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12-30-1959 VCM Extract VILLAGE OF ELK RIVER COUNCIL MEETING December 30, 1959 Extract of Minutes of Meeting of Village Council Village of Elk River, Sherburne County, Minnesota Held December 30, 1959 A Special meeting of the Village Council of the Village of Elk River, Sherburne County, Minnesota, th was duly held at the Municipal Building in said Village on the 30 day of December, 1959, at 8:00 o’clock P.M. The following members were present: H.L. Johnson, Mayor; R.O. Kemper, Trustee; August Meyer, Trustee and the following were absent: G.R. Bergerson, Trustee The Village Clerk presented affidavits of publication in the Sherburne County Star News and in Commercial West of the notice of sale of the $85,000 negotiable coupon Municipal Building Revenue Bonds of the Village for which bids were to be received at this meeting, in accordance with a resolution adopted by the Village Council on December 9, 1959. Said affidavits were examined and found to comply with the provisions of Minnesota Statutes 1957, Chapter 45, and were approved and ordered placed on file. The Village Clerk announced that two sealed bids had been received, which were thereupon opened and red, and the highest and best bid of each bidder was found to be as follows: Name of Bidder Interest Rates Premium Juran & Moody, Inc & Associates 4.99 None Harold E. Wood & Co. 4.95223 None After consideration of the foregoing bids, Member Briggs introduced the following resolution and moved its adoption: RESOLUTION AWARDING SALE OF $85,000 MUNICIPAL BUILDING REVENUE BONDS BE IT RESOLVED by the Village Council of the Village of Elk River, Sherburne County, Minnesota, that the bid of Mannheimer-Egan, Inc. and Harold E. Wood & Co. , St. Paul, Minnesota, to purchase $85,000 Municipal Building Revenue Bonds of the Village to be dated January 1, 1960, at a price of $85,000, the bonds of said issue maturing in the years shown below to bear interest at the respective rates per annum shown opposite the years of maturity: Maturity Years Interest Rates 1962 through 1967 4.70% 1968 through 1975 4.80% Plus additional interest of 1.2% per annum on all bonds for the period 3-1-60 to be evidenced by extra coupons as follows: 85 coupons of $4.00 each due 7-1-60 85 coupons of $6.00 each due 1-1-61 85 coupons of $6.00 each due 7-1-61 Principal and interest to be payable at a bank to be named later in ___, ___, and to be issued in accordance with the notice of bond sale heretofore duly published, is hereby found and declared to be the highest and best bid received pursuant to advertised notice of sale of said bonds, and is hereby accepted. The Village Clerk is directed to retain the good faith check of said successful bidder and to return all other good faith checks forthwith. /s/ H.L. Johnson Mayor Attest: /s/ H.A. Briggs Village Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Kemper and upon vote being taken thereon, the following voted in favor thereof: R.G. Kemper, H.A. Briggs, August Meyer And the following voted against the same: None Whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the Clerk. Member Kemper thereupon introduced Ordinance No. 57 and moved its adoption: ORDINANCE NO 57 AN ORDINANCE AMENDING ORDINANCE NO. 39 OF THE VILLAGE OF ELK RIVER, AS AMENDED, WITH RESPECT TO THE MAINTENANCE OF THE LIQUOR DISPENSARY FUND THE COUNCIL OF THE VILLAGE OF ELK RIVER DO ORDAIN: Section 1. Section 3 of Ordinance No. 39 of the Village of Elk River, as amended is hereby amended to read as follows: “(a) A Municipal Liquor Dispensary Fund is hereby created, in which all revenues received from the operation of the dispensary shall be deposited and from which all operating expenses shall be paid. Surpluses accumulating in the Dispensary Fund may be transferred to the general fund or any other appropriate fund of the Village by resolution of the Council and extended for any municipal purpose; provided, that the Village Council may by resolution heretofore or hereafter adopted authorize the issuance of liquor dispensary revenue certificates or bonds payable from the net revenues of said dispensary, for the purpose of providing moneys for construction and improvement of buildings and other capital items, and provision of merchandise, equipment, furnishings and working capital necessary for said dispensary, upon such terms as the Council may deem necessary and expedient, and may pledge net revenues of said dispensary, after payment of reasonable and current costs of operation and maintenance and a reasonable stock of merchandise for resale, to the payment of such certificated or bonds and interest thereon; and provided further, that the Village Council may make or continue any pledge of not revenues of said dispensary contained in a resolution or resolutions of the Council heretofore or hereafter adopted, to the payment of bonds of the Village issued for any purpose authorized by law, for the payment of which the Village is authorized to pledge such revenues; and provided further, that the Council may in and by such resolution or resolutions make on behalf of the Village all such covenants as may be reasonably required for the security of the holders of such certificates or bonds, and no moneys in the Dispensary Fund shall be transferred or expended except as provided in such resolutions, while any of said certificates or bonds shall be outstanding and unpaid. “(b) The procedure prescribed by law shall be followed in the handling of municipal liquor dispensary funds as for receipts and disbursements of Village funds generally. “(c) The Council shall provide annual operating statements to be prepared and an independent audit of bonds of the dispensary to be made by a competent public accountant within ninety (90) days after the close of each fiscal year.” Section 2. Thie ordinance shall take effect and be in force from and after its passage and publication in accordance with law. th Passed by the Village Council this 30 day of December, 1959. /s/ H.L. Johnson Mayor Attest: /s/ H.A. Briggs Village Clerk The motion for the adoption of Ordinance No. 57 was duly seconded by Member Meyer, and upon vote being taken thereon, the following voted in favor thereof: R.G. Kemper, H.A. Briggs, August Meyer And the following voted against the same: None Whereupon said ordinance was declared duly passed and adopted, and was signed by the Mayor, which was attested by the Clerk, and the Clerk was authorized and directed to cause said ordinance to be published forthwith in the official newspaper. Member Kemper then introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE OF REVENUE BONDS TO PROVIDE BIULDING FOR MUNICIPAL LIQUOR DISPENSARY BE IT RESOLVED by the Council of the Village of Elk River, Minnesota, as follows: 1. This Council has investigated the facts necessary to determine and does hereby find and declare; 1.1 That the Village has by Ordinance No. 39, adopted December 16, 1940, duly authorized the establishment and operation of a municipal liquor dispensary for the on and off-sale of intoxicating liquor and other merchandise in accordance with the provisions of Chapter 340, Minnesota Statutes, and that it is deemed necessary and expedient that the revenue bonds herein authorized be issued and sold for the propose of financing the remodeling and furnishing of a new dispensary for the on and off-sale of intoxicating liquor and other merchandise. 1.2 That the revenues reasonably anticipated to be received from the operation of said dispensary during the period for which such bonds will be outstanding will be more than sufficient to pay all costs of the operation and maintenance thereof and to provide excess or net revenues adequate to meet all payments of principal and interest on such bonds as the same shall fall due, and there are no outstanding obligations payable from or constituting a lien or charge upon said net revenues, and it is in the best interests of the Village that said bonds be made payable solely from such net revenues. 1.3 That Mannheimer-Egan, Inc. and Harold E. Wood & Co. of St. Paul, Minnesota, have been awarded the sale of the bonds herein authorized at par plus interest to accrue to the date of delivery thereof, bearing interest and subject to further terms and conditions as herein set forth. 2. For the proper administration of the moneys so to be borrowed and to make adequate and specific security to the purchaser of said bonds and to the holders thereof from time to time, the Village shall, at least until said bonds and interest thereon are fully paid, maintain the Liquor Dispensary Fund created by said Ordinance No. 39, and amended by Ordinance No. 59, and establish and maintain financial records of the receipts and disbursements relating to said dispensary in accordance with this resolution. In such records there shall be established and maintained subdivisions of said Liquor Dispensary Fund for the purposes and in the amounts as follows: 2.1 There shall be a “Capital Expenditures Account”, into which shall be paid all of the moneys borrowed hereunder, with the exception of accrued interest paid by the purchaser at the time of delivery of said bonds, which shall be paid into the Reserve Account as provided below. There shall be charged to and paid from said account all, but only, the items of capital expenditure to be made for the acquisition of said building and the equipment and furnishing of the same, provided that upon completion of said payment any money remaining in said Capital Expenditures Account shall be transferred to the Operation and Maintenance Account described below. 2.2 There shall also be an “Operation and Maintenance Account”, to which there shall be charged and from which there shall be paid all, but only the items of disbursement which, by sound accounting practices, constitute normal, reasonable and current costs of operation and maintenance of the dispensary. Such costs shall include compensation of the liquor store manager and other necessary employees, insurance, bond paying agent’s charges, utility services and costs of maintenance of a reasonable stock of merchandise. All moneys received by the Village from its ownership and operation of the dispensary, including all receipts from the sale of intoxicating liquor and from the sale of other merchandise and services on the dispensary premises, and from the rental of any portion of the liquor dispensary building, and from the sale of equipment or furnishings purchased for the dispensary and not needed to be retained, are herein called “gross revenues” and shall be paid into the Liquor Dispensary Fund and apportioned at least monthly to the several accounts therein starting January 1, 1960. Upon each such apportionment there shall be credited to the Operation and Maintenance Account such portion of the gross revenues as shall be needed, together with the balance then on hand therein, to pay all claims then due and to become due within the succeeding month in respect of expenses of operation and maintenance as above defined, and to maintain a reasonable reserve for operation and maintenance emergencies. All gross revenues from time to time received in excess of the amounts hereby appropriated to the Operation and Maintenance Account are herein termed “net revenues”. 2.3 There shall also be a “Revenue Bond Account”, to which there shall be credited each month out of said net revenues an amount equal to at least one-twelfth of the sum of the principal and interest payable within the next twelve months on the bonds herein authorized, and on any additional bonds issued in accordance with subsection 2.6 and 2.7 hereof. Moneys in said account shall be used only for the payment of such principal and interest when due; provided, however, that if in the month of December of each year there are moneys on hand in said st account in excess of principal and interest falling due on the next 1 day of January, such excess moneys shall be forthwith transferred to the Reserve Account hereinafter described and used for the purposes therein stated, or in the event that the required balance has been accumulated and remains in said Reserve Account, such excess moneys shall be forthwith transferred to the Surplus Net Revenue Account hereinafter described and used for the purposes therein stated. 2.4 There shall also be a “Reserve Account”, to which there shall be credited, out of the price paid for said bonds by the purchaser, all accrued interest paid by the purchaser on the entire bond issue. There shall also be credited to said account each month, from the remaining net revenues not paid into the Revenue Bond Account the sum of $500, until there shall be accumulated a balance in amount not less than the largest aggregate amount of principal and interest coming due on the bonds issued hereunder in any year of the term of said bonds. Moneys in said account shall be used only for the payment of principal and interest due on said bonds and only when moneys in the Revenue Account are insufficient therefor, and whenever so used shall be restored by the transfer of additional net revenues to the foregoing amount. 2.5 There shall also be a “Surplus Net Revenue Account”, to which these shall be credited as received all net revenues in excess of those appropriated to the other accounts of the Liquor Dispensary Fund. Moneys in said account shall be available and shall be used whenever required to restore any deficiency in the payments required to be made from the Revenue Bond Account and the balance requirement to be maintained in the Reserve Account. Moneys in the Surplus Net Revenue Account not required to be paid into the Revenue Account may be applied to the payment or prepayment of any bonds of the Village, or may be used to repair or improve or buy stock or equipment for the dispensary, or may be transferred to any other funds of the Village and used for any other proper corporate purpose. 2.6 The Village reserves the right and privilege of issuing and selling refunding bonds if and to the extent needed to refund maturing bonds of the issue herein authorized, if moneys in the Liquor Dispensary Fund are at any time insufficient for the payment in full of the principal and interest due thereon, which refunding bonds shall be payable from the Revenue Bond Account on a parity with this issue as to interest, but shall mature subsequent to all of the bonds herein authorized which are then outstanding. 2.7 Except as authorized by subsection 2.6 hereof, the Village will not issue any additional obligations payable from the net revenues of said dispensary or constituting a lien or charge thereon on a parity with the lien and charge in favor of the bonds herein authorized, unless the average amount of said net revenues, as defined in subsection 2.2 hereof, for the 2 fiscal years immediately preceding the issuance of such additional obligations shall in each of such fiscal years have been at least 1 ½ times the average annual principal and interest payments to fall due during the then remaining term of the bonds herein authorized, on all obligations then payable or to be made payable from said net revenues, including the additional obligations so to be issued. 2.8 The Village also reserves the right and privilege of issuing bonds payable from surplus net revenues of the liquor dispensary, without regard to the limitations set forth in subsections 2.6 and 2.7 hereof, provided that such bonds are expressly made subject and junior to the lien and charge on the net revenues in favor of the bonds herein authorized, and are payable solely from moneys from time to time accruing to the Surplus Net Revenue Account, subject to the prior lien and charge on such moneys in favor of the bonds herein authorized, as set forth in subsection 2.5 above. 2.9 Moneys in the Reserve Account and the Surplus Net Revenue Account may be invested as directed by the Council, but only in general obligations of the United States government. 3. In anticipation of the receipt of the net revenues appropriated and pledged as aforesaid to the Revenue Bond Account and Reserve Account, the Village shall issue, sell and deliver to the purchaser aforementioned its negotiable coupon Municipal Building Revenue Bonds in the aggregate principal amount of $85,000. Said bonds shall be 85 in number and numbered from 1 to 85, inclusive, each in the denomination of $1,000, and all dated as of January 1, 1960. Said bonds shall mature on January 1 in the years and amounts shown below, the bonds of each maturity to bear interest at the rate per annum shown opposite each respective year of maturity: Year Amount Interest Rate 1962 $5,000 1963 5,000 1964 5,000 1965 5,000 1966 5,000 1967 5,000 1968 5,000 1969 5,000 1970 5,000 1971 5,000 1972 5,000 1973 10,000 1974 10,000 1975 10,000 Interest shall be payable on January 1, 1961, and semiannually thereafter on July 1 and January 1 of each year. Bonds numbered 1 through 45 shall be payable on their stated maturity dates without option of prior payment, but those numbered 46 through 85 (maturing in the years 1971 through 1975) shall be each subject to redemption and prepayment at the option of the Village on January 1, 1970, and any interest payment date thereafter, in inverse order of their serial numbers, and at a price of par plus interest to accrue to the date specified for redemption thereof, plus a premium of $40 for each bond redeemed, and the bonds numbered 66 through 85 (maturing in the years 1974 and 1975) shall also be redeemable on January 1, 1964, and any interest payment date thereafter, at a price of par and accrued interest plus a premium of $50 for each bond redeemed prior to January 1, 1970. Not less than thirty days prior to the date specified for redemption of any of said bonds the Village Treasurer shall mail notice of the call thereof to the holder, if known, and to the bank at which principal and interest are then payable, and said Treasurer shall maintain a register of the names and addresses of the holders of prepayable bonds of said issue, so far as such information is made available to him. The principal of and interest on said bonds shall be payable at a bank to be designated later and the Village hereby agrees to pay the reasonable and customary charges of said paying agent and to account for the same as a cost of the operation of said dispensary. 4. Said bonds and the interest coupons appurtenant thereto shall be in substantially the following form: H.A. Briggs Village Clerk