HomeMy WebLinkAboutResolution - 725 - Approving the Sale of $2,500,000 GO Sewer and Water Bonds - 06/12/1973 RESOLUTION NO. 72-5
RESOLUTION AUTHORIZING, SELLING AND ESTABLISHING
THE TERMS OF $2 , 5 0 0 , 0 0 0 GENERAL OBLIGATION WATER
AND SEWER BONDS (SERIES 5)
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 improvement of the municipal water
and sewer systems , and $45 , 000 principal_ amount of additional bonds
of the same 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 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 ;pith the notice . The most favorable
of such bids is ascertained to be that of Juran and Moody, Inc.
, of St. Paul , M-innesota , and
associates , to purchase the bonds at a cash price of $ 2,461 ,750
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 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 for 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 HENNEP.IN
VILLAGE OF EDEN PRAIRIE
GENERAL OBLIGATION G1ATER AND SEWER BOND
(SERIES 5)
No. $ 5,000
KNOW ALL 14EN 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
FIVE THOUSAND DOLI,ARS
on the first day of. January, 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 ( o) per annum from
the date hereof until said principal sun- is paid or until this
bond, if prepayable , has been duly called for redemption; said
interest being payable January 1 , 1974 , and semiannually there-
after on July 1 and Jan.uar. y l in each year , interest to maturity
being payable in accordance c-,ith and upon presentation and sur-
render of the interest coupons appurtenanr. hereto. Both principal
and interest are payable at 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 resolution author-
izing the issuance hereof , in any coin or currency of the United
States of A. aerica 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 po%%rers 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 improve-
ment of the municipal water and sever systems , pursuant to author-
izing 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 and laws of the State of Minne-
sota thereunto enabling , including Minnesota Statutes , Section
444 . 075 .
The bonds of this issue maturing in the years 1976 through
1.983 are not subject to redemption before maturity , but those ma-
turing in the years 1984 through 1993 are each subject to redemp-
tion and prepayment at the option of the Village on January 1 ,
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1983 , and on any interest payment date thereafter, in inverse order
of their serial numbers , and at a price of 1010 of the principal
amount, plus accrueu interest to the date fixed for redemption.
i,iot less than thirty days before the date _=ixed for prepayment and
redemption of any bond, notice of the call thereof. %:=ill be published
in a financial nev:spaper 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
- if of redemption shall be effective without mailing.
published no
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 general 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 manner
as so required; that in and by the resolution authorizing said is-
sue of bonds , adopted on Jun? 26 , 1973 , 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 revc-nuo .'hicti' ;'itti. c-ol1cctlon.-
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 lthe 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 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 %-.i_thout
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 WITNESS IIHEREOF 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 fac-
similes of the originals thereof , e}:cept 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 July 1 , 1973 .
(Facsimile signature)
Mayor , �)
Robert P. _Heinrich
Village Manager
(Facsimile Seal)
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t 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 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
(Series 5) , dated July 1 , 1973 , No.
(Facsimile signature) (Facsimile si nature)
Village Manager �� MaFoYfb
2 . 03 A co _ f the text f he legal `opinion d counsel
P� o t o te,c o the g
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 Ewen Piaii ie , 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 Mayo
a
j
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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 (Series 5) , dated July 1 , 1973 ,
shall be issued in the denomination of $ 5,000 each, numbered seri-
ally from 1 to 500 , inclusive, shall mature serially on January 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 Rate Year Amount Rate
1976 $ 50 , 000 4.60% 1985 $100 , 000 5. 10%
1977 50 , 000 4 .70% 1986 100 , 000 5 .20%
1978 75 , 000 4 .75% 1987 225 , 000 5 .20%
1979 75 , 000 4 .80% 1988 225 , 000 5.25%
1980 1.00 , 000 4 .90% 1989 225 , 000 5 .25%
1981. 100 , 000 5.00% 1990 225 , 000 5.25%
1982 100 , 000 5.00% 1991 250 , 000 5.30%
1983 100 , 000 5 .00% 1992 250 , Ov00 5.30%
1.984 100 , 000 5. 10% 1993 150 , 000 5.30%
3 . 02 The bonds maturing in the years 1976 through 1983 shall
not be subject to redemption before maturity. The bonds maturing
in the years 1984 through 1993 shall each be :.subject to redemption
anti prepayment Gt the option of the 'Village on January 1 , 1983 , and
on any interest payment date thereafter , in inverse order of their
serial numbers , and at a price of 1010 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 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 pub-
lished call for redemption .
3 . 03 The interest on the bonds shall be payable January 1 ,
1974 , and semiannually thereafter. on July 1 and January 1 in each
year. The principal of and interest on the bonds shall be payable
at American National Bank and Trust Company
in St. Paul , Minnesota , which is designated 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. Upon merger or consolidation of the paying agent
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with another corporation , if the resulting corporation is a bank
or trust co.<<nal:y authorized by la.-7 to conduct such business , such
corporation shall he authorized to act as successor paying agent .
No resignation off the playing agent and no appoi.ntr:ent of a succes-
sor paying agent shall become effective until the date specified
in a notice of the appointment �-.hich the Council shall cause to
be published in a financial newspaper in a riinnesota city of the
first class or its metropolitan area , not less than thirty days
before said effective date.
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 r•iayor 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 reciuired to see to the application of
the proceeds of the bonds , but $ 257,400 shall be transferred to
the Sinking Fund referred to in Section 4 , for the purpose of pay-
ing interest due on the bonds through July 1 , 1975 , and the remain-
ing proceeds shall be credited to the Capital Projects Fund created
for the construction of the waterworks and sewerage improvements
ref e.cr eQ Lo in Seu L_ioxi 1 . 01 .
Section 4 . Bond Sinkinq 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 System General Obligation Revenue Bond Fund"
heretofore created by Resolution 1,;o . 416 adopted by this Council
on Fpril 6 , 1971 ; provided , that if any payment of principal or
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 reir,-
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 proceeds received in excess of $ 2 ,455,000 , the re-
ceipts of all rater and sewer system net revenues pledged by the
terms of this resolution , all co. lections 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 o'..ns and operates a inunici_pal 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 %.,ay constitute a lien or encumbrance upon
the revenues or properties of either system except $1 , 950 , 000
General_ Obligation Water and Se%..er Bonds dated April 1 , 1971 ,
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2 , 500 , 000 General Obligation 17atcr and Se:•rcr_ Itonds dated November
1 , 1971 , $2 , 500 , 000 Gon oral ObligaLL-ion .- at`r arid S e�-.er Bonds dated
June 1 , 1972' , and $2 , 500 , 000 Gellcwfal Obligation Water and SeT"er
Bonds dated Dece-tuber 1 , 1972 ; and that the net re,,.renues
of the water and se�,.er_ utility , together with yid valorem ta:._cs and
special assF ,srrments , heret.ofore. or herein plC_dged for payment of
the General Obligation t%ater and Sewer_ Bonds dated April 1 , 1971 ,
November 1, 1971, June 1, 1972 , and December 1 , 1972 , 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 Section 444 . 075 , rlinnesota
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 of the bonds are outstanding , the
Village will impose and collect reasonable charges for the service ,
use and availability of its eater and sewer utility to the Village
and its inhabitants according to schedules calculated to produce
not revenues which, together with collections of special assess-
ments levied for water_ and se,7or_ imprc vements paid into the above
fund, will be sufficient to pay all principal and interest when
due on said bonds , and said riot 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
nes of the %,,ester and sewer utility will be sufficient , together
with any other sources pledged to or projected to be used for the
payment o-f 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 r�zade .
4 . 04 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 here:Dy irrevocably pledged . To provide moneys for -the payment
thereof, to the extent and in the event that the net revenues here-
inabove pledged to payment of the bonds are insufficient for that
purpose in any 3,ear , there, is hereby levied upon all of the tax-
able 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 fo1_lo;•:s , and collected with and are a part of other general taxes
of the Village in the respFIctive ensuing years :
See Exhibit A, Page 7. 1
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Exhibit A
M"PUTAT I nN OF TAX 1Fvy n,`a:
$2,5n0,;.)no G.n. SE'r1FR A'0 ',-IATFR. Rot-ms OF 1.�7?
VI LL"'G nF EDEr%1 PPAI RIF, MINNESOTA
LEVY COLLECT A-OtJNT AMT + 5 TAX
19711 1975 1111350.00 12no67.50 ?.")nilnn
1975 1976 176400.00 185220.00 1853no
1976 1977 199050.00 209002.50 209010n
1977 1978 1951187.50 205261.87 2053on
1978 1979 216287,5n 227731.87 2270on
1979 19,90 211987.50 222586.87 2226nn
1980 1981 206987.50 217336.R7 217400
19PI 1982 20198 7.5n 212086.R7 212100
1982 1993 196987.50 206836. 87 2o6()nn
1Q83 1984 191997.50 2011131.F?7 201500
19R11 1935 186787,50 i961e- �?? 1q?00
?985 1986 306587.50 321916.87 322nno
1986 ig87 2911887,50 309n7-I;1.87 30q700
1987 1988 283075.00 29722.8.75 2973no
1.98. 1989 271262.50 284825.62 28149n0
19f,g 199n 284450.00 29P672.50 2g8700
1990 1991 271200.0n 284760.on 2311800
1991 1992 157950.00 165847.50 165gnn
3969212.50 11167500
NOTE: BOND PROCEEDS (CAPITALIZED INTFRFST) OF $ 25711n0.n0
WILL BE USED TO PAY $ 2571100.nn OF INTEREST PAYMENTS DUE
1-1-19711, 7-1-197U, 1-1-1�?5, 1-1-1975,
d
PROGRAM COPYRfCHT Ry EHLERS AND ASSOCIATES, 6-1?-59
7. 1
Said tag_ shall be irrepeal_able as long as any of said bonds are
outstanding and unpaid ; provided that in accordance with the pro-
visions of Section_ 475 . 61 of Minnesota Statutes , the Village Clerk
and Treasurer shall annually , on or before October 10 of each year
as long as any of the bonds Herein authorized are outstanding, re-
port to the Council the amount on hand in the Water and Sewer Sys-
tem 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 reduc-
tion to the County .Auditor, so that only the balance of: the tax
levied for that year will be collected .
Section 5 . Defeasance.
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 such 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 terms , by giving the notice
for such redemption , and by depositing irrcvocabl_y in escro�..,
with a bank qualified by late as an escrow agent fcr this purpose,
cash or securities ��,hich are general obligation: of the United
States or securities of United States agencies which are authorized
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by law to be so deposited , bearing interest pavable at such times
and at such rates and maturing on such dates as shall be required
to pay all principal and interest die on the bonds on such redemp-
tion date .
Section 6 . Certifications 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 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.
6 . 02 The officers of the Village and the County Auditor are
authorized and directed to prepare and furnish to the purchasers
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 clay be reasonably required to sho%•.7 the facts relating to
the legality and marketability of the bonds , as such facts appear
from the officers ' books and records or are otherwise known to
them. All such certified copies , certificates and affidavits ,
including any heretofore furnished , consti ute rePzesentations
of the Village as to the facts recited t ain. j
�. Paul R. Redpa
Mayor
Attest : John D. Frane
Village Clerk
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