HomeMy WebLinkAboutCOUNCIL MINUTES 1959-09-25 SPECIAL Page 1073
MINUTES OF THE FORTY-NINTH SPECIAL FETING OF THE
COUNCIL OF THE CITY OF LIVONIA
Pursuant to the provisions of Section 8, Chapter IV of the City Charter,
the above meeting was held on September 25, 1959, at 33001 Five Mile Road, Livonia,
Michigan, and was called to order by the President at approximately 8:08 P. M.
Roll was called with the following result: Present-- Austin T. Grant, Frank O'Neill,
Rudolf R. Kleinert and Sydney B. Bagnall. Absent-- *Robert Sasser, *Jack Salvadore
and James R. McCann.
*Councilmen Robert Sasser and Jack Salvadore arrived at 8:11 P. N.
By Councilman Bagnall, seconded by Councilman Kleinert, it was resolved
that
#569-59 WHEREAS, it is hereby determined that it is necessary to borrow
the sum of $400,000.00 in anticipation of the collection of the OPERATING
TAXES for the NEXT SUCCEEDING FISCAL YEAR ending November 30, 1960, which
taxes are first due and pa4Yable on December 1, 1959, for the purpose of
obtaining funds to meet current operating expenses; and
WHEREAS, Act No. 202 of the Public Acts of 1913 authorizes the
borrowing of money in anticipation of the collection of the unpaid tax
for the next succeeding fiscal year for such operating expenses as could
not reasonably have been foreseen and adequately provided for in the
current fiscal year's tax; and
WHEREAS, said expenses were not foreseen and adequately provided
for in the tax levy for the current fiscal year, but is a necessary
operating expense; and
WHEREAS, outstanding loans against the operating taxes for the
next succeeding fiscal yeor are $ NONE; and
AREAS, the operating tax levy for the next succeeding fiscal
year has not been determined;
NOW, THEREFORE, BE IT RESOLVED, that the City of Livonia borrow
for the above purpose the sum of $100,000.00, or such paft thereof as
the Municipal Finance Commission may authorize, and issue the notes of
the City of Livonia therefor in anticipation of the collection of the
operating taxes for the next succeeding fiscal year ending November 30,
1960; and
BE IT FURTHER RESOLVED, that the City Clerk be and she is
hereby authorized to make application to the Municipal Finance Commission
for and on behalf of the City of Livonia for an order permitting this
City of Livonia to borrow 41100,000.00 and issue its notes as aforesaid;
and
Page 4014
BE IT FURTHER RESOLVED, that said notes bear interest at not to
exceed six (6%) per cent per annum, be dated November 1, 1959 and be due
and payable March 1, 1960 which is the estimated time of collection of $
sufficient amount of the operating taxes for the next succeeding fiscal
year to pay the notes in full; and
BE IT FURTHER RESOLVED, that irrevocably a tax be and hereby is
levied for the fiscal year ending November 30, 1960 for the payment of
operating expenses for such year, sufficient for the repayment of such
loan from the receipts of such taxes, and such receipts are irrevocably
pledged for the repayment of such loan.
BE IT FURTHER RESOLVED, that hereafter from the first collections
of the taxes for the next succeeding fiscal year there be set aside in a
special fund that percentage of such collections which the tax levied for
operating bears to the total tax levy, said fund to be used for the payment
of the principal of and interest on said notes, and until the amount so set
aside shall be sufficient for such payments, collections of such taxes shall
be used for no other purpose.
BE IT FURTHER RESOLVED, that the said notes shall be payable in
lawful money of the United States of America at such bank or trust company
in the State of Iichigan as shall be designated by the original purchaser.
BE IT FUriTHER RESOLVED, that the Mayor and City Clerk of the
City of Livonia be and they are hereby authorized and directed to execute
said notes for and on behalf of the City of Livonia and that upon the
execution of said notes the same shall be delivered to the Treasurer of
the City of Livonia who is hereby authorized and directed to deliver said
notes to the purchaser thereof, upon the receipt of the purchase price
therefor.
BE IT FURTHER RESOLVED, that such notes be sold at public sale,
the notice thereof to be in substantially the following form and that a
copy be submitted to the Municipal Finance Commission for approval before
publication;
NOTICE OF SALE
$ 1400,000.00
City of Livonia, Wayne County, Michigan
NOTES
Sealed bids for the purchase of tax anticipation notes of the
City of Livonia, of the par value of $400,000.00 will be received by
the undersigned at 33001 Five Mile Road, Livonia, Michigan, until
o'clock M., Eastern Standard Time, on the day of
1959, at which time and place they will be publicly opened and lead.
The notes will be dated November 1, 1959, will mature March 1,
1960 and will bear interest at a rate or rates not exceeding six (6%) per
cent per annum. Both principal and interest will be payable at such place
as may be agreed upon with the purchaser. Denominations and form of notes
Page 1075
to be at the option of the purchaser. Accrued interest to date of delivery
of such notes must be paid by the purchaser at the time of delivery.
For the purpose of awarding the notes the interest cost of each
bid will be computed by determining, at the rate or rates specified therein,
the total dollar value of all interest on the notes from
to their maturity and deducting therefrom any premium. The notes will be
awarded to the bidder whose bid on the above computation produces the lowest
interest cost to the City of Livonia. No proposal for the purchase of less
than all of the notes or at a price less than their par value will be con-
sidered.
The loan is in anticipation of the December 1, 1959 Operating
Tax due and payable December 1, 1959.
Envelopes containing the bids should be plainly marked "Proposal
for Notes".
A certified or cashier's check in the amount of two (2%) per
cent of the par value of the notes, drawn upon an incorporated bank or
trust company and payable to the order of the Treasurer of the City of
Livonia must accompany each bid as a guarantee of good faith on the part
of the bidder. Checks of unsuccessful bidders will be promptly returned.
Bids shall be conditioned upon the unqualified opinion of the
purchaser's attorney approving the legality of the notes, to be secured
at the purchaser's expense. The purchaser shall furnish notes ready for
execution at his expense. Notes will be delivered at such place as may
be agreed upon with the purchaser.
The right is reserved to reject any and all bids.
Marie W. Clark, City Clerk
BE IT FURTHER RESOLVED, that upon receipt of said approval, the
City Clerk be and she hereby is authorized to determine and fix the time
of receiving bids for the purchase of said notes; the date from which
interest will be computed in awarding them; to insert such time and date
in the notice of sale; and to publish the approved form not less than
seven days prior to the date so fixed for receiving bids in The Livonian
and in the Michigan Investor.
A roll call vote was taken on the foregoing resolution with the following result :
AYES: O'Neill, Sasser, Kleinert, Bagnall, Salvadore and Grant.
NAYS: None.
On motion of Councilman Kleinert, seconded by Councilman Bagnall and
unanimously adopted, this 49th special meeting of the Council of the city of Livonia
was duly adjourned at 8:36 P. M., September 25, 1959.
C ,„„*-4> z;,,4
N e W. Clark, City Clerk