#153 04-12-56 Create Trunk Sewer Improvement No. 2 FundResolution No. 153
April 12, 1956
Member Stark introduced the following resolution and moved its adoptions
RESOLUTION CREATING TRUNK SEWER IMPROVEMENT NO. 2 FUND,
PROVIDING FOR AND APPROPRIATING SPECIAL ASSESSMENTS TO
THE SUPPORT AND MAINTENANCE THEREOF, AND DIRECTING
ISSUANCE OF TRUNK SEWER IMPROVEMENT N0: 2 BONDS
BE IT RESOLVED by the Village Council of the Village of Golden Valley, Minn-
esota, as followss
1. Thid 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 Trunk Sewer Improvement
No. 2 of the Village with Barbarossa & Sons, Inc. of St. Cloud, Minnesota,
and Henry Nod]and Co., of Alexandria, Minnesota, pursuant to public advertise-
ment 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 total cost of said improvement to the Village will
be approximately equal to and not less than $1,000,00, 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; but
excluding all items of cost agreed to be paid by the City of St. Louis Park
under co-operative.agreement with the Village; that the total benefits re-
sulting from said construction to the assessable lots, pieces and parcels
of land affected thereby and to the Village at large will be substahtially
in excess of the total cost thereof; and that it is necessary that the sum
of $1,000,000 be borrowed at this time, by the issuance of general oblig-
ation improvement bonds of the Village in accordance with the provisions
of Minnesota Statutes 1953, Chapter 429, as hereinafter provided, in order
to finance the costs and expenses.of constructing said improvement.
2. There is hereby created a special fund to be designated as the "Trunk
Sewer Improvement No. 2 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
saiq 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 "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''aid improvement, less
any accrued interest and premium reeeL*#&--tbe on;Iahalljbe credited to the
Construction Account. From said account 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
insuffieient to meet.the payment of maturing principal and interest on axy
outstanding bonds which are primarily payable from said fund, moneys in said
Construction AccoOnt 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 improvement 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
Resolution No. 153 (continued)
April 12, 1956
collections of the special assessments and general taxes herein or
hereafter levied or agreed to be levied, and to the Sinking Fund also
shall be credited all accrued.interest and premijam 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 to the Village shall exceed the amount herein
estimated, 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 mW..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 One Million and
No -100 Dollars ($1,000,000) of the cost of Trunk Sewer Improvement No. 2
shall be paid by special assessments upon all assessable lots, pieces and
parcels of land lying within the area proposed to be assessed for said
improvement, an described.in the notice of hearing on the making of said
improvement published on November 3 and 10, 1955, in the Suburban Press,
published in Hopkins, Minnesota. 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 of 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 perfol mance of any con-
dition 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 installments, the first of said
installments to be payable with general taxes for the year 1956, collectible
with such taxes during the year 1957. 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. For the purpose of borrowing money to pay the costs to the Village of
constructing Trunk Sewer Improvement No. 2, the Village shall forthwith
issue and deliver to the purchaser thereof its negotiable coupon general
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Resolution No. 153 (continued)
April 12, 1956
obligation Trunk Sewer Improvement No. 2 Bonds, dated February 1, 1956. 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
$1,000, and shall mature serially on February 1, in the amount of 1;0,000 in
each of the years 1958 through 1977. Bonds numbered 1 through 650 shall be
without option of prior payment, but those numbered 651 through 1,000, which
mature in the years 1971 through 1977, shall each be subject to redemption
by the Village on February 1, 1970 and any interest payment date thereafter,
at par and accrued interest, in inverse order of serial numbers. All
redemptions 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 Cle# 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 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 Interest Rate
1958 3.70%
1959 "
1960
1961
1962
1963 "
196: u
1965
1966 "
1967 "
1968
1969
1970 3.60%
1971 "
1972 "
1973 a
1974 n
1975
1976 "
Flus 2.10% extra coupon on all bonds for the period of June 1, 1956 to
February 1, 1957.
Such interest shall be payable on August 1, 1956 and semiannually thereafter
on February 1, and August 1 of each year. Principal of and interest on
said bonds shall be payable at the Northwestern National Bank in Minneapolis,
Minnesota, and the Village hereby agrees to pay the reasonable and custom-
ary charges of such paying agent for the receipt and disbursement thereof.
5. Said improvement bonds shall be in substantially the following forms
320
Resolution No. 153 (continued)
April 12, 1956
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
VILLAGE OF GOLDEN VALLEY
i DI ze I � I a
No. $1,000
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 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 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
August 1, 1956 and semiarmuZT73 t ereafter on February 1 and August 1 of
each year, interest to maturity being represented by and payable in accord-
ance with and upon presentation and surrender of the interest coupons
appurtenant hereto; and the Village further promises to pay additional
interest on said principal sum at the rate of� per cent (� )
per annum from to payable on ,
such additional Brest ben g represented by a separa. a set o
coupons hereto appurtenant. Both principal and interest are payable at the
main office of the Northwestern National Bank in Minneapolis, Minnesota,
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
some 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 serial number,
(interest rate,) maturity, and redemption privilege, issued for the
purpose of defraying expenses incurred and to be incurred in constructing
Trunk Sever Improvement No.. 2 in said Village,°and is.issued pursuant to
and in full conformity with the Constitution and laws of the State of
Minnesota thereunto enabling.. Thi.s`.bor is payable primarily from the
Trunk Sewer Improvement No. 2 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 numbered 1 through 650 (maturing in the.years 1958
throw 1970) are payable on their respective stated maturity dates, with-
out option of prior payment, but those numbered 651 through 1,000 (mat-
uring in the years 1971 through 1977) are each subject to.redemption and
prepayment at the option of the Village on February 1, 1970 and any
interest payment date thereafter, in inverse order of their serial numbers
Resolution No. 153 (continued)
April 12, 1956
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 prior to the date
specified for redemption, to the holder thereof, if bnown, and to the bank
at which principal and interest are then payable. Holders of said bonds
numbered 651 through 1,000 who desire to receive such notice may register
their names and addresses and the numbers of such bonds with the 'Pillage
Clerk.
IT IS HERESY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions, and things required by the Constitution and laws of the State of
Ninnesota.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 Viliage.according to its terms have been done,
do exist, have happened 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 within
the Village, which special assessments are collectible in the years and in
aggregate amounts not less than 5% in excess of sums sufficient to pay and
for the purpose of paying the principal of and interest on the bonds of this
issue as such principal and interest rempectively become due, and have been
irrevocable pledged and appropriated to said Trunk Sewer Improvement No. 2
Fund, and general ad valorem taxes, if needed for said purpose, may be levidd
upon all taxable property within 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, Minnesota,
by its Village Council, has caused this bond to be executed in its behalf
by the signature of its Magor, 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 authentigated
by the facsimile signatures of said officers, and has caused this bond to be
dated as of February 1, 1956.
(Seal) C
yo
ATTEST
e Aer
(Form of Coupon)
No. $
On the lst day of August (February), 19 , the Village of Golden Valley,
Hennepin County, Minnesota, will pay to creaser at the Main office of
s
in
e sum or DOLIARS Uv--fiilmoney o e Mea
States of Ame ca or in erest t en ue on its Trunk Sewer Improvement No. 2
322
Resolution No. 153 (continued)
April 12, 1956
Bond, dated February 1, 1956, No. .
(Facsimile signature)
mayor
(Facsimile signature)
Village Clerk
(Coupons numbered 29 and upwards shall also include the phrase "Unless the
bond described below is called for earlier redemption".)
6. Said bonds herein authorised to be issued 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 lith-
ographed facsimile signatures of said mayor and Village Clerk. Then 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 ie,.hereby authorized and directed to file a
certifid&'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 directdd 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 proceedings and records relating to said
bonds and to the financial affairs of the Village, and such other affidavits
certificated, and information 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 otherwise known to
them, and all such certified copies, certificated, and affidavits, including
any heretofore furnished, shall be deemed representations of the Village as
to the facts recited therein.
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Resolution No. 153 (continued)
April 12, 1956
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 thereofs Bi.es, Nadasdy, Rahn, Stark, and Teresi; and the following
voted against the sames None; whereupon said resolution was declared duly
passed and adopted, and was signed by the Mayor and his signature attested
by the Clerk.
STATE OF MINNESOTA )
CONY OF HENNEPIN ) ss
VILLAGE OF GOLDEN VALLEY )
I do hereby certify that at a regular meeting of the Village Council of
Golden Valley, Minnesota, on the 12th day of April, 1956, at which a
majority of the members of said Council were present, the foregoing
resolution was adopted.
Given under my hand and seal