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Ordinance 409 - Water Bonds278 OPDINANCE NO. 409 AP; ORDINANCE PROVIDING FOR THE REFUNDING OF WATER BONDS OF THE CITY OF KALISPELL, MONTANA, BY AN ISSUE OF $jlb ,000 REFUNDING IYATE_T' BONDS AND DIRECTING NOTICE OF SALE THERE- OF PROVIDING A FORM OF NOTICE AND PROVIDING FOR A LT Y OF AN ANNUAL TAX TO PAY INSTALLMENTS OF INTEREST AND PRINCIPAL OF SAID BONDS. ' BE IT ORDAINED by the city council of the City of Kalispell: SECTION 1. THAT 77]EPEAS, the City of Kalispell Montana, heretofore on the first day of July, 1913, did issue and sell water bonds in the amount of $175,000.00, $25,000.00 of which were redeemable on and after the first day of July, 1920, and $40,000.00 of which were redeemable on and after the first day of July, 1923, and $110,000.00, of which said bonds numbered from 66 to 175, both inclusive, are redeemable on and after the first day of July, 1928, and are due and payable on the first day of July, 1933, and WHEREAS there is now outstanding of such issue the said water bonds in the amount of $110,000.00, which will become redeemable on the first day of July, 1928, and are due and payable on the first day of July, 1933, and are numbered from 66 to 175, both inclusive, as de- scribed aforesaid, and WHEREAS, there is not now and will not be on July 1st, 1928, the redeemable date of said issue of said water bonds money to the credit of the said city of Kalispell, Montana, applicable to the payment of the said bonds, or any of their, and , WEEREAS, there will not be on July 1st, 1933, sufficient money to the credit of the said city of Kalispell, Montana, applicable to the payment of said bonds, or any of them, and WHEREAS, in the judgment of the city Council of the City of Kalispell, Montana, to levy and collect a tax for the purpose of paying any of said bonds, whether at the said redeemable date of July 1st, 1928, or the date of maturity, July 1st, 1933, would be a hardship and a burden to said City of Kalispell, and =I REA,S, the City Council believes that said bonds may be refunded now at a lower rate of interest than will be possible at any time in the future, prior to the maturity of said bonds, and that it believes that refund- ing bonds may be issued bearing a lower rate of interest than the present bonds and that such refunding bonds can be made payable either upon the amortization plan or on the serial plan throughout the period through which they are to run, either of which plans would greatly benefit the City of Kalispell in the repayment of said indebted- ness of $110,000.00 and would be likely to effect a sub- stantial saving in interest payments, and PEAS$ it is deemed necessary and expedient to issue and sell said bonds at the time as provided ' herein in order to enhance, preserve, and maintain the credit of the said City of Kalispell. NO`-1 TILEREFORE, BE IT ORDAINED by the City Council of the City of Kalispell: SECTION 1. That under the provisions of Sec on 5288 of the Revised Codes of Montana, 1921, we proceed to issue and do issue negotiable refunding orate_ bonds of the City of Kalispell dated the first day of July, 1928, in the amount of J110,000.00, bearing interest at a rate not to exceed five per cent per annum, payable semi-annually during the period of twenty years for the purpose of retiring and paying the said outstand- ing water bonds, numbered 66 to 175, both inclusive, of the City of Kalispell, Montana, issue of July 1st, 1913. 279 SECTION 2. That such bonds be issued and payable on the amortization plan z.s defined by Chapter 38 of the Session Laws of 1923, if bonds of this form can be sold and disposed of at a rate of interest advan- tageous to the people and the City of Kalispell; rand in case such amortization bonds can be sold and negot- iated, then the entire issue shall be put into four bonds in the amount of $25,000.00 each and one addit- ional bond in the amount of 110,000.00 each, all of which shall be payable through an amortization pperiod of twenty years, if the purchaser so desires and so ' states in his bid. SECTION 3. That if the amortization bonds cannot be negotiated at such reasonable rate of interest as will be advantageous to the City of Kalispell, the r�u' serial bonds to be in the aggregate amount of '�110,000.00, consisting of 110 bonds of the denomination of ",1,000.00 each, numbered from 1 to 110, inclusive, dated July lst, 1928, bearing interest at a rate not to exceed five per cent per annum, payable semi-annually on the first day of January andJulyof each gear, said bonds to mature as hereinafter prescribed in the notice of sale, the form of which is hereinafter set forth. That whether amortization or serial bonds are i=sued, both the prin- cipal and interest shall be sayable in lawful money of the United States of America at the office of the City Treasurer of the City of Kalispell, Montana, or at the office of the holder of the fiscal agency for the State of Montana in the City of New York, or, should the State of Montana become the purchaser at said sale, said bonds shall be paid at the office of the State Treasury in the State of Montana, at Helena, Montana. SEC.^ION 4. That said refunding bonds, if issued ' on the amortization plan, shall be redeemable at any time at the option of the said City of Kalispell. If issued on the serial plan, any bond or bonds shall be redeemable six months prior to the maturity thereof. SECTION 5. That the City Clerk of the City of Kalispell is hereby directed to publish at least twenty- eight days preceeding the day hereinafter fixed for the sale of the said bonds and at least once a week there- afte-~ for four successive weeks prior to the date of sale, in the Montana Record Herald, a newspaper of general circulation pu'lished in the State of Montana, a notice calling for bids at said sale of said refunding water bonds in the sum of A110,000.00, which sai d notice shall be in the following form: NOTICE OF SALE CITY OF IL LI^ ELL r'. LNDINv .'. ECNDS NOTICE IS ? fE-y Ch =9 that the City Council of the City of Kalispell of the State of Montana hereby offers for sale the hereinafter described refunding water bonds; that said City Council asks for sealed bids thereon, and that at the City Council Chambers ' in the City Hall of said City, the said City Council will on the twenty-sixth day of March, 1028, at the hour of 8:00 o'clock P. '_:". open sealed bids submitted in conformity hereto, and that the said time and place shall be the time and place of said sale; th-t the ,, City Council hereby reserves the right to reject any or all bids made, and in case said City Council sees fit, it may, at said time and place, after the opening of sealed bids, offer said bonds for sale at public auction, it reserving the right to reje-t any and all bids made. All bids other than by or on behalf of the State Board of Land Commissioners of theState of Montana must be accompanied by a certified check in the sum of Five Thousand Dollars. The said bonds so offered for sale and heretofore referred to are refunding water bonds of the said City of Kalispell, I'vIcntaRa, in the sum of 280 ��110,000.00, bearing interest at a rate not to exceed five der cent per annum garble semi-annually on the first day of January and the First day of July each year, said bonds to be made payable at the office of the Treasurer of the City of Kalispell, or at the option of the purchaser at the fiscal agency for the State of Montana in the City of New York, or, should the State of Montana become the pur- chaser, at the office of the State Treasury of the State of Montana at Helena, Montana; said bonds to be payable in not to exceed twenty years and are issued for the purpose ' of paying outstanding redeemable water bonds of the City of Kalispell, Montana, of the same amount. Such bonds shall be payable on the amortization plan as defined in Chapter 38 of the Session laws of 19239 if such bonds in this form can be sold and disposed of at a reasonable rate of interest, and said amortization bonds are to be redeem- able at any time at the option of the said City of Kalispell, otherwise serial bonds will be issued. Amortization bonds will be the first choice of the City Council in consider- ing bids. In case serial bonds are issued such bonds shall be numbered from 1 to 110, inclusive, and to of the denom- ination of $1,000.00 each and shall mature as follows: On July 1st, 1929, for bonds numbered 1 to 5, inclusive, and five bonds each ,year thereafter until July 1st, 1943, in- clusive; thenceforth, the said bonds shall mature at the rate of seven per year until July 1st, 1948. All of said bonds shall carry the option of payment six months before the maturity thereof. DATED this day of 1928. C. E. Trebell City Clerk. SECTION 6. The City Council is hereby directed I to forward forthwith a copy of the foregoing notice of sale to the Registrar of State Lands of the State of Montana. SECTION 7. when the refunding waterbond issue herein provided for has been sold, this Council shall pro- ceed to prescribe the form of bond to be issued, whether the same be amortization or serial bonds. SECTION 8. That in each year while any of the said bonds shall be outstanding, there shall be levied and collected in accordance with law upon all taxable property within the City of Kalispell, a direct annual tax sufficient in amount to provide for payment of the principal and inter- est falling due on said bonds of the following year, which tax shall be in addition to all other taxes authorized to be levied by the said City of Kalispell, Montana. SECTION 9. That the proceeds for this refund- ing water bond issue in the amount of $110,000.00 sh-ill be used exclusively for the purpose of paying and retiring the aforesaid balance of $110,000.00 on said water bonds of the issue of July 1st, 1913, redeemable July 1st, 1928, and the payment shall be effected and carried out in such manner as is conformable to law and business, whereupon the water bonds now outstanding shall be cancelled. SECTION 10. After these refunding water bonds have been issued this ordinance shall be and remain irre- pealable until this issue and the interest thereon shall have been paid in full, satisfied and discharged. SECTION 11. Due to the shortness of time now existing before said waterbonds are redeemable, an emergency does exist, and this Council does hereby declare that an emergency exists. SECTION 12. This ordinance shall be in full force and effect from and after its passage and approval. Passed by the City Council of the City of 28 T Kalispell, Montana, on this l7th day of February, 1928. Approved by the P.4ayor of the City of Kalispell, Montana, on this 17th lay of February, 1928. R. Pauli e ayor. Attest, C. E. Trekell I City Clerk. STATE OF MON!'ANA ) CITY OF KALISPELL I, C. E. Trekell, City Clerk of the City of Kalispell, do hereby certify that on the 18th.day of February, 1928 I posted a copy of the foregoing ordin- ance in my office and the same remained so posted for a period of five days thereafter, and the foregoing record is a 'true copy of the Ordinance passed by the City Council. Witness my hand this 23rd day of June, 1928. City Clerk.