HomeMy WebLinkAboutResolution - 78-228 - Relating to $2,350,000 Water and Sewer Bonds, Authorizing Issuance, Form, Providing for Payment and Levying - 12/05/1978 RESOLUTION NO. 78-228
RESOLUTION RELATING TO $2,350, 000 WATER AND
SEWER BONDS OF THE CITY, AUTHORIZING THE
ISSUANCE AND PRESCRIBING THE FORM AND DETAILS
THEREOF, PROVIDING FOR THEIR PAYMENT FROM
AN EXISTING BOND FUND, AND LEVYING AND OTHER-
WISE PROVIDING FOR THE PAYMENT THEREOF
BE IT RESOLVED by the City Council of the City of Eden
Prairie, Minnesota, as follows:
Section 1. Recitals.
1_0 1 This Council has heretofore determined that it is neces-
sary and in the best interests of the inhabitants of the City to
issue general obligation bonds of the City in the amount of
$2, 350, 000 for the purpose of financing improvements to .the water
and sewer systems of the City.
1. 02 All acts, conditions and things necessary to be done, to
exist, to happen and to be performed prior to the issuance of bonds
for the purpose referred to in Section 1. 01 have been done,. -do exist
and have been performed as required by law.
1. 03 This Council finds and determines that the maturities
of the Bond, as set forth in Section 3. 01 hereof, are warranted by
• the anticipated collection of the assessments levied for the cost
of the Improvements.
Section 2. Form of Bonds and Interest Coupons.
2. 01 The Bonds shall be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF '_vIINNESOTA
COUNTY OF HENNEPIN
CITY OF EDEN PRAIRIE
WATER AND SEWER BOND
No. . $5,000
KNOW ALL MEN BY THESE PRESENTS that the City of Eden Prairie,
Hennepin County, Minnesota, acknowledges itself to be indebted and
for value received promises to pay to bearer upon presentation and
surrender hereof the principal sum of
FIVE THOUSAND DOLLARS
on the lst day of December, 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 from the date
hereof until, said principal sum is paid or until this Bond, if
prepayable, has been duly called for redemption, at the rate of
percent ( o) per annum, such interest being payable on
June 1, 1979, :and semiannually thereafter on each June 1 and
December 1, interest to maturity being represented by and payable
in accordance with and upon presentation and surrender of the
interest coupons appurtenant hereto. Both principal and interest
are payable at the American National Bank and Trust Comnan_y in St. Paul,
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 public and private debts. For the
prompt and full payment of such principal and interest as the same
become due, the full faith, credit and taxing powers of the City
are hereby irrevocably pledged.
This Bond is one of an issue in the aggregate principal amount
of $2, 350, 000, all of like date and tenor except as to serial
number, maturity date, interest rate and redemption privilege,
issued by the City for the purpose of financing improvements to
the water and sewer systems of the City, and is issued pursuant to
resolutions duly adopted by the City Council and pursuant to and
in full conformity with the Constitution and. laws of the State of
Minnesota thereunto enabling, including Minnesota Statutes, Section
• 444. 075.
Bonds of this issue maturing in the years 1981 through 1989
are not subject to redemption before maturity, but those maturing
in the years 1990 through 2001 are each subject to redemption and
prepayment at the option of the City on December 1, 1989 , 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 daily or weekly newspaper
published in a- Minnesota city of the first class or its metropol-
itan area, circulating throughout Minnesota and carrying financial
news as a part of its service. 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 pay-
able, but published notice of redemption shall be effective with-
out mailing. Holders of prepayable Bonds may request mailed notice
of redemption by notifying the City Treasurer in writing of their
names and addresses and the serial numbers of the Bonds held by them.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions
and things required by the Constitution and laws of the State of
Minnesota to be done, to exist, to happen and to be performed. pre-
cedent to and in the issuance of this Bond 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
this issue of Bonds, adopted on December 5, .1978, the City has cove-
nanted and agreed with the holders of the Bonds that the City will
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impose and collect charges for the service, use and availability
of its water and sewer systems at the times and in the amounts
• required 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 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, without
limitation as to rate or amount; and that this Bond, together with
all other indebtedness of the City outstanding on the date hereof
and on the date of its actual issuance and delivery, does not ex-
ceed any constitutional or statutory limitation of indebtedness.
IN. WITNESS WHEREOF, _the City of Eden Prairie, Hennepin County,
Minnesota, by its City Council, has caused this Bond to be executed
in its behalf by the signatures of the Mayor and City Manager, at-
tested by the Finance Director/Clerk, and sealed with its corporate
seal, two of said signatures and the corporate seal being facsimiles,
and the appurtenant interest coupons and the certificate on the
reverse side hereof to be executed and authenticated by the facsimile
signatures of said Mayor, -City Manager and Finance Director/Clerk,
all as of December 1, 1978.
Mayor
ATTEST:
Finance Director/Clerk City Manager
(SEAL)
. 2. 02 Interest to maturity on the Bonds shall be represented
by interest coupons in substantially the following form:
No. $
On the lst day of December (June) , 19 , unless the Bond
described below is subject to and has been called for redemption,
the City of Eden Prairie, Hennepin County, Minnesota, will pay to
bearer at the American National" Bank and Trust Company, in St. Paul,
. Minnesota the sum shown hereon for interest then due on its
Water and Sewer Bond, dated December 1, 1978, No.
(Facsimile signature) Facsimile signature) Facsimile signature)
Finance Director/Clerk City Manager Mayor
2. 03 A copy of the text of the opinion of bond counsel shall
be printed on the reverse side of each Bond .and identified by a
• certificate in the following form:
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• 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) (Facsimile signature)
Finance Director/Clerk City Manager mayor
Section 3. Bond Terms, Execution and Delivery.
3. 01. Date, Amount, Denomination and Maturity. The City shall
forthwith issue its negotiable coupon Water and Sewer Bonds (herein-
after, the Bonds) in the aggregate principal amount of $2,350,000.
-The Bonds shall be dated December 1, 1978, shall be 470 in number
and numbered 1 through 470, each in the denomination of $5,000.
The Bonds shall mature serially, in order of serial numbers, on
December 1, in the years and amounts shown below, and Bonds matur-
ing in each year shall bear interest from date of issue until paid
or duly called for redemption at the rate per annum shown opposite -
such year of maturity, as follows:
Year Amount Rate Year Amount Rate
1981 $50,000 5. 60% 1989 $100,000 5.70%
1982 50,000 5.60% 1990 100;000 5.70%
• 1983 50,000 5. 60% 1991 100,000 5.70%
1984 75-, 000 5. 60% 19.92 100,000 5 .70%
'1995 75, 000 5.60% 1993 125,000 5.75%
1986 75,000 5. 60% 1994 125,000 5.80a_
1987 < , 75,000 5. 60% 1995 125,000 5.900 _
1988 75,000 5.70% 1996 150,000 6.00%
1997 150,000 6.00%
1998 175,000 6.00%
1999 175,000 6.00%
2000 200, 000 6.00%
2001 200,000 6.00%
3. 02 Interest. Interest on the Bonds shall be payable on
June 1, 1979, and semiannually thereafter on each June 1 and
December 1. The principal of and interest on the Bonds shall be
payable at the 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 City Council, and the City agrees to pay the
reasonable and customary charges of the paying agent for this ser-
vice. 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 newspaper in a Minnesota city of the first class or
its metropolitan area, not less than thirty days before said effec-
tive date.
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• 3. 03 Bonds maturing in the years 1979 through 1989 shall not
be subject to redemption before maturity. Bonds maturing in the
years 1989 through 1998 shall each be subject to redemption and
prepayment at the option of the City on December 1, 1989 , 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 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 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 such notice shall not
affect the validity of the published call for redemption.
3. 04 The Bonds shall be prepared under the direction of the
Finance Director/Clerk and when so prepared shall be executed in
behalf of the City by the signature of the Mayor and City Manager,
attested by the Finance Director/Clerk, and sealed with the corpo-
rate seal of the City, two of said signatures and the corporate
seal being facsimiles, and "the interest coupons and the certificate
on the reverse side of the Bonds shall be executed and authenticated
by the printed, engraved or lithographed facsimile signatures of
the Mayor, City Manager and Finance Director/Clerk. When the Bonds
• have been so executed and authenticated, they shall •be delivered by
the City Treasurer to the purchaser on receipt of the purchase price
heretofore agreed upon, and said purchaser shall not be required to
see to the application thereof.
•
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• Section 4. Bond Sinking Fund; Pledge of Water and Sewer
Net Revenues and Full Faith and Credit -
4. 01. Principal of and interest on the Bonds shall be paid
from the "Water and Sewer. System General Obligation Revenue Bond
Fund" (hereinafter, the Bond Fund) heretofore created by Resolu-
tion 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 the Bond Fund therefor-, the
Treasurer shall pay the same from the general fund of the City
and the general fund shall be reimbursed for such advances out
of the proceeds of the taxes levied to make good such deficiency.
Into the Bond Fund shall be credited -the receipts of all water
and sewer system net revenues pledged by the terms of this Resolu-
tion, all collections of ad valorem taxes levied herein, and all
other moneys received for or appropriated to the payment of the
Bonds and interest thereon.
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 the Bond Fund will be sufficient to pay the prin-
cipal of and interest on all General Obligation Water and Sewer
Bonds of the City, including the Bonds herein authorized and bonds
• previously issued under the dates of April 1 and November 1, 1971,
June 1 and December 1, 1972, July 1, 1973, March 1, 1974, April 1
and December 1, 1975, October 1, 1976 and October 1, 1977.
4. 03. Pursuant to the provisions of Section 444.075, Minnesota
Statutes, as amended, the City hereby covenants and agrees with
the holders from time to time of the Bonds that so long as any of
the Bonds are outstanding, the City will impose and collect reason-
able charges for the service, use and availability of its water and
sewer systems 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 Bond Fund, will be sufficient to pay all principal and
interest when due on the Bonds, and said net revenues, to the
extent necessary, are hereby irrevocably pledged and appropriated
to the payment of the Bonds and interest thereon; provided that
nothing herein shall preclude the City from hereafter making fur-
ther pledges and appropriations of net revenues of the water and
sewer systems for the payment of additional 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 systems will be. sufficient,
together with any other sources pledged to or projected to be
used for the payment of the Bonds and such additional obligations.
Such further pledged and appropriations of said net revenues may
be made superior or subordinate to or on a parity with the pledge
and appropriation herein made.
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• 4 . 04. For the prompt and full payment of the principal of
and interest on the 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, in the event and to the extent that the net revenues
herein.above pledged to the payment of the Bonds are insufficient
for that purpose in any year, there is hereby levied upon all of
the taxable property in the City a direct, general, ad valorem
tax which shall be spread upon the tax- rolls collected in the
years and in the amounts as follows, together with and as a part
of other general taxes of the City:
Collection Collection
Year Tax Year Tax
1981 1991
1982 1992
1983 See 1993 See
1984 schedule 1994 schedule
1985 1995
1986 attached 1996 attached
1987 1997
1988 1998
1989 1999
1990 2000
2001
Said tax shall be irrepealable. as long as any of the Bonds are
outstanding and unpaid; provided that in accordance with the
provisions of Section 475. 61, Minnesota Statutes, the Finance
Director/Clerk and Treasurer shall annually, on or before
October 10 of each year as long as any of the Bonds are out-
standing, report to the Council the amount on hand in the Water
and Sewer System General Obligation Revenue Bond Fund, and the
Council may thereupon reduce the tax hereinabove levied for that
year by an amount equal to the amount then on hand in the Bond
Fund,- and shall direct the Finance Director/Clerk to certify such
reduction to the Hennepin County Director of Finance and Records,
so that only the balance of the tax levied for that year will be
collected.
Section 5. Defeasance. When all of the Bonds 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
City may discharge its obligations with respect to any Bonds and
coupons appertaining thereto which are due on any date by depo-
siting with the- paying agent on or before that date a sum sufficient
for the payment thereof in full; or, if any Bond or coupon should
not be paid when due, it may nevertheless be discharged by depo-
siting with the paying agent a sum sufficient for the payment
thereof in full with interest accrued to the date of such deposit.
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COMPUTATION OF TAX LEVY ON :
W056, 000 G.O. WATER AND SEWER ONDS
CITY OF EDEN PRAIC4..i.E, MINNESOTA
LEVY COLLECT AMOUNT AMOUNT '• 10 TA
1979 1950 $ 137086 'r 150796 150BOG
1.980 1981 187088 $ 205796 aj 205800
1953 1984 $ 203688 $ 224056. 224100
1984 1985 $ 199468 _ fir_ 219436 219500 -
1985 1986 $ 195288 $ 214816 210900
1986 1987 1910OO $ 210196 $ 210200
J. f 0 T 1988 ij 186838 . $ 205576 =i5 205600
1989 1990 201913 $ 222104 $ 222100
. 1990 1991 $ 196213 ,g 215834
iY58_.f 215900
1993-i 1994 $ 202625 $ 222888 -f 222900
1994 1995 $ 195375 214913 $ 215000
1995 1996 $ 213000 -N 234300 :i: 234300
.
19f6 1997204000 2 Ll, , s2
Ci �� �% ':� .� r-�•t.J,J '•�} ,..... r400
1997 1998 $ 220000 $ 242000 •N 242000
1998 1999 1= 209500 $ 230450 $ 230500
1999 2000 $ 225000 $ 246400 $ 246400
2000 2001 $ 212000 $ 233200 $ 233200
4352950 . 10 s ct-?OO90 o
NOTE: FUNDS AVAILABLE:. & !:lip! HAND AMOUNTING TO #137087. 50
WILL BE USED TO PAY $137087 . 50 OF INTR PAYMTa DUE
6-•1--19 79, 12--•1--1979
• The City may also discharge its obligations with respect to
any prepayable Bonds which are called for redemption on any
date 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, if any, which are then due
thereon, provided that notice of such redemption has been duly
given as provided herein. The City may also at any time dis-
charge its obligations with respect to any Bonds , subject to
the provisions of law now or hereafter authorizing and regu-
lating such action, by depositing irrevocably in escrow, with
a bank qualified 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 author-
ized by law to be so deposited, bearing interest payable at such
time and at such rates and maturing on such dates as shall be
required, without reinvestment to pay all principal and interest
to become due thereon to maturity or said- redemption date.
Section 6. Registration, Certification of Proceedings,
Investment of Moneys and Arbitrage
6. 01. The Finance- Director/Clerk is hereby authorized and
directed to file a certified copy of this resolution with the
Director of Finance and Records of Hennepin. County,- together
with such other information as he shall require, and to obtain
from said Director of Finance and. Records a certificate that
the Bonds have been entered on his bond register as required
by law.
6.02. The officers of the City and the Director of Finance
and Records of Hennepin County are hereby authorized and directed
to prepare and furnish to the purchaser of the Bonds, and to the
attorneys rendering an opinion as to the legality of the issuance
thereof, certified copies of all proceedings and records of the
City, and such other affidavits, certificates and information
as may be required to show the facts relating to the legality and
marketability of the Bonds as the same appear from the books and
records under their custody and control or as otherwise known to
them, and all such certified copies, certificates and affidavits,
including any heretofore furnished, shall be deemed representations
of the City as to the facts recited therein.
6. 03. The City covenants and agrees with the holders from
time to time of the Bonds that it will not take or permit to be
taken by any of its officers, employees or agents any action which
would cause the interest on the Bonds to become subject to taxa-
tion under the Internal Revenue Code of 1954 , as amended (the
Code) , and regulations, amended regulations and proposed regula-
tions issued thereunder, as now existing or as hereinafter amended
or proposed and in effect at the time of such action.
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. 6. 04. Unless and until the proposed regulations under Section
103 (c) of the Code which have been published by the Internal
Revenue Service prior .to the date hereof have been modified or
amended in pertinent part, the Finance Director/Clerk shall
ascertain monthly the amount on deposit in the Band Fund. If
the amount on deposit therein ever exceeds by more than $325 ,500-
the aggregate amount of principal and interest due and payable
from the Bond Fund within 13 months thereafter., such excess shall
not be invested except at a yield less than or equal to the yield
on the Bonds, based upon their amounts, maturities and interest
rates on their date of issue; computed by the actuarial method.
If any additional improvement bonds are ever issued and made
payable from the Bond Fund, the dollar amount in the preceding
sentence shall be changed to equal fifteen percent of the aggre-
gate principal amount of all bonds, including the Bonds, which
are then outstanding and payable therefrom. The City reserves
the right to amend the provisions of this Section 6.04 at any
time, whether prior to or after the delivery of the Bonds, if
and to the extent that this Council determines that the provi-
sions of this Section 6. 04 are not necessary in order to assure
that the Bonds are not arbitrage bonds under Section 103 (c) of
the Code and the applicable regulations.
6.05. The Mayor, Finance Director/Clerk and City Treasurer,
being the officers of the City charged with the responsibility for
issuing the Bonds pursuant to this resolution, are authorized and
directed to execute and deliver to the purchaser a certificate
in accordance with the provisions of Section 103 (c) of the Code,
and Treasury Regulations, Sections 1.103-13 and 1.103-14 , stating
the facts, estimates and circumstances in existence on the date
of issue and delivery of the Bonds which indicate that the proceeds
of the Bonds will- not be used in a manner that would cause the
Bonds to be arbitrage bonds within the meaning of said Code and
Regulations.
Section 7. Official Statement. The Official Statement
relating to the Bonds, prepared for the City by Ehlers and Associates,
Inc. , is approved, and its distribution to prospective bidders for
the Bonds ratified. The Finance Director/Clerk is authorized, in
behalf of the City, to sign and deliver to the original purchaser
of the Bonds a certificate as to the accuracy and completeness of
the Official Statement.
Wolfgang Penzel-
Mayor
Attest: John D. Frane
Finance Director/Clerk
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_r
c
"a
CERTIFICATE
I, the undersigned, being the duly qualified and acting
Finance Director/Clerk of the City of Eden Prairie, Minnesota
(the City) , hereby certify that attached hereto is a full, true
and correct copy of Resolution No. 78-228, duly adopted by the
governing body of the City at a meeting thereof duly called and
held on December 5, 1978, at which meeting a quorum of the govern-
ing body was present and acting throughout.
WITNESS my hand and the seal of the City this 5th day
of December, 1978.
Ql� P��L
• y ance Director/Clerk
(SEAL)