HomeMy WebLinkAboutResolution - 1057 - $250,000 Certificates of Indebtedness - 12/01/1975 RESOLUTION NO. 1057
RESOLUTION ESTABLISHING THE TERMS OF
$250,000 CERTIFICATES OF INDEBTEDNESS
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 certificates of indebtedness of the City in the principal amount of
$250,000, comprising $245 ,100 principal amount of certificates to be issued
for the purpose of purchasing fire, police and street maintenance equipment ,
and $4,900 principal amount of additional certificates of the same series to
be issued pursuant to Minnesota Statutes , Section 475. 56, in evidence of part
of the interest to be .paid on the certificates , and has contracted for, the sale
thereof at a price of $245,100 , plus accrued interest on the principal amount
of $250,000 to the date of delivery, and upon the further terms and conditions
which are set forth in this resolution.
Section 2. Form of Certificates and Coupons .
2. 01 The certificates issued 'hereunder shall be printed in substantially
the following form:
r
4
-1-
RESOLUTION NO. 1057
RESOLD__ ESTrOBLISHING THE TERMS OF
$250,030 CERTIFICATES OF INDEBTEDNESS
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 certificates of i ndebte-ness of the City in the principal arrount of
$250,000, comprising $245,100 crincipal amount of certificates to be issL,ed
for the purpose of purchasing ;ire, police and street maintenance equipment ,
and S4,909 principal amount of additional certificates of the same series to
be issued pursuant to Minnesota Statutes , Section 475. 56, in evidence of part
of the interest to be paid on the certificates, and has contracted for the sale
thereof at a price of $248,387 , plus accrued interest on the principal amount
of $250,000 to the date of deli,,•ery, and upon the further terms and conditions
which are set forth in this resolution.
Section 2. Form of Certificates and Coupons .
2.01 The certificates issued hereunder shall be printed in substantially
the fol1oviing form:
_l_
UNITED STATES OF AMERICA
STATE OF I'lIPINESO T A
COUINTY Or HENNEPIN
CITY OF EDEN PRAIRIE
CERTIFICATE OF INDEBTEDNESS
No. a 51000
KNOW ALL MEN BY THESE PRESENTS that the City of Eder: ::-airie, a duly
organized and existing municipality of Hennepin County, Minne_ot_ , for value
received acknotvl edges itself to be indebted and promises to p:E-v o bearer the
sum of
FIVE THOUSA,,D DOLLARS
on the first day of December, 19 without option of prior pay-:Ent., and to pay
interest thereon at the rate of
per cent ( %) per annum from t-he date hereof Until said princn.pal sum is paid ;
said interest being payable Juna 1 , 1976, and semiannually thef_e=`ter on Decem-
ber 1 and June 1 in each year, interest to maturity being p?y=�: e in accordance
with and upon presentation and surrender of the interest coupc_ns 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 City Council
under the provisions of the resolu--ion authorizing the issuance hereof , in any
coin or currency of the United States of America which or, the : e_cective dates
of payment is legal tender for payment of public and private d_b 3 , and for the
prompt and full payment thereof when due the full faith r.nd credit and taxing
p3wers of the City of Eden Prairie have been and are hereby irrevocably pledged.
This certificate is one of an issue in the aggregate p.' ncipal ar„ount
of $250,000, all of like date and tenor except as to serial r, ;-.ter, interest
rate and maturity date, issued for the purpose of providing =u:,ds for the pur-
chase of fire, police and street raintenance equipment, pursuant to authorizing
resolutions duly adopted by the City Council of the City of Eden rairie, and
pursuant to and in full conformity ..ii th the provisions of the Constitution and
laws of the State of Minnesota thereunto enabling .
IT IS CERTIFIED AND RECITED that all acts , conditions aid things re-
quired by the Constitution and 1?;rs of the State of Minnesota :c dor:e, to
exist, to happen and to be performed precedent to and in the iss--=nce of this
certificate, in order to make it a valid and binding general oDi ==tion of the
City of Eden Prairie in accordance with its terms , have been do exist ,
have happened and have been performed in regular and due form, z.-e and manner
as so required; that before the delivery of said bonds the City �=s 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 arj in amounts
not less than 5% in excess of the amounts required to pay said certificates and
interest thereon when due, which tax is subject to ' reduction onlf if and to the
extent that funds on hand exceed the amount needed for this pur.:se, and addi-
tional taxes , if needed, are required by law to be levied upon all such property
-2-
r
without limitation as to rate or amount; and that the issuance of this certifi-
cate did not cause the indebtedness of the City to exceed any constitutional or
statutory limitation .
IN WITi;ESS h,,rRZOE the City of Eden Prairie, by its City Council , has
caused this certificate 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 seal to be affixed hereto , said signatures
and seal being true and correct printed , lithographed or engraved facsimiles of
the originals thereof, except for the signature of the City Manager manually
subscribed on the face of this certificate , and has caused this certificate to
be dated as of Dece.-.ber 1 , 1975.
(Facsimile signature)
Mayor
City Manager
(Facsimile Seal )
2.02 Interest on each certificate to maturity shall be represented by a
consecuti-ely numbered set of interest coupons , printed in substantially the
following form:
i
No. .
On the first day of dune (December) , 19 the City of Eden Prairie,
Hennepin County, ?•ii ninesota, will pay to bearer at the main office of the Northwestern
National Bank of Minneapolis in Minneapolis, Minnesota , the amount
shown hereon in 1 a rul money of the United States of America for interest then
due on its Certificate of Indebtedness, dated December 1 , 1975, 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 certificate and identified by a certifi-
cate in the following form:
Ve certify that the above is a full , true and correct copy of the
legal opinion rendered by bond counsel on the issue of certificates of the
City of Eden Prairie, ;•:innesota, which includes the within certificate, dated
as of the date of delivery of and payment for the certificates .
(Facsimile signature) (Facsimile signature)
City Manager Mayor
r
1
-3-
Section 3. Certificate Terms , Execution and Delivery.
3.01 The certificates issued hereunder shall be designated Certificates
of Indebtedness , dated December 1 , 1975, shall be issued in the denomination
of $ 5,000each, numbered serially from 1 to50 , inclusive, shall mature seri-
ally on December 1 in the respective years and amounts stated be o,.,.,, without
option of prior payment, and shall bear interest from date of issue until paid
at the respective annual rates stated oppcsite their maturity years :
interest
Year Amount Rate
1976 $25,000 4.50%
1977 50,000 4.75%
1978 50,000 5.00%
1979 50,000 5.15%
1980 75,000 5.30%
3.02 The interest on the certificates shall be payable June 1 , 1976, and
semiannually thereafter on December 1 and June 1 in each year. The principal
of and interest on the certificates 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 , re:--oval or in-
capability of acting as paying 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 charges of the paying agent for this serv►ce. Upon
merger or consolidation of the paying agent with another corporation , if the
resulL*ing corporation is a bank or trust company authorized by la-.., to conduct
such business , such corporation shall be authorized to act as successor paying
agent. No resignation of the paying agent and no appointment of a successor
paying agent shall become effective until the date specified in a notice of the
appointment rihich the Council shall cause to be published in a financial nei.s-
paper in a I-linnesota city of the first class or its metropolitan area , not less
than thirty days before said effective date.
3 .03 The certificates 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 idanager. All of the signatures
shall be printed, engraved or lithographed facsimiles of the original signatures
of the officers , except for the signature of the City Manager on the face of
each certificate, which shall be manually subscribed, and a facsimile of the
seal shall be printed on the face of each certificate. On the date fixed for
the delivery of the certificates the Mayor and City Manager shall rake and file
in the office of the City Clerk and deliver to the purchasers a certificate in
accordance with the provisions of Section 103(c) of the Internal Revenue Code
of 1954, as amended , and Proposed TreasL!ry 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 certificates , as such facts,
estimates and circumstances are set forth in the certificate, it is not expected
that the proceeds of the certificates will be used in a manner that would cause
the certificates to be arbitrage bonds within the meaning of said Code and Regu-
lations . The certificates shall then be delivered by the Treasurer to the
I
-4-
purchaser on receipt of the cash purchase price stated in Section 1 above. The
purchaser shall not be required to see to the application of the proceeds of the
certificates , but the accrued interest paid by the purchaser shall be credited
to the sinking fund referred to in Section 4, and the remaining proceeds shall
be credited to a special fund and used solely for the acquisition of fire, police
and street maintenance equipment as contemplated in Section I .
Section 4. Sinking Fund and Tax Levies.
4 . 01 A separate sinking fund is created , and shall be maintained by the
Treasurer- on the City' s official books and records wart from all other funds
and used for no purpose other than payment of principal and interest on said
certificates ; provided, that if any payment of principal or interest shall be-
come due when the fund is not sufficient therefor, the Treasurer shall pay the
same from the general fund , and the general fund shall be reimbursed out of the
proceeds of the taxes herein levied.
4.02 For the prompt and full payment of the principal of and interest on
said certificates as the same respectively beco due, the full faith, credit
and taxing polwers of the City shall be and are hareby irrevocably pledged. To
provide moneys for the payment thereof, a direct , annual tax is levied upon all
taxable property in the City, and is irrevocabl;/ appropriated to the sinking
fund, and shall be spread upon the tax. rolls and collected with and as a part
of other general property taxes in the City, in the years and amounts as fol -
lows:
Levy Year Collection Year Amount
(See exhibit attached)
Said tax shall be irr`pealable as long as and until the full amount thereof shall
have been paid ; provided , that the City reserves the right and power to reduce
the levies in the runner and to the extent per'-fitted by Minnesota Statutes , Sec-
tion 475. 61 .
Section 5. Certifications of Proceedings .
5. 01 The City Clerk is directed to file with the Director of Finance and
Records of Hennepin County a certified copy of this resolution , and such other-
information as the Director of Finance and Records ray require, and to obtain
from the Director of Finance and Records a certificate stating such that certi-
ficates have been entered upon his bond register and that the tax required by
law for payment of said certificates has been levied .
5.02 The officers of the City and the Director of Finance and Records
are authorized and directed to prepare and furnish to the purchasers of the
certificates , and to bond counsel , certified copies of all proceedings and
records of the City relating to the authorization and issuance of the certifi-
cates and such other affidavits and certificates as may be reasonably required
-5-
s
Y
C M,' '.fTX ION OF TAX LEVY ON:
S?�L,CCG CERTIFICATES OF INDEBTEONESS
CITY OF EDEN PRAIRIE, MINNESOTA
LEVY COLLECT A%K)u,4T AMOUNT +10 c TAX
1970 1977 $23,975.00 $26,372 $26,400
1977 1978 $59,0;0.00 $64,954 $65,000
1978, 1979 $50,550.00 $62,204 $62,200
,979 1980 $78,975.00 $860872 $86,900
$218,550.00 $24C,500
F.ROGRM COPYRIGHT BY EHLERS AM ASSOCIATES, INC., 3--3-69, REV. 3-14-73, 2-27-74
NOTE — IN ADDITION, THE CITY LEVIED $10,000 IN 1974, FOR 1975
COLLECTION, AND $65i000 IN 1975, FOR 1976 COLLECTION, IN
ANT I C I PAT I ON OF THIS BCA,,JD ISSUE.
to show the facts relating to the legality and marketability of the certificates ,
as such facts appear from the officers ' books and records or are otherwise kno-vm
to them. All such certified copies , certificates and affidavits , including any
heretofore furnished, constitute representations of the City as to the facts re-
cited therein.
Mlayor
11
Attest:
C!ty, erk
f
-6-