HomeMy Public PortalAbout1981-034gi_34
EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF
THE CITY OF MEDINA
HENNEPIN COUNTY, MINNESOTA
Pursuant to due call and notice hereof, a regular meeting of
the City Council of the City of Medina, was duly held on Tuesday, the
4th day of August, 1981, commencing at 7:30 o'clock p.m., C.T.
present:
The meeting was called to order by the Mayor.
Upon roll call, the following members of the Council were
Mayor Anderson; Councilmembers, Lutz, Scherer, Crosby, Reiser
and the following were absent:
None
Councilmember Crosby introduced the following
resolution and moved its adoption.
A RESOLUTION PROVIDING FOR THE ISSUANCE AND
SALE OF $90,000 GENERAL OBLIGATION
WATER REVENUE BONDS FOR THE PURPOSE OF PROVIDING
MONEY TO ACQUIRE A WATER SYSTEM FOR THE CITY
IT IS HEREBY RESOLVED by the City Council of the City of
Medina, Minnesota, as follows:
1. The City Council has determined that it is necessary
for the City to acquire, and the City has duly entered into a contract
for the acquisition of, a municipal well and water system (the "proj-
ect"), the Medina Mornin.gside Water System (the "water system" or
"water plant and system").
2. It is necessary to the sound financial management of
the City that the City borrow funds to finance the following project
costs:
Contract Costs $90,000
3. It is hereby determined that it is necessary and expe-
dient to finance the project by the issuance of the ty's Generala
Obligation Water Revenue Bonds of 1981 (the "Bonds"), asend
y
Minnesota Statutes, Chapter 475, and Minnesota Statutes, Section
444.075.
4. The City is authorized by the provisions of Minnesota
Statutes, Section 475.60, Subdivision 2 (1), to negotiate the sale of
the Bonds, there having been no negotiated sale of the City's bonds
within the past 90 days.
5. The bid of the Farmers State Bank of Hamel, the State
Bank of Loretto, and the State Bank of Long Lake to purchase the
$90,000 General Obligation Water Revenue Bonds of 1981 of the City is
hereby found and determined to be a reasonable offer and shall be and
is hereby accepted, such bid being to purchase the Bonds at a price of
$90,000 par, for the Bonds bearing interest at the rate of eleven
percent (11.00%) per annum. The Mayor and City Clerk -Treasurer are
directed to enter into a purchase contract for the Bonds with the
Purchasers.
6. The City of Medina shall forthwith issue and sell its
General Obligation Water Revenue Bonds of 1981 in the principal amount
of $90,000, dated as of date of delivery, the Bonds being 3 in number,
and numbered 1 to 3, inclusive, and in the denomination of $30,000
each, and bearing interest as above set forth, all interest payable
March 1, 1982, and semiannually thereafter on March 1 and September 1
in each year, and each of which Bonds shall mature in installments due
on September 1 in the years and amounts as follows:
YEAR AMOUNT YEAR AMOUNT
1982 $3,000 1986 $4,667
1983 3,334 1987 5,333-
1984 3,666 1988 6,000
1985 4,000
On any installment maturity date, the City may prepay, in $1,000 multiples,
the principal installments on any of the Bonds, beginning with the latest
then outstanding installment.
7. Both principal and interest on the Bonds shall be payable at
the offices of each of the respective purchasers thereof.
8. The Bonds to be issued hereunder shall be in substantially
the following form:
No. $30,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF MEDINA
GENERAL OBLIGATION WATER REVENUE BOND OF 1981
KNOW ALL MEN BY THESE PRESENTS that the City of Medina, 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 Bonds Sinking Fund, the principal sum hereof on September 1 in the
respective years and installments as follows:
YEAR INSTALLMENT
1982 $3,000
1983 3,334
1984 3,666
1985 4,000
1986 4,667
1987 5,333
1988 6,000
and to pay interest on the outstanding principal installments hereof,
or portions thereof, at the rate of elevent percent (11.00%) per
annum, interest to maturity payable March 1, 1982, and semiannually
thereafter on the 1st day of March and the 1st day of September in
each year. Both principal and interest are payable at
(the offices of the 3 purchasers, respectively)
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.
The principal installments hereof are subject to prepayment
in whole or in part at the option of the City in multiples of $1,000
on any installment payment date, and any such prepayments shall be
applied to the latest principal installment then outstanding.
This bond has been issued for the purpose of providing money
to aid in financing the acquisition of a municipal well and water
system for the City, as authorized by Minnesota Statutes, Section
444.075, and the principal installments hereof and the interest hereon
are payable primarily from the net revenues of said water plant and
system, which funds are provided in a special sinking fund of the
City, as set forth in a resolution adopted on August 4, 1981, en-
titled, "A Resolution Providing for the Issuance and Sale of $90,000
General Obligation Water Revenue Bonds for the Purpose of Providing
Money to Acquire a Water System for the City" (the "authorizing reso-
lution"), to which reference is made for a full statement of rights
and powers hereby conferred. The full faith and credit of the City is
pledged for the payment hereof 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 auth-
orizing resolution, the City has covenanted and agreed that it will
continue to own and operate the water system free from competition by
other lice 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 System Fund, into which it will
pay all of the gross revenues from the water system; that it will also
create and maintain a General Obligation Water Revenue Bonds Sinking
Fund, into which it will pay, out of the net revenues from the water
system, a sum sufficient to pay the principal installments hereof and
interest hereon when due; and that it will provide, by ad valorem tax
levies, for any deficiencies in net revenues of the water system.
IT IS FURTHER CERTIFIED AND RECITED that all acts, con-
ditions and things required by the Constitution and laws of the State
of Minnesota to be done, to happen and to be performed precedent to
and in the issuance of this bond, have been done, have happened and
have been performed in due form, time and manner as required by law.
IN WITNESS WHEREOF, the City of Medina, Hennepin County,
Minnesota, by its City Council, has caused this bond to be executed in
its behalf by the manual signatures of the Mayor and City Clerk -
Treasurer and the corporate seal of the City to be hereto affixed, all
as of Autust 4 , 1981.
(manual signature)
Mayor
(manual signature)
City Clerk -Treasurer
(City Seal)
9. The Bonds shall be reproduced under the direction of the
City Clerk -Treasurer and when so prepared shall be executed on behalf
of the City by the manual signatures of the Mayor and the City Clerk -
Treasurer, and the seal of the City shall be affixed thereto. When
the Bonds have been so executed, they shall be delivered by the Clerk -
Treasurer to the purchasers thereof, upon receipt of the purchase
price, and the purchasers shall not be obligated to see to the proper
application of the proceeds thereof.
10. The City shall establish and continue to operate its
Medina Morningside Water System Fund to which shall be credited all
gross revenues of the water system and out of which shall be paid all
normal and 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 Water Revenue
Bonds Sinking Fund hereby created, which fund shall be used to pay the
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 the bonds payable from said fund, and
the City Clerk -Treasurer shall report any current or anticipated
deficiency in such fund to the Council.
11. The City Council covenants and agrees with the holders
of the Bonds issued hereunder that so long as any installment of the
Bonds remains outstanding and unpaid, it will keep and enforce the
following covenants and agreements:
(a) The City will continue tc maintain and efficiently
operate the water plant and system as a public
utility and convenience and will cause all reve-
nues therefrom to be deposited in a bank account
and credited to the Water System Fund as herein -
above 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 Bonds 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 suffi-
cient to pay principal of and interest on all
Bonds issued hereunder when due.
(c) The City will keep and maintain proper and ade-
quate books of record and account separate from
all other records of the City in which will be
complete and correct entries as to all transac-
tions relating to the water plant and system and
which shall be open to inspection and copying by
any bondholder, his agent or attorney, at any
reasonable time, and it will furnish certified
transcripts therefrom upon request and upon pay-
ment of a reasonable fee therefor, and said ac-
counts shall be audited at least annually by a
qualified public accountant and statements of such
audit and report will be furnished to all bond-
holders upon request.
(d) The City Council will cause all persons handling
revenues of the water plant and 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 plant and system to be deposited in a
bank or banks whose deposits are guaranteed under
the Federal Deposit Insurance Law,
(e) The Council will keep the water plant and 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 pro-
ceeds of such insurance to make good any such
loss.
(f) The City and each and all of its officers will
punctually perform all duties with reference to
the water plant and the 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 net revenues adequate to pay all prin-
cipal and interest when due on the Bonds and to
create and maintain such reserves securing said
payments as are provided in this resolution.
(h) The City Council will levy general ad valorem
taxes on all taxable property in the City when the
net revenues of the water system are insufficient
to meet the principal and interest payments on the
Bonds.
12. It is hereby determined that the estimated net revenues
of the water system will produce at least 5% in excess of the amount
needed to meet, when due, the principal and interest payments on the
Bonds and that no tax levy is needed at this time. The City Clerk -
Treasurer is directed to file a certified copy of this resolution with
the Assistant Director of Property Taxation of Hennepin County and to
obtain the certificate required by Minnesota Statutes, Section 475.63.
13. The officers of the City are hereby authorized and
directed to prepare and furnish to the purchasers of the Bonds and to
the attorneys approving the same, Messrs. LeFevere, Lefler, kennedy,
O'Brien & Drawz, A Professional Association, of Minneapolis, Minne-
sota, certified copies of proceedings and records of the City relating
to the Bonds and to the financial condition and affairs of the City,
and such other certificates, affidavits and transcripts as may be
required to show the facts within their knowledge or as shown by the
books and records in their custody and under their control, relating
to the validity of the Bonds, and such instruments, including any
heretofore furnished, shall be deemed representations of the City as
to the facts stated therein.
14. It is hereby determined that no official statement or
prospectus has been prepared or circulated by the City in connection
with the sale of the Bonds and that the purchasers have made their own
investigation concerning the City.
15. A11 the terms and provisions of this resolution shall
be and constitute a covenant on the part of the City to and with each
and every holder from time to time of the Bonds issued hereunder.
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember
Lutz
, and upon vote
being taken thereon the following voted in favor thereof:
Anderson, Lutz, Crosby, Reiser, Scherer
and the following voted in opposition thereto:
one
whereupon said resolution was declared duly passed and adopted.