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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.