Resolution 2836 - Issue Sewer System Revenue BondsRESOLUTION 140. 2836
A RESOLUTION TO AUTHORIZE THE ISSUANCE OF REVENUE BONDS IN THE
sum OF $200,000.00 FOR THE CONSTRUCTION OF VAPROVEMrNTS TO THE
SEWER SYSTEM OF THE CITY Or KALISPELL,
WHEREAS, at an election held in the City of Kalispell on
November 16, 1971, the City Of Kalispell was authorized, by the
majority of the voters duly votinq in said election, to issue
Revenue Bonds to the extent of $200,000.00 for the construction
of improvements, addition% and betterments to the sewer system
of the City of Kalispell, as provided for in Resolution No. 2828
adopted by said Council on October 4, 1971; and
WHEREAS, at said election more than 40% of the duly regis-
tered and qualified electors of the City of Kalispell, did legally
vote thereinj and
WHEREASp canvas of said votes was held by the City Council as
required by law within ten (10) days of said election,
N94 THEREFORE, BE IT RESOLVED:
1. That for the purpose of obtaining and providing funds to
pay the cost of said additions, improvements and betterments to
said sewer system of said City, and in order to pay the cost of
the issuance of said Revenue Bonds and the costs of all engineering,
legal, labor and incidental costs which it is estimated will accrue
incidental to said construction of improvements, additions and
betterments, there shall be issued and sold by the said City Revenue
Bonds in the aggregate amount of $200,000.00; it is estimated that
said $200,000.00 is the City's portion of the estimated cost and
expense of said construction of improvements, additions and
betterments.
2. Said bonds shall be in denominations of $1,000.00 each and
shall be dated January 1, 1972 and shall bear interest at a rate or
rates of not in excess of 9% per annum, payable semiannually after
the date thereof. Said bonds shall run for a period of twenty (20)
years from date of issue. If issued as Serial Bonds, they shall
mature and be payable as follows: 1/20th of the total thereof on
January lst of each year, beqinninq in 1973 and through 1992, in
the order of their numbering and issuance.
3. The City of Kalispell reserves the right to redeem any or
all of said bonds issued for a longer term than five (5) years from
the date of issue, at the expiration of five (5) years from such date
of i3sue and an any interest paying date thereafter; if said City
elects to redeem any or all of said bonds as provided herein, same
shall be called and redeemed in the inverse order of their numbering
and issuance (that is, higher numbered and last issiied bonds shall
be the first called and redeemed)l notice thereof shall be published
at least once in a newspaper of general circulation within said City
at least thirty (30) days prior to the date of such intended redemp-
tion and by mailing a copy of such notice to the purchaser or pnrch-
asers of sitid bonds; upon the date fixed for stich redemption interest
upon the bonds thus called shall cease to accrue.
4. Said bonds shall be issued executed and sold in a manner
as provided by the laws of the State of Montana relating to Municipal
Revenue Bonds and indebtedness. In the sale of said bonds, pre-
ference shall be given to amortization bonds, bft if it shall be
found advantageous said bonds may be issued in serial form# and in
denominations as set forth here1nabove.
4 S 7
5. Said bonds may not besold for less than at par; they
r 'tates of Anerica, or
may be sold at private sale to the United S
-Any aq
ency, instrumentality or Corporation thereof, or at public
sale to any person or persons After due notice thereof has been
published as provided in Section 11-2404, R.C.M., 1947, as
amended.
6. There shall be, and there is hereby created and astab-
lisheA in the office of the Treasnrer of the City of Kalispell,
Montana, a Special Sewer System riind, which shall be known and
described as the: "SrT1rR RrVENUr 130!ID RrDEMPTION FMND Or 1971" of
the City of-Kalisp,�ll, Montana, into which fund for the purpose
of paying the principal and interest of these bonds, according
to their maturities, shall be paid monthly by said City, and the
proper officers of said City shall pay monthly, and this City
Council, by this Resolution does hereby promise And agree, and
obligates and bonds the City of Kalispell, to set asiO.e and pay
out of the gross earninqs of the Sewer System (subject to the
primary deductions thereof of sums equal to the costs and expenses
of operation and maintenance of 8ilch system) a definite sun
monthly in every month durinq the life of said bonds, commencing
with the month the bonds are dated, and until -the full payrient
of said bonds and all interest, equal in amount (in each such
month in each year during said period of montly payments) to
one-tWelfth of the arl(Trerlate Amount of bond principal which will
be payabledurincl, and at the e"Liration-of, each year durincy the
life of said bonds, and as specifically set forth herainbefore,
plus one -twelfth (in each month) of the bond interest accruing and
being payable within each such Year.
It is hereby made the mandatory official duty of the Treasurer
of the City of Kalispell, Montana, for the time beinrT, to �naintain
said Sewer Revenue Bond Redemption Piind of 1971, continuously in
his office, and to pay, and to Cause to be paid, into said Sever
Revenue Bond Redemption Plind of 1971# out of the Revenue of said
Sewer System, the foroqoinq bonds, and the semiannual interest
thereonp and to apply said moneys for the payment and retirement
of said Sewer Revenue Bonds according to their terms. The forejoing
Sewer Revenue Bond Redemption Func9 of 1971, created hereby, and
the funds paid therein, as,required hereinbefore# shall be used
solely for the purpose of the payment of the principal of said
bonds authorized hereby as they mature and become payable, and
for the payment of the interest thereon as the same accrues and
becomes payable, as provided in the interest coupons which shall
be attached to said bonds, without preference or priority of the
interest upon one bond over another bond maturing in any.year, by
reason of its numbering, priority of issuance or otherwise.
The City Council and the �dorporate authorities of the City of
Halispell, hereby declare that in fixing the amounts to be paid
into said Sewer Revenue Bond Redemption Fund of 1971, as afores!1id,
they have exercised due recard to the cost of operation and main-
tenande of said Sewer System and that no portion of said revenues
nor -Charges have been previously pledged for any other indebtedness.
7. Said City hereby covenants and aqreas with the owners and
holders of each of said bonds that the City will establish and
collect rates and-charqes for said sewer system for as lonq as
any of the $200t000#00 bonds authorized herein are outstandingo
and,will make available for the�payncnt of the princi�al and
interest of all such bonds as they shall accrue in an amount
equivalent to the amount required each year for the principal And
interest payments due on all such ontstandincy bonds, The amount
"available for the payment of the principal and interest of all
such bonds as the same shall accrue" is hereby defined as the
qross�revenucs of said sewer system less expenses of maintenance
and Operation$ but before denreciation.
S. It is the duty of the City to transfer from its General
Fund to the Sewer Mintip a sun, or gnms of money for furnishing
the municipality, or any of its departments, boards or agencies,
with tht services and facilities of such sewer system.
9. A complete get of books of accoiint of sai4i sewer system
shall be kept in the office of the CIerk of said City and shall be
open to inspection by the public at any time during office hours.
10. Additional Sewer revenue bonds on a parity basis may be
issued for any legal purpose subsequent to this issue, said sub-
sequently issued revenue bonds having a parity of lien on the
revenues of the sewer system with this issue. said additional sewer
revenue bonds on a parity basis to be issued upon the following
terms and conditionst
(a) At the time of the issuance of such aaditional Sewer
Revenue Bonds, there is no deficiency in the Sewer'Revenue
Bond Redemption Fund of 1971, and there are no delinquent bond
obligations which constitute a lien upon the funds arising from
System as presently constituted or
improved.
(b) That the City shall provide in each Resolution
authorizing the issnance of additional bonds having a parity
of lien that there will be established for each such issue,
a Special Fund to the same extent as the Special Fiind herein
provided for.
(c) That at the time of the issnance of such additional
bonds, the City shall have on file a certificate from an in-
dependent licensed professional engineer or onqineerin" firm
showing that in his, or its, professional opinion the net
income of the Sewer System an the sane may be added to,
improved or extended out of the proceeds of the sale of such
additional reveniie bonds, will be equal to the arnount
required each calendar year thereafter, to pay the principal
and interest on the bonds outstanding, the principal and
interest on anv revenue bonds which may have been issued on
a parity there*ith,.and the principal and interest on such
additional bonds.
(A) 'Net income for the,-pnrpose of this snbparagraph shall
be construed to mean gross income reduced by expenses or normal
maintenance and operation, but increased by sitch increased
revenue an may reasonably be anticipated for the next succeed-
inq 365 days, whether through chanqes in rates, theretofore
authorized, or by additional accounts, or both.
(e) The City shall have the power, and reserves the
right to issue bonds having a parity of lien An in this
Pesolution provided without the certificate of a certified
professional engineer, for refunding purposes only, provided:
(1) such refunding bonds may be exhancled for, or
their proceeds are used to retire, prior to maturity an
equal amount in principal value of outstandinrT bonds, or
any part thereof, issued for acquisition, construction,
betterment or extension of the sewer system, or any part
thereof, or any or all other Sewer Revenue Bonds which
may hereafter be issued on a parity with the,bonds herein
presently issued, or any part of said bond issuest and
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(2) Such issuance of refun6inq bonds does not
require a larger debt service payment in any year
thereafter over the life of the refunding bonds to
be refunded.
11. When for any reason the City of Xalispell, or any of
its authorized aqencies have not deposited sufficient moneyi into
the Sower Revenue Bond Redemption Fund of 1971t and there has been
a default in the payment of the principal and interest of the bonds
outstanding and payable then, and in that event one or any number
of the holders of bonds representinq twenty-five per cent (25%)
of the outstanding bonds are entitled to the appointment of a
�eceiver by the District Court, which Court shall ha,?,-. jurisdiction
in such proceeainas and which receiver may enter and take possession
of said undertakinrT# IriMe # the sewer system# and operate and
maintain the same, prescribe rates, fees or charqes subject to
the approval of the Public Seniice Commission of Montana and collect,
receive and apply all revenues thereafter arising therefrom in the
same manner as the City of Kalispell itself might do.
12. Notice of sale of the foregoing Revenue Bonds of the sum
of $200,000.00 shall be in substantially the form as shown on
attached Exhibit A.
13. That scaled bids for said�bonds shall be in confo"ity
with the Not ice of Sale and will be received by the Clerk and by
said City at any time prior to the time as provided in said Notice
of Sale.
14. That the form of sairl bonds and the interest coupons
which shall be attached theretof shall be fixed after the time of
the opening of the bids and terms of sale have been determined.
15. The date and time for the sale of said bonds shall be
hereafter -fixed by the City Council as further developments in
the.Federal and State participation in the cost of said project
are determined by the �ouncil.
PASSED AND APPROVED 13Y THE CITY COL77CTL OP THE CITY OF KALISPELL,
MONTANA THIS .11TH day of _DEcpam _11,10 197 1 .
A FS
City Cie
1, the undersigned, City Clerk of the City of
foregoing,is a true and'correct copy of the r
Council of the City of Kalispell, Montana, at
December 13, 1971
1.1spoll, hereby,,,c`er5ify that the
,�%itlon duR poisgd-by the City
Kalispell* Montana
'IEXHIBIT A" RESOUTTION 2836
NOTICE OF SALE OF SE�MR REVENUE 13ONDS OF THE CTTY OF KALTSPELL OF
$200,000.00
NOTICE 19 TIEREBY GIVSTI by the Mayor and Council of the City
of Kalispell, Montana, of the intention to gell sewer Revenue
Bonds of said City in the amount of $200,000,00, heretofore
authorized at a special election held in said City on November
16, 1971, for the purpose of acquiring funds to pay the cost of
making certain improvements to the Sewer System pursuant to t2he
provisions of Resolution No. 2828'., passed and approved by the Mayor
and City Council on 1271 0
Said bonds shall be dated January 10 1972, shall bear interest
at a rate# or rates, of not in excess of nine percent (9%) per
annum, payable semi-annually, and shall run for a period of
twenty (20) years from date of issne, and shall be of the denom-
ination of $1,000.00 each and, if issued as serial bonds, 1/20th
thereof shall mature and be payable serially in the order of their
numbering and issuance on January Ist of each year beginning 1973
through 1992.
The City of Kalispell reserves the right to redeem any or all
of said bonds issued for a longer term than five (5) years from the
date of issne, at the expiration of five (5) yearg from such date
of issue and on any interest paying date thereafterl if shil City
elects to redeem any or all of�said bonds as provided herein, same
shall be called and redeemed in the inverse order of their numbering
and issuance (that is, higher numbered and last issued bonds shall
be the first called and redeemed); notice thereof shall be published
at least once in a newspaper of general circulation within said City
at least thirty (30) days prior to the date of such intended redemp-
tion and by mailing a copy of such notice to the purchaser or purch-
asers of said bondst upon the date fixed for such redemption interest
upon the bonds thus called shall cease to accrues
The principal and interest of the foregoing bonds are payable
at the office of the City Treasurer of the City of Kalispell# Mont-
ana in Kalispell# Montana.
None of said bonds shall be sold for less than par and accrued
interest to date of delivery.
Sealed bids for said bonds are requested and required. Bidders
therefore shall submit sealed written bids specifyinot
(a) The lowest rate of interest and premium, if any above
par, at which the bidder will purchase said bonds, or
(b) The lowest rate of interest at which bidde� will
purchase such bonds at par.
and each bid (except any bid which may be received by or on behalf
of the State Board of Lana Commissioners of the State of Montana)
must be accompanied by a Certified Check in the amount of five
percent (5%) of the amount of their bid, payable to the order of
the City Clarko which amount will be returned if the bid is not
accepted; and if the successful bidder shall fail to pay or refuse
to complete the purchase of said bonds in accordance with the terms
of his bid, the amount of the deposit shall be forfeited to the City
of Kalispell, Montana, upon ten (10) days written demand andnotice
to complete said purchase.
All bids must state net interest cost to the City of Kalispell#
Montana.
All bids shall be addressed to the Council of the City of
Kalispell, Montana, and delivered to'the Clark of said City.
"EXHIBIT A" RESOLUTION 2836
Sealed bids for said bonds will be received by the City
Clerk and by said City at the office of the City Clerk in the City
11all in Kalispell, flontanao at any.time prior to 7:30 o'clock, p.m.,
Mountain Time, on 0 the (lay of
1972, at which time an in the'place above specified, the reqnla.r
meeting place of sai4 Council, qaid 11,wor an(i Council will meet in
public meeting for the purpose of considering any bids which may
be received thereof. The Council reserves the right to reject any
and all bids and to sell said bonds at private sale. The leqal
approving opinion shall be furnished by the successful bidders at
said bidders expense. All bids for said bonds shall be unconditional.
The City of Kalispellp Montana, will furnish printed bonds ready
for execution.
CITY OF KALISPELL, MONTANA
BYS
Mayor
ATTESTs
City Clerk