Tab 26 Ordinance 759" I I
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ORDINANCE NO. 759
AN ORDINANCE CREATING THE SPECIAL IMPROVEMT DISTRICT
REVOLVING FJL'r.D OF T11E CITY OF `,ALISPFJL,, IVNTANA� IN.
ORDER TO SECURE PROln>T PAYWETITT OF BONDS ISSUED WITH
P,ESPECTA To IMPROVDWTS IN SPECI;.L I11PROVaWT DISTRICTS
I I
OX THE CITY., AND THE 1NITEMEST THERF'."'; ESTABLISHING IGN
IRREVOCA'BLE 1j7jN-DAF-,TAK1LNG AND AGRL:�"T�Alla-":T O,'N TUE PART OF rT'.4
CITY TO 136"U.1-7p %'. 7ERS AN1.N'UAL;,Y AUTHORIZT,;G U. OR ADVJ'%._'%'�.0ES
FROM TRE REVG__1jVI1L�G FUND TO THE SPECIAL --',%TT D_;STRICT
FU]'IDS INVOLVED IN A -MOUNTS SUFFIC"IFT:717 TO MAKE G'�O_D A',�-'Y
DEFICInINCY IN rrtT-E BCND AND INTFR"Z,`%T ACCOUINM THEREOF TO THE
EXTENT THAT FUNDS ARE AVAILABLE, AND TO PROVIDE FUNDS FOR
THE REVOLVING FU14D BY A."LiUALLY MAKING SUCH TAX LEVY OR LOAN
FROM THE GENERAL FUND AS MY 'BE NEC&SSAR",r TO MEET TIHTE
FTNANCTAL REOUIRZAMTS THEREOF,) SUBJECT TO Tii-r, IMIAX'-Jul
A.
LIMITAr,:70N IMPOSED BY RCM 11-2270; AAND PROVIDING FOR TF.E
jjT f .
ACCUIMITLATI'C'94; �ID M'AINTEVANCE OF A RESERVE IN T-,..:,E Ro! __'TNG
FUND IN THE AMOUNT NECESSARY FOR PAYIMT AND REDM4PT__U.
OF BONDS AND INTEREST
BE IT ORDATNED BY THE CITY COUNCIL OF THE CITY OF KALISPELL7 MO1`J`TkNA1
AS FOLLOWSO-
Section 1. Under and pursuant to the provisions of Sections 11-2269 to
11-22"3,
inclusive, of the Revised Codes of Montana 1947, as amended, there is
hereby created and e:'ablished a sDecial fund which shall.be maintained by the
City Treasurer on th.-, of'ficial books and records of t1he City, separate from all
other funds', to be knovn and designated as the Spec-42,--, Imn:�ment District
Revolv-ing Pund, for the purpose of securing the promp'c. pWaenl. of special im-
provement district bonds issued in oayment of the cost of improverTIC.3ts made for
the benefit of special improvement districts of the City,
Section 2. For the purpose of provid-ing funds for the Revolving Fund
the tity 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 -'L-#he 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
necessar7 to meet the financial requirements of the Revolving Fund; provided that
such levy, togethervith such transfers, shall not exceed in any one year five
per cen-%.um (5%) of the principal amount of the then outstanding special improve-
ment 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 uD the deficiency shall be
loaned,, by order of the Council, by the Revolving Fund to such district fund an(�
used, T,.,ith the amount then on hand in the district to pay such bond and
intere,c,'Z.. 'Whenever any loan is made to any special improven�ent district fund from
the Revolv-ino., Fund, the Revolving Fund shall have a lien therefor on all unpaid
assessments and installments of assess-ments on such dist-.A.ct, whether delinquent
or not, and on all moneys thereafter comi�ig intoo 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 shallbe moneys in such district
1) 1 fund which a�,e 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
.I-
Council be transferred to the Revolving Fund. After all bonds issued on any
special improvement district fund have been fully paid, &U moneys remaining in
such district fund shall by order of the Council be transferred to and become
part of the Revolving F%md,
Section 4. The CitY of Kalispell has undertaken and agreed in con-
nection with the public offering of its Special improvement District No. 308 Bonds
and does herebi-covenant, undertake and agree with the hoiders of these bonds I and
all other special improvement district bonds to be offdred at public sale in the
future, so long as any s�uch bonds, or any interest 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 folloving procedures:
(a) Separate bond and interest accounts shall be maintained on the
official books and records of the City, within each District Pund. Upon the
collection 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 be&me 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 11-223119
(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 suc,
interest in full. A deficiency shall be deemed to exist in the Bond Account uii
pLny 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 iD 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 Fxmds 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
alloceted to the Interest Accounts of District Funds in which deficiencies exist
-2-
in proportion to the amounts of the deficiencies on the respective dates of receil:o-
of such money,, until all interest accrued on speciaA". 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 Revolvir.� 7und sha.11 be loaned or advanced to
the Bond Accounts of District Funds in which deficiencies then 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
for collection in each year, the City Council 5`iall make -a tax levy on all the
taxable property withAin the City Of KaUspell ir, sLch amount as shall be neces.
sary, together with any amounts therefore transferAred to,the Revolving Fund 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 thereafter to inaintain at all times, a balance equal
to fifteen per centum of the original principalt ,nint of al) outs-t-anding issues
_ L' e Ma J_
of special improvement district bonds, subject Vil X AaUM liz:.itation as to
rate or amdunt of such tax. All funds de-i-ived froz;-, such tax levy and transfers
be irrcvo-.&bIy ap?ropriated to the Revolving Fund, and used onl�y for the
purposes set forth in this ordinance, until all special improvement district
bonds of the City and all interest thereon are fully paid.
Section 5. The balance required in Section 4(e) to be acci-,mulated and
maintained -.n the Revolvinic, Fund is determined to be the m,.-Lnimum n.�F.cessary
as a reservZ" for pay-.-�--_-nt and redemption of maturing special improver,,.-nt district
bonds and interest of the City. Nothing herein shall -prevezit the Cit-�:
from appropriating to the Revolving Fund from other funds properly available
therefor amounts in excess of the minimum reserve established herein, or from
transferring such excess amounts to the General Fund or using such excess amounts
for the purchase of property against which unpaid assessimetts are outstanding
pursuant to RCM 11-2273; but the City expressly covenants and agrees -gith 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
reduce the reserve in the Revolving Fund below the amount herein -agreed to be
mai-nitained. The Revolving Fund will be deposited in a -duly qualified depository
bank and secared at all times as required by RCM 16-2618, but no -time deposit s
shall be made for a period exceeding one hundred eighty (180) days, and the Cit-,'
Council is also authorized to invest all or any portion of the reserve in direc-'.
obligatio,hs 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
City of Ralispell thisl3th, day of Ijay 1968,
(SEAL)
At
C* y Clerk
19 George Beardslee, Cii,:y Clerk of the 5,� of Kalispell, Montana, do hereby
bertify that on the 14th day of May,J,68',911 posted1fa co of t e foregoing
I
ordinance in my office and the same rmwl d poste / a pe!r I of five
d fo
days and the foregoing is a true and- r ect copy of the or ance as passed
by the City Council.,
City CIeWof the Vity of Kalispell,, Montana