Tab 18 Ordinance No. 759Z op, W
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ORDINANCE NO, 759
AN ORDINANCE CREATING THE SPECIAL IMPROVD.MIT DISTRICT
MrOLVI'NG FU6D 01"'. THE CITY OF 1��,ALISPELL.' 110i'ITANAt IN
ORDER TO SECUTIE PROMPT PAYMINT OF BONDS3 ISSUED WITH
RESPECT TO IHPROVE�*WTS IN SPECIP-Tv IMPROVDWT DISTRICTS
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OF THE CITY., AND THE INTZBEST ESTABLISHING AN
AND Oil "vir. PART OF 7 `7
V0'C.Ar,,T,F
01C�4v�",'RS AF1"i(jAL4-'.#Y A0TH0R1Z!'JG OR ADVA7',.-""ES
FROf4 THE RVV0�' VING FUN.11) TO THE SPT.C.1 kL -IP-14 "Pli". " �r�T DISTAICT
FUNDS INVOLVED IN AMOMTS TO INIAKE' J"'..NY
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DEFICIENCOY IN THE, :30ND AND ACCOURTS THEMF TO THE
EXTENT THAT FUNDS ARE AVAILABLE, AND TO PROVIDE F=S FO.,'i
THE 'REVOUVM FUND BY ANNUALLY MAKING SUCH TAX LEVY OR'LOAR
FROM TU GENEM FUND AS MAY 'BE NECESSARY TO MEBT T,-4'Tr,4
FINANCIAL REQUIREMENTS THEREOF, SUB.71= TO THE IXAW.741k0l
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LIMITjV_J,;'_`.0N T.MPOSED BY RCM 11-2270" AND PROV.1-DINTG FOR T�
'(7 NO
AC=,,=.A,T10-r1 ;'�PTD '1',1A.1NTENA!"4CE OF A RESERVE IN T11B
FVND ILIN THE AMOUNT NECESSARY FOR PAYMINT AND REDEMPT"Q-
OF BONDS AND INTMST
BE IT ORD:-MUM., 13Y Tj'47 CITY COUNCIL OF THE CITY OF MISPELL3, MONTAN.A.,
AS FOL' LO�-IS:
Section 1. Under and pursuant to the provisions of Sections 11.2269 to
11-2273, inclusive, of the Revised Godes of Montana 1947,-as amended, the:ire is
hereby created and -':"-.db1izhed a special fund which shall be zain-"L'.ained by the
City Treasurer on Vu-_: .-'�.'t%ficial books and records of t'he City, separate from all
other fundc 2 to be known and designated �s the Spec.-" .1 T-�,A,-- District
Revolvl.ng Fund, for the purpose of securing the probip-'�'p pnyt.,nnt of 17,-�?ecial im-
provement district bonds issued in parwnt,of the cost of improveiznr:ats made for
the benefit of special improvement districts of the City,
-ling funds for -the Ro":L Fund
Section 2. For the purpose of prov.Li.
the NLty Council may, in its discretion, from time to time, transfer to the -
PO��� FLmd from the Creneral Fund of the City such amount or amounts as may be
deemed necessary, as loans from the General Fund to the 40*01�0#9 Fund,, and shall,,
in add,-;.tion to such transfers or in lieu tbereof., 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
Fun
d; provided that
such levy, together vith such transfert, 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 up the 'deficiency shall be
loaned7 by order of the Council, by the 1� FNw4 to such d-Jistrict fund and
used,' with the amount then on.hand in the district to pay such bond and
interer.,.V, i4henever any loan is made to any special improvement aistrict fund from
the 90�V�� Fund, the A Fund shall have a lien therefor on all unpaid
assessments and installments of assessments on sucb distr.-Ict:, whether delinquent
or not, and on all moneys thereafter co4pg into such district fund, to the amount
of such -loan., together with interest thereon from the tim�q it was made at the
rate borne by the bond for payment of which, or of interest thereon, such loan
was made; azd whenever there shaIlliq moneya in such district ftwd which are not
required for payment of any bond of such d1strict, or of interest there'oa,, so
much of such m=eys as may be necessary to pqy such loan sball by order of the
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Council be transferred to the Revolving Ptmd. After all bonds issued on any
special improvement district fund have been fully paid, all moneys remaining in
such district fund sball by order of the Council be transferred to and become
part of the Revolving Fund,
Section 4. The Cit.Y of Kalispell has undertaken and agreed :Ln con-
nection with the public of ffering o7' ii-ps Spec. -'#.al improvemen.t. District No. 308 BondS
and dc,!�s hereby covenant, undertvalte and agree with the ho.1ders of these bonds 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 thereom, remain unpaid,,, that
it will annuaJIV authorize loans or advtmces from the Revolving FWd to each fund
from which such bonds are payable (each such fund being referred to below as the
District F=d), and will provide funds for the Revolving Fund by annual tax
levies or lo=s from the General Fund, in accordance with the rolloving procedures;
(a) Separate bond and interest accounts shall be ma:"Lntained on the
official books and records of the Cllty, within each District Fund, Upon the
collection.of the installment of -principal and interest due November 30 in each
year on the special assessments levied and apprcpriated to the District Fund, the
City Treasurer shall credit to the Interest Accoiint so much thereof as may be
necessary to pay interest to bed'bme due on all bcnds 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 PNY the interest due
at anhual interest payment -dates on the bonds issued against the District Fund.
'he Bond Account shall be used, whenever and to the extent that funds are avail-
Lble therein, for the redemption of such bonds in order'of their registration
iurabers , 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 interiest
is due on the bonds payable from the District Fund, is insufficient to pay such
interesi in full. A deficiency shall be deemed to exist in the Bond Account on
jany date on which there are not sufficient roneys in said Account to pay all
principal due on any bonds payable from the District Flund. 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 Pmd, 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 origtnally levied and appropriited
to the Distri , ct Fund, equal to the number of installments of such assessments then
and theretofore due divided by the total number of installments in uhich 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 du ' e date shall issue an order authorizing
-a loan or make sood any deficiency then existing in the Bond Account thereof, to
the extent that Pmds 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 P�mds in which such de"s
ficiendies-then exist,, in proportion to the amounts of the.respective deficiencies
on that datea, Any money subsequently received in the Revolving Fund shall be
alloceted to the Interest Accounts of District F=dg in'which deficienc�es exist
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in proportion to the'amounts of the defici.encies on the respective dates of receipL
of such money, until all interest accrued on special improveTdent district bonds
of the City has been paid, On any date when al'A'. such accrued interest has been
paid,, any balance remainiag in the Revolv`;_.. 'tind shall be loaned or advanced to
the Bond Accounts of District Funds lin which de-C-11.ciencies tht�n exist, -in amounts
proportionate to the respective ainounts of such deficiercie$,
�e) At the same time as the annu..&I. Ievy for general taxes 'Ls certified
"all make a t x evy all the
�or cc�ljection in each year, the City Council .;'. .). a
taxable property with-lin.. -16.*04'a City Of K&Iispell iT; s-%;& ay.3,ount as shall be neces-
sexy, together with any azounts therefore transferred 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 "k-,JXiereaft.,-._, to inaintain at all time,:;, a balance equal
to fifteen per centum of the or"ginal princk.pa." elt;nt o" al"-. outs-to�indin
.4 .4 g issues
of special improvement district bond.<v, subject -Wie maximum 1i;--dtation as to
rate or amount o-l" s-uch tax, kII funds, deri'ved :c'.L-o;% su& ta-x levy, ax.d transfers
shal-11- be :dbly ri ate d to the Revolving Fwic�,, and used onl.y for the
pi.i�oses sel; forth in ordinance, until all special improvemeWk; aistrict
bonds o-s'.' the City and a.11 interest thereon are fully paid-,
Section 5. The balance required in 'SectIon 4(e) to be acc,,.im.uIRted and
maintained ;.n the Re�%,rnlving F=d is determined to I%f.? the vj.'rimum n�-,,,%essary
as a 'Ior and redemption of maturing specia3 improveri,.-,it dit.-,_;trict
bo,ads and i�-.-ztereat 'of the City. Nothing herein shall -Drevent the CIV.,:-
from appropriating to the RevolIving Fund from other fun&s properly ava-lUdZile
therefor amounts in exces's of the minim= reserve establi.-Ehed herein, or from
transferring such excess amounts to the General Pund or using sucb excess amounts
for the purch"e of property aga!LnE;t -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 my time in such manner as to
reduce the reserve in the Revolving F=d below the amount herein,agre.ed to be
maintained. The Revolving Fund vill be deposited in a. -duly qualified depository
bank and sevared 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 atry 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, Thia ordirience'shall be in full force and effect from and
after its passage and approval.
Passed and adopted by the City (�ouncil of the City of Kalispell,,
Montana, this 13thday of May 1968, and approved by the Mayor of said
C it-Y of Kalispell this 13th, day of Y, 1968,
E
At
1, George Beardslee, City Clerk of the C of Kalispell, Montana, do hereby
certify that on the 14th day of May, 8, 1 posted a co of t e foregoing
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ordinance In my office and the same mat posted fo a pert of five,
days and the foregoing Is a true and -a. r ect copy of, the or ance as passed
by the City Council.
city C
,IepVof.the Vity of Kalispell, Montana