HomeMy WebLinkAboutResolution - 510 - Authorizing Sale of $2,500,000 G.O. Sewer & Water Bonds of 1972 - 06/01/1972 RESOLUTION NO . 510
71.
RESOLUTION AUTHORIZING, SELLING AND ESTABLISHING
THE TERMS OF $2, 500 , 000 GENERAL OBLIGATION WATER
AND SEWER BONDS ( SERIES 3 )
BE IT RESOLVED by the Village Council of the Village of
Eden Prairie , Minnesota, 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 issued for the purpose of acquisition and betterment of water-
works and sewerage system improvements , and $45 , 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 Bancnorthwest
, of Minneapolis , and associates ,
to purchase the bonds at a cash price of $ 2,463,700.00 , plus accrued
interest on the total pr
incipal amount thereof to the date of de-
{` livery and payment, and upon the further terms and conditions 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 purchasers ' 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 following form :
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UNITED STATES OF AMERICA
;. STATE OF MINNESOTA
COUNTY OF HENNEPIN
VILLAGE OF EDEN PRAIRIE
GENERAL OBLIGATION WATER AND SEWER BOND
( SERIES 3 )
No • $ 5,000.00
KNOW ALL MEN BY THESE PRESENTS that the Village of Eden
Prairie , a duly organized and existing municipality of Hennepin
County , Minnesota, for value received acknowledges itself to be
indebted and promises to pay to bearer the sum of
THOUSAND DOLLARS
on the first day of December, 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 sum is paid or until this bond,
if prepayable , has been duly called for redemption; said interest
being payable December 1 , 1972, and semiannually thereafter on
June 1 and December 1 in each year , interest to maturity being
payable in accordance with and upon presenuation and surrender of
the interest coupons appurtenant hereto . Both principal and in-
terest are payable at the main office of the Northwestern National Bank
of Minneapolis ' in Minneapolis, Minnesota , or at the
office of such successor paying agent as may be designated by the
Village Council under the provisions of the resolutions authoriz-
Ing tY:e issuance liel-eof, in any coin or currency 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 $2 , 500 , 000 , all of like date and tenor except as to
serial number , interest .rate , maturity date and redemption privi-
lege , issued for the purpose of providing funds for the acquisi-
tion and betterment of water•Tfrorks 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 thereunto enabling, including Minnesota
Statutes , Section 444 . 075 .
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The bonds of this issue maturing in the years 1973 through
1983 are not subject to redemption before maturity , but those ma-
turing in the years 1984 through 1992 are each subject to redemp-
tion and prepayment at the option of the Village on December 1,
1983 , 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 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 mailed to the
holder , if known , of each bond called for redemption, and to the
bank at which principal and interest thereon are then payable , but
published notil�e of redemption shall be effective without mailing .
Holders of prepayable bonds may request mailed notice of redemption
by notifying the Village Treasurer in writing of their names and
addresses and the serial numbers 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 Minne-
sota 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 genera]_ obligation of the Village of Eden Prairie in
accordance with its terms , have been done , do exist , have happened
and have been performed in regular and due form, time and mariner
as so required ; that in and by the resolution authorizing said
issue of bonds , adopted on April 25 , 1972 , the Village has cove-
nanted and agreed with the holders of said bonds that the Village
will impose and collect charges for the service, use and avail-
ability of its municipal water and sewer systems at the times and
in the amounts required to produce net revenues which with collec -
Liur15 Ui Spec_ial a6bessments will be adequate to pay all pi'illl: _ Jai
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 ali 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 re-
duction 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
limitation as to rate or amount ; and that the issuance of this
bond did not cause the indebtedness of the Village to exceed any
constitutional or statutory limitation .
IN WIT'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
r.
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seal being true and correct printed , lithographed or engraved fac-
similes of the originals thereof, except for the signature of the
Village Manager manually subscribed on the face of this bond, and
has caused this bond to be dated as of June 1 , 1972 .
(Facsimile signature )
Mayor
Village Manager
(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 . $ 5,000.00
On the first day of December (June ) , 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 ;gain office of the Northwestern National Bank
of Minneapolis , in Minneapolis, Minnesota , the amount
shown hereon in lawful money of the United States of America for
interest than due on its General Obligation Water and Sewer Bond
(Series 3 ) , dated June 1 , 1.972 , No .
(Facsimile 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 eachh r,nnd and ider-- 1• f _c 1 V 1 1 1.1
i 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 , dated 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
Obl Lgati_or: Water and Sewer Bonds ( Series 3 ) , dated June 1 , 1.972 ,
shall be issued in the denomination of $ each , numbered seri-
ally from 1 to , inclusive , shall mature serially on December 1
in the respective years and amounts stated below and shall bear in-
terest 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 Pate Year Amount Rate
1973 $125, 000 3.60% 1983 $225 , 000 5.25%
1.9711 125 , 000 3.6o% 1984 125 , 000 5. 25%
1975 125 , 000 4.25% 1985 125 , 000 5.50%
1.976 125 , 000 4.25% 1986 125 , 000 5.50%
1977 125 , 000 1+,?5/ 1987 125 , 000 5.60:1
1978 125 , 000 4.75% 1988 125 , 000 5.6o/
1979 125 , 000 4.75 1989 125 , 000 5.70
1980 125 , 000 5.00% 1990 125 , 000 5.70%
1981 125- , 000 5.00% 1.991 1.25 , 000 5.70%
1982 125 , 000 5.00% 1.992 125 , 000 5.70%
3 . 02 The bonds maturing in the years 1973 through 1983 shall
not be subject to redemption before maturity .. The bonds m.at;u�^ing
in the years 1984 through 1992 s1�a11 each be s�.�bject to redemption
and prepayment at the option of the Village on December 1 , 1983 ,
and on any interest payment date thereafter , ii, 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 call thereof shall be published in a daily or weekly
periodical in a Minnesota city of the first class or its metropoli-
tan 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 a.r=e then payable and
to the ]-colder 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 pub-
lished call for redemption .
3 . 03 The interest on the bonds shall be payable December 1 ,
1972 , and semiannually thereafter on June 1 and December 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 which is designated as paying agent , or
in the event of its resignation, removal or incapability of acting
as paying ag, nt , at the office of such successor paying agent as
may be a.ppoi; ,tcd by the Village Council , and the Village agrees to
pay the rE�asnable 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 . All of the signatures shall be printed , engraved
or lithographed facsimiles of the original signatures of the offi-
cers , except for the signature of the Village Manager on the face
of each bond , which shall be manually subscribed , and a facsimile
of the seal shall be printed on the face of each bond . The bonds
shall then be delivered by the Treasurer to the purchaser on re-
ceipt 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 $62 , 468 . 75 shall. be transferred to
the Sinking Fund referred to in Section 4 , for the purpose of pay-
ing interest due on the bonds December 1 , 1972 , and the remaining
proceeds shall be credited to the Capital Projects Fund created
for the construction of the waterworks and sewerage improvements
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 Principal and interest on said bonds shall be paid from
the "Water. and Sewer Svstem General Obligation Revenue Bond Fund"
heretofore created by Resolution No . 416 adopted by this Council
on April 6, 1971 ; provided , that if any payment of principal or
L, interest shall_ become due when there is not sufficient money in
said fund therefor , the Treasurer shall pay the same from the
general fund of the Village and said general fund shall be reim-
bursed for such advances out of the proceeds of the taxes levied
to make good such deficiency . Into said Sinking Fund shall be
paid all bond p.r. oceeds received in excess of $2 , 4O1 , 231 . 25 , the re-
ceipts 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 It is hereby found , determined and declared that the
Village of Eden Prairie owns and operates a municipal sewer sys-
tem and a municipal water system as a revenue-producing public
utility; that the Village has no bonds or other obligations out-
standing which in any way constitute a lien or encumbrance upon
the revenues or properties of either system except $1 , 950 , 000
General Obligation Water and Sewer Bonds dated April 1 , 1971 , and
$2 , 500, 000 General Obligation Water and Sewer Bonds dated November
1, 1971 ; and that the estimated net revenues of the water and sewer
utility, together with ad valorem taxes and special assessments ,
heretofore or herein pledged for payment of the General Obligation
Water and Sewer Bonds dated April 1 , 1971 , and November 1 , 1971 ,
and the bonds herein authorized, will be sufficient to pay the
principal of and interest on such bonds .
4 . 03 Pursuant to the provisions of Scction 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
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authorized that so long as any of 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 assess-
ments levied for water and sewer improvements paid into 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 authoriza-
tion of such additional obligations that the estimated net reve-
nues of the water and sewer utility will be sufficient , together
with any other sources pledged to or projected to be used for the
payment of the outstanding and additional obligations , for payment
of the bonds herein authorized and such additional obligations .
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 .
4 . 011 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 powers 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 insufficient for
that purpose in any year , there is hereby levied upon all of the
taxable property in the Village a direct , annual, ad valorem tax
which shall be spread upon the Lax roils f oi• the yeail s 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 Exhibit A)
Said tax shall be irrepealable 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 shall annually, on or before October 10 of each
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EXHIBIT A
$2. 500,000 G.O. SEWER & WATER BONDS
DATED JUNE 1 , 1972
VILLAGE OF EDEN PRAIRIE, MINNESOTA
COLLECTION LEVY
DATE PRINCIPAL INTEREST YEAR 105%
1 2/1/72 $ $ 62,469.75 1973 $ 262, 500
6/1/73 62,468.75
12/1/73 125,000.00 62,468.75 1974 257,800
6/1/74 60,218.75
12/1/74 125,000.00 6o,218.75 1975 253,000
6/1/75 57,968.75
12/1/75 125,000.00 57,968.75 1976 247,500
6/1 /76 55, 312. 50
12/1/76 125,000.00 55, 312.50 1977 241 ,goo
6/1/77 52,656.25
12/1/77 125,000.00 52,656.25 1978 236. 300
6/1/78 50,000.00
12/1/78 125,000.00 50,000.00 1979 230, 100
6/1/79 47,031 .25
1211179 125,000.00 47,031 .25 1980 223,800
6/1/80 44,062.50
12/1/80 125,000.00 44,062.50 1981 217,300
6/1/81 40,937.50
12/1/81 125000.00 40,937. 50 1982 210,700
6/1/82 37,812. 50
a 12/1/82 125,000.00 37,812. 50 1983 204,100
6/1/83 34,687. 50
12/1/83 125,000.00 14,687. 50 1984 197,300
6/1/84 31 ,406.25
12/1/84 125000.00 31 ,406.25 1985 190,400
6/1/85 28, 1 25.00
12/1 /85 125,000.00 28, 125.00 1986 183000
6/1/86 24,687. 50
12/1/86 125,000.00 24,687.50 1987 175,900
6/1/87 21 ,250.00
12/1 /87 125,000.00 21 ,250.00 1988 168,600
6/1/88 17,750.00
12/1 /88 125,000.00 17,750.00 1989 Wp 200
6/1/89 14,250.00
12/1/89 125,000.00 14,250.00 ' 1990 153,700
6/l/90 10,687.50
12/1 /90 125,000.00 10,687.50 1991 146, 300
6/1/91 7, 1 25.00
12/1/91 125,000.00 7, 125.00 1992 138,800
6/1/92 3,562.50
12/1/92 125,000.00 3,562.50
$2,500,000.00 $1 ,466,468.75 $4,100000
Band Years 27500
Average Maturity 11 .00 Years
Average Interest 5946461
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 established ,
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 .
Section 5 . Defeasanc e .
When all bonds of this issue and all. coupons appertaining
thereto have been discharged as provided in this section, all
pledges , covenants and other rights granted by this resolution to
the holders of the bonds shall cease . The Village may discharge
all bonds and coupons of this issue which are due on any date by
depositing with the paying; agent on or before that date a sum suf-
ficient for the payment thereof in full ; or if any bond or coupon
should not be paid when due ,. it may nevertheless be discharged by
depositing with the paying agent a sum sufficient 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 they are prepay-
able according to their terms , by depositing 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 suc;-i redemption has been duly given as provided in this resolu-
tion. The Village may also at any time discharge this issue of
bonds in its entirety , subject to the provisions of law now or
hereafter authorizing and regulating such action, by calling all
prepayable bonds for redemption on the next date when they may
be prepaid in accordance with their germs , by giving the notice
for such redemption; and by depositing irrevocably in escrow,
with a bank qualified by law as an escrow agent for this purpose ;
cash or securities which are general obligations of the United.
States or securities of United States agencies which are author-
ized by law to be so deposited , bearing interest payable at such
times and at such rates and maturing on such dates as shall be
required to pay all principal , and interest due on the bonds on
such redemption date .
Section 6 . Certifications of Proceedings .
6 . 01 The Village Cleric 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 obtain 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 .
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6 . 02 The officers of the Village and the County Auditor are
- authorized and directed to prepare and furnish to the purchasers
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of the bonds , and to bond counsel, certified copies of all pro-
ceedings and records of the Village relating to the authorization
and issuance of the bonds and such other affidavits 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
£rom the officers ' books and records or are otherwise known to
Lnem. All such certified copies , certificates and affidavits ,
including; any heretofore furnished, c sti.tute representations
of the Village as to the facts recite- therei
' Mayor
Attest : f>Zt- `-"
Village Clerk,/
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