Resolution 03-05 Authorizing Bonding

WHEREAS, the City issued its $1,015,000 General Obligation Community Center Bonds, Series 1998 AND its $1,280,000 General Obligation Improvement Bonds, Series 2000, and

WHEREAS, the Series 1998 Bonds are callable on February 1, 2007 and any date thereafter at 100 (par) and the Series 2000 Bonds are callable on February 1, 2008 and any date thereafter at 100 (par), and 

WHEREAS, the City has been advised by Northland Securities, Incorporated (Northland Securities) that an advance refunding (refinancing) of said bond issue is possible based on interest rates presently available for the issuance of new bonds (the Refunding Bonds), and

WHEREAS, the City is authorized to negotiate the sale of refunding bonds pursuant to Minnesota Statutes, Section 475.60, Subd. 2, clause (5); and

WHEREAS, Northland Securities, has indicated a willingness to purchase the Refunding Bonds upon receipt from the City, County, and School District of various required information, and

WHEREAS, the City desires to effectuate the transaction with Northland Securities whenever market conditions are appropriate and Northland Securities has received the required information.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mountain Iron, Minnesota as follows:

1. That the Mayor and City Administrator are hereby authorized to approve the sale of the Refunding Bonds to Northland Securities provided that the net debt service reduction to be achieved by the City is at least $60,000 and Northland Securities advises that it has received the required information.

2. That within 14 days of the foregoing approval, this City Council will meet to adopt the necessary approval resolution drafted by bond counsel.

DULY ADOPTED BY THE CITY COUNCIL THIS 18th DAY OF JANUARY, 2005.