Tab 18 Ordinance No. 759dYd 0
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ORDINANCE NO. 759
AN ORDINANCE CREATING THE SPECIAL IMPROVD.MIT DISTRICT
MrOLVI'NG FU6D 01' . THE CITY OF 1�.ALISPELL,s I10i'ITANA, III
ORDER TO SECUi: E PROMPT PAYMI NT OF BONDS ISSUED WITH
RESPECT TO IHPROVE*WTS IN SPECxP-L IMPROVDWT DISTRICTS
OF THE CITY, AND THE INTZBEST T� `'��'_ ; ESTABLISHING AN
IIRREV0'C.A :T� AND �iGI"t �'i;, 5 ,; :'.i' Oil "�; ' PART OF "T�� , ..�
►/ �yy °yr�j.Lr Cl4F1rf Or1 ��",'RS:`11�1T1"i(1AL?JY�jA'0TH0��]R'.�.rT���,�.LT��IJ7� �J}.. �{ti OR r�C7]1JVA',.-k►ES
FROP4 `�.�rlE RE'V 01 Y . NG 1 VNJJ TO THE SP C. kL I -I4 r � liar. •' "rtiT DI SAICT
FUNDS INVOLVED IN AMOM TS SUFF.�� s:: ; �,: � � TO INIAKE' ; .. Y
DEFICIE COY IN THE i3�'ND ,AND I.��TE��� ��'�T ACCOURTS THEMF TO THE
EXTENT THAT FUNDS ARE AVAILABLE, AND TO PROVIDE F=S FO.,'i
THE 'REVOUVM FUND BY ANNUALLY MAKING SUCH TAX LEVY OR' LOAN
FROM THE GENERAL FUND AS MAY 'BE NECESSARY TO MEB' TaTE
FINANCIAL REQUIREMENTS THEREOF, SUB.1= TO THE IXAW.741k0l
LIMYTj'�a' j.0N T.MPOSED BY RCS'! 11--2270 ; AND PROV�.DINTG FOR 'T�
ACC ,,=AT10-r1 a'�PTD ',IA1NTE A!"7CE OF A RESERVE INT 1B 'rr.: ; YC
F ND IId THE AMOUNT NECESSARY FOR PAYMNT AND REDEMPT" Q-
OF BONDS AND INTMST
BE IT ORD?.TAU ►7 AY T34E CITY COUNCIL OF THE CITY OF MISPELL, MO TANA.,
AS FO DLO} -IS
Section 1. Under and pursuant to the provisions of Sections 1.1.2269 to
11- 22 i 3, inclusive, of the Revised Godes of Montana 1947,- as amended, these is
hereby created and �"�:ab1izhed a special, fund which shall be maintained by the
City Treasurer on tua � �.'t% f"i.ciai 'boobs and records of the City, separate from all
other funds , to be known and designated as the Spec' .1 T-�n;- District
Revolvl.ng Fund, for the purpose of securing the probip-� pnyt.,nnt of 17,peci.al im-
provement district bonds issued in payment, of the cost of improveiznr:.-its made for
the benefit of special improvement districts of the City.
Section2. For the purpnse of provi.=-li.ng funds for -the Ro":L Fund
the Nity Council may, in its discretion, from time to time, transfer to the -
PO :r � FLmd from the Creneral Fund of the City such amount or amounts as may be
deemed necessary, as loans from the General Fund to he 40*01 Fund, and shall,
in add,-;.tion 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 c Fund; provided that
such levy, together with such transfers, shall not exceed in any one year five
per centum (5%)' of the principalamount 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 up the deficiency shall, be
loaned, by order of the Council, by the R FNw4 to such d-Ji strict fund and
used, with the amount then on hand in the district fug` : , to pay such bond and
i.nterer: v, ihenever any loan is made to any special improvement district fund from
the 90 oV Fund, the Ro l Fund shall have a lien therefor on all unpaid
assessments and installments of assessments on such di.str:lct, whether delinquent
or not, and on all moneys thereafter comfy;g 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; ar:d whenever there shaIlhe moneya in such district find which are not
required for payment of any bond of such district, or of interest the rear , so
much of such m=eys as may be necessary to pay such loan shall by order of the
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Council be transferred to the Revolving Fund. 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 Cit,Y of Kalispell has undertaken and agreed i,n con-
nection with the public of f er ing oT` i i-,s Spec al improvement District No. 308 Bonds ,
and d c,! s hereby covenant, unde.~ valte 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 annua3Iy authorize loans or advances from the Revolving Fund 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 folloving procedures;
(a) Separate brand 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 apprc pri ated to the District Fund, the
City Treasurer shall credit to the Interest Accoiint so much thereof as may be
necessary to pay interest to become due on all bands 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 pa,Y the interest due
at annual interest payment -dates on the bonds issued against the District Fund.
'he Brand Account shall be used, whenever and to the extent that funds are avail-
Lble therein, for the redemption of such bonds in order of their registration
lumbers , 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 interest
is due on the bonds payable from the District Fund, is insufficient to par such
interesi in full. A deficiency shall be deemed to exist in the Bond Account on
,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 shah. issue an order authorizing
-a loan or make good any deficiency then existing in the Bond Account thereof, to
the extent that Pmds are available .in the Revolving Fund. In the event that the
balance on hand in the Revolving Fund fifteen fteen days prior to any date when interest
is due on special improvement district 'bonds of the City is not sufficient to
make good all deficiencies then existing in the Interest Accounts of District
Funds, such balance shall be allocated to the District Funds in which such de-s
ficiendies 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 F=dg its 'which deficiencies exist
-00&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 all such accrued interest has been
paid, any balance remaining in the Revo_ivi: .. 'tind shall be loaned or advanced to
the Bond Accounts of Distract Funds in which deg.`-.ciencies tht�n exist, :i.n amounts
proportionate to the respective amounts of such deficierc,ies ,
� e) At the same time as the ann; &I. , evy for general. taxes i s certified
:i'or cc�l.j.ec4tion in each year, the City Council .;'. t�,.?. make � tah l.ev}. �'�� all the
taxable property within. -„� 4'a City Of K&Iispell ix; s %+& r��ount as shall be neces--
sexy, 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 k,x7ereaft.,-._4r to maintain at all. time,:;, as balance: equal
to fifteen per centum of the or"gina,l, princ�k.pa." elt;nt of al'. nuts tainding issues
of special improvement district bond:v, , subject -Wie Maximum 1i;-, -t t at i on as to
rate or amount o-l" such tax, kII Fund, der, rued ;.L-o;% su& to-x levy,ax:d transfers
shal-11. be : dbiy riate d to the Revolving rwid, and used on?. y for the
purposes sel: forth in ordinance, until all special improvemeW; district
bonds o:s'' the City and a.11 interest thereon are fully }paid,
Section 5. The balance required in 'Section 44 e i to be acc;.imulRted and
maintained ;.r, the Rey%nl era ng Fund is determined to I%� the vj.' r.imum n. - t essary
as a for and redemption of maturing specia3 improver,. -,it d.:•:_;trict
bonds and i.--ztereat of the City. Nothing herein shall -Drevent the CIV.,:-
from appropriating to the RevolIving Fund from other funs properly ava-1 Zawile
therefor amounts in excess of the minimum reserve establi Shed herein, or from
transferring such excess amounts to the General. Fund 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,agre.ed to be
maintained. The Revolving Fund will be deposited in a: duly qualified depository
bank and secured at all times as required by RCM 16-2618, but no -time deposit $
shall be made for ,a period exceeding one hundred eighty (180) days, and the City
Council is -also authorized to invest all, or airy portion of the reserve in direct
obligations of the United States government, payable within not to exceed one
hundred eighty (180) days from the time of such investment.
Section 6, Thia ordirience' shall be in full ford* 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 May , 1968, and approved by the Mayor of said
City of Kalispell this 13th, dear of Y, , 1968,
E
At
1, George Beards 1 ee, City Clerk of the C of Kalispell, Montana, do hereby
certify that on the 14th day of May, b8, I posted a co of t e foregoing
ordinance In my office and the same mat posted fo a of
of five,
days and the foregoing is a true anc�- r ect copy of the or ance as passed
by the City Council. f`
City C,IepVof .the Vity of Kalispell, Montana