Tab 26 Certified Copy of Ordinance 759August 31, 1995
I, Debbie Gifford, the undersigned, Clerk of the Council of the
City of Kalispell, certify that the foregoing is a true and correct
copy of Ordinance 759, approved by motion by the City Council of
the City of Kalispell at City Hall on May 13, 19680
;'"JAL' I A k(Kd UIA
NI
Debbie Giff-o* CMC
Kalispell Cl O%V) of Council
,-4.40
ORDINANCE 110 - 7 5 9
A1N ORDINANCE CREATING THE SPECIAL IMPROVDAMT DISTRICT
REVOLVING FUND OF THE CITY OF ::ALISPELL, 110,-TTANA� IN.
ORDER TO SECU,7iZ PRO17T PAYJMMrL OF BONDS ISSUED WITH
RESPECT TO I].IPROVE!WTS IN SPECIAL IITPROVPWT DISTRICTS
OF THE CITY, AND THE -INTEREST THER'17,7�%-'; ESTABLISHING AAN
IRREVOCA',R.LE UND F-7i TAKING AND ON THE PART OF THJ7
CI 74�' TO !SSUEd-, OF.-iERS ANNUALLY AUTHORIZTIO�G LOA'V'.�-- OR ADVAA;%'_"ES
FROM THE REVO�,VING FUND TO THE SPECIAL Ir-4PRCoV7'"'_NT D7-.IRICT
. rl
A "%'t V
FLrj'qDS INVOLVED IN AMOUNTS SUFFICIFT"i" TO MaWE &C�)D AJ-i
DEFICIENCY IN THE BCND AND ACCOUNTS THEREOF TO THE
EXTENT THAT FUNDS ARE AVAILABLE, AND TO PROVIDE FUNDS FOR
THE REVOLVING FL94D BY ANINUALLY MAKING SUCH TAX LEVY OR LOAN
FROM THE GENERAL FUND AS MAY 13E NEC&SSARY TO ME71"- TIHIE
I IVIA7t, I
F7NANC1JAL R"EJOUIRDEWTS THEREOF9 SUBJECT TO THEJ \.L U
LIMITArIl ION 1MIFOSED BY RCM 11-2270; AND ?ROVIDING FOR TE.LE
"'D MAINTENANCE OF A RESERVE IN T-HE
ACM1fL7,A'L.& &I iul tf
FLTND 'l-N THE AMOUNT NECESSARY FOR PAY!,TW_ T AND REDE9PT-1U,
OF BONDS AND INTEREST
BE" IT ORDAINED BY T111Z CITY COUNCIL OF THE CITY OF KALISPELLv MONTANA,,
AS FOLLOWS:
Section 1. Under and pursuant to the Drovislons of Sections 11-2269 to
1.1-22'173, inclusive,, of the Revised Codes of Montana 1947, as amended, there is
hereby created and shed a sDecial fund vinich shall be maintained by the
City Treasurer on th--� official books and records of the City, separate from all
other funds, to be known and designated as the Spec-_il.-_! Irq--c-cment District
Revolving -Fund, for the purpose of securing the promp',,- paynenlk: of special im-
provement district bonds issued in payment of the cost of improvemc:its made for
the benefit of special improvement districts of the City4,
Section 2. For the purpose of prov-iding funds for the Revolving Fund
the hty 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 Ithe Revolving Fund, and shall,
in addition to such transfers or in lieu thereof, levv. and collect for the Re-
volving Fund such a tax on all the taxable -oroperty within the Citv' 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-
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 u-D the deficiency shall be
loariedl by order of the Council, by the Revolving Fund to such district fund and
used,, with the amount then on hand in the district to pay suclh bond and
interest. '�&,enever any loan is made to any special improvement district fund from
the Revolvin�o Fund, the Revolving Fund shall have a lien therefor on all unpaid
assessments and installments of assessments on such dist4-.-Lct, whether delinquent
or not,, and on all moneys thereafter comiTg into such district fund, to the amount
of such loan, to -ether 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 moneyB 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 sball by order of the
Council be transferred to the Revolving Fimd. 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 of its Special improvement District No. 308 Bonds,
and does hereby covenant, undertake and agree with the holders of these bonds and
all other special improvement district bonds to be offdred at public sale in the
futurel so long as any Auch 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 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
col-lection of the installment of principal and interest due November 30 in each
year on the special assessments levied and apf ropriated to the District Fund, the
.P
City Treasurer shall credit to the Interest Account so much thereof as may be
nec essary to pay interest to become due on all bonds payable frorn the District
Fund on the then next succeeding interest payment date, and shall cAredit 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 deerned 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 appropri�ted
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.
W The City Council, not less than fifteen days before the date when
interest is due on bonds payable frora 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
in proportion to the amounts of the deficiencies on the respective dates of receiVL
of such money, until all interest accrued on special improvement district bonds
of the City has been paid. On any date vhen all such accrued interest has been
paid,,, any balance remaining in the Revo'lvi.-, - 7und shall be loaned or advanced to
tho Bond Accounts of District Amds in which deficiencies then exist,, in amounts
proportionate to the respective amounts of such deficiencies.
(e) At the sane time as the annua3 levy for general taxes Is certified
lor collection in each year, the City Council s`all make -a tax levy ca all the
taxable proDerty within tAnae CitY Of Kalispell 1L sv.ch amount as shall be neces-
sary, together with any amounts therefore transf eA-A-ed 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 thereaftc:rj to inaintain at all times,,, a balance equal
to fifteen 'Per centum of the original princlipal -),.-,nt col' all.- outstanding issues
of special improvement district bonds , subJect ;.die maximum I-&,,-..-&tation as to
rate or amount o' such tax. All funds de,.rived froizi such tax levy and transfers
s,nc;,_A,...- be ap7"rC.,Driated to the Revolving -Fund,, and used on.1y for the
purposes sct for"Ch in I'this oArdinance, until all special improvement district
bonds of the City and a.11 interest thereon are fully paidt
Section 5. The balance required in Section 4(e) to be acc",-,nulated and
maintained -.n the Revoaving Fund is determined to be the W;- .t n.--t-essary
tzy
as a reserv-, for and reder-ption of maturing special improver. cit di3trict
bonds and initerest of the Cit,-,.,. hothing herein shall -orevent the Cit.-
f -om a- 4 - lable
p-Drop-iating to the Revo'ving Fund from other funds properly av&L.
therefo." 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 assessiments 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
reduce the reserve in the Revolving Fund below the amount herein agreed to be
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 (180) 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
City Of Kali spell. this 13 th, day of Ijay , 1968.
(SEAL)
At
City Clerk
m . a . vof-I
I, George Beardslee, City Clerk of the C of Kalispell, Montana, do hereby
he
certify that on the 14th day of May, i 68,)l posted a co of t e foregoing
ordinance In my office and the same malod posted fo a peri of five
days and the foregoing Is a true and- r ect copy o/fthe or ance as passed
by the City Council.
City CIerV
, /of the gity of Kalispell,, 1,1ontana