Resolution 2662 - $134,000 Sewer Revenue Bonds - Form and DetailsRESOLUTION NO, 2662
W=MtZAS, at an election hold in the City of Kalispell, on Aprl 3,
1067, Sewer Revenuo Bonds were authorized for the of im?rc--
ments, additions and betterments to the s�awzr to the
provisions of Rosoluzion No. 2608; and,,
WHEREAS, there are certain covenants that ;;hould be addoptcd by the City
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prior to the issuance of the Sewer Revenua Bonds,
NOW, TNZRZFORE, BE IT RESOLVED by the City of Kalispell as foll-olds;
1. That for the purposo of obtaining and providina funds to pay the cost
of construction of additions, iwprovemants and beLtern--Lts Z:0 Cho SQWQ�."
System of said City, and in order to pay the cost of the iissuznce of $aid
Sowcr Revenue Bonds and the costs of all engineering, labor and,
incidental costs, which it 13 estimated will accrue incident to Said
struction, there shall be Issued and sold by the City of KallZIX211, mo:�tana,
SLWOZ RQVQnUQ Bonds in the aggregate principal am&unt of $134,000.-"."',
is the City4s portion of the estimated cross ,and . expense of the forcgcin,
which bonds shall be dated May 1, 1968, and shall bear a rate, or rates,, of
interest of not In excess of six per cent (6%), Payable semi-annual��Y
date, and shall be of the denomination of $1,000.00 each and shall waturQ
and be payable as follows:
$ 6,000.00 in the year 1963
$12,000.00 In the year 1969
$12,000.00 In the year 1970
$10,000.00 in the year 1971
$ 8,000.00 in each of the years 1972 thru 1979
$12,000.00 in the year 1980
$12,000.00 in the year 1981
$ 6,000.00 in the year 1982
The city council of the City of Kalispell,, Montana, raserv— tho rizhz to
ro,�oam any or all bonds at par maturing on or after May ' fiL
.at in each of
the years 1973 to 1032, both and all years therein inclusiva, on any intarV;t
payment date on or after May 1, 1973, in the inverse order of their r=-,iibaring,
highest numbers first, upon and after prior publication of such,notica of
the intention to redeem any of said bonds by publication the,:oof at least
once in a newspaper of general circulation within said City, said publication
to be at least thirty (30) days prior to the date of intend,ad
and by mailing notice of said call at said tirao to the purch,,'-sor, Or
IM
YUY
of said bonds, and upon the date fixed for redemption, interest lipon Lhu
bonds thus called for redemption shall cease to accrue:.
2. There shall be, and there is hereby created and eStabliShod la t'he
office of the Treasurer of the City of NalisP011, MOntanap A Special SQw�r
System Fund, which shall be known and described as the "SZWZ% REVE',7,jL L01�D
REDEMPTION FUND OF 1968" of the City of Kalispell, Montana, into whic:h
Fund for the purpose of paying the principal and interest: of those bonds,
according to their maturities, shall be paid monthly by said City, and tlha
proper officers of said City shall pay monthly, and thin dfij Council, by
this Resolution does hereby promise and agree, and obligatas and bonds tho
City of Kalispell, to set aside and pay out of the gross earnings of the
Sewer System (subject to the primary deductions thereof of sums equal to
the costs and expenses of operation and maintenance of su,oh systuip.i) a
definite sum monthly in every month during the life of said bonds, coaLmencing
with the month the bonds are dated, and until the full payment of said bonds
and all interest, equal in amount (in each such month in each yzar eiurirq,,�
said period of monthly payments) to one -twelfth of the aggrao-ats 4zounu of
bond principal which will be payable during, and at the expiration of, each
year during the life of said bonds, and as specifically set: forth h�raln-
before, plus one -twelfth (in each month) of the bond interest accruing and
being payable within each such year.
It is hereby made the mandatory official duty of the Treasurer of the City
of Kalispell, Montana, for the time being, to maintain said Sewer Revenue
Bond Redemption Fund of 1968, continuously in his offico, and to pay, and
to cause to be paid, into said Sewer Revenue Bond Redemption Fund of 1963,
out of the Revenue of said Sewer System, the foregoing bonds, and the semi-
annual interest thereon, and to apply said moneys for the payment and
retirement of said Sewer Revenue Bonds according to their terms. The
foregoing Sewer Revenue Bond Redemption Fund of 1968, created horeuy, and
the funds paid therein, as required herainbeforq, shall be used so'_ely for
the purpose of the payment of the ptincipal of said bonds authorize4 hereby
as they mature and become payable, and for the payment of tha interest
thereon as the same accrues and becomes payable, as provided in the inte::4~,m;
coupons which shall be attached to said bonds, without prefowoncQ or prior-
ity of the interest upon one bond over another bond maturing ir. a`%y year,
by reason of its nuzbaring, priorlty >Z` 0rl
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The City Council and the corporate authorities of the City of halispQ11,
hereby declare that in fixing the amounts to be paid into said 'Sower Revenue
Bond Redemption Fund of 1968, as aforesaid, they have exerpased due regard
to the cost of operation and maintonanne of said Sewer System and that so
portion of said revenues nor charges have been previously pledzed Zoo any
other Indebtedness.
3. Said City hereby covenants and agrees with the owners and holders of
each of said bonds that the City will establish and collect rates and
charges for said sewer system for As long as any of the $134,000.00 bonds
authorized herein are outstandingo and will make available for the payment
of the principal and Interest of all such bonds as they shall accrue an
amount equivalent to the amount required each year for W principal A&
interest payments due on all such outstanding bonds. The amount "availablc-
for the payment of the principal and interest of all such bonds as the
same shall accrue" is hereby defined as the gross revenues of said sawor
system less expenses of maintenance and operation, but before depreciation.
4. It is the duty of the City to transfer from its Goaaral FuM to the
Sewer Fund, a sum, or sums of money for furnishing the municipality, or aaY
of Its departments, boards or agencies, kith the sarvicks and facilities of
such sewer system.
5. A complete set of books of account of said sewer system shall be kept
in the office of the Clerk of said City and shall be open to Uspaction by
the public at any time during office hours.
6. Additional savor revenue bonds on a parity basis may be issued for any
legal purpose subsequent to this Issue, said suisequently issued revenwa
bonds having a parity of lion on the revenues of the sewer system with this
issue. Said additional sever revenue bonds on a parity basis to be issued
upon the following terms and conditions:
(1) At the time of the issuance of such additional Sewer Revenue
Bonds, there is no deficiency in the Sewer Revenue Bond Redemption
Fund of 1968,'and there are no delinquent bond obligations which
constitute a lion upon the funds arising from rovanuas of the Sever
System as presently constituted or Wroved.
(2) That the City s%all provida'in each Resolution antiorizing the
Issuance of additional bonds hv,03 a parity of lien that fharO 011
IMME
be established for each such issue, o -P.1- Fund to the same extent as
the Special Fund herein provided for.
(3) That at the time of the issuance of such additlo'a,.,,l bonds, the City
shall have on file a certificate from an IndependOnt lic=sed profussloaal
engineer or engineering firm showing that in his, or its Professional
opinion the not Income of the Sewer System as the same may be addod to,
improved or extended out of the proceeds of 'the sale of such additional
revenue bonds, will be equal to the amount required each calendar year
thereafter, to pay the principal and interest on the bonds outstandiDs,
the principal and interest on any revenue bonds which may have been Issued
on a parity therewith, and the principal and Interest on such additional
bonds.
(4) Net income for the purpose of this subparagraph shall be ccnstruad to
mean gross income reduced by expenses or normal maintenance and operatioa,
but Increased by such increased revenue as may reasonably be anticipated
for the next succeeding 365 days, whether through changes in rates,
theretofore authorized, or by additional accounts, or both
(5) The City shall have the power, and reserves the right to issue bonds
having a parity of lien as in this Resolution provided without the certifi-
cate of a certified professional engineer, for refunding purposes only,
provided:
(a) Such refunding bonds may be exchanged for, or their proceeds
are used to retire, prior to maturity an equal amount in principal
value of outstanding bonds, or any part thereof, issued for acquisi-
tion, construction, betterment or extension of the sewer system,
or any part thereof, or any or all other Sewer Revenue Bonds -which
may hereafter be issued on a parity with the bonds herein pre6antly
issued, or any part of said bond issues; and,
(b) Such issuance of refunding bonds does,'not rQquire'a largc-r debt
service payment In any year thereafter over the life of the refund-
ing bonds to be refunded.
7. When for any reason the City of Kalish.-, — any Of its authorized
agencies have not deposited sufficient moneys into the Sower Rovc-.,tia and
Redemption Fund of 1968, and there has been a default In the 012
the principal and interest of the bonds outstanding and payable than, ar,.d
in that event one or any number of the holders of bonds twanty-
five per cent of the outstanding bonds are entitled to the appointmont of
a receiver by the District Court, which Court shall have jurisdiction in
such proceedings and which receiver may enter and take pos4ossion of sa-i4
undertaking, viz., the sewer system, and operate and maintain the same,
prescribe rates, fees or charges subject to the approval of the Public
Service Commission of Montana and collect, receive and apply 411 revan;n,.5
thereafter arising therefrom in the same manner as the City of Kalispell
itself might do.
B. Notice of sale of the foregoing Revenue Bonds of the sum of $134,00000
shall be in substantially the form as shown on attached Exhibit A.
9. That sealed bids for said bonds shall be In conformity with tha Notice
of Sale and will be received by the Clark and by said City at:Iny titaa
prior to 7:30 o'clock P.M. Mountain Timov on Monday, the 4th day of March;�
1968, and as provided In said Notice of Sale.
10. The City Clerk is required to cause publication of the Notice of Sale
at least once at least five (5) days before the data of such sale in a
newspaper of general circulation within said City, said newspaper being
the Daily Inter Lake, which is printed and published ij� Yz'Jispoll, 2lathead
County, Montana, and once weekly in four (4) successive wac'Xs limiiadiately
preceding the sale in the Kalispell News printed in Kalispell, Flathead
County, Montana, which Is the official newspaper of the City of Kallsp;o11,,
and the Clerk is further required to cause publication'of the fGzagoing
Notice of Sale once in a financial newspaper published eitior la,tho City
of Now York, or Chicago, or San Francisco, said publication to be at least
five days before the date of sale.
11. That the form of said bonds and the interest coupons whichshall be
attached thereto, shall be fixed after the time of the opening of the bids
and terms of sale have been dater-imined.
12. A meeting of the Mayor and Council is hereby fixed and ordered to be
held at the time and place fixed for the sale of the foregoing bonds, at
which time the Mayor and Council, In open public meeting at its regular
meeting place in the City Council Chambers in Kalispell, Montan, shall
open and consider the bids which may be rendered for said bcalt; and will
at that time award such bonds to th* successful purchaser, or I" the
discretion of iata Mayor anal Councit, shall reject any and All bids
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PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA,
THIS 15TH DAY OF JANUARY, 1968.
mayo(
Is the undersigned, City Clerk of the City of Kalispell, hereby certify
that the foregoing is a true and coxle�t copy of the resolu'tion duly
passed by the City Council of the it of Kalispell, Mont'a_nA,---4kt a
regular meeting on J nuary 15, 4�961
City of Kalispellv Montana