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HomeMy WebLinkAboutResolution - 206 - Providing for Sale of $75,000 Temporary Improvement Bond, Fixing the Form and Specifications and Directing - 05/14/1968 r i • VILLAGE OF EDEN PRA I R I E f, 7 HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 206 A RESOLUTION PROVIDING FOR SALE OF A $75,000 TEMPORARY IMPROVEMENT BOND, FIXING THE FORM AND SPECIFICATIONS THEREOF, DIRECTING THE EXECUTION AND DELIVERY AND PROVIDING FOR THE PAYMENT WHEREAS, the council has heretofore determined to construct a local improvement pursuant to Minnesota Statutes, Chapter 1[29, and has designated said improvement Sanitary Improvement Project No. I , and WHEREAS, a contract has been let for the construction of said improvement and the total cost has been determined to be the sum of $ 4-4, 737 qo , and WHEREAS, the entire cost of said improvement will be specially assessed against property specially benefited by said improvement, and WHEREAS, it is necessary, in order to provide funds for the construction, to issue'a�Temporary Improvement Bond in the amount of $75,000, pledging the full faith and credit of the village as authorized by Minnesota Statutes, Section l29.091 , and WHEREAS, First National Bank of Hopkins has offered to purchase said bond to finance the said project, bearing interest at the rate of 1�4 per annum, which is determined to be a favorable offer and the same is hereby accepted, NOW, THEREFORE, BE IT RESOLVED By the Village Council of the Village of Eden Prairie, Hennepin County, Minnesota, as follows: I . It is hereby determined to be necessary to borrow $75,000 for the payment of indebtedness heretofore incurred or for expenses necessarily to be incurred in connection with contracts heretofore entered into for the construction of Sanitary Improvement Project No. l . There is hereby created Sanitary Improvement Project No. I Fund, into which shall be paid all proceeds of the Temporary Improvement Bond issued pursuant to this resolution and out of which shall be paid all amounts due and payable as costs or expenses incident to or incurred in connection with making said improvement. Into said fund shall be paid the proceeds of all special assessments levied against benefited property by reason of the making of said improvement and out of which shall be paid principal of and interest on the Temporary Improvement Bond issued to finance said project. 2. The council has determined that the sum of $75,000 shall be borrowed to finance said project by the issuance of a Temporary Improvement Bond of the village as authorized by Minnesota Statutes, Section i129.091 , Subdivision 3, said bond to be payable from Sanitary Improvement Project No. I Fund, but the village further recognizes its statutory duty, as provided by Section 429.091 , and covenants and agrees with the purchaser of said Temporary Improvement Bond that at or prior to the maturity thereof, it will pay and retire such bond and the interest thereon out of the proceeds of definitive improvement bonds which the council will issue and sell at or prior to the maturity of the Temporary Improvement Bond to the extent that the same cannot be paid out of funds available in the sinking fund or out of other municipal funds which are properly available and are appropriated by the council for such purpose. 3. The council has obligated itself to levy special assessments against benefited property by reason of the making of said improvement tck, produce sums at least 5f in excess of the amounts sufficient to pay principal of and interest on said Temporary Improvement Bond when due and on any definitive bonds to be issued as herein provided, such special assessments to be placed on the tax rolls subsequent to the time when said project has been completed and the total cost thereof has been finally determined. 4. The $75,000 Temporary Improvement Bond of 1968 shall be dated May 15, 1968, in the denomination of $75,000, with interest on said bond payable semiannually on May 15 and November 15 of each year and said bond shall mature on May 15, 1970. The principal of and interest on said bond shall be payable at First National Bank of Hopkins, Hopkins, Minnesota. 5. A single bond shall be prepared in substantially the following form: 10 No. 1 $75,000 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN VILLAGE OF EDEN PRAIRIE TEMPORARY IMPROVEMENT BOND OF 1968 KNOW ALL MEN BY THESE PRESENTS That the Village of Eden Prairie, a duly organized municipal corporation of Hennepin County, Minnesota, acknowledges itself to be indebted and, for value received, promises to pay to bearer fmm its Sanitary Improvement Project No. I Fund, the sum of SEVENTY-FIVE THOUSAND DOLLARS on the 15th day of May, 1970, or prior thereto at the option of the Village, and to pay interest thereon from the date hereof until the principal sum is paid at the rate of four and twenty-five hundredths per cent (4.25%) per annum, payable semiannually on the 15th day of May and the 15th day of November in each year. Both principal and interest are payable at First National Bank of Hopkins, Hopkins, Minnesota, in any coin or currency of the United States of America which on the respective dates of payment is legal tender for public and private debts. For the prompt and full payment of such principal and interest as the same become due, the full faith, credit and taxing powers of the village are hereby irrevocably pledged. This bond is issued by said village for the purpose of defraying expenses incurred and to be incurred in construction of Sanitary Improvement Project No. 1 and is issued pursuant to and in conformity with resolutions duly adopted by the Village Council after hearings as required by law and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 429.091 , Subdivision 3. This bond is payable primarily from the Sanitary Improvement Project No. I Fund of the village, but the Council is required to pay principal thereof and interest thereon out of any funds in the treasury in the event that the moneys on hand in said fund are at any/ time insufficient to meet the payment of maturing principal and interest, and is further required, at or prior to the maturity of this bond, to provide for the payment and retirement thereof by the issuance of definitive bonds to the extent, if any, that the assessments and taxes or other municipal funds theretofore collected and received in said fund may be insufficient for such purpose. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED That all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and tote performed preliminary to and in the issuance of this bond n order to make it a valid and binding general obligation of said village according to its terms, have been done, do exist, have happened and have been performed as so required; that the village has duly determined the necessity of and provided for the construction of said improvement; that the Sanitary Improvement Project No. I Fund has been duly created and provision has been made for the support thereof by special assessments to be levied, at or prior to the time for issuance of definitive bonds, for the years and in aggregate amounts not less than five percent (5%) in excess of sums.sufficient to pay the principal of and interest on this bond as such principal and interest become due, and ad valorem taxes, if needed for said purpose, may be levied upon all taxable property in the village without limitation as to rate or amount; that the holder hereof shall have and may enforce by appropriate proceedings all duties imposed by Chapter 1129 upon the village and its officers with reference to the levy and collection of said assessments and taxes and the issuance of said definitive bonds; and that the issuance of this bond did not cause the indebtedness of said village to exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, The Village of Eden Prairie, Hennepin County, Minnesota, by its Village Council , has caused this bond to be executed in its behalf by the signature of its Mayor and of its Clerk and sealed with its official seal , and has caused this bond to be dated as of May 15, 1968. AM4 May r C I erk (SEAL) • 6. The bond shall be prepared under the direction of the village attorney and shall be executed on behalf of the village by the signatures of the mayor and clerk and the corporate seal of the village shall be affixed thereto. When said bond has been executed and authenticated, it shall be delivered by the treasurer to the purchaser thereof, upon payment of the purchase price heretofore agreed upon, and said purchaser shall not be obligated to see to the application thereof. 7. It is hereby determined that the entire finally estimated cost of the improvement shall be assessed against property specially benefited thereby and that the proceeds of special assessments in said amount will provide at least 5% in excess of the amount required to pay when due all principal and interest on the bond issued hereunder and no ad valorem tax levy is presently required. 8. The village clerk is hereby authorized and directed to file a certified copy of this resolution with the county auditor of Hennepin County, together with such other information as he shall require and to obtain from said county auditor a certificate that said bond has been entered on his bond register. 9. The offer of First National Bank of Hopkins to purchase said bond, paying par and accrued interest, is hereby accepted. The village shall furnish bond and approving legal opinion of Howard, LeFevere, Lefler, Hamilton and Pearson without cost to the purchaser. 10. The officers of the village and the county auditor of Hennepin County are hereby authorized and directed to prepare and furnish to the purchaser of said bond and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records relating to said bond and to the financial affairs of said village, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of said bond as the same appear from the books and records under their custody and control or as otherwise known to them, and such certificates, certified copies and affidavits, including any heretofore furnished, shall be deemed representations of the village as to the correctness of all statements contained thereon. ADOPTED by the Village Council of the Village of Eden Prairie at a regular meeting thereof held this 14th day of May, 1968.' David W. Osterholt, Mayor of the Vi I I age of Eden Prai ri e Attest: //4 C e k