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HomeMy WebLinkAbout32604 / 83-20October 6, 1983 (CARRIED LOST LAID OVER # 20 RESOLUTION WITHDRAWN ) There will be a resolution authorizing the issuance of Promissory Notes in the amount of $270,000 for purposes of purchasing a computer system and a new tele- phone system. -23- SUB?RITTED BY APPROVED � r The City Council of the City of Oshkosh, Winnebago County, Wisconsin, met in regular, open, public session at its regular meeting place on October 6, 1983, at ���0 o'clock P.M., with the following members present: Hulsebosch Kutchera Mather Propp Teichmiller Pung and the following members absent: Chapin * * * (Other business) The following resolution was introduced by Kutchera and was read in full, and pursuant to motion made by Kutchera and seconded by Mather was adopted by the following vote: Aye: Hulsebosch Kutchera Mather Propp Teichmiller Pung Nay: 0 RESOLUTION determining to borrow $270,000 and to issue to the lender Promissory Notes, Series 1983-C, of the City of Oshkosh, Wisconsin, in such amount, providing details, prescr�bing 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 5270,000, for the purpose of providing funds for the payment of the cost of acquiring a new telephone system for city buildings in the amount of $135,000 and the cost of acquiring computer equipment in the amount of $135,000; and WHEREAS, cities are authorized by the provisions of Section 67.12(12) of the Wisconsin Statutes to borrow money and issue promis- sory notes for the acquisition of equipment; and WHEREAS, it is con'sidered necessary and desirable by the City Council of said city that said city borrow $270,000 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, officials of said city have negotiated with the Valley Bank of Oshkosh for the borrowing of an aggregate sum of 5270,000 and said lender has offered to purchase the promissory notes of the city in such aggregate amount at the interest rate of seven and one-half per cent (7 1/2�) 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 providing funds for the payment of the cost of acquisition of a telephone system for city buildings and computer equipment, there shall be borrowed from Valley Bank of Oshkosh, Oshkosh, Wisco�sin, the sum of $270.000. and to evidence such indebtedr�es5 the City of Oshkosh, Y7innetago County, -2- Wisconsin (the "City") shall issue to such lender its Promissory Notes, Series 1983-C (the "Notes"), in the aggregate principal amount of $270,000. Section 2. The Notes shall be designated "Promissory Notes, Series 1983-C", shall be payable to the order of the lender, shall be dated the date of their issuance, shall be of the denominations set out below, shall be numbered consecytively from 1 to 5, inclusive shall bear interest at the rate of seven and one-half percent (7 1/2$) per annum payable on May 1 and November 1 of each year until mat�rity, commencing May 1, 1984, and shall mature as to principal on November 1 of each of the years 19II4 to 1988, inclusive, without option of prepayment, as follows: Year 1984 1985 1986 1987 1988 Amount and Denomination $25,000 $50,000 550,000 $75,000 $70,000 The 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 the City. Both principal of and interest upon each 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, shall be payable only upon presentation and surrender of the Note. Section 3. The Notes shall be in substantially the following form, the omissions to be appropriately completed when the Note is prepared: -3- � (Form of Note) UNITED STATES OF AMERICA State of 47isconsin County of Winnebago City of Oshkosh PROMISSORY NOTE, SERIES 19A3-C N0. • S 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 Valley Bank of Oshkosh, Oshkosh, Wisconsin or registered assigns, the principal sum of (S ), payable upon surrender of this Note, on the first day of November, 198 , with interest at the rate of seven and one-half per cent (7 1/28) per annum on the unpaid principal from the date hereof until the principal amount shall have been fully paid, such interest being payable clirectly 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 payable only upon presentation and surrender of this Note. 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 5270,000, all of like date, 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 acquirinq equipment for the City of Oshkosh, pursuant to and in all respects in compliance with Section 67.12(12) of the Wisconsin Statutes and a resolution aclopted by the members of the City Council of said city on October 6, 1983, and entitled, -4- "RESOLUTION determining to borrow $270,000 and to issue to the lender Promissory Notes, Series 1983-C, 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 lst day of November, 1983. (SEAL) City er City Manager -5- 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 principal thereof at maturity, there is hereby levied upon all the taxable property in the City for the year 1983 to and including 1987, a direct annual tax in an amount sufficient for that purpose, to-wit: Ye ar 1983 1984 1985 1986 1987 Tax Levy 545,250 568,375 564,625 585,875 575.250 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 paying the principal of and interest on the Notes, so long as the Notes remain o�tstanding. 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 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, as Note Registrar, shall keep, maintain and preserve an adequate and correct register account of the idotes issued and all payments, transfers and other transactions relating thereto. Section 8. When the 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 the Notes shall be used only for the payment of the cost of acquiring equipment for the City in the amount and of the type aforesaid. 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 proceeds of the sale of the Notes shall be devoted to and used with due diligence for the payment of the expenses for which the Notes are herein authorized to be issued. The City Manaqer, the Clerk and the Treasurer of the City, or any of them, are hereby authorized to execute on behalf of the City an Arbitraqe Certificate to assure the purchasers and holders of the Notes that the proceeds of the Notes are not expected to be used in a manner which would or might result in said notes being "arbitraqe bonds" under Section 103(c) of the Internal Revenue Code of 1954, as amended, or the reg�lations of the United States Treasury Department currently in effect or proposed. Such Arbitrage Certificate shall constitute a represent- ation and certification of the City and no investment of Note proceeds or of moneys accumulated to pay the Notes herein authorized -7- 0 shall be made in violation of the expectations prescribed by said Arbitrage Certificate. Adopted October 6, 19Q3. Recorded Oct. 6 , 1983. A est• . li. City C erc � Upon motion of * * (Other business) �. Mayor Teichmiller , seconded by Propp , and unanimously adopted, the City Council adjourned. Attest: i �i/,rtl%a/ Ci ty Cle � � _ � Mayor � STATE OF WISCONSIN ) ) SS. COUNTY OF WINNEBAGO ) I, DONNA C. LUEBKE, hereby certify that I am the duly qualified and acting City Clerk of the City of Oshkosh, Wisconsin, and as such official I further certify that attached hereto is a true, correct and compared copy of excerpts from the minutes of the meeting of the City Council of said city held on October 6, 1983, insofar as same pertain to the sale of $270,000 Promissory Notes, Series 1983-C of said city. I further certify that a true and correct statement of every s�ep 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 Wisconsin Statutes. WITNESS my official signature and the official seal of said city this 6th day of October, 1983. 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