HomeMy WebLinkAboutCity Council Resolution 1976-337CITY OF PLYMOUTH
. Pursuant .to due call and notice thereof, a re ular meeting of the City
Council of the City of Plymouth, Minnesota, was held on the 21st day of
,lune 19 76 . The following members were present:
Inver Hi1de, Councilmen Neils, Seibold and Spaeth
The f1 owing ►ram ers were absent: Cnunrilman Hunt
tee tet tie
Councilman Spaeth introduced the following Resolution and moved
its option:
RESOLUTION NO. 76-337
A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
OF $2,790,000 GENERAL OBLIGATION WATER REVENUE
BONDS FOR THE PURPOSE OF PROVIDING MONEY TO
IMPROVE THE WATER SYSTEM OF THE CITY
WHEREAS, the City must improve the water system to provide water flow and pressure
to protect the lives and property of people who reside in the community, and
WHEREAS, the City Engineer has recommended improvements and extensions of the water
system as follows:
. Project No. Cost
402-001 Elevated Reservior $1,134,831
302 Water Treatment Plant 1,609,600
TOTAL $2,744,431 , and
WHEREAS, the Council has determined that it is necessary to improve the system, and
WHEREAS, it is deemed necessary and desirable to refund a portion of the General
Obligation Temporary Improvement Bonds of 1974 in the sum of $2,744,431, and
WHEREAS, it is necessary that the City borrow $2,745,000 to provide for construction,
engineering, fiscal and legal expenses and to provide interest during,construction,
and to refund temporary bonds, and
WHEREAS, it is necessary to provide the required amount by the issuance and sale of
bonds payable out of water revenues, and
WHEREAS, the City is authorized under the provisions of Minnesota Statutes, Section
444.075, to issue revenue bonds for such purpose, with such bonds also supported by
a pledge of the full faith and credit of the City and such bonds can be sold to
provide necessary funds for the purposes above stated:
.NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota
as follows:
Resolution No. 76-337
Page 2
1. It is hereby determined that it is necessary and expedient to
finance improvements to the water system and to refund temporary
bonds by the issuance of General Obligation Water Revenue Bonds
as authorized by Minnesota Statutes, Chapter 475, and Section
444.075. It is further determined that the amount of $2,745,000
should be supplemented by the issuance of additional bonds as
authorized by Minnesota Statutes, Section 475.56 and that the
City shall sell and issue $2,790,000 of bonds, $45,000 of said
bonds being considered as additional interest. The sale resolution
shall contain a statement that all funds received in excess of
$2,745,000 shall be credited to the sinking fund for the payment
of interest first coming due on these obligations.
2. The City shall issue and sell its General Obligation Water
Revenue Bonds of 1976 in the aggregate principal amount of
$2,745,000, all bearing date September 1. 1976, bearing
interest rate or rates hereafter determined at public sale,
payable March 1, 1977, and semiannually thereafter on
September 1 and March l each year, which bonds shall be issued
in denominations of $5,000 and shall mature serially on
March 1 in the years and amounts as follows:
YEAR
AMOUNT
YEAR
AMOUNT
1978
$125,000
1979
$125,000
1980
125,000
1981
150,000
1982
150,000
1983
150,000
1984
175,000
1985
175,000
1986
200,000
1987
200,000
1988
225,000
1989
225,000
1990
250,000
1991
250,000
1992 265,000
all bonds maturing after March 1, 1987, being subject to redemp-
tion on said date and any interest payment date thereafter,
inverse numerical order, at par and accrued interest.
3. Both principal and interest shall be payable at a suitable
bank designated by the purchaser and the City shall pay the
reasonable charges of such bank for its services as paying
agent.
4. The bonds to be issued hereunder, and the interest coupons to
be thereto attached, shall be in substantially the following
form:
No.
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF PLYMOUTH
$5,000
GENERAL OBLIGATION WATER REVENUE BOND OF 1976
KNOW ALL MEN BY THESE PRESENTS That the City
Resolution No. 76-337".'
Page 3
of Plymouth, Hennepin County, Minnesota, hereby acknowledges that
it is obligated and, for value received, promises to pay to bearer
out of its General Obligation Water Revenue Bond of 1976 Sinking
Fund the sum of FIVE THOUSAND DOLLARS, on the 1st day of March,
19_, and to pay interest thereon out of said fund from the date
hereof until the principal sum is paid at the rate of
interest to maturity payable March 1, 1977, and semiannually
thereafter on the 1st day of September and the 1st day of March
in each year, in accordance with and upon presentation and
surrender of the interest coupons hereto attached as they severally
become due. Both principal and interest are payable at
in any coin or currency of the United States of America which at
the time of payment is legal tender for public and private debts.
All bonds of this issue maturing after March 1, 1987. are
subject to redemption. at the option of the City on said date and
any interest payment date thereafter, in inverse numerical order,
at par and accrued interest.
This bond is one of an issue in the total principal amount
of $2,790,000, all of like date and tenor except as to serial
number, maturity, interest rate and provision for redemption,
which bonds have been issued for the purpose of providing money
to aid in financing water system improvements, or parts thereof,
as authorized by Minnesota Statutes, Section 444.075, and the
principal thereof and interest thereon are payable primarily from
the net revenues of the water plant and system of the City in a
special sinking fund of the City, as set forth in a resolution
adopted June 21, 1976, entitled. "A Resolution Providing for the
Issuance and Sale of $2.790,000 General Obligation Water Revenue
Bonds for the Purpose of Providing Money to Improve the Water
System of the City." to which reference is made for a full state-
ment of rights and powers hereby conferred. The full faith and
credit of the City is pledged for its payment and the City Council
has obligated itself to levy taxes on all of the taxable property
in the City in the event of any deficiency, which taxes may be
levied without limitation as to rate or amount.
IT IS HEREBY CERTIFIED AND RECITED, That in and by the
authorizing resolution, the City has convenanted and agreed that
it will continue to own and operate the water system,free from
competition by other like utilities; that adequate insurance on
said plant and system and suitable fidelity bonds on employees
will be carried; that proper and adequate books of account will
be kept showing all receipts and disbursements relating to the
water utility Fund, into which it will pay all of the gross
revenues from the water system and any special assessments
levied for these improvements; that it will also create and
maintain a General Obligation Water Revenue Bond of 1976 Sinking
Fund, into which it will pay, out of the net revenues from the
water system, a sum sufficient to pay principal hereof and interest
hereon when due, and that it will provide, by ad valorem tax
levies, for any deficiency in net water revenues.
Resolution No. 76-337
Page 4
•
:T 13 FURTHER CERTIFIED AND RECITED That all acts, conditions
and things required by the Constitution and laws of the State of
Minnesota to be doneto happen and to be performed have happened and
i
have been performed n due form, time and manner as required by law.
IN WITNESS WHEREOF, The City of Plymouth, Hennepin County,
Minnesota, by its City Council, has caused this bond to be executed
in its behalf by the facsimile signature of the Mayor and the manual
signature of the City Manager and a facsimile of the corporate seal
of the City to be hereto affixed, and has caused the interest coupons
hereto attached to be executed and authenticated by the facsimile
signatures of said officers, all as of September 1, 1976.
City Manager
No.
(facsimile signature)
Mayor
(Facsimile City Seal)
(Form of Coupon)
E
On the 1st day of March (September) 19 , the City of Plymouth,
Hennepin County, Minnesota, will pay to bearer, out of its General
Obligation Water Revenue Bond of 1976 Sinking Fund, at
the amount shown hereon for interest then due on its General Obligation
Water Revenue Bond of 1976, dated September 1, 19716.
(facsimile signature)
Mayor
Cl*y Manager
Resolution No. 76-337
Page 5
0
5. The City Clerk is hereby directed to cause Notice of Sale to be
given by publication, at least 10 days in advance of the sale,
in the official newspaper, and in Commercial West, a financial
paper published at Minneapolis, Minnesota, with general circulation
throughout the State of Minnesota in the form attached hereto as
Exhibit "A".
6. The bonds shall be printed under the direction of the City Clerk
and when so prepared shall be executed on behalf of the City by
the facsimile signature of the Mayor and the manual signature of
the City Manager and a facsimile of the seal of the City shall
be affixed thereto, and the interest coupons shall be executed
and authenticated by the printed facsimile signatures of such
officers. When the bonds have been so executed and authenticated,
they shall be delivered by the Treasurer to the purchaser thereof,
upon receipt of the purchase price, and the purchaser shall not
be obligated to see to the proper application of the proceeds
thereof.
7. The City shall continue to operate its Water Utility Fund to
which shall be credited all gross revenues of the water system
and out of which shall be paid all normal end reasonable expenses
of current operations of the water system. Any balance therein
shall be deemed net revenues and shall be transferred, from time
to time, to a General Obligation Revenue Bond Sinking Fund hereby
created, which fund shall be used to pay bonds issued hereunder
and any other bonds similarly authorized. There shall always be
retained in such fund a sufficient amount to pay principal of
and interest on all bonds payable from said fund, and the City
Manager shalt report any current or anticipated deficiency in
such fund to the Council.
8. The City Council covenants and agrees with the holders of the
bonds issued hereunder that so long as any of said bonds remain
outstanding and unpaid, it will keep and enforce the following
covenants and agreements:
(a) The City will continue to maintain and efficiently
operate the municipal water system as a public
utility and convenience and will cause all revenues
therefrom to be deposited in a bank account and
credited to the Water Utility Fund as hereinabove
provided, and will make no expenditures from said
account except for a duly authorized purpose and
in accordance with this resolution.
(b) The City will also maintain a separate account for
the General Obligation Water Revenue Bond of 1976
Sinking Fund and will cause money to be credited to
said account, from time to time, out of net revenues
from the water plant and system, in sums sufficient
to pay principal of and interest on all bonds issued
hereunder when due.
Resolution No. 76-337 • •
Page 6
(c) The City will keep and maintain proper anu adequate
books of record and account separate from all other
records of the City in which will be complete and
correct entries as to all transactions relating to
the water system and which shall be open to inspec-
tion and copying by any bondholder, his agent o -,-
attorney, at any reasonable time, and it will furnish
certified transcripts therefrom upon request and upon
payment of a reasonable fee therefor, and said accounts
shall be audited at least annually by a qualified
public accountant and statements of such audit and
report will be furnished to all bondholders upon
request.
(d) The City Council will cause all persons handling revenues
of the water system to be bonded in reasonable amounts
for the protection of the City and the bondholders and
will cause the funds collected on account of the
operations of the water system to be depositied in
a bank or banks whose deposits are quaranteed under
the Federal Deposit Insurance Law.
(e) The Council will keep the water system insured at
all times against loss by fire, tornado and other
risks customarily insured against, with an insurer
or insurers in good standing, in such amounts as
are customary for like plants, to protect the holders,
from time to time, of the bonds issued hereunder and
the City from any loss due to any such casualty and
will apply the proceeds of such insurance to make
good any such loss.
(f) The City and each and ail of its officers will
punctually perform all duties with reference to the
water system as required by the laws of the State
of Minnesota.
(g) The City will impose and collect charges of the nature
authorized by Minnesota Statutes, Section 444.075, at
the times and in the amounts required to produce,
together with any taxes or special assessments desig-
nated as a primary source of payment of the bonds of
this issue, net revenues adequate to pay all principal
and interest when due on the said bonds and to create
and maintain such reserves securing said payments as
may be provided in the authorizing resolution.
(h) The City Council will levy general ad valorem taxes
on all taxable property in the City, when required
to meet any deficiency in net revenues.
9. The bonds to be Issued hereunder shall be sold at public sale
and the City Council shall meet at the City Hall in the City on
Monday, the 26th day of July, 1976, at 7:30 o'clock P.M. for
the purpose of receiving and considering bids for such bonds.
The City Clerk shall publish the attached abbreviated notice of
sale marked Exhibit "B", and shall furnish comDlete financial
information and bidding instructions to interested bidders.
Resolution No. 76-337 • •
Page 7
10. The City officers are hereby authorized and directed to furnish
to the purchaser of said bonds and to the attorneys examining
the proceedings and furnishing a legal opinion to the purchaser,
certified copies of all ordinances, resolutions and records of
the City relating to said bonds or to the right, power and
authority of the City, by its council, to issue the same. and
such certified copies or Certificates shall be deemed represen-
tations of the City as to all facts stated therein.
11. All the terms and provisiosn of this resolution shall be ano
constitute a covenant on the part of the City to and with each
and every holder from time to time of the bonds issued here-
under.
The motion for the adoption of the foregoing resolution was duly seconded by
Councilman Neils, and upon vote being taken thereon, the following voted in
favor thereof: Mayor Hilde, Councilmen Neils. Seibold and Spaeth.
And the following voted against or abstained: None
Whereupon the Resolution was declared duly passed and adopted.