HomeMy WebLinkAbout7.c. Approve Ordinance Pledging Full Faith & Credit of City for Port Authority 1994D Bond Issue . CITY OF ROSEMOUNT
'' EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: June 7, 1994
AGENDA ITEM: Approve Ordinance Pledging Fuli Faith & AGENDA SECTION:
Credit of City for Port Authority 1994D Bond Issue New Business
PREPARED BY: , Jeff May, Finance Director AGENDA I�.��
� � � ( �
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 safe 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 timety
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 AUTHORtTY TO
PLEDGE THE FULL FAITH AND CREDIT OF THE CITY TO GENERAL OBLtGATION BONDS.
COUNCIL ACTION:
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DAI�OTA GOUNTX, MII�NESOTA
ORpINANC� NO.
AN �R.DTNA1�tCE AUTHORIZING THE ROSEMaUNT PORT AUTHORITY
Ta PL�GE THE FULL FAITIi AND CREDIx 4F THE CITY T0
ISSUE GENERAL 08LZG.'�TION BONDS
THE GITY CGtUNCIL c7F THE CZTY OF ROSEMOUNT OR.DAIN:
SECTIOI�T =, pursuant tQ and in accordance wzth the prc�visions af
this ordinance and Minneso�a Statut�s, §46�.048 t� 469.065 and
�469.p813 the issuance of gen�ral abligation bQnds by tize
Rosemount Port Authority (the "Authority"} in the aggzegate
pri.ncipal amount vf $1, 630,000 S.s h�reby au�horiz�d and faund to
be pro�er; and said bonds shall be issu�d and soid for the
purpose cf securing funds as needed, in said aggr�gat� amount, to
dafray the costs �tnd expenses necessazily ir►curr�d and to b�
incurred to finance sa.te pzeparation ccsts in connection with the
creatian of a development park. The pl�dge of the fu17, faith,
credit and resQuraes of the City as security for the bonds i$
hereby au�thorized. Additianal t�rms �nd condi�ions of the bc�Ilds�
includiz�g intarest rate, datA, denomination, place of paym�nt,
fazm, and m�:tur�ty scheduled and provision for th.e sale t2y:ereof
shalz he d�termined by th� Board of Gommissianers of the �
AuthQrity pu�suant to resalu�.ion.
SECT2oN Iz. This vrdinance shaZ7. take effect and be in force
;fo2lowing its passage and publication.
Adopted thi.s 7th day of June, ].99�k.
E. S. MeMenamy, Mayor
ATTEST:
Susan M, Wal�h, City Clerk
Motion by: Seconded by:
Voted in favor: ----- -
vo�ted against;
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