Tab 25 Certified Copy of Ordinance 759October 18, 1995
I, Debbie Gifford, the undersigned, Clerk of the Council of the
City of Kalispell, certify that the foregoing is a true and correct
copy of Ordinance 759, approved by notion by the city Council of
the City of Kalispell at City Hall on May 13, 1968.
Debbie Gi , CMC
Kalispell Clerk of Council
ORDINANCE NO. 759
AN ORDINA14CE CREATING THE SPECIAL IMPROVE2WT DISTRICT
REVOLVING Flu -ND OF 7HE CITY OF ::ALISPELL, 110-tTTANA, IN
ORDER TO SECURE PROt T PAYK2,217 OF BONDS ISSUED WITH
RESPECT` TO TIIPROVP"WTS IN SPECI r. U IAMPROVPTENT DISTRICTS
OX THE CITY, AND THE itiTEREST TjiER 1111T ; ESTABLISHING &N
IRREVOCABLE U DI,, ,T'AKING AND ON ; .IE PART OF
CI � � TO Di= .'ZRS kN uAL;.Y AUTHORiZT';G i.+_ OR ADV:t:: �.A
FROM THE RE110;-iVING FUND TO THE SF?CIAL 7%1T D I STRICT
FUNDS INVOLVED IN AMOUNTS SUFF ICIFT"'." TO MAKE GC,UD A7Zy
DEFICIEti uY IN THE BCND AND INTFn�r` �T ACCOUNTS THEREOF TO THE
EXTENT THAT FUNDS ARE AVAILABLE, AND TO PROVIDE FUNDS FOR
THE REVOLVING FUND BY A.Ti NUALLY MAKING SUCH TAX LEVY OR LOAN
FROM THE GENERAL FUND AS MAY BE NECE.S S ARY TO MEET Th-E
FINANCIAL REO.UIRDIENTS THEREOF, SU-39J ECT TO THE MAX.IMMI
LIMITATT.ON IWPOSED BY RCM 11--2270; AND PROVIDING FOR TF:E
ACCU►17,,ATI.C:► �-."<D MAINTENANCE OF A RESERVE IN T:-,E RE7r1'7 ' ' :NG
FUND IN THE AMOUNT NECESSARY FOR PArfMT AND REDMTT__* U-
OF BONDS AND INTEREST
• k
BE IT ORDA NED BY TJ E CITY COUNCIL OF THE CITY OF KALISPELL, MON="TA,
AS FOLLOWS:
Section 1. Under and pursuant to the provisions of Sections 11-2269 to
11--2273, inclusive, of the Revised Codes of :Montana 1947, as amended, there is
hereby created and e � abiisned a special fund which shall be maintaAned by the
City Treasurer on th.-"- o-`ficial books and records of the City, separate from all
other funds'. to be known and designated as the Spec4_-, 7 Im - 7--n . -�ment District
Revolving Fund, for the purpose of securing the promp v pain=tent of special im-
provement district bonds issued in payment of the cost of improvem-: nts made for
the benefit of special improvement districts of the City.
Section 2. For the purpose of providing funds for the Revolving Fund
the pity Council may in its discretion, from time to time, transfer to the
Revolving Fund .from the General Fund of the City such amount or amounts as may be
deemed necessary, as Loans from the General Fund to the Revolving Fund, and shall
in addition to such transfers or in lieu thereof, levy and collect for the Re-
volving Fund such a tax on all the taxable property within the City as shall be
necessary to meet the financial requirements of the Revolving Fund; provided that
such levy, together with such transfers, shall not exceed in any one year five
per cent -um. (5%) of the principal amount of the then outstanding special improve-
ment district bonds of the City.
Section 3. Whenever .any special improvement district bond of the City,
or any interest thereon, shall become due and payable and there shall then be
either no money or not sufficient money in the appropriate district fund with
which to pay the same, an amount sufficient to make uD the deficiency shall be
lca;ied, by order of the Council, by the Revolving Fund to such district fund anC,
used, kith the amount then on hand in the district fu:s , to pay such pond and
intere.•:.. Whenever any loan is made to any special improvement district fund from
the Revolving Fund, the Revolving Fund shall have a lien therefor on all unpaid
assessments and installments of assess -meets on such district, whether delinquent
or not, and on all moneys thereafter comi;ig into such district fund, to the amount
of such loan, together with interest thereon from the time it was made at the
rate borne by the bond for payment of which, or of interest thereon, such loan
was made; and whenever there shall be moneys in such district fund which are not
required for payment of any bond of such district, or of interest thereon, so
much of such moneys as may be necessary to pay such loan shall by order of the
A�cdA °
Council be transferred to the Revolving Rand. After all bonds issued on any
special improvement district fund have been fully paid, all moneys remaining in
such district fund shall by order of the Council be transferred to and become
part of the Revolving Fund,
Section 4. The City of Kalispell has undertaken and agreed in con-
nection with the public offering ❑l` its Special improvement District No. 308 Bonds.
and does hereby covenant, undertake and agree with the holders of these bonds and
all other special improvement district bonds to be offered at public sale in the
future, so long as any such bonds, or any interest thereon, remain unpaid, that
it will annually authorize loans or advances from the Revolving Find to each fund
from which such bonds are payable (each such fund being referred to below as the
District Fund) , and will provide funds for the Revolving Fund by annual tax
levies or loans from the General Fund, in accordance with the following procedures:
(a) Separate bond and interest accounts shall be maintained on the
official books and records of the City, within each District Fund. Upon the
collection .of the installment of principal and interest due November 30 in each
year on the special assessments levied and appropriated to the District Fund, the
City Treasurer shall credit to the Interest Account so much thereof as may be
necessary to pay interest to bedtime due on all bonds payable from the District
Fund on the then next succeeding interest payment date, and shall credit the
remainder thereof to the Bond Account. Any installment of any special assessment
which is paid prior to the year in which it is due, with the interest accrued
thereon to such payment date, shall be credited directly to the Bond Account.
(b) The Interest Account shall be used solely to pay the interest due
at annual interest payment dates on the bonds issued against the District Fund.
The Bond Account shall be used, , whenever and to the extent that funds are avail-
able therein, for the redemption of such bonds in order' of their registration
numbers, and the payment of interest accrued thereon to the date of redemption,
in accordance with RCM 11--2231.
(c) A deficiency shall be deemed to exist in the Interest Account if
ever the balance on nand therein, fifteen days prior to any date on which interests
is due on the bonds payable from the District Fund, is insufficient to pay su('
interest in full. A deficiency shall be deemed to exist in the Bond Account Oil
any date on which there are not sufficient moneys in said Account to pay all
principal due on any bonds payable from the District Fund. A deficiency• shall also
be deemed to exist in the Bond Account on any date on .which interest is due on
bonds payable from the District Fund, unless the City has then or theretofore
redeemed bonds in a principal amount equal to the sum -of all installments of
special assessments paid prior to their due dates, plus a fraction of the remain-
ing principal amount of the special assessments originally levied and appropriated
to the District Fund, equal to the number of installments of such assessments then
and theretofore due divided by the total number of installments in which such
special assessments are permitted to be paid,
(d) The City Council, not less than fifteen days before the date when
interest is due on bonds payable from any District Fund, shall issue an order
authorizing a loan or advance from the Revolving Fund to the District Fund in an
amount sufficient to make good any deficiency then existing in the Interest Account
thereof, and on any principal or interest due date shall issue an order authorizing
a loan or make good any deficiency then existing in the Bond Account thereof, to
the extent that funds are available in the Revolving Fund. In the event that the
balance on hand in the Revolving Fund fifteen days prior to any date when interest
is due on special improvement district bonds of the City is not sufficient to
make good aill d.ef-'&.ciencies then existing in the Interest Accounts of District
Funds, such balance shall be .allocated to the District Funds in which such de-
ficiencies then exist, in proportion to the amounts of the respective deficiencies
on that date. Any money subsequently received in the Revolving Fund shall be
allocated to the Interest Accounts of District Funds in which deficiencies exist
-2-
in proportion to the amounts of the deficiencies on the respective dates of receipt
of such money, until all interest accrued on special improvement district bonds
of the City has been paid. 4n any date when al.1 such accrued interest has been
pc id, any balance remaining in the Revolvi--, - and shall be loaned or advanced to
the Bond Accounts of District Funds in which deficiencies then exist, in amounts
proportionate to the respective amounts of such deficiencies.
(e) At the same time as the annual levy for general taxes is certified
for collection in each year, the Cit)r Council s 111 :make , a tax levy on all the
taxable property within the City, of Kalispell ir} si:ch amount as shall be neces-
sary, together with any amounts therefore transferred to the Revolving Fund from
the General Fund, to accumulate in the Revolving Fund, within a period not
exceeding three years from and after the issuance of bonds for any special im-
provement district, and thereafter to maintain at all times, a balance equal
to fifteen per centum of the original pr incipe- �-. �.►rat of ai? outstanding issues
of special improvement district bonds, subject Lire maximum liz::itation as to
rate or amount of such tax. All funds derived from such tax levy and transfers
sh�i? be irrc vo7ably ap )ropriated to the Revolving Fund, and used ons..,y for the
purposes seL forth in this ordinance, until all special improvement district
bonds of the City and all interest thereon are fully paid.
Section 5. The balance required in Section 4(e) to be acc.kmulated and
maintained .n the Re,,rolving Fund is determined to be the minimum necessary
as a reserv>-� for pa,-;-,-, nt and redemption of maturing special improver . nt da :strict
bonds and interest of the Cit;; . Nothing herein shall prevent the Cit; Co -
from appropriating to the Revolving Fund from other funds properly available
therefor amounts in excess of the minimum reserve established herein, or from
transferring such excess amounts to the General Ind or using such excess amounts
for the purchase of property against which unpaid assessments are outstanding
pursuant to RCM 11--2273; but the City expressly covenants and agrees with the
holders from time to time of all of its special improvement district bonds that
no such transfers or purchases will be made at any time in such manner as to
reduce the reserve in the Revolving Fund below the amount herein agreed to be
maintained. The Revolving Find will be deposited in a duly qualified depository
bank and secured at all times as required by RCM 16-2618, but no, time deposit s
shall be made for a, period exceeding one hundred eighty (184) days, and the Cit::
Council is also authorized to invest all or any portion of the reserve in direr:.
obligations of the. United States government, payable within not to exceed one
hundred eighty (180) days from the time of such investment. '
Section 6. This ordinance shall be in full force and effect from and
•- after its passage and approval.
Passed and adopted by the City Council of the City of Kalispell,
Montana, this 13th.day of z';ay , 1968, and approved by the Mayor of said
City of Kalispell this 13th. day of 1,ay , 1968 • _
(SEAL)
At
Cil.y Clerk
I, George Beardslee, City Clerk of the C of Kalispell, Montana, do hereby
certify that on the 14th day of May, 68, I posted a co of t e foregoing
ordinance in my office and the same emai d posted fo a pert of five
days and the foregoing is a true and-- r ect copy of the or ance as passed
by the City Council,
City C,Ie1of the gity of Kalispell, Montana