Resolution 4234 - Creation of SID 342 - Corporate Way1145
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RESOLUTION NO. 4234
RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 342;
CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL
IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO
THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED
BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER
THE INTERNAL REVENUE CODE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RALISPELL,
MONTANA, AS FOLLOWS:
SECTION I. PASSAGE OF RESOLUTION OF INTENTION.
This Council, on July 24, 1995, adopted Resolution No.
4222 (the °Resolution of Intention"), pursuant to which
this Council declared its intention to create a special
improvement district, designated as Special Improvement
District No. 342 of the City, under Montana Code
Annotated, Title 7, Chapter 12, Parts 41 and 42, as
amended, for the purpose of financing a portion of the
costs of certain local improvements described generally
therein (the "Improvements") and paying costs incidental
thereto, including costs associated with the sale and the
security of special improvement district bonds drawn on
the District (the "Bonds"), the creation and
administration of the District, the funding of a deposit
to the City' s Special Improvement District Revolving Fund
( the " Revolving Fund' ) and the establishment of a reserve
account securing the Bonds in the District fund (the
"Reserve Account").
SECTION II. NOTICE OF PUBLIC HEARING.
Notice of passage of the Resolution of Intention was duly
published on August 2nd and 9th, 1995 and mailed on
August 2nd, 1995, in all respects in accordance with the
law, and on August 21st, 1995, this Council conducted a
public hearing on the creation or extension of the
District and the making of the Improvements. The meeting
of this Council at which this resolution was adopted is
the first regular meeting of the Council following the
expiration of the period ended 15 days after the first
date of publication of the notice of passage of the
Resolution of Intention (the "Protest Period").
SECTION III. PROTESTS.
Within the Protest Period, 1 protest was filed with
the City Clerk and not withdrawn by the owners of
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property in the District subject to assessment for 15.077%
of the total costs of the Improvements.
SECTION T_V_. CREATION OF THE DISTRICT; INSUFFICIENCY 3
PROTESTS.
The District is hereby created on the terms and
conditions set forth in, and otherwise in accordance
with, the Resolution of Intention. The protests against
the creation or extension of the District or the making
of the Improvements filed during the Protest Period, if
any, are hereby found to be insufficient. The findings
and determinations made in the Resolution of Intention
are hereby ratified and confirmed.
SECTION V. REIMBURSEMENT EXPENDITURES.
5.01 REGULATIONS.
The United States Department of Treasury has
promulgated final regulations governing the use of
proceeds of tax-exempt bonds, all or a portion of
which are to be used to reimburse the City for
project expenditures paid by the City prior to the
date of issuance of such bonds. Those regulations
(Treasury Regulations, Section 1.150-2) (the
°Regulations") require that the City adopt a
statement of official intent to reimburse an
original expenditure not later than 60 days after
payment of the original expenditure. The
Regulations also generally require that the bonds
be issued and the reimbursement allocation made
from the proceeds of the bonds within 18 months (or
three years, if the reimbursement bond issue
qualifies for the "smaller issuer" exception from
the arbitrage rebate requirement) after the later
of (i) the date the expenditure is paid or (ii) the
date the project is placed in service or abandoned,
but (unless the issue qualifies for the "small
issuer" exception from the arbitrage rebate
requirement) in no event more than three years
after the date the expenditure is paid. The
Regulations generally permit reimbursement of
capital expenditures and costs of issuance of the
bonds.
5.02 Prior Expenditures.
Other than ( i ) expenditures to be paid or reimbursed from
sources other than the Bonds, (ii) expenditures permitted
to be reimbursed under the transitional provision
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contained in Section 1.150-2(j)(2) of the Regulations,
(III) expenditures constituting preliminary expenditures
within the meaning of Section 1.150-2(f)(2) of the
Regulations, or (iv) expenditures in a `de minimus"amount
(as defined in Section 1.150-2(f)(1) of the Regulations,
no expenditures for the Improvements have been paid by
the City before the date 60 days before the date of
adoption of this resolution.
5.03. Declaration of Intent.
The City reasonably expects to reimburse the expenditures
made for costs of the Improvements out of the proceeds of
Bonds in an estimated maximum aggregate principal amount
of $209,000.00 after the date of payment of all or a
portion of the costs of the Improvements. All reimbursed
expenditures shall be capital expenditures, a cost of
issuance of the Bonds or other expenditures eligible for
reimbursement under Section 1.150-2(d)(3) of the
Regulations.
5.04. Budaetary Matters.
As of the date hereof, there are no City funds reserved,
allocated on a long-term basis or otherwise set aside (or
reasonably expected to be reserved, allocated on a long-
term basis or otherwise set aside) to provide permanent
financing for the expenditures related to the
Improvements, other than pursuant to the issuance of the
Bonds. The statement of intent contained in this
resolution, therefore, is determined to be consistent
with the City's budgetary and financial circumstances as
they exist or are reasonably foreseeable on the date
hereof.
5.05. Reimbursement Allocations.
The City's financial officer shall be responsible for
making the 'reimbursement allocations" described in the
Regulations, being generally the transfer of the
appropriate amount of proceeds of the Bonds to reimburse
the source of temporary financing used by the City to
make prior payment of the costs of the Improvements.
Each allocation shall be evidenced by an entry on the
official books and records of the City maintained for the
Bonds or the Improvements and shall specifically identify
the actual original expenditure being reimbursed.
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PASSED AND APPROVED BY THE CITY COUNCIL OF -THE CITY OF
KALISPELL, MONTANA THIS 2-Ast DAY OF AUGUST, 1995.
Do las D. Rauthe - Mayor
Attest:
Om
bjjj�'�&7j, om
City Clerk (p_f Vwuncil
RESOLUTION CREATING
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