Loading...
78-30 ,,~ \t-- . e 'e . .. " $2,390,000 Refunding Improvement Bonds 1_ - Issuer: City of Chanhassen, Carver and Hennepin Counties, Minnesota C..o'lerning Body: City Council Kind, date, time and plac:e of meeting: A regular meeting I held on Monday, June 19, 1978, at 8:00o'clock P.M., at the City Hall 1.1ernbers present: Councilmen John Neveaux, Richard Pearson, Dale Geving and Nick Waritz !.!embers absent: Mayor Walter Hobbs Documents Attached: Minutes of said meeting (pages): ~ RESOLUTION NO. 78~30 RESOLUTION ESTABLISHING THE TERMS OF $2,390,000 REFUNDING IMPROVEMENT BONDS, AND PROVIDING 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 transcribedi 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 eopies 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- lout by the members indicated above, pursuant to call and notice ot' ~hneeting given as required by law. 21st WITNESS my hand officially as day of June , 19 ~~~~or.ding officer this .~ / Q.Jl~-=b~ S1gnature ' Donald W. Ashworth, City Manager Name and 'ritle' .......,"'""",...--,..c'........... y-....'.'n'~."'<_"~,..,,. ~. ...'>'-.,....,.......,.;.... ....'. "',~ ,~..~-..._'''.'r<.... ,G ~ ..t _._",_'_' -~....."....- ...."''c''',... '. .""'......",...".,.,..."~,,..,.""""l....---~~_.lfiI'r"!'.~~,'~.-.:"I".....,.,.,., ~\ ; e -.e . Councilmember introduced the Pearson following resolution and moved its adoption: RESOLUTION NO. 78-30 RESOLUTION ESTABLISHING THE TERMS OF $2,390,000 REFUNDING IMPROVEMENT BONDS, AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the City of Chanhassen, Minnesota, as follows: Section 1. Authorization. 1.01. By resolution duly adopted June 5, 1978, this Council found that it would be in the best interests of the City to award the sale of $2,390,000 Refunding Improvement Bonds (the "Bonds") to the First National Bank of Minneapolis, of Minneapolis, Minnesota, and associates, upon the terms and conditions set forth therein. It is now determined to be necessary and desirabie for. this Council to provide specifically for the issuance of the Bonds, and for the payment thereof. 1.02. The Bonds are being issued pursuant to Section 475.67, Minnesota Statutes, to refund in advance of maturity the outstanding bonds of the following bond issues of the City (here- inafter collectively referred to as the "Refunded Bonds"): Issue Outstanding Amount Date of Issue General Obligation Water and Sewer Revenue Bonds $ 595,000 August 1, 1971 Improvement Bonds of 1976, Series I $2,225,000 March 1, 1976 By providing for the payment and discharge of the Refunded Bonds, it is hereby found that the rate of interest to be paid by the City may be reduced from an average of 5.776% for the Refunded Bonds to 5.5l98%for the Bonds to be issued. Such reduction will result in a net dollar debt service savings to the City of not less than $ Section 2. Bond Terms, Execution and Delivery. 2.01. The Bonds shall be designated Refunding Improve- ment Bonds, dated June 16, 1978, shall be issued in the denomina- tion of $5,000 each, numbered serially from 1 to 478 inclusive, shall mature serially on February 1 in the respective years and . . e amounts stated below and shall bear interest from date of issue until paid or duly called for redemption at the respective annual rates set forth opposite such years and amounts, as follows: Interest Interest Year Amount Rate Year Amount Rate 1980 $195,000 6.20% 1987 $215,000 5.25% 1981 195,000 6.20% 1988 210,000 5.30% 1982 205,000 6.00% 1989 145,000 5.40% 1983 210,000 6.00% 1990 150,000 5.50% 1984 210,000 6.00% 1991 125,000 5.60% 1985 215,000 5.20% 1992 100,000 5.60% 1986 215,000 5.20% ; 2.02. The Bonds maturing in the years 1988 through~ 1992 shall each be subject to redemption and prepayment-at the option of the City on February 1, 1987, and on any interest payment date thereafter, in inverse order of their serial,num- bers, at a price of par plus accrued interest. Notice ofredemp- tion identifying the Bonds to be redeemed shall be published at least once not less than thirty days prior to the date fixed for redemption in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, circulating throughout Minnesota and carrying financial news as a part of its service. --e . 2.03. The interest on the Bonds shall be payable semiannually on each February 1 and August 1, commencing on February 1, 1979. The principal of and interest on the Bonds shall be payable at the Northwestern National Bank of Minneapolis, in Minneapolis, 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 Council. 2.04. The Bonds shall be prepared under the direction of the City Manager, in substantially the form attached to this resolution, and shall be executed in behalf of the City by the facsimile signatures of the Mayor and the City Manager, and authen- ticated by The First National Bank of Saint Paul which is hereby appointed authenticating agent. The interest coupons thereto attached shall be executed and authenticated by the printed, en- graved or lithographed facsimile signatures of said Mayor and Manager. On the reverse side of each Bond will be printed a copy of the approving opinion to be rendered by bond counsel certified by the facsimile signatures of the Mayor and Manager. After the Bonds have been so signed and certified, the City Treasurer shall thereupon deliver the same to the purchaser thereof upon receipt.of the purchase price heretofore agreed upon, and the purchaser shall not be obligated to see to the application of said purchase price. . Section 3. Use of Bond Proceeds. e 3.01. The proceeds of the Bonds are irrevocably appropri- ated to the extent required, together with such additional sum as may be required from funds now on hand in the subaccounts maintained in the Improvement Bond Account for paYment of the Refunded Bonds, for the payment and redemption of the outstanding Refunded Bonds at their respective maturities or at the earliest dates specified for the redemption thereof, and for the payment of interest to become due on such Refunded Bonds on or before the respective dates on which they are to be paid and redeemed. The City Treasurer is hereby authorized and directed, simultaneously with the delivery of the Bonds, to deposit the proceeds thereof, and any such ad- ditional sum which may be required, in escrow with the' Northwestern National Bank of Minneapolis, in Minneapolis, Minnesota, a banking institution whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than $500,000, and to invest the funds so deposited . to the extent necessary in securities authorized for such purpose by Section 475.67, subdivision 8, as amended, maturing on such dates and bearing interest at such rates as are required to provide funds sufficient, with cash retained in the escrow account, to pay when due the interest to accrue on the Refunded Bonds to their respective maturity dates or the date designated for their earlier redemption and prepaYment, and to pay the principal amount of each of said Refunded Bonds at maturity or at the designated redemption date. The Mayor and City Manager are hereby authorized to enter into an escrow agreement with said Bank establishing the terms and conditions for the escrow account in accordance with Minnesota Statutes, Section 475.67. . Section 4. .Sinking Fund. 4.01. The City has heretofore created separate subaccounts in its Improvement Bond Account for payment of the General Obligation Water and Sewer Revenue Bonds, and for paYment (together with the Improvement Bonds of 1976, Series 2, and 'Improvement Bonds of 1977) of the Improvement Bonds of 1976, Series I. Subsequent to delivery of the Bonds, the Refunded Bonds will be payable primarily from the escrow established and irrevocably appropriated for such purpose pursuant to Section 3.01 hereof, and, therefore, it is determined to be appropriate and convenient to establish a new subaccount within the Improvement Bond Account to provide for paYment of the Bonds, as well as the Improvement Bonds of 1976, Series 2, and Improvement Bonds of 1977 not being refunded. The existing sub- accounts referred to herein, together with all cash and other assets, shall be incorporated into said new subaccount, and there shall be paid into said new subaccount (i) all future collections of special assessments heretofore or hereafter levied with respect to the improvements financed by the Refunded Bonds, and the Improve- ment Bonds of 1976, Series 2, and Improvement Bonds of 1977 not being refunded, (ii) all net revenues of the water and sewer utilities ~ . . .. '" e -.e . appropriated pursuant to Section 4.02 hereof and (iii) any taxes collected pursuant to Section 4.03 hereof. From said new subaccount the City shall pay when due the principal and interest on the Bonds, and the principal and interest on the Improvement Bonds of 1976, Series 2, and Improvement Bonds of 1977; provided, that if the funds on hand in said subaccount are ever insufficient to pay such prin- cipal and interest when due, the City shall make such paYments from funds of the City, subject to reimbursement when sufficient money becomes available in said subaccount. 4.02. The proceeds of the Refunded Bonds, and the Improve- ment Bonds of 1976, Series 2, and Improvement Bonds of 1977, were used to finance various water and sewer improvements in the City from which revenues, including charges as authorized by Minnesota Statutes, Section 444.075, subd. 5, will be derived. In order to insure sufficient funds are available when required in the ne~ sub- account created in Section 4.01 hereof, the City covenants and agrees with the holders of the Bonds to impose and collect reasonable charges for the service, use and availability of its water and sewer utilities according to schedules sufficient to produce nee revenues of said utilities sufficient to pay, together with the assessments and any taxes collected and paid into said subaccount, all principal and interest when due on the bonds payable therefrom (including the Bonds) and said net revenues, to the extent necessary, are hereby ir- revocably pledged and appropriated to the paYment of said bonds and interest thereon when due; provided, that nothing herein shall pre- clude the City from hereafter making further pledges and appropriat~ons of the net revenues of said utilities or either of them for paYment of additional obligations of the City hereafter autho.r'ized if the City Council determines before the authorization of such additional obligations that the estimated net revenues of the utilties will be sufficient, together with any other sources pledged to the paYment of the outstanding and additional obligations, for paYment of the outstanding bonds and such additional obligations. Such further pledges and appropriations of said net revenues may be made superior or subordinate to, or on a parity with, the pledges and appropriations herein made. 4.03. It is hereby estimated that the amounts of special assessments and net utility revenues to be made available in said subaccount pursuant to Sections 4901 and 4.02 will provide sums at least 5% in excess of the amounts needed to meet when due the prin- cipal and interest payments on all bonds payable from said sub- account (including the Bonds), and consequently no ad valorem taxes are levied at this time. However, the full faith, credit and taxing powers of the City are pledged to the payment of the Bonds and, should the moneys on hand in said subaccount ever be insufficient for said purpose, the City affirms its obligation to levy ad valorem taxes upon all taxable property within the City, without limitation as to rate or amount, to the extent required to remedy any deficienay. Section 5.. Redemption of Refunded Bonds and Certification of Proceedings. 5.01. The City Manager is hereby authorized and directed forthwith to call for redemption and prepayment each issue of Refunded Bonds on its earliest redemption date. Notice of the - . ... .., ~ '., 110 e . . "........ "" redemption of the Refunded Bonds shall be mailed and published in accordance with the terms of the resolutions authorizing the issuance of the Refunded Bonds. 5.02. The City Manager is directed to file with the County Auditors of Carver and Hennepin Counties a certified copy of this resolution, and to obtain from the County Auditors a certificate stating that the Bonds have been entered upon the bond register. 5.03. The City will make no use of the proceeds of the Bonds which, if such use had been reasonably expected on the date of issue thereof, would have caused them to be arbitrage bonds under the provisions of Section 103(c) of the United States Internal Revenue Code of 1954, as amended. On the day-fixed fQr the delivery of the Bonds, the Mayor and City Manager shall make and deliver to the purchasers a certificate in accordanc~ with the provisions of Section 103(c) of said Code and Proposed Treasury Regulations, Sections 1.103-13 through 1.103-15, stating that on . the basis of the 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. . 5.04. The officers of the City and said County Auditors are authorized and directed to prepare and furnish to the purchasers of the Bonds, and to bond counsel, certified copies of all proceed- ings and records of the City relating to the authorization and issuance of the Bonds and such other affidavits and certificates as may reasonably be 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 heretofore furnished, shall constitute representations of the City as to the correctness of the"f- cts recited therein and the actions stated therein to have been en. Attest: J (2 AP?1~ City Manager Motion for adoption of the foregoing resolution was duly seconded by Councilmember Waritz , and upon vote being taken thereon, the following voted in favor: Pearson, Geving and Waritz Councilmen Neveaux, and the fo~lowing voted ~gainst the same: None whereupon said resolution was declared duly passed and adopted.