HomeMy WebLinkAbout4.a. Approve Ordinance Pledging Full Faith & Credit & Credit of City for Port Authority 1994D Bond ` CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: June 1 Q 1994
AGENDA ITEM: Approve Ordinance Pledging Full Faith & AGENDA SECTION:
Credit of City for Port Authority 1994D Bond Issue New Business
PREPARED BY: Jeff May, Finance Director AGENDA NO. �
� GC- -
ATTACHMENTS: Ordinance APPROVED BY:
Attached for your consideration is an ordinance that pledges the City's full faith and credit to
the Port Authority's bond issue for the improvements in the Business Park. This ordinance
allows the debt issued by the Port Authority to have the "General Obligation" prefix added to
their bonds. What this means to the City is that, although the bonds are projected to be paid
back through the sale of land in the Business Park, if necessary, the City may be required to
levy taxes to make the debt payments in the event that land sales do not occur in a timely
fashion. Having the G.O. backing allows the bonds to be sold at a much more attractive rate
than if it is not included. And, if the Council does not pass this ordinance, the debt will
probably not be issued at aIL
RECOMMENDED ACTION:
Motion to adopt AN ORDINANCE AUTHORIZING THE ROSEMOUNT PORT AUTHORITY TO
PLEDGE THE FULL FAITH AND CREDIT OF THE CITY TO GENERAL OBLIGATION BONDS.
COUNCIL ACTION:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
ORDtNANCE NO. XXI.3
AN ORDINANCE AUTHORIZING THE CITY OF ROSEMOUNT
TO PLEDGE THE FULL FAITH AND CREDIT OF THE CITY TO GENERAL
OBUGATION BONDS OF THE ROSEMOUNT PORT AUTHORITY
THE CITY COUNCIL OF THE CITY OF ROSEMOUNT ORDAIN:
SECTION i. Pursuant to and in accordance with the provisions of this ordinance
and Minnesota Statutes, §469.048 to 469.468 and §469.0813, the issuance of
general obligation bonds by the Rosemount Port Authority (the "Authority") in the
aggregate principal amount of S 1,630,000 is hereby authorized and found to be
proper; and said bonds shall be issued and sold for the purpose of securing funds
as needed, in said aggregate amount, to defray the costs and expenses necessarily
incurred and to be incurred to finance site preparation costs in connection with the
creation of a development park. The pledge of the full faith, credit and resources
of the City as security for the bonds is hereby authorized. Additional terms and
conditions of the bonds, including interest rate, date, denominatinn, ptace of
payment, form and maturity scheduled and provision for the sale thereof shall be
determined by the Board of Commissioners of the Authority pursuant to resolution. .
SECTION II. This ordinance shall take effect and be in force following its passage
and publication.
ADOPTED this 1 Oth day of June, 1994.
E.B. McMenomy, Mayor
ATTEST:
Susan M. Walsh, City, Clerk
Published this day of June, 1994 in the "Rosemount Town Pages".