HomeMy WebLinkAboutResolution - 416 - Sale of $1,950,000 G.O. Improvement Bonds - 04/01/1971 RESOLUTION 140 . 416
HESOLUTION AUTHORIZING , SELLING AND
ESTABLISHING THE TERMS OF $1 , 950 , OOO
GENERAL OBLIGATION WATER AND SEWER BONDS
BE IT RESOLVED by the Village Council of the Village of
Eden Prairie , Minnesota, as follows :
Section _l . Authorization and Sale
1 . 01 The Council has determined the necessity of the issuance
of general obligation bonds of the Village in the principal amount
of $1 , 950 , 000 , comprising $1, 91_5 , 000 principal amount of bonds to
be issued for the purpose of acquisition and betterment of water-
works and sewerage system improvements , and $35 , 000 principal
amount of additional bonds of the same series to be issued pur-
suant: to Minnesota Statutes , Section 475 . 56 , in evidence of a part
of the interest to be paid on the bonds .
1 . 02 Notice of sale of the bonds has been duly published , and
the Council has publicly received , opened and considered all sealed
bids presented in conformity with the notice . The most favorable
of such bids is ascertained to be that of Piper, Jaffray & Hopwood , Inc .
Minneapolis , Minnesota , and Juran & Moody , of St. Paul , Minnesota ,
and associates , to purchase the bonds at a cash price of $ 1 ,915,329.00
plus accrued interest on the total principal amount 'thereof to the
date of delivery and payment , and upon the further terms and con-
ditions set forth in this resolution .
1 . 03 The Mayor and Clerk are directed to execute in duplicate
a contract on the part of the Village for the sale of the bonds in
accordance with the proposal described in Section 1 . 02 , and to de-
liver a duplicate to the purchasers. The Treasurer is directed to
retain the purchaoers ' check securing the contract of sale until
the bonds are delivered and the purchase price is paid , and to re-
turn the checks securing other bids to the respective bidders .
Section 2 . Form of Bonds and Coupons .
2 . 01 The bonds issued hereunder shall be printed in substan-
tially the folllowirS form ,
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UNITED STATES OIL' AMEHICA
STATE OF' I-iIJvN1✓SC?`�A
COUNTY OF IIENNEPIN
VILLAGE OF' EDEN PRAIRIE
GENERAL OBLIGATION WATER AND SEWER BOND
No . $5, 000
KNOW ALL MEN 13Y THE SE PRESENT'S that the Village of Eden
Prairie , a duly organized and existing municipality of Hennepin
County , Minnesota , for value received acknowledf—s itself to be
indebted and promises to pay to bearer the sum of
FIVE THOUSAND DOLLARS
on the first day of January , 19 , or, if this bond is prepayable
as stated belod, on an earlier date on which it shall have been
duly called .for redemption , and to pay interest thereon at the
rate of per cent ( % )
per annum from the date hereof until said principal sum is paid or
until this bond , if' prepayable , has been duly called for redemp-
tion ; said interest being payable January 1 , 1972 , and seniiannu-
ally thereafter on July 1 and January 1 in each year , acid interest
to maturity being payable in accordance with and upon presentation
and surrender of the interest coupons appurtenant hereto . Both
principal and interest are payable at the American National Bank and Trust
Company , in St. Paul ,
Minnesota or at the office of such successor paying agent as may
be designated by the Village Council under the provisions of the
resolutions authorizing the issuance hereof , in any coin or cur-
rency of the United States of America which on the respective
dates of payment is legal tender for payment of public and private
debts , and for the prompt and full payment thereof when due the
full faith and credit and taxing powers of the Village of Eden
Prairie have been and are hereby irrevocably pledged .
This bond is one of an issue in the aggregate principal
amount of $1 , 950 , 000 , all of like date and tenor except as to
serial number , interest rate , maturity and redemption privilege ,
issued for the purpose of providing funds for the acquisition
and betterment of waterworks and sewerage system improvements ,
pursuant to authorizing; resolutions duly adopted by the Village
Council of the Village of Eden Prairie , and pursuant to and in
full conformity with the provisions of the Constitution and laws
of the State of Minnesota ihereunto enabling, including Minnesota
Statutes , Section 444 . 075 .
The bonds of this issue maturing .in the years 1974 through
1980 are not subject to redemption before maturity , but those ma-
turing in the years 1981 through 1986 are each subject to redemption
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and prepa.yinent at the option of the V1llagt on January 1 , 19180 ,
and on any interet payment date thereafter , in inverse order of
their serial numbers, and at a price of 101;'o of tl-ie principal
amount , plus accrued interest to the date fixed for redemption .
Not less than thirty days before the date fixed for prepayment
and redemption of any bond , notice of the call thereof will be
published in a financial newspaper in a Minnesota city of the
first class or its metropolitan area. Such notice will also be
:nailed to the holder, if known , of each bond called for redemp-
tion , and to the bank at which principal and interest thereon
are then payable , but published notice of redemption shall be
effective without mailing . Holders of prepayable bonds may re-
quest mailed notice of redemption by notifying the Village Treas-
urer in writing of their names and addresses and the serial num-
ber" of the bonds held by them.
IT IS CERTIFIED AND RECITED that all acts , conditions
and things required by the Constitution and laws of the State of
Minnesota to be done , to exist , to happen and to be performed
precedent to and in the issuance of this bond , in order to make
it a valid and binding general obligation of the Village of Eden
Prairie in accordance with its terms , have been done , do exist ,
have happened and have been perforried in regular and due form,
time and ?nanner as so required ; that in and by the resolution
authorizing said issue of bonds , adopted on April 6 , 1971 , the
Village has covenanted and agreed with the holders of said bonds
that the Village will impose and collect charges for the service ,
use and availability of its municipal water and sewer systems
at the times and in the amounts required to produce net revenues
which with collections of special assessments will be adequate
to pay all principal and interest due on bonds of this issue ;
that before the delivery of said bonds the Village has duly
levied and appropriated for the payment thereof a direct , general,
ad valorem tax upon all taxable property within its corporate
limits for the years and in amounts not less than 5 % in excess
of the amounts required to pay said bonds and interest thereon
when due , which tax is subject to reduction only if and to the
extent that funds on hand exceed the amount needed for this pur-
pose , and additional taxes , if needed, are required by law to be
levied upon all such property without limitation as to rate or
amount ; and that the issuance of this bond did not cause the in-
debtedness of the Village to exceed any constitutional or statu-
tory limitation .
IN WI`1'NESS WHEREOF the Village of Eden Prairie , by its
Village Council , has caused this bond and the certificate printed
on the reverse side hereof and the coupons appurtenant hereto to
be executed by the signatures of the Mayor and Village Manager
and its corporate seal to be affixed Hereto , said signatures and
seal being true and correct printed, lithographed or engraved
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fat ,irnile:. of the originals thereof , except- for the signature of
the Vill.aj,e Maruq,cr rnanually : ubscri.hod on the face of this bond ,
and ha: caused tti_i :-; bond to be dated as of April 1 , 1971 .
(Facsimile signature )
Mayor
Village ManaL;er
(Facsimile Seal )
2 . 02 Interest on each bond to maturity shall be represented
by a consecutively numbered set of interest coupons , printed in
substantially the following form :
No. $
On the first day of January ( July) , 19 unless the bond
described below is subject to and has been called for earlier re-
demption, the Village of Eden Prairie , Hennepin County , Minnesota,
will pay to bearer at the American National Bank and Trust Company
, in St. Paul , Minnesota , the amount
shown hereon in lawful money of the United States of America for
interest then due on its General Obligation Water and Sewer Bond ,
dated April 1 , 1971 , No .
(Facsi.rnile signature ) (Facsimile signature )
Village Manager Mayor
2 . 03 A copy of the text of the legal. opinion of bond counsel
shall be printed on the reverse side of each bond and identified
by a certificate in the following form :
We certify that; the above is a full , true and correct copy
of the legal opinion rendered by bond counsel on the issue of bonds
of the Village of Eden Prairie , Minnesota , which includes the within
bond , dates' as of the date of delivery of and payment for the bonds .
(Facsimile signature ) (Facsimile- signature )
Village Manager Mayor
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Section 3 . Bond Terms .- Execution and Delivery .
3 . 01 The bonds issued hereunder shall be designated General
Obligation Water and Sewer Bonds , dated April 1 , 1971 , shall be
issued in the denomination of $5 , 000 each , numbered serially from
1 to 390 , inclusive , shall mature serially on January 1 in the
respective years and amounts stated below and shall bear interest
from date of issue until paid or duly called for redemption at
the respective annual rates stated opposite their maturity years :
Interest Interest
Year Amount Rate Year Amount Rate
19711 $ 603000 4 . 80% 1981 $1705 000 5.40%
1975 100, 000 4.80�; 1982 170 , 000 5.40%
1976 1003000 4.8o% 1983 190 , 000 5.60%
1977 130 , 000 4 .8o% 1984 2003000 5.70%
1978 130 , 000 5.00% 1985 200 , Goo 5.70%
1979 1501000 5.00% 1986 200 , 000 5.70%
1980 150, 000 5.00%
3 . 02 The bonds maturing in the years 1974 through 1980 shall
not be subject to redemption before maturity . The bonds maturing
in the years 1981 through 1986 shall each be subject to redemption
and prepayment at the option of the Village on January 1 , 1980 ,
and on any interest payment date thereafter , in inverse order of
their serial numbers , and at a price of. 101% of the principal
amount , plus accrued interest to the date fixed for redemption .
Not less than thirty days before the date fixed for redemption
of any bonds , notice of the tali thereof shall be published in a
daily or weekly periodical in a Minnesota city of the first class
or ins metropolitan area , which circulates throughout the State
and furnishes financial news as a part of its service , and shall
also be mailed to the bank at which principal and interest are
then payable and to the holder of each bond called for redemption
who has filed with the Treasurer a written request to receive
such notice, but failure to mail notice shall not affect the
validity of the published call for redemption .
3 . 03 The interest on the bonds shall be payable January 1 ,
1972 , and semiannually thereafter on July 1 and January 1 in each
year . The principal of and interest on the bonds shall be payable
at St . Paul , Minnesota , at the office of the American National Bank
and Trust Conipany , which is desig-
nated as paying agent , or in the event of its resignation , removal
or incapability of acting as paying agent , at the office of such
successor paying agent as may be appointed by the Village Council ,
and the Village agrees to pay the reasonable and customary charges
of the paying agent for this service .
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3 . 04 The bonds and the certificate on the reverse side
thereof and the interest coupons appurtenant thereto shall be
executed in behalf of the Village by the signatures of the Mayor
and of the Village Manager. A11 of the signatures shall be
printed , enf�raved or lithographed facsimiles of the original
signatures of the officers , except for the :signature of the Village
Manager on the face of each bond , which shall be manually sub-
scribed , and a. facsimile of the seal shall be printed on the face
of each bond . The bonds stall then be delivered by the Treasurer
to the purchaser on receipt of the cash purchase price stated in
Section 1 . 02 above . The purchasers shall not be required to see
to the application of the proceeds of the bonds , but $1 , 700 ,000
thereof shall be applied to the purpose stated in Section 1 . 01
above , and the remainder of said bond proceeds shall be placed
in the Sinking Fund referred to in Section 1{ . 01. .
Section 4 . Bond Sinking Fund ; Pledge of Water and
Sewer Net Revenues and Full Faith and Credit .
4 . 01 A separate sinking fund for said bonds is hereby created ,
to be designated as the "Water and Sewer Systen? General Obligation
Revenue Bond Fund" , which shall be kept by the Treasurer apart
from all other funds of the Village and used for no purpose other
than payment of principal and interest on said bonds and on bonds
which may hereafter be issued and made payable from said fund ;
provided , that if' any payment of principal or interest shall be-
come due when there is not sufficient :Honey in said fund therefor,
the Treasurer shall pay the same from the general fund of the
Village and said general fund shall be reimbursed for such advances
out of the proceeds of the taxes levied to make good such defici-
ency . Into said sinking, fund shall be paid all bond proceeds re-
ceived in excess of $1 , 700 ,000 , the receipts of all water and
sewer system net revenues pledged by the terms of this resolution ,
all collections of ad valorem taxes levied herein , and all other
moneys received for or appropriated to the payment of said bonds
and interest .
4 . 02 Pursuant to the provisions of Section 444 . 075 , Minnesota
Statutes , as amended , the Village of Eden Prairie hereby covenants
and agrees with the holders from time to time of the bonds herein
authorized that so long as any o.f the bonds are outstanding, the
Village will impose and collect reasonable charges for the service ,
use and availability of its water and sewer utility to the Village
and its inhabitants according to schedules calculated to produce
net revenues which , together with collections of special assessments
levied for water and sewer improvements paid in'.. o the above fund,
will be sufficient to pay all principal and interest when due on
said bonds , and said net revenues , to the extent necessary , are
hereby irrevocably pledged and appropriated to the payment of
said bonds and interest thereon . Provided , that nothing herein
shall preclude the Village from hereafter making further pledges
and appropriations of net revenues of the water and sewer utility
for payment of additional obligations of the Village hereafter
authorized if the Village Council determines before the authori.--
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zat.ion of such additional obligations that the estimated net
revenues of the water and sewer utility will be sufficient , to-
gether with any other sources pledged to or projected to be
used for the payment o1' the outstanding; and additional obliga-
tions , for payment of the bonds herein authorized and such addi-
tional obliCat ion,, . Such further pledges and appropriations
of said net revenues may be made superior or subordinate to or
on a parity with the pledge and appropriations herein made .
11 . 03 For the prompt and full payment of the principal of
and interest on said bonds as the same respectively become due ,
the full faith , credit and taxing pwoers of the Village shall
be and are hereby irrevocably pledged . To provide moneys for
the payment thereof , to the extent and in the event that the net
revenues hereinabove pledged to payment of the bonds are insuffi-
ciert for that purpose in any year, there i3 hereby levied upon
all of the taxable property in the Village a direct , annual , ad
valorem tax which shall. be spread upon the tax rolls for the
,years and in the amounts as follows , and collected with and as
a part of other general taxes of the Village in the respective
ensuing years :
Year Amount Year Amount Year Amount
(See attached Exhibit A)
Said tax shall be irrepealabl.e as long as any of said bonds are
outstanding and unpaid ; provided that in accordance with provi-
sions of Section 475 . 61 of Minnesota Statutes , the Village Clerk
and Treasurer shell annually , on or before October 10 of each
year as long as any of the bonds herein authorized are outstanding,
report to the Council the amount on hand in the Water and Sewer
System General Obligation Revenue Bond Fund hereinabove estab-
lished , and the Council may thereupon reduce the tax, hereinabove
levied for that year by an amount equal to the amount then on
hand in said Bond Fund , and shall direct the Clerk to certify
such reduction to the County Auditor, so that only the balance
of the tax levied for that year will be collected .
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7'
en f 4 ful 1 t
a:7-e r.-iay a1ti0
-1 led for
u e whf; c, are called
ac -cra, n z to 'heir
a t
r ed
Y, r hat, date
a:rent on or
an r e d e- premium
an a: r j.n nt ere s d rpt i on
are d-j roti -e of such redempticn has
been a �-.i v e n a s -o rc i,d e d i n s resolution . The Village may
_I S C. a t m
-,!:-Is Issue of 1-bonds in its entirety , sub-
a 'y e
-el ea I't e r a u t; ori Z in�z and re
at i 2h a c t i c-, c c a 1 n:- a z:r e z,a , able bond for redemption
repa-La, _n accordance with their
he
-ich re D n , and by depositing
,'.
in e: scro`-.. , i t h a -auaiif- d by !a..: as an escrow
n e -)b 1 i Eza-
--h2 ch are general a 1, �7 C U- _ _�_t! -, II _;_
-; t e s of United States acrencies
F r e
au T; 3 i _L� d b
t e -7:o deposited, bearing interest
p a',v a- a, t s u c o ar.1 such rates and maturing on such dates
redemption
interest and
ac, shai _ be re:iu red. T�ay
4
Sec-ion Cert i f_c :1 r)n s
6 1 The Clerlr- directed to file .,iith the County
Audi -o-o of 'Hol—le-pin Coi.mty a certified cc-Dy of thi-S resolution,
al -d S'L-1:D e: f fc a-�i c r y 1,e q,_,,I.r e
I- -r cer t-
fica� e stating that
_7 ')
entered- ul on n-, S `ion._. re -i_ste_r and that the
for payment of said bcndS has been 'Levied.
_J 71 i''r o' -,,-* " - ..C. of he Tillage
., _LllaS*-_ and the County Auditor are
i: nd a J,- f c t e(a to p re are an f u--i-n sh to the purchasers
of C, :as , ana, to bond counsel , certified copies of all proceed-
r c c t1h, ;I relat n- to the authorization and
,e f 7 -
-r -'i-: 'turds and z2,-1cri c- t-e r
a f f i a,.r, ;s an-1, ce tficates
e facts relating to the
t a1c;I y c)f tre bonds a s such h I a"1,J, facts appear from
ar-- o lk r.o T.%,n to them .
,
C, c e 2:, ,c a e s and a f f_1 d a,.,--;.t s including
represenzations of the Villa_e
EXHIBIT A
G;'j,'1F'UTAT I ) \) MF TAX LFIVY t3N:
F,1 , 9 Si7,om') G. '�-). v.'ATF.t� At�10 SE WF1 RCINI )S
LEVY CC%i_I.>~CT AMrlUNT AM + 5 TA 1"
1972 1973 1 63420 -00 1 71 59 1 • 00 1 71 600
1973 1974 2005zio .no 210567 .00 2 1 0600
1974 1975 195740 .00 2t-)5527 . 00 205600
1975 1976 2?-0940 .no 2319F37 .00 232000
1976 1977 21 4700 .00 22. 54.35 . 00 225500
1977 197u 22R200 .00 23961n . 00 239600
197F5 1979 220700 .00 231735 .00 231800
1979 19ts0 2332.00 .00 244�1; 60000 2.44900
1980 1981 2.24020 .00 2352.21 .00 235300
19S 1 1982 234840 .00 246582 .00 246600
199p- 1983 234200 .00 245910.00 245900
1983 1984 2.22800 .00 233940-00 234000
1 98 4 1 98 5 211400 .00 22 1 9 70.00 222 000
Nill"F 9,"IND PR GFFJ)5 CCAPITAL17F13 TN"1'E.h►: ST ) OF 5-? 14, 329 .00 WILL.
i�E US1,.!") T�:) PAY TwTFR ST UUF JANUARY 1 , 1972, JULY 1 , 1972,
AND JANUARY 1 , 1973 .
PROGRAM C JPYI• I GHT BY EHLEIRS AND ASSOCIATES, 6- 12-69