2000-91.DOC CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: December 11, 2000 RESOLUTION NO: 2000-91
MOTION BY:
Senn SECONDED BY: Peterson
RESOLUTION APPROVING DEFEASANCE PROGRAM FOR
CERTAIN GENERAL OBLIGATION BONDS OF THE CITY
A. WHEREAS, the City of Chanhassen, Minnesota (the "City"), has duly issued and
presently has outstanding $835,000 of its General Obligation Tax Increment Bonds, Series
1993B dated October 1, 1993 (the "Series 1993B Outstanding Bonds"), $1,720,000 of its
General Obligation Tax Increment Bonds, Series 1998E dated August 1, 1998 (the "Series 1998E
Outstanding Bonds"), $3,415,000 of its General Obligation Tax Increment Refunding Bonds,
Series 1998F dated August 1, 1998 (the "Series 1998F Outstanding Bonds"), and $2,180,000 of
its Taxable General Obligation Tax Increment Refunding Bonds, Series 1998G dated August 1,
1998 (the "Series 1998G Outstanding Bonds"), ($835,000 in principal amount of the Series
1993B Outstanding Bonds maturing in the years 2001, 2002 and 2003 (the "Series 1993B
Refunded Bonds"), $1,290,000 in principal amount of the Series 1998E Outstanding Bonds
maturing in the years 2002 to 2004 (the "Series 1998E Refunded Bonds"), $710,000 in principal
amount of the Series 1998F Outstanding Bonds maturing in the year 2004, and $1,730,000 in
principal amount of the Series 1998G Outstanding Bonds maturing in the years 2002 and 2003
(the "Series 1998G Refunded Bonds") are hereinafter collectively referred to as the "Refunded
Bonds"), and has substantial asset balances in the debt service accounts or debt service funds, as
the case may be, for said Refunded Bonds; and
B. WHEREAS, it appears that by (i) the purchase of government securities which
are general obligations of the United States or agencies thereof in an amount sufficient so that the
receipts of principal and interest thereon will be adequate to pay all principal and interest on the
Refunded Bonds as such becomes due and (ii) the deposit of such government obligations,
together with any required beginning cash balance, with an independent escrow agent, the
security of the holders of the Refunded Bonds will be enhanced, and the remaining asset
balances in the debt service accounts or debt service funds, as the case may be, will be available
for any authorized expenditure of the City:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota, as follows:
1. Approval of Program; Authority to Purchase Securities. The defeasance program
prepared by Ehlers & Associates, Inc., is hereby approved. The City Manager is authorized to
proceed, at such time as she deems appropriate, with the purchase of the securities necessary for
the program.
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2. Approval of and Authorization to Execute the Escrow Agreement. The form of
Escrow Agreement by and between the City and US Bank Trust, N.A., in St. Paul, Minnesota, a
copy of which has been presented to the Council, is hereby approved, and the Mayor and City
Manager are authorized and directed to execute said Escrow Agreement on behalf of the City.
3. Certificate of Registration. Upon establishment of the Escrow Account, the City
Manager is hereby directed to provide a copy of this resolution to the County Auditor of
Hennepin County.
4. Call for Redemption; Notices. The Series 1993B Refunded Bonds, the Series 1998E
Refunded Bonds and the Series 1998G Refunded Bonds are hereby called for redemption on
February 1, 2002. The City Manager shall give published and mailed notice as required by law.
5. Original Security; Obligation to Levy Taxes. Nothing herein shall impair the
security originally provided to the holders of the Refunded Bonds, and the City recognizes and
affirms its obligation to levy ad valorem taxes.
Adopted this 11th day of December, 2000.
Mayor
Attest:
City Manager
YES
Mancino
Jansen
Senn
Labatt
Peterson
NO ABSENT
None None
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