Resolution 6014 - Reimbursement of Stormwater CostsCERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Kalispell, Montana (the "City"), hereby certify that the attached resolution is a true copy of a
Resolution entitled: "RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED
PROJECTS; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE IN ADVANCE OF THE
PROPOSED ISSUANCE OF REVENUE BONDS BY THE CITY OF KALISPELL TO
PROVIDE FUNDS TO PAY FOR THE COSTS OF STORMWATER INFRASTRUCTURE
IMPROVEMENT PROJECTS" (the "Resolution'), on file in the original records of the City in
my legal custody; that the Resolution was duly adopted by the City Council of the City at a regular
meeting on February 1, 2021, and that the meeting was duly held by the City Council and was
attended throughout by a quorum, pursuant to call and notice of such meeting given as required by
law; and that the Resolution has not as of the date hereof been amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the following
City Council members voted in favor thereof:
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voted against the same: Norte.,
abstained from voting thereon: N one>
or were absent: GotA.h C; (V-r- arl.5o n
WITNESS my hand and seal officially this 1 st day of February, 2021.
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Aimel Brunckhorst, CMC
City Clerk
RESOLUTION NO.6014
RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED
PROJECTS; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT
BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE IN
ADVANCE OF THE PROPOSED ISSUANCE OF REVENUE BONDS BY
THE CITY OF KALISPELL TO PROVIDE FUNDS TO PAY FOR THE
COSTS OF STORMWATER INFRASTRUCTURE IMPROVEMENT
PROJECTS.
BE IT RESOLVED by the City Council of the City of Kalispell, Montana (the "City"), as
follows:
Section 1. Recitals.
1.01 The United States Department of Treasury has promulgated final regulations
governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to
reimburse the City for project expenditures paid by the City prior to the date of issuance of such
bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require that
the City adopt a statement of official intent to reimburse an original expenditure not later than 60
days after payment of the original expenditure. The Regulations also generally require that the
bonds be issued and the reimbursement allocation made from the proceeds of the bonds within 18
months (or three years, if the reimbursement bond issue qualifies for the "small issuer" exception
from the arbitrage rebate requirement) after the later of (i) the date the expenditure is paid or (ii)
the date the project is placed in service or abandoned, but (unless the issue qualifies for the "small
issuer" exception from the arbitrage rebate requirement) in no event more than three years after
the date the expenditure is paid. The Regulations generally permit reimbursement of capital
expenditures and costs of issuance of the bonds.
1.02 The City desires to comply with requirements of the Regulations with respect to
certain projects hereinafter identified.
Section 2. Official Intent Declaration.
2.01 The City proposes to undertake certain stormwater improvements in the area north
of Quarter Horse Estates, south of Reserve Drive and bounded by West Spring Creek Road and
Stillwater Road to the west and east, which projects are generally described on Exhibit A hereto,
which is hereby incorporated herein and made a part hereof (the "Projects").
2.02 Other than (i) expenditures to be paid or reimbursed from sources other than the
Bonds (as hereinafter defined), (ii) expenditures permitted to be reimbursed under the transitional
provision contained in Section 1.150-26)(2) of the Regulations, (iii) expenditures constituting
preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the Regulations, or (iv)
expenditures in a "de minimus" amount (as defined in Section 1.150-2(f)(1) of the Regulations),
no expenditures for the Projects have heretofore been paid by the City and, other than preliminary
expenditures, no expenditures for the Projects will be paid by the City until after the date of this
Resolution.
2.03 The City reasonably expects to reimburse some or all of the expenditures made for
costs of the Projects out of the proceeds of debt in one or more series or of one or more kinds in
an estimated maximum aggregate principal amount of up to $4,100,000 (the "Bonds") after the
date of payment of all or a portion of the costs of the Projects. All reimbursed expenditures shall
be capital expenditures, a cost of issuance of the Bonds or other expenditures eligible for
reimbursement under Section 1. 1 50-2(d)(3) of the Regulations.
Section 3. Budgetary Matters. As of the date hereof, there are no City funds reserved,
allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved,
allocated on a long-term basis or otherwise set aside) to provide permanent financing for the
expenditures related to the Projects, other than pursuant to the issuance of the Bonds. The
statement of intent contained in this resolution, therefore, is determined to be consistent with the
City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the
date hereof.
Section 4. Reimbursement Allocations. The Administrative Services Director shall be
responsible for making the "reimbursement allocations" described in the Regulations, being
generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source
of temporary financing used by the City to make prior payment of the costs of the Projects. Each
allocation shall be evidenced by an entry on the official books and records of the City maintained
for the Bonds or the Projects and shall specifically identify the actual original expenditure being
reimbursed.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 1 ST DAY OF FEBRUARY, 2021.
ATTEST:
Aime Brunckhorst, CMC
City Clerk
Mark Johns
Mayor
04
A Stormwater Facility Master Plan, adopted by City Council in 2008, identified key locations for
regional stormwater infrastructure improvements. The Stormwater Infrastructure Project will address
regional stormwater needs within the West Study Area. The West Study Area (generally, west of
Stillwater Road and north of Three Mile Drive) drains southeast toward West Spring Creek. West
Spring Creek flows through the west parts of the City and has FEMA regulated floodplain. The City
of Kalispell recognized the need for regional stormwater management due to rapid development and
existing flooding issues within the West Study Area tributary.
The City of Kalispell intends to construct a series of regional stormwater detention facilities to
mitigate existing drainage issues and prevent increases in flooding. The infrastructure for the
stormwater regional project includes:
o Three regional detention facilities providing flood control for approximately 590 acres
o Approximately 9,000 linear feet of 24-inch storm drain serving 860 acres, conveying
runoff to West Spring Creek
o A new outfall to a drainage way easement which will convey water to West Spring Creek
just west of Quarter Horse Estates.
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PROJECT OVERVIEW MAP
WEST STUDY AREA STORM DRAINAGE
Kai ispell ; Flathead County. MT
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