13-006
CITY OF SHOREWOOD
RESOLUTION NO. 13-006
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
OF GENERAL OBLIGATION WATER REVENUE REFUNDING
BONDS, SERIES 2013A IN THE PROPOSED AGGREGATE
PRINCIPAL AMOUNT OF $2,270,000
BE IT RESOLVED
By the City Council of the City of Shorewood, Minnesota (the “City”), as
follows:
1. Background.
(a) Pursuant to Minnesota Statutes, Chapters 444 and 475, as amended (collectively,
the “Act”), the City issued the following obligations:
(i) General Obligation Water Revenue Bonds, Series 2005A (the
“Series 2005A Bonds”), dated June 1, 2005, in the original aggregate principal amount of
$1,525,000, the proceeds of which financed improvements to the City’s water enterprise
system, including reconstruction of a well house facility, purchase and installation of
control systems, and painting of the water tower, and which are callable on or after
January 1, 2013; and
(ii) General Obligation Water Revenue Bonds, Series 2006A (the
“Series 2006A Bonds”), dated November 1, 2006, in the original aggregate principal
amount of $1,450,000, the proceeds of which financed the construction of various
improvements to the City’s water system, and which are callable on or after
January 1, 2014.
(b) The City is authorized by Section 475.67, subdivision 3, of the Act to issue and
sell its general obligation bonds to refund obligations and the interest thereon before the due date
of the obligations, if consistent with covenants made with the holders thereof, when determined
by the City Council to be necessary or desirable for the reduction of debt service cost to the City
or for the extension or adjustment of maturities in relation to the resources available for their
payment.
(c) Section 475.67, subdivision 4, of the Act permits the sale of refunding
obligations during the six month period prior to the date on which the obligations to be refunded
may be called for redemption.
(d) Furthermore, the City is authorized by Section 475.67, subdivision 13, of the Act
to issue and sell its general obligation bonds to refund outstanding bonds when determined by the
City Council to be necessary and desirable.
(e) It is necessary and expedient to the sound financial management of the affairs of
the City to issue its General Obligation Water Revenue Refunding Bonds, Series 2013A (the
“Bonds”), in the proposed aggregate principal amount of $2,270,000, to (i) redeem and prepay the
outstanding Series 2005A Bonds in the aggregate principal amount of $1,035,000 on
March 6, 2013; and (ii) refund in advance of maturity and at their redemption date the
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Series 2006A Bonds, which are currently outstanding in the aggregate principal amount of
$1,280,000, of which $1,160,000 in principal amount will be called on January 1, 2014.
(d) The City is authorized by Section 475.60, subdivision 2(9), of the Act to
negotiate the sale of the Bonds, it being determined that the City has retained an independent
financial advisor in connection with such sale. The actions of the City staff and the City’s
financial advisor in negotiating the sale of the Bonds are ratified and confirmed in all aspects.
2. Sale of Bonds. It is necessary and expedient to the sound financial management of the
affairs of the City to issue the Bonds in the proposed aggregate principal amount of $2,270,000 pursuant
to the Act to refund in advance of maturity and at their redemption date the Refunded Bonds as herein
provided. The Bonds will be issued, sold and delivered in accordance with the terms of the Preliminary
Official Statement for the Bonds (the “Preliminary Official Statement”).
3. Authority of Financial Advisor. Northland Securities, Inc. is authorized and directed to
advertise the Bonds for sale in accordance with the Preliminary Official Statement. The City Council will
meet at 7:00 P.M. on Monday, January 28, 2013, to consider proposals on the Bonds and take any other
appropriate action with respect to the Bonds.
4. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond
counsel for the City, is authorized to act as bond counsel and to assist in the preparation and review of
necessary documents, certificates and instruments relating to the Bonds. The officers, employees and
agents of the City are hereby authorized to assist Kennedy & Graven, Chartered in the preparation of such
documents, certificates, and instruments.
5. Covenants. In the resolution awarding the sale of the Bonds the City Council will set
forth the covenants and undertakings required by the Act.
6. Official Statement. In connection with the sale of the Bonds, the officers or employees of
the City are authorized and directed to cooperate with Northland Securities, Inc., and participate in the
preparation of the Preliminary Official Statement and a Final Official Statement for the Bonds and to
execute and deliver it on behalf of the City upon its completion.
ADOPTED
by the Shorewood City Council on this 14th day of January, 2013.
ATTEST: Scott Zerby, Mayor
_____________________________
Jean Panchyshyn, Deputy City Clerk
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