HomeMy WebLinkAboutResolution 556Extract of Minutes of Meeting of the
City Council of the City of Orono,
Hennepin County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the
City Council of the City of Orono, Minnesota, was duly held at the City Hall
in said City on Tuesday the 10th day of September , 1974, at 7:30
o'clock P.M.
The following members were present: Mayor Searles, Councilmen
Butler, Massengale, and Paurus
and the following were absent: Councilman Welsh
Councilman P aurus introduced the following written resolution
and moved its adoption: RESOLUTION #556
RESOLUTION PROVIDING FOR PAYMENT OF COSTS
OF CONSTRUCTING WATER IMPROVEMENT NO. 1970 -LW -1 (A, B, C)
AND LEVYING TAXES FOR PAYMENT OF BONDS ISSUED THEREFOR
BE IT RESOLVED by the City Council of the City of Orono, Minnesota,
as follows:
1. The City of Orono has heretofore issued its $1,130,000 Improvement
Bonds, dated February 1, 1971 (the "Bonds"), the net proceeds of which were
$1,125,276, to finance part of the cost of Water Improvement No. 1970 -LW -1,
consisting of Project Nos. 1970 -LW -1A, 1970 -LW -1B and 1970 -LW -1C, which has
been completed at a total cost of $1,433,123.
2. This Council has heretofore levied special assessments against
property benefited by said improvement in the amount of $1,229,517. The City
has heretofore received prepayments and collections of said assessments in the
amount of $253,849.
3. Pursuant to Minnesota Statutes, Sections 429.091, Subd. 4, and
Chapter 8 of the City Ordinance, the City is required to apply the proceeds
of the Bonds, collections of special assessments, taxes and any other moneys
appropriated thereto to the payment of the costs of the improvement and to
credit subsequent collections of special assessments and taxes to the sinking
fund from which the Bonds are payable.
4. This Council hereby appropriates $256,801 (the difference between
the cost of the improvement and the proceeds of the Bonds and collections of
special assessments heretofore applied to construction costs) to the payment
of the costs of the improvement from the collections of special assessments for
4
the improvement deposited in the Improvement Bond Redemption Fund of the City
and the proceeds of any obligations hereafter issued to pay the costs of the
improvement. The City Treasurer is hereby authorized and directed to transfer
forthwith to the construction fund for the improvement from the Improvement
Bond Redemption Fund the sum of $230,000, being part of the amount of collec-
tions of special assessments hereto -fore received, the balance of $26,-801 to be
transferred at such times as prepayments will allow. In the interim the City
Treasurer is directed to transfer $26,801 from the General Fund of the City to
the construction fund for the improvement, to be repaid from prepayments and/or
other legal sources.
5. It is hereby determined that the collections of special assess-
ments heretofore levied for the improvement and not appropriated to the payment
of the costs of the project will be insufficient to pay the principal and interest
on the Bonds when due. For the purpose of providing for the City's share of the
costs of the improvement and to provide for payment of principal and interest on
the Bonds when due, there is hereby levied a general ad valorem tax on all of the
taxable property in the City as adjusted annually at approximately the below listed
schedule:
Year Collectible Amount of Lf
yy
1975
1976 20,000
1977 20,700
1978 20,300
1979 21,000
1980 21,500
1981 21,900
1982 22,100
1983
22,300
1984 22,200
1985 22,100
1986 21,800
1987 26,800
and the collections of such taxes are hereby appropriated to the Improvement Bond
Redemption Fund.
6. The City Clerk Administrator is hereby directed to advise this
Council before October 1 of each year of the amounts of connection charges and
other water revenues on hand that could be appropriated'to the Improvement Bond
Redemption Fund to permit the reduction of the foregoing tax. levies in accordance
with'Section 475.61,;Subd. 3, Minnesota Statutes.
T h E! motion for the adoption of the foregoing resolution was duly
seconded by Councilman Butler and upon vote being taken thereon the
following voted in favor thereof: Mayor Searles, Councilmen Butler,
�,Massengale, and Paurus.-
and .,the, ,following voted against the same: None
whereupon, said resolution was declared duly passed and.adopted.
'Y'1(
Robert L. Searle
s, Mayor,
';VNttestt:
Walter R. fiebon,,Clerk-Adm'inistrator