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09. Resolution 4358 - Fire Truck BondAgenda -August 4, 1997 AGENDA ITEM 9 - RESOLUTION 4358-FIRE TRUCK BOND BACKGROUND/CONSIDERATION: As per our discussion during the budget workshop, there was a desire by the majority of the Council to purchase a Fire Truck within the next budget year. Since we were unable to find the budget amount for the fire truck, an alternative is needed. We have discussed the alternatives and believe the State Loan Program will be the best option for us since the program has little administrative and legal costs associated with it when compared to a small issue general obligation bond. Current Intercap Loan Authorizations are up to ten years. However, I would recommend a five year payoff with a projected principal loan of approximately $200,000 plus interest at 4.75%. This would require annual debt service ranging from approximately $53,000 to $62,000. To achieve the principal and interest funds we must request a levy outside of the normal levy for the general election ballot. We have compiled Resolutions 4358A & B for your consideration. To authorize an additional levy for the fire apparatus not to exceed 5 mills over a 2 year period (Resolution 4358A) or (Resolution 4358B) to allow Authority to Bond $275,000 for a maximum term of 20 years. RECOMMENDATION: RESOLUTION 4358A will authorize the placement of this issue on the City Election Ballot in November and enable funding ($200,000) to be provided through Intercap now rather than Agenda -August 4, 1997 bonding. (Bonding is undesirable since there will be an administrative cost that would be added to this small bond issue.) This, in addition to the $62,000 that we currently have in the budget, should allow us to purchase a fully equipped truck with an estimated cost of $225,000-$250,000. ACTION REQUIRED: Passage of a RESOLUTION must be done to authorize a vote for the additional levy. The vote would be on the election in November. If passed, we could order a truck in late Spring '98 for delivery in Spring/Summer of '99. RESOLUTION NO. -A-3-"A- A RESOLUTION OF INTENTION TO EXCEED THE CURRENT STATUTORY MILL LEVEL BY SUBMITTING TO THE QUALIFIED AND REGISTERED ELECTORS OF THE CITY OF KALISPELL, FOR THEIR APPROVAL, THE LEVYING OF AN ADDITIONAL 5 MILLS OVER THE MAXIMUM STATUTORY AMOUNT FOR A PERIOD OF TWO YEARS TO ENABLE THE CITY OF KALISPELL TO PURCHASE A FIRE TRUCK, AND TO DIRECT DUE AND PROPERTY NOTICE OF SAID ELECTION UNTO THE ELECTORS. BE IT RESOLVED BY THE CI7�r COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. That the City of Kalispell proposes to exceed the maximum statutory levy for The purpose of purchasing a fire truck for use by the City of Kalispell Fire Department, pursuant to Section 7-6-4431, M.C.A. SECTION II. That the City of Kalispell intends to raise by exceeding a maximum statutory levy the sum of Two Hundred Thousand Dollars ($200,000). SECTION III. That the mill levy to be exceeded by the City, should the voters of the City of Kalispell authorize said excess, will be the statutory levy limited by Initiative 105. SECTION VI. The approximate number of mills required to be raised in order to purchase a fire truck is 5 mills, levied over a period of not to exceed two years. SECTION V. The City Clerk of Council and the City Attorney are hereby authorized and directed to take the necessary provisions for submitting the question to the registered electors at the next general election to be held on the 4th day of November, 1997. The authorization herein given shall include but not be limited to preparation of legal notices, publication and posting and preparation of the proper ballots. PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL THIS DAY OF , 1997. Douglas D. Rauthe, Mayor ATTEST: Debbie Gifford, CMC Clerk of Council j\wp\res\firetruck 1 OFFICIAL BALLOT CITY OF KALISPELL BOND ELECTION INSTRUCTION TO VOTERS: Make an X or similar mark in the vacant square before the words "LEVY - YES' if you wish to vote for the levy; if you are opposed to the levy make an X or similar mark in the square before the words "LEVY - NO'. Shall the City Council and Mayor of the City of Kalispell be authorized to levy an additional Five (5) mills over the maximum statutory amount for a period of two years enabling the City to raise $200,000 for the purpose of purchasing a fire truck for use by the City of Kalispell Fire Department? LEVY - YES - For authorizing the levying of an additional Five (5) mills over the maximum statutory levy for the purchase of a Fire Truck. LEVY - NO - Against authorizing the levying of an additional Five (5) mills over the maximum statutory levy for the purchase of a Fire Truck. RESOLUTION NO. 435-8,B- A RESOLUTION TO SUBMIT TO THE QUALIFIED AND REGISTERED ELECTORS OF THE CITY OF KALISPELL, FOR THEIR APPROVAL, ISSUING OF $275,000.00 IN GENERAL OBLIGATION BONDS PLEDGING THE GENERAL CREDIT OF THE CITY OF KALISPELL, FOR THE PURPOSE OF PURCHASING A NEW FIRE TRUCK FOR THE KALISPELL CITY FIRE DEPARTMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. That the City of Kalispell proposes to issue general obligation bonds in the amount of $275,000.00 for the purchase of a new fire truck to be used by the Kalispell City Fire Department. SECTION II. That the issuing of general obligation bonds by the City of Kalispell for the purchase of a new fire truck is authorized under Section 7-7-4401, M.C.A. SECTION TIT. The bonds to be issued, if the issue is approved by the electors shall be in an amount not to exceed $275,000.00 and no bonds sold shall be issued for a longer term than twenty (20) years. SECTION vI. The City Clerk of Council and the City Attorney are hereby authorized and directed to take the necessary provisions for submitting the question to the registered electors at the next general election to be held on the 4th day of November, 1997. The authorization herein given shall include but not be limited to preparation of legal notices, publication and posting and preparation of the proper ballots. PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL THIS DAY OF , 1997. Douglas D. Rauthe, Mayor ATTEST: Debbie Gifford, CMC Clerk of Council j\wp\res\firetruck 1 OFFICIAL BALLOT CITY OF KALISPELL BOND ELECTION INSTRUCTION TO VOTERS: Make an X or similar mark in the vacant square before the words "BONDS - YES" if you wish to vote for the bond issue; if you are opposed to the bond issue make an X or similar mark in the square before the words "BONDS - NO". Shall the City Council and Mayor of the City of Kalispell be authorized to issue and sell General Obligation Bonds, pledging the general credit of the City of Kalispell, in an amount not to exceed $275,000.00 payable over a period of not to exceed twenty (20) years, for the purpose of purchasing a new fire truck for the Kalispell City Fire Department? BONDS - YES - for authorizing the issuance of General Obligation Bonds for the purchase of a new fire truck for the Kalispell City Fire Department. BONDS - NO - against authorizing the issuance of General Obligation Bonds for the purchase of a new fire truck for the Kalispell City Fire Department.