78-5852R113
RESOLUTION N0. 5852
RESOLUTION AWARDING THE SALE OF $6,450,000
GENERAL OBLIGATION REFUNDING BONDS OF 1978
BE IT RESOLVED by the City Council of the City of Richfield, Minnesota,
as follows:
1. In accordance with the terms of the Notice of Sale of the.Refunding
Bonds of 1978 of the-City, and upon recommendation of the financial advisors
to the City, the first maturity'of the Refunding Bonds is reduced by $50,000...-
Therefore,-the bid of BANCNORTHWEST to purchase $6,450,000 General Obligation
Refunding Bonds of 1978, of the City described in the notice of sale thereof is
hereby found and determined to be the highest and best bid received pursuant
to duly advertised notice of sale and shall be and is hereby accepted, such bid
being to purchase `such bonds at a price of pdr;,.pius accrued interest to date
of delivery, such bonds to bear interest as follows:
1979 5.50% 1984 5.25% 1989 4.80% 1994 - 5.15%
1980 5.50% 1985 4.60% 1990 4.90% 1;'~5 5.20%
1981 5.50% 1986 4.75% 1991 5.00°!° 1996 5.25%
1982 5.50% 1987 4.75% 1992 5.00% 1997 . 5.30%
1983 5.25% 1988 4.75% 1993 5.10%
The City Treasurer is directed to retain the good fai th check of the successful
bidder pending com pletion of the sale and del ivery of the bon ds. The City Clerk
is directed. to ret urn the checks of the unsuc cessful bidders forthwith. The
- Mayor and Manager .. are .auth orized and directed to exec ute the purchase contract
for the Bonds with the purchaser.
2. The City. of Richfield shall forthwith issue and sell its General
Obligation Refunding Bonds of 1978, said bonds being 1,290 in .number and num-
bered 1 to 1,290, both inclusive, in the denomination of $5,000 each, bearing
interest- as above'set forth, all interest payable August I, 1978, and semi-
annually -thereafter on February 1 and August 1 in each year, and which bonds
mature serially on February 1 in the years and amounts as follows:
YEAR AMOUNT
1979 $280,000
lggp 315,000.
. 1981 300,000
1982 305,000
1983 300,000
1984 285,000
. 1985 280,000
1986 275,000
1987.. 265.,.000
1988 405,000
1989 415,000
].990 410, 000
1991/92 405,000
~9g3 400,000
1994 395,000
1995/96 390,000
1997 230,000
All dates inclusive.
i
Resolution No. 5852 ~ -2-
-.All bonds maturing in the years 1989. to 1997, inclusive, being subject to re-
demption in inverse order of serial numbers on February 1, 1987 and any interest
payment date thereafter at a price of par accrued interest..
3. Both principal and interest shall be payable at the Northwestern
National Bank of Minneapolis and the City of Richfield shall forthwith pay the
reasonable charges of said bank for its services as paying agent.
4. The bonds and interest coupons to be thereto attached shall be in
substantially the following form:''
No. ', $5,000
UNITED'STATES OF AMERICA
STATE. OF MINNESOTA
COUNTY OF HENNEPIN
CITL' OF RICHFIELD.
GENERAL OBLIGATION REFUNDING BOND OF 1978
KNOW ALL ;MEN BY THESE PRESENTS that the City of Richfield, Hennepin.
County, Minnesota, acknowledges itself to be indebted and, for value received,
hereby promises to pay to bearer, 'the sum of-FIVE THOUSAND DOLLARS on the 1st
day of February, 19 and:to pay interest thereon from Lhe date hereof until
the principal amount is paid at the rate of percent ( %) per.
annum, interest to maturity payablle August 1, 1978, and semiannually thereafter
ors the 1st day of February and the 1st day of August in each year in accordance
with acid upon presei~tatiori and surrender of the interest coupons hereto attacl-~eci
as they severally become clue.. Both ,principal of and interest ori;':th;is bond are
payable at the main office of the''Northwestsrn Natibrial Bank~bf Minneapolis, in
any coin or currency of the United States of America which on the date of pay-
ment is legal tender for public and private. debts.
All bonds of this. issue maturing in the years 1989 to 1997, inclusive,
are subject to redemption aL the option of the City in inverse order of serial
numbers on February 1, 1987, and any interest payment date thereafter, at a
price of par plus accrued interest to date of redemption.
This bond is one of an issue of bonds in the total principal amount of
$6,450,000, all of-like date-and .tenor except as to maturity, interest rate,
redemption privilege and serial number, all issued by the,Cty for the purpose
of providing money to refund. in advance of maturity the outstanding principal
amount of certain bonds of the City designated as General Obligation Improve-
ment Bonds of 1974, dated May 1, 1974, and Gerieral Obligation Improvement Bonds
of 1975, dated May 1, 1975, which''have been validly issued~by the City, pursuant
to and in full conformity with the Constitution and laws of the State of
Minnesota, including Minnesota Statutes, Chapter 475, as amended, and the Home
Rule Charter of_the-City, and is payable primarily from special assessments
against property specially benefited by the improvements financed by the bonds
l
115
Resolution No. 5852 -3-
refunded hereby, and ad valorem taxes for the City's share of the cost thereof,
but constitutes a general_obligatiori of the City and, to provide moneys for the
prompt and full payment of said principal and interest as the same become due,
the full faith and credit of the City is hereby irrevocably pledged, and the
City Council will levy ad valorem taxes, if required for such,purpase, which
taxes. may be levied on all of the taxable property Il the City without limitation
as to rate or amount.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and Iaws of the State of Minnesota acid the Horne
Rule Charter of the City _to be done, to happen and to be performed precedent
to and in the issuance of this bond have been done, have happened and have
been performed in re6u7_ar and due form, time G,nd manner as required by' law;
and .that this bond, together with all. other indebtedness of the City outstanding
on the date hereof and on the date of its actual issuance and delivery, does not
exceed any constitutional or statutory limitation thereon.
IN WITNESS` WHEREOF, the City of Richfield, Hennepin County; Minnesota.,
by its City Council has caused this bond to be executed by the-facsi.nriie
signature of the Mayor and the manual signature of the City Manager, and
sealed with a facsimile of the corporate seal of the City, and; the interest
coupons he-rcto attached to be executed and authenticated by the facsim~.Ie
signatures of said officers, all as of January 1, 1978.
(facsimi.le)
Mayor
City. Manager
(facsimile seal)
116
Resolution No. 5852 -4-
• (Form of Coupon) .
On the lst day bf August (February); 19. the City of Richfield;
Hennepin County, Minnesota, will pay to bearer, at the main office of the
Northwestern National .Bank of Minneapolis, the amount shown hereon for
interest then du.e cn its General Obligation Refunding-Bond of 1978, dated
3anuary 3~~ 1978, No.
(facsimilesignature).
Mayor
facsimile signature
City Manager
5. The City Clerk shall obtain a copy of the proposed Gpproving
legal cpinion•of Messrs. LeFevere Lefler, Pearson, U'Brien and Drawn of
Minneapolis, .Minnesota, which shall be complete except as to dating. thereof
and ~hall•cause said opinion to be printed on each bond, together with a
certificate to be signed by the facsimile .signature of the .Clerk in substan-
tially the following form:.
I hereby certify that the foregoing is a full,
true and correct copy of'the legal opinion executed
by the 'above named attorneys, except as to the
dating thereof, which opinion has been handed to me
for filing in my office prior to the time of bond
delivery.
.(facsimile signature)
City Clerk '
City of Richfield, Minnesota
The City Clerk is hereby authorized and directed to execute such certificate
in the name of the City, upon receipt of such opinion and to fi~.e the opinion
in his office.
' 6. The bonds shall be executed on behalf of the City by the facsimile
signature of the Mayor and the manual signature of the-City Manager, and the.
interest coupons shall" be executed and authenticated by the printed facsimile
signatures of the Mayor and City Manager, and the facsimile of the corporate
seal of the City may, but. need not be, printed thereon; provided, however,
that the signatures of both the Mayor and City Manager may be facsimile
signatures, duly authenticated by ', the manual signature of an officer of the
First National Bank of Minneapolis hereby designated authenticating agent
pursuant to Minnesota Statutes, Section 475.55; Subdivision 1, and,_ if-the
bonds are to be so executed and authenticated, the bond form set forth in
.paragraph 4 hereof shall be modified as follows:
117
Resolution No. 5852 -5- '
a) Substitute the following paragraph for the final paragraph
of the bond:
"IN WITNESS WHEREOF, the City of Richfield, Hennepin
County, Minnesota, by its City Council, has caused
this bond to be executed by the facsimile .signatures
of its Mayor and City Manager and with the facsimi e
of the corporate seal of the. city imprinted thereon
and the-interest coupons hereto attached to be ex-
ecuted and authenticated by the facsimile signatures
of said officers, and the manual signature of its
duly authorized Authenticating Agent on the reverse
side of this bond, alI as of January 1, 1978."
b) Add the following on the reverse side of the bond:
"This Bond is one of the Bonds of the series
designated herein issued pursuant to the reso-
lution authorizing its issuance and delivery."
First National:-Bank of"Minneapolis
As Authenticating Agent
By
Its (Authorized Officer)
The bonds ~ahe~Z fully executed, sha7.1 be delivered by the City Treasurer to
the purchaser thereof upon receipt of the purchase price, and the said
purchaser shall not be obligated to see to the proper application thereof.
7. The bonds issued hereunder shall be payable from the General..
Obligation Refunding Bonds of 1978 Fund hereby created, and the proceeds of
general taxes hereinafter levied and special assessments to be levied for
the improvements financed by the bonds hereby refunded are hereby pledged
to said fund. If any payment of principal or interest on said bonds shall
become due when there is not sufficient money in said fund to pay the same,
the Treasurer shall pay such principal or interest from the general-fund of.
the City, and such fund may be reimbursed for such advances out of proceeds
of assessments for said improvements when collected.
8. It is hereby determined that the. City has validly levied special
assessments for the said improvements in the. principal amount of at least
20% of the cost of said improvement. To pay the City's share of the cost
of such improvement, there is hereby levied a direct annual rrepealable ad
valorem tax levy against all taxable properties in said City,-which tax
levied shall be in the years and amounts as follows:. (year stated being
year of levy for collection the following year.)
11~
Resolution No .. .5852 ~ -6-
' YEAR LEVY ~, YEAR LEVY
1978 $216,900. 1987 $376,900
1979 230,1OQ 1988. 361,900
1980 243,300 198.9 346,300
1981 243;900 1990. 335,300
1982... 233-,400 1991 318,:500
1983 232,700 1992 301,200
1984 231,90.0- 1993 2.83,.800
1985 225.,900 1994 267,900
1986 374,700 1995 208,800
It is hereby determined that the estimated collection of special assessments
fo3° the. payment` ~.f_ s~~id bonds and ~ the foregoing ad valorem tax levies., =ail1
produce at least. five percent in excess of the amount .needed to meet, when
due, the p"rincipal_and interest payments on the bonds. The Clerk is directed
to file a certified copy of this resolution with the Finance Director of
Hennepin County and to obtain his certificate as required by Minnesota.
Statutes, Section 475.63.
9. It i.s hereby determined that the improvements to be financed by
the issuance of bonds hereunder will directly and indirectly benefit the
abutting property, and the City hereby covenants with .the holders from time
to time of said bonds as follows:
a) T11e City having caused the assessments f..or said
improvements tq be promptly levied will take all steps
necessary to assure prompt collection thereof.
b) In the event of any current or anticipated deficiency
in said special assessments, the City Council will levy.
ad valorem taxes in the amount of said current or antici-
pated deficiency.
c) The City has kept and will keep complete and accurate
books and records showing all receipts and disbursements
in connection with the improvement, the taxes. levied and
the assessments Levied therefor and other funds appro-
priated for their payment, and .all collections thereof
and disbursements therefrom, moneys on hand and balance
of unpaid assessments.
d) The City will cause its said books and. records to
be audited at least annually be qualified public account-
ants and will furnish copies of such audit reports to
any interested person upon request.
lly
Resolution No. 5$52. -7'
10.' The tax levy herein provided shall be`irrepealable until all
of said bonds are paid, provided that the City Clerk may annually, prior
to October 10th, certify_to the County Finance Director the amount available
in the sinking fund to pay principal and interest due during the ensuing
year, and the County. Finance Director shall thereupon reduce the levy
collectible during such year by the amount so certified.
11. The General Obligation Refunding Bonds of 1978, (hereinafter
referred to as "the Refunding Bonds") are issued to. refund in .advance of
maturity the outstanding principal amount of the $3,300,000 General Obli-
gation Improvement Bonds of 1974 of the: City dated May 1, 1974, of which
$3,060,000 in principal amount. is now outstanding and the outstanding
principal amount of the $4,604,000 General Obligation Improvement Bonds of_
the City; dated May 1, 1975, of which $4',b00,000 in principal amount is now
outstanding (hereinafter collectively referred to as the "Refunded Bonds").
It. is hereby found and determined that such refunding. sha7.I result in a
reduction of interest cost to the City on the Refunded Bonds as follows:
Date of Net Effective Interest Net Effective Interest
Refunded-Bonds Rate: Refunded Bonds Rate: Refunding Bonds
May 1;....1974 5.7290% 5.0581%
May 1, 1975 6.5604% 5.0581%
ar~d that. such reductior_ in interest, after the inclusion of all expenses of
the r~functit?g in. the computation of tre effective interest rate on the. Re-
funding Bonds, is adequate to authorize the issuance of the Refunding Bonds
as provided by .Minnesota-Statutes,- Section 475.67, Subdivision 12.
12. As of the date of delivery of and payment for the Refunding
Bonds, the proceeds of the sale of L-he Refunding Bonds, together with
other funds as shall be necessary to pay the principal of and the interest
on the Refunded Bonds to their maturity, or the date on which they are
called for redemption,. whichever date is earlier, are hereby pledged and
appropriated to and shall be deposited in escrow in account with the First
National. Bank of Minneapolis, Minnesota, a 5u;~table banking institution
within the State, whose deposits are insured by the Federal Deposit Insurance
Corporation and whose combined capital and .surplus is not less than $500,000.
Said bank is hereby designated escrow agent for such funds, a:~d the Cit_~
shall pay the reasonable charges of such bank for its services as such escrow
agent. Said proceeds and other funds shall be invested in securities ma-
turing or callable at the option of the holder on such dates and bearing
such interest at such rates as shall be required to prt5vide sufficient funds,.
together with any cash or other funds. retained in escrow, to pay when due
the interest to accrue on each Refunded. Bond at maturity or on the date on
which it is 'called. as herein provided, and to pay .the principal amount of
each such Refunded Bond at maturity or on the date on which it has been called.
for redemption; and the moneys in said escrow account shall be used solely
for the purposes herein set forth and for xio other purpose, except that if
any balance shall remain in the escrow account after all of the Refunding
Bonds and interest thereon paid pursuant. to this resolution, then such
balance shall be transferred'to the sinking fund established by paragraph
7 of this resolution.
120
Resolution No. 5852 ' -8=
13. The City .Council-herby find s-and determines that the proceeds
of the sale of the Refunding Bondsi, together with other funds-available -
and ,appropriated to the escrow account will be sufficient, together. with
the earnings on the investment.ofjsaid escrow account to pay when due, or
called for redemtion, all of the principal and interest on the Refunded
Bonds. ',
14. Securities purchased from the moneys in the .escrow account
shall be limited to securities set forth in Minnesota Statutes, Section
475.67, Subdivision $. Securities purchased from the escrow account shall
be purchased simultaneously with the delivery of the Refunding Bonds..
15. The Refunded Bonds shall be redeemed and prepaid in accordance
.with the terms a.izd cnndi ions set ',forth in the Notices of Call for. Redemp-
tion attached hereto as Exhibits "A" and,"B", which terms and conditions
are hereby approved and incorporated herein by reference. The City Clerk
is hereby authorized and directed to forthwith .publish said notices of
call in Commercial UJest, and to send copies of the notices of call to the
paying agent for the Refunded Bonds, provided that published. notice alone.
shall he effective.
16. Oil or prior to the delivery of the Refunding Bonds, the Mayor
and the City Manager are hereby authorized and directed to execute on behalf
of the City an Escrow Agreement establishing a single escrow account for the
Refunded Bonds with the First ATatonal'Bank of Minneapolis, in substantially
the forni on file with the Cty~Cl.erk. All essential ,terms and conditions
of- such. Escrow Agreement are hereby approved and adopted and made a part of
this resolution; and the City covenants that it will promptly enforce all
provisions thereof in the evenC'°of default thereunder by the escrow agent.'
17. TYIe officers of the City are hereby authorized and .directed
to prepare and furnish to the purchaser of.tha Refunding Bonds and to the
attorneys approving the same, certified copies of proceedings and records
of the City relati:n.g to s-aid Bonds and to the financial condition and
affairs of the City, and such other certificates, affidavits and Iran--
scripts as may be required to show the facts within their knowledge or as
shoran by the books-and records in !,their custody and under their control,
relating to instruments, including any heretofore furnished, shall be deemed
representations of the City as to ',the facts stated therein..
18. The Mayor, City Manager, and City Treasurer are hereby authorized
and directed to certify that they have examined the official statement or
prospectus prepared and circulated in connection with the issuance and sale
of the Refunding Bonds, and that to the best.of their knowledge and belief
1ZL
Resolution No,.5852 _9-
_ said-statement is a complete and accurate representation of the facts and
representations made therein as of the date of said official statement or
prospectus;. and as of the date of delivery ofthe Refunding Bonds as i't
relates to the City of Richfield.
Passed by the City Council of the-City of. Richfield; this 4th day
of January, 1978.
ATTEST:
/mod (~~~'~'
Thomas J. ran City Clerk