#032 06-06-77 Award Sale Recreation System Revenue BondsResolution No. 32.
June 6, 1977
Member Anderson then introduced the following resolution and moved its adoption:
RESOLUTION AWARDING THE SALE,
PRESCRIBING THE FORM AND TERMS,
AND PROVIDING FOR THE PAYMENT OF
$500,000 RECREATION SYSTEM GROSS
REVENUE BONDS
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota, as
follows:
Section 1. Bond Authorization.
1.01 Municipal Recreation System. This City now operates a program of public
recreation and playgrounds pursuant to Minnesota Statutes, Sections 471.15 to 471.191; and
as part of the program owns and operates a system of recreational facilities,
including the Brookview golf course and related facilities comprising a driving range,
a restaurant, a golf shop and clubhouse facilities. It is necessary and expedient
for the City to construct improvements to the existing golf course and to construct
an additional nine hole par three course as part of the existing Brookview golf
course. The estimated total cost of such project, including captialized interest
and necessary reserves, is $490,000. All of such or improvements thereto, are
hereinafter referred to as "the Municipal Recreation System."
1.02 Bond Authority. Under Minnesota Statutes, Section 471.191, the City has
authority to issue revenue bonds to finanace the cost of the proposed project, and to pledge
to the payment of such bonds and the interest thereon, the gross revenues of the
Municipal Recreation System. The City presently has no outstanding bonds which constitute
a lien or charge on such revenues.
1.03 Bonds Authorized; Security. This Council hereby authorizes the issuance of
$500,000 principal amount of Recreation System Gross Revenue Bonds to finanace the cost
of the proposed project, and including $10,000 of bonds representing interest authorized
pursuant to Minnesota Statutes, 475.56. The bonds and the interest thereon shall be
payable solely from and secured by a first lien and charge on the gross revenues to be
derived by the City from the Municipal Recreation System.
1.04 System Revenues. The City presently operates, and will continue to operate
the Municipal Recreation System as a revenue producing public convenience, open on equal
terms to all residents of the City and the surrounding area, and will improse rates and
charges for the use of the System sufficient to produce gross revenues -in the amount
needed to pay the principal of and interest on the bonds herein authorized when due;
and, together with any amounts provided by the City in its annual budget each year,
sufficient to pay all costs of operation, administration and maintenance of the System
when due.
1.05 Sale of Bonds. Notice of sale of the bonds now to be issued has been duly
published and the Council has publicly received, opened and considered all sealed bids
presented in conformity with the notice. The most favorable of such bids is ascertained
to be that of Dain, Kalman & Quail, Inc., of Minneapolis, Minnesota and associates to
purchase the bonds at a price of $490,074.46 plus accrued interest, and upon the further
terms and conditions set forth in this resolution.
Resolution No. 32 (con't) June 6, 1977
1.06 Sale Contract. The Mayor and City Manager directed to execute in
duplicate a contract on the part of the City for the sale of the bonds in accordance
with the proposal described in Section 1.05, and to deliver a duplicate to the
purchaser. The Treasurer is directed to retain the purchasers' check securing
the contract of sale until the bonds are delivered and thepurchase price is paid,
and to return the checks securing other bids to the respective bidders.
Section 2. Form of Bonds and Coupons.
2.01 Bond Form. The Bonds issued hereunder shall be printed in substantially
the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF GOLDEN VALLEY
RECREATION SYSTEM GROSS REVENUE BOND
NO.
$5,000
KNOW ALL MEN BY THESE PRESENTS that the City of Golden Valley, Hennepin County,
Minnesota, promises to pay to bearer, solely from the revenues appropriated and
pledged to the Revenue Bond Account of its Municipal Recreation System Fund, as
a first lien and charge upon the gross revenues from time to time received from
the operation of its Municipal Recreation System, the sum of
FIVE THOUSAND DOLLARS
on the 1st day of December, 19 , or, if this bond is prepayable as stated below,
on an earlier date on which it shall have been duly called for redemption, and
to pay interest thereon at the rate of percent ( %) per annum from the
date hereof until the principal sum is paid or discharged or, if this bond is
prepayable, until it has been duly called for redemption; such interest being
payable semiannually on June 1 and December 1 in each year, commencing December 1,
1977, in accordance with and upon presentation and surrender of the interest coupons
appurtenant hereto. The principal of and interest on this bond are payable at
,in , in any coin or currency of the United States which
on the respective dates of payment is legal tender for public and private debts.
This bond is one of an issue in the total principal amount of $500,000, all
of like date and tenor except as to serial number, interest rate, maturity and
redemption privilege, issued to finance the acquisition and betterment of facilities
for the Municipal Recreation System, pursuant to and in full conformity with the
provisions of the Constitution and laws of the State of Minnesota thereunto enabling,
including Minnesota Statutes, Chapters 471 and 475, and an Authorizing Resolution
adopted by the City Council on June 6, 1977• The principal of and interest on the
bonds of this issue are payable solely from the gross revenues to be derived by the
City from the operation of its Municipal Recreation System which have been pledged
and appropriated to said Revenue Bond Account, and do not constitute a general
obligation or indebtedness of the City.
Resolution No. 32 (con't) June 6, 1977
Bonds of this issue matruing in the years 1979 to 1989, inclusive, are not
subject of redemption before maturity, but those maturing in the years 1990 to 1997,
inclusive, are each subject to redemption and prepayment at the option of the City
in inverse order of their serial numbers, on December 1, 1989 and any interest
payment date thereafter, at par plus accrued interest. Not less than thirty days before
the date specified for the prepayment and redemption of any bond the City will
cause notice of thecall thereof to be published in a financial newspaper in a Minnesota city
of the first class or its metropolitan area and also to be mailed to the bank at which
principal and interest are then payable and to the holder, if known, of each bond
to be redeemed, but published notice shall be effective without mailing. Holders of
prepayable bonds be effective without mailing. Holders of prepayable bonds desiring
to receive such notice may register their names and addresses and the serial numbers of
their bonds with the City Treasurer.
The City of Golden Valley covenants and agrees with the holder hereof that until
this bond is fully paid or discharged as provided in said Authorizing Resolution, it will
maintain on its official books and records a separate and special Municipal Recreation
System Fund, into which it will pay as received all gross revenues derived from the
operation of the Municipal Recreation System as defined in said Authorizing Resolution,
and will maintain therein a separate and special Revenue Bond Account to which it
has irrevocably pledged and appropriated and will credit on the first day of each and
every month, as a first lien and charge on all such gross revenues, a sum equal to not
less than one -twelfth of all principal to become due within the then next succeeding
twelve months, plus a sum equal to not less than one-sixth of all interest to become
due within the next succeeding six months, on all bonds payable from said Account
including this bond, less the amount of such interest to be paid from bond proceeds,
and will maintain in said Fund a separate and special Reserve Account in which it will
maintain a reserve for the payment of principal and interest on all such bonds; that
the City has established and will maintain and revise when necessary reasonable rates
and charges for all facilities, services and commodities furnished and made available
by and through its Municipal Recreation System, in accordance with scheduled such that
the revenues derived therefrom in each calendar year will be sufficient to pay all
principal and interest to become due and payable from the Revenue Bond Account in such
year, and the revenues received in excess of such principal and interest requirements,
together with any other funds legally available which the Council shall determine to include
and provide for in the City's annual budget, will be sufficient to pay promptly as
incurred all current, reasonable and necessary costs of the operation and maintenance
of the Municipal Recreation System, and to maintain the balance in the Reserve Account;
that if necessary for payment of costs of operating and maintaining its Municipal
Recreation System the City will levy an ad valorem tax on all taxableproperty within
the City, subject of limitations imposed upon general purpose City tax levies; that
except as provided in said Authorizing REsolution, the City will incur no other
obligations payable from said revenues unless it is expressly made subordinate to said
pledge and appropriation; that said Authorizing Resolution contains other covenants for
the security of this bond which will be promptly and fully performed as stipulated
therein; that all acts, conditions and things requiared by the Constitution and laws
of the State of Minnesota to be don, to exist, to happen and to be performed in order
to make this bond a valid and binding special obligation of the City according to its
terms have been done, do exist, have happened and have been performed as so requiared;
and that the issuance of this bond did not cause either the special or the general
indebtedness of the City to exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF the City of Golden Valley, Hennepin County, Minnesota, by its
City Council, has caused this bond and the interest coupons appurtenant hereto and the
certificate on the reverse side hereof to be executed and authenticated by the
signatures of the Mayor and City Manager, and its corporate seal to be affixed hereto,
Resolution No. 32 (cont) June 6, 1977
all such signatures and the seal being authentic printe graved or lithographed
facsimiles except for the manual signature of one ofai off on the face of
this bond, and has dated this bond as of June 1, '197 ./' )
Attest:
City Manager
Mayor
2.02 Legal Opinion Certificate. A copy of the text of the legal opinion of
bond counsel shall be printed on the reverse side of each bond and identified by
a certificate in the following form:
We certify that the above is a full, true and corre opy of the legal opinion
rendered by bond counsel on the issue of bonds of the C' y f Got Valley which
includes the within bond, dated as of the date of del' er of d ayment to the
bonds. /
City Manager Mayor
2.03 Coupon Form. Interest on each bond to maturity shall be represented by
a consecutively numbered set of interest coupons, printed in substantially the
following form:
1
No. $
Unless this bond is subject to and is called for earlie redemption, on the
1st day of June (December), 19 , the City of Golden Valley nnepin County, Minnesota,
will pay to bearer at , in ,
the amount shown hereon in lawful money of the United S s of Am ri a for interest
then due on its Recreation System Gross Revenue Bond, ed Jun 977, No.
City Manager
Section 3. Bond Terms, Execution and Delivery.
r
3.01 Terms. The $500,000 of bonds issued hereunder shall be titled Recreation
System Gross Revenue Bonds, shall be dated June 1, 1977, shall be issued in the
denomination of $5,000 each, numbered serially from 1 to 100, inclusive, shall
mature serially on December 1 in the respective years and amounts stated below, and
shall bear interest from date of issue until paid or duly called for redemption at
the respective annual rates stated opposite such maturity years and amounts:
Year
Amount
Rate
Year
Amount
Rate
1979
$10,000
5.25%
1989
$25,000
5.60%
1980
10,000
5.25%
1990
30,000
5.70%
1981
15,000
5.25%
1991
30,000
5.80%
1982
15,000
5.25%
1992
35,000
5.90%
1983
15,000
5.25%
1993
35,000
6.00%
1984
20,000
5.25%
1994
40,000
6.00%
1985
20,000
5.40%
1995
4o,000
6.00%
1986
20,000
5.40%
1996
45,000
6.00%
1987
25,000
5.50%
1997
45,000
6.00%
1988
25,000
5.60%
1
Resolution No. 32 (con't)
June 6, 1977
3.02 Interest; Paying Agent. Interest on the bonds shall be payable semi-
annually on June 1 and December 1 in each year, commencing December 1, 1977. The
principal of and interest on the bonds shall be payable at
in which is designated as paying agent, or in the event
of its resignation, removal or incapability of acting as paying agent, at the office
of such successor paying agent as may be appointed by the Council, and the City
agrees to pay the reasonable and customary charges of the paying agent for this service,
and to account for such charges as an operating cost of the Municipal Recreation
System.
3.03 Redemption Before Maturity. The bonds maturing in the years 1979 through
1989 shall not be subject to redemption before maturity, but those maturing in the
years 1990 through 1997 shall be each subject to redemption and prepayment at the
option of the City in inverse order of their serial numbers on December 1, 1989 and
any interest payment date thereafter, at par, plus accrued interest, upon notice
published in a financial newspaper published in a Minnesota city of the first class
or its metropolitan area and mailed to the bank at which principal and interest are then
payable not less than thirty days before the redemption date.
Section 4. Administration of the Municipal Recreation System Fund.
4.01 Municipal Recreation System. As used in this resolution the term
"Municipal Recreation System" or "System" shall mean and refer to the Brookview golf
course and related facilities including the driving range, a restaurant, a golf shop,
clubhouse facilities and the project described in Section 1.01 hereof, and any
additions or improvements thereto; and the gross revenues pledged to the Revenue Bond
Account established in Section 4.04 for the payment of the bonds herein authorized shall
be only those derived and to be derived from the operation of the Municipal Recreation
System.
4.02 Municipal Recreation System Fund. From and after the issuance of the
bonds herein authorized, all of the gross income and revenue derived from the operation
of the Municipal Recreation System, and of any future additions or improvements thereto,
including all amounts received with respect to services and commodities furnished
by the Municipal REcreation System to any person, are hereby set aside, appropriated
and pledged to the Municipal Recreation System Fund (presently known as the Brookview
Operating Fund), which shall be maintained as a separate and special fund on the
books of the City at least until the bonds herein authorized and interest coming due
thereon are paid in full. The City Treasurer shall maintain books and records showing
all receipts and disbursements of revenues herein pledged to that Fund and of all
other moneys pertaining to the System, on which books and records there shall be
maintained, the separate subfunds or accounts hereinafter designated in this Section 4.
3.04 Execution and
Delivery. The bonds and the interest
coupons and the
certificate on the reverse
side of each bond
shall be executed
and authenticated in
behalf of the City by the
signatures of the
Mayor and the City
Manager and the
corporate seal of the City
shall be affixed
to each bond. All
signatures and the seal
shall be printed, engraved
or lithorgraphed
facsimiles except
for the manual
signature of one of these
delivered by the Treasurer
officers on the face
to the purchasers
of each bond. The bonds shall then be
on receipt of the cash purchase price
stated in Section 1.05. The
purchaser shall
not be required to see to the application
of the proceeds of the bonds.
Section 4. Administration of the Municipal Recreation System Fund.
4.01 Municipal Recreation System. As used in this resolution the term
"Municipal Recreation System" or "System" shall mean and refer to the Brookview golf
course and related facilities including the driving range, a restaurant, a golf shop,
clubhouse facilities and the project described in Section 1.01 hereof, and any
additions or improvements thereto; and the gross revenues pledged to the Revenue Bond
Account established in Section 4.04 for the payment of the bonds herein authorized shall
be only those derived and to be derived from the operation of the Municipal Recreation
System.
4.02 Municipal Recreation System Fund. From and after the issuance of the
bonds herein authorized, all of the gross income and revenue derived from the operation
of the Municipal Recreation System, and of any future additions or improvements thereto,
including all amounts received with respect to services and commodities furnished
by the Municipal REcreation System to any person, are hereby set aside, appropriated
and pledged to the Municipal Recreation System Fund (presently known as the Brookview
Operating Fund), which shall be maintained as a separate and special fund on the
books of the City at least until the bonds herein authorized and interest coming due
thereon are paid in full. The City Treasurer shall maintain books and records showing
all receipts and disbursements of revenues herein pledged to that Fund and of all
other moneys pertaining to the System, on which books and records there shall be
maintained, the separate subfunds or accounts hereinafter designated in this Section 4.
Resolution No. 32 (con't) June 6, 1977
4.03 Capital Expenditures Account. The Capital Expenditures Account shall
be used only to pay expenses which under accepted accounting principles constitute
capital costs necessarily incurred for the acquisition and betterment of
recreation facilities including the project described in SEction 1.01, and including
but not limited to land, easements, buildings, structures and equipment, and the
cost of all architectural, engineering, legal and other professional services,
printing and publication, interest to accrue on the bonds herein authorized coming
due on or before December 1, 1979, and other costs reasonably necessary and
incidental thereto. To this Account shall be credited all of the proceeds of
the bonds issued hereunder except the amount thereof to be deposited in the
Reserve Account as provided in Section 4.06, and the proceeds of any other bonds
of the City issued in the future as contemplated by this resolution or otherwise,
for thefinancing of capital improvements or additions to such facilities, and such
other moneys as may from time to time be appropriated thereto for this purpose.
4.04 Revenue Bond Account. From the gross revenues received by the City
from the operation of the Municipal Recreation System, including all penalities
and proceeds of the voluntary sale of any real or personal property comprising
part of the Municipal Recreation System, there is appropriated and shall be credited
to the Revenue Bond Account each month, a sum not less than one -twelfth of the total
amount of principal to become due within the twelve months next following, and
a sum not less than one-sixth of the total amount of interest to become due
within the six months next following, on all then outstanding bonds issued pursuant
to and as contemplated by this resolution which are payable from said Account,
exclusive of interest on the bonds to be paid from the Capital Expenditures
Account. This requirement is cumulative, and if the full amount required cannot
be transferred in any month, the deficiency shall be restored from the next gross
revenues received by the City. The Revenue Bond Account shall be used only to pay
the principal of and interest on the bonds issued pursuant to and as contemplated
by this resolution when due. The balance therein on each payment date shall be
used first pro rata to pay theinterest then due on all of said bonds, and then
to pay the principal of the matured bonds in order of their maturity dates, and in
order of the dates of issue of bonds maturing on the same date, and in order of the
serial numbers of the bonds issued and maturing on the same dates. Upon the call of
any such bonds for redemption in advance of maturity, there shall also be provided
in the Revenue Bond Account, over and above the amounts herein required, from
surplus revenues or the proceeds of refunding bonds, additional funds sufficient
to pay the principal amount of the obligations redeemed and the premium required for
such redemption, if any.
4.05 Operating Account. To this Account shall be credited all gross revenues
received from the operation of the Municipal Recreation System in excess of the
requirements of the Revenue Bond Account. The Operating Account shall be used
only to pay, promptly when due, expenses which under accepted accounting principles
constitute current, reasonable and necessary costs of the operation, administration
and maintenance of the Municipal Recreation System, and to maintain in accordance
with accpeted accounting practice a reasonable working capital reserve for recurring
expenses. To this Account shall also be redited, so far as needed, any funds other than
revenues which shall be appropriated by the City Council for this purpose. The City
covenants and agrees that upon the occurrence of a deficiency in the Operating Account
which cannot be restored forthwith from the Reserve Account or the Depreciation and
Replacement Account, it will include in its next annual budget an amount sufficient
to restore such deficiency, and will levy a tax upon all taxable property within its
corporate limits sufficient to restore such deficiency, within the limitations pre-
scribed by law upon taxes levied by the City for general coporate purposes.
Resolution No. 32 (con't) June 6, 1977
4.06 Reserve Account. There is hereby appropriated to the Reserve Account
from the proceeds of the bonds herein authorized, the sum of $50,000.00 which shall
be held as a reserve for the payment of the principal of and interest on all bonds
payable from the Revenue Bond Account when due. A balance equal to such sum shall
be maintained by the transfer to the Reserve Account of revenues in excess of the
requiarements of the Revenue Bond Account and the Operating Account whenever and to
the extent necessary, or if such revenues are not sufficient for this purpose, then
such transfers shall be made from the balance then on hand in the Depreciation
and Replacement Account. When and if the balance in the Reserve Account is more
than required, the excess may be transferred to any Account established in this Section
or pursuant to Section 4.08. The Reserve Account first shall be used to pay interest
or principal actually due on the bonds issued pursuant to and as contemplated by
this resolution, when, if and to the extent that such interest or principal cannot
be paid in full from the Revenue Bond Account; and second, at any time when all
transfers required to be made to the Revenue Bond Account have been made, may be
used to the extent necessary to eliminate any deficiency in the Operating Account
for the payment of sums actually due with respect to current reasonable and necessary
operation, administration and maintenance expenses.
4.07 Depreciation and Replacement Account. The Depreciation and Replacement
Account may be used to segregate net revenues of the Municipal Recreation System
from time to time received in excess of those currently needed for the purposes
of the Revenue Bond Account, the Operating Account and the Reserve Account, and
any balance therein shall be transferred to these Accounts whenever and to the
extent needed for such purposes, but when not so needed may be used to finance
repairs, replacements, improvements and additions to the System; or may be transferred
to the Capital Expenditures Account to finance improvements or additions to the
System, or to the Revenue Bond Account for the purpose of redemption of bonds
in advance of maturity, or to any Account established pursuant to Section 4.08
for the payment of other bonds issued to finance the acquisition and betterment of
facilities for the System.
4.08 Establishment of Other Accounts. The City reserves the right to establish
other Accounts in the Municipal Recreation System Fund for the purpose of segregating
revenues for the payment of principal of and interest on any obligations issued to
finance the facilities comprising part of the Municipal Recreation System, and the
right to pledge revenues of the System to any such Account for such purpose, subject
to the prior pledge thereof to the Accounts established in Sections 4.03 through
4.06 and the lien thereon of bonds payable from the Revenue Bond Account.
4.09 Deposit and Investment of Funds. All revenues and bond proceeds
appropriated to the Municipal Recreation System Fund, when uninvested, sha11'be kept
on deposit withcne or more depository banks duly qualified under the laws of the State,
with the security therein required. Such revenues and funds shall be kept invested
and reinvested so far as possible, solely in securities which are authorized by law
for the investment of municipal sinking funds. All securities so purchased shall
mature at or before the time when it is estimated that the proceeds thereof will be
needed for the puroses of the account from which funds are withdrawn for the purchase.
All income, gain and loss on such investments shall be credited or charged, as the case
may be, to the account from which the investment was made.
Section 5. Additional Covenants.
5.01 General Covenant. The City covenants and agrees with the holders from time to
time of all obligations payable from the Revenue Bond Account in the Municipal Recreation
System Fund, or any other Account established pursuant to Section 4.08, that until
all obligations payable therefrom and interest thereon are fully paid or discharged
Resolution No. 32 (con't)
June 6, 1977
as provided in this resolution, it will fully and promptly perform and do all
additional acts and things provided in this Section 5.
5.02 Rate Covenant. The City will establish and maintain charges, fees and
rentals for all facilities, services and commodities of whatsoever nature
furnished and made available by the Municipal Recreation System to all individuals
and organizations, in accordance with schedules such that the gross revenues
derived therefrom will at all times be sufficient to pay all principal and
interest payments on bonds payable from the Revenue Bond Account and maintain
the balance required in the Reserve Account; and, together with any other funds
legally available which the Council determines to include and provide for in the
City's annual budget, to pay all expenses payable from the Operating Account when
due; and will revise such rates, charges and rentals whenever necessary for these
purposes.
5.03 Improvements. The City will complete the project described in Section
1.01, and all additional capital improvements for which bonds may be issued in the
future as contemplated in this resolution, in accordance with plans and specifications
approved and to be approved by the City Council, and at a total cost not to
exceed the amount of the proceeds of the bonds authorized in Section 1 and net
revenues of the Municipal Recreation System or other moneys available and
appropriated for the payment thereof, under contracts advertised and awarded and
secrued by serety bonds executed in accordance with the laws of the State of
Minnesota.
5.04 Continued Ownership. The City will continue its ownership and operation
of the Municipal Recreation System, and will cause it to be maintained in good
and efficient operating condition, free from all liens on the revenues or the
physical properties thereof, other than the liens herein provided, and will not
sell or otherwise dispose of any capital assets of the System except at their
fair market value, and will use the proceeds of any such sale or disposition to
procure other capital assets or equal usefulness for the purposes of the System,
or to pay and redeem bonds payable from the Revenue Bond Account.
5.05 Books and Records. The City will cause proper and adequate books of
record and account to be maintained, reflecting all receipts and disbursements
and all accured claims and expenses in connection with the operation and maintenace
of the Municipal Recreation System, and the pyament of obligations incurred therefor,
and will make such records available for inspection at all reasonable times by
the holder of any such obligations or his agent or attorney, and will cause them
to be audited annually by a certified public accountant, and will furnish the
report of each such audit without cost to the initial purchaser of each series
of bonds issued under the provisions of this resolution, and will make the report
available for inspection, upon request, by the holder of any such bond.
5.06 Insurance. The City will procure and keep in force at all time
insurance on all buildings, structures, improvements, and equipment constituting
at any time a part of the Municipal Recreation System, exclusive of foundations
and excavations, against the perils covered under ''all risk'' insurance approved
by the Insurance Department of the State of Minnesota, in such amounts as like
properties are customarily insured for by prudent owners thereof, and will maintain
public liability insurance at all times in amounts not less than the amounts
in excess of which the City is immune from tort liability under the laws of the
State of Minnesota, for all acts and omissions of its officers and employees
concerned with the operation and maintenance of the System, and will procure and
keep in force surety company bonds covering all officers and employees handling
System funds, in amounts sufficient to cover at all times the funds in their hands.
Resoultion No. 32 (con't) June 6, 1977
In the event of loss or damage compensated by any such insurance or bonds, the proceeds
thereof shall be used to repair and restore the damage compensated.
5.07 Bondholders' Rights. No holder of any bond issued and secured under the
provisions of this resolution shall have the right to institute any proceeding, judicial
or otherwise for the enforcement of the covenants herein contained, without the
written concurrence of the holders of not less than 25% in aggregate principal amount
of the obligations which are at such time outstanding and payable from the Revenue
Bond Account, but the holders of this amount of such obligations may, either at
law or in equity, by suit, action or other proceeding, protect and enforce the rights
of all holders of such bonds and compel the performance of any and all of the convenants
required herein to be performed by the City and its officers and agents, including
but not limited to the establishment and maintenance of charges:, fees and rentals and
the collection and proper segregation of revenues and the use thereof. The holders of
a majority in principal amount of such outstanding obligations shall have the right
to direct the time, method and place of conducting any proceeding for any remedy available
to such holders or the exercise of any power conferred upon them, and the right to
waive a default in the performance of any such convenant, and its consequences, except
a default in the payment of the principal of or interest on any such obligations when
due. However, nothing herein shall impair the absolute and unconditional right of the
holder of each such obligation to receive payment of the principal thereof and interest
thereon as such principal and interest respectively become due, from the revenues and
other sources pledged and appropriated for the payment thereof, and to institute suit
for the enforcement of any such payment.
5.08 Bonds Not Debt. The bonds authorized and contemplated by this resolution
shall not constitute in any manner indebtedness of the City within the meaning of any
provision of state law limiting the amount or method of incurring indebetedness.
Section 6. Additional Bonds.
6.01 Subordinate Bonds. Except as provided in this SEction 6, no series of additiona
additional bonds shall be issued and secured under this resolution, and no other
obligations of any kind, payable from or constituting a charge upon the revenues of the
Municipal Recreation System shall be issued unless such obligations are made junior
and subject to the lien and charge on the revenues of the bonds secured by this
resolution.
6.02 Refunding Matured Bonds. The City reserves the right to issue one or
more additional series of bonds to refund the bonds secrued by this resolution at
their stated maturity dates, if and to the extent that the balance then on hand
or available for transfer to the Revenue Bond Account is insufficient for their payment.
Such refunding bonds shall be payable from the Revenue Bond Account on a parity with
any non -refunded bonds payable therefrom, but the maturities of any refunding bonds
issued under these circumstances shall be subsequent to the maturity of all other
bonds payable from theRevenue Bond Account which are not retired or discharged as
herein provided.
6.03 Other Parity Bonds. The City also reserves the privilege of issuing
additional bonds which may be made payable on a parity as to both interest and p
principal with the then outstanding bonds payable from the Revenue Bond Account,
provided that the net revenues received by the City from its' Municipal Recreation
System, during the last complete fiscal year preceding the issuance of such additional
bonds, subject to adjustment as herein provided, have been not less thanl25% of the
maximum amount of principal and interest to become due in any future calendar year
of the term of the then outstanding bonds payable from the Revenue Bond Account, on
Resolution No. 32 (con't) June 6, 1977
those bonds and the additional bonds to be issued; and provided that
at or prior to the issuance of such additional bonds the amount on hand
in the Reserve Account is increased to an amount equal to the maximum
amount of principal and interest to become due in any future fiscal year
on all such outstanding bonds and the a0ditional bonds to be issued. For the
purpose of this Section 6.03 the net revenues of the Municipal Recreation
System in any calendar year are the gross revenues actually received from all
sources for any facilities, services and commodities furnished and made available
by the System, during such year, less the amount of all expepses actually
paid during such year from the Operating Account. For the purpose of this
computation there shall be excluded from the revenues all income derived from
invested funds and from the sale of capital assets, and all money, if any, derived
from taxation and applied to the payment of costs of operation, maintenance, debt
service, or any other purpose of the City. However, if any annual amount or mill
rate of taxes is irrevocably pledged and appropriated, to the extent needed, for
theoperation and maintenance of the Municipal REcreation System, pursuant to any
law effective at the time of issuance of such additional bonds, to be available
for this purpose throughout the term of such bonds, such amount, or the amount
resulting from the extension of such mill rate against the assessed valuation of
all taxable property subject thereto as last finally equalized in the year preceding
the issuance of the additional bonds, may be added to the net revenues of the
then preceding fiscal year for the purpose of this Section 6.03. Any such additional
bonds shall mature serially on December 1.
Section 7. Defeasance.
7.01 In General. When the bonds of any series issued under and secured by
this resolution and all coupons appertaining thereto have been discharged as provided
in this section, all pledges, covenants and other rights granted by this resolution
to the holders of such series of bonds shall cease.
7.02 Deposit With Paying Agent. The City may discharge the bonds of any
series and the coupons appurtenant thereto which are due on any date by depositing
with the paying agent or agents for such bonds on or before that date a sum
sufficient for the payment thereof in full; or if any bond or coupon shall not
be paid when due, it may nevertheless be discharged by depositing with the paying
agent a sum sufficient for the payment thereof in full with interest accrued to the
date of such deposit. The City may also discharge any prepayable bonds of any
series which are called for redemption on any date in accordance with their terms,
by depositing with the paying agent or agents on or before that date an amount
equal to the principal, interest and redemption premium, if any, which are then
due thereon, provided that notice of such redemption has been duly given as provided
in the resolution authorizing such bonds.
7.03 Deposit in Escrow. The City may also at any time discharge any series
of such bonds in its entirety, subject to the provisions of law now or hereafter
authorizing and regulating such action, by depositing irrevocably in escrow,
with a bonk qualified by law as an escrow agent for this prupose, cash or securities
which are authorized by law to be so deposited, bearing interest payable at such
times and at such rates and maturing or redeemable at the option of the holder
on such dates as shall be required to provide funds sufficient to pay all principal,
interest and redemption premiums to become due on all bonds of the series on and
before the maturity dates of the bonds or their earlier redemption date.
Resolution No. 32 (con't) June 6, 1977
Section 8. Registration of Bonds and Authentication of Transcript.
8.01 Registration of Bonds. The City Clerk is authorized and directed to
cause a copy of this resoltuion to be filed with the County Auditor of Hennepin
County, and to obtain from said County Auditor a certificate that the issue of
bonds hereunder has been duly entered upon his bond register.
8.02 Authentication of Transcript. The City Clerk and other officers
of the City and County are also authorized and directed to prepare and furnish
to the purchaser of each series of bonds hereunder and to the attorneys approving the
legality thereof, certified copies of this resolution and of all other esolutions,
proceedings and records of the City relating to the authorization and issuance of
said bonds, and all other proceedings and records of the City relating to the
authorization and issuance of said bonds, and all other proceedings and records
reasonably required to show the validity or marketability of the bonds; and all
statements contained in such documents shall be deemed representatiions and recitals
by the City of Golden Valley.
Section 9. Arbitrage; Certificate of Mayor and City Manager.
The Mayor and City Manager being the officers of the City charged with the
responsibility for issuing the obligations pursuant to this resolution, are authorized
and directed to execute and deliver to the purcahser a certification in order
to satisfy the provisions of Section 1.103-13 of the amended Income Tax Regulations
(26 CFR Part 1) published in the Federal REgister, May 5, 1973• Such certification
shall state that on the basis of the facts, estimates and circumstances in existence
on the date of issue and delivery of the bonds as therein set forth, it is not
expected that the proceeds of the bonds will be used in such a manner that would
cause the bonds to be arbitrage bonds, and the certification shall further state
that to the best of the knowledge and belief of the certifying officers there are
not other facts, estimates or circumstances that would materially change such
expectation.
Section 10. Official Statement.
T.G. Evensen & Associates, Inc. has prepared and presented to this Council an
Official Statement containing financial and other information relating to the City
and the bonds herein authorized. Such Official Statement and its distribution to
prospective purchasers of the bonds is hereby approved.
Section 11. Inconsistent Resolutions.
All resolutions of the City which are in any way inconsis ent with this resolution
are repealed and shall be of no further force and effect, but ly to he extent
of such inconsistency.
Mayor
Attest: L--ty Cl�rl�
Resolution No. 32 (con't)
June 6, 1977
The motion for the adoption of the foregoing resolution was duly seconded
by Councilmember Thorsen and upon vote being taken thereon, the following
voted in favor thereof: Anderson, Hoover, Johnson, Swartz and Thorsen and
the following voted against the same: none, whereupon said resolution was
declared duly passed and adopted, and was signed by the Mayor, whose signature
was attested by the City Manager.
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