Ordinance 759 - Creates Special Improvement District Revolving Fund228
ORDINANCE NO.759
AN ORDINANCE CREATING THE SPECIAL IMPROVEP+TENT DISTRICT
REVOLVING FJJC;D 0' THE CITY OF ;'ALISPELL, 11ONTANA, IN
ORDER TO SECi' CE PRODTT PAYMETNT OF BONDS ISSUED WITH
RESPECT TO IDPROVE TEPJTS ITd SPECI%:L IMPROVEMENT DISTRICTS
OF THE CITY, AND THE 7NTEBEST T1'.::?R"`.`; ESTABLISHING AN
IRREVOCP n AND 07A rT PftRT OF
CI � 3 T� ,.:;:. Oz JRS AFia.;ALLY AJITHOR 1.% .1 , L,i OR ADY C %R"ES
FROM THE REVO; VIieG FUND TO THE 0: CTAL II4ar ;`r ;nT,T D - ,TdICT
FUNDS INVOLVED IN AMOUNTS SUFF-D ,_ ,i7 O MAKis ir, OD "j-,Y
DEFICIFNCY IN THE BOND AND TNTE t;2;T ACCOUNTS THEREOF TO THE
EXTENT THAT FUNDS ARE AVAILABLE, AND TO PROVIDE FUNDS F,.lR
THE REVOLVING FUND BY ANNUALLY MAKING SUCH TAX LEVY OR LOA14
FROM THE GENERAL FUND AS MAY PE NECESSABY TO MEET THE
FINANCIAL RROUIREMENTS THEREOF, SURjECT TO THE MATA_MTIM
LIMITAi'?ON i_MT OSED BY RCM 11-2270; AND PROVIDING FOR TII„
ACCUMTY,AT'iC:: I"D „AINTENAIsCE OF A RESERVE IN TIE RzT' NG
FUND 1N THE AMOUNT NECESSARY FOR PAYMENT AND REDEMPT?1i
OF BONDS AND INTEREST
BE IT ORD^.INPD BY TFE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA,
AS F07, LOFTS:
Sect."on 1. Under and pursuant to the provisions of Sections 11-2269 to
11-2213, ir.clusive, of the Revised '`:odes of Montana 1947, as amended., there is
hereby created anu-„'ablished a special fund which shall be maint;alned by the
City Treasurer on tt.. .,`ficial books and records of the City, separate from all
other funds, to be known and designated as the Spec' T I,n: ,,^uent District
Revolving Fund, for the purpose of securing the proiap� pacyirsnt of .special im-
provement district bonds issued in payment, of the cost of improvevn=ats made for
the benefit of special improvement districts of the City.
Section 2. For the purpose of providing funds for the Revolving Fund
the bity 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 centum (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
loaned, by order of the Council, by the Revolving Fuc:n to such district fund and
used, with the amount then on hand in the district fun;;, to pay such bond and
interest. 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 assessments on such district, whether delinquent
or not, and on all moneys thereafter comi�ig into such district 'fund, to the amount
of suchloan, 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 shallbe 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
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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 City of Kalispell has undertaken and agreed in con-
nection with the public offering o-' it.s Spec;. al improvement District No.308 Bonds,
and dt:es 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 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 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 flnpre-priated to the District Fund, the
City Treasurer shall credit to the Interest Account so much thereof as may be
necessary to pay interest to become 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 hand therein, fifteen days prior to any date on which interest
is due on the bonds payable from the District Fund, is insufficient to pay such
interest 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 shall issue an order authorizing
a loan or make good any deficiency then existing in the Bond Account thereof, to
the extent that hinds 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 all deficiencies 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
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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. On any date when all such accrued interest has been
paid, any balance remaining in the Revo -,d 'lnnd shall be loaned or advanced to
the Bond Accounts of District Funds in which deficiencies th-an exist, in amounts
proportionate to the respective amounts of such deficiencies.
(e) At the same time as the annu.ai levy for general taxes is certified
1'1,ar collection in each yens, the Cite council u's-nli make a tax lev-y c.i all the
taxable property within i,I:c City of I{/iispell i,; such nr:,ount 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 t.hereaf+!r to maintain at all times, a balance equal
to fifteen per centum of the original princi.pa.l '- m.ni: of al:- outs+,ending issues
of special improvement district bonds, subject fire maximum li>itation as to
rate or ,mount o" such tax. All funds derived to,n such tax levy curd transfers
sha:il be irrev_=.ably ap?.rc.priated to the Revolving r'Lmd, and use(i only for the
purposes sot, forth in .his ordinance, until all special improvement district
bonds o' the City and all interest thereon are fully paid.
Rection 5. The balance required in Section 4(e) to be accemulated and
maintained ..r, the Rey,-Ivin,g Fund is determined to to the it:.:imum rw: rt n;;cessary
.s a resery 'or pay: .nt and redemption of maturinf, specie] improven:at district
bcazds and i.,.terest of the Cit Ilothi.ng herein shall nreveat the Cif Cu..:i,�il
from appropriating to the Revolving Fund from other funds properly avallable
therefor amounts in excess of the minimum reserve established 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 agreed 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 s
shall be made for a period exceeding one hundred eighty (180) days, and the City
Council is also authorized to invest all or any 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. 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 play , 1968, and approved by the Mayor of said
City of $glisnP17 thigl3th. day of r:av , 1968.
ra
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 mar d posted fo a peri of five.
days and the foregoing is a true and- r ect copy of, the or ante as passed
by the City Council.
City C e of .the City of Kalispell,