92-7910R62
RESOLUTION NO. 7910
RESOLUTION RELATING TO GROSS REVENUE
RECREATIONAL FACILITIES BONDS OF 1979:
PROVIDING FOR THE DEFEASANCE OF THE BONDS
BE IT ENACTED by the City Council of the City of Richfield, Hennepin
County, Minnesota (City) as follows
Section 1. Background: Findings.
1.01. The City has by Resolution 6059 (Resolution) issued and sold its
$1,300,000 Gross Revenue Recreational Facilities Bonds of .1979, dated May 1, 1979
(Bonds) to provide financing for Rich Acres Municipal Golf Course, all pursuant to
l~linnesota Statutes, Chapter 475 and Laws 1979, Chapter 1 (Act) . The Bonds
maturing on November 1, 1994 and thereafter are subject to redemption and
prepayment on November 1, 1993 (Redemption Date } and on any interest payment
date thereafter at a price of par plus accrued interest . The outstanding principal
balance of the Bonds is $795,000. The Bonds mature. on November 1 in the years
1992 through 2000, both dates inclusive.
1.02. The City's staff, with the advice of its financial advisers, Evensen
Dodge, Inc. (Financial Adviser), have determined that there exist and are available
in various funds of the City monies which if invested in United States Special Local
Government Securities (BEGS) or other direct obligations of the United States
Government will provide adequate funds to defease and provide for the payment of
the principal and interest on the Bonds at the times and in the amounts necessary.
1.03. It is found and determined that it is in the best financial interest of the
City, its recreational program and Rich Acres Golf Course that the Bonds be
defeased and: provision made for their payment as authorized by the Act.
1.04. It is further found and determined that the Bonds are to be called for
redemption and prepayment on November 1, 1993 .
Section 2. Escrow: Defeasance.
2.01. To accomplish the defeasance of the Bonds there is established an
escrow account (Escrow Account) with American National Bank and Trust Company,
a suitable financial institution in the state whose deposits are insured by the Federal
Deposit Insurance Corporation and whose combined capital and surplus is not less
than $500,000. A form of escrow agreement (Escrow Agreement) has been presented
to and reviewed by this Council. The form of the Escrow Agreement is approved .
The Mayor and City Manager are authorized and directed to execute and deliver the
Escrow Agreement on behalf of the City.
2.02. As of the date of execution of the Escrow Agreement (Transfer Date)
there will be and are hereby transferred, pledged and appropriated to the Escrow
Account the following monies (Funds)
(a) from the Golf Course Operating Fund, the sum of $250,000;
(b) from the CATV Program Fund the sum of $600,000.
It is estimated that the sum total. o'f the Funds herein appropriated, together with
monies on hand in the debt servic and reserve funds for the Bonds, is adequate
when invested as herein provided ~o pay the principal of and interest on the Bonds
on the Redemption Date.
2.03. The Funds are to be it
United States Government maturin€
interest at such rates as may be re
the Escrow Account, to pay princil
Redemption Date. The Funds ma'
section, except that any surplus f
Redemption Date is to be transferr
2.04.
jested in SLGS or other direct obligations of the
or callable by the City in such dates and bearing
luired to provide, together with other funds in
31 and interest on the Bonds prior to and on the
be used only for the purposes stated in this
.nds remaining in the Escrow Account after the
d to the City for the purposes stated in Section
2.04. The appropriation fry
Escrow Account for purposes of the
the net revenues of the Golf Cou
annum. The term "net revenue
Repayments of the advance are
Iv'ovember 1, 1993 and ending No'
attached as Exhibit A.
n the CATV/Program Fund is an advance to the
defeasance of the Bonds and is to be repaid from
se Fund with interest at the rate of 6.50$ per
" has the meaning given by the Resolution .
~ be made in annual installments commencing
ember 1, 2000 in accordance with the schedule
2.05. On the Transfer Date'~~all pledges, covenants and other rights granted
by the Resolution to holders of the (Bonds will cease and the gross revenues of Rich
Acres Golf Course will no longer be subject to the terms of the Resolution.
Section 3 . Purchase of Seculrities .
3.01. The Financial Consultant is authorized and directed to arrange for the
purchase of SLGS or other direct obligations of the United States Government in the
amounts and of the nature contemplated by Section 2. The Mayor and City Manager
are authorized and directed to execute the necessary contracts for the purchase of
the government obligations. I~
3.02. The appropriate officers of the City and the Financial Consultant are
authorized to execute all documents and certificates necessary to carry out the
purposes of this Resolution. ',
Section 4. Redemption of Bonds.
4.01. The Bonds are called, for redemption or prepayment on November 1,
1993.
4.02. The form of the Notice' of Call for Redemption is attached to the Escrow
Agreement .
Passed by the City Council of the City of Richfield this 24th day of August,
1992.
r`
Mayor, Martin ~~ sch
Attest
~~
Q
Clerk, Thomas Ferber
L:;};i BIZ ,~
YEAR
2993
1994
1995
1996
1997
1998
1999
2eoo
PRIT'CIFAL
60,000.00
65,000.00
70,000.00
75,000.00
75,000.00
80,000.00
85,000.00
90,000.00
600,000.00
INTEREST
39,000.00
35,:00.00
30,8^.5.00
2b,325.00
~L,450.00
16,575.00
11,375.00
5, E50.00
186,550.0
TOTAL
DEBT
SERVICE
99,000.00
100,100.00
100,875.00
101,325.00
96,450.00
96,575.00
96,375.00
95,850.00
7E6,SSC.00
HALANCE
5600,000.00
540,000.00
475,000.00
405,000.00
330,000.00
255,000.00
175,000.00
90,000.00
0.00