HomeMy WebLinkAbout31482 / 81-09�0�
August 6, 1981 6� # 9 �LUPIQ�I
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Zhere wi.11 be a Eaesoluti� to borma up to $5,000,000.00
as interim financing of the general operating e�enses for the City of
Oshkosh imtil the State's shared revenue is received.
SU?i�'TTED °Y
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The City Council of the City of Oshkosh, Winnebago County,
Wisconsin, met in regular, open, public session at its regular
meeting place on August 6, 1981, at o`clock P.M.,
with the following members present:
and the following members absent:
� +t �t
(Other business)
The following resolution was introduced by
and was read in full, and pursuant to motion made by
and seconded by was adopted by the following vote:
Aye:
Nay:
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RESOLUTION determining to borrow
5,000,000 and to issue to the
lender Promissory Notes, Series
1981-B, of the City of Oshkosh,
Wisconsin, in such amount, providing
details, prescribing the form of note
and levying taxes.
WHEREAS, the City of Oshkosh, Winnebago County, Wisconsin, is
in temporary need of money in the amount of $5,000,000, for the
purpose of providing funds for the payment of current and ordinary
municipal expenses; and
WHEREAS, cities are authorized by the provisions of Section
67.12(1) of the Wisconsin Statutes to borrow money and issue promis-
sory notes for the payment of current and ordinary municipal expenses;
and
WHEREAS, it is considered necessary and desirable by the City
Council of said city, that said city borrow $5,000,000 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 City Council of said city deems it necessary to its
safety and interest to borrow said amount for said purpose; and
WHEREAS, the officials of said city have negotiated with
Valley Bank of Oshkosh & Associatior
for the borrowing of an aggregate sum of $5,000,000 and said lender(s)
have offered to purchase the promissory notes of the city at the
interest rate of 9.625 per cent (9.625 �) per annum;
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 current and ordinary municipal expenses,
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there shall be borrowed from Vallev Bank of Oshkosh &, of ,
Association
, the sum of $5,000,000, and to evidence such indebtedness
said city shall issue to such lender its Promissory Notes, Series
1981-B, in the aggregate principal amount of $5,000,000.
Section 2. Said notes shall be designated "Promissory Notes,
Series 1981-B", shall be payable to the order of the lender, shall
be dated the date of their issuance, shall be of $100,000 denomina-
tion or any multiple thereof, shall be numbered consecutively from 1
upward, shall bear interest at the rate of 9.625 % per annum
payable at maturity or upon prepayment, and shall mature as to prin-
cipal on May 1, 1982.
Said notes shall be subject to prepayment at the option of
the City of Oshkosh, as a whole or in part by lot, on November 1,
1981, and on the first day of any month thereafter, at the princi-
pal amount of each note so prepaid and accrued interest to the
date fixed for prepaym2nt.
Notice of intended prepayment shall be given by registered
or certified mail to the lender named in the note being prepaid
and shall be given not less than 5 days prior to the date fixed for
prepayment.
Said notes shall be signed by the City Manager of the City
of Oshkosh and by the City Clerk, and sealed with the corporate
seal of said city. Both principal of and interest upon said note
shall be paid directly to the lender by the Treasurer of the City
of Oshkosh, in lawful money of the United State of America.
Section 3• Said notes shall be in substantially the following
form, the omissions to be appropriately completed when the note is
prepared:
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(Form of Note)
UNITED STATES OF AMERICA
State of Wisconsin
County of Winnebago
City of Oshkosh
PROMISSORY NOTE, SERIES 1981-B
N0. $
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
,
or order, the
principal sum of ($ ), payable
on the first day of March, 1g82, with interest at the rate of
per cent ( %) per annum on the unpaid
principal from the date hereof until the principal amount shall
have been fully paid, such interest being payable at maturity or
upon prepayment, directly to the lender by the Treasurer of the
City of Oshkosh.
Notes of the issue of which this note is one are sub�ect
to prepayment at the option of the City of Oshkosh, as a whole
or in part by lot, on November 1, 1981, and on the first day of
any month 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 hereinabove named, not less than
5 days prior 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 $5,000,000, all of like date,
issued to evidence the indebtedness incurred by the borrowing of
money in such amount for the purpose of paying the cost of providing
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funds for the payment of current and ordinary municipal expenses,
pursuant to and in all respects in compliance with Section 67.12(1)
of the Wisconsin Statutes and a resolution adopted by at least a
three-fourths vote of the members of the City Council of said city
on August 6, 1981, and entitled, "RESOLUTION determining to borrow
$5,000,000 and to issue to the lender Promissory Notes, Series 1981-B,
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, 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 , 1981.
(SEAL)
City Clerk
Form of Endorsement
City Manager
Pay to the order of , ,
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Section 4. In order to provide for the collection of a direct
annual tax sufficient to pay the interest on said notes and to pay
and discharge the principal thereof at maturity, there is hereby
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levied upon all the taxable property in the City of Oshkosh for the
year 1981 a direct annual tax in an amount sufficient for that
purpose, to-wit
Section 5
$ 5,3z4,351.00
Said tax shall be extended upon the tax rolls of
said city and shaZl be collected by the officers of said 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 paying the principal of
and interest on said promissory notes, so long as said notes remain
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 said city, which funds shall 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 thereto.
Section 8. When said notes 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 said notes
shall be used only for the purpose of paying the cost of providing
for the payment of current and or�inanry municipal expenses. Said
city recognizes that the purchasers and holders of said 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 said city agrees that it
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shall take no action which may render the interest on any of said
notes subject to Federal income taxation and that the principal
proceeds of the sale of said notes shall be devoted to and used
with due diligence for the payment of the expenses for which said
notes are herein authorized to be issued. The City Manager, the
Clerk and the Treasurer of the City, or any of them, are hereby
authorized to execute on behalf of said city an Arbitrage Certificate
to assure the purchasers and holders of said notes that the proceeds
of said notes are not expected to be used in a manner which would
or might result in said notes being "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 said city and no investment of
note proceeds or of moneys accumulated to pay said notes herein
authorized shall be made in violation of the expectations prescribed
by said Arbitrage Certificate.
Adopted
Recorded
Attest:
City Clerk
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Upon motion of
,
adjourned.
Attest:
City Clerk
1981.
1981.
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Mayor
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(Other business)
seconded by
and unanimously adopted, the City Council
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Mayor
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