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HomeMy WebLinkAbout76-61CERTIFICATION OF MINUTES RELATING TO $630,000 Improvement Bonds of 1976 Issuer: City of Lakeville, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A specialmeeting, held on Tuesday, October 12, 1976, at 4:00 P.M. at the City Hall. Members present: Mako, Clarkson, Curry, Emond and Zaun Members absent: None Documents Attached: Minutes of said meeting (pages): 76-61 RESOLUTION/AUTHORIZING, SELLING AND ESTABLISHTNG THE 'PERMS OF $630,000 IMPROVEMENT BONDS OF 1976, AND PRO- VIDING FOR THEIR PAYMENT I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds re- ferred to in the title of this certificate, certify that the docu- ments attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all docu- ments approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended through- out by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hard officially as such recording officer this day of October , 19 76 • fr_t� �cz Signature Patrick McGarvey, City Administrator Name and Title The Administrator presented affidavits showing publication in the official newspaper and in the Commercial West of notice of sale of $630,000 Improvement Bonds of 1976 of the City, for which bids were to be considered at this meeting as provided by the re- solution adopted September 20, 1976. The affidavits were examined and approved and ordered placed on file. The Administrator reported that 6 sealed bids for the purchase of the bonds had been received at or before the time stated in the notice; that the bids were then opened, publicly read and tabulated, found to conform to the notice of sale and to be accompanied by the required security; and that the terms of each bid were found to be as follows: Name of Bid For Interest Total Interest Cost - Bidder Principal Rates Net Average Rate ATTACHED Member Emond introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING, SELLING AND ESTABLISHING THE TERMS OF $630,000 IMPROVEMENT BONDS OF 1976, AND PRO- VIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota; Section 1. Authorization and Sale. 1.01. The City has heretofore ordered, in accordance with the provisions of Minnesota Statutes, Chapter 429, the con- struction of local improvements designated as follows: Improvement Designations Estimated Cost Dakota Heights - Oak Hills Street Improvements $195,000 Orchard Lake Water and Sewer Improvements $435,000 The City has awarded contracts for the construction of these improvements pursuant to plans and specifications heretofore approved and after advertisement for bids in accordance with law. It is necessary to finance the cost of said improvements by the issuance of general obligation improvement bonds in the amount of $630,000 pursuant to Minnesota Statutes, Section 429.091. 1.02. Notice of sale of the bonds has been duly pub- lished and the Council has publicly received, opened and con- sidered all sealed bids presented in conformity with the notice and determines that the most favorable of -such bids is that of The First National Bank of Saint Paul Of St. Paul Minnesota , to purchase the bonds at a price of $622,005.30 plus accrued interest on the total principal amount to the date of delivery and payment, and upon the further terms and conditions set forth in this resolution. 1.03. The Mayor and City Administrator are directed to execute in duplicate a contract on the part of the City for the sale of the bonds in accordance with this proposal, and to deliver a duplicate to the purchaser. The Administrator shall retain the purchaser's check securing the contract of sale until the bonds are delivered and the purchase price is paid, and shall return the checks securing other bids to the respective bidders. Section 2. Form of Bonds, Certificate and Coupons. 2.01. The bonds issued hereunder shall be printed in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF LAKEVILLE IMPROVEMENT BOND OF 1976 No. $5,000 KNOW ALL MEN BY THESE PRESENTS that the City of Lakeville, a duly organized and existing municipal corporation of the County of Dakota, State of Minnesota, acknowledges itself to be indebted and for value received promises to pay to bearer the sum of FIVE THOUSAND DOLLARS on the lst day of February, or, if this bond is redeemable as stated below, on a date prior thereto on which it shall have been duly called for redemption, and to pay interest thereon at the rate of percent ( %) per annum from the date hereof until the principal sum is paid or until this bond, if redeemable, has been duly called for redemption, payable semi- annually on February 1 and August 1 in each year, commencing August 1, 1977, 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 in I , or at the office of such successor paying agent as may be designated by the City Council under the provisions of the resolution authoriz- ing 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 respectively 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 $630,000, all of like date and tenor except as to serial number, maturity date, interest rate and redemption privilege, all issued for the purpose of defraying expenses incurred and to be in- curred in constructing local improvements, and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapter 429, and pursuant to resolutions duly adopted by the City Council. The principal of and interest on this bond are payable primarily from the Improvement Bond Account in the Sinking Fund of the City, but if the moneys on hand in said Account are ever insuffi- cient for this purpose, the City is required to pay both principal and interest out of its General Fund. 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 1998 are each subject to redemp- tion and prepayment at the option of the City on February 1, 1987 and any interest payment date thereafter, in inverse order of serial numbers, at a price equal to the principal amount being redeemed plus accrued interest to the date of redemption, upon notice pub- lished not less than thirty days before the redemption date in a financial newspaper published in a Minnesota city of the first class or its metropolitan area. IT IS 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- liminary to and in the issuance of this bond in order to make it a valid and binding general obligation of the City in accordance with its terms have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has covenanted and agreed to levy special assessments upon property specially benefited by the improvements financed by the bonds, and has levied ad valorem taxes on all taxable property with- in its corporate limits, which assessments and taxes will be collect- ible for the years and in amounts not less than 5% in excess of the principal of and interest on the bonds when due; that, if necessary for the payment of such principal and interest, the City is required by law to levy additional ad valorem taxes on all such taxable pro- perty, which taxes are not subject to 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 Lakeville, Dakota County, Minnesota, by its City Council, has caused this bond and the in- terest coupons appurtenant hereto and the certificate on the re- verse side hereof to be executed and authenticated by the signatures of the Mayor and of the City Administrator, and the corporate seal to be affixed hereto, all such signatures and the seal being authen- ticated facsimiles except for the manual signature of one of said officers subscribed on the face of this bond, and has dated this bond as of November 1, 1976. Mayor Attest: City Administrator (Facsimile Seal) 2.02. 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 substantially 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 Lakeville which includes the within bond, dated as of the date of delivery of and payment for the bonds. City Administrator Mayor 2.03. Interest on each bond to maturity shall be repre- sented by a consecutively numbered set of interest coupons, printed in substantially the following form: No. On the 1st day of August (February), unless the bond described below is subject to and has been called for earlier re- demption, the City of Lakeville, Dakota County, Minnesota, will pay to bearer at , in , the amount shown hereon in lawful money of the United States of America for interest then due on its Improvement Bond of 1976, dated November 1, 1976, No. . City Administrator Mayor Section 3. Bond Terms, Execution and Delive 3.01. The bonds issued hereunder shall be designated Improvement Bonds of 1976, shall be in the aggregate principal amount of $630,000, dated November 1, 1976, shall be issued in the denomination of $5,000 each, numbered serially from 1 to 126, inclusive, shall mature serially on February 1 in the respective years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption at the respective annual rates stated opposite such years and amounts: Year Amount Rate Year Amount Rate 1978 $10,000 4.90% 1989 $25,000 5.60% 1979 40,000 4.90% 1990 25,000 5.75% 1980 35,000 4.90% 1991 25,000 5.90% 1981 35,000 4.90% 1992 25,000 6.00% 1982 35,000 4.90% 1993 25,000 6.00% 1983 35,000 4.90% 1994 30,000 6.10% 1984 35,000 4.90% 1995 30,000 6.15% 1985 35,000 5.00% 1996 30,000 6.20% 1986 35,000 5.10% 1997 30,000 6.25% 1987 35,000 5.25% 1998 30,000 6.25% 1988 25,000 5.40% 3.02. The interest on the bonds shall be payable semi- annually on February 1 and August 1 in each year, commencing 'August 1, 1977. The principal of and interest on the bonds shall be payable at The First National Bank of Saint Paul,/in St. Paul, Minnesota • which is designated as paying agent, or in the event of -its resigna- tion, removal or incapability of acting as paying agent, at the office of such successor paying agent as may be appointed by the Council, and the City agrees to pay the reasonable and customary charges of the paying agent for this service. 3.03. 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 1998 shall each be subject to redemption at the option of the City in inverse order of serial numbers on February 1, 1987, and on any interest payment date there- after, at a price equal to the principal amount plus accrued interest to the redemption date. Not less than thirty days before the date specified for any such redemption, the City Administrator shall cause notice thereof to be published in a financial newspaper in a Minnesota city of the first class or its metropolitan area, stating the redemption date, the series designation, and the serial number or other description sufficient to identify the bond or bonds to be redeemed on that date. 3.04. Before the bonds are delivered the City Administrator shall file with the County Auditor of Dakota County a certified copy of this resolution, together with such other information as the Auditor may require, and shall obtain from the Auditor a certifi- cate that the issue has been entered on his register and that the tax has been levied as required by law. 3.05.' The bonds and the interest coupons and the cer- tificate on the reverse side of each bond shall be executed and authenticated in behalf of the City by the signatures of the Mayor and the City Administrator, and the corporate seal of the City shall be affixed to each bond. All signatures and the seal may be printed, engraved or lithographed facsimiles except for the manual signature of one of said officers which shall be subscribed on the face of each bond. The bonds shall then be delivered by the City Administrator to the purchaser upon receipt of the cash pur- chase price stated in Section 1.02. The purchaser shall not be required to see to the application of the proceeds of the bonds, but from such proceeds the sum of $195,000 shall be deposited in the Construction Fund established pursuant to Section 4.01 hereof for the Dakota Heights - Oak Hills Street Improvements, the sum of $403,000 (representing total bond proceeds of $435,000 less bond discount in the amount of $8,000 and capitalized interest in the amount of $24,000) shall be deposited in the Construction Fund established for the Orchard Lake water and Sewer Improvements, and all remaining funds received from the purchaser shall be deposited in the Improvement Bond Account. t Section 4. Funds. 4.01. A separate fund shall be provided by the City Administrator for each of the improvements described in Section 1.01. The City appropriates to each fund (a) an amount of the bond proceeds to be transferred pursuant to Section 3.05 determined to be necessary for payment of the cost of the improvement for which the fund was created, and (b) all collections of special assessments levied with respect to the improvement for which it was created until completion of the improvement and payment of the costs there- of. Each fund shall be used solely to defray expenses of the im- provement for which it is created until that improvement has been completed and the cost thereof has been paid. Thereupon each fund shall be discontinued, and any balance of the proceeds of the bonds remaining therein may be transferred to the fund established to pay the cost of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429. If,not so transferred, any such balance, together with all subsequent collections of special assess- ments levied for the improvement, shall be credited and paid into the Improvement Bond Account. 4.02. So long as any of the bonds issued hereunder are outstanding and unpaid, the City Administrator shall maintain the separate and special Improvement Bond Account in the Sinking Fund of the City, to be used for no purpose other than the payment of the principal of and interest on these bonds and on such other improvement bonds of the City as have been or may be directed to be paid from that Account. If the balance in the Account is at any time insufficient to pay all principal and interest due on the bonds. Such amounts shall be paid from any fund of the City which is available for the purpose, subject to reimbursement from the Account when the balance therein is sufficient, and the Council covenants and agrees that it will each year levy a sufficient amount to take care of any such accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory tax limitation. 4.03. The City irrevocably pledges and appropriates to the Improvement Bond Account (a) the amount of bond proceeds to be transferred pursuant to Section 3.05; (b) any balance of bond pro- ceeds and special assessments on hand in any improvement fund upon completion of the improvement for which it is established; and (c) all collections of special assessments and taxes levied pursuant to Sections 4.04 and 4.05 hereof. 4.04. The City further covenants and agrees that it will do and perform all acts and things necessary for the final and valid levy of special assessments upon the properties bene- fited by each of the improvements referred to in Section 1.01, in amounts proportionate to and not exceeding the special bene- fits received by the respective properties, and with respect to each improvement and the properties benefited thereby, in an aggregate principal amount which is not less than 20% of the cost thereof. It is anticipated that assessments will be levied for the improvements specified in Section 1.01 as follows: Interest Rate on Outstanding Amount to Collection Principal Improvement be Assessed Years Installments Dakota Heights - Oak Hills Street Improvements $195,000 1977-86 8% Orchard Lake Water and Sewer Improvements $325,000 1978-97 8% In the event that any such assessment shall at any time be held invalid with respect to any lot or tract of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or by this Council or by any of the officers or employees of the City, either in the making of such assessment or in the performance of any condition precedent thereto, the City hereby covenants and agrees that it will forthwith do all such things and take all such further proceedings as shall be required by law to make such assessment a valid and binding lien upon said property. 4.05. The full faith, credit and taxing powers of the City are irrevocably pledged for the prompt and full payment of the principal of and interest on the bonds issued hereunder. To provide moneys for the payment of said bonds, in addition to the assessments to be levied pursuant to Section 4.04, there is hereby levied upon all of the taxable property in the City a direct, annual ad valorem tax, which shall be collectible with other taxes levied in the City in the following years and amounts: Levy Collection Year Year Amount 1976 1977 $00 1977 1978 $00 1978 1979 $00 1979 1980 $00 1980 1981 $00 1981 1982 $00 1982 1983 $00 1983 1984 $00 1984 1985 $00 1985 1986 $00 1986 1987 $12,114 Levy Collection Year Year Amount 1987 1988 $14,428 1988 1989 $14,258 1989 1990 $14,048 1990 1991 $13,800 1991 1992 $13,525 1992 1993 $18,500 1993 1994 $17,878 1994 1995 $17,241 1995 1996 $16,588 1996 1997 $15,919 These taxes shall be irrevocable, except that the right is reserved to reduce any of the annual levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61. Section 5. Authentication of Transcript. The officers of the City and the County Auditor 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 reasonably be re- quired to show the facts relating to the legality and marketabi- lity 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 heretofore furnished, constitute representations of the City as to the correctness of the facts -recited therein and the actions stated therein to have been taken. Section 6. Discharge. When -all of the Improvement Bonds of 1976, and all coupons appertaining thereto, have been discharged as provided in this Section, all pledges, covenants and other rights granted by this resolution shall cease. The City may dis- charge all bonds and coupons due on any date by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The City may also discharge all bonds of said issue at any time by irrevocably depositing in escrow with the paying agent or other suitable bank, for the purpose of paying all principal and inte- rest due on such bonds to maturity, or if prepayable, to an earlier date on which they may be called for redemption, a sum of cash and securities of the types described in Minnesota Statutes, Section 475.67, as amended, in such aggregate amount, bearing interest at such rates and maturing or callable at the holder's option on such dates as shall be required to provide funds sufficient for this purpose. mayor Attest: Attest: City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Member Zaun , and upon vote thereon, the following voted in favor thereof: All members and the following voted against the same: None whereupon said resolution was declared duly passed and adopted.