HomeMy WebLinkAboutResolution 6830
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RESOLUTION NO. 683
RESOLUTION CONCEPTUALLY APPROVING CERTAIN
ACTION RELATING TO POSSIBLE PUBLIC SALE
OF GENERAL OBLIGATION REFUNDING BONDS
WHEREAS, the City of Orono presently has outstanding the
following:
Description
Improvement Bonds
Improvement Bonds
Improvement Bonds
Amount Dated Present NIC
of 1974 $1,700,000 9/1/74 6.7456%
of 1970-A 240,000 8/1/70 6.6285% -
of 1970-B 695,000 8/1/70 6.67530
WHEREAS, the City has been advised by Ehlers & Associates,
Inc., financial consultants to the city,. that the interest cost,to
the"city would be substantially reduced by refunding in advance of
maturity all outstanding bonds of the above issues, and that the
refunding program would, at present, be undertaken in such a manner
as to comply with the Minnesota Statutes, Section 475.67, and
applicable federal laws and Internal Revenue Service regulations.
relating to "arbitrage bonds",
NOW, THEREFORE, BE IT RESOLVED:
I. It is hereby found and determined to be in the best
interest of the city to proceed with a determination of whether
the advertisement of general obligation bonds for such purpose
should be undertaken.
2. The city shall retain Ehlers & Associates, Inc. for one
dollar ($1.00) and other good and valuable consideration to investi
gate further the possibilities of the sale of the general obligation
refunding bonds with all additional expenses to be paid by Ehlers &
Associates, Inc.
3. The city retains Faegre & Benson as special bond counsel
to investigate further on behalf of the city the possibility of the
proposed sale of the general obligation refunding bonds at no
expense to the city, since Ehlers & Associates, Inc. have agreed
to pay for any attorneys' fees incurred by the city related to
the general obligation refunding bonds.
s
• 4. That Ehlers & Associates, Inc. and Faegre & Benson
will present to the City of Orono at its regularly scheduled
meeting all additional information needed to determine whether
or not the sale of such general obligation refunding bonds should
be authorized by the City of Orono.
This resolution was passed by a vote of five ayes and 0
nays on May 10, 1976.
ATTEST:
i
Wa to enson,
Clerk/Administrator
•
•
(24,t,
Robert L. Searles, Mayor