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HomeMy WebLinkAboutRESOLUTION NO. 3-3-88 RESOLUTION NO. Providing for the award and issuance of $300,000 General Obligation Corporate Purpose Bonds and providing for the levy of taxes to pay the same WHEREAS, notice of the proposed action of the City to institute proceedings for the issuance of $300 , 000 General Obligation Corporate Purpose Bonds (the "Bonds" ) of the City of Fairfax, Iowa (the °'City" ) for the purpose of paying the cost of the construction of works and facilities useful for the collection, treatment and disposal of sewage and industrial wastes in a sanitary manner; the construction of yiorks and facilities useful for the collection and disposal of surface waters and streams; the construction, reconstruction, improvement, extension and equipping of the. Municipal Waterworks System of the City; and the refunding of Warrants previously issued by the City to pay costs in connection with the, aforementioned improvements , was heretofore given in strict compliance with the provisions of Chapter 384 of the Code of Iowa , and the Council may proceed to, take additional action for the .issuance of the Bonds; and WHEREAS, notice of the sale of the Bonds was heretofore given in strict compliance with the provisions of Chapter 75 of the Code of Iowa; and WHEREAS, at the time and place named in the notice of sale, sealed gids were received and filed and thereupon open bids were called for and after all of the open bids had been received and the substance of such open bids noted in the minutes , sealed bids were opened and read and the substance of such sealed bids noted in the minutes; and WHEREAS, upon final canvass of all bids, the bid of ( A44z� oa� ri / ` - __, is the best such . bid proposing the lowest net interest cast to the City; NOW, THEREFORE, BE IT RESOLVED. by the Council of the City of Fairfax, Iowa , as follows: Section 1. The Council hereby determines to issue the Bonds, and the bid referred to in the preamble hereof be and the same is hereby accepted and that the Bonds, maturing on June 1 in each of the years , .in the respective principal amounts and bearing interest at the respective rates, as follows : Interest Interest Principal Rate Per Principal Rate Per Year Amount T Annum Year - Amount Annum - 1989 $20, 000 _ s.Q _ o 1994 $30 , 000 1990 $20 , 000 _�? 1.995 $35 , 000 1991 $25 , 000 5. _% 1996 $35 , 000 41.3 1992 $25, 0006 ! _% 1997 $40 , 000 3 _o 1993 $30, 0d0 .5. _Q 1998 $40 , 000 be and the same are hereby awarded to the said bidder at the price specified in such bid , together w:.th accrued interest. -3- BELIN HARRIS HELMICK, ATTORNEYS, DES MOINES, IOWA Section 2. The form of agreement of sale of the Bonds be and the same is hereby approved and the Mayor and .Clerk are hereby authorized to accept and execute the same for and on behalf of the City and to affix -the City seal thereto. Section 3 . Pursuant to Division III of Chapter 384 of the Code of Iowa, the Bonds are hereby authorized to be issued in the aggregate principal amount as referred to in the preamble hereof . The Bonds shall be in the denomination of $5 , 000 each, or any integral multiple thereof, shall be dated the first day of March, 1988 , and shall become due and payable and bear interest as set forth in Section I hereof . The City Clerk is hereby designated as the Mond Registrar and Paying Agent for the Bonds and may be hereinafter referred to as the "Bond Registrar" or the "Paying Agent" . The City reserves the right to call and redeem part or all of the Bonds maturing in each of the years .1995 to 1998 , inclusive, prior to ;end in inverse order of maturity on June 1 , 1994 , or on any interest payment date thereafter on terms of par and accrued interest. If less than all of the Bonds of any like maturity are to be redeemed, the particular part of those Bonds to be redeemed shall be selected by the Bored Pegistrar by lot. The Bonds may be called in part in one or more units of $5 , 000 . If less than the entire principal amount of any Bond in a denomination of more than $5 , 000 is to be redeemed , the Bond Registrar will issue and deliver to the registered owner thereof, upon surrender of such original Bond, a new Bond or Bonds in any authorized denomination in a total aggregate principal amount equal to the unredeemed balance of the original Bond . Notice of such redemption identifying the Bond or Bonds (or portion thereof) to be redeemed shall be given not less than thirty and not more than forty-five days prior to the date upon which it is proposed to prepay the Bonds or any of . hem by sending a notice by certified mail to the registered owners thereof at the addresses shown on the City ' s regi^tration books. All of such Bonds as to which the City reserves and exercises the right of redemption and as to which notice as aforesaid shall have been given and, for the redemption of which funds are duly provided shall cease to bea;° interest on the redemption date. All of the interest on the Bonds shall be payable December 1, 1988 , and semiannually thereafter on the first day of June and December in each year . Payment of interest on the Bonds shall be made to the registered owners appearing on the bond registration books of the City at the close of business on the fifteenth day of the month next preceding the interest payment date and shall be paid by check or draft railed to the registered owners at the addresses shown on such registration books . Principal of the Bonds shall be payable in lawful money of the United States of America to the registered owners at their legal representatives upon presentation and surrender of the Bond or Bonds at the office of the Paying Agent _4_ BELIN HARRIS HELMICK, ATTORNEYS, CUE'S MOINES, IOWA The Bonds shall be executed on behalf of the City with the official manual or facsimile signature of the Mayor and attested by the official manual or facsimile signature of the City Clerk and shall have the City' s seal impressed or printed thereon, and shall be fully, registered bonds without interest coupons . In case any officer, whose signature or the facsimile of whose signature appears on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or such facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. The Bonds shall be fully registered as to principal and interest in the names of the owners on the registration books of the City kept by the Bond Registrar, and and after such registration, each Bond shall be transferable without cost to the registered owner thereof only upon the registration books of the City upon presentation to the Bond Registrar , together with either a written instrument of transfer 3at.isfactor. y to the Bond Registrar or the assignment form tbereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner . The record and identity of the owners of the Bonds shall be kept confidential as provided by Section 22 . 7 of the Code of Iowa . The Bonds shall not be valid or become obligatory for any purpose until the Certificate of Authentication thereon shall have been signed by the Bond Registrar . Section 4 , The form of Bonds shall be substantially as follows : -5- BELIN HARRIS HELMICK, ATTORNEYS, DE,S MOINES, IOWA (Form of Bond) UNITED STATES OF AMERICA STATE OF IO' A COUNTY OF LINN CITY OF FAIRFAX GENERAL OBLIGATION CORPORATE PURPOSE BOND No. RATE o, RATE MATURITY BOND DATE March 1 , 1988 T.he City of Fairfax, in the County of Linn, State of Iowa, for value received , promises to pay on the maturity date of this bond to or registered assigns, 'the principal, sum of THOUSAND DOLLARS in lawful money of the United States of America upon presentation and surrender of this band at the office of the City Clerk , Fairfax, Iowa thereinafter referred to as the "Bond Registrar" or the "Paying Agent" ) with interest on said sum, until paid, at the rate per annum specified ab(-ve from the date of this bond, or from the most recent interest payment date on which interest has been paid, on June 1 and December 1 of each year , commencing December 1 , 1988 , except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable hereto. Interest on this bond is payable to the registered owner appearing on the bond registration books of the City at the close of business on the fifteenth day of the month next preceding the interest 'payment date, and shall be paid by check or draft mailed to the registered owner at the address shown on such registration books . This bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Bond Registrar . This bond is one of a duly authorized series of bonds issued by the City of Fairfax, pursuant to and in strict compliance with the provisions of Division III of Chapter 384 and Chapter 75 of the Code of Iowa , 1987, and all laws amendatory thereof and supplementary thereto, and in conformity with a resolution of the City Council of the City duly passed, approved and recorded for the purpose of defraying the cost of the construction of works and facilities useful for the collection, treatment and disposal of sewage and industrial wastes in a sanitary manner ; the construction of works and facilities useful for the collection and disposal of surface waters and streams ; the construction, reconstruction, improvement , extension and equipping of the Municipal. Waterworks System of the City; and the refund .ng of Warrants previously issued by the City to, pay costs in connection with the aforementioned improvements . -6- BELIN' HARRIS HELMICK, ATTORNEYS,„ DES MOINES, IOWA The City of Fairfax reserves the right to call and redeem part or all of the bonds maturing in each of the years 1995 to 1998 , inclusive, prior to and in inverse order of maturity on dune 1, 1994 , or on any interest payment date thereafter upon terms of par and accrued interest. If less than all of the bonds of any like maturity are to be redeemed, the particular part of those bonds to be redeemed shall be selected by the Bond Registrar by lot . The bonds may be called in part in one or more units of $5, 000. If less than the entire principal amount of any bond in a denomination of more than $5 , 000 is to be redeemed , the Bond Registrar will issue and deliver to the registered owner thereof, upon surrender of such original bond, a new bond or bonds, in any authorized denomination, in a total aggregate principal. amount, equal to the unredeemed balance of the original bond . 1ot'lce of such redemption as aforesaid identifying t-he band or bonds (or portion thereof) to be redeemed ,shall be mailed by certified mail to the registered owners thereof at the addresses shown on the City' s registration books not less than 30 nor more than 45 days prior to such redemption date. All of such bonds as to which the City reserves and exercises the right of redemption and as to which notice as aforesaid shall have been given and for the redemption of which funds are duly provided, shall cease to bear interest on the redemption date. This bond is fully negotiable but shall be fully registered as to both principal and interest in the name of the owner on the books of the City in the office of the Bond Registrar. after which no transfer shall be valid unless made on said books and then only upon presentation of this bond to the Bond Registrar , together with either a written instrument of -transfer satisfactory to the Bond Registrar or the assignment form hereon completed' and duly executed by the registered owner or the duly authorized attorney for such registered owner . The City, the Bond Registrar and the Paying Agent may deem and treat the registered owner hereof as the absolute owner for the. ,. purpose of receiving payment of or on account of principal hereof, premium, . .if any, and interest due hereon and for all other purposes, and the City, the Bond Registrar and the Paying Agent shall not be affected by any notice to the contrary. And It Is Hereby Certified and Recited that all acts , conditions and things required by the laws and Constitution of the State of Iowa , to exist, to be had, to be done or to be performed precedent to and in, the issue of this bond were and have been properly existent, had, done and performed in regular and due form and time: that provision has been made .for the levy of a sufficient continuing annual tax cin all the taxable property within the City for the payment of the principal of and interest on this bond as' Ithe same will respectively become due; that the faith, credit, revenues and resources and all the real and p, ronal property of the City are irrevocably pledged for the prompt payment hereof, both principal and interest; and that the total indebtedness of the City, including this bond , does not exceed any constitutional or statutory limitations . -7- BELIN HARRIS HELMICK, ATTORNEYS, DE'S MOINES, IOWA IN TESTIMONY WHEREOF, the City of Fairfax, Iowa , by its City Council, has caused this bond to be sealed with the facsimile of its official seal, to be executed with the duly authorized facsimile. signature of its Mayor and attested by the duly authorized facsimile signature of its City Clerk, all the first day of March, 1988 . CITY OF FAIRFAX, IOWA (facsimile signature) Mayor Attest: facsimile si. nature __ City Clerk - Y_ (Facsimile Seal) On each bond there shall be a registration dateline and a Certificate of Authentication of. the Bond Registrar in the following forma Registration Date: _ BOND REGISTRAR ' S CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within-mentioned resolution. Isl Virginia Soukup City Clerk of the City of Fairfax, Iowa (Legend as to Abbreviations) The following abbreviations, when used in this bond , shall be construed as though they were -written out in full according to applicable .laws or regulations: TEN COM - as tenants in common UNIF GIFT MIN ACT TEN ENT - as tenants ,by the entireties _ Custodian JT TEN as joint tenants with right of (Cult) (minor ) survivorship and not as tenants under Uniform Gifts to Minors in common Ac (State) Additional abbreviations may also be used though not in the list above. BELIN' HARRIS HELMICK, ATTORNEYS, DE'S MOINES, IOWA An Assignment, in the form hereinafter set out, should be printed on each bond : ) ASSIGNMENT For valuable consideration, receipt of which is hereby acknowledged, the undersigned assigns this bond to PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (please print or type name and address of Assignee) and does hereby irrevocably appoint -6—n- the books kept for registration Attorney, to transfer the said bond thereof with full power of substitution° Dated : 14OT:ICE: The signature to this Assignment must correspond with Signature guaranteed : the name of the registered owner as it appears on this bond in every particular , without alteration or enlargement or any change whatever . -9- BELIN HARRIS HELMICK, ATTORNEYS, DES MOINES, IOWA Sect-ion 5 . The Bonds shall be executed as herein provided as sr,on after the adoption of this resolution as may be and thereupon they sna,'Il be delivered to the Bond Registrar for registration, au4--hentication and delivery to the purchaser, as determined by the coancil , upon receipt of the purchase price thereof, with accrued interest thereon, and all action heretofore taken in connection with the sale and award of the, Bonds is hereby ratified and confirmed in all res4pects. Section 6 . As required by Chapter 76 of the Code of Iowa , and for the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the interest on the Bonds as it falls due, and also to pay and discharge the principal thereof at maturity, there be and there is hereby ordered levied on all the: taxable property in the City in each of the years while the Bonds or any of them are outstanding, a tax sufficient for that purpose, and in furtherance of this provision, but not in limitation thereof , there be and there is hereby levied on all the taxable property in the City the following direct annual tax for collection in each of the following fiscal years , to-wit: For collection in the fiscal year beginning July 1, 1988 , sufficient to produce the net annual sum of $�4,,).oQ .; For collection in the fiscal year beginning July 1 , 1989 , sufficient to produce the net annual sum of $J,4�L,L)�L_; For collection in the fiscal year beginning July 1 , 1990 , sufficient to produce the net annual sum of $ 56 69F.00 For collection in the fiscal year beginning July 1 , 1991 , sufficient to produce the net annual sum of $ 37-0_339, Be) For collection in the fiscal year beginning July 1 , 1992 , sufficient to produce the net annual sum of $�} , 23 K od ; For collection in the fiscal year beginning July 1, 1993 , sufficient to produce the net annual sum of $_z4A P9,L 66—; For collection in the fiscal year beginning July 1, 1994 , sufficient to produce the net annual seam of $ 'J �Z, ob For collection in the fiscal year beginning July 1 , 1995 , sufficient to produce the net annual SUM Of $ a D6 For collection in the fiscal year beginning July 1, 1996 , sufficient to produce the net annual slum of $ 45 oqo . 00 For collection in the fiscal year, beginning July 1 , 1997 , sufficient to produce the net annual sum of BELIN HAIRRIS HELMICK. ATTORNEYS, DES MOINES, IOWA Section 7 . A certified copy of this resolution shall be 'filed with the County Auditor of Linn County, and said Auditor shall be and is hereby instructed to enter for collection and assess the tax hereby authorized . When annually entering such taxes for collection, the County Auditor shall include the same as a part of the tax levy for debt service fund purposes of the City and when collected, the proceeds of the taxes shall be converted into the debt service fund of the City and set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Bonds hereby authorized and for no other purpose whatsoever . The amount received by the City as accrued interest on the fonds shall be deposited into such special account and used to pay interest due on the Bonds on the first interest payment date. Section 8 . The interest or principal and both of them falling due in any year or years shall, if necessary, be paid promptly from current funds on hand in advance of taxes levied and when the taxes shall have been collected, reimbursement shall be made to such current funds in the sum thus advanced. Section 9 . It is the intention of the City that interest on the Bonds be and remain excluded from gross income for federal. income tax purposes pursuant to the appropriate provisions of the Internal Revenue Code of 1986 , as amended, and the Treasury Regulations in effect with respect thereto (all of the foregoing herein referred to as the "Internal Revenue Code" ) . In furtherance thereof the City covenants to comply with the provisions of the Internal Revenue Code as they may from time to time be in effect or amended and further covenants to comply with applicable future laws, regulations , published rulings and court decisions as may be necessary to insure that the interest on the Bonds will remain excluded from gross income for federal income tax purposes . any and all of the officers of the City are hereby authorized and directed to take any and all actions as may be .necessary to comply with the, covenants herein contained. The City hereby designates the Bonds as "Qualified Tax Exempt Obligations" as that term is used in Section 265 (b) ( 3 ) (B) of the Internal Revenue Code. Section 10 . All resolutions or parts thereof in conflict herewith be and the same are hereby repealed to the extent of such conflict. Passed and approved this 3rd day of_ March , 1988 . _.c Mayor w Antes : City Cl rk --•l l- BELIN HARRIS HELMICK, ATTORNEYS, CIES MOINES, IOWA on motion and vote the meeting adjourned. Mayor ,fittest : 4Ci y C _rk BELIN HARRIS HELMICK, ATTORNEYS, DES MOINES, IOWA