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HomeMy WebLinkAboutResolution - 1188 - Authorizing, Selling and Establishing the Terms of $1,640,000 General Obligation Water & Sewer Bonds (Series 9) - 09/14/1976 RESOLUTION NO. 1188 RESOLUTION AUTHORIZING, SELLING AND ESTABLISHING THE TERMS OF $1 ,640,000 GENERAL OBLIGATION WATER AND SEWER BONDS (SERIES 9) BE IT RESOLVED by the City Council of the City of Eden Prairie, Minne- sota, 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 $1 ,640,000, comprising $1 ,608,000 principal amount of bonds to be issued for the purpose of improve- ment of the municipal water and sewer systems, and $32,000 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 con- formity with the notice. The most favorable of such bids is ascertained to be that of BancNorthwest, of Minneapolis, Minnesota, and Juran & Moody, Inc., of St. Paul , Minnesota , and associates, to purchase the bonds at a cash price of $ 1,615,400 , Flus accrued interest on the total principal 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. City for the sale of the bonds in accordance with the pro- posal described in Section 1 .02, and to deliver 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 return 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 substantially the following form: r � -7- ' I UNITED STATES OF AMERICA STATE OF MINNESOTA • COUNTY OF HENNEPIN CITY OF EDEN PRAIRIE GENERAL OBLIGATION WATER AND SEWER BOND ' (SERIES 9) No, $ 5;000 KNOW 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 January, 19 or, if this bond is prepayable as stated be- low, 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 July 1 , 1977, and semiannually thereafter on January 1 and July 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 National City 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 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 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 ,640.,000, all of like date and tenor except as to serial number, interest rate, maturity date and redemption privilege, issued for the purpose of provid- ing funds for the improvement of the municipal water and sewer systems, pursuant 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 of the Con- stitution and laws of the State of Minnesota thereunto enabling., including Minne- sota Statutes, Section 444.075. The bonds of this issue maturing in the years 1978 through 1987 are not subject to- redemption before maturity, but those maturing in the years 1988 through 1997 are each subject to redemption and prepayment at the option of the City on January 1 , 1987, 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 first class or its metropolitan area. Such notice will also be mailed to the holder, if known, of -2- each bond called for redemption, and to the bank at which principal and interest thereon are then payable, but published notice of redemption shall be effective cdithout mailing. Holders of prepayable bonds may request mailed notice of re- emption by notifying 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 re-_ quired by the Constitution and laws of the State of Minnesota to be -done, to ex- ist, 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 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 Septem- ber 14, 1976, 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 municipal water and sewer systems at the times and in the amounts required to produce net revenues which with collections of special assessments will be ade- quate to pay all principal and interest due on bonds of this issue; that all tax- able 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, without 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 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 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 sub- scribed on the face of this bond, and has caused this bond to be dated as of - October 1 , 1976. (Facsimile signature) Mayor City Manager (Facsimile Seal ) 2.02 Interest on each bond to maturity shall be represented by a consecu- . Lively numbered set of interest coupons, printed in substantially the following form: On the first day of July (January), 19. unless the bond described be- low is subject to and has been called for earlier redemption, the City of Eden Prairie, Hennepin County, Minnesota, will pay to bearer at National City Bank of Minneapolis , 'in Minneapolis, 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 9), dated October 1 , 976, No. (Facsimile signature) (Facsimile signature) City Manager Mayor -3- 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 -4- Section 3. Bond Terms, Execution and Delivery. • 3.01 The bonds issued hereunder shall be designated General Obligation Water and Sewer Bonds (Series 9), dated October 1 , 1976, shall be issued in the denomination of $5,000 each, numbered serially from 1 to 328 , inclusive, shall nature serially on January 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 Amount Rate Year Amount Rate 1978 $105,000 3.75% 1988 $110,000 5.40% 1979 105,000 4.00% 1989 110,000 5.60% 1980 105,000 4.25% 1990 90,000 5.70% 1981 120,000 4.50% 1991 60,000 5.80% 1982 120,000 4.60% 1992 60,000 5.90% 1983 90,000 4.75% 1993 60,000 6.00% 1984 90,000 4.90% 1994 60,000 6.00% 1985 85,000 5.00% 1995 30,000 6.10% 1986 90,000 5.10% 1996 30,000 6.20% 1987 90,000 5.25% 1997 30,000 -6.20% 3.02 The bonds maturing in the years 1978 through 1987 shall not be subject to redemption before maturity. The bonds maturing in the years 1988 through 1997 shall each be subject to redemption and prepayment at the option of the City on January 1 , 1987, 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 re- demption 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 metropolitan area, which circulates throughout the State and furnishes financial news as a part of its service, and shall also- be mailed 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 July 1 , 1977, and semi— annually thereafter on January 1 and July 1 in each year. The principal of and interest on the bonds shall be payable at National City 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 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 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 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 which the Council shall cause to be published in a financial news- paper in a Minnesota city of the first class or its metropolitan area, not less than thirty days before said effective date. -5- 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 y the signatures of the Mayor and of the City Manager. All of the signatures hall 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, which 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 provisions of Section 103Cc) 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 l above. The purchasers shall not be required to see to the application of the proceeds of the bonds, but $7,100 plus any accrued interest received at the . time-of delivery, shall be transferred to the Sinking Fund referred. to in Section 4, 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. Section 4. Bond Sinking Fund; Pledge of plater and Sewer Net Revenues and Full Faith and Credit. 4.01 ' . Principal and interest on said bonds shall be paid from the "water Ond Sewer. System General Obligation ation Revenue Bond Fund" heretofore created b y g y 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 water and sewer system net revenues pledged by the terms o—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 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 Obliga- tion Water and Sewer Bonds of the City, including the bonds presently issued and those previously issued under the -dates of April l and November 1 , 1971 , June 1 and December 1 , 1972, July 1 , 1973, March 1 , 1974, and April 1 and December 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 olders from, time to time of the bonds herein authorized that so long as any the bonds are outstanding, the City will impose and collect reasonable -6= charges for the service, use and availability of its water and sewer utility to the City and its inhabitants 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 sufficient to pay all principal and interest when due on said bonds, and said net revenues, to the ex- tent necessary, are hereby irrevocably 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 reve- ' nues of the water 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, far 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 moneys 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 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 Year Amount Year Amount Year Amount (see exhibit following)' Said tax shall be irrepealable as long as any of said bonds are outstanding and 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 Water and Sewer Sys- tem General Obligation Revenue 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 collected. 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 -7- COM UTATION OF TAX LEVY ON: $1, 0.000 G.O. WATER AND SEWER BONDS CITY OF EDEN PRAIRIE, MINNESOTA LEVY COLLECT AMOUNT AMOUNT + 10% TAX 1976 1977 $208,462.89 $229,309 $229,300 1977 1978 $183,832.50 $202,215 $202,300 1978 1979 $179,632.50 $197,595 $197,600 .1979 1980 $190,170.00 $209,186 $209,200 1980 1981 $184,770.00 $203,246 $203,300 1981 1982 $149,250.00 $164,174 $164,200 1982 1983 $144,975.00 $159,472 $159,500 1983 1984 $135,565.00 $149,121 $149,200 • 1984 1985 $136,315.00 $149,946 . $150,000 1985 1986 $131,725.00 $1441?897 $144,900 1986 1987 $147,000.00 $161,699 $161,700 1987 1988 $141,o6o.00 $155,165 $155,200 1988 1989 $114,900.00 $126,389 $126,400 1989 1990 $79,770.00 $87,746 $87,800 1990 1991 $76,290.00 $83,918 $84,000 1991 1992 $72,750.00 $8o,024 $80,100 1992 1993 , $69,15o.00 $76,064 $76,loo 1993 1994 $35,550.00 $39,104 $39,100 1994 1995 J $33,720.00 $37,091- $37,100 1995 1996 $31,860.00 $35,045 $35,100- $2,446,747.89 $2,692,100 ROUNDING BY COMPUTER MAY CAUSE DIFFERENCE OF A FEW CENTS WHEN CHECKING COLUMN TOTALS WITH TOTALS SHOWN. resolution shall cease, and the bond shall no longer be considered outstanding hereunder. Any bond or coupon for the payment or redemption 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 redeemed before maturity, notice of the redemption thereof shall have been duly published. Alternatively, any bonds and the coupons appertaining thereto, whether at or before the maturity or redemption date of such bonds, shall be deemed paid within the meaning of this section if, but only if: (a) In case any of such bonds are to be redeemed before maturity, notice of such redemption shall have been duly published; and (b) There shall have been deposited in escrow with a bank or trust ` company qualified by law to perform the duties referred to in 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, will provide money which, together with any money deposited with the escrow agent at the same time, will be sufficient to pay the principal and interest due and to become due on such bonds on and prior to the redemption dates or maturity dates thereof, as the case may be; and (p l The escrow agent shall enter into an agreement with the City pro- viding that all securities so deposited and all money deposited and received in payment of the securities will be held .in trust for and be applied only -to the payment of the principal due on the maturity dates or earlier redemption dates of such bonds, as the case may be, and the interest when due thereon at and prior to such maturity and redemption dates; and • (d) Such deposit and escrow agreement shall be made and executed only ` pursuant to and in accordance with. express authorization by laws then in effect. Section 6. Certifications of Proceedings. 6.Q1 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 may require, and to-obtain from the Director of Finance and Records 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 Director of Finance and Records are authorized 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 certified copies, certificates and affidavits, including any hereto- fore furnished, constitute representations of the City as to the facts recited therein. ,dY4 FLO " Mayor Attest: City Clerk -8-