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7. Authority to Bid - SID 342 BondsRESOLUTION NO. 4235 A RESOLUTION RELATING TO $209,000 SPECIAL IMPROVEMENT DISTRICT BOND NO. 342 BONDS; AUTHORIZING THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF. BE IT RESOLVED by the City Council (the "Council") of the City of Kalispell, Montana (the "City"), as follows: Section 1. Recitals. (a) Special Improvement District No. 342 (the "District") has been duly and validly created by the City for the purpose of providing certain public improvements (the "Improvements") of special benefit to the properties within the District. (b) It is necessary that special improvement district bonds of the City be issued and sold in an aggregate principal amount of $209,000 (the "Bonds") to finance the costs of engineering, constructing and installing the Improvements, the administrative costs for the District, the cost of making a deposit to the Revolving Fund for the District and costs of issuance of the Bonds. (c) The City is authorized pursuant to Montana Code Annotated, Section 7-12-4204(1), to sell the Bonds at a price less than the principal amount thereof, but including interest thereon to the date of delivery, if this Council determines that such sale is in the best interests of the District and the City. Section 2. Determinations of Public Interest. Pursuant to the authority described in Section 1, this Council hereby determines to fix the minimum price for the Bonds at $209,000 plus interest accrued thereon to the date of delivery. Such minimum bid will enable bidders to bid more efficiently for the Bonds by permitting them to submit their bids based on actual market conditions without adjusting the interest rates thereon to provide compensation for their purchase of the Bonds. This procedure will facilitate the sale of the Bonds at the lowest interest rates, which is in the best interests of the District and the City. Section 3. Terms of the Bonds. This Council hereby authorizes the issuance and sale of the Bonds, to be denominated ISpecial Improvement District No. 342 Bonds", of the City for the purpose of financing the Improvements. The Bonds shall be dated, as originally issued, as of October 1, 1995, and shall bear interest payable semiannually on January 1 and July 1 of each year, commencing January 1, 1996, at a rate or rates designated by the successful bidder at public sale and accepted by this Council. The Bonds shall mature on July 1 in each of the following years and amounts: Year Amount Year Amount 1997 $ 9,000 2005 15,000 1998 10,000 2006 15,000 1999 10,000 2007 15,000 2000 10,000 2008 15,000 2001 10,000 2009 20,000 2002 10,000 2010 20,000 2003 15,000 2011 20,000 2004 15,000 The Bonds shall be issued as serial bonds in the denomination of $5,000 each or any integral multiple thereof of single maturities. Amortization bonds will not be issued. The Bonds shall be issuable only as fully registered bonds and shall be executed by the manual or facsimile signatures of the Mayor, City Manager and Finance Director. The Bonds shall be secured by the Special improvement District Revolving Fund of the City. Section 4. Public Sale. The Bonds shall be sold at a public competitive sale which is hereby called and shall be held at a regular meeting of this Council on September 18, 1995, at 7:00 P.M. The City will receive sealed bids for the Bonds in accordance with the notice of sale hereinafter prescribed. The City Clerk of Council is authorized and directed to cause notice of the sale to be published, as required by Montana Code Annotated, Sections 7-12-4204, 7-7-4252 and 17-5-106, in the Daily Inter Lake, once each week for two successive weeks preceding the week which contains the date of sale. The notice of sale shall be published and mailed in substantially the form set forth as Exhibit A to this resolution and this Council hereby adopts the terms and conditions set forth in such notice of sale as the terms and conditions of the sale of the Bonds. Passed by the City Council of the City of Kalispell, Montana, this 28th day of August , 1995. Attest: City Clerk of Council 2 Mayor