Resolution 4223 - Authorize Sale of Bonds for SID 3411121
RESOLUTION NO. 4223
A RESOLUTION RELATING TO $100,000 SPECIAL IMPROVEMENT
DISTRICT BOND NO. 341 BONDS; AUTHORIZING THE ISSUANCE
AND CALLING FOR THE PUBLIC SALE THEREOF.
BE IT RESOLVED by the City Council (the "Council") of the
City of Kalispell, Montana (the "City"), as follows:
Section 1. Recitals.
(a) Special Improvement District No. 341 (the
"District") has been duly and validly created by the City for the
purpose of providing certain public improvements (the
"Improvements") of special benefit to the properties within the
District.
(b) It is necessary that special improvement district
bonds of the City be issued and sold in an aggregate principal
amount of $100,000 (the "Bonds") to finance the costs of
engineering; constructing and installing the Improvements, the
administrative costs for the District, the cost of making a
deposit to the Revolving Fund for the District and costs of
issuance of the Bonds.
(c) The City is authorized pursuant to Montana Code
Annotated, Section 7-12-4204(1), to sell the Bonds at a price
less than the principal amount thereof, but including interest
thereon to the date of delivery, if this Council determines that
such sale is in the best interests of the District and the City.
Section 2. Determinations of Public Interest. Pursuant
to the authority described in Section 1, this Council hereby
determines to fix the minimum price for the Bonds at $97,000 plus
interest accrued thereon to the date of delivery. Such minimum
bid will enable bidders to bid more efficiently for the Bonds by
permitting them to submit their bids based on actual market
conditions without adjusting the interest rates thereon to
provide compensation for their purchase of the Bonds. This
procedure will facilitate the sale of the Bonds at the lowest
interest rates, which is in the best interests of the District
and the City.
Section 3. Terms of the Bonds. This Council hereby
authorizes the issuance and sale of the Bonds, to be denominated
`Special Improvement District No. 341 Bonds", of the City for the
purpose of financing the Improvements. The Bonds shall be dated,
as originally issued, as of September 1, 1995, and shall bear
interest payable semiannually on January 1 and July 1 of each
year, commencing January 1, 1997, at a rate or rates designated
by the successful bidder at public sale and accepted by this
Council. The Bonds shall mature on July 1 in each of the
following years and amounts:
1
1122
Year
Amount
Year
Amount
1997
5,000
2004
5,000
1998
5,000
2005
5,000
1999
5,000
2006
5,000
2000
5,000
2007
10,000
2001
5,000
2008
10,000
2002
5,000
2009
10,000
2003
5,000
2010
10,000
2011
10,000
The Bonds shall be issued as serial bonds in the
denomination of $5,000 each or any integral multiple thereof of
single maturities. Amortization bonds will not be issued.
The Bonds shall be issuable only as fully registered
bonds and shall be executed by the manual or facsimile signatures
of the Mayor, City Manager and Finance Director. The Bonds shall
be secured by the Special Improvement District Revolving Fund of
the City.
Section 4. Public Sale. The Bonds shall be sold at a
public competitive sale which is hereby called and shall be held
at a regular meeting of this Council on August 21, 1995, at 7:00
p.m. The City will receive sealed bids for the Bonds in
accordance with the notice of sale hereinafter prescribed. The
City Clerk of Council is authorized and directed to cause notice
of the sale to be published, as required by Montana Code
Annotated, Sections 7-12-4204, 7-7-4252 and 17-5-106, in the
Daily Inter Lake, once each week for two successive weeks
preceding the week which contains the date of sale. The notice
of sale shall be published and mailed in substantially the form
set forth as Exhibit A to this resolution and this Council hereby
adopts the terms and conditions set forth in such notice of sale
as the terms and conditions of the sale of the Bonds.
Passed by the City Council of the City of Kalispell,
Montana, this 24 day of July , 1995.
Attest:
City Cie Council
2
1123
1
EXHIBIT A
NOTICE OF BOND SALE
$100,000 Special Improvement District No. 341 Bonds
CITY OF KALISPELL, MONTANA
NOTICE IS HEREBY GIVEN that the City of Kalispell, Montana
(the "City"), will sell to the highest and best bidder for cash,
as evidenced by sealed bids, the above -described Bonds drawn
against the funds of Special Improvement District No. 341.
Sealed bids for the purchase of the Bonds will be received
until 11:00 a.m., M.D.T., on Tuesday, the 21st day of August,
1995, at the office of the Finance Director, City Hall, 312 - lst
Avenue East, Kalispell, Montana. At 11:30 a.m., M.D.T. on that
day the bids will be opened and tabulated in the City Council
Chambers, City Hall, 312 - 1st Avenue East, Kalispell, Montana,
and the City Council will consider the bids and award the sale of
the Bonds at 7:00 p.m. on the same day.
The Bonds will be
cost of construction o
"Improvements") within
District No. 341 {the
provisions of Montana
41 and 42, as amended
Purpose and Security
issued for the purpose of financing the
f certain local improvements (the
or for the benefit of Special Improvement
"District"), in accordance with the
Code Annotated, Title 7, Chapter 12, Parts
(the "Act"). The Bonds will be special,
limited obligations of the City and do not constitute general
obligations of the City.
The Bonds are payable primarily from the collection of a
special tax or assessment which is a lien against the assessable
real property within the District benefitted by the Improvements.
The special assessments are payable in equal, semiannual
installments of principal over a 15-year term, with unpaid
installments of the special assessments bearing interest at a
rate equal, in a fiscal year, to the average rate of interest
borne by the then outstanding Bonds, plus one-half of one percent
per annum. The Bonds are further secured by the Special
Improvement District Revolving Fund of the City (the "Revolving
Fund"). The City will agree to make a loan from the Revolving
Fund to the District's fund to make good any deficiency then
existing in the principal and interest accounts therein and to
provide funds for the Revolving Fund by levying a tax or making a
loan from the City's general fund to the extent authorized by the
Act.
1124
1
{
'
I i
Date and Tyoe
The Bonds will be dated, as originally issued, as of
September 10 1995, and will be issued as negotiable investment
securities in registered form as to both principal and interest.
Maturities and Redemption
The Bonds shall mature, subject to redemption, on July 1 in
the following years and amounts:
ear
Amount
Year
Amount
1997
$ 51000
2004
50000
1998
5,000
2005
5,000
1999
5,000
2006
5,000
2000
5,000
2007
10,000
2001
5,000
2008
10,000
2002
5,000
2009
10,000
2003
5,000
2010
10,000
2011
10,000
The Bonds shall be issued as serial bonds in the
denomination of $5,000 each or any integral multiple thereof of
single maturities. Amortization bonds will not be issued.
The Bonds are subject to mandatory redemption, in whole or
in part, on any interest payment date, whenever, after payment of
principal of or interest on the Bonds on such date, there are
funds available for this purpose in the District fund from the
prepayment of special assessments levied in the District or from
unexpended proceeds of the Bonds following completion of the
Improvements. The redemption price is equal to the amount of the
principal installment or installments of the Bonds to be redeemed
plus interest accrued thereon to the date of redemption.
The Bonds are also redeemable at the option of the City on
any interest payment date if there are funds to the credit of the
District fund for the redemption thereon. The Bonds will be
redeemed in the order of the principal installments they
represent. The Bonds shall not be callable from the proceeds of
an issue of refunding bonds before July 1, 2001.
Interest Payment Dates, Rates
Interest will be payable each January 1 and July 1,
commencing January 1, 1997, to the registered owners of the Bonds
as such appear in the bond register as of the close of business
on the 15th day (whether or not a business day) of the
immediately preceding month. All Bonds of the same stated
maturity must bear interest from date of original issue until
1125
paid at a single, uniform rate not exceeding eight percent
(8.00%) per annum, with the maximum difference between the
highest and lowest rate of interest not exceeding three percent
(3.00%) per annum expressed in an integral multiple of 1/8 or
5/100 of 1%. No `B' or supplemental interest shall be allowed.
Bond Registrar. Transfer, Agent
and Paying Agent
The Commission will appoint a registrar to act as bond
registrar, transfer agent and paying agent (the "Registrar").
The bond register will be kept, transfers of ownership will be
effected and principal of and interest on the Bonds will be paid
by the Registrar. The City will pay the charges of the Registrar
for such services. The City reserves the right to remove the
Registrar and to appoint a suitable bank or trust company as
successor.
Deliver�C
Within 30 days after the sale, the City will deliver to the
Registrar the printed Bonds ready for completion and
authentication. The original purchaser (the "Purchaser") of the
Bonds must notify the Registrar, at least five business days
before issuance of the Bonds, of the persons in whose names the
Bonds will be initially registered and the authorized
denominations of the Bonds to be originally issued. If
notification is not received by that date, the Bonds will be
registered in the name of the Purchaser and will be issued in
denominations corresponding to the principal maturities of the
Bonds. On the day of closing, the City will furnish to the
Purchaser the opinion of bond counsel hereinafter described, an
arbitrage certification and a certificate verifying that no
litigation in any manner questioning the validity of the Bonds is
then pending or, to the knowledge of officers of the City,
threatened. Payment for the Bonds must be received by the City
in immediately available funds at its designated depositary on
the day of closing. As a condition of delivery, the Purchaser
must certify to the City in writing the initial reoffering prices
of the Bonds.
Oualified Tax -Exempt Obligations
The Bonds will be designated by the City as "qualified
tax-exempt obligations" within the meaning of Section 265(b)(3)
of the Internal Revenue Code of 1986, as amended (the "Code"),
and financial institutions described in Section 265(b)(5) of the
Code may treat the Bonds for purposes of Sections 265(b)(2) and
291(e)(1)(B) of the Code as if they were acquired on August 7,
1986.
L
1126
Legal Opinion
An
opinion as to the validity
federal
of the Bonds and the
income tax
exclusion from gross income for
purposes and
Montana
individual income tax purposes
of the interest thereon
will be
furnished by Dorsey & Whitney
P.L.L.P., of Missoula,
Montana,
and Minneapolis, Minnesota, as
Bond Counsel. The legal
opinion
will be printed on the Bonds.
The legal opinion will
state that the Bonds are valid and binding special obligations of
the City enforceable in accordance with their terms, except to
the extent
to which enforceability thereof
may be limited by the
exercise
of judicial discretion or by
state or federal laws
relating
to bankruptcy, reorganization,
moratorium or creditors'
rights.
Tune of Bid and Award
Submission of Bids. Sealed bids for not less than $97,000
and accrued interest on the principal sum of $100,000 must be
mailed or delivered to the undersigned and must be received at
the office of the Finance Director prior to the time stated
above. Bidders must bid for all or none of the Bonds.
Basis of Award. The bid authorizing the lowest net
interest cost (total interest on all Bonds from September 1, 1995
to their maturities, less any cash premium or plus any discount),
will be deemed the most favorable. In the event that two or more
bids state the lowest net interest cost, the sale of the Bonds
will be awarded by lot. No oral bid will be considered. The
City reserves the rights to reject any and all bids, to waive
informalities in any bid and to adjourn the sale.
Good Faith Deposit. A good faith deposit (the "Deposit")
in the form of money, cashier's check, certified check, bank
money order, or bank draft drawn and issued by a federally
chartered or state chartered bank insured by the federal deposit
insurance corporation or a financial surety bond in the sum of
$2,000 payable to the order of the City of Kalispell is required
for each bid to be considered. If money, cashier's check,
certified check, bank money order, or bank draft is used, it must
accompany each bid and be delivered to the Finance Director. If
a financial surety bond is used, it must be from an insurance
company licensed and qualified to issue such a bond in the State
of Montana and such bond must be submitted to the City of
Kalispell, to the Finance Director, or its financial advisor
prior to the opening of the bids. The financial surety bond must
identify each bidder whose Deposit is guaranteed by such
financial surety bond. If the Bonds are awarded to a bidder
utilizing a financial surety bond, then that Purchaser is
required to submit its Deposit to the City in the form of a
cashier's check (or wire transfer such amount as instructed by
the City or its financial advisor) not later than 1:00 p.m.,
Mountain Daylight Time, on the next business day following the
award. If such Deposit is not received by that time, the
financial surety bond may be drawn by the City to satisfy the
1127
Deposit requirement. No interest on the Deposit will accrue to
the Purchaser. The Deposit will be applied to the purchase price
of the Bonds. In the event the Purchaser fails to honor its
accepted bid, the Deposit will be retained by the City. No
interest will be allowed on the Deposit. The Deposit of the
unsuccessful bidders will be returned immediately on award of the
Bonds to the Purchaser or after rejection of all bids.
Instructions for wiring Deposit may be obtained from the
City Finance Director, City of Kalispell, P. O. Box 1997,
Kalispell, Montana 59937, (406) 758-7755.
CUSIP Numbers
The City will assume no obligation for the assignment or
printing of CUSIP numbers on the Bonds or for the correctness of
any numbers printed thereon, but will permit such numbers to be
assigned and printed at the expense of the Purchaser, if the
Purchaser waives any delay in delivery occasioned thereby.
continuing Disclosure
Participating underwriters need not comply with paragraph
(b)(5) of Rule 15c2--12 promulgated by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, because the
aggregate principal amount of 'the Bonds and any other bond issues
of the City required to be integrated with the Bonds is less than
$1,000,000. Consequently, the City will not enter into any
undertaking to provide continuing disclosure of any kind with
respect to the Bonds.
Official Statement
Within seven business days after the sale the City will
furnish to the successful bidder without charge 100 copies of the
final Official Statement relating to the Bonds. The successful
bidder must notify the Finance Director in writing within seven
business days after the award of sale of the Bonds if it requires
additional copies of the Official Statement. The cost of
additional copies shall be paid by the successful bidder.
Additional information regarding the District and the Bonds
may be obtained from City Finance Director, City of Kalispell, P.
O. Box 1997, Kalispell, MT 59903, (406) 758-7755.
Dated: Z , 1995.
BY ORDER OF THE CITY COUNCIL
049k Q4-/, ad ow C
City Clerk until
City of Ka s ell, Montana
Publish: August 4, 1995
August 11, 1995