2. $175,000 SID Bond 348 Series 2025BUNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF FLATHEAD
CITY OF KALISPELL, MONTANA
SPECIAL IMPROVEMENT DISTRICT BOND
(SPECIAL IMPROVEMENT DISTRICT NO.348
(GREEN ACRES COMMUNITY IMPROVEMENT))
TAX-EXEMPT SERIES 2025B
No. R-1
Dated: August 27, 2025
$175,000
FOR VALUE RECEIVED, the City of Kalispell, Montana (the `'City"), a duly organized and
existing municipal corporation in Flathead County, Montana, acknowledges itself to be specially indebted
and hereby promises to pay to the Department of Natural Resources and Conservation of the State of
Montana (the "DNRC"), or its registered assigns, solely from the District Fund (the "Fund"), the principal
sum equal to the sum of the amounts entered on Schedule A attached hereto under "Total Amount
Advanced," with interest on each such amount from the date such amount is advanced hereunder at the rate
of two percent (2.00%) per annum on the unpaid balance until paid. h1 addition, the City shall pay an
Administrative Expense Surcharge and a Loan Loss Reserve Surcharge on the outstanding principal amount
of this Series 2025E Bond, each at the rate of twenty-five hundredths of one percent (0.25%) per annum.
Interest and Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be payable in
semiannual installments payable on each January 1 and July 1 (each a "Loan Repayment Date")
commencing on January 1, 2026 and concluding on July 1, 2045. Principal shall be payable on the dates
set forth in Schedule B hereto. Each installment shall be in the amount set forth opposite its due date in
Schedule B attached hereto under "Total Loan Payment." The portion of each such payment consisting of
principal, the portion consisting of interest, the portion consisting of Administrative Expense Surcharge,
and the portion consisting of Loan Loss Reserve Surcharge shall be as set forth in Schedule B hereto. Upon
each disbursement of Loan amounts to the City pursuant to the Resolution described below, the DNRC
shall enter (or cause to be entered) the amount advanced on Schedule A under "Advances" and the total
amount advanced underthe Supplemental Resolution (as hereinafter defined), including such disbursement,
under "Total Amount Advanced." The DNRC shall prepare Schedule B and any revised Schedule B, or
cause Schedule B and any revised Schedule B to be prepared, as provided in Section 3.06 of the Resolution,
and the final Schedule B will reflect repayments under Section 3.06 of the Resolution. Schedule B shall be
calculated and recalculated on a level debt service basis assuming an interest rate of 2.50% per annum.
Past -due payments of principal and interest and Administrative Expense Surcharge and Loan Loss Reserve
Surcharge shall bear interest at the rate of ten percent (1.0.00%) per annum, until paid. Interest and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be calculated on the basis of a
360-day year comprising 12 months of 30 days each. All payments under this Series 2025B Bond shall be
made to the registered holder of this Series 2025B Bond, at its address as it appears on the Bond register,
in lawful money of the United States of America.
This Series 2025B Bond is one of an issue of Special Improvement District Bond (Special
Improvement District No. 348 (Green Acres Community Improvement)), Series 2025 of the City authorized
to be issued in one or more series from time to time, and constitutes a series in the maximum authorized
principal amount of $175,000 (the "Series 2025B Bond"). The Series 2025B Bond is issued to finance a
portion of costs of local sewer improvements (the "Improvements") to benefit the property located at 1721
South Woodland Drive in the City ("Green Acres Community") and to pay costs of issuance of the Series
2025 Bonds (as defined herein). The Series 2025B Bond is issued pursuant to and in full conformity with
the Constitution and laws of the State of Montana thereunto enabling, including Montana Code Annotated,
Title 7, Chapter 7, Part 44 and 45, as amended, and the Resolution. Terms used with initial capital letters
but not defined herein have the meanings given to them in the Resolution. This Series 2025B Bond is
issuable only as a single, fully registered bond. Simultaneously herewith, the City is issuing its $168,386
Special Improvement District Bond (Special Improvement District No. 348 (Green Acres Community
Improvement)), Subordinate Lien Taxable Series 2025A (the "Series 2025A Bond," and together with the
Series 2025B Bond, the "Series 2025 Bonds"), which is a subordinate obligation payable out of District
Fund. Following the 2025B First Advance, the total amount of each advance will be split equally between
the Series 2025A Bond and the Series 2025B Bond, until the entire amount of the Series 2025A Bond is
advanced.
The Series 2025 Bonds are issuable only as fully registered bonds of single maturities in
denominations of $1 or any integral multiple thereof.
This Series 2025B Bond is payable from the collection of an assessment levied upon all assessable
real property within the boundaries of the District, in an aggregate principal amount of not less than
$175,000, except as such amount may be reduced or increased in accordance with provisions of Montana
law. Such special assessments constitute a lien against the assessable real estate within the District and are
to be deposited into the Special Improvement District No. 348 Fund of the City (the "Debt Service Fund")
and the Principal Subaccount and Interest Subaccount of the District Account established therein. This
Series 2025B Bond is a special, limited obligation of the City and is not a general obligation of the City.
The City has also validly established a Special Improvement District No. 348 Reserve Subaccount
(the "Reserve Subaccount") to secure the payment of this Series 2025B Bond. The City has agreed, to the
extent permitted by the Act, to issue orders authorizing loans or advances from the Reserve Subaccount to
Debt Service Fund in amounts sufficient to make good any deficiency in the Debt Service Fund to pay
principal of or interest on the Series 2025B Bond to the extent that funds are available in the Reserve
Subaccount, and to provide fiends for the Reserve Subaccount by an initial deposit of proceeds of the Series
2025B Bond in the Reserve Subaccount. While any property tax levy to be made by the City to provide
funds for the Reserve Subaccount. In addition, the City has covenanted to comply with the requirements
of the Code and the Regulations in order that the Reserve Subaccount comply and continue to qualify as
"reasonably required" debt set -vice Reserve Subaccount for the Series 2025B Bond.
The City may prepay the principal of this Series 2025E Bond only if (i) a Determination Statement
has been delivered, (ii) it obtains the prior written consent of the DNRC thereto, and (iii) no Loan
Repayment or Administrative Expense Surcharge or Loan Loss Reserve Surcharge is then delinquent. Any
prepayment permitted by the DNRC must be accompanied by payment of accrued interest and
Administrative Expense Surcharge and Loan Loss Reserve Surcharge to the date of prepayment on the
amount of principal prepaid. If this Series 2025B Bond is prepaid in part, such prepayments shall be applied
to principal payments in inverse order of maturity.
As provided in the Resolution and subject to certain limitations set forth therein, this Series 2025B
Bond is transferable upon the books of the City at the operations center of the Registrar, by the registered
owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together
with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or
the owner's attorney, and may also be surrendered in exchange for Series 2025B Bonds of other authorized
denominations. Upon such transfer or exchange, the City will cause a new Series 2025B Bond or Series
2025B Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal
amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any
tax, fee or governmental charge required to be paid with respect to such transfer or exchange.
2
The City and the Registrar may deem and treat the person in whose name this Series 2025B Bond
I
is registered as the absolute owner hereof, whether this Series 2025E Bond is overdue or not, for the purpose
Of receiving payment and for all other purposes, and neither the City nor the Registrar shall be affected by
any notice to the contrary.
The City has not designated this Series 2025B Bond as a "qualified tax-exempt obligation" for
purposes of Section 265(b)(3 )) of the Internal Revenue Code of 1986, as amended.
IT IS CERTIFIED, RECITED, COVENANTED AND AGREED that all things required to be done
precedent to the issuance of this Series 2025B Bond have been properly done, happened and been performed
in the manner prescribed by the laws of the State of Montana and the resolutions and ordinances of the City
of Kalispell, Montana, relating to the issuance thereof, and that the opinion attached hereto is a true copy
of the legal opinion given by Bond Counsel with reference to the Series 2025B Bonds, dated the date of
original issuance and delivery of the Series 2025B Bonds.
I
This Series 2025B Bond shall not be valid or become obligatory for any purpose or be entitled to
any Security or benefit under the Resolution until the Certificate of Authentication and Registration herein
C
shall have been executed by the Registrar by the manual signature of one of its authorized representatives.
(The remainder of this page is intentionally left blank.)
FORM OF ASSIGNMENT
For value received; the Series 2025B Bond is hereby transferred and assigned by the undersigned
holder, without recourse,
to
of ,
on this day
By:
(Authorized Signature)
For:
(Holder)
0
SCHEDULE A
SCHEDULE OF AMOUNTS ADVANCED
Total Amount
Date Advances Advanced Notation Made
SCHEDULE B
PAYMENT SCHEDULE
State Of Montana
General Ob#ptkm [fonds
wastewater
(Revolving Fund Program)
CUSW:
Date of Funding
9/27/202S Account a:
Loan Number. SRF-26S95
I first Payment Date.
1/1/2026
Borrower: Kalispell
final loan Payment:
7/1/204S
Project Name: Green Acres
Number of Years.
20
Loan Commitment: 5 175,000.00
Payments Per Year
2
Loan Amount:
v of loan Payments.
40
Loan Loss Reserve: 0.25%
total Interest Rate.
2.50%
Admm Expense: 0,25%
Interest Rate: 2.00%
Initial Draw Amount:
TOTALS: 4,751.94 4,751.94 38,015.56 175,000,00 S 222,519.44 47.519.44 175,000.00
0
$ 275,00000
1
1/1/2026
150.69
150.69
1,205.S6
4,000.00
S 171.000,00
5 5.506,94
1,506.94
4,000,00
2
7/1/2026
213,75
213.75
1,710.00
1,00000
S 168.000.00
S 5.137.50
2.137.50
3,00000
3
111/2027
210.00
210,00
1,690.00
3,000.00
5 165,000.00
S S,100.00
2,100.00
3.000,00
4
7/1/2027
206.25
206.25
1,650.00
4.000.00
$ 161.00000
5 6,062.50
2,062.50
4,00000
5
1/1/2028
201.25
201.25
1,610.00
4,000.00
$ 157.00000
5 6,03250
2,012.SO
4,000.00
6
7/1/2028
2%.25
196,25
1,570.00
4.000.00
5 153.00000
5 5,962.50
2.962,50
4,000.00
7
1/1/2019
191.25
191.25
1,530.00
4,000.00
S 149.000.00
S 5,912SO
1,912.50
4,000.00
8
7/1/2029
186.2S
286,25
1,490.00
4,000.00
$ 145.000-00
5 5,861.50
1,862,50
4,000.00
9
1/1/2030
181.25
181.25
1,450.00
3,00000
S 142,00000
S 4,812_SO
1,812,50
3,000A0
10
7/1/2030
17750
177.SO
1,420.00
4,000.00
$ L38,000.00
5 5,775,00
1,775.00
4.000.00
11
1/1/2031
172,50
172.SO
1,38000
4,000.00
$ 134,000.00
$ S,725.00
1,725,00
4,000.00
12
7/1/2031
167.50
167.50
1,340.00
4,000.00
5 130.000.00
$ 5,675.00
1,675.00
4.000.00
13
1/1/2032
162.SO
162.50
1,300.00
4,000,00
S 126,000.00
S 5.625.00
1,625.00
4,000.00
14
7/1/2032
157.50
157.SO
1,260.00
4.000.00
$ 122,000.00
5 5,575.00
2,575.00
4,000.00
15
1/1/2033
152.SO
15250
1,220A0
4,000.00
$ 119,000.00
5 5,525,00
1,525,00
4,000.00
16
7/1/2033
147.50
147.50
1,180,00
4,00000
$ 114,000.00
S 5,475.00
1,475.00
4,000.00
17
1/1/Z034
142.50
142.50
1,140.00
4.00000
S 110.000.00
5 5,425.00
2.425DO
4,000.00
18
7/1/2034
137SO
137.SO
1,100.00
4,000.00
S 106,000.00
$ 5,375.00
1,375.00
4,000.00
19
1/1/2035
23250
132.50
1.060.00
4,000.00
S 102,00000
5 5,32S.00
1,32500
4.000.00
20
7/l/2035
127.50
127.50
1,020.00
4,000.00
S 98,000.00
$ 5,275.00
1,215.00
4.000.00
21
1/1/2036
122.50
12250
980.00
4,OWOO
S 94,000.00
$ 5.225.00
1,225.00
4.000.00
22
7/1/2036
117.50
117.SO
940.00
4,000.00
S 90,000.00
S S,17S.00
1,175.00
4,000.00
23
1/1/2037
112.50
112.50
900.00
S,000.00
S SS.000.00
S 6,12S.00
1,12SA0
5,000.00
24
7/1/2031
106.25
106.25
850.00
5,000.00
S 80,000.00
5 6.062.50
1,062.50
S,000.00
2S
1/1/2038
100.00
100.00
800.00
S,000.00
S 75.000.00
5 6.000.00
1,000.00
5.000.00
26
7/1/2038
93.75
93.7S
750.00
4,000.00
5 71.000.00
S 4,937.SO
937.SO
4,000,00
27
1/1/2039
88.75
88.7S
710.00
5.000,00
5 66.000.00
5 S,887.50
881.50
5.000.00
28
7/1/2039
82.SO
82.50
660.00
5,00000
S 61.000.00
S 5,825.00
825.00
5,000.00
29
2/1/2040
762S
16.25
610.00
4.00000
S 57,000,00
S 4,762,50
762.SO
4,000.00
30
7/1/2040
71.25
71.25
570.00
5.000.00
S 52,000.00
S 5,71250
71250
5,000.00
31
1/1/2041
65.00
65.00
$20.00
5,00000
S 47,000.00
S 5,650,00
650.00
5.000.00
32
7/1/2041
59.75
58.7S
470.00
5.00000
5 42.000.00
S 5,58750
$87.50
5.000.00
33
1/1/2042
52.50
S2.SO
420.00
5,000.00
S 37,000.00
S 5,525.00
52S.00
5,000.00
34
7/1/2042
46.25
46.25
370.00
5,000.00
5 32.000,00
S 5.46250
462.50
5,000.00
35
1/1/2043
40.00
40.00
320.00
5,000.00
S 27,00000
S 5.400,00
400.00
S,000.00
36
7/1/2043
33.75
33.7S
2 70 .00
S,000.00
S 22,000.00
S 5,337.50
337.SO
5,000.00
37
1/1/2044
27.SO
27,SO
220.00
5,000.00
S 17,000.00
S S,275.00
275,00
S,000.00
38
7/1/2044
21.2S
21.25
170.00
6.000.00
S 11,000.00
5 6.212.50
212.SO
6,000.00
39
1/1/2045
13,75
13.75
11000
5,000.00
S 6,000.00
5 5,137 50
137.50
5,000.00
40
7/112045
7.50
7.50
60.00
6,000.00
S -
S 6,075.00
75.00
6,000.00
8