HomeMy WebLinkAboutResolution - 442 - Sale of $2,500,000 G.O. Improvement Bonds - 08/10/1971 RESOLUTION NO . 442
FiESOLUTIOiJ AUTHORIZING , SLL.LING AND E'STABLIS'HING
THE TE �1•}S OF $2 , 500 , 000 GENERAL OBLIGATION WATER
AIvD SEl•,rER BONDS (SERIES 2 )
BE IT RESOLVED by the Village Council of the Village of
Eden Prair:i_e , i'•linnesota , as follows :
Section 1 . 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
$2 , 500 , 000 , comprising $2 , 455 ,000 principal amount of bonds to be is-
sued for the purpose of acquisition and betterment of waterworl's and
sewerage s_yStem improvements , and $45 , 000 principal amount of addi-
tional bond.:_; of the :.game series to be :issued pursuant to Minnesota
Statutes , Section. 475 . 56 ., in evidence of a part of the interest to
be paid on the bonds .
1 . 02 Nlotice of sale of the bonds has been duly published, and
the Council- leas publicly received , opened and considered all sealed
bids presented in conformity with the notice . The most favorable of
such bid- i.;> ascertained to be that of piper, Jaffray E I•lopwood,
ncorporated > of' Minneapolis , Minnesota , and associ-
ates , to purchase the bonds at a cash price of $ 2,456,575. 00 , plus
accrued irterest on the total print i_pr l amount thereof to the? datA
C),I C)E'. 1I ei- ,ind n-vr.Pn1- nri i)pon thc' ftu t?7e C'^ms w-d c:. .t4
1. ,,. ,.
set; forth in t}zi s resolution .
1 . 03 The f4ayor 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 thc-., proposal described in. Section 1 . 02, and to de-
l:i_ver a duplicate to the purchasers . The Treasurer is directed -to
retain the purchasers ' check securing the contract of sale until the
bonds are delivered and the purchase price is paid , and to return
the checks, ti ecurinf; other bids to the respective b I driers .
Section 2 . Form of Bonds and Coupons .
2 . 01 The. bond- :issued hereunder shall be printed in substan-
tially the followinE, form:
-1-
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF IIENNEF IN
VILLAGE OF EDET1 PRAIRIE
GENERAL OBLIG ATIOTI WATER AND SEWER BOND (SERIES 2 )
No . $5 , 000
KNOI•J ALL MEIN BY THESE PRESENTS that the Villagc of Eden
Prairie . a duly orC_,nn:i.zed and existing, municipality of Hennepin County ,
Minnesota , for value received acknowledges itself to be indebted and
promises to pay to bearer the sum of
FIVE THOUSAND DOLLARS
on the first day of August , 19 , or , if this bond is prepayable as
stated below, 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 sure is paid or until tl-iis bond , if prepayable , has been
duly called for' redemption ; said interest t.eing payable August 1 , 1972 ,
and semiannually thereafter on February 1 and August, 1 in each year ,
interest to maturity being payable in accordance with and upon presen-
tation and surrender of the interest coupons appurtenant. heretn . Both
jai l ttc �.�)c� ins i.nLcr c i, �.r e' G.)cj.VcLfJ.LE �j 1. the main office of the Northwestern
!. . ionai Bank of Minneapolis , in Ili nneapol is Minnesota , or at the office
of such Succe .zsor paying agent as may be designated by the Village
Council under the provisions of the resolutions authorizing the issuance
hereof, in any coin or currency of the United States of America which
on the respective dates of payment is legal tender for payment of pub-
1 c and private debts , and for the prompt and full payment thereof when
due the full faith and cre-dit and taxi.nE; 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 $2 , 500, 000 , al-1 of like date and tenor except as to serial
nurnber, :i.nterest rate , inatur:ity date and redemption privil-ege , issued
for the purpose of providing, funds for the acquisition and betterment
of waLer%%orlcs and sewerage system improvements , pursuant to authorizing
resolutions duly adopted by the Village Council of the Vil.lage of Eden
Prairie , and pursuant: to and in full conformity with the provisions of
the Constitution arid. :Laws of the State of T:innesota t,hereunto enabling,
including 171J.nnesota Statutes , Section 444 . 075 .
The bonds of this issue maturing in the years 1974 through
1.9821 ale not -ubj eet to redemption before rr!atur,ity , but those maturing
in the yF:a.rs 1983 through 1990 are each subject to redemption and pre-
payment at the option o f the Village on Fet_)ruary 1 , 1982 , and on any
i.ntur.e st. p Lym"_.nt data ther•eafL;cr , in i_nverso order of their serial
nu-mb�!r;:; , and at a price of 1.01% of the princi.pal_ amount , plus accrued
i_ni.crc:s: c to the date fixed for r dernption . Not less than thirty days
before the date fixed for prepayment and redemption of any bond,
notice of i,iic: call thereof will be published in a financial newspaper
L.n a I" innesota city of the first class or i_ts metrok ol- tan area . Such
notico Will also be mailed to tie holder , if known, of each bond called
for redemption , and to the bank at which principal and interest thereof:
are then payable , but published notice of redemption shall be effective
without nnailing . Holders of prepayable bonds may request ;nailed notice
of redemption by not.i_fying the Village Treasurer in writing of their
names and addresses and the serial numbers of the bonds held by them.
IT IS CERTID'IED ANTD RECITED that all acts , conditions and
th-Ings required by t-he 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 per-
formed in regular and due form, time and manner as so required ; that
in and by the resolution authorizing said issue of bonds , adopted on
September. 28 , 19 71 , 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
sy.-Iteins at the times and in the amounts required to produce net reve-
nue e; :.'�_ich r,it:; collcct.-ions of special as;:;essrnents will be adequate
to pay all principal and interest due on bonds of this issue ; that
before the delivery of :;aid bonds the Village has duly levied and
appropriated for the pa1'merit thereof a direct , general , ad valorem
t-,i1. :' - .".,.-, ... .i 1 C:vi'f�Uz'al .1.1..11 _LLJ i'U.1` l•ill'
yeal•s a.riu 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 purpose , and additional taxes , if needed , are
required by "law to be levied upon all such property without lirni.ta.tion
as to rate or arrount ; and that the issuance of this bond did not cause
the indebtedness of the Village to exceed any constitutional or statu-
tory :Limitation .
IN WITNESS WHEREOF the Village of Eden Pz•airie , by its
Village Council , has caused this bond and the certificate printed on
the reverse s-ide hereof and the coupons appurtenant hereto to be exe-
cuted by the signatures of the Mayor and Village Manager and its cor-
porate seal to be affixed hereto , said signatures and seal being true
and corr°ect printed , litho;rapped or engraved facsimiles of the ori-
ginalr3 thereof, except f'or the signature of the Village Manager
manually subscribed on the face of this bond , and has caused this
bond to be dated as of November 1 , 1971 .
(Facsimile signature )
Mayor
-- - Villat,• r. anager
(F a.c,__i r��_�l�. e a.1. )
2 . 02 Interest on each bond tc maturity shall be represented by
a consecutively numbered set of interest: coupons , printed in substan-
tially the following form:
i
No . $
On the f irst- day of February (August ) , 19 unless the bond
described_ below is subject to and has been called for earlier redemp-
tion , the Village of Eden Prairie , Hennepin County , Minnesota , will
pay to 'bearer at the main office of the Northwestern National Bank of Minneapolis
in Minneapolis , Minnesota the amount shown hereon
in _lawful_ money of the United State: of America for interest then due
on its General Obligation Water and Sewer Bond (Series 2 ) , dated Novem-
ber 1 , 19713 No .
(Facsimile signature ) ( Facsimile signature )
Village I;anai__-,er 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 folloi,,i-ng forrri:
We certify that the above 15 a full , true and correct copl,r
of the legal opinion rendered by bond counsel on the issue of bonds of
the Village of Laden Prairie , Minnesota, which :includes the within bond ,
dated a of the date of del-ivory of and payment for the bonds .
{ (F'acsimi_,le signature ) ( Yacsi.mile signature )
Village Manager Mayor
Section 3 . Bond Terris , Execut_i.on and heliv=-
3 . 01 The bonds issued hereunder shall be designated General 01)11_-
gation Water and Sei:er Blonds (Series 2 ) , dated I�overiber, 1 , 19'rl , shall
be _issued in the denomination of 5 , 000 each , numbered serially from
1. to 500 , inclusive .., shall mature serially on August 1. in the respec-
tive years and. amounts_ :,gated below and shall bear interest from date
of issue until paid or duly called for redemption at: the respective
annual_ rates stated op:josi.te their maturity years :
Interest Interest
Year Arnount Rate Year. Amount Hate
197�i 1; 50 , 000 4. 70% 1983 $15O , 000 5 . 50%
1975 100 , 000 4. 70% 1984 1505000 5 .60%
1976 1001000 4. 70% 1985 2001)000 5 . 70%
1977 100 , 000 4. 70% 1986 20C , 000 5 .70%
1978 125 , 000 5.00% 1987 200 , 000 5 . 75%
19 7 9 125 , 000 5. 00% 1.988 200 , 000 5 .75%
19 80 125 , 000 5. 25% 1989 200 , 000 5 .75%
1981 1�'5 , 000 5. 25% 1990 200 *1000 5 .75%
1982 1.50 , 000 5. 40%
3 . 02 'Phe bonds maturing in the years 1.9711 through 1982 shall
not be subject L-.o reciernption before maturl.ty . The bonds maturing in
the year. s 1.983 t:hrourrh 1�J90 shall_ each be subject to redemption and
r rr r ,.,. r�i n{- }1, 1. •i- i l ^ nf' l ,c `? C)Y �.:1 i
_. _ :;
` �.:,; _i..i.. .: '1..:v kic:.�y;.:.i 1�11� '.l t.1.1�1-% 1i;�1 C:1'L•G;.1. C:1-• ,v1.11 o their serial
t number:, , and at a price of 1-01% of the principal amount , plus accrued
intere. t to the date f=i_xc:d for red:inption . Not less than thirty days
before the date fixed for redemption of any bonds , notice of the call.
thereof shall be publ.islred in a daily or weekly periodical in a 141-nne-
sota city of the first class or its metropolitan area. , which circulates
throu`,hout the Sta.t.e and furnishes financial nei•js as a part of its ser-
vice , and shall also be mailed to the bank at which principal and in-
terest are then payable and to the holder of each bond called for
reden,ipti.on vho has f:Lled with the 'Freasurer a written request to receive
such not_i.ce , but: failure to mail notice: shall not affect the validity of
the published cal-1. for redemption .
3 . 03 The interest on the bonds shall be payable August 1 , 1.972 ,
and einiannu all_y thereafter on February 1 and August 1 in each year .
The principal of and interest on the bonds shall be payable at the main
office of the Northwestern National Bank of Minneapolis
in Minneapolis
Minnesota , i,,hich is designated as paying agent , or in the event of
its .r•esiC;n�at:icn , removal. or incapal_,_i.lit,y of acting as paying agent , at
the off'. ce of :;uch succcs sor paying agent as may be appointed by the
Villa p;e Council. , and the Village an;rees to pay the reasonable and cus-
tcynla.r ,- of the paying agent f'or this service .
3 . 0-4 The i.;onds and the certificate on the reverse: side thereof
and tilt ir;tei e:,t coupon: aj);) _ iz tenant thereto shall he. executed in be-
half (-.}f' th(" Vi:1 _l_LICe by the sirgiatures of the ;,?ayor and of the Village
ManaF-er , All of the ,3ignatUres shall be printed, engraved or litho-
gr- al. hed of the original .-lignatures of the officers , except
for the .,-_;J. ' ri r- aturr-, of the Village Min aaf.,or on the face of each bond ,which shall be irtanLir�_Ily subscribed , and a facsimile of the seal shall
be printed on the face of each bond . The bonds, shall then be deliv-
ered by the Treasurer to the purchaser on receipt of the cash purchase
price stated in Section 1 . 02 above . The purchasers shall not be re-
quired to see to the application of the proceeds of the bonds , but
$ 43,425-00 the °eof' sli-iall be applied to tI-)e, purpose stated in -Section
I . 01 above , i.
ove , and the remainder of said bond proceeds Shall be placed
in the Sinkine, Fund --referred to in Section 11 . 01 .
Section %I . Bond Sinking Fund ; PledF_;o of Water and Sewer Net
Revenue and Dull Fa-I-IL-111 and crcdit .
4 . 01 Principal and interest on sa.Ld bonds shall be paid from the
"Watei, and ewer System General Obligation Revenue Bond Fund " hereto-
fo.oe created by, Flesolution. No . 416 adopted by this Council- on ATDrJ-1 65
provictled ., that if any payment of principal_ or interest shall
become, djue, i-171:en there is not siifficient ?honey in said fund there- for ,,
the '.Vrca ;urer -,hall pay the sz-M-ne from the general fund of IL-1he Village
and said genc,ral fund 2,14-iall be reimbursed for sucli advances out of the
of tlie uaxo,-, levied to make E-;aocl .such d e f-I c i e n c y Into said
i ng ful--,d -hall be paid all bond proceeds received in excess of
$.2 , 151 ,417-70, the receipts of all water and sewer system net revenues
pledged by the terms, of' this resolution , all collections of ad valorem
_L V �k 1 1 _L 11 , rL.11(i �f- I t-- E, I I 10 r j u\./ii _r,e c,eJ ve(i I n-r c)r a(r nr r)n-r,j
to the pa,, ment of said bonds and interest .
1-1 . 02 It is hereby found , determined and declared that the Village
of Eden Prai-o-Le o,,,jns and operates a municipal Sewer system and a muni-
cipal viater as a rc-venue-r)a:-(DducinE public j,jt-jl-i-ty .; that the
Village has no bonds or other obligations outstanding which in any
v.,ay constitute a lien or encLir-rI�)rance upon the revonues or properties
Of Cither sy.,;teiii except an isoue of General Obligation Water and Sewer
Bond.,., in the total pcinc-1-pal amount of $1 , 950 , 000 , dated April 1 , 1971 ;
and that the c,:_-- t.j_P-Iated net revenue_- of the water and sewer tatillty ;
t o L,el L,her with cad valorem taxes nnc� special assest,,ments , heretofore or
hel.-oJi-n I-)IedC,---.d for payment of i-,he General Obligation Water and Sevier
Dond's dated Auril 1 ,1 1971 and the bonds, herein authorized ., will be
sl,ff,ficient to pay the principal of and interest on such bonds .
4 . 03 Pursuant to the provis ions of Section 444 . 075 , Mj_n,,.-)esota
Statute,; ,, a,_, amended , the Villa[2-,e, of Eden Prairie hereby covenants and
aj,rees v.,ith the holders from time to time of the bonds herel-n authorized
that so TonE;_- a-, any of the bondf-; are outstanding , the Village will im-
po-se and co-I'Lect reasonable clic.trf_,es, for the service, , use and avail—
ability of it,-- at cx and s'-Tv;er to the Village and its inhab-1-
tants to schedules calculated to produce net revenues which ,
to'--c-t-her i"'it'n cc I I _cton of s- ec1-al I t'.s levied for water and
paid into thcc above fund , ill be sufficient to pay
all pr.-Inc-IL�,al and intere.,it when due on said bonds ., and said net reve-
to th,:.- ex,11-01-lt neces,;ai--y , arc• hereby irrevocably pledged and
appropriated to the pay;nent of said bonds and interest thereon . Pro-
vl_ded , that nothing Inere:in shall preclude the Village from hereafter
further pled--os and appropriations of net revenues of the water
and sewer utility 3'o_r.• payment of additional obligations of the Village
hereafter authorized if the Village Council determines before the
authorization of such additional obligations that the estimiated net
revenues of the water -arid sewer utility :gill be sufficient, together
,rji.th any other sources pledged to or projected to be used for the pay-
ment of the outstanding and additional obligations , for payment of the
bands Herein authorized anif such addi•cionai ob'.L_i_uations . Such further
pledE7,es and appropriations of said net revenues may be made superior
or subordJ_nate to or on a parity with the pledge and appropriations
herein made .
4 . 011 1,'or 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 potieers of the Village shall be and are hereby
irrevocably pledged . To provide moneys for the payment thereof, to
the extent and in the evert that the net revenues hereinabove pledged
to payment of the bonds are insufficient for that purpose in any year ,
them. is her•elby levi_c-,d upon all of the taxable property in the Village
a direct , annual , ad valorem tax which shall be spread upon the tax
rolls fox` ti?(-: % earns and In tl-,e a-niounts as follows , and collected teii-h
anti as a part of other genera_ taxes of the Village in the .respective
ensu``in.g year; :
1.:�u.i• ."u;a v i�.�:�i• lily C:ui• 1;i:i;v U :L
See attached Exli i b i t A
Said tax be irrepeala.ble as, long as any of said bonds are out-
standing and unpaid ; provided that in accordance with provisions of
S 6ot,!-on 1-175 . C1 of Minnesota Statutes , the Village Clerk and Treasurer
shall annually , on or before October 10 of each year as long as any
of the bond,-, herein. authorized are outstanding , report to the Council
the amount on, hand in the Water and Sevier System General Obligation
Revenue Pond Fund here.i.nabove e tah.l_ished , and the Council may there-
upon reduce the tax hercinabove 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 bala.r;c: e o?' tl-)e tax levied for that year will be collected .
i
'7-
L i:1ll L� 7 it
C P U T A 1 '01 :Jr TAX L L V Y ON :
S2_ , 500,000 G. 0. Sic, l:E."r' AND` 'r!AT�L BONDS
EDEN Pr:AIiIE, �iT VilE:.S-1T,�
LEVY COLLECT P.,.M0UNT A.%,i' + Si 1'r'1i:
1973 1974 1I 4450 -0 0 1936 72 . 50 3700
1974 1975 P30925 -00 242471 .25 242500
1975 1976 226225 -00 237536 .25 237600
1976 : 977 2?. 1525 .00 232601 -25 232600
1977 1978 241 0 50 -00 253 1 02 . 50 253100
1976 1979 234800 -00 246540 -00 246600
1979 1980 2PS393 - 75 23981 3 . 44 2399.00
1960 1981 221831 .25 232922 .31 233000
19,011 1982 239500 .00 251475 .00 251500
2982 1993 23 1 32 5 -00 24289 1 .2 5 242900
1983 1984 223000 -00 234150 .00 234200
1984 1985 263100 .00 276255 .00 276300
1985 1986 251700 .00 2642135 . 00 2 643 00
1936 198 7 2402- 50 .00 252262 . 50 252300
1987 1988 228750 .00 240187 . 50 240200
1938 1989 217250 .00 228112 . 50 228200
1989 1990 205750 .00 216037- 50 216100
388992 5 -00 4085000
NOTE : B;:ND PR OCE'EDS ( CAPITALIZED INTEREST) OF S 305 1 5 7- 30
WILL BE USED TO PAY $ 3051 57 -30 OF INTEREST PAYMENTS DUE
8 - 1 — 1972 2- 1 — 1973 8- 1 — 19 73 8- 1 - 1974
l
Section 5 . Defeasance .
tJhen all bonds of this issue and all. coupons appertaining
tI r•::to have been discharged as provided in this section , all pledges ,
covenants and other r_i_p;hts granted by this resolution to the holders
of the borids y;}-iall cease . The Village may d.ischargo all bonds and
coupons of thi;3 issue w•iich are due on any date by depositing with
the payinc agent on or before that date a sum sufficient for the pay-
ment, t?_er•eof in full ; or if any bond or coupon should not be paid .vhen
due , it may nevertheless be discharged by depositing with the paying
went a sum :;uffici.ent. for the payment thereof in full with interest
accrued to the date of such deposit . The Village may also discharge
all prepayable bonds of this issue which are called for redemption on
any date when t.iiey arc- prepayable according to their terms , by deposit-
ing with the paying agent on or before that date an amount equal to
the principal_ , interest and redemption premium which are then due ,
provided that notice of such redemption leas been duly given as pro-
vided in this resolution. The Village may also at any time discharge
this issue of bonds in its entirety , subject to the provisions of laz,.r
now or hereafter authorizing and regulating such action , by calling
all prepayab."Ie:• bonds for redemption on the next date: when they may be
repaid in accordance Tfrith their terms , by giving the notice for such
rec;e,ni-,tion, and 'by dcpo i.ti.ng irrevocably in escrow , with a bank quali-
fied by law a.;; an escro.: agent for this purpose , cash or securities
which are gen�_,ral. obligations of the United States or securities of
United States ap.encies .��hich are authorized by law to be so deposited ,
at Such 1'cLLC ti f3nCJ. r11F3.1 17?'l p�
on such ctat:e.s as shall be required to pay a1'. principal , and :interest
due on the bond on such redemption date .
Section 6 . Certi.f i. cat_tons of Proceedings .
6 . 01 The Village Clerk is directed to file with the County
Auditor of Hennepin County a certified copy of this resolution , and
such other information as the County Auditor may require , and to ob-
tain .from the County Auditor a certificate stating that such bonds
have been entered upon his bond register and that the tax required
by law for payment; of said bonds has been -Levied .
6 . 02 The officers of the Village and the County Auditor are auth-
orized and dir•ec t.ed to prepare and furnish to the purchasers of the
bonds , ana to bond counsel , certified copies of all proceedings and
records of the Village relating to the authorization and issuance of
the bonds and such other aff.'ida.vits and certifi-cates as may reasonably
be required to show the facts relating to the legality and marketability
of the bonds , as such facts appear from the officers ' gooks and records
or are ot-her.:,i e known to them. All such cer ti.fi_ed copies , certifi-
cates and affidavits , including any heretofore furnished _, constitute
representations of the Village as to the facts recited therein.
Mayor
Ai:to _ t.
C.Iez( k_