HomeMy WebLinkAboutResolution - 813 - Authorizing the Sale of $2,500,000 Bonds - February 12, 1974 - 03/01/1974 RESOLUTION NO. 813
RESOLUTION AUTIiORIZING, SELLING AND ESTABLISHING
THE TERMS OF $2 , 500 , 000 GENERAL OBLIGATION WATER
AND SEWER BONDS (SERIES 6 )
BE IT RESOLVED by the City Council of the City 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 City 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 with the notice. The most favorable
of such bids is ascertained to be that of Piper , Jaffray & iiopwood ,
I ncorporated , of Minneapolis , Minnesota , and
associates , to purchase the bonds at a cash price of $ 2 ,464 ,500. 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 City 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 HENNEPIN
CITY OF EDEN PRAIRIE
GENERAL OBLIGATION WATER AND SEWER BOND
(SERIES 6)
No. $ 5 ,000
KNOW ALL MEN BY THESE PRESENTS that the City of Eden Prairie,
a duly organized and existing municipality of Hennepin County, Minne-
sota , for value received acknowledges itself to be indebted and prom-
ises to pay to bearer the sum of
FIVE THOUSAND DOLLARS
on the first day of March, 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 September 1 , 1974 , and semiannually thereafter on March 1
and September 1 in each year , 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 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 try City Council under the provisions
of the resolution 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 public and private
debts , and for the prompt and full payment thereof when due the
full faith and credit and taxing powers of the C4.ty 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 privilege, is-
sued for the purpose of providing funds for the improvement of -the
municipal water and sewer systems , pursuant to authorizing resolu-
tions duly adopted by the City Council of the City 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 .
The bonds of this issue maturing in the years 1977 through
1984 are not subject to redemption before maturity, but those ma-
turing in the years 1985 through 1993 are each subject to redemp-
tion and prepayment at the option of the City on March 1, 1984 , and
l on any interest payment date thereafter, in inverse order of their
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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 redemp-
tion of any bond , notice of the call thereof •rill 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 band called for redemption, 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 request mailed notice of redemption by noti-
fying the City 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 City of Eden Prairie in ac-
cordance 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 issue
of bonds, adopted on February 12 , 1974 , the City has covenanted and
agreed with the holders of said bonds that the City will impose and
collect charges for the service , use and availability of its muni-
cipal water and sewer systems at the times and in the amounts re-
quired 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
City 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 50
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 limitation as to rate or
amount; and that the issuance of this bond did not cause the in-
debtedness of the City to exceed any constitutional or statutory
limitation .
IN WITNESS WHEREOF the City of Eden Prairie, by its City
Council , has caused this bond and the certificate printed on the
reverse side hereof and the coupons appurtenant hereto to be exe-
cuted by the signatures of the Maycr and City Manager and its cor-
porate seal to be affixed hereto , said signatures and seal being
true and correct printed , lithographed or engraved facsimi.ies of
the originals thereof , except for the signature of the City Manager
manually subscribed on the face of this bond, and has caused this
bond to be dated as of March 1 , 1974 .
(Facsimile signature)
Mayor
City Manager
(Facsimile Seal)
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2. 02 Inte.r_ est 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 September (March) , 19 unless the
bond described below is subject to and has been called for earlier
redemption, the City 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 States of 17unerica for
interest then due on its General Obligation Water and Sewer Bond
. (Series 6) , dated March 1, 1974 , No.
(Facsimile signature) (facsimile signature)
City 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 City 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)
City 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 (Series 6) , dated March 1 , 1974 ,
shall be issued in the denomination of $5000 each, numbered seri-
ally from 1 to 500 , inclusive , shall mature serially on March 1
in the respective years and amounts stated below and shall bear
interest from date of issue until Paid or duly called for redemp-
tion at the respective annual rates stated opposite their maturity
years :
Interest Interest
Year mount Rate Year Amount Rate.A
1977 $ 50 , 000 4 . 250 1.986 $100 , 000 4 . 80%
1978 75, 000 4 .25% 1987 225 , 000 4. 90i
1979 75 , 000 4 . 30% 1988 225 , 000 5 . 00%
1980 100 , 000 4 . 30% 1989 225 , 000 5 . 00%
1981 100 , 000 4 .40% 1990 225 , 000 5 . 10%
1982 100 , 000 4 .400 1991 250 , 000 5 . 20%
1983 100, 000 4 .50% 1992 250 , 000 5 . 252"'
1.984 100 , 000 4 .60% 1993 200 , 000 5 • 30%
1.985 100 , 000 4 .70
3 . 02 The bonds maturing in the years 1977 through 1984 shall
not be subject to redemption before maturity . The bonds maturing
in the years 1985 through 1993 shall each be subject to redemption
and prepayment at the option of the City on March 1 , 1984 , and on
any interest payment date thereafter , in inverse order of their
serial numbers, and at a price of 3.010 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 metropolis--
tan area, which circulates throughout the State and furnishes finan-
cial 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 September 1,
1974 , and semiannually thereafter on March 1 and September 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 in-
capability of acting as paying agent , at the office of such suc-
cessor paying agent as may be appointed by the City Council , and
the City agrees to pay the reasonable and customary charges of the
paying agent for this service . Upon merger or consolidation of
the paying agent with another corporation , if the resulting cor-
poration is a bank or trust company authorized by law to conduct
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such business , such corporation shall be. authorized to act as suc-
c4ssor pay.�_ng agent . No resignation of the paying agent and no
appointment of a successor paying agent shall become effective un-
til the date specified in a notice of the appointment which the
Council shall cause to be published in a financial newspaper in a
Minnesota 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 City by the signatures of the Mayor and of wh.� City
Manager . All of the signatures shall be printed , engraved or litho-
graphed facsimiles of the original signatures of the officers, ex-
cept for the signature of the City 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 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 $ 243 ,925.00 shall be transferred to the Sinking
Fund referred to in Section 4 , for the purpose of paying .interest
due on the bonds through March 1 , 1976 , and the remaining proceeds
shall be credited to the Capital Projects Fund created for the con-
struction 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 System 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
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 City and said general fund shall be reimbursed
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 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 It is hereby found, determined and declared that the
City of Eden Prairie owns and operates a municipal sewer system
and a municipal water system as a revenue-producing public utility;
that the City has no bonds or other obligations outstanding 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, $ 2, 500, 000 General Obli-
gation Water and Sewer Bonds dated November 1 , 1971 , $2 , 375, 000
General Obligation Water and Sewer Bonds dated June 1 , 1972 ,
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$2 , 500, 000 General Obligation Water and Sewer Bonds dated December
1 , 1972 , and $2 , 500 , 000 General Obligation Water and Sewer Bonds
dated July 1 , 1973; and that the estimated net revenues of the water
and sewer utility, together with ad valorem taxes and special assess-
ments, heretofore or herein pledged for payment of the General Obli-
gation Water and Sewer Bonds dated April 1 , 1971 , November 1 , 1971 ,
June 1 , 1972 , December 1 , 1972, and July 1 , 1973 , 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 , Minnesota
Statutes , as amended , the City of Eden Prairie hereby covenants and
agrees with the holders from time to time of the bonds herein au-
thorized that so long as any of the bonds are outstanding , the City
will impose and collect reasonable charges for the service , use and
availability of its water and sewer utility to the City and its in-
habitants according to schedules calculated to produce net revenues
which, together with collections of special assessments levied for
water and sewer improvements paid into the above fund , will be suf-
ficient to pay all principal and interest when due on said bonds ,
and said net revenues, to the extent necessary, are hereby irrevo-
cably pledged and appropriated to the payment of said bonds and
interest. thereon. Provided, that nothing herein shall preclude
the City from hereafter making further pledges and appropriations
of net revenues of the water and sewer utility for payment of addi-
tional obligations of the City hereafter authorized if the City
( Council determines before the authorization of such additional
obligations that the estimated net revenues 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 appropri-
ations of said net revenues may be made superior or subordinate to
or on a parity with the pledge and appropriations herein made.
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 City 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 here-
inabove pledged to payment. of the bonds are insufficient for that
purpose in any year , there is hereby levied upon all of the tax-
able property in the City 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 City in the respective ensuing years :
3�
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Year Amount Year P.mount Year Amount
See a t tachecl Exhibit A
Said tax shall be irrepealable 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 City 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
thereo 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 City 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 City 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 City 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 redemp-
tion , and by depositing irrevocably in escrow, with a bank quali-
fied 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 authorized by law to be so de-
posited, bearing interest payable at such times and at such rates
and maturing on such dates as shall be required to pay all princi-
pal and interest due on the bonds on such redemption date.
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EXHIBIT A
COMPUTATION OF TAX LEVY ON:
$2,500,000 G.O. I1ATER E SEWER BONDS (SERIES 6 i
CITY OF EDEN PRAIRIE', MI NiNESOTA
LEVY COLLECT AMOUNT AMT -+- 5° TAX
1975 1976 171962.50 180560.62 180600
1976 1977 194837.50 204579.87 204600
1977 1978 191650.00 201232.50 201300
1978 1979 213425.00 224096.25 2211100
1979 1980 209125.00 219591.25 219600
1980 1981 204725.00 214961.25 215000
1981 1982 200325.00 2103111.25 210400
1982 1983 195825.00 205616.25 205700
1983 1984 191225.00 200786.25 200800
1984 1985 186525.00 195851.25 195900
1985 1986 306725.00 322061.25 322100
1986 1987 295700.00 3101185.00 310500
1987 1988 2841150.00 298672.50 298700
1988 1989 2732.00,.00 286860.00 286000
1989 1990 286725.00 301061.25 301100
1990 1991 273725.00 28741.1.25 287500
1991 1992 210600.00 221190.00 221200
3890750.00 Ilo86o00
NOTE : BOND PROCEEDS (CAPITALI7_ED IfJTEREST) OF $ 24?925.00
WILL RE USED TO PAY $ 243925.00 OF INTEREST PAYMENTS DUE
9-1-197410 3--1-1975, 9-1-1975, AND 3-1-76
PRO(=,rNi CODYRI CA-1T BY EHLERS AND ASSOCIATES, 6--12-69
Section 6 . Certifications of Proceedings .
6. 01 The City Clerk is directed to file with the County Audi-
tor 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 City and the County Auditor are au-
thorized and directed to prepare and furnish to the purchasers of
the bonds, and to bond counsel, certified copies of all proceedings
and records of the City relating to the authorization and issuance
of the bonds and such other affidavits and certificates as may be
reasonably required to show 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 certi-
fied copies, certificates and affidavits , including any heretofore
furnished, constitute representations of the City as to the facts
recited therein. ��\ -�
1 ' )
l
Mayor
Attest:
C i t e r k
1
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