Tab 12 Affidavit of Pub of Notice of Sale of BondsSTATE OF MONTANA
FLATHEAD COUNTY
AFFIDAVIT OF PUBLICATION
KAI WILLDEN9 BEING DULY SWORN, DEPOSES AND SAYS: THAT SHE
IS CLERK OF THE DAILY INTER LAKE, A DAILY NEWSPAPER OF
GENERAL CIRCULATION, PRINTED AND PUBLISHED IN THE CITY OF
KALISPELL, IN THE COUNTY OF FLATHEAD, STATE OF MONTANA,
AND THAT THE #8399 NOTICE OF BOND A COPY OF WHICH IS
HERETO ATTACHED, WAS PRINTED AND PUBLISHED IN THE REGULAR
AND ENTIRE ISSUE OF SAID PAPER, AND IN EACH AND EVERY COPY
THEREOF ON THE DATES OF OCTOBER 3, 10, 1995e
THE RATE CHARGED FOR THE ABOVE LEGAL PRINTING DOES NOT
EXCEED THE MINIMUM GOING RATE CHARGED TO ANY OTHER
ADVERTISER FOR THE SAME PUBLICATION, SET IN THE SAME SIZE
TYPE AND PUBLISHED FOR THE SAME NUMBER OF INSERTIONS.
Subscribed and sworn to beforqine this AD OCTOBER 10, 1995.
1
tary ' c mm W * n
Burt
Iss
N
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NO iW A
for the State of Montana
:alispell
ion expires 5/30/99
No. 93"
EXHIBIT A
NOTICE OF BOND
SALE
$209,000 Special Im-
provement District No. 342
Bonds
CITY OF KALISPELL,
MONTANA
NOTICE IS HEREBY
GIVEN that the City of Ka-
lispell, Montana (the
"City"), will sell to the high-
est and best bidder for cash,
as evidenced by sealed
bids, the above -described
Bonds drawn against the
-funds of Special Improve-
ment District No. 342.
Sealed bids for the pur-
chase of the Bonds will be
received until 11:00 a.m.,
Mountain Time, on Monday,
the 16th day of October,
1995, at the office of the
Finance Director, City Hall,
312 - 1st Avenue East, Ka-
'lispeil, Montana. At 11:30
'a.m., Mountain Time on that
+day of the bids will be
opened and tabulated in the
City Council Chambers,
City Hail, 312 - 1st Avenue
East, Kalispell, Montana,
and the City Council will
consider the bids and award
the sale of the Bonds at 7:00
p.m. on the same day.
Purpose and Security
The Bonds will be issued
for the purpose of financing
the cost of construction of
certain local improvements
(the 'Improvements") with-
in or for the benefit of Spe-
cial Improvement District
No. 342 (the "District"), in
accordance with the provi-
sions of Montana Code An-
notated, Title 7, Chapter 12,
Parts 41 and 42, as amend-
ed (the "Act"). The Bonds
will be special, limited obli-
gations of the City and do '
not constitute general obli-
gations of the City.
The Bonds are payable
primarily from the collec-
tion of a special tax or as-
sessment which is a lien
against the assessable real
property within the District
benefited by the Improve-
ments. The special assess-
ments are payable in equal,
semiannual installments of
principal over a 1 S-year
term, with unpaid install-
ments of the special as-
sessments bearing interest
at a rate equal, in a fiscal
year, to the average rate of
interest borne by the then
outstanding Bonds, plus
one-half of one percent per
annum.
The City will establish in
the District Fund, and fund
with $10,450.00 from the
proceeds of Bonds, a Dis-
trict Reserve Account (the
"Reserve Account"), from
which monies are to be ap-
plied to.pay principal of and
interest on the Bonds in the
event collections of special
assessments are insuffi-
cient therefor. The City has
no obligation to replenish
the Reserve Account if
funds are withdrawn there-
from.
The Bonds are furthe
secured by the Special im-
provement District Revolv-
ing Fund of the City (the
"Revolving Fund"). The
City will agree to make a
loan from the Revolving
Fund to the District's fund to
make good any deficiency
then existing in the principal
and interest accounts there-
in, after depletion of the Re-
serve Account, and to pro-
vide funds for the Revolving
Fund by levying a tax or
making a loan from the
City's general fund to the
extent authorized by the Act.
Date and Type
The Bonds will be dated,
as originally issued, as of
November 1, 1995, and will
be issued as negotiable in-
vestment securities in reg-
istered form as to both prin-
cipal and interest.
Msturttkm
The Bonds shall mature,
subject to redemption, on
July 1 in the following years
and amounts:
Year Amount
1997 $9.000
1998 10.000
1999 10,000
2000 10,000
2001 10,000
2002 10,000
2003 15,000
2004 15,000
2005 15,000
2006 15,000
2007 15,000
2008 15,00€1
2009 20,000
2010 20,000
- 2011 20,000
The Bonds shall be
issued as serial bonds in
the denomination of $5,000
each or any integral multi-
ple thereof of single maturi-
ties; provided that one Bond
with a stated maturity in
1997 shall be in the princi-
pal amount of $4,000.00.
Amortization bonds will not
be issued.
Redemption
Mandatory Redemption.
If on any interest payment
date there will be a balance
in the District Fund after
payment of the principal and
interest due on all Bonds
drawn against it, either from
the prepayment of special
assessments levied in the
Districts or from the trans-
fer of surplus money from
the Construction Account to .
the Principal Account, out- '
standing Bonds, or portions
thereof, in an amount which,
together with the interest
thereon to the interest pay-
ment date, will equal the
mount of such funds on de-
posit in the District Fund on
that date are subject to
mandatory redemption on
that interest payment date.
The redemption price shall
equal the amount of tire
principal amount of the
Bonds to be redeemed pluE
interest accrued to the dat(
of redemption.
Optional Redemption.
The Bonds are subject tc
redemption, in whole or in
part, at the option of the
City, from Sources of funds
available therefor other than
those described under
"Mandatory Redemption"
on any interest payment
date; provided however, the
Bonds shall not be called for
redemption (1) from
amounts on deposit in the
Reserve Account or (11) be-
fore July 1, 2001, from the
proceeds of refunding spe-
cial improvement district
bonds or warrants. The re-
demption price is equal to
the amount of the principal
installment or installments
of the Bonds to be re-
deemed plus interest ac-
crued thereon to the date of
redemption.
.Selection of Bonds for
Redemption: It less than all
bonds are to be redeemed,
bonds shall be redeemed in
order of the stated maturi-
ties thereof. if less than all
Bonds of a stated maturity
are to be redeemed, the
Bonds of such maturity
shall be selected for re-
demption in $5,000.00 prin-
cipal amounts selected by
the Registrar by lot or other
manner it deems fair, ex-
cept that the Bond with a
stated maturity in 1997 and
in the principal amount of
$4000 shall be redeemed
before other bonds of such
stated maturity.
interest 'Paymmrrt
Dates, Rates
interest will be payable
each January 1 and July 1,
commencing January 1,
1997. to the registered own-
ers of the Bonds as such
appear in the bond register
as of the close of business
on the 15th day (whether or
not a business day) of the
immediately preceding
month. All Bonds of the
same stated maturity must
bear interest from date of
original issue until paid at a
single, uniform rate not ex-
ceedin eight percent
j(8
.40
°Io per annum, with
the maximum difference
between the highest and
lowest rate of interest not
exceeding three percent
(3.00%) per annum ex-
pressed in an integral mul-
tiple of 118 or 5/100 of 1 %.
No "B" or supplemental in-
terest shall be allowed. In-
terest will be calculated on
the basis of a 360-day year
consisting of twelve 30-day
months.
Bond Registrar, Transfer
Agent and Paying Agent
The Commission will
appoint a registrar to act as
bond registrar, transfer
agent and paying agent (the
Registrar ). TThe bond reg-
ister will be kept, transfers
of ownership will be effect-
ed and principal of and in-
terest on the Bonds will be
paid by the Registrar. The
City will pay the charges of
the Registrar for such serv-
ices. The City reserves the
right to remove the Regis-
trar and to appoint a suitable
bank or trust company as
Delivery
Within 45 days after the
safe, the City will deliver to
the Registrar the printed
Bonds ready for completion
and authentication. The
original purchaser (the
`Purchaser") of the Bonds
must notify the Registrar, at
least five business days be-
fore issuance of the Bonds,
of the persons in whose
names the Bonds will be in-
itially registered and the au-
thorized denominations of
the Bonds to be originally
issued. If notification is not
received by that date, the
Bonds will be registered in
the name of the Purchaser
and will be issued in de-
nominations corresponding
to the principal maturities of
the Bonds. On the day of
closing, the City will furnish
to the Purchaser the opinion
of bond counsel hereinafter
described, an arbitrage cer-
tification and a certificate
verifying that no litigation in
any manner questioning the
validity of the Bonds is then
pending or, to the knowl-
edge of officers of the City,
threatened. Payment for the
Bonds must be received by
the City in immediately
available funds at its desig-
nated depository on the day
of closing. As a condition of
delivery, the Purchaser
must certify to the City in
writing the initial reoffering
prices of the Bonds.
Qualified Tax -Exempt
Obligations
The Bonds will be des[gg-
nated by the City as "quali-
fied tax-exempt obligations"
within the meaning of Sec-
tion 265 (b) (3) of the Inter-
nal Revenue Code of 1986,
as amended (the Code),
and financial institutions de-
scribed in Section 265 (b)
(5) of the Code may treat
the Bonds for purposes of
Sections 265 (b) (2) and
291 (e) (1) (B) of the Code
as if they were acquired on
August 7, 1986.
.12
j Le"! Opinion
An opinion as to the
validity of the Bonds and the
exclusion from gross in-
come for federal income tax
purposes and Montana indi-
vidual income tax purposes
of the interest thereon will
be furnished by ❑orseyy a
Whitney P.L. L.P., of Mis-
souls, Montana, and Min-
neapolis, Minnesota, as
Bond Counsel. The legal
opinion will be printed on
the Bo fit. The legal opinion
will state that the bonds are
valid and binding special
obtlgations of the City on -
forceable in accordance
with (heir terms, except to
the extent to which enforce-
ability thereof may be limit-
ed b the exercise of judi-
cial by or by state or
federal laws relatin to
bankruptcy, reorganize%on,
moratorium or creditors'
rights.
Type of SW and Award
Submission of Bids.
Sealed bid for not less than
$=,730 and accirued inter-
est on the principal sum of
s2og,000 must be mailed or
delivered to the undersigned
and must be received at the
office of the Finance Direc-
tor prior to the time stated
above. Bidders must bid for
all or none of the Bonds.
Basis of Award. The bid
authorizing the lowest net
interest cost (total interest
on all Bonds from Novem-
ber 1, 1995 to their maturi-
ties, Tess any cash premi-
um or plus any discount),
will be deemed the most fa-
vorable. In the event that
two or more bids state the
lowest net interest cost, the
sale of the Bonds will be
awarded by lot. No oral bid
will be considered. The Gity
reserves the rights to reject
any and all bids, to waive
informalities in any bid and
to adjourn the sale.
Good Faith Deposit. A
good faith deposit (the 'De-
posit") in the form of mon-
ey, cashier's check, certi-
fied check, bank money or-
der, or bank draft drawn and
issued by a federally char-
tered or state chartered
bank insured by the federal
deposit insurance corpora-
tion or a financial surety
bond in the sum of $2,000
payable to the order of the
City of Kalispell is required
for each bid to be consid-
ered. it money, cashier's
check, certified check, bank
money order, or bank draft
is used, it must accompany
each bid and be delivered to
the Finance Director. If a fi-
nancial surety bond is used,
it must be from an in-
surance company licensed
and qualified to issue such a
bond in the State of Montana
and such bond must be
submitted to the City of Ka-
lispell, to the Finance Di-
rector, or its financial advi-
sor prior to the opening of
the bids. The financial sure-
ty bond must identify each
bidder whose Deposit is
guaranteed by such finan-
cial surety bond. If the
Bonds are awarded to a
bidder utilizing a financial
surety bond, then that Pur-
chaser is required to submit
its Deposit to the City in the
form of a cashier's check
(or wire transfer such
amount as instructed by the
City or its financial advisor)
not later than 1:00 p.m..
Mountain Daylight Time, on
the next business day fol-
lowing the award. If such
Deposit is not received by
that time, the financial sure-
ty bond may be drawn by
the City to satisfy the De-
posit requirement. No inter-
est on the Deposit will ac-
crue to the Purchaser. The
Deposit will be applied to
the purchase price of the
Bonds. In the event the Pur-
chaser fails to honor its ac-
cepted bid, the Deposit will
be retained by the City. No
interest will be allowed on
the Deposit. The Deposit of
the unsuccessful bidders
will be returned immediate-
ly on award of the Bonds to
the Purchaser or after re -
Instructions for wiring
Deposit may be obtained
from the City Finance Di-
rector. City of Kalispell,
P.O. Box 1997. Kalispell.
MT 59903. (406) 758-7755.
CUSIP Numbers
The City will assume no
obligations for the assign-
ment or printing of CUSIP
numbers on the Bonds or
for the correctness of any
numbers printed thereon,
but will permit such
numbers to be assigned and
printed at the expense of the
Purchaser, If the Purchaser
waives any delay in deliv- _
®ry occasioned thereby.
Continuing Disa#osuro
Participating under-
writers need not comply
with paragraph (b) (5) of
Rule 15c2-12 promulgated
by the Securities and Ex-
change Commission under
the Securities Exchange Act t
of 1934, because the ag-
gregate principal amount of
the Bonds and any other
bond issues of the City re-
quired to be integrated with '
the Bonds is less than
$1,000,000. Consequently,
the City will not enter into
any undertaking to provide
continuing disclosure of any
kind with respect to the
Bonds.
Additional information,
and bidding forms, regard-
ing the District and the
Bonds may be obtained
from City Finance Director,
City of Kalispell, P.O. Box
1997, Kalispell, MT 59903,
(406) 758-7755.
Dated September 29,
1995.
BY ORDER OF THE
CITY COUNCIL
/s/Debbie Gifford, CMC
City CW* of Council
Ci of alispell, 5 Montana
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