80-056
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EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF SHOREWOOD
HENNEPIN COUNTY, MINNESO'I'A
Pursuant to due call and notice thereof, a (regular) (s~
meeting of the Council of the City of Shorewood, Minnesota, was duly
held in the City Hall in the
City of Shorewood on:?l/~~____,
commc'ncinq at __7!30'clock p.m.
Au~t~____, 1980,
The following members were present:
members Haugen. Shaw. Naegele. Keeler
Mayor Frazier. Council-
and the following were absent:
None
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RESOLUTION AWARDING THE SALE OF
$60,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1980;
AND $140,000 GENERAL OBLIGATION WATER REVENUE BONDS
OF 1980; FIXING 'rIIEIR FORM AND SPECIFICATIONS:
DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING
FOR THEIR PAYMENT
WHEREAS, Minnesota Statutes, Section 429.091 authorizes the City
to issue general obligation bonds for local improvements paid for
primarily from special assessments, and
WHEREAS, Minnesota Statutes, Section 444.075 authorizes the City
to issue general obligation bonds for improvements to the municipal
waterworks payable from revenues of the system, and
WHEREAS, Minnesota Statutes, Section 475.60, Subd. 2(2) authorizes
the City to sell said obligations at private sale if they do not exceed
$200,000 in any three month period, and
WHEREAS, no bonds have been sold at private sale in the last
three months and the size of these two issues (improvement bonds and
water revenue bonds) are small and the costs of a financial advisor and
other expenses necessary to conduct Cl publ i c sa Ie ,Jre not deemed to be
in the public's interest;
THEREFORE, BE IT RESOLVED By the City Council of the City of
Shorewood, Minnesota, as follows:
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PART I - IMPROVEMENT BONDS
1.' 'It is hereby determined:
(a) That the assessable public improvements (the "Improve-
ments") have been made, duly ordered, or contracts let
for the construction thereof, by the City pursuant to
the provisions of Minnesota Statutes, Chapter 429;
Costs
construction and Engineering
Capitalized Interest (18 months)
Issuance Costs
Sub Total
Additional Interest Bopds
(Discount)
$50,824
7,200
800
$58,824
1,176
$60,000
(b) That it is necessary and expedient to the sound financial
management of the affairs of the City to issue $60,000
General Obligation Improvement Bonds of 1980, (the "Bonds")
to provide financing for the Improvements.
2. The City shall therefore issue and sell its General Obligation
Improvement Bonds of 1980, in the amount of $58,824. In order to provide
in part the additional interest required to market the Bonds at this time,
additional bonds shall be issued in the amount of $1,176.
3. The City is autr.orized by t.he provislons of Minnesota Statutes
Section 475.60, Subdivision 2(2), to negotiate the sale of the Bonds,
there having been no negotiated sale of the City's bonds within the
past 90 days.
4. The bid of Juran and Moody, Inc. to purchase $60,000 General
Obligation Improvement Bonds of 1980 of the City is hereby found and
determined to be a reasonable offer and shall be and is hereby accepted,
such bid being to purchase the Bonds at a price of $58,824 par plus
accrued interest to date of delivery, for Bonds bearing interest at the
rate of 7.50% per annum. The Mayor and City Clerk are directed to
enter into a purchase contract for the Bonds with Juran and Moody, Inc.
5. The City of Shorewood shall forthwith issue and sell its
General Obligation Improvement Bonds of 1980 in the principal amount of
$60,000 dated September 1, 1980, the Bonds being 12 in number and
numbered 1 to 12, both inclusive, in the denomination of $5,000 each,
bearing interest as above set forth, all interest payable March 1, 1981,
and semiannually thereafter on September 1 and March 1 in each year,
and which Bonds mature serially on September 1 in the years and amounts
as follows:
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YEAR
AMOUNT
1983
1984
1985
$20,000
20,000
20,000
The Bonds are issued without right of prior payment.
7. The Bonds and the 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
CITY OF SHOREWOOD
GENERAL OBLIGATION IMPROVEMENT BOND OF 1980
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KNOW ALL MEN BY THESE PRESENTS that the City of Shorewood,
Hennepin County, Minnesota, acknowledges itself to be indebted and,
for value received, hereby promises to pay to bearer out of its General
Obligation Improvement Bonds of 1980 Fund, without option of prior
payment, the sum of FIVE THOUSAND DOLLARS on the 1st day of September,
19 , and to pay interest thereon from the date hereof until the
principal amount is paid at the rate of seven and fifty hundredths
percent (7.50%) per annum, interest to maturity payable March 1, 1981,
and semiannually thereafter on the 1st day of September and the 1st day
of March in each year in accordance with and upon presentation and
surrender of the interest coupons hereto attached as they severally
become due. Both principal of and interest on this bond are payable
at American National Bank and Trust Company, in the City of St. Paul,
Minnesota, in any coin or currency of the United States of America
which on the date of payment is legal tender for public and private
debts.
This bond is one of an issue of bonds in the total principal
amount of $60,000, all of like date and tenor except as to maturity
and serial number, all issued by the City for the purpose of providing
money to defray the expenses incurred and to be incurred in making
local improvements, pursuant to and in full conformity with the Consti-
tution and Laws of the State of Minnesota, including Minnesota Statutes,
Chapter 429, and is payable primarily from special assessments against
property specially benefited thereby, but constitutes a general obli-
gation 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 purpose, which taxes
may be levied on all of the taxable property in the City without limi-
tation as to rate or amount.
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IT IS HEREBY CERTIFIED AND RECITED, That all acts, conditions,
and things required by the Constitution and Laws of the State of
Minnesota 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 regular and due form, time and manner as required
by law; and that this bond, together with all other indebtedness of
the City outstanding on the date hereof and the date of its actual
issuance and delivery does not exceed any constitutional or statutory
limitation thereon.
IN TESTIMONY WHEREOF, the City of Shorewood, Hennepin County,
Minnesota, by its City Council, has caused this bond to be executed
by the facsimile signature of the Mayor and the manual signature of
the City Clerk and the interest coupons hereto attached to be executed
and authenticated by the facsimile signatures of said officers, all as
of September 1, 1980.
(Facsimile)
Mayor
City Clerk
(Form of Coupon)
No.
$
On the 1st day of March (September), 19 ,the City of Shore-
wood, Hennepin County, Minnesota, will pay to bearer out of its
General Obligation Improvement Bonds of 1980 Fund at the American
National Bank and Trust Company, in the City of St. Paul, Minnesota,
the amount shown hereon for interest then due on its General Obligation
Improvement Bond of 1980, dated September 1, 1980, No.
(facsimile signature)
Mayor
(facsimile signature)
City Clerk
7. The City Clerk shall obtain a copy of the proposed approving
legal opinion of Messrs. WursL, Carroll and Pearsall, P.A. of
Minneapolis, Minnesota, which shall be complete except as to dating
thereof and shall cause said opinion to be printed on each Bond,
together with a certificate to be signed by the facsimile signature
of the City Clerk in substantially the following form:
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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 ill my office prior
to the time of bond delivery.
(facsimile signature)
City Clerk
City of Shorewood, Minnesota
The City Clerk is hereby authorized and directed to execute such cer-
tificate in the name of the City upon receipt of such opinion and to
file the opinion in the City offices.
8. The Bonds sh~ll be executed on behalf of the City by the
facsimile signature of the Mayor and manual signature of the City
Clerk, and the interest coupons shall be executed and authenticated
by the printed facsimile signatures of the Mayor and City Clerk. The
Bonds, when fully executed, shall 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. The Bonds may also be prepared and executed in such form as
may be requested by Purchaser and in accordance with law.
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9. The Bonds shall be payable from the General Obligation Improve-
ment Bonds of 1980 Fund hereby created, and the proceeds of general
taxes hereinafter levied and special assessments to be levied for the
improvements (the "Improvements") financed by the Bonds are hereby pledged
to said fund. If any payment of principal or interest on the 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 ad-
vances out of proceeds of assessments for the Improvements when collected.
10. It is hereby determined that the estimated collections of
special assessments for the payment of said bonds will produce at least
5% in excess of the amount needed to meet, when due, the principal and
interest payments on th~ Bonds and that no tax levy is needed at this
time. The City Clerk is directed to file a certified copy of this
resolution with the County Auditor of Hennepin County and to obtain the
certificate required by Minnesota Statutes, Section 475.63.
11. It is hereby determined that the Improvements to be financed
by the Bonds will directly and indirectly benefit the abutting property
and the City hereby covenants with the holders from time to time of the
Bonds as follows:
(a) The City will cause the assessments for the
Improvements to be promptly levied so that the
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first installment will be collectible not later
than 1982 if necessary and will take all steps
necessary to assure prompt collection. The City
Council shall cause all further actions and pro-
ceedings relative to the making and financing of
the Improvements financed hereby to be taken with
due diligence that are required for the construction
of each Improvement financed wholly or partly from
the proceeds of the Bonds, and for the final and
valid levy of special assessments and the appropri-
ation of any other funds needed to pay the obligations
and interest thereon when due.
(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 anticipated deficiency.
(c)
The City will keep complete and accurate books and
records showing all receipts and disbursements in
connection with the Improvements, the taxes levied
and the assessments levied therefor and other funds
appropriated for their payment, and all collections
thereof and disbursements therefrom, moneys on hand
and balance of unpaid assessments.
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(d) The City will cause its books and records to be
audited at least annually by qualified public account-
ants and will furnish copies of such audit reports to
any interested person upon request.
12. The tax levy herein provided shall be irrepealable until all
of the Bonds are paid, provided that the City Clerk annually, prior to
October 10th, certify to the County Auditor the amount available in the
sinking fund to pay principal and interest due during the ensuing year,
and the County Auditor shall thereupon reduce the levy collectible
during such year by the amount so certified.
PART II - WATER REVENUE BONDS
1. The City owns and operates a water plant and sewer system,
and the City must improve the water system to provide water flow and
pressure to protect the lives and property of people who reside or
attend school in the community, and the City Engineer has recommended
improvements and extensions of the water system as follows:
(See Exhibit A attached)
2. The council has determined that it is necessary to improve
the system and it is necessary that the City borrow $137,256 to pro-
vide for construction, engineering, fiscal and legal expenses and to
provide interest during construction.
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3.
Statutes,
with such
credit of
necessary
The City is authorized under the provisions of Minnesota
Section 444.075, to issue revenue bonds for such purpose,
bonds also supported by a pledge of the full faith and
the municipality and such bonds can be sold to provide
funds.
4. It is hereby determined that it is necessary and expedient
to finance improvements to the water system by the issuance of General
Obligation Water Revenue Bonds as authorized by Minnesota Statutes,
Chapter 475, and the Minnesota Statutes, Section 444.075. It is
further determined that the amount of $137,256 should be supplemented
by the issuance of additional bonds as authorized by Minnesota Statutes,
Section 475.56 and that the City shall sell and issue $140,000 of bonds,
$2,744 of said bonds being considered as additional interest.
5. The City has received a bid from Juran and Moody, Inc. to
purchase the bonds on the following terms and interest rates, all of
which are deemed fair and competitive in the current money market.
The City shall issue General Obligation Water Revenue Bonds in the
~~~~~J~~~~~~~~~~~ ~~0~~~1~fa~~4~~~~~~n~;il~e~~~~~a~~~~ ~~P~:~~:~b;; I
and March 1 in each year, which bonds shall be issued in amounts of
$5,000 and shall mature serially on September 1 in the years and amounts
as follows and shall bear interest at the rates shown below:
e Year Amount Rate Year Amount Rate
1983 $ 5,000 7.50% 1990 $10,000 8.00%
1984 5,000 7.50% 1991 10,000 8.25%
1985 5,000 7.50% 1992 10,000 8.25%
1986 10,000 7.75% 1993 10,000 8.50%
1987 10,000 7.75% 1994 15,000 8.50%
1988 10,000 7.75% 1995 15,000 8.50%
1989 10,000 8.00% 1996 15,000 8.50%
All bonds maturing after September 1, 1990, being subject to redemption
on said date and any interest payment date thereafter, in inverse
numerical order, at par and accrued interest.
6. The bonds to be issued hereunder, and the interest coupons to
be thereto attached, shall be in substantially the following form:
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No.
$5,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPlN
CITY OF SHOREWOOD
GENERAL OBLIGATION WATER REVENUE BOND OF 1980
KNOW ALL MEN BY THESE PRESENTS That the City of Shorewood,
Hennepin County, Minnesota, hereby acknowledges that it is obligated
and, for value received, promises to pay to bearer out of its General
Obligation Water Revenue Bond Sinking Fund the sum of FIVE THOUSAND
DOLLARS, on' the 1st day of September, 19___, and to pay interest
thereon out of said fund from the date hereof until the principal sum
is paid at the rate of
interest to maturity payable March l, 1981, and semiannually thereafter
on the 1st day of September and the 1st day of March in each year, in
accordance with and upon presentation and surrender of the interest
coupons hereto attached as they severally become due. Both principal
and interest are payable at the American National Bank and Trust
Company, in the City of St. Paul, Minnesota in any coin or currency of
the United States of America which at the time of payment is legal
tender for public and privDte debts.
e All bonds of this issue maturing after September 1, 1990, are
subject to redemption at the option of the City on said date and any
interest payment date thereafter, in inverse numerical order, at par
and accrued interest upon thirty days prior notice to be given in the
manner provided by law.
This bond is one of an lssue in the total principal amount of
$140,000, all of like date and tenor except as to serial number,
maturity, interest rate and call provision, which bonds have been
issued for the purpose of providing money to aid in financing water
improvements, or parts thereof, as authorized by Minnesota Statutes,
Section 444.075, and the principal thereof and interest thereon are
payable primarily from the net revenues of the water plant and
system of the City. The full faith and credit of the City is pledged
for its payment and the City Council has obligated itself to levy
taxes on all of the taxable property in the City in the event of any
deficiency, which taxes may be levied without limitation as to rate
or amount.
IT IS HEREBY CERTiFIED AND RECITED That in and by the authorizing
resolution, the City has covenanted and agreed that it will continue
to own and operate the water system free from competition by other like
utilities; that adequate insurance on said plant and system and suitable
fidelity bonds on employees will be carried; that proper and adequate
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books of account will be kept showing all receipts and disbursements
relating to the Water Fund, into which it will pay all of the gross
revenues from the water system; that it will also create and maintain
a General Obligation Water Revenue Bond Sinking Fund, into which it
will pay, out of the net revenues from the water system, a sum
sufficient to pay principal hereof and interest hereon when due, and
that it will provide, by ad valorem tax levies, for any deficiency
in net water revenues.
IT IS FURTHER CERTIFIED AND RECITED That all acts, conditions
and things required by the Constitution and laws of the State of
Minnesota 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 due form, time and manner as required by law.
IN WITNESS WHEREOF, the City of Shorewood, Hennepin County,
Minnesota, by its City Council, has caused this bond to be executed in
its behalf by the facsimile signature of the Mayor and the manual
signature of the City Clerk and has caused the interest coupons hereto
attached to be. executed and authenticated by the facsimile signatures
of said officers, all as of September 1, 1980.
____3facsimile signature)
Mayor
City Clerk
(Form of Coupon)
No.
$
On the lst day of March (September), 19 , the City of
Shorewood, Hennepin County, Minnesota, will pay to bearer, out
of its General Obligation Water Revenue Bond Sinking fund, at the
American National Bank and Trust Company in the City of St. Paul,
Minnesota, the amount shown hereon for interest then due o~ its
General Obligation Water Revenue Bond of 1980 dated September I, 1980.
(facsimile signature)
Mayor
(facsimile signature)
City Clerk
7. The bonds shall be printed under the direction of the City
Clerk and when so prepared shall be executed on behalf of the City
by the facsimile signature of the Mayor and the manual signature of
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the City Clerk and the interest coupons shall be executed and
authenticated by the printed facsimile signatures of such officers.
When th~ bonds have been so executed and authenticated, they shall
be delivered by the TreQsurer to the purchQser hereof, upon receipt
of the purchase price, and the purchaser shall not be obligated to
see to the proper application of the proceeds thereof.
8. The City shall continue to operate its Water Fund to which
shall be credited all gross revenues of the water system and out of
which shall be paid all normal and reasonable expenses of current
operations of the water system. Any balance therein shall be deemed
net revenues and shall he transferred, from time to time, to a
General Obligation Revenue Bond Sinking Fund hereby created, which
fund shall pe used to pay bonds issued hereunder and any other bonds
similarly authorized. There shall always be retained in such fund a
sufficient amount to pay principal of and interest on all bonds pay-
able from said fund, and the City Treasurer shall report any current
or anticipated deficiency in such fund to the Council.
9. The City Council covenants and agrees with the holders of
the bonds issued hereunder that so long as any of said bonds remain
outstanding and unpaid, it will keep and enforce the following cov-
enants and agreements:
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(a) The City will continue to maintain ilnd efficiently operate
the municipal water plant and system as a public utility
and convenience and will cause all revenues therefrom to
deposited in a bank account and credited to the Water Fund
as hereinabove provided, and will make no expenditures
from said account except for a duly authorized purpose
and in accordance with this resolution.
(b) The City will also maintain a separate account for the
the General Obligation Water Revenue Bond Sinking Fund and
will cause money to be credited to said account from time
to time, out of net revenues from the water plant and
system, in sums sufficient to pay principal of and interest
on all bonds issued hereunder when due.
(c) The City will keep and maintain proper and adequate books
of record and account separate from all other records of the
City in which will be complete and correct entries as to
all transactions relating to the water plant and system and
which shall be open to inspection and copying by any bond-
holder, his agent or attorney, at any reasonable time, and
it will furnish certified transcripts therefrom upon
request and upon payment of a reasonable fee therefor, and
said accounts shall be audited at least annually by a
qualified public accountant and statements of such audit
and report will be furnished to all bondholders upon request.
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(d) The City Council will cause all persons handling revenues
of the water plant and system to be bonded in reasonable
amounts for the protection of the City and the bondholders
and will cause the funds collected on account of the
operations of the water plant and system to be deposited
in a bank or banks whose deposits are guaranteed under the
Federal Deposit Insurance Law.
(e) The council will keep the water plant and system insured
at all times against loss by fire, tornado and other risks
customarily jnsured against, with an insurer or insurers
in good standing, in such amounts as are customary for
like plants, to protect the holders, from time to time, of
the bonds issued hereunder and the City from any loss due
to any such casualty and will apply the proceeds of such
insurance to make good any such loss.
(f) The City and each and all of its officers will punctually
perform all duties with reference to the water plant and
the system as required by the laws of the State of Minnesota.
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(g) The City will impose and collect charges of the nature
authorized by Minnesota Statutes, Section 444.075, at the
times and in the amounts required to produce net revenues
adequate to pay all principal and interest when due on the
said bonds and to create and maintain such reserves securing
said payments as may be provided in this authorizing reso-
lution.
(h) The City Council will levy general ad valorem taxes on all
taxable property in the City, when required to meet any
deficiency in net revenues or from State funds.
10. The bid of Juran and Moody, Inc. to purchase $140,000
General Obligation Water Revenue Bonds of 1980 of the City as heretofore
described is hereby found and determined to be the best bid received
and shall be and is hereby accepted. From the bond proceeds $119,606
shall be credited to the construction account and the amount paid by
the purchaser in excess of said amount shall be credited to the bond
sinking fund to pay in part interest falling due in 1981 and 1982.
11. The Council hereby finds and determines that the net
revenues from the water system pledged for the retirement of the bonds
hereby issued together with other revenues available for said purposes
and other taxes so pledged are adequate to provide at least 105% of
the principal and interest on such bonds as they become due and that no
tax levy is needed at this time.
12. The City Clerk is hereby directed to cause a certified copy
of this resolution to be filed in the office of the County Auditor of
Hennepin County, Minnesota, and to obtain from him the certificate
e required by Minnesota Statutes, Section 475.63.
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GENERAL PROVISIONS - BOTH ISSUES
A. The City Clerk is hereby authorized and directed to prepare
and furnish to the purchaser of the Bonds, and the attorneys approving
the issue, certified copies of all proceedings and records of the
City relating to the issue of said bonds OR to the right, power and
authority of the City to issue said bonds, and such certified copies
and certificates shall be deemed representations of the City as to
all facts stated therein.
B. It is hereby determined that no official statement or
prospectus has been prepared or circulated by the City in connection
with the sale of the Bonds and that the Purchaser has made its own
investigation concerning the City as set forth in its investment
letter of even date herewith, receipt of which is hereby acknowledged.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Naegele and upon vote
being taken thereon, the following voted in favor thereof:
Mayor Frazier. Councilmenibers Haugen, Shaw, Naegele, Keeler
and the following voted against:
None
whereupon said resolution was declared duly passed and adopted.
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4It STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SSe
CITY OF SHOREWOOD )
I, the undersigned, being the duly qualified and acting City
Clerk of the City of Shorewood, Minnesota do hereby certify that I
have carefully compared the attached and foregoing extract of minutes
of a regular meeting of the City Council
o 80
{Ji,(rLt: ,;l,S" ___, 19., with the
ooffice and the same is a full, true and complete transcript therefrom
held on 7l;o-~
(j
original thereof on
file in my
insofar as the same relates to the issuance and sale of $140,000
General Obligation Water Revenue Bonds of 1980 of the City.
WITNESS My hand as City Clerk and the corporate seal of the City
. this ;IS day of ft:t. ,1980 .
~JJOr~~
. Clerk u1
City of Shorewood, Minnesota
(SEAL)
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C;' 6 -g~
CITY OF SHOREWOOD
REGULAR COUNCIL MEETING
AUGUST 25, 1980
COlJNCl L CHAMBERS
5755 COUNTRY CLUB ROAD
7:30 p.M.
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M I NUT E S
CALL TO ORDER
The regular meet~ng of the Shorewood City Council was called by
Mayor Frazier at 7:30 P.M. in the Council Chambers of the City Hall.
PLEDGE OF ALLEGIANCE AND PRAYER
Meeting opened with the Pledge of Allegiance and Prayer.
ROLL CALL
Council members present were Mayor Frazier, Keeler, Naegele, Haugen,
and Shaw. Staff present were Engineer Lepak, Attorney Kelly, and
Clerk Wi 1 tsey. ._..._........ ~.)...""M~'
~";3;;,....;""~"";,',c...,...,;;'$---~""'''~"....'''".,..",.,,''',';;"'j,..;.,;;,,q~"';:l,":'-~'C~.""''''l'
BONDING PROPOSAL - JURAN AND MOODY PROJECT - 79 WW-l WELL AND WATER
IMPROVEMENTS
Steven J. Mattson, Vice President of Juran and Moody, presented an
agreement to purc~ase $200,000 general obligation bonds in accordance
with a proposal submitted - dated August 25, 1980 - and further
ex lained the(de;;~~t~opos~. RESOLUTION NO. 56-80
MOVED BY KEELE~:SE-~~DBY.NAEGELE, TO ADOPT A RESOLUTION TO ACCEPT
THE PROPOSAL ~....~ 1\.~!?._ MOOD~AND TO AUTHORIZE THE MAYOR AND CLERK
TO EXECUTE THE AGREEMENT AND TO SIGN THE BONDS. Motion carried 0
unanimously.? C"~,~,i~----:~ g_j5-8
"AY,,=,,_,,,,,,''''''_,..,~ c ,..;.~~,;~~ '~...'-,'..",.""",...','",."ri.',~,"" ,.,.:::.~... .... _'" _.,,~c:.''''':..,
OF MINUTES
Moved by Haug6n, seconded by Naegele, to approve the minutes of
August 11, as corrected (vote on BMX track agreement was 4 ayes and
Shaw abstained - and elimination of "late" under Roll Call) and the
minutes of August 18th as submitted. Motion carried unanimously.
McNULTY - AMESBURY WEST
Don Hess and Jim McNulty appeared before the Council and requested
the Council to approve a concept plan with a top number of units
that would be acceptable to the Council. They explained that they
need the flexibility and that is why they are asking for the top
number of units so they can build according to the market.
Haug~n confirmed that the planning commission's latest number of
units was 30. It was noted that with a straight single-family
subdivision they would be allowed 26 units and Council felt that
was not good development for that piece of property.
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114 EAST SEVENTH STREET
RECEIVEn '
AUG 1419.80
,
.
JURAN Be MOODY, INC.
MUNICIPAL BONDS EXCLUSIVELY
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SAINT PAUL, OTA55101
~..,."C""E"."P" HONE ,,,,,,,-, 00
August 13, 1980
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DispOS.
Mrs. Elsa Wiltsey
City Clerk
City Hall
5755 Country Club Road
Shorewood, MN 55331
RE: GENERAL OBLIGATION WATER IMPROVEMENT BONDS OF 1980
CITV OF SHOREWOOD, MINNESOTA
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Dear Mrs. Wiltsey:
Over the last couple of weeks Bob Sander and myself have met with
your attorneys in trying ot develop a financing program for your
proposed water improvements within the city. The preliminary cost
estimates that we were given for improvements to Wild Duck are
approximately $216,000 of which it is our understanding that $52,000
($2,000 per unit X 26 units) will be assessed against benefited
property. It is estimated that the remaining cost of $164,000 will
be paid by user charges.
From preliminary information supplied by the city engineer and city
attorney, it has been estimated that the city could serve immediately
a minimum of 190 units to a maximum of 260 units. Using an estimated
average quarterly water bill of $25 per unit and assuming that the
city can net out an additional $5,500 per year from present city
users on other city systems, we feel that the bonds will be
self-liquidating and, that there will also be enough money per year to
pay the estimated operation and maintenance of the system. It would
be our recommendation that the city issue bonds in an amount of
$200,000 which can be negotiated directly by our firm without having
to go through the time and added expense of a public issuance. The
city would then have a commitment for the financing of the well
project in Wild Duck which will be bid August 14. The city will also
have enough money to virtually complete the construction of the water
pipe from the city park to the proposed new users. We would propose
that these bonds mature over a 15 year period with the maturity
schedule weighted slightly with more maturities past the year 1990.
This will allow future users to help pay the cost of the trunk
facility from the park to the subdivision. .
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e
. JURAN
e
e
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..
& MOODY. INC.
Mrs. Elsa Wiltsey
August 13, 1980
Page 2
I might point out that we have not considered in our calculations any
potential water users form either Near Mountain or from any
subsidized housing projects. As new users are added to the system,
more and more security will be added to the water bonds.
It is our understanding that the city is also considering
improvements in the Boulder Bridge area which will be 100% assessed
against benefited property. We would anticipate that because this
financing will be over the statutory limit of $200,000 per
negotiation, we would sell general obligation bonds at public sale
once we either have firm engineering estimates or actual construction
bids.
Juran & Moody, Inc., will offer to purchase general obligation bonds
in an amount not to exceed $200,000 at the wish of the council. All
we need is one or two days notice to put together all the necessary
bond transcript items. If you have any questions or if I can be of
any further service to you, please do not hesitate to call.
Very truly yours,
JU R!\ N... ... & .MO ?P_Y/~J ./. ].N.. C.:
( .' ...:;7.
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, Steven~. Mattson
vicypresident
SJM/eh
cc: Frank Kelly
John Sanders
Jim Norton
Steven Frazier