..: -._ 0�-�3�3✓
,, . . �
Fiaance and Manag�meat S�rvices 0 12/94 N� 2 3 7 i 2 '�
`� � � ��� GRfEN�SHEE �
.. SON Q E. � F1EPA�ENT DIRECTOR ITIALIDATE � CITY COUNCIL IN TE
Mo,rtha Kantorotvicz _;�6�i -8$36 . ' N nCITYATTORN�Y C111'CLERK,
N BER FOW �y BUOCiET DIRECTOR FIN. & ME�T. SERVICES DIF1:
', U NCIL RO ( W IN3 U
Septe�ber 2j, 1994 . �� Q►YuvoA (oa nssisr,wr� -
' TOtAI. #E OF 8KiNATURE.PAC�ES � (CLI ALL LOCATIONS FOR StGNATURE) �
REOUESTED: �
Resolt�tion accepts the offer of the Minnesota lic Facilities Authority (PFA) to purchase a$600,000 General �
I �
Obliqation Selrer Revernie i�ote of 1994. .
� . �
I RECOMMENOATId�"�pprow �l�} °r R�a� �R� . R80NAL SERVICE CONTRACTS MUS'T ANSWER THE FOILOWINQ GUE8TION8: j
_ PLANNINO C06iM18810N � ._. CIVIL SERVICE COMAAISSIpN 1 Has tMs pafson/fl�m ever worked under e COMrect tor thia d�arpn�nt? �
' _ CIB COMMI7TEE � YES NO ;
Has tlde person/flrm ever besn a cHy smpkryeeT
_ BTAFF — YES NO �,
_ DISTRIC'T COURT �_ � DOes thi8 perSOn/Fimt p086l88 fl skfll 110t nOrinally pos6sas9d by efly CuR9f1t City ertlpi0y96? F
SUPPqiTS WHICH COUNCIL OBJECTIVET YES NO �
E
plaln all ya en�w�rs on ssparat� sM�t and �tt�ch to On�n ihNt �
��� � �s,
INITIATINO PROBLEM, 139UE. OPPORTUNITY (Who. YVhat.lNhsn. Wher�. Why a .
, A loan application for $600,000 to the PFA has en approved by the State. The procedure to follow is for the �
' City to issue a qeneral obliqation note to the ate for that amount. The loan is interest free until August 20�,
1995, and after that date bears interest at the ate of 3.60$ per annua�. The installments �e for 20 years, 19
, through 2015. � �
�
� ���� � � � S EP 16 1994 �� �
k
', ADVANTAOEB IF APPROVED:
i
The Citp recetves a losn from the State vrhich is interest free for one year and then bears a rate of 3.60$ rhich s
I rrell belox market rates. The loan carrles a G. pledqe but will be repaid bp the Sewer Service Fund.
; RECEIVED'
DISADVANTAfiE81F APPHWIED:
F
' RECEIYED C i TY ATTO R I� ��`
None
S E P 14 1994 �
�
OFFICE QF THE DIRECTOR i
DEPARTMENT OF F6NqNCE �
IriND MANAGEMEIVT S i
018ADYANTAOES IF NOT APPROVED:
�
' The Citp loses the opportunity to borrow funds f r the State at a lor� rate to support Public Works construction �
i projects and the inflor�'aad infiltration proqram nw,. �� ^ � t
VYiirl VO11
SEP 2 2 1994
j
600,000
TOTAL AMOUNT OF TAANSACTION S COST/REVENUE BUDtiETED (CIRCLE ONE) YES NO
FUNDINO SOURCE State of Minnesota, Public F ilities Au� �ER
FINANCIAL INFORMATION: (EXPLAIN) %
i.
� ,
�
�.
�: � � •
��
�� NOTE: CQMPLETE DIRECTIONS ARE INCLUDED IN THE QREEN SHEET INSTRUCTIONAL
�� MANUAL AVAILABIE IN THE PURCHASINfd OFFICE (PHONE NO. 298-4225).
s ROt1TINC3 ORDER:
;
,� Belaw are correct routlngs for the five most frequent rypee of documents:
�� CONTRACTS (assumes authoHzed budget exiab) COUNCfL RESOLUTION (Amend Budgets/Accept. Cirents)
�� 1. Outside Agency 1. Depsrtmsnt Director `
'� 2. Department Director 2. City Attorney
� 3. City Attorney 3. Budget Director
4. Mayor (for contracts over $15,000) 4. Mayor/Assistant
5. Human Rights (for contracts over �50,000) 5. Ciry Council
6. Finance and Management Servicea Director 8. Chief Axountant, Finance and Mane�ment 8ervicss
7. Finar�ce Accounting
� ADMINI3TRATIVE ORDERS (Budget Revision) COUNCIL RESOLUTION (ell othero, end Ordinances)
�� 1. Activity Manager 1. Department Director
�� 2. Department Accountant 2. Giry Attorney
� 3. Department Director 3. Mayor Assistant
� 4. Budget Director 4. Cfty Council .
5. Ciry Clerk
6. Chief Accountant, Finance and ManagemsM Services
� ADMINISTRATIVE ORDERS (all others)
� 1. Department Director
� � 2. Ciry Attorney
3. Finance and ManagemeM Servic�s Director
4. City Clerk
TOTAL NUMBER OF SICiNATURE PAGES
Indicate the �of peges on which signatures are required and pap•rclip or fle�
� � �sch of thsse papes.
°� � ACTION RE�UESTED
Describe what the project/request seeks to a�omplish in either chronologi-
� cal order or order of importance, whichever is moat appropriate for the
� issue. Do not write �mplete senter�es. Begin each ftem in your list with
� � a verb.
�
RECOMMENDATIONS
Complete ii the issue in question has been presented before any body, public
� � or private. � � �
� SUPPORT3 WHICH COUNCIL OBJECTIVE?
� Indfcate which Council objecUve(s) you� projecUrequest supports by Iisting
ths key word(s) (HOUSINR, RECFiEATION, NEIOH80RHOODS, ECONOMIC DEVELOPMENT,
BUDCiET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.)
.� ,
PERSONAL SEAVICE CONTRACTS:
This information wiil be uaed to determine the city�s Ifability for workers c�mpensation claims, taxes and pr�sr civfl ssrvk:e Mrin� rules.
INITIATINCi PROBLEM, ISSUE, OPPORTUNITY
Expleun the situation or �nditions that croated a need for your project
or request
:, � ADVANTAQES IF APPROVED
Indicate whether this is simply an annual budget procedure required by Iaw/
� charter or whether there are specipc waya in which the Ciy of Saint Paul
-� and Its citizens will benefit from this project/action.
:� # DISADVANTAGES IF APPROVED
What negative effects or major changes to existing w past processes might
� this projectirequest produce if R is passed (e.g., traffic delays, noise,
�� tax increases or aasessmentsj? To Whom? When? For how Iong7
� DISADVANTAGES IF NOT APPROVED
� What will be the negative consequencss if the promised action is not
f approved? Inability to dsliver service? Continued high traffic, noise,
i acddent rate? Loss of revenue?
FINANCIAL IMPACT
Although you must taibr the information you provide here to the issue you
are,addressing, in yene�sl you must answer two questlons: How much is it
�, z going to cost7 Who is going to pey?
�;
¢;
��
c�