Resolution 4082 - Refunding Bonds - Worker's Compensation524
resolution.
Member Jim Atkinson
moved the adoption of the following
RESOLUTION NO. 4082
A RESOLUTION RELATING TO PARTICIPATION IN POOLED SELF-
INSURANCE PROGRAM; APPROVING AND AUTHORIZING THE
MONTANA MUNICIPAL INSURANCE AUTHORITY TO ISSUE
BONDS ON BEHALF OF THE MUNICIPALITY, TO REFUND THE
OUTSTANDING WORKERS' COMPENSATION PROGRAM
REVENUE BONDS ISSUED BY THE AUTHORITY ON BEHALF OF
THE MUNICIPALITY, APPROVING THE DISTRIBUTION OF A
PRELIMINARY OFFICIAL STATEMENT RELATING THERETO AND
AUTHORIZING THE ISSUANCE AND COMMITTING TO EXECUTE
AND DELIVER TO THE MONTANA MUNICIPALITY INSURANCE
AUTHORITY A GENERAL OBLIGATION NOTE EVIDENCING THE
MUNICIPALITY'S PROPORTIONATE SHARE OF PRINCIPAL OF
AND INTEREST ON THE REFUNDING BONDS AND THE
EXECUTION AND DELIVERY OF RELATED DOCUMENTS.
BE IT RESOLVED by the governing body (the Governing Body) of
city of Ralisyell (the Municipality) as fdllows:
Section 1. Recitals.
1.01. The Montana Municipal Insurance Authority (the Authority) was
created as a joint exercise of powers entity pursuant to the Interlocal Agreement
creating the Montana Municipal Insurance Authority (the Interlocal Agreement)
and Title 7, Chapter 11, Part 1, M.C.A. (the Interlocal Cooperation Act) and as
authorized under the provisions of Section 2-9-211 and 2-9-212, M.C.A. for the
purpose of providing insurance and reinsurance programs to Montana
municipalities and jointly issuing obligations to fund self-insurance funds.
1.02. Pursuant to that authority, the Authority established its Workers
Compensation Program (Program) and made it available to all Montana
municipalities executing the Interlocal Agreement and the Revised Workers' Risk
Retention Program Agreement (the Workers' Compensation Agreement), The
Authority issued and sold its Workers' Compensation Program Revenue Bonds,
Series 1990 (the Outstanding Bonds) in the aggregate principal amount of $7,610,000,
of which $7,135,000 in principal amount are now outstanding, on behalf of the
municipalities (the Participating Members) adopting a Resolution authorizing the
Authority to do so, and executing and delivering to the Authority a general
obligation note (the Outstanding Note) In a principal amount equal to their
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proportionate share of the principal of and interest on the Bonds as defined in the
the Indenture of Trust dated as of September 1,1990 betweean the Authority and
First Trust Company of Montana National Association, as trustee and successor to
First Trust Company of Montana (the Indenture).
1.03. The Outstanding Bonds bear interest at a net effective interest rate
of (7.423%). The Board of Directors of the Authority (the Board) has determined that
it may be advantageous to the Program and the Participating Members, now or In
the future, to advance refund or refund the Series 1990 Bonds and thereby achieve a
reduction in annual debt service on the Outstanding Bonds.
1.04. In order for the Board to refund the Series 1990 Bonds it must
have authorization from the Participating Members to issue on behalf of the
Participating Members bonds (the Refunding Bonds) to refund the Outstanding
Bonds, and the Authority has requested that the Municipality adopt a resolution
granting such authorization.
Section 2. Authorization.
2.01. The Governing Body hereby authorizes the Authority to issue
Refunding Bonds on its behalf as provided herein, and declares its intention to issue
a Refunding Note that shall be a general obligation of the Municipality and shall
represent its proportionate share of the Refunding Bonds, as determined under the
Indenture and to execute and deliver the Refunding Note and such other
documents to the Authority as may be required to effectuate the Issuance of the
Refunding Bonds; provided that the interest rates to be borne by the Refunding
Bonds will result in present value savings to the Authority of not less than one and
one half percent 0 1 /2 %) of the principal amount of the Outstanding Bonds, using
the interest rate on the Refunding Bonds as a discount factor over the term of the
Refunding Bonds, which savings shall be net of the costs of issuing the Refunding
Bond.
2.02. The Authority is hereby authorized to rely on this Resolution and
the Municipality hereby authorizes the Authority to proceed with the issuance of
the Refunding Bonds on behalf of the Municipality in an amount sufficient, among
other things, to defease the Outstanding Bonds and pay all costs associated with the
issuance of the Refunding Bonds and defeasance of the Outstanding Bonds.
2.03. The Governing Body hereby preliminarily authorizes the
issuance of its Refunding Note in a principal amount not to exceed 120% of the
principal of the Outstanding Notes, in substantially the form of the Note previously
issued to refund the Outstanding Notes. The Mayor and City Clerk are hereby
authorized and directed to execute and deliver the Refunding Note to the Authority
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Member Harbara Moses seconded the motion and the
following voted In favor thereof: Barbara Moses, Fred Huck, cliff collies
Gary N stul g Pamela KennedX..Duane Larson, Jim Atkinson nw.
and Mayor Douglas Rauthe
and the following voted against the same: none
Absent
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within 15 days of the date of the recelpt of written notice from the Authority to do
so; provided that: I) the interest rates savings described in Section 2.01 can be
achieved; 2) the principal amount of the Refunding Note does not exceed 3% of the
taxable value of the Municipality, as of the date of the last completed assessment for
state and local taxes; and 3) the Board has determined that the issuance of the
Refunding Bonds is in the best interest of the Program and the Participating
Member and the Refunding Bonds will be issued in the principal amount necessary,
but not greater than the principal amount necessary, to provide funds, with other
available funds in the Debt Service Fund to the Authority allocable to the
Outstanding Bonds, to establish the escrow account to defease the Outstanding
Bonds, and to pay the costs of issuance of the Refunding Bonds and the costs of
refunding the Outstanding Bonds. The term of the Refunding Note shall not exceed
the term on the Outstanding Note.
Section 3. Effective Date. This resolution shall become effective
immediately upon passage.
Passed and approved this 19th day of October
WITNESS my hand officially as such recording officer and the seal of
the —.City of Kalispell _ this 19th day of october . 1992.
a--",
(SEAL) Clerk
Douglas Raui e, Mayor
M