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Tab 11 Ordinance 759 Establishing Revolving Fund228 G'. ORDINAI4CE NO. 759 AN ORDINANCE CREATING, THE SPECIAL IMPROVENMET DISTRICT REVOLVING FU"OD 01' . THE CITY OF VALTSPELL, ITONTANA, IN ORDER TO SE0_, E PROMPT PAYN -T`TT OF BOND: ISSUED WITH RESPECT TO IMPROVE'1ENTS IN SPECI '- IPIPROVEMENT DISTRICT'S OF THE CITY, AND THE TNTEREST T1iiiR?';`5 ESTABLISHING AU ; IRREVOCAP..TZ UND:;.z�TAX"-:.JG AVD AGR ;i?I P; :C ON fir, PART OF j ,:.'. Ci': '`.i TG 1;iSU . OIL'.',ERS AFN(jAL,',Y A0THOR.I. T JG b:,,,%:'; OR ADV;iP4"�:ES FROM THE REVOt VIfiG FUND TO THE SPFrIAL Ir7Pii'✓;" ?T DTi-i RICT FUNDS INVOLVED IN AMOUNTS SUFFICTI F,:71' TO MAKE: 'J:i !D "'J1Y DEFICIEP:CY IN THE BOND AND INTFftI;;;ZT ACCOUNTS THEREOF TO THE EXTENT THAT FUNDS ARE AVAILABLE, AND TO PROVIDE FUNDS FOR THE REVOLVING FUND BY ANNUALLY MAKING SUCH TAX LEVY OR LOAN FROM THE GENERAL FUND AS MAY :BE NECLSrARY TO MEZP TINE FINANCIAL REQUIREMENTS THEREOF, SURjECT TO THE MAX:AzUM LIMITA`-'.0?J IMPOSED BY RCM 11-2270; AND PROV"I'DING FOR TUE, ACCUMULATION AND MAINTENAN'Cr, OF A RESERVE IN THE RE"!0" .NG FUND aN THE AMOUNT NECESSARY FOR PAYITENT AND REDEMPTN). OF BONDS AND INTEREST BE IT ORD:'+.12IT;D BY TIE CITY COUNCIL OF THE CITY OF KALISPELL, MO,ITANA., AS FOLIAWS: Section 1. Under and pursuant to the provisions of Sections 11-2269 to 11-2273, inclusive, of -the Revised Codes of .Montana 1947, as amended, there is hereby created and •" i4blished a special fund which shall be maini:ai.ned by the City Treasurer on ti; fficial books and records of the City, separate from all other funds, to bo known and designated as the Spec'!.' Inr,:,,,,:ment District Revolving Fund, for the purpose of securing the prompt ptLywent of special im- provement district bonds issued in payment. of the cost of imprnver',eats made for the benefit of special improvement districts of the City. Section 2. For the purpose of providing funds for the Revolving Fund the pity 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 - went 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 up the deficiency shall be loaned, by order of the Council, by the Revolving Fund 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 comapg into such district 'fund, to the amount of such loan, 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 shall be 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 -1- 229 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 oz its Specs.al improvement District No.308 Bonds, and dov.0 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 in 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 eollection.of the installment of principal and interest due November 30 in each year on the special assessments levied and appropriated 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 funds 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 -2- 230 QW in proportion to the'amounts of the deficiencies on the respective dates of recelpC 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 Revolvi: • .; 1';tnd shall be loaned o advanced to thy. Bond Accounts of District Funds in which deficiencies than exist, in amounts proportionate to the respective amounts of such deficiencies. (e) At the same time as the annual levy for general taxes is certified collection in each Year, the C-ity Council .;iuilJ make a tax levy (••,I all the taxable property within t,:.e City Of Kalispell ir; s; cii amount s.Ls shall be neces- sary, together with any amounts therefore transferred to the Revolving Fiend 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 tlnereaf+'.• - to ma ..l.tain at all ttme;i , a balance equal to fifteen per centum of the original Princ:;.pa' n;ni. o? al.'•. outr:tandang issues of special improvement district bonds, subject Lice maximum li;-itation as to rate or amount o ^ such tax. All funds derived fi o;a suc1, to c. lei' at;:l transfers shill be irrr-vc:-ably app.:o riated to the Revolving rune, and used on'..y for the purposes set forth in .,his ordinance, until all special improvement district bonds o:'. the City and all interest thereon are fully paid. Section 5. The balance required in Section 4(e) to be acc;imuleted and maintained ;.o the Revolvingg Fund is determined to 1'e the vrii.imum n:cessary as a reserN- for pa;;': _ nt and redemption of maturing., special improver.:'ot district bands and i.A:terest of the Cit.-T. Nothing herein shall prevent the Cit - Cos:,:il from appropriating to the Revolving Fund from other funds properly av&lel?1e therefor amounts in excess of the minimum reserve establi:=.hed 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 ed to be reduce the reserve in the Revolving Fund below the amount herein agre 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 (160) 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 May , 1968, and approved by the Mayor of said A.v ^-P M� , . 1968. L; A 1, George Beardslee, City Clerk of the C of Kalispell, Montana, do hereby certify that on the 14th day of May, 68, 1 posted a co of t e foregoing ordinance in my office and the same emai posted fo a pore of five. days and the foregoing is a true and- ct copy of r athe or ante as passed by the City Council. City CT,. of •the ity of Kalispell, 1 F