HomeMy WebLinkAboutResolution 380RESOLUTION #380
A RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND
DELIVERY OF $1,130,000 IMPROVEMENT BONDS PAYABLE
FROM THEIMPROVEMENT BOND REDEMPTION FUND, AND
APPROPRIATING SPECIAL ASSESSMENTS TO THAT FUND
FOR THE PAYMENT OF SUCH BONDS
BE IT RESOLVED by the Council of the Village of Orono, Minnesota,
as follows:
1. For the purpose.of providing $1,130,000 to finance the cost
of constructing Water Improvement-1970LW-1, the Village shall forthwith
issue, sell and deliver to John Nuveen $ Company of Chicago, Illinois,
and.associates, its negotiable coupon general obligation Improvement
Bonds in.the'principal amount of $1,130,000 to be dated as of February. 1,
1971, which bonds shall be payable from the Improvement Bond Redemption
Fund of the Village of Orono in accordance with the provisions of
Ordinance No. 56, adopted on September 4, 1963, and shall be secured by
all.the covenants and governed by all the terms and provisions set forth in
that ordinance. It is hereby found and determined that said improvement
has been duly instituted in.accordance with the provisions of Minnesota
Statutes, Chapter 429, as amended, upon hearing as required by law, that
contracts have been duly awarded upon advertisement for bids for, -the work.
and materials required for said improvement, in accordance with approved
.plans and specifications, that the total cost of the improvement is
estimated to be not less than the amount of said bond issue, and that the
terms and provisions of said.bonds as herein set forth are as provided -
in the proposal of said purchasers received this date, which proposal
is the highest and best bid submitted pursuant to advertisement heretofor
made under the direction of the Council. The Mayor and Clerk are hereby
.authorised and directed to enter into a contract for the sale of the
bonds on the part of the Village in accordance with said proposal. The -
Treasurer shall retain the good faith check furnished by the purchaser
until delivery of the bonds and payment of the purchase price, and shall
return the checks of all other bidders forthwith.
2. The bonds shall be numbered serially..from l to 226, inclusive,
each in the denomination of $5,000, and.shall mature serially on February 1
in the years and -amounts set forth below, the bonds of each annual maturity
to bear interest until paid or duly called for redemption at the rate
shown below opposite the year of such maturity, as follows:
Year
Amount
Interest Rate
Year
Amount
Interest Rate
1973
$75,000
4.00%
1981
$75,000
4.600
1974
75,000
4.00%
1982
75,000
4.60%
1975
75,000
4.00%
1983
75,000
5.00%
1976
75,000
4.00%
1984
75,000
1977
751,000
4.00%
1985
75,000
5.25%
1978
754000
4.00%
1986
753,000
5.25%
1979
75,800
4.30%'`1987
8010000
5.40%
1980
755-000.
4.30%
. r, . -`.J -.. , .
Interest -shall be payable on -each February 1 and August 1, commencing on
September 1, 1972. The interest from date of issue to maturity shall
be represented by appropriate interest coupons appurtenant to each
bond. The bonds maturing in the years 1973 through 1978 shall not be
subject to redemption before maturity, but those maturing in the years
il
(Resolution #380, continued)
1979 through 1978 shall be each subject to redemption and prepayment in
inverse orde•>r of serial numbers at the option of the Village on February 1,
1978, and any interest payment date thereafter, at a price of 101-1/2
and accrued interest. Not less than thirty days before the date specified
for prepayment and redemption of any of said bonds, the Village Treasurer
shall -publish notice of'the call thereof in a daily or weekly periodical
published in a Minnesota -city of the first class or its metropolitan area,
which'.circulates throughout the state and furnishes financial news as a
part of its service. The Treasurer shall also mail such notice to the
bank at which the bnnds are then payable, but published notice shall be
effective without mailing... -The principal of and interest -on said bonds
shall be payable at the main office of the Northwestern National Bank of.
Minneapolis,'in Minneapolis, Minnesota, and the Village hereby agrees to
pay the reasonable and customary charges of such paying agent for the
receipt and disbursement thereof.
3.• The bonds shall be prepared for execution forthwith., executed
and delivered to said purchasers in the manner and substantially in'the
form set forth in said Ordinance No. 56, upon payment by the purchasers
of $1,125,276.60 plus accrued interest, as provided in the contract•of
sale above described, and the proceeds thereof shall be credited by the
Treasurer to the fund of the improvement mentioned in paragraph 1 d'f
this resolution, and used solely to pay -the costs of said improvement
and for the other purposes specified in said ordinance, provided that all
proceeds of the bonds received in excess of $1,039,800 will be needed for
the payment of interest to accrue on the bonds during .the construction of
the improvement and shall be held therein and used only for such purpose.
4. In accordance with said ordinance, it is hereby estimated
that special assessments will be levied so as to be available for credit
to the Improvement Bond Redemption Fund in the amount of $978,815 payable
in equal annual installments collectible in the years 1972 through 1986.
Said assessments'will be collectible with interest at the rate of 8% per
annum. To the first installment shall be added interest on the entire
assessment on each property from the date of adoption thereof until.
December 31 of the year in whichithe first: installment is payable, and to
each subsequent installment shall be n0de;d inti:vcst- for of e yc4-,r on the
thea unpaid balance of the assessment.
5. It is estimated that the collections of said special assessment:
and the.other•moneys appropriated to the Improvement Bond Redemption Fund,
will produce at least five per cent in excess of the amounts needed each
year to meet when due the principal and interest payments on the bonds.
herein authorized,'and on all other bonds of the Village payable from the
Improvement Bond Redemption Fund. All moneys collected therefrom shall
be and are hereby appropriated to the Improvement Bond Redemption Fund,
and shall be accounted for and expended in the manner provided in Ordinance
No. 56. The full faith and credit of -the Village is also pledged for the
payment of said bonds and interest as provided in said ordinance.
Adopted by the Village Council of the Village of Orono, Minnesota at a
special meeting held January 12, 1971.
<_ Louis B. 0 .er auser,
Attest:
X_ / X _t .–
R—alphartin, Cler -Administrator
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