#059 07-20-54 Create Sewer Improvement No. FundAtte
a yo r
The motion for the adoption of the foregoing, resolution
was duly seconded by Member Rahn and upon vote being taken
thereon, the following voted in favor thereof: Bies, Foss,
Huebsch, Rahn and Stark, and the following voted against
the same; None, whereupon said resolution was declared duly
passed and adopted, and was signed by the Mayor, whose signa-
ture was attested by the Clerk.
Resolution No. 59
July 20, 195+
Member Stark introduced the following resolution and
moved its adoption:
RESOLUTION CREATING SEWER IMPROVEMENT NO, 1
FUND, PROVIDING FOR AND APPROPRIATING SPECIAL
ASSESSMENTS AND GENERAL TAXES TO THE SUPPORT AND
MAINTENANCE THEREOF, AND DIRECTING ISSUANCE OF
SE TR IMPROVEMENT NO. 1 BONDS, SERIES A AND B
BE I,T RESOLVED, by the Village Council of the Village of
Golden Valley, Minnesota, as follows:
1. This Council has investigated the facts necessary to
ascertain and does hereby find, determine and declare that
the Village of Golden Valley has duly entered into a contract
for the construction of that portion of Sewer Improvement
No. 1 of the Village located within its corporate limits with
Peter Lametti and Lame ti & Sons, of St. Paul, Minnesota,
pursuant to public advertisement for bids as required by
Minnesota Statutes 1953, Chapter 429, and said contractors
have furnished a bond for the performance of said contract
as required by law; that the Village has, by joint agreement
with the City of Minneapolis, contracted for the construction
of that portion of said improvement situated within the cor-
porate limits of the City of Minneapolis; that the total
cost of said improvement to the Village will be approximately
equal to and not less than $750,000, according to present
estimates, including all items of cost from the inception to
the completion thereof, and all fees and expenses incurred in
connection therewith; that the total benefits resulting from
said construction to the assessable lots, pieces and parcels
of AJdn affected thereby and the Village at large will be
1
1
substantially in excess of the total cost thereof; and that
it is necessary that the sum of 0750,000 be borrowed at this
time,'by the issuance of general obligation improvement bonds
of the Village in accordance with the provisions of Minnesota
Statutes 1953, Chapter 129, as hereinafter provided, in order
to finance the costs and expenses of constructing said impro-
vement.
2. There is hereby created a special fund to be designated
,as the "Sewer Improvement No. 1 Fund", to be held and adminis-
tered by the Village Treasurer separate and apart from all
other funds of the Village. Said fund shall be continued
and maintained in the manner herein specified until all of
the improvement bonds now or hereafter issued primarily pay-
able from said fund, and interest on such bonds, shall have
been fully paid. In said fund there shall be maintained
two separate accounts, to be disignated as the "Construction
Account" and "Sinking Fund Account", respectively. The
proceeds of sale of the improvement bonds herein authorized
and of bonds hereafter authorized and issued to pay any part
of the cost of said improvement, less any accrued interest
received thereon, shall be credited to the Construction
Account, from which there shall be paid, costs and expenses
of making said improvement, as incurred and allowed, and the
moneys in said account shall be used for no other purpose;
provided, that if the moneys on hand in the Sinking Fund
Account described below are at any time insufficient to meet
the payment of maturing principal and interest on any out-
standing bonds which are primarily payable from said fund,
moneys Ln said Construction Account may be used to the extent
necessary to pay all such principal and interest when due;
and further provided, that if upon completion of said impro-
vement there shall remain any unexpended balance in said
Construction Account, such balance shall be transferred to
the Sinking Fund Account. There shall be credited to the
Sinking Fund Account all collections of the special assess-
ments and general taxes herein or hereafter levied or agreed
to be levied for the payment of bonds issued primarily payable
from said fund, and all accrued interest received upon delivery
of such bonds. The moneys in said account shall be held
and used only for the payment of the principal of and interest
on such bonds, as such payments become due. The full faith
and credit of the Village shall be and are hereby pledged
to pay the Series A and B bonds herein authorized, and the
principal and interest thereof shall be paid out of any funds
in the treasury, if the moneys on hand in said improvement
fund are at any time insufficient to meet the payment of
maturing principal and interest on said bonds, and on all
other bonds primarily payable from said fund.
3- It is hereby determined that the sum -of not less than
Six Hundred Fifty Thousand and No -100 Dollars ($650,000.00)
of the cost of Sewer Improvement No. 1 shall be paid by
special assessments upon all assessable lots, pieces and parcels
100
of land situated within Sewer District No. 1 of the Village,
heretofore created, which amount will not exceed the total
benefits to be conferred by said improvement upon all of said
properties. The Village hereby covenants and agrees that it
will do and perform, as soon as may be, all acts and things
necessary for the final and valid levy of special assessments
against said properties in an amount not less than said
sum. In the event that any such assessments bp. at any time
held invalid with respect to any lot, piece, or parcel of
land, due to any error, defect or irregularity in any action
or proceeding taken or to be taken by the Village or this
Council or any of the Village's officers or employees,
either in the making .of such assessment or -in the performance
of any condition precedent thereto, the Village and this
Council hereby covenant and agree that they will forthwith
do all such further acts and take all such further proceed-
ings as may be required by law to make such assessment a
valid and binding lien upon such property. Said assessments
shall be payable in 20 equal, consecutive, annual installments,
the first of said installments to be payable with general
taxes for the year 1954, collectible with such taxes during
the year 1955• Deferred installments shall bear interest
at the rate of six per cent (6%) per annum, from the date of
the resolution levying said assessment until December 31 of
the year in which the installment is payable.
4- It is hereby determined that the estimated collections of
the special assessments herein agreed to be levied and the
general ad valorem taxes levied in paragraph 5 hereof, will
produce at least 5% in excess of the amounts needed to meet
when due the principal and interest payments on the 6750,000
Sewer Improvement No. 1 Bonds, Series A and B, of the Village
hereinafter authorized to be issued. The Village reserves
the right to issue further series of bonds of said issue, on
such terms as to maturities, interest rates,.redemption
privileges, and other matters as it may consider to be
advisable , to the amount necessary to complete said impro-
vement, such additional series of bonds also to be payable
primarily from the Sinking Fund Account of the Sewer Impro-
vement No. 1 Fund, in the same manner as and on a parity with
the bonds of Series A and B. Said S ;ries A and B Bonds and
all of the additional series of bonds of said issue which
may be issued as herein provided, shall be entitled to share
equally in the moneys of said fund, without proirlt y by reason
of date of issuance or inclusion in a particular series. How-
ever, before further bonds may be issued primarily payable
from said fund, in addition to those herein authorized, the
Village shall first be required to provide or to have provided
for the levy of general ad valorem taxes and special assess-
ments in an aggregate amount such that if such taxes and
assessments are collected in full they will provide at least
5% in excess of the amounts needed to meet when due.the
principal and interest payments on all bonds outstanding
which are payable primarily from said fund at the time such
additional bonds are issued.
1
5s For the purpose of
providing, together
with the estimated
collection
of the special
assessments appropriated
to the
Sinking Fund Account of
the Sewer Improvement No. 1 Fund of
the Village,
amounts not
less than 5% in excess
of the amounts
needed to
meet when due
the principal and
interest payments on
each and
all of the bonds
herein authorized,
there shall be
and is hereby
levied a
direct, annual, ad
valorem tax on all
property
in the Village
for the years and
in the amounts as
follows:
Year
Amount
Year
Amount
1954
X9,500.00
1965
$4,000-00't
1955
4,000-00 6u1'
1966
4,000-00 cal f
1956
4000.00
1967
4 500.00
1957
4,000.00
1968
52000.00
1958
4000.00
1969
5,500.00
1959
4000.00
1970
6,000.00
196o --
4000.00
1971
6,500.00
1961
4000.00
1972
7,500.00
1962
4000.00
1973
7!500.00 �oit�7
1963
4000.00
s
1964
4000.00
When collected, said taxes shall be credited as provided in
paragraph 2 hereof, and they shall be irrepealable as Long as
any of said bonds are outstanding and unpaid; provided, that
the Village reserves the right and power to reduce the levies
in the manner and to the extent permitted by the Minnesota
Statutes 1953, Section 475.61.
6. For the purpose of borrowing money to pay the costs of
constructing Sewer Improvement No. 1, the Village shall
forthwith issue and deliver to the purchaser thereof its
negotiable coupon general obligation Sewer Improvement No.
1 Bonds, Series A and B. all dated July 11 1954• The bonds
of Series A shall be in the principal amount of 06001000,
shall be 600 in number and numbered from 1 to 600, inclusive
each in the denomination of $1,000, and shall mature serially
on January 1 in the amount of $30,000 in each of the years
1956 through 1975. Bonds of Series A numbered 1 through 450 shall
be without option of prior payment, but those numbered
451 through 600, which mature in the years 1971 through 1975,
shall each be subject to redemption by the Village on Jan-
uary 1, 1970 and any July 1 or January 1 thereafter, at par
and accrued interest, in numerical order of serial numbers,
but such redemption may be made only if all bonds of Series
B or any -other series of bonds primarily payable from the
Sewer Improvement No. 1 Fund of the Village have been fully
paid or called for redemption and prepayment. The bonds of
Series B shall be in the principal amount of $150,000, shall
be 150 in number and numbered from 1 to 150, inclusive, each
in the denomination of $1,0001 and shall mature serially on
January 1 in the years and amounts as follows:
MUM
Year
Amount
Year
Amount
1956
$101060
1966
$102000
1957
5,000
1967
5,000
1958
10,000
1968
10,000
1959
5,000
1969
5,000
1960
10,000
1970
10,000
1961
5,000
1971
5,000
1962
10,000
1972
109000
1963
5000
1973
5,000
1964
10,000
1974
10,000
1965
5,000
1975
5000
Bonds of Series B numbered through 40 shall be without option
of prior payment, but those numbered 41 through 150, which
mature in the years 1961 through 1975, shall be each subject
to redemption by the Village on January 1, 1960 and any
July 1 or January 1 thereafter, in inverse order of serial
numbers, at par and accrued interest plus a premimum of
$25for each bond so redeemed prior to January 1, 1965, or
no premimum for any bond redemed on or after January 1,
1965., All redemptions of bonds of Series A or B shall
be made upon notice of call for redemption .mailed not less
than 30 days prior to the date specified for redemption
to the bank at which principal and interest are then pay-
able, and eo the holder, if known, of each bond to be
redeemed. The Village Clerk is hereby authorized and
directed to maintain a register of the names, addresses,
and bond numbers of holders of redeemable bonds, insofar
as such information is made available to him, for .the
purpose of giving such notice'of redemption Bonds of
Series A and B maturing in the years set forth below shall
bear interest at the respective rates per annum set
forth opposite such maturity years, as follows:
Series A
Maturity Years
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
Interest Rate
3% 0
3%
3%
Series B
Maturity Years Interest
1956
0
1957
3%
1958
1959
31960
3%%
1961
3�
1962
3'
1963
31
1965
3
1966
3-�
1967
3-T
1968
3-�
1969
33
1970
31
1971
3T
1972
3F
1973
A
1974
3T
1975
32
Rate
1
1
n
Such interest shall be payable on January 1, 1955 and semi-
annually thereafter on July 1 and January 1 of each year.
Principal of and interest on said bonds shall be payable at
Northwestern National Bank.of.Minneapolis, at Minneapolis,
and the Village hereby agrees to pay the reasonable and
customary charges of such paying agent for the receipt and
disbursement thereof.
7. Said improvement bonds shall be in substantially the
following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA.
(COUNTY OF HENNEPIN
VILLAGE OF GOLDEN VALLEY
SEWER IMPROVEMENT NO. 1 BOND,
SERIES A (B)
No.
$1,000.00
KNOW ALL MEN BY THESE PRESENTS that the Village of Golden
Valley, Hennepin County, Minnesota, acknowledges itself to
be indebted and for value received promises to pay to bearer
the sum of ONE THOUSAND DOLLARS on the first day of January,
19 , or, if this bond is prepayable as stated below, on
a date prior thereto on which it shall have been duly called
for redemption, and to pay interest thereon from the date
hereof until said principal sum is paid, or until this bond
if prepayable, has been duly called for redemption, at the
rate of per cent (_):per annum, payable January
1, 1955 a�semiannually thereafter on July 1 and January 1
of each year, interest to maturity being represented by and
payable in accordance with and upon presentation and surren-
der of the interest coupons appurtenant hereto. Both princi-
pal and interest are payable at the main office of the
Northwestern National Bank of Minneapolis, in Minneapolis
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 said
principal and interest as the same respectively become due
the full faith, credit, and unlimited taxing powers of said
Village have been and are hereby irrevocably pledged.
This bond is one of a series in the aggregate principal
amount of $6002000 ($150,000) all of like date and tenor
except as to serial number, (Interest rate) maturity, and
redemption privilege, and all part of an issue of bonds
issued for the purpose of defraying the expenses incurred and
to be incurred in constructing Sewer Improvement No. 1 in
said Village, and is issued pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota
thereunto enabling. This bond is payable primarily from the
144
Sewer Improvement No. 1 Fund of the Village of Golden
Valley, but the Council is required by law to pay maturing
principal thereof and interest thereon out of any funds
in the treasury if moneys on hand in said special fund
are insufficient therefor.
(Following paragraph for Series A, only)
Bonds of this series numbered 1 through 450 (Maturing in the
years 1956 through 1970) are payable on their respective stated
maturity dates, without option of prior payment, but those
numbered 451 through 600 (Maturing in the years 1971 through
1975) are each subject to redemption and prepayment at
the option of the Village on January 11 1970 and any interest
payment date thereafter, in numerical order of their serial
numbers and at a price equal to the par value thereof, plus
interest to accrue thereon to the date specified for redem-
ption. The Village will mail notice of call of any of said
bonds for redemption, not less than 30 days prior to the date
specified for redemption,to the holder thereof, if known,
and to the bank at which principal and interest are then
payable. Holders of said bonds numbered 451 through.600
who desire to receive such notice may register their names
and addresses and the numbers of such bonds with the Village
Clerk.
(Following
.,paragraph for Series B only)
Bonds of this series numbered 1 through 40 (maturing in
the years 1956 through 1960) are'payable on their respec-
tive stated maturity dates, without option of prior payment$
but those numbered 41 through 150 (maturing in the years
1961 through 1975) are each subject to redemption and pre-
payment at the option of the Village on January 1, 1960 and
any interest payment date thereafter, in inverse order of
their serial numbers and at a price of par and accrued inter-
est plus a premimum of $25.00 for each bond so redeemed
prior to January 1, 1965 or no premimum for any bond redeemed
on or after January 1, 1965. The Village will mail ngtice
of call of any of said bonds for redemption, not less than
30 days prior to the date specified for redemption, tui the
holder thereof, if known, and to the bank at which principal.
and interest are then payable. Holders of said bonds number-
ed 41 through 150 who desire to receive such notice may
register their names and addresses and the numbers of such
bonds with the Village Clerk.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED 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 precedent to and in the issuance
of this bond in order to make it a valid and binding general
obligation of said Village according to its terms have been
done, do exist, have hap7ened and have been performed as so
required; that prior to the issuance hereof the Village has
covenanted and agreed that it will levy special assessments upon
property benefited by said improvement, and has duly levied a
direct, annual, irrepealable tax upon all taxable property within
I the Village, which special assessments and taxes are collectible
IL•I in the years and in aggregate amounts not less than 5% in excess
of sums sufficient to pay the principal of and interest on the
bonds of this issue as such principal and interest respectively
become due, and have been irrevocably pledged and appropriated
to said Sewer Improvement No. 1 Fund, and additional ad valorem
taxes, if needed for said purpose, any be levied upon all such
taxable property without limitation as to rate or amount; and
that the issuance of this bond did not cause the indebtedness
of said.Village to exceed any constitutional or statutory
limitation.
IT WITNESS WHEREOF the Village of Golden Valley, Hennepin County,
Minnesota, by its Village Council, has caused this bond to be
executed in its behalf by the signature of its Mayor; attested
by the signature of the Village Clerk, and the corporate seal
of the Village to be affixed hereto, and has caused the interest
coupons appurtenant hereto to be executed and authenticated by
the facsimile signatures of said officers, and has caused ,this
bond to be dated as of July 1, 1954•
ee. -
,..,� / w Mayor
Attes
(SEAL)
(Form of Coupon)
No.
On the 1st day of January (July), 19�, the Village of Golden
Valley, Hennepin County, Minnesota, will pay to bearer at the
.main office of , in ,
, the sum of
DOLLARS lawful money of the United States of America for in-
terest then due on its Sewer Improvement No. 1 Bond, Series
A (B), dated July 1, 1954, No.
(Facsimile signature)
Mayor
(Facsimile signature)
Village Clerk
(Coupons numbered 32 and upwards attached to the bonds of Series
_ A and coupons numbered 12 and upwards attached to the bonds of
i Series B shall also include the phrase "Unless the bond described
below is called for earlier redemptionit)