Resolution 4235 - SID 342 - Corporate Way1149
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RESOLUTION NO. 4235
A RESOLUTION RELATING TO $209,000 SPECIAL IMPROVEMENT
DISTRICT BOND NO. 342 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) This Council has duly and validly created and
established in the City under Montana Code Annotated, Title 7,
Chapter 12, Parts 41 and 42, as amended (the "Act") , a special
improvement district, designated as Special Improvement District
No. 342 (the "District", for the purpose of financing a portion
of the costs of engineering, constructing and installing certain
public improvements; less the cost of installing water mains,
said costs to be borne by the owner of Lots 7AD, 7A, Section 12,
Township 28 North, Range 22 West and Lots 9 and 10, Gibson
Addition, Resubdivision of Lots 1 and 3, because said lots are
the only lots benefited by said water mains; of special benefit
to the properties within the District (the "Improvements") and
paying costs incidental thereto, including costs associated with
the sale and the security of special improvement district bonds
of the City 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 funding of a District Reserve Account
securing the Bonds in the District Fund (the "Reserve Account").
The total estimated costs of the Improvements, including such
incidental costs, to be financed by the District are $209,000.
The costs of the Improvements, less the water mains, are to be
paid from the proceeds of the of the Bonds, which are to be
payable primarily from special assessments to be levied against
property in the District, which property will be specially
benefited by the Improvements in an amount not less than
$209,000.
(b) 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.
(c) It is necessary that the Bonds be issued and sold
in an aggregate principal amount of $209,000 to finance the cost
of the improvements, including incidental costs, described in
Subsection .(a). The costs of the Improvements are currently
estimated, as follows:
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Engineering
Construction
Administration
Reserve Account (Deposit)
Revolving Fund Deposit
Cost of Issuance
Bond Discount.
Less Owner's Contribution
Total
6,000
187,330
-0-
10,450
10,450
3,500
224,000
( 15,000)
Section 2. Determination of _Public Interest. Pursuant
to the authority described in Section 1, this Council hereby
determines to fix the minimum price for the Bonds at $202,730
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. Findings and Determination to Pledge the
Revolving Fund. In the Resolution of Intention to Create the
District, adopted on, July 24_, 1995, this Council found it to be
in the public interest, and in the best interest of the City and
the District, to secure payment of principal of and interest on
the Bonds by the Revolving Fund and authorized the City to enter
into the undertakings and agreements authorized in the Act in
respect of the Bonds, based on the factors required to be
considered under Section 7-12-4225(4) of the Act. Those findings
and determinations were ratified and confirmed in the resolution
adopted by this Council on August 17, 1995, creating the
District, and are hereby ratified and confirmed. It is hereby
covenanted and recited that the City has the power under the Act
to pledge the Revolving Fund to payment of the principal of and
interest on'the Bonds.
Section 4. Terms of the 13on This Council hereby
authorizes the issuance and sale of the Bonds, to be denominated
"Special Improvement District No. 342 Bonds", of the City in the
aggregate principal amount of $209,000 (the "Bonds") for the
purpose of financing the Improvements. The Bonds shall be dated,
as originally issued, as of HoveMbe I , 1995, and shall bear
interest payable semiannually on an ar and july I of each
year, cominencing January 1 , 1997, at a rate or rates
designated by the successful bidder at public sale and accepted
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by this Council. The Bonds shall mature on July 1 in each of
the following years and amounts:
Yeas
Amount
Year
Amount
1997
$ 9,000
2005
15,000
1998
10,000
2006
15,000
1999
10,000
2007
15,000
2000
10,000
2008
15,000
2001
10,000
2009
20,000
2002
10,000
2010
20,000
2003
15,000
2011
20,000
2004
15,000
The Bonds shall be issued as serial bonds in the
denomination of $5,000 each or any integral multiple thereof of
single maturities, provided that one Bond with a stated maturity
in 1997 shall be in one denomination of $4,000. 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 5. 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 _October 16 , 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.
Section 6. Official Statement_ The City Finance Director
and other officers of the City are hereby authorized and directed
to prepare on behalf of the City an official statment to be
distributed to potential purchasers of the Bonds. Such official
statement shall contain the terms and conditions of sale set
forth in the notice of sale adopted in Section 4 and such other
information as shall be advisable and necessary to describe
accurately the City and the security for, and terms and
conditions of, the Bonds.
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Section 6. Cont n i-^-q_ Disclosure: EXemgtion.
Participating underwriters need not comply with paragraph (b) (5)
of Rule 15c2-12 promulgated by the Securities and Exchange
Commission under 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
$1,0o0,000. Consequently, the City will not enter into any
undertaking to provide continuing disclosure of any kind with
respect to the Bonds.
Passed by the City Council of the City of Kalispell,
Montana, this 2nd day of October—, 1995.
Attest:
C
City Cler ouncil
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