Resolution 4606 - Solid Waste System Revenue Bonds2262
CERTIFICATE AS TO SUPPLEMENTAL RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell,
Flathead County, Montana (the "City"), hereby certify that the attached Supplemental Resolution is a true
copy of Supplemental Resolution No. 4606 , entitled: "SUPPLEMENTAL RESOLUTION RELATING
TO S 159,265.00 SOLID WASTE SYSTEM REVENUE BONDS, SERIES 2001; AUTHORIZING THE
ISSUANCE, AWARDING THE SALE AND FIXING THE TERMS AND CONDITIONS THEREOF
AND CREATING SPECIAL FUNDS AND ACCOUNTS AND PLEDGING CERTAIN REVENUES AS
SECURITY THEREFOR" (the "Supplemental Resolution"), on file in the original records of the City in
my legal custody; that the Supplemental Resolution was duly adopted by the City Council of the City at a
regular meeting on the 19th day of March, 2001, and that the meeting was duly held by the City Council
and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required
by law; and that the Supplemental Resolution has not as of the date hereof been amended or repealed.
I further certify that, upon vote being taken on the Supplemental Resolution at said meeting, the
following Council Members voted in favor thereof: Jim Atkinson, Don Counsel], Randy Kenyon, Duane
Larson Fred Leistiko, Doug Scarff , Ron Van Natta and Mayor Wm. E. Boharski ; voted against the
same: 0 ; abstained from voting thereon: 0 ; or were absent: Dale Haarr. .
WITNESS my hand officially this 19th day of March, 2001.
City Clerk
E
2263
SUPPLEMENTAL RESOLUTION NO. 4 6 0 6
SUPPLEMENTAL RESOLUTION RELATING TO $159,265.00 SOLID WASTE
SYSTEM REVENUE BONDS, SERIES 2001 AUTHQRIZING THE ISSUANCE,
AWARDING THE SALE AND FIXING THE TERMS AND CONDITIONS
THEREOF AND CREATING SPECIAL FUNDS AND ACCOUNTS AND
PLEDGING CERTAIN REVENUES AS SECURITY THEREFOR
BE IT RESOLVED by the City Council of the City of Kalispell, Montana, as follows:
Section 1. Definitions Authorizations and Findings.
1.0I . Definitions. The terms defined in this Section 1.01 shall for all purposes of this Supplemental
Resolution have the meanings herein specified, unless the contest clearly otherwise requires:
Act shall mean Montana Code Annotated, Title 7, Chapter 7, Parts 44 and 45, as heretofore and
hereafter amended or supplemented.
Board of Investments shall mean the Board of Investments of the State of Montana, or any successor to
its functions under State law.
Bonds shall mean the Series 2001 Bonds and all outstanding bonds of the System.
Bondholder shall mean the Board of Investments.
Band Register shall mean, with respect to the Series 2001 Bonds, the registration books maintained by
the Clerk/Treasurer pursuant to Section 4.02.
Business Day shall mean any day other than a Saturday, Sunday or other day on which commercial
banks located in the City in which the principal office of the Registrar are not open for business or are authorized by
law to close.
City shall mean the City of Kalispell, Montana, its successors and assigns.
Council shall mean the City Council of the City or any successor governing body of the City.
Fiscal Year shall mean the period commencing on the first day of July of any year and ending on the
last day of June of the next year, or any other specified twelve-month period, authorized by law and specified by the
Council as the fiscal year of the City.
Holder shall mean a Bondholder.
Interest Pavment Date shall mean a date specified in the Bonds and in this Supplemental Resolution as
a fixed date for payment of an installment of interest on any of the Bonds.
Maturi shall mean, when used with respect to any Bonds, the date on which the principal of such
Bonds becomes due and payable as therein or herein provided, whether at its Stated Maturity or if by early redemption.
period. Net Revenues shall mean the Revenues for a specified period less the Operating Expenses for the same
2001 Project shall mean the improvements to the System described in Section 1.03.
Operating Expenses shall mean the current expenses, paid or accrued, of operation, maintenance and
minor repair of the System, excluding interest on the Bonds and depreciation, as calculated in accordance with
■ generally accepted accounting principles, and shall include, without limitation, administrative expenses of the City
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Principal and Interest Requirements shall mean, with respect to any Bonds and for any Fiscal Year, the
amount of principal of and interest on such Bonds due and payable during such Fiscal Year.
Principal Payment Date shall mean the Stated Maturity of principal of any serial bonds.
Project shall mean an improvement, betterment, reconstruction or extension of the System, including,
without limitation, the 2001 Project.
Redemption Date when used with respect to any Bonds to be redeemed shall mean the date on which it
is to be redeemed pursuant hereto.
Redemption Price when used with respect to any Bonds to be redeemed shall mean the price at which it
is to be redeemed pursuant hereto.
Registrar shall mean, with respect to the Series 2001 Bonds, the Clerk/Treasurer of the City.
Resolution shall mean the resolution described in Section I.04.
Revenues shall mean all revenues and receipts from rates, fees, charges and rentals imposed for the
availability, benefit and use of the System, and from penalties and interest thereon, and from any sales of property
which is a part of the System and income received from the investment of such revenues and receipts, including
interest earnings on the accounts of the System.
Series 2001 Bonds shall mean the City's Solid Waste System Revenue Bonds, Series 2001, issued in
the original principal amount of $159,265.00 pursuant to this Supplemental Resolution.
State shall mean the State of Montana.
Stated Maturity when used with respect to any Bonds shall mean the date specified in such Bonds as
the fixed date on which the principal of such Bonds is due and payable.
Supplemental Resolution shall mean this Supplemental Resolution -No. .
System shall mean the City's municipal solid waste system, as it may at anytime exist, including any
replacement, expansion and improvement thereof.
Solid Waste System Fund shall mean the fund as created by the City's Resolution No. 4506 on
September 9, 1999.
1.02. Authorization. Under the provisions of Title 7, Chapter 7, Part 44, Montana Code Annotated,
as amended (the "Act"), the City is authorized to issue and sell its revenue Bonds payable during a term not exceeding
forty years from their date of issue, to provide funds for the construction, reconstruction, improvement, betterment and
extension of a solid waste system for the City (the System) provided that the Bonds and the interest thereon are to be
payable solely out of the income and revenues to be derived from rates, fees and charges for the services, facilities and
commodities furnished by such solid waste system, and are not to create any obligation for the payment of which taxes
may not be levied except to pay for services provided by such solid waste system to the City.
1.03. The 2001 Project. The City has determined the necessity of upgrading the System by the 2001
Project, The 2001 Project consists of the purchase of a 2001 Volvo Garbage Truck. The estimated cost of the Project
is $159,265.00 with the City receiving approximately $159,265.00 in Bond proceeds. The City will fund the reserve
requirement of $15,926.50.
1.04. Outstanding Bonds and Resolutions 1n accordance with the Act, as amended, and pursuant to
Resolution No. 4506 (the "Original Resolution") adopted by the Council on September 9, 1999, the City issued
$145,000.00 of Solid Waste System Revenue Bonds, Series 1999. The Original Resolution and this Supplemental
Resolution are referred to herein as the "Resolution". The Outstanding Bonds are the bonds issued pursuant to the ■
Resolution as described and referred to herein_ not innhidina the ?nni AnnA
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1.06. Sale of Series 2001 Bonds. Pursuant to the authority recited in Section 1.02 and for the
purpose of undertaking the 2001 Project, this Council hereby authorizes the issuance of the Series 2001 Bonds. The
Board of Investments has agreed, subject to certain terms and conditions, to lend the City $159,265,00 to finance the
cost of the 2001 Project. The terms and conditions of the loan, as set forth in a Term Sheet dated November 3, 2000,
are reasonable and advantageous to the City and are hereby accepted.
It is hereby found and determined to be necessary and expedient for the City to issue and sell to the
Board of Investments, pursuant to Montana Code Annotated, Section 7-7-4433(2)(a), the Series 2001 Bonds, to be
designated as the "Solid Waste System Revenue Bonds, Series 2001," in the principal amount of $159,265.00, at a
price equal to its principal amount.
1.07. Recitals. All acts, conditions and things required by the Constitution and laws of the State to be
done, to exist, to happen and to be performed prior to the issuance of the Series 2001 Bonds have been done, do exist,
have happened, and have been performed in due time, form and manner, wherefore it is now necessary for this Council
to establish the form and terms of the Series 2001 Bonds, to provide for the security thereof and to issue the Series
2001 Bonds forthwith.
Section 2. The 2001 Bonds. The Bonds shall be special, limited obligation of the City. Principal of,
premium, if any, and interest on the Bonds shall be payable solely from Net Revenues (other than to the extent payable
out of proceeds of the Bonds). The Bonds shall not be or constitute a pledge of the general credit or taxing powers of
the City of any kind whatsoever. Neither the Bonds nor any of the agreements or obligations of the City contained
herein shall be construed to constitute an indebtedness of the State or the City within the meaning of any constitutional
or statutory provisions whatsoever.
Section 3. Form of the Series 2001 Bonds. The Series 2001 Bonds shall be prepared in substantially
the following form, with such appropriate variations, omissions and insertions as are permitted or required by this
Supplemental Resolution:
[Beginning of Bond Form]
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF FLATHEAD
CITY OF KALISPELL
SOLID WASTE SYSTEM REVENUE BONDS
Series 2001
No. R- I
$159,265.00
FOR VALUE RECEIVED, THE City of Kalispell (the "City"), a duly organized municipal corporation
of the State of Montana, acknowledges itself to be specially indebted and hereby promises to pay, solely from the Debt
Service Account of its Solid Waste System Fund, to the Board of Investments of the State of Montana (the "Board of
Investments"), or registered assigns (the "Owner'), the principal sum of ONE HUNDRED FIFTY-NINE THOUSAND
TWO HUNDRED SIXTY-FIVE DOLLARS (S 159,265.00), in installments as set forth in Exhibit A attached, and.to
pay interest thereon, solely from the Debt Service Account, at an interest rate per annum equal to the Variable Rate (as
hereinafter defined). Principal and interest are payable in semiannual installments on each Payment Date (as
hereinafter defined), with the principal payable on such Payment Dates in the respective amounts set forth in Exhibit A
hereto (which, is hereby incorporated herein and made a part hereof), with interest then accrued and unpaid on the
outstanding principal amount hereof. All outstanding principal, together with accrued and unpaid interest hereon, shall
be payable on the final Payment Date. As used herein, "Payment Date" means each February 15 and August 15,
commencing August 15, 2001 and concluding August 15, 2006. The installments of principal and interest are payable
at the office of U.S. Bank Trust National Association MT (formerly known as First Trust Company of Montana
National Association) as trustee fnr the TNTFRrAP PTnerra— :., c+ D.,..i _.L__ __t_ - - ..
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Outstanding principal installments of the Series 2001 Bonds shall bear interest from the date thereof
until paid at the Variable Rate (as hereinafter defined). as such may be adiusted.from time to time as hereinafter
provided. Until the initial Adjustment Date (as hereinafter defined), the Variable Rate shall be four and seventy-five
hundredths percent (4.75%) per annum. Thereafter, for each Adjustment Period (as hereinafter defined), the Variable
Rate shall be the rate per annum equal to the interest rate then borne by the Board of Investments' INTERCAP
Program as of the Adjustment Date, but in no event to exceed fifteen percent (15.00%) per annum. As used herein,
"Adjustment Date" means February 15 in the years 2002 through 2006, and "Adjustment Period" means the period
beginning on an Adjustment Date and ending on the day before the next succeeding Adjustment Date or the final stated
maturity of the Series 2001 Bonds, whichever is earlier; provided that if the Series 2001 Bonds ace not paid at the final
stated maturity, the final Adjustment Period with respect to the Series 2001 Bonds shall extend until all principal
installments hereof are paid or provision has been duly made for their payment.
The City may redeem any installment of principal of the Bonds on any Business Day at a price equal to
the principal amount to be redeemed plus interest accrued to the date of redemption provided that the City gives at least
thirty days notice to the Holder.
The Bonds shall be registered in the name of the holder on the Bond Register ofthe City kept by the
Clerk/Treasurer as Bond Registrar. The Bonds are not transferable_
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that the City will prescribe
and collect reasonable rates and charges for all services and facilities afforded by the System; including all additions
thereto and replacements and improvements thereof, and has created a special Solid Waste System Fund into which the
Revenues (as defined in the Supplemental Resolution) of the System will be paid, and a separate and special Debt
Service Account in that fund, into which will be credited periodically, at least once in each calendar month, Net
Revenues of the System then on hand (the gross revenues remaining after the payment of Operating Expenses of the
System) an amount not less than the installment next payable on the Series 2001 Bonds, and that it will deposit to the
Reserve Account in the Solid Waste System Fund upon the issuance of this Series 2001 Bonds 515,926.50 (the Reserve
Requirement (as stated in the Supplemental Resolution), and thereafter, from each monthly apportionment, from
remaining Net Revenues after the required credits to the Debt Service Account such additional amounts as may be
necessary to maintain therein a balance equal to the Reserve Requirement; that the Debt Service Account and the
Reserve Account will be used only to pay the principal of, premium, if any, and interest on Bonds; that the rates and
charges for the System will, from time to time be made and kept sufficient to provide Net Revenues (Revenues less
Operating Expenses, as defined in the Supplemental Resolution) for each Fiscal Year at least equal to the amount of
principal and interest payable on the Series 2001 Bonds to maintain the balance in the Reserve Account at,the Reserve
Requirement, to pay promptly the reasonable current expenses of operating and maintaining the System and to provide
reserves for the repair and replacement of the System; that all provisions for the security of the holder of the Bonds set
forth in the Supplemental Resolution will be punctually and faithfully performed as therein stipulated; that all acts,
conditions and things required by the Constitution and laws of the State of Montana and the ordinances and
Supplemental Resolutions of the City to be done, to exist; to happen and to be performed in order to make the Bonds
valid and binding special obligations of the City according to the terms have been done, do exist have happened and
have been performed as so required; and that the Bonds and the interest and premium, if any, hereon are payable solely
from the Net Revenues of the System pledged and appropriated to the Debt Service Account and do not constitute a
debt of the City within the meaning of any constitutional or statutory limitation or provision and the issuance of the
Series 2001 Bonds do not cause either the general or the special indebtedness of the City to exceed any constitutional
or statutory limitation.
IN WITNESS WHEREOF the City of Kalispell, Flathead County, State of Montana, by its City
Council, has caused the Bonds to be executed on its behalf by the signatures of the Mayor and countersigned by the
City Clerk, sealed with the official corporate seal of the City, and has caused the Bonds to be dated as of
, 2001.
City of Kalispell, Montana
E
By
Mavor
2268
FW.40111.1V
SCHEDULE OF PRINCIPAL INSTALLMENTS
PAYABLE ON THE SERIES 2001 BONDS
Payment Date
I Principal
August 15, 2001
$26,544.00
August 15, 2002
26,544,00
August 15, 2003
26,544.00
August 15, 2004
26,544.00
August 15, 2005
26,544.00
August 15, 2006
26,545.00
[end of bond form]
Section 4. Terms of the Series 2001 Bonds.
4.01. Date, Maturity and interest. The Series 2001 Bonds to be issued and sold pursuant to this
Supplemental Resolution shall be designated Solid Waste System Revenue Bonds, Series 2001, shall be in the principal
amount of $159,265.00, may be several in number, shall be dated as of the date of delivery to and payment therefor by
the Board of Investments, and shall bear interest from the date of issuance of the Series 2001 Bonds at the rate per
annum equal to the Variable Rate (as hereinafter defined), as such may be adjusted from time to time as hereinafter
provided. Interest shall be computed on the basis of the actual number of days in the year and the actual number of
days outstanding. Principal and interest are payable in semiannual installments on each Payment Date (as hereinafter
defined), with principal payable on such Payment Dates in the respective amounts set forth in Exhibit A hereto (which
is hereby incorporated herein and made a part hereof), with interest then accrued and unpaid on the outstanding
principal amount hereof. All outstanding principal,. together with accrued and unpaid interest hereon shall be payable
on the final Payment Date. As used herein, "Payment Date' means each February IS and August 15 commencing
August 15, 2001.
Outstanding principal installments of the Series 2001 Bonds shall bear interest from the date thereof until paid
at the Variable Rate, as such may be adjusted from time to time as hereinafter provided. Until the initial Adjustment
Date (as hereinafter defined), the Variable Rate shall be four and seventy-five hundredths percent (4.75%) per annum.
Thereafter, for each Adjustment Period (as hereinafter defined), the Variable Rate shall be the rate per annum equal to
the interest rate than borne by the Board of investments' INTERCAP Program as of the Adjustment Date, but in no
event to exceed fifteen percent (15.00%) per annum. As used herein, "Adjustment Date" means February 16 in the
years 2002 through 2006 and "Adjustment Period" means the period beginning on an Adjustment Date and ending
on the day before the next succeeding Adjustment Date or the final stated maturity of the Series 2001 Bonds,
whichever is earlier; provided that if the Series 2001 Bonds are not paid at the final stated maturity, the final
Adjustment Period with respect to the Series 2001 Bonds shall extend until all principal installments hereof are paid or
provision has been duly made for their payment.
4.02. Registration. The Series 2001 Bonds shall be fully registered as to both principal and
interest and shall be registered in the name of and payable to the Board of Investments. 1.
4.03. Redemption. The City may redeem any installment of principal of the 2001 Bonds on any
Business Day at a price equal to the principal amount to be redeemed plus interest accrued to the date of redemption
provided that the City gives at least thirty days notice to the Holder.
1
['I
4.04. Execution and Delivery. The Series 2001 Bonds shall be prepared under the direction of the
City Clerk and shall be executed on behalf of the City by the signatures of the Mayor and countersigned by the City
Clerk, and sealed with the official corporate seal of thenA
City. When) to Y1
he Series 2001 Bonds have been executed, the City ■
[-1Prtr �hnII r`nimi- them to hP rintPri nC of the rlatP nfAPtivP l 9nA Mil -ro-A tthA FIAOrl1 ^-eTniract-manto a T11M}f�JCPr
2269
Section S. Solid Waste System Fund. So long as the City's 2001 Solid Waste Revenue Bonds are
outstanding, the City will administer, maintain and properly account for its Solid Waste System Fund as required under
the City's Resolution No. 4506 adopted September 9, 1999.
Section 9. Covenants.
9.01. General. The City covenants and agrees with the Holder that until all Bonds are fully
discharged as provided in this Supplemental Resolution, it will continue to hold, maintain and operate the System as a
public convenience, free from all liens thereon or on the income therefrom other than the liens herein granted or
provided for, and will maintain, expend and account for its Solid Waste System Fund as provided by City Resolution,
and will not incur a further lien or charge on the income or revenues of the System except upon the conditions and in
the manner prescribed in Section 7, and will perform and cause all officers and employees of the City to perform and
enforce each and all of the additional covenants and agreements set forth in Section 9. The City further covenants to
cause the System to be properly maintained.
9.02. Competing Service. The City will not establish or enfranchise any other facilities in
competition with the facilities of the System.
9.03. Propeqy Insurance. The City will cause all buildings, properties, fixtures and equipment
constituting a part of the System to be kept insured with a reputable insurance carrier or carriers, qualified under the
laws of the State, in such amounts as are ordinarily carried, and against loss or damage by such hazards and risks as are
ordinarily insured against, by public bodies owning and operating properties of a similar character and size; provided
that if at any time the City is unable to obtain insurance, it will obtain. insurance in such amounts and against risks as
are reasonably obtainable.
9.04. Liability Insurance and Surety Bonds. The City will carry insurance against liability of the
City and its employees for damage to persons and property resulting from the operation of the System in such amounts
as the City determines from time to time to be necessary or advisable by reason of the character and extent of such
operation.
9.05. Books and Records. The City will cause proper and adequate books of record and account to
be kept showing complete and correct entries of all receipts, disbursements and other transactions relating to the
System, the Net Revenues derived from its operation, and the segregation and application of the Net Revenues in
accordance with this Supplemental Resolution, in such reasonable detail as may be determined by the City in
accordance with generally accepted accounting practice and principles.
9.06. Cost of Insurance and Accounting. The costs of insurance for the System and the costs of
bookkeeping herein provided for and of the billings and collection of the Revenues shall be payable from the Operating
Account.
9.07. Rates and Charges. While any Bonds are Outstanding and unpaid, the rates, charges and rentals
for all services and facilities furnished and made available by the System to the City and its inhabitants, and to all
customers within or without the boundaries of the City shall be reasonable and just, taking into consideration the cost
and value of the System and the cost of maintaining and operating them, and the amounts necessary for the payment of
all Bonds and the interest accruing thereon, and the proper and necessary allowances for the depreciation of the
System, and no free service shall be provided to any person or corporation. It is covenanted and agreed that the rates,
charges and rentals to be charged to all recipients of solid waste services shall be maintained and shall be revised
whenever and as often as may be necessary, according to schedules such that the revenues for each Fiscal Year will be
at least sufficient to pay the current expenses of operation and maintenance as herein defined, to maintain the operating
reserve herein established, to produce Net Revenues during each Fiscal Year commencing with the Fiscal Year ending
June 30, 2001, 125% of the maximum Principal and Interest Requirements of the Outstanding Bonds and the Series
2001 Bonds in the current or any future Fiscal Year and, if not otherwise so provided, to provide an allowance adequate
for repairs, replacements and depreciation of the System.
If at the close of any Fiscal Year'the Net Revenues actually received during such year have been Iess
■ than required hereby, the City will forthwith prepare a schedule of altered rates, charges and rentals which are just and
2270
established for the System within 60 days after notice of violation thereof (which notice shall be given promptly upon
discovery of any such violation), the solid waste service to the premises involved shall be discontinued and shall not be
resumed until payment of all past -due bills for solid waste service and compliance with all such rules and regulations.
Section 10. Amendments to Supplemental Resolution. As long as any 2001 Bonds are outstanding,
the terms, conditions, and covenants of this Supplemental Resolution may be amended only with the written consent of
the City and the Bondholder.
Section 11. Effective Date: Repeals. This Supplemental Resolution shall become effective upon
passage and all provisions of ordinances, Supplemental Resolutions and other actions and proceedings of the City
which are in any way inconsistent with the terms and provisions of this Supplemental Resolution are repealed,
amended and rescinded to the full extent necessary to give full force and effect to the provisions of this Supplemental
Resolution.
n Passed by the City Council of the City of Kalispell, Montana, on this�day of
` i 0i_L. , 2001.
U _.
Attest:
City Clerk
UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF FLATHEAD
CITY OF KALISPELL
SOLID WASTE SYSTEM REVENUE BONDS
Series 2001
No. R-1
$159,265.00
1
FOR VALUE RECEIVED, THE City of Kalispell (the "City"), a duly organized municipal corporation
of the State of Montana, acknowledges itself to be specially indebted and hereby promises to pay, solely from the Debt
Service Account of its Solid Waste System Fund, to the Board of Investments of the State of Montana (the "Board of
Investments"), or registered assigns (the "Owner', the principal sum of ONE HUNDRED FIFTY-NINE THOUSAND
TWO HUNDRED SIXTY-FIVE DOLLARS ($159,265.00), in installments as set forth in Exhibit A attached, and to
pay interest thereon, solely from the Debt Service Account, at an interest rate per annum equal to the Variable Rate (as
hereinafter defined). Principal and interest are payable in semiannual installments on each Payment Date (as ■
• ,- , _ r.._ _ �� ___: �t .L _ _�__:___-_.-ti.. ,._ .,,,,.e. D.......a..t T1..re� :., tl,a rov„ar.4;.rP 9mntntc cPt fnrt}in �Y}Il}flt A
2271
7-
L
1
The Bonds are issuable pursuant to Montana Code Annotated, Title 7, Chapter 7, Parts 44 and 45, as
amended (the "Act"), and a Supplemental Resolution duly adopted by the City Council of the City on Kalispell (the
"Supplemental Resolution"). The Bonds comprise all of the Bonds of the series designated by its title (the "Series
2001 Bonds") and are issued for the purpose of financing certain improvements (the "Improvements") to the municipal
solid waste system of the City (the "System"), pursuant to and in full conformity with the Constitution and laws of the
State of Montana and Supplemental Resolutions of the City thereunto enabling, including the Act and Supplemental
Resolution, to which Supplemental Resolution reference is made for the terms and conditions, other than those herein
stated, upon which the Bonds are issued and secured. The Bonds, including the interest thereon, are payable solely
from the revenues pledged to the payment thereof and do not constitute a debt of the City within the meaning of any
constitutional or statutory limitation or provision.
Outstanding principal installments of the Series 2001 Bonds shall bear interest from the date thereof
until paid at the Variable Rate (as hereinafter defined), as such may be adjusted from time to time as hereinafter
provided. Until the initial Adjustment Date (as hereinafter defined), the Variable Rate shall be four and seventy-five
hundredths.percent (4.75%) per annum. Thereafter, for each Adjustment Period (as hereinafter defined), the Variable
Rate shall be the rate per annum equal to the interest rate then borne by the Board of Investments' INTERCAP
Program as of the Adjustment Date, but in no event to exceed fifteen percent (15.00%) per annum. As used herein,
"Adjustment Date" means February 15 in the years 2002 through 2006, and "Adjustment Period" means the period
beginning on an Adjustment Date and ending on the day before the next succeeding Adjustment Date or the final stated
maturity of the Series 2001 Bonds, whichever is earlier; provided that if the Series 2001 Bonds are not paid at the final
stated maturity, the final Adjustment Period with respect to the Series 2001 Bonds shall extend until all principal
installments hereof are paid or provision has been duly made for their payment.
EXHIBIT A
SCHEDULE OF PRINCIPAL INSTALLMENTS
PAYABLE ON THE SERIES 2001 BONDS
Payment Date
Principal
August 15, 2001
$26,544.00
August 15, 2002
26,544.00
August 15, 2003
26,544.00
August 15, 2004
26,544.00
August 15, 2005
26,544.00
August 15, 2006
26,545.00
�I
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$761,000
Water System Revenue Bond
(DNRC Drinking Water Revolving Loan Program), Series 2001
City of Kalispell, Montana
CERTIFICATE OF CITY AS TO
SATISFACTION OF CONDITIONS PRECEDENT
FOR ISSUANCE OF ADDITIONAL PARITY BONDS
We, the undersigned, the duly qualified Mayor and City Clerk of the City of Kalispell,
Montana (the "City"), do hereby certify on behalf of the City in connection with the issuance by
the City of its $761,000 Water System Revenue Bond (DNRC Drinking Water Revolving Loan
Program), Series 2001, dated, as originally issued, as of the date hereof (the "Series 2001 Bond"),
as follows:
1. The Series 2001 Bond is issued pursuant to Resolution No. 4273 adopted by the City
Council on June 17, 1996 (the "Original Resolution"), as amended and supplemented by
Resolution No. 4603, adopted by the City Council on February 20, 2001 (collectively, the "2001
Resolution"). The Original Resolution and 2001 Resolution have not been amended or repealed
as of the date hereof.
2. The Series 2001 Bond is being issued to finance the cost of certain improvements to
the City's municipal water system (the "System"), and consists of the 2001 Project (as defined in
the 2001 Resolution).
3. The only bonds or other indebtedness payable from the Net Revenues (as defined in
the Original Resolution) of the System now outstanding is the City's $1,060,000 Water System
Revenue Bonds, Series 1996, dated, as originally issued, as of June 15, 1996 (the "Outstanding
Bonds"), for the purpose of financing the costs of engineering, designing and constructing certain
improvements to the System. No other bonds or indebtedness are outstanding that are payable
from revenues of the System. The Outstanding Bonds are outstanding in the aggregate principal
amount of $855,000.
4. The proceeds of the Series 2001 Bond are expected to be sufficient, with other funds
of the City available therefor as of the date hereof, to pay all costs of the 2001 Project, to fund the
Reserve Account as required by the Original Resolution and to pay costs of issuance of the Series
2001 Bond.
5. The amount now on deposit in the Reserve Account in the Water System Fund (the
"Fund") is $161,848 (after the deposit thereto on the date hereof of $55,848 from proceeds of the
Series 2001 Bond), which is equal to the Reserve Requirement calculated as of the date hereof
assuming the issuance of the Series 2001 Bond.
6. The City is not, as of the date hereof, in default in any payment of principal of or
interest on any Bonds payable from the Fund, and no deficiency now exists in the balances
required by the Original Resolution or the 2001 Resolution to be maintained in any accounts
within the Fund. To the best of our knowledge, the City is not in default under any of the other
provisions of the Original Resolution or the 2001 Resolution.
7. Based on the certificate of Denning, Downey & Associates CPA's, P.C., as
Independent Consultant to the City, dated as of March, 2001, a copy of which is attached
hereto as Exhibit A, the conditions precedent for issuance of the Series 2001 Bond as Additional
Bonds under Section 6 of the Original Resolution have been met.
I�
1
$761,000
Water System Revenue Bond
(DNRC Drinking Water Revolving Loan Program), Series 2001
City of Kalispell, Montana
CERTIFICATE OF INDEPENDENT CONSULTANT
AS TO SATISFACTION OF CONDITIONS PRECEDENT FOR
ISSUANCE OF ADDITIONAL PARITY BONDS
I, the undersigned, an employee of Denning, Downey & Associates CPA's, P.C., do
hereby certify on behalf of the City of Kalispell, Montana (the "City") in connection with the
issuance by the City of its $761,000 Water System Revenue Bond (DNRC Drinking Water
Revolving Loan Program), Series 2001, dated, as originally issued, as of the date hereof (the
Series 2001 Bond"), as follows:
2273
1. We are a professional accounting firm and with respect to the City, we do not have any
direct financial interest or any material indirect financial interest in the City, other than the
Payment to be received under a contract for services to be performed by us and we are not
connected with the City as an officer, employee, promoter, trustee, partner, director, underwriter
or person performing similar functions.
2. The Series 2001 Bond is issued pursuant to Resolution No. 4273 adopted by the City
Council on June 17, 1996 (the "Original Resolution"), as amended and supplemented by
Resolution No. 4603, adopted by the City Council on February 20, 2001 (collectively, the "2001
Resolution"). The Original Resolution and 2001 Resolution have not been amended or repealed
as of the date hereof.
3. The Series 2001 Bond constitutes a parity bond within the meaning of Section 6.01 of
the Original Resolution.
4. The Series 2001 Bond is being issued to finance the cost of certain improvements to
the City's municipal water system (the "System"), and consists of the 2001 Project (as defined in
the 2001 Resolution). Based on the maximum authorized principal amount of the Series 2001
Bond, the expected debt service payable on the Series 2001 Bond is attached as Exhibit
5. The only bonds or other indebtedness payable from the Net Revenues (as defined in
the Original Resolution) of the System now outstanding is the City's $1,060,000 Water System
Revenue Bonds, Series 1996, dated, as originally issued, as of June 15, 1996 (the "Outstanding
Bonds"), for the purpose of financing the costs of engineering, designing and constructing certain
improvements to the System. No other bonds or indebtedness are outstanding that are payable
from revenues of the System. The Outstanding Bonds are outstanding in the aggregate principal
amount of $855,000. The combined debt service for the Outstanding Bonds and the Series 2001
Bond is as shown on Exhibit B hereto.
6. The proceeds of the Series 2001 Bond are expected to be sufficient to pay all costs of
the 2001 Project and to pay costs of issuance of the Series 2001 Bond.
7. Based on preliminary financial statements of the City for the fiscal year ended June 30,
2000 (which are attached as Exhibit C , I hereby certify that the Net Revenues of the System, as
defined, computed and adjusted as provided in Section 6.01 of the Original Resolution, for the
fiscal year ending June 30, 2000, equaled $298,398, which is not less than 125% of the
maximum fiscal debt service payable on the Outstanding Bonds and the Series 2001 Bond
proposed to be issued ($161,848 X 125% = $202,3I 0).
8. The amount now on deposit in the Reserve Account in the Water System Fund (the
"Fund") is $106,000 and is equal to the lesser of. (i) 10% of the original principal amount of all
series of Bonds then outstanding, or (ii) an amnunt P.n„al t� the .r,9..;,.,,,......:_ .:__y _r __
2274 STATE OF MONTANA Exhibit A
GENERAL OBLIGATION BONDS
DRINKING WATER
(REVOLVING FUND PROGRAM) SER Ol
BORROWER: Kalispell
PROJECT NAME:
FINAL LOAN PAYMENT:
7/1/2020
LOAN COMMITMENT:
$761,000
# OF LOAN PAYMENTS:
40
LOAN AMOUNT:
761,000
PROJECT NUMBER:
INTEREST RATE:
4.00%
DATE OF FUNDING:
3/20/2001
PAYMENT
LOAN LOSS ADM ExPENSE
INTERIM
PRINCIPAL
0/S LOAN
TOTAL AMOUNT
DUE
RESERVE
SURCHARGE
PAYMENT
PAYMENT
BALANCE
OF PAYMENT
1
7/1/2001
2,135.03
1,601.27
4,803.81
13,000.00
748,000.00
$21,540.11
2
1/112002
3,740,00
2,805.00
8,415.00
13,000.00
735,000.00
$27,960.00
3
7/1/2002
3.675.00
2,756.25
8,268.75
13,0w.00
722,000.00
$27,700.00
4
l/l/2003
3,610.00
2,707.50
8,122.50
13,000.00
709.000.00
$27,440.00
5
7/1/2003
3,545,00
2,658.75
7,976.25
14,0D0.00
695,000.00
$28,180.00
6
I/1/2AW
3,475.00
2,606.25
7,818.75
14,000.00
681,000.00
$27,900.00
7
711/2004
3,405.00
2,553.75
7,661.25
14,000.00
667,000.00
$27,620 00
8
111/2005
3,335.00
2,501.25
7,503.75
14,000.00
653.000.00
$27,340.00
9
7/1/2005
3,265.00
2,448.75
7,346.25
15,000.00
638,000.00
$28,060.00
10
l/l/2006
3,190.00
2,392.50
7,177,50
15,000.00
62300.00
$27,760.00
11
7/l/2006
3,115.00
2,336.25
7,008.75
15,000.00
6M.000.00
$27,460.00
12
l/l/2007
3,040.00
2,280.00
6,840.00
16,000.00
592,000.00
$28,160.00
13
7/l/2007
2,960.00
2,220.00
6,660.00
16,000.00
576.000.00
$27,840.00
14
1/1/2008
2,880.00
2,160.00
6,480.00
16.000.00
560.000.00
$27,520.00
15
7/1/2008
2,900.00
2,100.00
6,300.00
17,000.00
543.000.00
$28,200.00
16
1/112009
2,715.00
2,036.25
6,108.75
17,000.00
526,000.00
$27.860.00
17
71112009
2,630.00
1,972.50
5,917.50
17,000,00
509,000.00
$27.520.00
18
1/l/2010
2,545.00
1,908.75
5,726.25
18,000.00
491.000.00
$28,180.00
19
7/l/2010
2,455.00
1,841.25
5,523.75
18,000.00
473,000.00
$27,820.00
20
1/1/2011
2,365.00
1,773.75
5,321.25
18,000.00
455,000.00
$27,460.00
21
7/l/2011
2,275.00
1,706.25
5,118.15
19,000.00
436,000.00
$28,100.00
22
1/1/2012
2,180.00
1,635.00
4.905.00
19,000.00
417,000.00
$27,720.00
23
7/1/2012
2,085.00
1,563,75
4.691.25
19,000.00
398.000.00
$27,340.00
24
1/1/2013
1,990.00
1,492.50
4,477.50
20.000.00
378,000.00
$27,960.00
25
7/1/2013
1.890.00
1,417.50
4,252.50
20,000.00
358,000.00
$27,560.00
26
1/1/2014
1,790.00
1,342.50
4.027.50
21,000.00
337,000.00
$28,160.00
27
7/1/2014
1,685.00
1.263.75
3,791.25
21,000.00
316,000.00
$27,740.00
28
1/1/2015
1,580.00
1,185.00
3,555.00
22,000.®0
294.000.00
$28,320.00
29
7/l/2015
1,470.00
1,102.50
3,307.50
22,000.00
272,000.00
$27,880.00
30
1/1/2016
1.360.00
1,020.00
3,060.00
22.000.00
250,000.00
$27.440.00
31
7/1/2016
1,250.00
937.50
2,812.50
23,000.00
227,000.00
$28.000 00
32
1/1/2017
1.135.00
851.25
2,553.75
23,000.00
204,000.00
$27,540.00
33
7/1/2017
1,020.00
765.00
2.295.00
24,000A0
180,000.00
$28,080.00
34
1/1/2018
900.00
675.00
2,025.00
24,000100
156,000.00
$27,600.00
35
7/11MI8
780.00
585.00
1,755.00
25,000ft
131.000.00
$28,120.00
36
1/112019
655.00
491.25
1,473.75
25,000 00
106,000.00
$27.620.00
37
7/112019
530.00
397.50
1,192.50
26,000JW
80,000.00
$28.120 00
38
1/2/2020
400.00
300.00
900.00
26,000.00
54,000.00
$27,6W.00
39
7/112A20
270.00
202.50
607.50
27.000 00
27.000.00
$29,080.00
40
1/1/2021
135.00
101.25 i
303.75
27 000A0
0.00
$27 540.00
96,260.03
64.695.02
194,085.06
761,000.00
1,106,040.11
$49,500.11
$55,140.00
$56,080.00
$54,960.00
$55;820.00
$55,620.00
$55,360.00
$56.060.00
$55,700.00
$55,28D.00
$55.820.00
$55,300.00
$55,720.00
$56,060.00
$55.320.00
$55,540.00
$55,680.00
$55,740.00
$55,720.00
$55,620.00
m
Exhibit B
2275
1
1
1996 Bona
WRF $761,000
Total
1998
0
0
0
1999
105,488
0
105,488
2000
106,688
0
106,688
2001
102,975
0
102,975
2002
104,463
49,500
153,963
2003
101,268
55,140
156,408
20041
103,173
56,080
159,253
2005
104,763
54,960
159,723
2006
106,028
55,820
161,848
2007
102,090
55,620
157,710
20081
102,943
55,360
158,303
2009
103,445
56,060
159,505
2010
103,588
55,700
159,288
2011
103,384
55,280
158,664
2012
102,850
55,820
158,670
2013
55,300
55,300
2014
55,720
55,720
2015
56,060
56,060
2016
55,320
55,320
2017
55,540
55,540
2018
55,680
55,680
2019
55,740
55,740
2020
55,720
55,720
20211
55620
55,620
Total I
$ 1,453,142
$ 1,106,040
$ 2,559,182