Ordinance 384 - Issuance of Bonds189
ORDINANCE NO. 384
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NINETY FIVE THOUSAND
DOLLARS ($95,000) funding BONDS OF THE CITY OF KALISPELL, MONTANA
IN EXCHANGE FOR OUTSTANDING WARRANTS, AND PROVIDING A TAX LEVY FOR THE
PAYMENT OF PRINCIPAL AND INTEREST OF SAID BONDS.
' Section 1. WHEREAS there are now outstanding the valid, legal and
subsisting Warrants of said City in an amount, which, with interest, is
not less than Ninety five Thousand Dollars ($95,000).
Section 2. WHEREAS there are no moneys in the Sinking Fund, and no
taxes levied now available for the payment of said Warrants; and,
Section WHEREAS, in the judgment of this Council, it is to the
best interests of said City that Funding Bonds be issued on the credit
of the City to the amount of Ninety-five Thousand Dollars ($95,000), to
enable it to retire said amount of outstanding Warrants, and interest
thereon; and,
Section 4. WHEREAS, the total indebtedness of said City, including
the bonds ofthe City, is less than three percent (3%) of the value of the
taxable property within said City, as ascertained by the last assessment
' for State and County taxes previous to the issuing of the bonds herein
proposed; and,
Section 5.. WHEREAS, the holders of said outstanding Warrants, as
herein referred to, are willing to exchange the same, together with inter-
est, for a like amount of the Funding Bonds herein authorized; and,
Section 6. WHEREAS, the City Council has caused to be made deligent
enquiry among the holders of the said Warrants of the City, as to whether
they would accept in exchhnge for their Warrants, Funding Bonds of the
City of Kalispell issued upon the amortization plan, meaning that kind of
a bond on which part of the principal is required to be paid each time in-
terest becomes due and payable, which part payment on the principal increas
at each succeeding installment in the same amount that the interest payment
' decreases, so that the combined amount due in principal and interest on
each succeeding due date remains the same until the bond is paid in full;
and,
Section 7. WHEREAS this enquiry has been of sufficient scope so that
the City Council has determined that such amortization bonds cannot be ne-
gotiated at a reasonable rate of interest davantageous to the people of the
City of Kalispell, for whose benefit the bonds are proposed to be issued;
Fi90
and the issuance of Funding Bonds of.the City of Kalispell, maturing
serially, in exchange for such Warrants, will immediately eggect a mater-
ial reduction of interest payments, and thereby a distinct advantage, in
that respect, to the City and its taxpayers.
NOW, THEREFORE, The City Council of the City of Kalispell, Flathead
County, State of Montana, does ordain: '
Section 1 That the City Council hereby determines that the said
proposed. Ninety-five Thousand Dollars ($95,000) Funding Bonds of the
City of Kalispell cannot be negotiated at a rate of interest advantage-
ous to the -people of the City if issued upon the amortization plan;
and that the City Council #ereby determines that the issuance of
bonds payable serially will be most advantageous to the said City', and
that the issuance of said bonds, payable on the serial plan, in ex-
change for a like amount, with interest, of Warrants of said City,
is deemed for the best interest and advantage of said City,and is
deemed necessary and expedient to enhence, preserve and maintain the
credit of said City.
Section 2. That for the purpose of enabling the City to retire,
fund and refund the valid, legal, outstanding Warrants of said City,
'
hereinbefore referred to, now outstanding, in an amount which, with
interest, totals Ninety-five Thousand Dollars.($95,000.), there are_
hereby authorized and directed to be issued NINETYFIVE THOUSAND
DOLLARS ($95,000) of negotiable coupon bonds of the City of Kalispell;
to be known as "Funding Bonds", in the denomination of $1,000 each,
numbered consecutively from One (1) to Ninetyfive (95) inclusive,
dated the 1st day of May, 1925, and becoming due, in the order of their
number, the lowest number first, as follows:
$5,000 on July let in each of the years 1927 to 1944,
both years inclusive;
$5,000 on May lat, 1945,
provided that said bonds shall be redeemable on and after the interest
'
day next prior to their maturity; said bonds to bear interest at the
rate of Five Percent (5%), payable semiannually on the first day of
January and July of each year; both prinoipal and interest on said
bonds to be made payable at the office of the National City Bank,
New York City, New Yort
Section j. That the said funding ponds and coupons attached shall
be signed by the Mayor and the City Clerk, and sealed with the City
seal, and that the form of said bond and the Clerk's Certificate to
197
be endorsed thereon, shall,be substantially as follows:
No.
UNITED STATES OF AMERICA
STATE OF MONTANA
CITY OF KALISPELL'.
I
FLATHEAD COUNTY,
FUNDING BOND.
$1,000.00
KNOW ALL MEN BY THESE PRESEidTS That the City of Kalispell in the
County of Flathead, State of Montana, for value received hereby promises
to pay to bearer
ONE THOUSAND DOLLARS
'lawful money of the United States of America on the 1st day of July 1927,
with interest on said sum from the date hereof until paid at the rate
of Five Percent.(5%) per annum, payable semiannually, on the let day
of January and July in each year, on the presentation and surrender of
theinterest coupons hereto attached. Both principal and interest of
said bond are hereby made payable at the offive of the NATIONAL CITY BANK
' New York City, Mew York.
This bond is redeemable at the option of the City, ana in the manner
prescribed by law, on and after the interest day next prior to its matur-
ity.
THIS BOND is issued by the City of Kalispell for the purpose of
funding and retiring a like amount, includinginterest, of valid outstand-
ipg Warrants of said City, under the authority of and in full compliance
with the statutes and laws of the State of Montana thereunto enabling,
and in conformity with resolution of the City Council of said City duly
adopted.
AND IT IS HEREBY CERTIFIED AND RECITED That all acts, conditions
and things required by the laws and constitution of the State of Montana
' to be done prededent to and in the issuance of this bond, have been pro-
perly done, happened and been performed in regular and due form, as re-
quired by law, and that the total indebtedness of said City, including
this bond, does not exceed the constitutional or statutory limitations.
IN TESTIMONY WHEREOF The City Council of the City of Kalispell,
Flathead County, State of Montana has caused this bond to be signed by
the Mayor and by the City Clerk, with the seal of the City hereto affixed
and the coupons hereto attached to be executed by the fac simile signs -
Lures of said officers.
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Mayor, City of Kalispell,
Flathead County, Montana.
City Clerk.
(Form of Coupon)
No.
January
$25.00
'
On the let day of , 19_
The City
of Kalispell, Montana
July
promises to pay to bearer Twenty five
Dollars
($25.00) at the office
of the National City Bank
in the
City of New York. N.Y.
for interest due that day on its
Funding
Bond dated May 1, 1925
No.
Mayor
City Clerk.
Provided that the -:'first interest coupon on each of said bonds shall
be for Eight (8) Months' interest from date of bonds to the first
day of January 1926; and that the 'last coupon of said bonds maturing.
in 1945 shall be for Four (4) Months' interest from Januray 1, 1945
to May 1, 1945. '
(Form to 'Clerk's Certificate to be endorsed on each bond)
STATE OF MONTANA ) ss
COUNTY OF FLATHEAD)
I hereby certify that I have registered the within bond in my
office in the book provided for the purpose as, and in the manner,
required by law'
City Clerk, City of Kalispell 41
Montana.
Said Bonds, when executed, as herein provided, shall be delivered to .
the City Clerk, who shall register the same in the books of his office,
and shall thereupon deliver the same to the holders of the Warrants
in the manner hereafter provided.
Section 4. BE IT FURTHER RESOLVED That upon the execution, as '
required by statute, of the Funding Bonds herein authorized, in the
form hereinbefore provided, and upon the registration thereof by the
Clerk, and his endorsement of such registration upon each bond, the
Treasurer is hereby authorized to deliver any of said Funding Bonds
herein authorized, at one time, or from time to time, without dist-
inction as to the particular serial number so to be delivered from
time to time, in exchange for a like amount, including interest, of
the then outstanding Warrants of said City. That is to say, he shall
count the value of each outstanding Warrant as the face value thereof
with interest to date of exchange, and shall count the value of each
Funding Bond as $1,000., collecting from the recipient of each Funding
Bond theinterest which has accrued there on from the date of said bond
' to date of delivery; and immediately upon making any such exchange, the
Warrants so surrendered shall be cancelled and estinguished as obliga-
tions of the City. The intent of this section is to provide solely
for the exchange of said Warrants now outstanding for the new funding
Bonds as a method of securing the cancellation and retirement of the
said outstanding Warrants, and the City Council hereby finds and
determines that the issuance and delivery of Funding Bonds in exchange
for and to take up the legal outstanding Warrants of the City, in the
_manner and upon the terms set forth in this Section, is deemed for the
best interest and advantage of said City.
Section 5. Inorder to.pay the principal and interest of said
bonds promptly as they respectively mature, the following tax is hereby
' levied upon all
the taxable property in
the city,
such tax to be
irrevocable and
collected as other taxes:
YEAR
PR NCIPAL
1NNTEREST
TOTAL
1
3,0
4_
7
1927
5,000
4,500
9,500
1928
5,000
42,250
91250
1929
5,000
41000
91000
1930
5,000
3,750
9,750
1931
5,000
3,500
8,500
1932
5,000
3,250
89250
193
5,000
3,000
6,000
193
52000
29750
7,750
19355
5,000
2,500
7,500
1936
5,000
21250
71250
1937
5,000
21000
7,000
1939
5,000
1,750
6,750
193j9
5,000
1,500
6,500
1940
5,000
19250
61250
1941
5,000
12000
69000
1942
750
5,750
5,000
500,
5,500
194
5,000
167
5,167
'
Section 6.
That this Ordinance is
necessary
for the preservation
of the peace, health
and safety of the
City of Kalispell,
and shall be
in force and effect
from and after its
passage and
publication .
Approved:
Mayor, City of
Kalispell, Montana
The foregoing
Ordinance was duly read
and a motion
to adopt the
same was made by
Councilman
Said motion
was seconded
194
by and upon being put to a vote the following
voted in favor: ofthe motion to adopt the said Ordinance:
There was no vote in opposition. Whereupon the Ordinance was
declared duly adopted.
APPROVED:
Mayor, City of Kalispell, Montana.
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