HomeMy WebLinkAbout35610 / 89-355 Res. #355
' The City Council of the City of Oshkosh, Winnebago County, Wisconsin,
met in regular, open, public session at its regular meeting place on November 2, 1989, at
7:00 o'clock P.M., with the following members present:
Thomas Binner, Robert Jungwirth, Don Kutchera, Kathleen Propp, Donald Pressley
and James Mather
and the following members absent:
Floyd Chapin
* * *
(Other Business)
The City Clerk stated that one purpose of the meeting was the considera-
tion of proposals received for the purchase of a $2,500,000 aggregate prineipal amount •
Tax and ftevenue Anticipation Note, Series 1989, of the City of Oshkosh, Winnebago
County, Wisconsin, pursuant to sealed bids.
Thereupon the following resolution, was introduced by
Kutchera and read in full, and, pursuant to motion made by
Kutchera and seconded by Propp , was
adopted by the following vote:
Aye: Jungwirth, Kutchera, Propp, Pressley, Mather
Present: Binner
Nay: None
Absent or Not Voting: Chapin
� RESOLUTION determining to borrow $2,500,000 and to issue
' a Tax and Revenue Anticipation Note, Series 1989, of the
City of Oshkosh, Winnebago County, Wisconsin, in such
amount, providing details, prescribing the form of note and
awarding said note.
WHEREAS, the Director of Finance of the City of Oshkosh, Winnebago
County, Wisconsin (the "City") has determined that during the remaining course of 1989
expenditures for general municipal expenses of the City may exceed receipts from time
to time from property taxes levied and state and federal aids by as much as $2,500,000;
and
WHEREAS, cities are authorized by the provisions of Section 67.12(1) of
the Wisconsin Statutes to borrow money and issue municipal obligations in anticipation of
the receipt oi such levied taxes and state and federal aids; and
WHEREAS, it has been determined that the City is in temporary need of
money in the amount of $2,500,000 for the purpose of providing funds for the payment of
general municipal expenses during 1989; and
WHEREAS, it is considered necessary and desirable by this City Council
that the City borrow $2,500,000 for the purpose of providing funds for the purpose afore-
said, said amount being less than sixty per cent (6096) of the aggregate amount of taxes
levied and state and federal aids to which the City is entitled, and that the City issue its
Tax and Revenue Anticipation Note, Series 1989 (the "Note") to evidence the obligation
thereby incurred; and
WHEREAS, the officials of the City have received proposals for the
purehase of the Note in the amount of $2,500,000 from local institutions; and
WHEREAS the proposal of First Wisconsin National Bank of Oshkosh and
associates, for the purchase of the Note in said aggregate principal amount at par,
bearing interest at the rate of six and forty hundredths per cent (6.4096) per annum is the
best proposal received;
NOW, TIiEREFORE, Be It Resolved by the City Council of the City of
Oshkosh, Winnebago County, Wisconsin, as follows:
Section 1. For the purpose of paying the cost of providing funds for the
payment of general municipal expenses and in anticipation of the receipt of levied taxes
and state and federal aids to be received during the current fiscal year there shall be
borrowed from First Wisconsin National Bank of Oshkosh and associates the sum of
$2,500,000, and to evidence such indebtedness the City shall issue its Note in the
aggregate principal amount of $2,500,000.
Section 2. The Note shall be designated "Tax and Revenue Anticipation
Notes, Series 1989", shall be in negotiable bearer form, shall be dated the date of
issuance, shall be in the denomination of $2,500,000, shall be numbered from 1, shall bear
interest at the rate of six and forty hundredths per cent (6.4096) per annum payable at
maturity or upon prepayment, and shall mature as to principal on January 15, 1990.
The Note shall be subject to prepayment at the option of the City, as a
whole, on December 1, 1989, and on any day thereafter, at a prepayment price of par
plus accrued interest to the date fixed for prepayment.
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� Notice of any such prepayment shall be given by registered or certified
' mail, postage prepaid, to the above named purchaser, not less than five (5) days prior to
the date fixed for prepayment, unless the holder of the Note shall have waived the
requirement for such notice in writing.
The Note shall be signed by the City Manager of the City by his manual or
facsimile signature and by the City Clerk of the City, and sealed with the official seal of
the City. Both principal of and interest upon each Note shall be paid directly to the
holder thereof by the City Treasurer, which is hereby appointed paying agent and
registrar for the Note, in lawful money of the United States of America, upon the
presentation and surrender of the Note.
Section 3. The Note shall be in substantially the following form, the
omissions to be appropriately completed when the Note is prepared:
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` UNITED STATES OF AMEKICA
State of Wisconsin
County of Winnebago
City of Oshkosn
TAX AND REYENUE ANTICIPATION NOTE, SERIES 1989
NO. 1 $2,500,000
HNOW ALL MEN BY THESE PRESENI'S: That the City of Oshkosh in the
County of Winnebago, State of Wisconsin (the "City"), hereby acknowledges itself to owe
and for value received promises to pay to bearer, solely from the source hereinafter
identified, the principal sum of Two Million Five Hundred Thousand Dollars ($2,500,000),
payable on January 15, 1990, except as the provisions hereinafter set forth with respect
to prepayment may and become applicable hereto, and, from the same source, interest at
the rate of six and forty hundredths per cent (6.4096) per annum on the unpaid principal
amount hereof from the date hereof until the principal amount hereof shall have been
fully paid, such interest and principal being payable directly to the bearer by the City
Treasurer, as paying agent (the "Paying Agent") for the City, at maturity or upon
prepayment, only upon presentation and surrender of this Note to the Paying Agent.
For the prompt payment of this Note with interest hereon as aforesaid the
City has pledged a sufficient amount of taxes levied and state and federal aids to be
received during the current fiscal year, which monies, as reeeived, shall be deposited into
a separate fund to be used solely for such purpose.
This Note constitutes an authorized issue in the aggregate principal amount
of $2,500,000 (the "Note"), issued to evidence the obligation incurred by the borrowing of
money in such aggregate amount for the purpose of paying the cost of providing funds for
the payment of general municipal expenses, pursuant to and in all respects in compliance
with Section 67.12(1), Wisconsin Statutes, and a resolution adopted by the City Council of
the City on November 2, 1989, and entitled, "RESOLUTION determining to borrow
$2,500,000 and to issue a Tax and Revenue Anticipation Note, Series 1989, of the City of
Oshkosh, Winnebago Cnunty, TiFlisconsin, in su�h amour.t, providing details, prescribing the
form of note and awarding said note."
This Note is subject to prepayment at the option of the City, as a whole, on
December 1, 1989, and on any day thereafter, at a prepayment price of par plus accrued
interest to the date fixed for prepayment.
Notice of any such prepayment shall be given by registered or certified
mail, postage prepaid, to First Wisconsin National Bank of Oshkosh, not less than five (5)
days prior to the date fixed for prepayment, unless the holder hereof shall have such
notice in writing. When so called for prepayment, this Note will cease to bear interest
on the specified prepayment date, provided funds for prepayment are on deposit with the
Paying Agent on that date.
It is hereby certified, recited and declared that all acts, conditions and
things required by law to be done, exist, happen and be performed precedent to and in the
issuance of this Note have been done, have existed, have happened and have been
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' performed in due time, form and manner as required by the Constitution and statutes of
the State of Wisconsin. `
IN WITNESS WHEREOF, the City of Oshkosh, Winnebago County,
Wisconsin, by its City Council, has caused this Note to be executed by its City Manager
by his manual or facsimile signature and by its City Clerk, and its official seal to be
impressed hereon, all as of the 8th day of November, 1989.
City Clerk City Manager
(SEAL)
Section 4. The City has levied $10,014,038 for property taxes in the year
1988, collectible in 1989, of which $9,984,595 has been collected to the date hereof.
The City is entitled to revenue from the State of Wisconsin in the amount of $ 11,390,768
of state aids during 1989, of which $ 3,548,702 has been collected to the date hereof.
The City is entitled to $419,215 of federal aids during 1989. In order to provide for
the funds to pay the interest on the Notes and to pay and discharge the principal thereof
at maturity, the City hereby pledges an amount sufficient for said purposes from the
aforesaid taxes levied and to be collected and state and federal aids to be received in the
fiscal year 1989, but subsequent to the dated date of the Note, such amount together
with the par amount of all other Tax and 8evenue Anticipation Notes of the City issued
in antieipation of 1989 tax receipts and revenues, being less than sixty per cent (6096) of
the total amount of taxes, state and federal sids aforesaid. Monies received from said
sources shall be kept in a separate and distinet fund to be used solely for paying the
principal of and interest on the Note, so long as the Note remains outstanding. The Note
shall be payable solely from the aforesaid taxes and state and federal aids, and shall not
constitute an indebtedness for the purpose of computing the constitutional debt
limitation of the City.
Section 5. The City Clerk of the City, as Note Registrar, shall keep,
maintain and preserve an adequate and correct regist�r account �f the Note originally
issued and prepaid, and all payments and other transactions relating thereto.
Section 6. The sale of the Note to First Wisconsin National Bank of
Oshkosh and associates, at the price of $2,500,000, is hereby confirmed. When the Note
shall have been prepared and executed, the same shall be dated and delivered by the City
Treasurer of the City to the purchaser upon receipt of $2,500,000.
Section 7. The principal proceeds from the sale of the Note shall be used
only for the purpose of paying the cost of providing for the payment of general munieipal
expenses.
The City recognizes that the purchasers and holders of the Note will have
accepted it on, and paid therefor a price which reflects, the understanding that interest
thereon is exempt from federal income taxation under laws in force at the time the Note
shall have been delivered. In this connection the City agrees that it shall take no action
which may render the interest on the Note subject to federal income taxation and that
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' the principal proceeds of the sale of the Note shall be devoted to and used with due
diligence for the payment of the expenses for which the Note is herein authorized to be
issued.
The City Manager, the City Clerk, the City Treasurer and the Director of
Finance of the City, or any of them, are hereby authorized to execute on behalf of the
City an Arbitrage Certificate and Agreement or a Certificate and Agreement With
Respeet to Tax Exemption or a similar certificate and agreement to assure the purchaser
and holder of the Note that the proceeds of the Note are not expected to be used in a
manner which would or might result in the Note being an "arbitrage bond" under Section
148 of the Internal Revenue Code of 1986 or the regulations of the United States
Treasury Department currently in effect or proposed. Such Arbitrage Certificate and
Agreement or Certificate and Agreement With Respeet to Tax Exemption or similar
certifieate and agreement shall eonstitute a representation, certifieation and covenant
of the City and is incorporated herein by reference, and no investment of Note proceeds
or of moneys accumulated to pay the Note herein authorized shall be made in violation of
the expectations prescribed by said Arbitrage Certificate and Agreement or Certificate
and Agreement with Respect to Tax Exemption or similar certificate and agreement.
The City hereby agrees to create a fund into which shall be deposited in
trust, any investment earnings on the proceeds of the Note which must be rebated, if
any, together with the earnings thereon, to the United States.
Section 8. If any section, paragraph or provision of this Resolution shall be
held to be invalid or unenforceable for any reason, the invalidity or unenforceability or
such section, paragraph or provision shall not affect any of the remaining sections,
paragraphs and provisions of this Resolution.
Section 9. The City Manager, the City Clerk, the City Treasurer, the City
Finance Director and all other officers of the City are hereby authorized to execute all
documents and certificates necessary in connection with the authorization and delivery
of the Note.
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� Section 10. All ordinances, resolutions or orders, or parts thereof,
heretofore enacted, adopted or entered, in conflict with t`he provisions of this Resolution,
shall be and in the same are hereby superseded to the extent of such conflict, and this
Resolution shall be in effect from and after its passage.
Adopted November 2, 1989.
Approved November ___2__, 1989.
Recorded November 2 , 1989.
(SEAL)
f r'�
Mayor ..
Attest:
�. , �
City Cler
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STATE OF WISCONSIN )
) SS.
COUNTY OF WINNEBAGO )
I, Donna C. Serwas, hereby certify that I am the duly qualified and acting
City Clerk of the City of Oshkosh, Winnebago County, Wisconsin, and as such official I
further certify that attached hereto is a copy of excerpts from the minutes of the
meeting of the City Council of said City held on November 2, 1989; that I have compared
said copy with the original minute record of said meeting in my official custody; and that
copy is a true, correct and complete transcript from said original minute record insofar
as said original record relates to the $2,500,000 Tax and Revenue Anticipation Note,
Series 1989, of said City.
WITNESS my official signature and the seal of said City this 3rd day of
November 1989.
(/' V�vt�u21 �� ,�U�.����
City Clerk
(SEAL)
SUB�4ITTED ��
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