HomeMy WebLinkAbout32620 / 83-11Af
October 20, 1983
(CARRIED
LOST
LAID OVER
/111 RESOLUTION
WITHDRAWN )
There will be a resolution authorizing the issuance of Promissory Notes in the
amount of $940,000.00 for purchase of land.
This resolution was split in to two (2) separate resolutions,
11 - $700,000
11A- $240,000
SUB[•tI'PTEil B°-
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The City Council of the City of Oshkosh, t7innebago County,
�7isconsin, met in regular, open, public session at its regular
meeting place on October 20, 1983, at 7;00 o'clock P.P7., with
the following members present:
Council Member pon H. Kutchera
Council Member James A. Mather
Council Member Kathleen M. Propp
Council Member Bernice Teichmiller
Council Member Floyd R. Chapin �
Council Member Charles J. Hulsebosch
Council Member Robert E. Pung
and the following members absent:
None
* * *
(Other business)
The following resolution was introduced by Council Member Kutchera
and was reac� in full, and pursuant to motion r�ade by Kutchera
and seconded by Teichmiller was adopted by the follorring vote:
Aye:
Nay:
Council Member Kutchera
Council Member Mather
Council Member Propp
Council Member Teichmiller
Council Member Chapin
Council Member Hulsebosch
Council Member Punt
None
RES�LOTION determining to borrow
$240,000 and to issue to the
lender a Promissozy Note, Series
1983-E, of the City of Oshkosh,
�7isconsin, in such amount, �+roviding
details, prescribing the form of note
and levying taxes.
WHERFAS, the City of Oshkosh, Flinnebago County, FJisconsin, is
in need of funds in the agqregate amount of $240,000, for the
purpose of providing funds for the payment of the cost of acquiring
land for public purposes; and �
�IHEREAS, cities are a�thorized by the provisions of Section
67.12(12) of the �9isconsin Statutes to borrow money and issue promis-
sory notes for the acquisition of land for public purposes; and
FIHEREA5, it is considered necessary and desirable by the City
Council of said city that said city borrow 5240,000 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
6IHEREAS, officials of said city have solicited proposals and
based thereon, have negotiated with the Valley Bank of Oshkosh,
�4isconsin for the borrowing of an aggregate sum of 5240,000 and
said lender has offered to purchase the promissory note of the
city in such aggregate amount at the interest rate of six and
eighty seven hundredths per cent (6.878) per annum;
NOC�, THEREFORE, Ae It Resolved by the City Council of the
City of Oshkosh, Wisconsin, as follows:
Section 1. For the Pur�ose of providing funds for the payment
of the cost of acquisition of land for public purposes, there
shall be borrowed fror� Valley Bank of Oshkosh, Nlisconsin (the
"Lender"), the sum of $240,Q00, and to evidence such indebtedness
the City of Oshkosh, 4iinnebago County, PTisconsin (the "City")
shall issue to such Lender its Promissory Note, Series 1983-E (the
"NOte"), in the aggregate principal amount of 5240,000.
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Section 2. The Note shall be designated "Promissory Note,
Series 1983-E", shall be payable to the order of the Lender, shall
be dated the date of issuance, shall be of the deno�inations of
$240,000, shall be numbered one, shall bear interest at the rate of
six and eighty seven hundredths per cent (6.87�) per annum payable on
P9ay 1 and November 1 of each year until maturity, commencing P1ay 1,
1984, and shall mature as to principal on November 1, 1985.
The Note shall be subject to prepayment in whole, at'the option
of the City, on Ju2y 1, 1984 and on the first day of each month
thereafter and prior to maturity, at a prepayment price of par plus
accrued interest to the date fixed for prepayment. Notice of intended
prepayment shall be given to the Lender by certified mail or personal
service once, not less than ten days prior to the date of intended
prepayment.
The Note shall be signed by the City Manager of the City of
Oshkosh and by the City Clerk, and sealed with the corporate seal of
the City. Both principal of and interest upon the Note shall be
paid directly to the Lender by the Treasurer of the City, in lawful
money of the United State of America. Principal and interest
payable at maturity, sha21 be payable only upon presentation and
surrender of the Note.
Section 3. The Note shall be in substantially the followinq
form, the omissions to be appropriately completed when the Note is
prepa red;
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NO.
(FOnn of Note)
UNITED STATES OF AMERICA
State of Wisconsin
County of Winnebago
City of Oshkosh
PROMISSORY NOTE, SERIES 1983-E
5240,000
KNOW ALL MEN BY THESE PRESENTS: 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 Valley Bank of Oshkosh, Wisconsin (the "Lender") or registered
assigns, the principal sum of Two Hundred Forty Thousand Dollars
(5240,000), payable upon surrender of this Note, on the first
day of November, 1985, with interest at the rate of six and
eighty seven hundredths per cent (6.878} per annum on the unpaid
principal from the date hereof until the principal amount shall
have been fully paid, such interest being payable directly to
the Lender by the Treasurer of the City of Oshkosh by check or
draft on May 1 and November 1 of each year commencing May 1,
1984, interest at maturity being payabie only upon presentation
and surrender of this Note.
The principal of this note is subject to prepayment in whole
at t6e option of the City, on July 1, 1984 and on the first day
of each month thereafter and prior to maturity, at the prepayment
price of par plus accrued interest to the date fixed for prepayment.
Notice of intended prepayment shall be given to the registered
holder hereinabove named once, not less than ten days prior to the
date of intended prepayment, by certified mail or personal service.
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 £aith, credit and resources of the City
are hereby irrevocably pledged.
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This note is issued to evidence the indebtedness incurred
by the borrowing of money in such amount for the purpose of
providing funds for the payment of the cost of acquiring land
for public purposes for the City 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 October 20, 1983, and entitled, "RESOLUTION determining
to borrow 5240,000 and to issue to the lender a Promissory Note,
Series 1983-E, of the City of Oshkosh, Wisconsin, in such amount,
providing details, prescribing the form of note and levying
taxes."
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, includinq this note, does not exceed
any limitation imposed by law; and that said city has levied a
direct annual irrepealable tax sufEicient 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 7th day of November, 1983.
(SEAL)
City Clerk City Manager
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Section 4. In or.der to provide for the collection of a direct
annual tax sufficient to pay the interest on the Notes and to pay
and discharge the principal thereof at maturity, there is hereby
levied upon all the taxable property in the City for the year
1983 and including 1984, a direct annual tax in an amount sufficient
for that purpose, to-wit:
Year Tax Levy
1983 $ 16,488
1984 5256,488
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 collected, and when so
collected, the proceeds of said taxes shall be kept in a separate
and distinct fund to be used solely for payinq the principal of
and interest on the Note, so lonq as the Note remains outstanding.
Section 6. Interest on or principal of the Note herein
authorized falling due at any time when there shall be on hand
insufficient funds £rom 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 shall be reimbursed
therefor out of the proceeds of the taxes above levied when such
taxes shall have been collected.
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Section 7. The City Clerk, as Note Registrar shall keep,
maintain and preserve an adequate and correct register account of
the Note issued and all payments, transfers and other transactions
relating thereto.
Section B. When the Note shall have been prepared and executed,
the same shall be delivered by the City Treasurer to the lender
upon receipt of the borrowed money.
Section 9. The principal proceeds from the sale of the Note
shall be used only for the payment of the cost of acquiring land for
public purposes for the City. The City recognizes that the purchasers
and holders of the Note 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 aqrees that it shall take no action which may render the
interest on any of the Note subject to Federal income taxation and
that 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 Clerk ancl the Treasurer of the City, or any of them, are hereby
authorized to execute on behalf of the City an Arbitrage Certificate
to assure the purchasers and holders of the Note that the proceeds
of the Note are not expected to be used in a manner which would or
might result in said note 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 Department 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 moneys accumulated to pay the Note herein
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authorized shall be r�ade in violation of the expectations prescribed
by said Arbitrage Certificate.
Adopted October 20, 1983.
Recorded Oct. 20 , 1963.
1�`li/I / ./ /�i . . I/�./
.
*
(Other business)
*
Upon motion of Council Member Chapin , seconded by
Council Member Propp , and unanimously adopted, the City Council
adjourned.
Attest:
/1/t./� � � . YLi'�.1.� �/
City C�er
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P9ayor
�
STATE OF {1ISCONSIN )
) SS.
COUNTY OF YIINNEBAGO )
I, DONNA C. SERWAS, hereby certify that I ar� the duly
qualified and acting City Clerk of the City of Oshkosh, j7isconsin,
and as such official I further certify that attached hereto is a
true, correct and compared copy of excerpts from the m�nutes of
the meeting of the City Council of said city held on October 6, 1983,
insofar as same pertain to the sale of 5240,000 Promissory Note,
Series 1983-E of said city.
I further certify that a true and correct statement of
every step or proceeding had or taken to date in the course of.
authorizing said notes has been recorded by me in a separate
record book pursuant to the provisions of the S4isconsin Statutes.
t7ITNE55 my official signature and the official seal of
said city this � day of October, 1983.
(AFFIX)
(SEAL )
(HERE )
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