HomeMy WebLinkAboutOrdinance 08-1978 .,�, , x • � -
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„ � ORDINANCE NO. 8-78
AN EMERGI:NCY bRDINANC� PROVID3NG �OR
• ISSUANCE OF $590,000
' GENERAL OBLIGATION REFUNDING BONDS OF 197�3
�E IT ORDAINED DY THE CTTY OF' DROOit�NG�, 50UTFI D�i1KOTAt
� Section l. The City has heretofore published a notice
of sale on $600 ,000 General Obligation Refunding nonds of 1978
which notice of sale was published for two successive weeks in
the local newspaper and for one week in Commercial West. The
bids in the attached Exhibit A were received at the office of the
City' s Financial Officer in the City Hall on Tuesday, May 9 ,
1978 at 10: 00 A.M. , C.D.T.
. Merrill Lynch Whitp Weld Capital
Section 2. The bid of Markets Group in Minneapolis �
Minnesota to purchase the $$So ,000 General Obligation Refund-
ing Bonds of 1978 of the City in accordance with the notice
of bond sale at the rates of interest hereinafter set forth
• at the price of $ 590,000 is hereby accepted.
� � Section 3. The City of Brookings shall forthwith .
issue $ 590,000 General Obligation Refunding IIonds of 1978 of
the City, ("Refunding Bonds" ) in accordance with the terms and
• at the rates of interest hereinafter set forth to aclvance re-
�und tlze. outstandinq Genexal Ob].igation Nursing Home Bonds of
1973, 8ated November 1, 1973 (hereafter referred to as the
� "Nursing Home Bonds") and the General Obligation Library Building
Bonds�� of 1975, dated October 1, 1975 (hereinafter referred to
as the "Library Bonds") . The Nursing Home Bonds and the
' Library Bonds are hereinafter sometimes collectively referred
to as the "Refunded Bonds" . Said refunding is pursuant to �
Chapter 6-8A, South Dakota Complied Laws o£ 1967 ("the Act") .
� Section 4. It is hereby fourid, determined and
declared that the refunding of the Refunded Bonds shall �
result in a net reduction of interest costs and other
• economies to �he City totaling appro�cimately $�p2 ,000 .
all in accordance with purposes for which said Refunding
. Bonds may be issued under the Act, and that all limitations
imposed under the Act upon issuance of the Refunding� Bonds .
willfhave been met.
• Section 5. The Refunding Bonds shall be negotiable
. c4upon general obligations of the City, shall be i3ated N,ay l, .
� 1978 and shall be payable as to principal and interest at the
First t' � �
, n S�_ Paul � ,�innPGnta , or any �uccessor pay ng aqent
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duly appointed by the City. Said bonds shall be llg in number
and numbered from 1 to llg , both inclusive, in the denomina-
tion of $5,000 each. Said bonds sha11 mature serially, lowest
numbers first, on October 1 in the years and amounts and bearing .
the serial numbers set forth below. Said bonds bear interest
payable April l, 1979 and semiannually thereafter on October 1
and April 1 of each year, at the respective , rates per annum
set opposite said maturity years:
Maturity Years Amount Serial Numbers Interest Rates
, 1979 $50,000 1-10 5.OQ�
1980 $50,000 11-20 5. 00�
1981 $50,000 21-30 5. 00$
� 1982 $50,000 31-40 5. 00$
19II3 $60 ,000 41-52 5. 00$
1984 $60,000 53-64 5. 00$
� 1985 $60�,000 65-76 5. 00�
1986 � $70 ,000 77-90 � ' S.00� .
� 1987 $70,000 91-104 5.10$
1988 $70,000 105-118
Section 6. All Refunding Bonds maturing in the years
• 1988 and thereafter (bonds numbered 105 to 118 , both inclusive)
shall be subject to redemption and prepayment at the option of
the City in inverse order of serial numbers on October l, 1987
and on any interest payment date thereafter at par and accrued
interest. Not less than thirty days prior to the date speci-
fied for redemption of any of said prepayable bonds , the City
Finance Officer shall mail to the bank at which principal and
interest are then payab.le and to the holder of said pre�ayable
bonds, if known, a notice that said bonds have been called for
redemption and prepayment and published notice shall be given
in accordance with law. The City Finance Officer and his suc-
cessors in office are hereby authorized and directed to maintain
a record of the names and addresses of the holders of said �
prepayable bonds, so far as such information is made avail-
able to them, for the purpose of mailing such notices of
redemption.
Section 7. The Refunding Bonds and interest coupons
to be issued hereunder shall be in substantially the following
form:
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UNITED STATES OF AMERICA •
STATE OF SOUTH DAKOTA
COUNTY OF BROOKINGS
CITY OF BROOKtNGS
� GEN�ItX1L OT�LIGl'#TION It��'tTNU�NG nOND O�' 1978
. . $5,000
No.
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� KNOW ALL MEN BY THESEu��Dakotathhereby acknowledges
Brookings, Brookings County, So
itself to be indebted and for value received hereby promises
to pay to bearer the principal sum of FIVE THOUSAND DOLLARS
oil the lst -day of October, 19 ,
or if this bond is Prepayable
as stated below, on a date prior thereto on which thia bn�erest
shall have been duly called for prepayment, and to pay
on said principal sum at the rate of
. . percent ( �) per annum, from the date hereof wntil said
principal sum is paid or until this bond, if prepayable,
� has been duly called for prepayment and redemption. Said
interest is payable on April 1, 1979 , and semiannually
thereafter on each October 1 and April 1► lresentationmand ity
being payable in accordance with and urtenant hereto�. Both
surrender of. the interest coupons app
irat Nat���na1 Bank
principal and interest are payable at ��e F ` •
� of St. Paul � �
in St. Paul / MinnPRAtB � ln
any coin or currency of the United States of America which
on the respective dates of payment is legal tender for the
payment of public and private debts. For the prompt and full
. payment of such principal and interest as the same respec-
. tively becomeaveebeene andlareaherebyrirrevocablyXpledyed,rs
o� the City h
This bond is one of an issue in the aggregate prin-
� cipal amount of $590,000 , all of like date and tenor except �
as to serial number, maturity daur'osetofeprovidingnmonedeto
• tion privilege,
issued for the p p y
ac�vance refund the outstanding General Obligation Nursing Home
Bonds of 1973, dated November 1, 1973 an1975nofathebCitytion
' . Library Bonds of 1975, dated October 1, -
� �pursuant to and in accordance with the Constitution and Taws
of the State� of South Dakota thereunto enabling, including�
� ' Chapter� 6-8A, South Dakota Compilied Laws of 1967.
� � Bonds of this issue maturing in the years 1979 -
th`rough 1987 are payable on their respective stated maturity
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, dates wi�hout option of prior payment, but bonds having stated
maturity dat�s in the years 1988 and thereafter are each sub-
ject to redemption and prepayment, at the option o� the City
in inverse order of serial numbers on October l, 1987,
and any subsequent interest payment date, at a price of par
plus accrued interest. Notice of call for redemption shall
be mailed at least thirty days in advance of the date speci-
fied for redemption to the bank at which principal and interest
are then payable and to the holdeX, if known, of each bond to
be so prepaid and published notice shall be given in accordance
with law. Holders of prepayab�e bonds who wish to receive such
notice must register their names, addresses and bond serial
numbers with the City Finance Officer, at IIrookings, South .
Dakota.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND �
, AGREED that all acts, conditions and things required by the
Constitution and laws of the State of South Dakota to be done,
to exist, to happen and to be performed preliminary to and in
tf�e issuance of this bond in order to make it a vala.d and �
binding general obligation of said City, according i�o its �
terms, have been done, do exis�t, have happened and have been
performed in regular and due iorm, time and manner as so
required; , that this bond has been duly issued under the
authority of Chapter 6-8A, South Dakota Compiled Laws; and
that prior to the issuance hereof, u�der and subject to the
provisions of Chapter 6-8A, South Dakota Compiled Laws, the
City Commission has caused to be levied annually without
limitation as to rate or amount, upon all taxable property
of the City, in addition to other authorized taxes, a sum
sufficient to pay the princigal of and interest on the bonds .
• of this issue until they have been fu�.1y paa.d, satisfied
and discharged; and that the issuance of this bond did not
cause the indebtedness of said City to exceed any consti-
tutiorial or statutory limitation.
IN WTTNESS WHEREOF the City of Brookings, Brookings
County, South Dakota, by its City Commission has caused this
bond to be executed in its behalf by the facsimile signature
of the Mayor and the manual signature of the City Finance
' Of�icer, countersigned by an attorney residing i.n and duly
licensed to practice in South Dakota, sealed by a facsimile of
its official seal printed thereon, and registered and numbered
as required by law, and has caused the interest coupons appur-
tenant hereto to be executed and authenticated by the fac-
simile signatures of said officers , and has caused this bond
to be d�ted as of May 1, 1978. ' '
(facsimile signature)
�� Mayor
Attest:
. Countersigned '
. Attorney
� City Finance Offa.cer �
� (SEAL)
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(Form of Coupon)
No. S
On the l.st day o� April (Octaber) , 19 , ux�less
the bond described below is called for earlier redempti.on
the City of Brookings, Brookings County, South Dakota, will
pay to bearer at the �First National Ban of St- _ Panl
� � , in St. �Paul . Minnesota , the amount
shown hereon in lawful• money of the Un�ted States of �merica,
for the installment of interest then due on its General Obli-
� gation Refunding Bond of 1978, dated May 1, 1978, No. .
' (Facsimile Signature) � � (Facsimile Signature
City Finance Officer Mayor•
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Section 8. The �efunding Bonds shall be prepared
at the direction of the City Finance Officer and shall be
executed on behalf of the City by the facsimile signature of
its Mayor and the manual signature of its Finance Officer �nd
se�led with a f�csimile of its corporate seal printed thereon.
The interest coupons pertaining thereto shall be executed by
the printed, engraved or lithographed facsimile signatures
of the Mayor and City Finance Officer. After said bonds
have been so executed they shall be countersigned by
?pd d ,Qiyd "' �- ^' ----r, an attorney actually residing in the .
State of South Dakota and duly licensed to practice therein
pursuant to and in accordance with the provisions of Chapter
277, South Dakota Session Laws of 1968, whereupon said bonds
shall be delivered to the City Finance Officer who shall -
register them in the bond register as required by law. When _ .
the bonds have been so prepared and executed and registered,
� they shall be delivered by the City Finance Officer• to� the
. ` purchaser thereof upon receipt of the purchase price, and
the �purchaser shall not be required to see to the proper
� � application of the nroceeds.
Section 9 . Upon delivery of the Refunding Bonds �
and the payment therefor by the purchaser thereof ("Bond
Closing") the proceeds of the sale of the Refunding Bonds,
� • less any accrued interest and �premium received thereon from
' the� purchaser thereof (unless used to helg fund said Escrow
� Fund) , anci less such bond proceeds (if any) as .may be used to
pay issuance expenses, plus other available municinal funds
� estima�ed at $ 138,690.85 as may be required to adequately
fund the Escrow: Fund for the purposes set forth in Section 10
below shall be credited to and are hereby pledged anc3 ir-
revocably appropriated to an Escrow Fund hereby established to
be used solely to pay theprincipal of and the interest and �
premium on the Refunded Bonds as hereinafter provided.
Section 10. Upon Bond Closing, the Escrow Fund,
together with the cash and investments therein shall be held
in escrow with the Northwestern Y�ational Bank of Sioux Falls,
in Sioux Falls, South Dakota, ( "Escrow Agent") , hereby �
found to be a suitable bank for such purpose under the Act,
and certain sums in said Fund shall be simultaneously in- '
vested in Federal �ecurities permitted under the Act maturing
, . or callable at the option of the holder on such dates and
� bearing interest at such rates as shall be required to provide
sufficient funds, together with any cash or other funds
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retained in the Escrow Fund, ("Escrow Deposit"-) to pay when
. due the interest to accrue on each obligation refunded to
its maturity or prior redemption date if called for pre-
payment as herein provided, and any redemption premium, and
� • to pay the principal amount of each such obligation at
. maturity or such redemption date, and the monies in said
Escrow Fund shall be used solely for the purposes herein
� � set forth and for no other purpose, except that any surplus
in said Escrow Fund may be remitted to the City, all in
accordance with an agreement (the "Escrow Agreement")
between the City and the Escrow Agent, a form of which agree-
� ment is on file in the office of the City Finance Officer;
and the Mayor and the City Finance Officer are hereby auth-
orized and directed to execute such Escrow Agreement on �
behalf of the City. � .
� � Section 11. Until retirement of the Ref�nded
Bonds, all provisions heretofore made for the security
thereof shall be observed by the City and all of its officers
� ' and agents. However, the City Commission hereby finds,
determines and certifies to the County Auditor of Brookings �
County that the proceeds of the sale of the Refunding Bonds,
. • together with other funds available and appropriated to the
. Escrow Fund will be sufficient, together with the earnings
. on the investment of such funds in said Escrow Fund to pay
when due all of the principal of, interest and redemption
� premium, if any, on the Refunded Bonds. Accordingly, upon
• Bond Closing the County Auditor of Brookings County is hereby �
authorized and .directed to the extent and in the manner
permitted by law to cancel forthwith� or if necessary from
. year to year the taxes levied in the years 1978 through 1988
under Ordinance No. 23-73 and the taxes levied in the years
1978 through 1989 under Ordinance No. 20-75 for the payment
of principal of and interest on said Refunded Bonds and not
needed as a result of the establishment of the aforesaid �
Escrow Fund; and upon Bond Closing the City Finarice -
Officer is hereby authorized and directed to give said County
Auditor written notice thereof.
� Section 12. There is hereby created a "Refunding
• Bonds of 1978 Sinking Fund" to be used solely to pay the
' pXincipal of and interest and premium, if any, on the Re-� ' �
f�anding Bonds; and there is hereby levied a direct, annual;
ad vaiorem tax to be spread upon the tax roll.� fo� the years
and in- the amounts set £orth below, and collected with and
� as a part of other general. taxes oF the City in the reepect3ve
. ensuing collection years:
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Levy Cvllection
Year Year _ Amount
1978 1979 $99 ,000
1979 1980 84, $00
1980 1981 82 ,100
1981 1982 79,300
1982 1g8� 87 ,600
1963 1984 84 ,300
1984 1985 81, 000
1985 1986 88 ,700
1986 � 1987 84 , 800
1987 lggg 81, 000
Said taxes shall be irrepealable so long as any of the bonds
herein authorized are outstanding and unpaid, provided that
the City reserves the right and power to reduce or cancel
the levies in the manner and i:n the extent permitted '�y law
and if and only if the sums tlien in the Refunding I3onds oi 1978
Sinking Fund, are sufficient to pay when due the intere�st
and premium (if any) on and principal of the then outstand-
ing Refunding Bonds. There is hereby irrevocably, pledged
and appropriated and there shall be credited to the Refunding
Bonds of 1978 Sinking Fund (1) all uncollected taxes levied
in 1977 and pledged to either of the Sinking Funds• of the .
Re£unded Bonds pursuant to Ordinance Nos. 23-73 and 20-?5,
(2) all unexpended monies pledged to the Sinking Funds � �
of the Refunded Bonds pursuant to Ordinance Nos. 23-73 and
20-75, (3) the taxes herein levied, and (4) the accrued
ink�rest and premium on the Refunding Bonds to the extent
that said accrued interest and premium have not been appro-
priated to the Escrow Fund.
Section 13. The full faith and credit and taxing �
powers of the City shall be and are hereby pledged for the
prompt and full payment when due of the principal of and
. interest on the Refunding Bonds.
Section 14 . The General Obligation Td�irsing Home '
Bands of "1973 , dated November 1, 1973 , refunded hereunder
which mature in 1987 and thereafter shall be redeemed and
prepaid on November l, 1986 , in accordance with the
' terms and conditions set forth in the Notice of Call attached
hereto as Exhibit B, which terms and conditions are hereby
approved and incorporated herein by reference.
Section 15. The General Obligation Library Building
Bonds of 1975, dated October 1 , 1975, refunded hereunder which
mature in 1987 and thereafter shall be redeemed and prepaid
on October 1, 1986 , in accordance with the terms and
conditions set forth in the tlotice of Call attached hereto
as Exhibit C, which terms and conditions are hereby approved
and incorporated herein by reference.
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5ection 16 . The City �'inance Officer is hereby
authorized and directed forthwith t� cause to be mailed
the Notices of Call to the banks $t which principal and
� interest on the Refunded Bonds are payabl� and to the holders
of the Refunded Bonds to be so redeemed to the extent the
names, add�es��s and sesa.al nuiitt��rs of fit�ch hdlders have
been made available to him.
Section 17 . The City Finance Officer or anyone
designated by him to act in his behalf, is hereby authorized
and directed to purchase the appropriate United States
Treasury Securities, State and Local Government Series, from
t;ze proceeds of the. Refunding Bonds in accordance with the
provisions of this Ordinance and to execute all such documents
. required to effect such purchase in accordance with the pro-
posed U. S. Treasury Regulations (31- CIZF Part 344) published
� in the Federal Register on December 27, 1976.
Section 18 . The City Finance Officer is hereby
directed to file a certified copy of this Ordinance with the
County Auditor of Brookings County, South Dakota, together
with such other information as he shall require, and to obtain
from said �uditor his certificate that the tax levy for
Refunding Bonds will be spread in accordance with law and ,
that the tax levy for thallabeecancellednuponlreceipt o£terest
on the Refunded Bonds sh
notice from the City Finance Officer that the Escrow Depoait�
has been irrevocably deposited in the Escrow Fund to the
extent and in the manner required by this Ordinance.
Section 19 . The officers of the City are hereby
authorized and directed to prepare and furnish to the pur-
chaser of the Refunding Bonds, and to attorneys approving
the legality of the issuance thereof, certified copies of alI
proceedings and records of the City relating to said bonds
and to the financial condition and affairs of the City,
and such other affidavits, certificates and information
as are required to show the facts relating to the legality
and marketability of said bonds as the same appear from the
� books and records under their custody and control or as
otherwise known to them, and all such certif ied copies,
certificates and affidavits, including any heretofore •
furnished, shall be deemed r_epresentations of the City as •
to the facts �recited therein. .
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Section 20 . Tnis Ordinance is hereby found to be�
necessary for the immediate preservation of the public ,
peace, health, safety and support of the municipal govern-
ment and i�ts existing public institutions, wherefore an emer-
gency exists, and this Ordinance shall take effect imr.iediately
upon its pagsage �nd pubXf catian accordi,ng to law.
Passed first reading: May 9 , 1978
Passed second reading: May 16 , 1978
Published: /�'� w y / �j� / ^� ��
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�l�c..� - 1 �
. Mayor
Attest:
Ci in ce icer
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