#063 07-09-57 Create Improvement Funds Bond Sinking FundI
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Resolution No. 63
July 9, 1957
Member Teresi introduced the following resolution and moved its adoption:
"RESOLUTION CREATING IMPROVEMENT FUNDS AND 1957 THIRD SERIES
BOND SINKING FUND, PROVIDING FOR AND APPROPRIATING SPECIAL
ASSESSMENTS FOR THE SUPPORT AND MAINTENANCE THEREOF, AND DIRECTING
ISSUANCE OF $335,000 IMPROVEMENT BONDS OF 1957, THIRD SERIES"
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 determined, after public hearing as required by law, the necessity
of the construction of each of the improvements described below and the area
proposed to be assessed therefor, and as to some of said improvements has
ordered, received and approved plans and specifications and entered into
contracts therefor after due advertisement for bids; that the total benefits
resulting from each of said improvements to the lots and tracts of land
subject to assessment therefor and to the Village at large will be not less
than the total cost of such improvement; that the total cost of each of
said improvements, including all expenses incurred and to be incurred from
its inception to its completion and all fees and expenses in connection
therewith, is estimated to be not less than the amount set opposite the
designation of such improvement in the following tabulation:
Name of Improvement
Lateral San. Sewer
No. 4(c)
South Tyrol Storm Drain-
age
Indiana Ave. No. Bit-
uminous Paving (Fund
No. 21-f) -
Date Impr.
Ordered
April 16, May 14
& June 4, 1957
December 11, 1956
May 14, 1957
Date Contract Estimated Cost
Awarded
June 4, 1957 $293,490.00
MIA
Day Labor
6,250.00
3,320.00
Western Ave. Bitumin-
ous Paving (Fund No.
21-e) June 4, 1957 (To be awarded 5,900.00
West 2 Yale Garden August 6, 1957)
Homes Street Grading, (To be awarded
etc. August 6, 1957) 13,040.00
No construction contract; the improvement involves
condemnation only.
that it is necessary and expedient for the Village to borrow at this time the
sum of $335,000 for the purpose of paying all of the expenses incurred and to
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Resolution No. 63 (continued) July 9, 1957
be incurred in connection with the above mentioned improvements except
the West z of Yale Garden Homes Street Grading, Etc., Improvement, and
a portion of the expenses incurred and to be incurred in connection
with the West z of Yale Garden Homes Street Grading, Etc., Improvement,
by the issuance of general obligation improvement bonds in accordance
with the provisions of Minnesota Statutes 1953, Section 429.091, Sub-
division 4; and 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 preliminary to the issuance and sale of
said bonds have been done, do exist, have happened and have been per-
formed in due form, time and manner as so required.
2. A special debt redemption fund shall be and is hereby created, to
be designated as the "1957 Third Series Bond Sinking Fund", and to be
held and administered by the Village Treasurer in accordance with the
provisions of Minnesibta Statutes 1953, Section 429.091, Subdivision 4,
which fund shall be administered and accounted for in the manner herein
specified until all of the improvement bonds payable therefrom herein
or hereafter authorized, and interest thereon, shall have been fully
paid. A separate fund is also hereby created and shall be maintained
for each of the improvements financed by this issue, which funds shall
be designated by the names of the improvements to which they respectively
pertain. The proceeds of sale of the improvement bonds herein authorized
shall be credited to said funds in the following amounts:
To
the Lateral San.
Sewer No. 4(c) Fund:
$ 293,490.00
To
the South Tyrol
Storm Drainage Fund:
$
6,250.00
To
the Indiana Ave.
No. Bit. Pay. Fund:
$
3,320.00
To
the Western Ave.
Bit. Pay. Fund:
$
51900.00
To
the West 2 Yale
Garden Homes Street
Grading, Etc.,
Fund:
$
13,040.00
To
the 1957 Third Series
Bond Sinking Fund
(for payment of
interest during con-
struction):
$
13,000.00
To said improvement funds there shall also be credited the proceeds of
sale of additional improvement bonds which may hereafter be authorized
for the purpose of paying the expenses of making said improvements, and
such available moneys of the Village which may hereafter be appropriated
thereto by the Council, all as may be directed by further resolutions .cif
of the Council. From each of said funds shall be paid all costs and
expenses of making the improvement for which the same is created, as
such expenses are incurred and allowed, and the moneys in said funds
shall be used for no other purpose; provided that if upon completion of
any of such improvements there shall remain any unexpended balance in
the fund of such improvement, such balance may be transferred to the fund
of any other improvement herein designated for which the moneys herein
provided may prove insufficient, and upon completion of all of said improve-
ments any unexpended balances in the funds of such improvements shall be
transferred to said 1957 Third Series Bond Sinking Fund. There shall be
credited to said 1957 Third Series Bond Sinking Fund all collections of
the special assessments herein agreed to be levied and all accrued interest
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Resolution No. 63 (continued) July 9, 1957
and premium received upon delivery of said bonds, and the sum of $13,000.00
above stated. The moneys in said fund shall be held and used only for the
payment of the principal of and interest on said bonds as such payments
become due, or to prepay. and redeeem the same when and as such bonds become
prepayable, as hereinafter set forth; provided, that in the event that
it shall be determined by the Council to be necessary to borrow additional
moneys for the payment of the costs of said improvements, and if such
costs shall prove to exceed the amount hereinabove estimated, and if the
Village shall undertake and agree to levy special assessments and/or
general taxes in excess of the amounts of assessments herein specified,
the Village shall have the right and power to issue additional improvement
bonds payable from said 1957 Third Series Bond Sinking Fund on a parity
with the bonds of the issue herein authorized, but the amount of all
bonds issued in respect of said improvements shall not exceed the total
costs thereof or the total amount of the assessments and taxes levied
therefor.
3. It is hereby determined that not less than THREE HUNDRED THIRTY-
FIVE THOUSAND AND N0/100 DOLLARS ($335,000.00) of the costs of said
improvements shall be paid by the levy of special assessments upon all
assessable lots and tracts of land lying within the assessable areas
heretofore specified in the respective resolutions ordering said im-
provements, based upon the special benefits received by each such lot
and tract. 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 said special assessments, and all collections of said
assessments are hereby irrevocably appropriated to said 1957 Third Series
Bond Sinking Fund. In the event that any such assessment be at any time
held invalid with respect to any lot or tract of land, due to any error,
defect or irregularity in any action or proceeding taken or to be taken
by the Village or by this Council or by any of the Villages officers
or employees, either in the making of such assessment or in the performance
of any condition precedent thereto, the Village hereby covenants and
agrees that it will forthwith do all such further acts and take all such
further proceedings as shall be required by law to make such assessment
a valid and binding lien upon said property. Said assessments shall be
payable in equal, consecutive, annual installments, the first of which
shall be certified to the County Auditor for collection with general
taxes for the year 1958, and the remaining installments of said assess-
ments shall be certified for collection with the general taxes for each
subsequent consecutive year until the assessment is paid. To the first
installment shall be added interest at the rate of 6% per annum on the
entire assessment from the date of the resolution levying the assessment
until December 31 of the year in which the first installment is payable.
To each subsequent installment shall be added interest at 6% per annum
for one year on all unpaid installments. The number of installments of
assessments for Lateral Sanitary Sewer Improvement No. 4(c) shall be 20,
and for the other improvements shall be 10.
4. The full faith and credit of the Village shall be and is hereby ir-
revocably pledged for the prompt and full payment of the principal of
and interest on said bonds. It is estimated that the collections of
said special assessments agreed to be levied in paragraph 3 above will
produce sums not less than 5% in excess of the amounts neede to pay said
principal and interest then due, in accordance with the provisions of
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Resolution No. 63 (continued) July 9, 1957
Minnesota Statutes, Section 475.61. If at any time the moneys in said
fund should be insufficient to pay all such principal and interest due,
the Council shall provide sufficient moneys for such payment from any other
funds in the treasury of the Village, and such funds may be reimbursed
from the proceeds of said special assessments when collected, and the
Village shall have the power and authority to levy ad valorem taxes upon
all of the taxable property within its corporate limits to the extent
required to restore any deficiency in said fund for the payment of said
bonds and interest, which levy may be made without limitation as to rate
or amount.
5. For the purpose of paying costs of said improvements and in anticipa-
tion of the collection of said special assessments, the Village shall
forthwith issue its negotiable coupon general obligation Improvement Bonds
of 1957, Third Series, payable primarily from said 1957 Third Series Bond
Sinking Fund, in the principal amount of $335,000. Said bonds shall be
dated as of August 1, 1957, shall be 335 in number and numbered from 1 to
335, inclusive, each in the denomination of $1,000, shall be payable to
bearer, and shall mature in order of serial numbers, on February 1, in
the years and amounts set forth below, the bonds of the various maturities
to bear interest at the rate per annum set forth opposite such respective
maturities, as follows:
Year
Amount
Int. Rate
Year
Amount
Int. Rate
1960
$20,000
4.50%
1970
$20,000
4.50%
1961
20,000
"
1971
15,000
"
1962
20,000
"
1972
15,000
4.60%
1963
15,000
"
1973
15,000
"
1964
20,000
"
1974
15,000
it
1965
15,000
"
1975
15,000
to
1966
20,000
4.25%
1976
15,000
if
1967
15,000
"
1977
15,000
"
1968
20,000
"
1978
15,E
It
1969
15,000
4.50%
1979
15,000
"
Plus additional interest on all bonds from September 1, 1957, to August
1, 1959, at the rate of 1% per annum, represented by a separate set of
"B" coupons.
Interest shall be payable on February 1, 1958, and semiannually thereafter
on August 1, and February 1 of each year. The bonds maturing in the years
1972 through 1979 shall be each subject to redemption and prepayment, at
the option of theVillage, on February 1, 1964, and any subsequent interest
payment date, at par and accrued interest plus a premium of $30 for each
bond redeemed prior to February 1, 1968, or a premium of $15 for each bond
redeemed on or after February 1, 1968, but prior to February 1, 1972, or
no premium for any bond redeemed on or after February 1, 1972. The Village
Clerk is hereby authorized and directed to mail notice of the call of any
of siad bonds for redemption to the holder, if known, and to the bank at
which principal and interest are then payable, and to maintain a register
showing the names and addresses of the bondholders and the serial numbers
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Resolution No. 63 (continued) July 9, 1957
of their bonds, so far as such information is made available to him. The
principal of and interest on said bonds shall be payable at the main office
of the American National Bank of Saint Paul, in St. Paul, Minnesota, and
the Village hereby agrees to pay the reasonable and customary charges of
said paying agent for the receipt and disbursement thereof.
6. Said improvement bonds shall be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
VILLAGE OF GOLDEN VALLEY
IMPROVEMENT BOND OF 1957, THIRD SERIES
No. $1,000
KNOW ALL MEN BY THESE PRESENTS that the Village of Golden Valley,
a duly organized and existing municipal corporation of the County of Hennepin,
State of Minnesota, acknowledges itself to be indebted and for value re-
ceived promises to pay to bearer the sum of ONE THOUSAND DOLLARS on the lst
day of February, 19 , or, if this bond is redeemable, on a date prior
thereto on which it s7iall have been duly called for redemption pursuant to
the right of prepayment reserved below, and to pay interest thereon from
the date hereof until said principal sum be paid, or, if this bond is re-
deemable, until it has been duly called for redemption, at the rate of
per cent ( %) per annum, payable February 1, 1958,
and se thereafter thereafter on Augus l and February 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
the Village further promises to pay additional interest on said principal
sum from September 1, 1957, to August 1, 1959, at the rate of one per cent
(1%) per annum, payable on February 1, 1958, and semiannually thereafter on
August 1 and February 1, such additional interest being represented by the
separate "B" coupons 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 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 such principal and
interest as the same respectively become due the full faith, credit and tax-
ing powers of the Village are hereby irrevocably pledged.
This bond is one of a series in the aggregate principal amount of
$335,000, all of like date and tenor except as to serial number, maturity,
interest rate, and redemption privilege, all issued for the purpose of de-
fraying expenses incurred and to be incurred in constructing necessary improve-
ments in said Village, and is issued pursuant to and in full conformity with
the Constitution and laws of the State of Minnesota thereunto enabling, and
pursuant to resolutions duly adopted by the Village Council. This bond is
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Resolution No. 63 (continued) July 9, 1957
payable primarily from the 1957 Third Series Bond Sinking Fund, to which
fund the Council has appropriated special assessments to be levied for
the payment of the cost of said improvements, but the Village Council is
required to pay the same out of any fund of the Village in the event that
the assessments collected are at any time insufficient to meet the pay-
ment of maturing principal and interest.
Bonds of this series numbered 1 through 215 are payable on
their respective stated maturity dates, without option of prior payment.
Bonds of this series numbered 216 thorugh 335, which mature in the years
1972 through 1979, are each subject to redemption and prepayment, at the
option of the Village, on February 1, 1964, and any subsequent interest
payment date, at a price of par and accrued interest plus a premium of
$30 for each bond redeemed prior to February 1, 1968, or a premium of $15
for each bond redeemed on or after February 1, 1968, but prior to February
1, 1972, or no premium for any bond redeemed on or after February 1, 1972.
Such redemption may be made only upon notice mailed, at least thirty days
prior to the date specified for redemption, to the holder, if known, of
each bond so called for redemption, and to the bank at which principal
and interest are then payable. Bondholders desiring to receive such
notice may register their names and addresses and the serial numbers of
their redeemable 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 preliminary to and in the issuance of this bond in order to
make it a valid and binding general obligation of said Village accord-
ing to its terms have been done, do exist, have happened and have been
performed as so required; that the estimated collections of said special
assessments will be in the years and amounts sufficient to produce sums
not less than five per cent (5%) in excess of the amounts required for
payment when due of the principal and interest on all bonds of this
series; that general ad valorem taxes, if needed for the payment of such
principal and interest, may 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 limitatiou.
IN WITNESS WHEREOF the Village of Golden Valley, Hennepin
Councy, Minnesota, by its Village Council, has caused this bond to be
executed in its behalf by the signature of its Mayor, countersigned by
its Village Clerk, and sealed with its official seal, and the interest
coupons appurtenant hereto to be executed and authenticated by the
facsimile signatures of said officer, and has caused this bond to be
dated as of August 1, 1957.
Couers' ed: n yor
,pt
( SEAL)
Clerk
Resolution No. 63 (continued) July 9, 1957
( Form of Coupon)
No. �
On the lst day of February (August), 19 , the Village of Golden
Valley, Hennepin County, Minnesota, will payymoo bearer at the rain office
of The American National Bank of Saint Paul, in St. Paul, Minnesota,
the sum of DOLLARS lawful money of the
United States 7 America for interest -then due on its Improvement Bond
of 1957, Third Series, dated August 1, 1957, No.
(Facsimile signature)
Mayor
(Facsimile signature)
Village Clerk
(Coupons numbered 14 and up attached to bonds numbered 216 and
up include the phrase: "Unless the bond described below is
called for earlier redemption".)
7. Said bonds 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, countersigned by the Village Clerk, and the corporate seal shall
be affixed thereto, and the interest coupons shall be executed and authen-
ticated by the printed, engraved or lithographed 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 pur-
chasers thereof upon payment of the purchase price heretofore agreed
upon, and said purchasers shall not be obliged to see to the application
of the purchase price.
8. The Village Clerk is hereby authorized and directed to transmit a
certified copy of this resolution to the County Auditor of Hennepin
County for certification that the bonds herein authorized have been
duly registered.
9. 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 proceedings relating to
said bonds and to the financial affairs of the Village, and such other
affidavits, certificates 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 con-
trol or as otherwise known to them, and all such certified copies,
certificates and affidavits, including any heretofore furnished, shall
be deemed representations of the Village as to the facts recited therein.
r-
MAyor
ATTEST:
0,1_7�Z(21?
7ttlagVlerk
IM
Resolution No. 63 (continued)
July 9, 1957
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, Nadasdy, Rahn, Stark, and Teresi;
and the following voted against the same: None;
whereupon said resolution was declared duly passed and adopted and was
signed by the Mayor and attested by the Village Clerk.
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