HomeMy WebLinkAboutResolution - 1055 - $1,000,000 Terms of Sale $1,000,000 G.O. Water and Sewer - 12/01/1975 RESOLUTION NO. 1055
RESOLUTION ESTABLISHING THE TERMS OF $1 ,000,000
GENERAL OBLIGATION WATER AND SEWER BONDS (SERIES 8)
BE IT RESOLVED by the City Council of the City of Eden Prairie, Minne-
sota, as follows:
Section 1 . Authorization and Sale.
The Council has determined the necessity of the issuance of general obli-
gation bonds of the City in the principal amount of $1 ,000,000, comprising
$980,400 principal amount of bonds to be issued for the purpose of improvement
of the municipal water and sewer systems , and $19,600 principal amount of addi -
tional 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 or] the bonds ,
and has contracted for. the sale thereof at a price of $980,400 , plus accrued
interest on the principal amount of $1 ,000,000 to the date of delivery, and
upon the further terms and conditions which are set forth in this resolution.
Section 2. Form of Bonds and Coupons .
2. 01 The bonds issued hereunder shall be printed in substantially the
following form:
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RESOLUTION NO. 1055
RESOLUTID'i ESTABLISHING THE TERMS OF 51 ,000,000
GENERAL O EL:GATIO J l-;ATER AND SE14ER BONDS (SERIES 8)
BE IT RESOLV=D by the City Council of the City of Eden Prairie , Minne-
sota, as follo,-rs :
Section 1 . Authorization and Sale.
The Council has determined the necessity of the issuance of general obli-
gation bonds of the City in the principal amount of $1 ,000,000, comprising
$.30,400 principal amount of bonds to be issued for 'the purpose of improvement
of the municipal rater and sewer systems , and $19,600 principal amount of addi-
tional 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 ,
and has contracted for the sale thereof at a price of S 978,908 , plus accrued
interest on the principal amount of $1 ,000,000 to the date of delivery, and
upon the further terms and conditions Which are set forth in this resolution.
Section 2. Form of Bonds and Coupons.
2. 01 The bonds issued hereunder shall be printed in substantially the
following form:
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UNITED STATES 0= AMERICA
STATE OF MINNESOTA
COUNTY OF HEN NEPIN
CITY OF EDEN PRAIRIE
GENERAL OBLIGATION WATER AND SEWIER BOND
(SERIES 8)
No. $ 5,000
KNOlvi ALL MEN BY THESE PRESENTS that the City 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 DOLLARS
on the first day of December, 19 , or, if this bond is prepayable as stated be-
tow, on an earlier date on t.r'hich it shall have been duly called for redemption ,
and to pay interest tnereon 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 �- en duly called for redemption;
said interest being payable June 1 , 1976, and semiannually thereafter on
December 1 and June 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 art- payable at the main office of the
Pdo western National Bank of Minneapolis in . Minneapolis , Minnesota, or at the
office of such successor paying agent as may be designated by the City Council
under the provisions of the resolution authorizing the issuance hereof, in any
coin or currency of the United States of America %,,hich on the respective dates
of payment is legal tender for payment of public and private debts , and for the
prompt and full payment thereof ;hen due the full faith and credit and taxing
powers of the City of Eden Prairie have been and are hereby irrevocably pledged .
This bond is one of an issue in the ,aggregate principal amount of
$1 ,000,000, all of like date and tenor except -s to serial number, interest
rate, maturity date and redemption privilege, issued for the purpose of pro-
viding funds for the improvement of the municipal water and sewer systems , pur-
suant to authorizing resolutions duly adopted by the City Council of the City
of Eden Prairie, and pursuant to and in full conformity with the provisions
0 f t,ie Const i tuti on and laws of the State of iii nnesota thereunto enabling
including Minnesota Statutes, Section 444.075.
The bonds of this issue maturing in the years 1978 through 1985 are
not subject to redemption before maturity, but those maturing in the years
1986 through 1991 are each subject to redemption and prepayment at the option
of the City on December 1 , 1985, and on any interest payment date thereafter,
in inverse order of their serial numbers , and at a price of par 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
r` first class or its metropolitan area. Such notice will also be mailed to the
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holder, if known, of each bond called for redemption , and to the bank at which
principal and interest thereon are then payable, but published notice of redemp-
tion shall be effective without mailing. Holders of prepayable bonds may request
mailed notict� of reda;nation by notifying the City Treasurer in writing of their
names and adcresses and the serial numbers of the bonds held by them.
IT IS CERTIFIED A:,D RECITED that all acts , conditions and things re-
quired by the Constitution and laws of the State of Mlinnesota 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 o::l i gati on of the City
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 issue of bonds ,
adopted on November 4, 10-75, the City has covenanted and agreed with the holders
of said bonds that the, City 4ill impose and collect charges for the service, use
and availability of its municipal water and sewer systej-s at the times and in
the amounts raquired to produce net revenues which �•rith collections of special
assessments will be adequate to pay all principal and interest due on bonds of
this issue; that all taxable property within the City is also subject to the
levy of a direct, general , ad valorem tax, if needed, for the payment of the
principal and interest, aithout limitation as to rate or amount; and that the
issuance of this bond did not cause the indebtedness of the City to exceed any
constitutional cr statutory limitation.
IN 14ITNESS r;HEREOF 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 executed by the signatures of the
Mayor and City Manager and its corporate seat to be affixed hereto, said sig-
natures and seal being true and correct printed, lithographed or engraved
facsimiles of the originals thereof, except for the signature of the City
Manager mEnually subscribed on. the face of this bond, and has caused this
bond to be dated as of December 1 , 1975.
(Facsimile signature)
Mayor
City Manager
(Facsimile Seal )
2.02 Interest on each bond to maturity shall be represented by u consecu-
tively numbered set of interest coupons , printed in substantially the following
form:
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On the first day of June (Decerber) , 19 unless the bond descr;bed
belo-•r is subject to and has been called for earlier redemption, the Cit.." of
Eden Prairie, Hennepin County, Minnesota, rill pay to bearer at the main office of the
Northwestern National Bank of Minneapolis , in 1=li nneapol i s, Minnesota , the amc;:nt
shown hereon in lawful money of the United States of America for intere-st th-en
due on its General Obligation t-later and Serer Bond (Series 8) , dated Dece-ber
1 , 1975, No.
CFacsimile 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 o,"
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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Sect-,on 3. Bond Terms , Execution and Delivery.
3. 01 The issued hereunder shall be designated General Obligation
Water and ponds (Series 8) , dated December 1 , 1975, shall be issued in
the denominat;. of $ 5 ,000each , nurbered serially from 1 to 200 , -inclusive,
shall mature s_ri ?11y on December 1 in the respective years and amounts stated
below and s::ai ; bear interest from date of issue until paid or duly called F'or
redemption a-:_ -espective annual rates stated opposite their maturity years:
Interest Interest
Year Am0U. t Rate Year Amount Rate
1978 $25,OC- 5. 00� 1985 $100,000 6.10�
1979 205,0 D 5. 15 1986 100,000 6.25`:
1980 25,C :: 5.301, 1987 100,000 6.40/-�
1981 50,C_;'1_1 5.45% 1988 100,000 6.60'
1982 50,C 5. 60 1989 1G01000 6.701-3
1983 50,CC 5.80.0 1990 100,000 6.8 0%
1984 75,0 6.00�1'0 1991 100,000 6.901M
3. 02 The bor:ds maturing in the years 1978 through 1985 shall not be sub-
ject to redo;7'Dt;on before �.:aturity. The bonds maturing in the years 1986 through
1991 shall each be _subject to redemption and prepayment at the option of the City
on December 1 , and on any interest payment date thereafter , in inverse
order of their Serial numbers , and at a price of par plus accrued interest to
the date fi xeC' fof- redeimpt ion. Not less than thirty days before the date fi xe�
for redemption c. any bonds , notice of the call thereof shall be published in a
daily or periodical in a Minnesota city of the first class or its rreTro-
i politan are2 , circulates throughout the State and furnishes financial n;. s
as a part of its service, and shall also be mailed to the holder of each bond
called for red=-7ption 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 publis�:== call for redemption.
3. 03 The Interest on the bonds shall be payable June 1 , 1976, and semi-
annually ther-ea=_er on December 1 and June 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 inMinneapolis , Minnesota which is designated as
paying agent, or in the event of its resignation , removal or incapability of
acting as payir.= agent , at the office of such successor paying agent as may
be appointed by the City Council , and the City agrees to pay the reasonable
and customary &=rges of the paying agent for this service. Upon merger or
consolidation of the paying agent with another corporation, if the resulting
corporation is a bank or trust company authorized by law to conduct such busi-
ness , such core-_oration shall be authorized to act as successor paying agent.
No resignation of the paying agent and no appointment of a successor paying
agent shall becc,-e effective until the date specified in a notice of the ap-
pointment which zhe COUncil shall cause to be published in a financial news-
paper in a ".1i nnesota city of the first class or its metropolitan area , not
less than thirty days before said effective date.
3. 04 The Lbonds 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 the City Manager. All of the signatures
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shall be printed , engraved or lithographed facsimiles of the original signa-
tures of the officers , except for the signature of the City Manager on the face
of each bond , ,Jhich shall be manually subscribed , and a facsimile of the seal
shall be printed on the face of each bond. On the date fixed for the delivery
of the bonds the Mayor and City Manager shall make and -file in the office of
the City Clerk and deliver to the purchasers a certificate in accordance with
the provisio-is of Section 103(c) of the Internal Revenue Code of 1954, as
amended, and Proposed Treasury Regulations , Sections 1 . 103-13 and 1 . 103-14,
stating that on the basis of facts , estimates and circumstances in existence
on the date of issue and delivery of the bonds , as such facts , estimates and
circumstances are set forth in the certificate, it is not expected that the
proceeds of the bonds will be used in a manner that would cause the bonds to
be arbitrage bonds within the meaning of said Code and Regulations. The bonds
shall then be delivered by the Treasurer to the purchaser on receipt of the
cash purchase price stated in Section 1 above. The purchasers shall not be
required to see to the application of the proceeds of the bonds , but $ 125,075
shall be transferred to the Sinking Fund referred to in Section 4, for the
purpose of paying interest due or, the bonds through December 1 , 1977 , and the
remaining proceeds shall be credited to the Capital Projects Fund created for
the construction of the waterv.,orks and sewerage improvements referred to in
Section 1 .
Section 4. Bond Sinking Fund; Pledge of Water and Seger 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 Obligatior� 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 suffi -
cient 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 the amount of bond proceeds directed in
Section 3.04, the receipts of all ~eater and sewer system net revenues pledged
by the terms of this resolution , all collections of ad valorem taxes levied
herein , and all ether moneys received for or appropriated to the payment of
said bonds and interest.
4.02 It is estimated that the net revenues of the municipal water and
sewer systems , together with collections of any taxes and special assessments
levied for water and sewer improvements and paid into said Revenue Bond Fund
will be sufficient to pay the principal of and interest on all General Obli-
gation Slater and Sewer Bonds of the City, including the bonds presently is-
sued and those previously issued under the dates of April 1 and November 1 ,
1971 , June 1 and December 1 , 1972, July 1 , 1973, March 1 , 1974, and April 1 ,
1975.
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 authorized 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
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to the City and its inhabitants according to schedules calculated to produce net
revenues vrhich , together with collections of special assessments levied for
water and se%,rer improvements paid into the above fund , vill 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 th= payment
of said bonds and interest thereon; provided , that nothing herein shall preclude
the City from hereafter making further pledges and appropriations of ne-I:. reve-
nues of the v,,ater and sewer utility for the payment of additional obligations of
the City hereafter authorized if the City Council determines before the author-
ization 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 addi-
tional obligations, for payment of the bonds herein authorized and such addi-
tional obligations. Such further pledges and appropriations of said net reve-
nues 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 tax-
ing powers . of the City shall be and are hereby irrevocably pledged. To provide
money/s -For the payment thereof, in the event and to the extent that the net
revenues hereinabove pledged to the payment of the bonds are insufficient for
that purpose in any year, there is hereby levied upon all of the taxable prop-
erty in the City a direct, annual , ad valorem taxwhich 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
year" .
Year Amount Year Amount Year Amount
(See exhibit attached)
Said tax shall be irrepealable as long as any of said bonds are outstanding ,nd
unpaid; provided that in accordance with the provisions 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 out-
standing , report to the Council the amount on hand in the 'dater and Sewer Sys-
tem General 0-ligation °evenue Bond Fund hereinabove established , and the Coun-
cil 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 Director of Finance and Records , so that only
the balance of the tax levied for that year will be •.:ollected .
Section 5. Defeasance.
When any bonds of this issue and all interest accrued thereon has been fully
paid , or provision for such payment has been made in the manner herein set forth ,
all pledges , covenants and other rights granted to the holder thereof by this
resolution shall cease, and the bond shall no longer be considered outstanding
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COMPUTATION OF TAX LEVY ON:
$1,000,000 WATER AND SEWER BONDS
CITY OF EDEN PRAIRIE, MINNESOTA
LEVY COLLECT AMOUNT AMOUNT + 10% TAX
1977 1978 $87,537.50 $96,291 $96,300
1978 1979 $86,287.50 $94,916 $95,000
1979 1980 $85,000.00 $93,499 $93,500
1980 1981 $1o8,6T5.00 $119,542 $119,600
1981 1982 $105,950.00 $116,544 $116,600
1982 1983 $103,150.00 $113,464 $1113,500
1983 1984 $125,250.00 $137,774 $137,800
1984 1985 $145,750.00 $160,3214 $160400 -
1985 1586 $i39,650.00 $153,614 $153,700
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1986 1987 $133,400.00 $146,739 $146,800
1987 1988 $127,000.00 $139,699. $139,700
1988 1989 $120,4o0.0o $132,439 $132,500
1989 1990 $113,700.00 $125,069 $125,100
1990 1991 $106,.900.00 $117,589 $117,600
$1,588,650.00 $1,748,loo
NOTE: BOND PROCEEDS (CAPITALIZED INTEREST) OF $125,075.00
WILL BE USED TO PAY $125,075.00 OF INTEREST PAYMENTS DUE
6-1-1976, 12-1-1976, 6-1-1977, 12-1-1977
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PROGRAM COPYRIGHT BY EHLERS AND ASSOCIATES, INC., 3-3-690 REV. 3-14-73, 2-27-74
hereunder. Any bond or coupon for the payment or redemptior; of which money shall
have been deposited with the paying agent, whether at or prior to the maturity
thereof, shall be deemed paid within the meaning of this section , provided that
if any such bond is to be r seemed before maturity, notice o= the redemption
thereof shall have been dul;r publ i shed. Alternatively, any �;;nds and the coupons
appertaining thereto, whether at or before the maturity cr redemption date of
such bonds , shall be deemed paid ti,J thin the meaning of this section if, but only
if.
(a) In case any cf such bonds are to be redeemer' te-fore maturity,
notice of such redemption shall have been duly published ; ace
(b) There shall have been deposited in escro:•: a bank or trust
company qualified by law to perform the duties referred to .n clause (c) below
securities which are direct obligations of the United States, or of such agen-
cies of the United States as may be permitted by law, the principal of and in-
terest on which, when due, ti:i17 provide money which, tocether with any money
deposited with the escrow agent at the same time, will be s,_;f-"icient to pay the
principal and interest due and to becorre due on such bonds en and prior to the
redemption dates or maturity dates thereof, as the case may and
(c) The escrow agent shall enter into an agree-ent with the City pro-
viding that all securities so deposited and all money depose -ed and received in
payment. of the securities dill be held in trust for and be =Dp1 i ed only to the
pa �,;ent of the principal due on the maturity dates or earlier redemption dates
of such bonds , as the case may be, and the interest when d-Ja :hereon at and
prior to such maturity and redemption dates; and
(d ) Such deposit ar:d escro,,: agreement shall be and executed only
pursuant to and in accordance viith express authorization by 1 =as then in effect.
Section 6. Certifications of Proceedings.
6. 01 The City Clerk is directed to file with the Director of Finance and
Records of Hennepin County a certified copy of this resol+.:. _:,, and such other
infor,nation as the Director of Finance and Records may repo •-e, and to obtain
from, the Director of Finance and Records a certificate stat:.-a that such bonds
have been entered upon his bc►rd register and that the tax re quired by law for
payment of said bonds has been levied.
6. 02 The officers of the City and the Director of Finance and Records
are authorized and directed to prepare and furnish to the pti^chasers of the
bonds , and to bond counsel , certified copies of all proceed-': ngs 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 bonr_ , as such facts
appear from the officers ' books and records or are other•;ise i:no`;:n to them.
All such certified copies , certificates and affidavits , including any hereto-
fore furnished , constitute representations of the City as to the facts recited
therein .
f -- Mayo r
Attest: �..�
-"i ty Clerk
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