#114 04-12-55 Create Lateral Sewer Improvement Fund No. 1RESOLUTION ADOPTED
by the
VILLAGE COUNCIL
Resolution No. 114 April 12, 1955
Member Rahn introduced the following resolution and moved its adoption:
RESOLUTION CREATING LATERAL SZvTR IMPROWI ENT NO. 1 FUND,
PROVIDING FOR AND APPROPRIATING SPECIAL ASSESSMENTS TO TSF,
SUPPORT AND MAINTENANCE THEREOF, AND DIRECTING ISSUANCE OF
LATERAL SEWER IMPROVTYENT NO. 1 BONDS
BE IT 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 contracts for the construction of Lateral Sewer Improve-
ment No. 1 of the Village with Barbarossa & Sons, Inc., of St. Cloud,
Minnesota, and Henry Nodland Co., of Alexandria, Minnesota, pursuant
to public advertisement for bids as required by Minnesota Statues 1953,
Chapter 129, and said contractors have furnished bonds for the performance
of said contract as required by law; that the total cost of said improve-
ment to the Village will be approximately equal to and not less than
$1,250,000.00 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 land
affected thereby and to the Village at large will be substantially in
excess of the total cost thereof; and that it is necessary that the sum
of $1,000,000.00 be borrowed at this time, by the issuance of general
obligation improvement bonds of the Village in accordance with the provi-
sion of Minnesota. Statutes 1953, Chapter 1129, as hereinafter provided,
in order to finance a portion of the costs and expenses of constructing
said improvement.
2.
There is hereby created a special fund to be designated as the "Lateral
Sewer Improvement No. 1 Fund", to be held and administered 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
payable 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.designated as the "Construction Account" and Sin�ng 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 and premium
received thereon, shall be credited to the Construction Account, and there \-
shall also be credited to said account, from the receipts of the special
assessments thereinafter agreed to be levied, so much thereof as shall be
needed, in addition to the funds received from the sale of the bonds
�1
hereinafter authorized to 'oe issued, to complete said improvement;
provided, not more than $250,000.00 of said receipts of special
assessments may be paid into said account. From said Account there
shall be paid costs and expenses of making said improvement, as incur-
red 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 outstanding bonds which are
primarily payable from said fund, moneys in said Construcion 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 improve-
ment 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 assessments herein or hereafter levied or agreed to be levied
except for the receipts of special assessments above directed to be paid
into the Construction Account, and all collections of any ad valorem
deficiency taxes levied as required by Minnesota Statutes, Secion 429.091,
Subdivision 2, and to the Sinking Fund Account shall also be credited
all accrued interest and premium received upon delivery of such bonds.
The moneys in.said Sinking Fund Account shall be held and used only for
the payment of the principal of and interest on such bonds, as such payments
become due; provided, that in the event that the cost of said improvement
shall exceed the amount herein estimated, or in the event that the receipts
of special assessments herein appropriated to the Construction Account
are not sufficient in addition to the funds received from the sale of said
bonds to c-mplete said improvement, the Village shall have the right and
power to issue additional improvement bonds payable from said Sinking
Fund Account on a parity with the bonds of the issue herein authorized,
but the amount of all bonds issued in respect of said improvement shall
not exceed the total cost thereof or the total amount of the assessments
(excluding interest thereon) and taxes levied therefor and appropriated
to said Sinking Fund Account. The full faith and credit of the Village
shall be and are hereby pledged to pay the 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. The
Village recognizes its obligation to levy each year ad -valorem taxes
sufficient in amount to take care of accumulated or anticipated deficiencies
in said fund, as required by Minnesota Statutes, Section 429.091 (2).
3. It is hereby determined that the sum of not less 'than One Million Two
Hundred Fifty Thousand and No -100 Dollars($l,250,000) of the cost of
Lateral Sewer Improvement No. 1 shall be paid by special assessments upon
all assessable lots, pieces and parcels of land lying within Lateral
Sewer Districts Nos. 1(a) through l(1), as described in the published
notices of hearings on the making of lateral sewer improvements therein,
and as modified in the resolutions ordering such improvements adopted on
November 4, 1954 and March 1, 1955. It is hereby found that the amount
of assessments herein determined to be levied 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 be 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 proceedings 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 install-
ments, the first of said installments to be payable with general taxes for
the year 1955, collectible with such taxes during the year 1956. Deferred
installments shall bear interest at the rate of five per cent (5%) per
annum, from the date of the resolution levying said assessment until
December 31 of the year in which the installment is payable.
4. For the purpose of borrowing money to pay the costs of constructing
Lateral Sewer Improvement No. 1, the Village shall forthwith issue and
deliver to the purchaser thereof its negotiable coupon general obliga-
tion Lateral Sewer Improvement No. 1 Bonds dated February 1, 1955. Said
bonds shall be in the principal amount of 1,000,000, shall be 1,000 in
number and numbered from 1 to 1,000, inclusive, each in the denomination
of 91,000, and shall mature serially on February 1 in the amount of
$50,000 in each of the years 1957 through 1976. Bonds numbered 1 through
750 shall be without option of prior payment, but those numbered 751
through 1,000, which mature in the years 1972 through 1976, shall each
be subject to redemption by the Village on February 1, 1971 and any interest
payment date thereafter, at par and accrued interest, in inverse order of
serial numbers. All redemption 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 payable,
and to 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 �f redemption. Bonds maturing in the years set forth below
shall bear interest at the respective rates per annum set forth opposite
such maturity years, as follows:
Maturity Years
1957-64*
1965-67*
1968 -?6*
Interest Rate
2.5o%
2. r, 5%
2.90%
all bonds to bear additional interest at the rate of 2:20% per annum
from August 1, 1955 to February 1, 1956, such additional interest being
represented by a separa,e "B" coupon.
Such interest shall
after on February 1
be paya�)le on August 1, 1955 and semi-annually there-
and August 1 of each year. Principal of and interest on
said bondsshall be
payable at The American
National Bank
of Saint Paul, in
St. Paul, Minnesota,
and the Village hereby
agrees to pay
the reasonable and
cuntomary charges of
such paying agent for
the receipt and
disbursement
thereof.
5. Said improvement bonds shall be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COiJNTY OF HENNEPIN
VILLAGE OF GOLDEN VALLEY
LATERAL SE!n'ER IMPROVEMENT NO. 1 BOND
No.
$1,000
KNOW ALL MEN BY THESE PMST!TdTS 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 February, 19 , or, if this bond is prepayable as stated below,
on a date prior thereto on which it shall have been duly called for redemp-
tion, and to pay interest thereon from the date hereof until said principal
sum is paid, or until this bond, if prepayable, has ^een duly called for
redemption, at the rete of per cent (� %) per
annum, payable August 1, 1955 and semiannually thereafter on February 1
andAugust 1 of each year, interest to maturity being represented by and
payable in accordance with and upon presentation and surrender of the
interest coupons appurtenant hereto; and said Village further promises to
pay additional interest on said principal sum at the rate of two and
twenty -hundredths per cent (2.20%) per annum from August 1, 1955 to
February 1, 1956, payable on February 1, 1956, such additional interest
being represented by the separate "B" coupon hereto appurtenant. Both
principal and interest are payable -at the main office of the American
National Bank of Saint Paul, in St. Paul, Minnesota, in any coin or cur-
rency of the United States of American 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 an issue in the aggregate principal amount of
$1,000,000, all of like date and tenor except as to seriV l number,
interest rate, maturity, and redemption privilege, issued for the pur-
pose of defraying expenses incurred and to be incurred in constructing
Lateral 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
Lateral 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.
Bonds of this issue numbrred 1 through 750 (maturing in the years 1957
through 1971) are payable on their respective stated maturity dates,
without option of prior payment, but those numbered 751 through 1,000
(maturing in the years 1972 through 1976) are each subject to redemption
and prepayment at the option of the Village on February 1, 1971 and any
interest payment date thereafter, in inverse 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 redemption. The Village will mail
notice of call of any of said bonds for redemption, not less than 30 days
]arior 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 751 through 1,000 who desire to receive
such notice may register their names and addresses and the numbers of such
bonds with the Village Clerk.
IT IS HIMBY CERTIFIED, !ECITFD, COVENANTED AND AGREED that all acts, con-
ditions 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 happened and have been performed as so required; that the
Village has duly contracted for the making of said improvement and will
cause the same to be completed with the funds made available by this
issue; that said Lateral Sewer Improvement No. 1 Fund has been duly created
and provision made for the supoort thereof by special assessments here-
tofore agreed to be levied upon property benefited by said improvement,
for the years and in aggregate amounts not less than 5% in excess of sums
suffieicnt to pay the principal of and interest on the bonds of this issue
as such principal and interest respectively become due, and general ad valor-
em taxes, if needed, are required to be levied upon all taxable property
in the Village 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.
IN WITNESS WHEREOF the Village of Golden Valley, Hennepin County, Min esota,
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 authen-
ticated by the facsimile signatures of said officers, and has caused this
bond to be dated as of February 1, 1955.
ry
May
Attest:
age er
(SEAL)
No.
1
(Form of Coupon)
On the lst day of August (February), 19the Village of Golden
Valley, Hennepin County, Minnesota, will pay to bearer at the main office
of The American National Bank of Sait Paul, in St. Paul, Minnesota,
the sum of
DOLLARS lawful money of the United tates ofmica for interest'•then
due on its Lateral Sewer Improvement No. 1 Bond, dated February 1, 1955,
No.
(Facsimile signature)
Mayor
(Facsimile signature)
Village Clerk
(Coupons numbered 33 and upwards shall also include
the phrase "Unless the bond described below is called
for earlier redemption)
6. Said bonds herein authorized to be is -sued shall be prepared under
the direction of the Village Clerk and shall be executed on behalf of
the Village by the signature of the Mayor, attested by the Village Clerk,
and the corporate seal shall be affixed thereto, and the interest coupons
shall be executed and authenticated by the printed, engraved, or litho-
graphed facsimile signatures of said Mayor and Village Clerk. when said
bonds have been so executed and authenticated, they shall be delivered by
the Treasurer to the purchaser thereof, upon payment by the purchaser of
said bonds of the price heretofore agreed upon, and said purchaser shall
not be obliged to see to the application of said purchase price.
7. The Village Clerk is hereby authorized and directed to file a certi-
fied copy of this resolution with the County Auditor of Hennepin County,
together with such other information as he shall require, and to obtain
from said County Auditor a.certificate that said bonds have been entered
on his bond register.
8. The officers of the Village and the County Auditor of Hennepin County
are hereby authorized and directed to prepare and furnish to the purchaser
of said bonds and to the attorneys approving; the legality of the issuance
thereof certified copies of all roceedings and records relating to said
bonds and to the financial affairs of the Village, and such other affida-
vits, certificates, and infr�rmation as may be required to show the facts
relating to the legality and marketability of said bonds as the same
appear from the books and records under their custody and control or as
oth�-rwise known to them, and all such certified copies, certificates, and
affidavits, including any heretofore furnished, shall be deemed represen-
tations of the Village as to the facts recited therein.
1
1
1
1
Mayor
Attest:
r�tle6ik-(2
The motion for the adoption of the
by Member Eoss, and upon vote bein
favor thereof: Foss, Huebsch, Ra
against the same: None, Gies wa
declared duly, passed and adopted,
attested by the Clerk.
f_regoing resolution was duly seconded
g taken thereon, the following voted in
Rah
and Stark; and the following voted
s absent) whereupon said resolution was
and was signed by the Mayor, which was