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HomeMy WebLinkAbout32893 / 84-08e RESOLUTZON determining to borrow 596,000 and to issue to the lender Promissory Notes, Series 1984-C, of the City of Oshkosh, Wisconsin, in such amount, providing details, pre- scribing the form of note and levying taxes. WHEREAS, the City of Oshkosh, Winnebago County, Wisconsin, is in need of funds in the aggregate amount of 596,000, for the purpose of providing for the development, extension, enlargement, renovation, rebuilding, repair or improvement of projects undertaken for public purposes; and N7HEREAS, cities are authorized by the provisions of Section 67.12(12) of the Wisconsin Statutes to borrow money and issue promissory notes for the development, extension, enlargement, renovation, rebuilding, repair or improvement of projects undertaken for public purposes; and I�HEREAS, it is considered necessary and desirable by the City Council of said city that said city borrow 596,000 for the purpose of providing funds for the purpose aforesaid, and that said City issue to the lender its promissory notes to evidence the indebtedness thereby incurred; and WHEREAS, the officials of said city have neqotiated with Valley Bank of Oshkosh First Wisconsin National Bank Firstar Western State Bank for the borrowing of an aggregate sum of 596,000 and said lenders have offered to purchase the promissory notes of the city at the interest rate of 8.5 per cent per annum; e NOW, THEREFORE, Be It Resolved by the City Council of the City of Oshkosh, Wisconsin, as follows: Section 1. For the purpose of paying the cost of providing funds for the payment of general and current municipal expenses, there shall be borrowed from Valley Bank of Oshkosh, First Wisconsin National Bank, Firstar, Western State Bank, the sum of 596,000 and to evidence such indebtedness the City of Oshkosh, Winnebago County, Wisconsin (the "City") shall issue to such lender its Promissory Notes, Series 1984-C (the "Notes"), in the aggregate principal amount of $96,000. Section 2. The Notes shall be designated "Promissory Notes, Series 1984-C", shall be payable to the lender or lenders, shall be dated the date of their issuance, shall be of $24,000 denomination, shall be numbered consecutively 1 thru 4, shall bear interest at the rate of 8.5� per annum payable at maturity or upon prepayment, and shall mature as to principal on May 1, 1994. The Notes shall be subject to prepayment at the option of the City, as a whole on December 1, 1984, and on the first day of June or December thereafter, at the principal amount of each Note so prepaid and accrued interest to the date fixed for prepayment. Notice of intended prepayment shall be given by registered or certified mail to the lender named in the Note being prepaid and shal l be given not less than 5 days prior to the date fixed for prepaynent. The Notes shall be siqned by the City Manager of the City of Oshkosh and by the City Clerk, and sealed with the corporate seal 2 .J of the City. Both principal of and interest upon each Notes shall be paid directly to the lender by the Treasurer of the City, in lawful money of the United States of America, upon presentation and surrender of the Notes. The Notes may be transferred by presentation and surrender to the City Clerk, hereby designated as Note Registrar, together with a request for transfer and appropriate instruments of assignment. Upon receipt of such transfer request the City Clerk shall cause a new Note or Notes of authorized denominations to be issued to the assignee and the Note surrendered shall be cancelled. Section 3. The Notes shall be in substantially the following form, the omissions to be appropriately completed when the Note is prepared: (Form of Note) UNITED STATES OF AMERICA State of Wisconsin County of Winnebago City of Oshkosn _ PROMISSORY NOTES, SERIES 1984-C No. g KNOW ALL MEN BY THESE PRESENTS: That the City of Oshkosh, in the County of Winnebago, State of Wisconsin, hereby acknowledges itself to owe and for value received promises to pay to . . . , the principal sum of (S ), payable on the first day of June, 1994, with interest at the rate of 3 � oercent ( 8) per annum on the unpaid principal from the date hereof until the principal amount shall have been fully paid, such interest and principal being payable directly to the lender by the Treasurer of the City of Oshkosh at maturity or upon prepayment, only upon presentation and surrender of this Note. Notes of the issue cf-w'tiich this aoce is one are subject to prepayment at the option of the City of Oshkosh, as a whole, on December 1, 1984, and on the first day of June or December thereafter, at the principal amount of each note so prepaid and accrued interest to the date fixed for prepayment. For the prompt payment of this note with interest hereon as aforesaid and for the levy and collection of taxes sufficient for that purpose, the full faith, credit and resources of the City of Oshkosh are hereby irrevocably pledged. This note is one of an issue of 596,000, all of like date, issued to evidence the indebtedness incurred by the borrowing of maney in such amount for the development, extension, enlargement, renovation, rebuilding, repair or improvement of projects under- taken for public purposes, pursuant to and in all respects in compliance with Section 67.12(12) of the Wisconsin Statutes and a resolution adopted by the members of the City Council of said city on May 31, 1984, and entitled, "RESOLUTION determining to borrow 596,000 and to issue to the lender Promissory Notes, Series 1984-C, of the City of Oshkosh, Wisconsin, in such amount, providing details, prescribing the form of note and levying taxes." d It is hereby certified and recited that all conditions, things and acts required by law to exist, to be or to be done precedent to and in the issuance of this note have been, have existed and have been performed in due form and time; that the indebtedness of said city, including this note, does-not exceed any limitation imposed by law; and that said city has levied a direct annual irrepealable tax sufficient to pay the interest hereon when it becomes due and also to pay the principal hereof at maturity. IN TESTIMONY WHEREOF, the City.of Oshkosh, by its City Council, has caused this note to be signed by its City Manager and by its City Clerk, and its corporate seal to be impressed hereon, all as of the day of (SEAL) CITY CLERK . 198_ CITY MANAGER Section 4. In order to provide for the collection of a direct annual tax sufficient to pay the interest on the Notes and to pay and discharge the princigal thereo� at maturit�, there is hereby levied upon all the taxable property in the City for the year 1984 thru 1993, a direct annual tax in an amount sufficient for the purpose, to-wit: Year 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Tax Levv 512,240.00 8,160.00 8,160.00 8,160.00 8,160.00 8,160.00 8,160.00 8,160.00 8,160.00 100,080.00 together with cash on hand in the amount of 54,080.00 to be interest due and owing in calendar year 1984. Section 5. Said tax shall be extended upon the tax rolls of the City and shall be collected by the officers of the City in the same manner and at the same time as taxes for general city purposes for such years are extended and collec- ted, and when so collected-, ihe proceeds of said taxes shal l be kept in a separate and distinct fund to be used solely for paying the principal of and interest on the Notes, so long as the Notes remains outstanding. � Section 6. Interest on or principal of the Notes herein authorized falling due at any time when there shall be on hand insufficient funds from the proceeds of the above tax levy for the payment of such interest or principal shall be paid promptly when due from other funds of the city, which funds shal l be reimbursed therefor out of the proceeds of the taxes above levied when such taxes shall have been collected. Section 7. The City Clerk shall keep, maintain and preserve an adequate and correct register account of the Notes issued and all payments and other transactions relating thereot. Section 8. When the Notes shall have been prepared and executed, the same shall be delivered by the City Treasurer to the lenders upon receipt fo the borrowed money. Section 9. The principal proceeds from the sale of the Notes shall be used only for the payment of the development, extension, enlargement, renovation, rebuilding, repair or improvement of projects undertaken for public purposes. The City recognizes that the purchasers and holders of the Notes will have accepted them 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 said notes shall have been delivered. In this connection the City agrees that it shall take no action which may render the interest on any of the Notes subject to Federal income taxation and that the principal pro- ceeds of the sale of the Not�s shall be devoted to and used with due diligence for the payment of the expenses for which the Not� are herein authorized to be issued. .The City Manager, the Clerk and the Treasurer of the city, or any of them, are hereby autho- rized to execute on behalf of the City an Arbitrage Certificate to assure the purchasers and holders of the Not� that the pro- ceeds of the Notes are not expected to be used in a manner which would or might result in said notes being an "arbitrage bonds" under Section 103(c) of the Internal Revenue Code of 1954, as amended, or the regulations of the United States Treasury Depart- ment currently in effect or proposed. such Arbitrage Certificate shall constitute a representation and certification of the city and no investment of Note proceeds or of money accumulated to pay the Notes herein authorized shall be made in violation of the expectations prescribed by said Arbitrage Certificate. 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