Resolution 2384 - Water and Sewer Bonds - CovenantsRESOUTION AT. 210
UATAS, at a special Acotion hold in the Citv of Vilinx1l, hion"ra. on Acril
1959, Water and Sewer Revanuc T�oo'ujs, authorized. for the construc-Lion of
addittons. Wrovements, and betterments Lo the WnLer and sewer system, pur8unnt
to the provisinns U Resnlution No, 2379; and,
WHERSAS, there are certain cuvunants that shoiald be awDloyd by the issuing corp-
orAtIon prior to the issQancu of t,hp Wnter and iievnnuo Bonds,
NCU, AMUFURE, U IT RESOLVFD hy the Ciry of Kalispell as fullows-
1. Ant for the purpose OC ohtainlnR and provl�Hs"�' C"a�J's' to pay tl�n cosi. nf.
construntinn of nddltl"ns, improuements and hot te.r,'�itnts t-c Lne lontor and Sevor
Systum of sAd City, end in order Lo pay Av cosL of the issuancy of said Wntor
And Scouc Revenue 3onds and the costs of all oupineering, lenal, lahor, onrl in -
Went& costs "'�hlcll it J."c es�L�-,,Intvd will accrue incident to said ronsL-ruction,
there ShAT'hu issued nnd sold by Lis CHy nf Kalispell , Vaurana, ,�nd Sewer
lovenue Ponds in the annreyaty principal amuunt of `,;250,000.00, w-hlch is the csrim-
nted cost and cxponsv of the EoregojnB, which borml swil he saved my 1, 1959,
and qhsll hear a rate, or rucs, of intoreot of 41ot lu o� 'Flvc per c.enL
(51), nayihln semi-nnnunity after Are, and shwal hc oF the Knond"tUon nE $1000,00
each and shall mature and be payable as follnwst
$21,000.00
in ench
of
rho years 1960 and AM;
s!2,000.00
in the
year
1962,
SWAMOV
in the
year
1963,
�4 00
in the
yc,, i r
1964;
��,2 5, 000 � 00
IT1 111(�,
yT,-1 r
1965;
S,27,000,()()
in ��he
yca r
19 6 6
$,'2 8 , 0 0 U ( , X)
in tl, � r
yea r
196 7
'i 2 9, 000 00
ir t1he
ye,, � r
I 1� 6 L,�',
�';'�O'000.00
i n thc
yoar
19 " � 1)
The City Council of the City nf Allspell. Montana, ruserve the right to rodcom aq,
or all bonds at par nntnring on or tifter toy first in each of the years 1946 to
1969, both and all years therein inclusive, on any 19terest payment date on or Mae
may 1, 1965, in the invorse order of their num5erino hi§mst rmnlurs fOsq uq�n
and afrm prior p"blientinn of sucb notice of the intention tu redcQm any of satcl
bonds by aL lonst once in a newspalunr of general circulation
within snid City, said publicathun to hn w Incur Won (30) days prior to the
dnuv of intended rade,Mtion, Wd by maNing notice of said pall nt said Lime to
th, purchaser, nr purchasers, of said bonds, and upon the Ate fixud for rudomption,
interest open the bQnds thus called for reden7tion shall cause to accrue.
2. Thero shall be, and there is Areby ercnted and estnhlished in the ofElce of
tho Wensurar of the CiLy of Kalispell, Mwitnnn, a S"ocinl Wator end Sewer System
Ford, which shall be known and degcrjhcd as thc, cl
TON Pilo OF 1959" of the City of Kalispell, mont�xns' ln'L'a izhicl.h 1"'und for �hc purposs,'
of paQw� Me PrArilml and interest- of thesc bonds, accerdinq to their maturloics,
shall bu paid monthly by said Ciry, and the proincr officers A said City shall pay
monthly, sad this City Council, by Lhis Wine= does herohy prumise and agree,
"Ind an(3 bonds the City of Kalispell-, to set aside and pay out of the gross
enrntypn; of the Wer ond Scwur Systems (subject to the primary deductions tharoof
& sum cq=1 to the costs and exponses of operaUan a& inahm"ancQ of such systons)
a definite son monthly in Qveyy mon1h duyinR the Me of sDid han6s, copimcnaing witil
the month the bonds are Ated, nnd until the full parnont of said hands nud all
interest, equal in amount (in esch such month in ench year during said pnriod of.
sontbly percents) to onenwalfch of die aggroonte amourt of bond principal which
will he payable durinS, snd at tha cxpiration A, each such year durinq the life of
snid hoods, and as specificnlTy set forth hercinbefure, plus one-twullith Cin eacln
month) of the hond inbernst accruing tho being paynhle within each suph year,
It is hereby We the mnndawry ul!Ciclal duty of the Treasurer of the City of
Kalispell, QnLann, for thQ time being, to maintlin Said 1""'a te r- Sevxor "i"'Venua Hwd
Redemption Fund of 1959, =Unufmsly in his oFfice, and to pay, nod to causu to be,
pnid, into gnio Watnr-Sewcr Avenue land Redonption Fund of 1959, out of the revenues
A said Niter nnd Sewer Systems, the Vorecainp hmids, and the somi-nnnual interest
Ullernon, and Lo npnly smid moneys for the porncim ;md rMirement of sadd Aby"Sn"er
Revo�'uce i"'ands accordio'a tu thciv- tens".
The foregninn Qntcr-sto�"cr �"'Vanuc Road i1ndomption Fund of 1939, created hereby, and
the Amdn paid thervin, as mquired hCruilleforo, shall be used solely for the pur-
pose of the paynent of the principal of sold hands nuchorized hercby ns Any ninturc!
and bacoma pnynble, and for We Dayment of VC intereRt thercOn as the Sams nucru&-�
and becames Dayah1c, as provided in the intercst, ru'ts�ons w'f�lch sh'all Ibc "'Iti�nc'hod Lo
said bonds, without praference or priority of He interest upon one bond over another
bond mnUwing in any year, by reason of its numbering, priority of issuance or ocher,
wise�
The City Counoll and the corporate nuthoritic"'� 03c C�ty o[
declnre that in Fixing the amountm to be paid into saW WaWrOwsur Rwumw Bond
Redemption Fund of 1959, as aforesaid, they have exerc"al An inwrd to tA onst of
operatinn and maintenance of sale Wntcr nnd Sewcr and t'�Isat co �'po'zLion ��E.
said revonues nor char= havc bean prcvinusly p06=d foe- "y c0ar
3, Sold City Wreby oavv"nnts vad agreus wid; dw onowns am! NAWs of CaCh Of
satd bonds that tho City will establish and collect rates and Harken Eor said water
and sewer systons for as long as any oV the QW,w0jo haws nuthwelzed hm-ow =c
outstandinn, am! Vil make avallnble Eor the paymeut cf the principal and interest
oF all such bonds ns Way shall accrue an amount Cquivnient Lo 1.5 Limos Lhe amoOTH,
required each year for the principY and interest payments duo on n11 such OutsrandQ.''
bonds. The mrOWIL "OVDIONIC for the noymcnL V the principal and vatarast of ail
such hords as Lhe snmQ shn1l acrruc" is hurchy defined as Lhc gross revenucs of saja
=cy and scwur systcms less expcoses, of nnintennnne nnd operntion, but hcfor�-�
dupreciation.
4. There shall hv, cad khcrp is herchy erected and established 5Y said City, in
addition to the Wntar-Sewer Revenia; lond audynption Fuud of M9, a Ncsyrvn Yimd,
and in addition to the sums above ruquircd, said City sball set asOu and pay inro
said Hesarvc Fund from 1eqn1ly avniltibla funds Lhe nwn of at least 130,000,00 within
three years from date ul issuu of snid nonds. Mier, the Pmneys, as roquired ahavu,
have been deposited in said Rusurve Fund no fm:Vcr pnrnmLs Wall bo nadc &to SaY,
Oserve Fund. in the evuno of a duf5cicney in rhc snid Watur-Sewur Revenue Bond,
Redemption Fund of 1959, for the paynanu Of MMURTing principal and jnuerost amounts,
such deficiency shnll he made up from the Reservc Fund and -,nld ',Vund, u��nll,
be re-fibursed out of the next nvalfabIc ravonues ailsing frmo sold OLer and WOUr
systems and costs and expenses oF maiistcrtancot and operatkon.
The Coregoing funds deposited in the Reserve Fund shall bo dupositcd in tho Conrad
National Bank and The First Natiuml Uank at Kalispcil, :Aloetanz',�, at- in diro'ct,
obligations of tru: United States Government hnviNt a ymram.ced rodaqvini price and
matUring not later than eight years fr"i the dntv of issuo and in n" uvcnL latur Hart
the last mut"it.y Onte uf UM &MM
5. It Is the duty of the City to transfer Erom its Ocnoral Fund LO the Wntnr-Sewer
Fmd, a surn, or some of mmmy for furnishinn We municipality, or any ut its depnrc-
ments, boards or agencies, with the services and WjUtws of sm* wwwr and swer
systems.
6, So lag as ony of the bonds kcruby authorlmd runtain MAMA"iU We CPW Of
Kalispell shn1l maintain nnd carry for the hcneflt of Wo QLy and the holders of
said bonds insurance, if avni1nb1c, agninst loss by Chm uc otHr camalty oa thc
physical proyert�cs oF t�,a �,z,,Ler and smear syters; of the hlvds and Q rhe nnwunt.s'
normolly carried by private conpunied engaged in the oporatinn of sWilar properties,
All moneyN received frou, losses from any such insurancs; POHOus nrc heroby Plodged
hy the City as security for the payment of sold Hads unt,i3 and unless such
are pnid out to repair the loss or Oapv�e or Lu restore the physical property WO:
or damaged, in respect to which such proccods have been received. The nayr,ont Q
premiums for Of insurance policics reaulr& under the Provisions of this Parasraph
shall be considered an operation and nmIntcnance expense of tN muninipQ watuC aVo�
sewer sysLams.
7. A complutu set of boofs of acccuut of ROd =Qr and sWer sysLema. shalL be kept
in the office of the Treasurer of said CiLy and Shall he opu" Lo inspection by thc
public at any time furing office hours, !he hooks of aw,mt slual he audivad ynarly
by a public ancou=nt oppointed by the City of K&ispal,l, ?4MCM. SAO audit shA I
he made within sixty (60) days following the close of each fiscal Year, Each sucil
nudit, in addition to whacaver matcers may he tha&$L prom2r by LhQ ncvounWnL to he
included therein, s"IE iwlWc the
1. A statement in detnil of tim income nod expenditures of the water
and sewer sytvis for eacli fiscal ",nr-
2, A balance sheet as of t% md uf such Elmo! seat.
3, Ito accountant's comm= rcgn-rding the wannvr in which the City Ans
carrind out the requirements of this RusolyOrn, rnd thn scCountant's
'For any chance or �bnproval�ent fn Ohn opera'.Too c"i" thr'�
systems,
4. 0 list of the insurar-aQ poMcius in Coma at the md A Vic
WSM year. Settinn OuL cc to each polMy the amoUM uf VIC 11030y,
Lhu risks cOvoyed, the Casco of the insmao and the exMratjon d8te
of the nnllry'
5. The "umher or wator.sowcr captcmers at We end Of the year.
All expenno incurring in the mnklzq of tue audif-s required lhy dhis
parnarapb shall he rcnarded and pAd as a inaUntmance operation
eannsa,
1. The My furGer hon&S ASME 1rrc,^wQ1%r thmu e,'hilc any of th',' horeirl
nuthorMA femnin OutstondM3 no addiMnal hands payahlo Nun the revwucs of sals.
syntcm shall he issued the pay"ont A the Wnresc on nN MinciW3 of Mch to a
churge on said rcovenucs aqua! to and cn a pariLy With Lho bonds herein. nucholl red
Mors thn (rntlitit'nts nz'v complied o'ltlh:
(1) At the time A thu insusaou of suQh add5tionnJ Water and Sqwr Ramrow,
&nds there is no deficicnony in rho M,r-Mnar Avermw And Weetion Yowl
Cc 1959. nQ no deficiency in Oic 'ws"vu Fund of any ratsWUH2 Revenue
And issuv, or issuns, which North ohli�ritions connUMv n lien upou the
funds arisinq from revenues derivad Mui thr, are��r"'�rictn or the o,.,nrcr rivi oic,,,,cr
systems as pumently cansti-Mad, or revenuto derived Atom say pnrl; LhurcaE.
(2) TO, City shall ?rovido in ench Rosolu"an or Adinnnuo allKKOIZing
isnuviwe of aiditinnal lmnds hnvK7 n pnrUy of lien, rnd tho first maturit-
ies of which arc four yeprs cm less War Ann of hoAs that Mrs, will he,
nstnhlishcd for crch such igsuc a w1ter-Scray Rovernu %nd WSPON-1 F'und,
or f1in0s, nnd n Warvc Fund, or MKS Lo the snme oxLent and purposes ac,
other Atar-Scwur lavenue Dond Redemption Fuut!S r- '�'e "rind rc, t t
no jwsj�e�
_ _ J Is h c I pro
vided Car, There shall he onid into nny Resvrvc Fund hereafter crentrod under
the vrovisions of this sub-saragraph, within a period to lic provided by Resol-
ution or Ordinance nuLhariving such pnrlty loons Mit in two event Inter than
Four years from the Me of Kstw OF said bonds, ai� �tnw'vmt_ equn"', U) olu�' Yc"wr"'s
Kht servide nn the respective SAMOA boM, issue, or ismuen, Paraioll�,s into
such Nedumption Fimd or Funds and RoRerve Fund cr sb_111 rant c,tually
with the paymonts Wro Redemption Funds nr Resorve lininds' previcualy csLahlished
unAer nuthormy uC Me Resolution, vio SO Migation to mW the same Well
constiLute rn equal obligation and chnnto vywn t& rummms of Me wter nnd
sewer systems, hut shall be in addition Lo Migatims thmewAne incurred.
Provided, hm)over, Art in the vvenL any such MHHOW Kinds are imuuct the
Mrst maturity date of which nre nwire than four 3aws Emen the We of issuo
of sold nrldMunni bonds, then nod in that ovvnt tin uYlAwNion ul the My
to Me parionts into a ?Lsurve ','i'vld Shall , as: is LOWS.'
!to CiLy shill nakc pnyrcutts into ank? Qnwvo Furid ot such Lines and
in such amunts, thnt, 365 days prior to the d�;itc., upon which ths first
cinnuMly maturing bond prinvinnJ shall lwconu payable, there shall be
in said Pesurve Fund an amount enual to onu year's pociricipal require -
MOM on such ndlitional parity bond isonw, Kovided, further, hnavver,
thaL in addition La the pnyments inLo the QnMvu Fwd Mat,04"ly h"C-
Kafmr renuirod, ns to any such ndditinmnl poirity bond issue 1-�,ra �irst,,
70MIty Of pr1rcipril A which is zure thnn War ye= n0ur the date cc
issunnce of such bonds, the CKy shall poy into nn'it", Flmd, wMin,
a to 1�o' -'rrovi"d by Ununnacc 0-"' �"CsOlkrt�Cn auch Twrrity
hut in nc avent lever than Four venrs oC tiw� doLc o� lcaz�u,':Ow,�o Of
the 5onds, an =-mmt eyml to can jonrls incercst rpquiroponts under SM
ridditionni onKyj hand issue, n"d shall thorcnttcr mahmnin such snourt
in said Roservu Yund Unkiny pr',n,,eoj,,s td=��-jn in th�ta,',,ctnt, of trnnsfor,,;
thurefrof to the Rudemption ME) Krirr such t-i:-no �,_s �,,,aCrc I L11u1Q shall
rv-ain nutsLandinn, except that Ono, iwwcy in said Asmne 1%nd 0my bs
used to nny the prinrInK and intewsl umm LK� last PuLurAl 1XNAS.
(3) That at the tow A the issusucc of such additional houds the City shall
lintur on file a ccrvifirntc froT rin Wepcodent amnatNiq enAnfor INNISM,
to p"cMa in Liu state of Siomena nM cxparlem�d in the mnotruction and
operntion of municipal utilitics. rhis cartificate shAl Nam: Quo not revevues
of the sygtar for the previcla tweetty-four mrnths i=vdKUQy Y"c"in Se
ranth of Alivery of such additicna3 bonds. In AMC!= the MincOr's 170POTL
Shajl show the annuml qross reventics to bc derAwd Win the MmratMn of rlic
addirions, boutermenrs, nne umMnsions to bo nc"Dx& or cmwnuKed Wnth-,
proccoos for ads sHe Cc additionrl bones, les", 1z:x o',;th"nte of "Iny -�ncrens'ad
cnst Eor the oppration and nainterioncc of the water can sewer system, n1locrible
to slab inpruvements, As nnroanl Sverago, oE Ov-, twta ycsrs '1r�;�c��'�d-
,�rn� no��tli o,, tJolivery of such AdMiuvoiJ bonds, phm no o"Imer"s cstjmnt��
of the onnuM not revenins, as provided above, shn11 be nt Irssr, cquol to 1.5,
times thv nvornpa, nnnual sTnurt rcnuiTed hvrenCtur for mr, anyment of principS,
nnd interpst on all bonds havini an cgial lien on On iwvcmws K Um systir-1,,t,
w0h the WrKs of 1959 WAs inclodiny the hcrrds pwawad to he Anwd Oil a
"Aty wAT the ToNs M 190 "Walk.
(4) "Not income" Eor We purnnse V this Ruhparvqruph WWI be Coustruad to
mean the yross incons reduced by eNponscs of nor'c"nl nild c"t, operat'iun
before denreciat0m, but inoransed by such incre—d lvwmw as 7av nwiUmMy
No nnticipatod for the next succoodinq 365 days" whcthc�r changes is
rntos, tharctoforo nuthorized, or by addit.-Joral Pccuu=, or �nvk
(5) The onsincer mny adjust We historical aperstinq figures to reflect the
onnual gross revenue to be dcrived !"r("' thc' ,-�F the �-�dv:�ItJociiE, bat-Acr-
ownts, nnd extc,nsinns to he acquirrd or consWwted Erin Me proceeds frco�
the We ol' additionnl hands less his Estimate of any increased enst for Wc,
operation ond mnioLennnce of the nuter ond mower sysuvms allocable LP sucb
improvements.
(6) The City W11 have the Puncy, and resurves Qu 00t to issuc bonds
QvinF a narity oF lien os in this Rcsolution providcd withnuo Wo cort4ficnW,
of a ecraN, professional engineer, for refunding ourposes only, provided:
(a) Such rcfundW hands may he onchnnyed for, or their orucurds nru
uscd to retire, prior to maturity an omml ;oWuM W principal value W
vuLstandjn� ounds, or any part thereof, Us"& for acquisitinn, cunstruc-
Zion, 0ttenient or amcnsion o.0 the. �..,nter and,., sowcr sysWms, or any one,
Lhereof, nr ony or nil othur Wator x& Smar 10vomc Anus whinh may
hereNtur bu issued an a purity with the bonds herein prusently issued,
or cry ymrL of Wd hand issues; and,
(b) Such lssumicQ of rrFundinn bpndR Wen uot re,uire a Jar3or QW-
service payuonL in nny year therepFur ever the life of thu rafundinl.�
bo-ndls tliarl recuired to bu pnlo cvcr the Me of the 4onds tn 4n rc&W-
ad; and,
(W %e city will, in the ordinnQQ (M Resolution nrovidjn� Fur Lhu
issunncu of such refuvOiny hundn and Cc, Lhe cruulon of a lond Rodemition
Fund, further creaLc a Rescrve Fu,V in tho moi-swr proviCad in paranranh
(""") of tlhis R'c�suiutjou.
(7) Nothinp herein contained shall nrcvent the Qtv from issuing Water and
%wer Revenue Bonds or Warrunts which are a chamm un the Wator-Scwor Ruveowi
Bond Redemption Fund or any other Fund croatud on behatf of any parity bonds
issued suhseq"unt to this issue,
9. It is the duty of the City to transfer from its Generm! Fund to tho Account or
Accounts of the U,scrw, Funci a sirm, or sums of moncy cqual to the c(ant ol! furnishinS,
the CUy of Nnlispcll, or nny of Lhe departmums, Wards or agencies, with wnter
and sewer servicu.
10, Whon for any reason the City of Kalispell, or MW of its nuLROQUI agomciCs
have not deposited sufficiunt mancys Wtu We Water-si'-rwor RaV("nuf..' llosl :s:-'d<",-"1ptAce1
Fund *f 1959, and there has heon a derault in LWpayment of the prin0pal and inter -
cat of the bonds outsundinZ and payable then, anii J-� th"at event Cole 01" Ocr �!U'c"w2r
of the holders oF bonds repcCmenUing twenLy--five For of fl1L an Us t"n nd i'a'-" honds
nre entitled to the appoinWent of a rtaceiver hy the f3strict Court, which Court
shall havo jurisdiction in such procaudings and which Recuiver may enter and take
possession of said ucidurtaklun, viz., the wn"r and smar sytesm, aQ "e"te and
msintsin the some, prescribe raws, fees or chnrpes Ruhjoct to the npprival of the
Public Service Commission of Montana nnd collect, receive and apply all revunues
thereafter arising thurufrom in the same manner as the City of QlLspull itself migh',-
do�
PASS�`D AND AFIPROVEO RY THE Cfre COM511 (W ILE CITY OF MALTSPEU, MONTAnk,
MUS Ill !MY OF !", IMN
15mmd V, Uawwr
1%'rT11-1'1S1'--.--1---J1� ,, - ' 1 ur. t
City "n-ru
1, rho uadersigned, My Clerk of the City of Kalispull hureby Cortify LhnL Lhe
foregoin; is a true and norrest copy of We Renalutinn dulv pssRod by the City
Council of tho C it � Q 10 iqpol I, 'MntnDa, nt S S i ) 12 C i a 1, 111C (2 t I � I �'-" on "'."n y 19, � 9 5 9
alispoll, Moumna