02-02-1948 VCM Extract of Minutes

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(e) That the village shall not create any additional or other liens or charges against the electric plant and system, or issue additional obligations payable from the revenues thereof, except as in said resolution provided, unless such liens, charges or obligations are expressly made a junior and inferior claim and charge on said revenues; and WHEREAS, the Village has duly performed all of the covenants in said resolution contained, and there is now in the Reserve Account of said Electric Revenue Fund an amount in excess of the principal and interest requirements on said Electric Light and Power Plant and System Revenue Certificates during the period of twelve months from the present date; and WHEREAS, the revenues of said electric plant and system are more than sufficient to pay all expenses of operation, repairs and maintenance and the principal and interest on all outstanding obligations issued for the purchase or improvement of said plant and system, and also to pay the principal of and interest on the additional obligations herein authorize, when and as such principal and interest become due; and WHEREAS, the village has used and applied the proceeds of sale of said revenue certificates to the payment of the cost of the improvement authorized by said resolution of January 19, 1947, and it has been found and determined that the total cost of completion of said improvement in such manner as to provide adequate and satisfactory electric service will be approximately $250,000, which cost exceeds the original estimate thereof by $25,000, due to increases in cost of materials and additional work and materials required to repair the tunnel connecting the hydro and diesel generating facilities and to erect lines to serve additional consumers of electricity; and WHEREAS, it is necessary for the village to provide for the payment of said additional costs by the issuance of the additional obligations herein authorized, as a lien and charge on the revenues of said plant and system junior to the lien of the revenue certificates heretofore issued and sold, NOW, THEREFORE, BE IT RESOLVED by the Village Council of the Village of Elk River, as follows: 1. It is hereby found, determined and declared that each and all of the statements contained in the preamble hereof are true and correct, and said preamble is hereby made a part hereof. 2. The village shall forthwith issue its negotiable coupon Electric Light and Power Plant and System Revenue Certificates, Series of 1948, dated February 1, 1948, in the aggregate principal amount of $25,000. Said certificates shall be 25 in number and numbered from 1 to 25, inclusive, each in the denomination of $1000, bearing interest at the rate of 3 ¼% per annum, payable semiannually on February 1 and August 1 of each year, and maturing serially on February 1 in the amount of $2000 in each of the years 1952 through 1956 and $5000 in each of the years 1957 through 1959. Certificates numbered 1 through 15 shall be payable at their respective stated maturity dates without option of prior payment. Certificates numbered 16 through 25 shall be each subject to redemption and prepayment at par and accrued interest, in inverse order of serial numbers, on February 1, 1957 and any interest payment date thereafter, upon notice of call mailed 30 days prior to the date specified for redemption, to the bank at which principal and interest are then payable and to the holder, if known, of each bond so to be redeemed. The village clerk shall maintain a register showing the names, addresses and certificate numbers of holders of redeemable certificates of said issue, so far as such information is available. Both principal of and interest on said