Resolution 2861 - Improvement of Sewerage SystemRESOLUTION NO. 2361
A RESOLUTION DIRECTIX0 TaE UNDEaTkl�ING OF AN
IMPROVEMENT OF THE SEWERAGE SYSTEM OF THE CITY
OF KALISPELL, CONTINUING AND CONFIRMING SPECIAL
FUNDS AND ACCOUNTS FOR THE ADMINISTRATION OF
THE MONEYS DERIVED THEREFROM, AUTHORIZING AND
DIRECTING TEE ISSUANCE OF REVENUE BONDS TO PAY
THE COST OF SAID UNDERTAKING, AND DEFINING THE
TERMS AND MANNER OF PAYMENT OF TEE BONDS AND THE
SECURITY THEREOF
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS
FOLLOWS:
Section 1. Findings. (a) The City has no outstanding
bonds or other obligations which are a lien upon the net revenues
of the City's sewerage system except the obiigations issued pur-
suant to Resolution No. 2686, adopted June 3, 1968, which resolu-
tion aiithorized the issuance of $134,000 Sewerage System Revenue
Bonds of 1968, dated as of May 1, 1968 (hereinafter the 1968 Bonds).
Resollutic�n No. 2686 authorized the issuance of additional bonds for
the improvement, betterment and extension of the City sewerage
systeiu, and secured by a pledge of the revenues of the municipal
sewerage system on a parity with the 1968 Bonds, if the conditions
set forth in Section 6.02 of said Resolution are satisfied. it
is hereby found and determined that:
(1) the City is not in default under any of the
provisions of Resolution No. 2686;
(2) there is no deficiency in the Operation and
Maintenance Account or the Revenue Bond Account
established by said Resolution;
(3) the City has provided in this Resolution that
the net revenues of the municipal sewerage system
for each calendar year following the issuance
of the bonds herein authorized will be at least
equal to the maximum amount of principal and
interest coming due in any future calendar year
on the 1968 Bonds and the bonds authorized
herein; and
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(4) the City has obtained a certificate from an
independent licensed professional engineer
stating that in his opinion the net revenues
of the municipal sewerage system, including
ne improvements and extension to be financed
by the bonds herein authorized, Lo be i'oceived
each calendar year during the remainin(j torni
of the 1968 3on6s will be at least equal r-o the
maximum amount of principal and interest to
come due during any such year on the 1968
Bonds hlerein &,azhorized.
(b) it is further found, determined and declared that
the City of Nalispell has been and is now duly authorized by the
provisions of Chapter 24t Title 11 of the Revised Codes of Montana
1947, as amended, and by an election held November 16, 1971, at
which such authorization was approved by a vote of 2626 ballots
cast in favor thereof and 55 ballots against the same, and by other
proceedings heretofore duly taken, to construct an undertaking con-
sisting of improvements, additions and betterments to its sewerage
system, including, but not limited to, a secondary sewage treatment
facility for the City, to prescribe and collect just and equitable
rates, charges and rentals for connections with the system and for
services, facilities and commodities directly or indirectly furnished
thereby, to issue the City's revenue bonds in the aggregate principal
amount of $200,000 to pay the City's share of the cost of such under-
taking, and to pledge and appropriate to the payment of the bonds
the net revenues to be derived from the operation of the sewerage
system, including improvements, betterments or extensions thereof
hereafter constructed or acquired; that such rates, charges and
rentals will be sufficient during the useful life of said undertaking
and the term of the bonds herein authorized to produce net revenues
more than adequate to pay the principal and interest due on such
bonds and the outstanding 1968 Bonds, and to create and maintain
reasonable reserves therefor as herein prescribed; that the City has
approved plans and specifications prepared by its engineel- for said
undertaking; that for the purpose of paying its share of the costs
of construction of the undertaking the City has, pursuant to the
authority hereinabove described, duly sold itis Sewerage System
Revenue Bonds in the principal amount of $200,000; and that it is
expedient that the bonds should be issued forthwith, and the sale
of such bonds is approved, ratified and confirmed.
Section 2. Terms of Bonds. The City shall issue its
negotiable coupon bonds to be designated as Sewerage System Revenue
Bonds, Series 1972, in the aggregate principal amount of $200,000.
The Series 1972 Bonds shall be 200 in number and numbered from I to
200, inclusive, each in the denomination of $1,000, dated as of
January 1, 1972, shall bear interest at the annual rate set forth
below opposite their respective maturity years, amounts and serial
numbers, payable on July 1, 1972 and semiannually thereafter on each
January I and July 1, and shall mature serially on January 1 in the
years and*amounts as follows;
Maturities
Int.
Year
Amount
Serial
Nos.
Rate
1973
$10,000
1 -
10
6.00%
1974
10,000
11 -
20
6.00%
1975
10,000
21 -
30
6.00%
1976
10,000
31 -
40
5.00%
1977
10,000
41 -
50
4.00%
1978
10,000
51
60
4.20%
1979
10,000
61
70
4.40%
1980
10,000
71
80
4.60%
1931
10,000
81
90
4.75%
1932
10,000
81
100
4.90%
1983
10,000
101
110
5.00%
1984
10,000
Ill
120
5.00%
1985
10,000
121 -
130
5.00%
1986
10,000
131 -
140
5.25%
19,�7
10,000
141 -
150
5.25%
7.9123
10,000
151 -
160
5.25Ps
i989
10,000
161 -
170
5.509;
1990
10,000
171 -
160
5.50%
1
19 9 1
.10 000
7,81
1,90
5.5016
19 9 2
L� I � � 11
-� 9 --
� n ")
5.50%
Series 1972 Bonds maturing on or before January 1, 1977 shall be
payable at their respective stated maturity dates without optign of
prior payment, but Series 1972 Bonds having stated maturity dates on
or after January 1, 1978 shall each be subject to redemption and pre-
payment at the option of the City on January 1, 1977, and any inter-
est payment date thereafter, at par plus accrued interest to the
date fixed for redemption thereof, and in inverse order of their
serial numbers; provided that not less than thirty days before the
date specified for redemption of any such bond, notice of the call
thereof shall be mailed by the City Treasurer, by registered mail,
to the holder, if known, and to the initial purchaser of the bonds,
and shall also be published in one issue of a newspaper of general
circulation within the City. The City Treasurer is directed to .
maintain a record of names and addresses of the holders of pre-
payable bonds of the series, so far as such information is made
available to him, for the purpose of mailing such notices, The
principal of and interest on the Series 1972 Bonds shall be payable
at the office of the City Treasurer in Kalispell, Montana, in any
coin or currency of the United States of America which on the respec-
tive dates of payment is legal tender for pubiic and private debts.
Section 3. Form of Bonds. The Series 1972 Bonds and
the interest coupons appurtenant thereto shall be in substantially
the following form:
UNITED STATES OF AMERICA:
STATE OF MONTANA
COUNTY OF FLATHEAD
CITY OF KALISPELL
SEWERAGE SYSTEM REVENUE BOND,
SERIES 1972
No.
$1,000
KNOW ALL MEN BY THESE PRESENTS that the City of Kalispell,
a duly organized municipal corporation of Flathead County, Montana,
for value i received hereby promises to pay to bearer, solely out of
the Revenue Bond Account of its Sewerage System Fund, the sum of
ONE THOUSAND DOLLARS on the.lst day of January, 19 , or if this bond
is redeemable as stated below, on a date prior thereto on which it
shall have been duly called for redemption, and to pay interest
thereon out of said account from the date hereof until the principal
sum is paid, or if this bond is redeemable, until it has been duly
called for redemption, at the rate of
hundredths per cent ( %) per annum, payable on July 1, 1972,
and semiannually thereafter on the lst day of January and the Ist
day of July of each year, interest to maturity being represented by
and payable in accordance with and upon presentation and surrender
of the interest coupons appurtenant hereto. Both principal and
interest are payable at the office of the City Treasurer, in Kalispell
Montana, in any coin or currency of the United States of America
which on the respective dates of payment is legal tender for public
and private debts.
This bond is one of a series in the total principal amount
of $200,000, all of like date and tenor except as to serial number,
,paturity date, interest rate ' 'aad r ' edemption privilege, issued pur-
suant to authorization by the requisite majority of,the qualified
electors of the City voting on the question at an election duly
called and held, for the purpose of providing money to finance the
improvement of its municipal sewerage system, and pursuant to and
in full conformity with the Constitution and laws of the State of
Montana and the ordinances of said City thereunto enabling, including
Title 11, Chapter 24 of the Revised Codes of Montana 1947, as amended,
and Resolution No. A 961 of the City, duly enacted on
1972.
Bonds of this series maturing on or before January 1, 1977
are payable at their respective stated maturity dates without option
of prior payment, but bonds having stated maturity dates on or after
January 1, 1978 are each subject to redemption and prepayment at the
option of the City, at par and accrued interest and in inverse order
of their serial numbers, on January 1, 1977, and any interest payment
date thereafter. Not less than thirty days in advance of the date
fixed for prepayment and redemption of any bond, the City will mail
notice,of "he call thereof to the holder, if known, and to the origi-
nal purchaser, and will cause such notice to be published in a news-
paper of general circulation in said city. Holders of prepayable
bonds of thisseries may register their names and addresses and the
serial numbers of their bonds with the City Treasufer for the purpose
of receiving such mailed notice,
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
the City has duly authorized and will forthwith construct and complete
the undertaking above mentioned, has fixed and established and will
collect reasonable rates and charges for the services and facilities
afforded by the municipal sewerage system, and has continued the
special Sewerage System Fund created by Resolution No. 26$6 of the
City, adopted on June 3, 1968, into which the gross revenues of the
system, including all additions thereto and replacements and improve-
ments thereof, are required to be paid, and the separate and special
Revenue Bond Account in that fund, into which will be paid out of
the net revenues of the system amounts sufficient to pay all princi-
pal of and interest on the bonds of this series and of the series of
Sewerage System Revenue Bonds of 1968, dated May 1, 1968, when due,
and suffic.ient to establish a reserve therefor in a sum equal to the
maximum amount of principal and interest to fall due within any
subsequent calendar year on all bonds payable from the Revenue Bond
Account; that the Revenue Bond Account will be used only to pay the
principal of and interest on bonds made payable therefrom, as such
principal and interest respectively become due; that such rates and
charges will from time to time be made and kept sufficient to pro-
vide gross income and revenues adequate for prompt payment of the
reasonable and current expenses of operation and maintenance of the
sewerage system and to produce in each calendar year net revenues in
excess of such current expenses, equal to the maximum amount of prin-
cipal and interest payable from the Revenue Bond Account in any sub-
sequent calendar year; that the payments required to be made to the
Revenue Bond Account constitute a first and prior lien and charge on
the entire net income and revenues to be derived from the operation
of such system and of all future additions� thereto and betterments
thereof; that additional bonds may be issued pursuant to the certain
conditions set forth in Resolution No.,;�,r6 /, but no other obligation
will be incurred and made payable from the net revenues of the muni-
cipal sewerage system, whether or not such obligation shall also
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Dnstitute a general obligation and indebtedness of the City, un-
��ss the lion thereof shall be expressly made subordinate to the lien
f the bonds of this series on such netrevenues; that all provisions
or the security of the holder of this bond set forth in Resolution
0. will be punctually and faithfully performed as therein
tipulated; that all acts, conditions and things required by the
onstitution and laws of the State of Montana and the ordinances of
.he City to be done, to exist, to happen and to be performed in
)rder to make this bond a valid and binding special obligati ' on of
-he City according to its terms have been done, do exist,,hiave happen-.
�d and have been performed as so required; and that the issuance
Df this bond did not cause the indebtedness, whether general or special
of the City to exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF THE CITY of Kalispell, Flathead County,
Montana, by its City Council, has caused this bond to be executed
in its behalf by the facsimile signature of the Mayor, countersigned
by the facsimile signature of the City Treasurer, and attested by
the City Clerk, and sealed with its corporate seal, has caused the
appurtenant interest coupons and certificate on the reverse hereof
to be executed and authenticated by the facsimile signatures of�
such officers, and has caused this bond to be dated as of January 1,
1972.
Attest:
City Clark
Countersigned
(SEAL)
(Form of Coupon)
No.
Mayor
City Treas
On the Ist day of July (January), 19 - , unless the bond
described below is subject to and has been called for earlier
redemption, the City of Kalispell, Flathead County, Montana, will
pay to bearer at the office of the City Treasurer, in Kalispell,
Montana, out of the special fund and account designated in the bond
described below, the amount shown hereon in lawful money of the
United States of America for interest then due on its Sewerage
System Revenue Bond, Series 1972, -dated January 1, 1972, No.
(Facsimile signature) (Facsimile signature) (Facsimile signature)
City Clerx City Treasurer mayor
(Form of certificate to be printed on the reverse
side of each bond, following a full copy of the
legal opinion on the issue.)
We certify that the above is a full, true and correctcopy
of the legal opinion rendered by bond counsel on the series of bonds
of -the City of Kalispell, Montana, which includes the within bond,
dated as of the date of delivery of and payment for the bonds. '
(Facsimile signature) (Facsimile s ignature) (Facsimile signature)
City Clerk City Treasurer Mayor
Section 4. Execution of Bonds. The Series 1972 Bonds shall
be forthwitli prepared for QXeCUt4on under the direction of the City
Clerk, 'and when so prepared shall he executed on behalf of the City
by the Mayor, countersigned by the City Treasurer, and attested by
the City Clerk; and shall be sealed with the official seal of the
City; provided, that two of such signatures may be printed facsimiles.
The interest coupons appurtenant thereto shall be executed and authen-
ticated by the printed, engraved or 'Lithographed facsimile signatures
of such officers. After registering the bonds in the manner speci-
�ied in Section 11-2318, Revised Codes of Montana 1947, the City
�reasurer shall cause them to be delivered to the Conrad National
3ank of Nalispell, Montana, as purchaser thereof, upon payment of
"he purchase price as specified in the contract of sale heretofore
nade and executed, which contract is hereby approved, ratified and
-onfirmed, and the purchaser shall not be obligated to see to the
ipplication of the purchase price.
Section 5. Sewerage System Imgrovement Fund. The proceeds
of the Series 19-72 Bonds, with the exception of the accrued interest
and premium, shall be credited and paid into a 'special fund which
is hereby created and shall be maintained by the City Clerk and Trea-
surer upon 'the books of the City, separate from all of its,other
funds, designated as the Sewerage System Improvement Fund, and shall
be deposited and secured*as provided in Section 7 hereof. From this
fund there shall be paid as incurred all such items as constitute,
in accordance with sound accounting practices, proper costs of the
undertaking described in Section 1, as provided in the plans and
specifications therefor; including, but without limitation, all en-
gineering, inspection, fiscal and legal expenses, the cost of lands
and easements, the reimbursement of any advances heretofore made by
the City, and all other expenses heretofore incurred and to be in-
curred in connection with the financing and construction of such under-.
taking. All other moneys granted to or appropriated by the City for
the undertaking, including grants from the United States and State
of Montana, shall likewise be credited to this fund. The moneys in
the fund shall be used only for the purposes above set forth, except
that if any moneys shall remain after the completion of the under-
taking and after payment of all costs thereof, such remaining moneys
shall be transferred to the Sewerage System Fund referred to below.
Section 6. Sewerage System Fun .
6.01 Revenues Appropriated. The Sewerage.System Fund
created by Resolution No. 2686 shall be continued upon the books of
the City as a separate and special fund. Until all obligations, in-
cluding the Series 1972 Bonds, have been discharged as provided in
Section 8, the City irrevocably covenants with the holders of,
each and all of such bonds that all of the gross revenues derived
from the operation of its sewerage system will be paid as received
into said sewerage System Fund, and will be deposited and secured as
provided in Section 7 hereof. Such gross revenues are hereby de-
fined to include all income and receipts derived from rates, charges
and rentals imposed for connections with and for the use qf such
systems, including all additions thereto and betterments and replace-
ments thereof originally or subsequently constructed or acquired, or
for the benefits provided by the facilities of the system, or from
sales of property acquired in connection therewith, and all penalties
and interest on such rates, charges and rentals, but shall not in-
clude any special assessments levied for the construction of sewer
mains or other improvements. This fund shall be subdivided into the
separate accounts established by Resolution No. 2686 and described
b,elow, and the gross revenues received in the fund shall continue to
he a -,,-,portioned on.the first day of each month, and be credited to
suc'�^. respective accounts and accounted for therein and expended
therefrom as
6.02 2ps1rat count. There shall continue first to be
set aside and credited to the operating Account,'as a first charge
on the gross revenues, such amount as may be required, over and above
the balance then held in that account, to pay the reasonable and
necessary operating expenses of the system which are then due and
payable or are to be paid within the following six months. The term
.,operating expenses" shall mean the current expenses, paid or accrued,
of operation, maintenance and current repair of the sewerage system
and its facilities, as calculated in accordance with sound accounting
practice, and shall i�,,clude, without limitation, administrative
expenses of the City relating solely to the sewerage system, premiums
for insurance on the properties thereof, labor and the cost of mater-
ials and supplies used for current operation and for maintenance, aild
charges for the accumulation of appropriate reserves for current ex-
penses which are not recurrent monthly but may reasonably be expected
to be incurred in accordance with sound accounting practices. Such
expenses shall not include any allowance for depreciation or renewals
or replacements of capital assets of the system and shall not include
any portion of the salaries or wages paid to any officer or employee
of the City, except such portion as shall represent reasonable compen-
sation for the performance of duties necessary to the operation of
the sewerage system. The minimum Operating Reserve of $6700 required
by Resolution No. 2686 shall be continued, and shall he maintained by
transfers from gross revenues whenever necessary, or may be augmented
by transfers from the Surplus Account described below if determined
by the City Council to be necessary to meet contingencies arising in
the operation and maintenance of the system. Moneys in the Operating
Account shall be used solely for the payment of current operating
expenses of -the sewerage system as herein defined.
G.03 Revenue Bond Account. The net revenues of the munici-
?a! sewerage system, as referred to in this resolution, are hereby
include the entire amount of the gross revenues remaining
Ined to
after each monthly apportionment, after crediting to the Operating
Account the amount required in Section 6.02 hereof, including sums
required to maintain the Operating Reserve at the minimum amount there-
in stated. Upon each monthly apportionmeAt there shall continue to
he set aside and credited to the Revenue Bond Account out of the net
revenues an amount equal to at least one -twelfth of the total sum of
the principal and interest to become due within the then next succeed-
ing twelve months of all bonds payable therefrom, including the Series
1972 Bonds, and on all bonds refunding the same (exclusive of prin-
cipal and interest for the payment of which funds have been placed in
escrow as provided in Section 8); and the entire remainder of the
net revenues on hand shall also be credited to the Revenue Bond Account
until there.shall have been accumulated in such Account an additional
reserve, which shall thereafter be maintained by the transfer of addi-
tional net revenues whenever necessary, in an amount at all times at
least equal to the maximum amount of principal and in-Eerest to fall
due on all bonds payable therefrom within any subsequent calendar year.
Moneys from time to time held in the Revenue Bond Account shall be
disbursed only to meet payments of principal and interest on such
bonds as such payments become due, and the reserve therein shall be
used only to pay maturing principal and interest when other moneys
within the account are insufficient therefor; provided that on any,
date when all outstanding bonds payable from the Revenue Bond Account
are due or prepayable by their terms, if the amount then on hand in
the Revenue Bond Account, including the reserve, is sufficient to PaY
all such bonds and the interest accrued thereon in full, it may be
used for that purpose. If any payment of principal or interest be-
comes due when moneys �`n the Revenue 3ond Account are temporarily
insufficient therefor, such payment shall be advanced out of any net
revenues theretofore segregated and then on hand in the Replacement
6.04 Replacement and Depreciation Account. There shall coi.
tinue to be set aside and credited upon each app=rtionment to the
Replacement and Depreciation.Account such portion of the net revenues
of the system, in excess of the current requirements of the Revenue.
Bond Account (which portion of the net revenues is referred to herein
as "surplus net revenues"), as the City Council shall determine to be
required for the accumulation of a reasonable allowance for deprecia-
tion of the system and for replacement or renewal of worn out or
obsolete properties comprised therein. Moneys in this Account shall
be used only for the purpose above stated or, if so directed by the
Council, to redeem revenue bonds which are prepayable according to
their terms, or to pay principal or interest when due thereon as
required in Section 6.03 hereof; provided that in the event that the
City shall decide to issue bonds subordinate and junior to those
theretofore issued and payable from the Revenue Bond Account for the
purpose of financing the construction and installation of additional
improvements or additions to the sewerage system, surplus net reve-
nues from time to time received may be segregated and paid into one
or more separate and additional Accounts for t�e payment of such bonds
and interest thereon, in advance of payments required to be made into
the Replacement and Depreciation Account.
6.05 Surplus Account. Any amount of the surplus net reve-
iues from time to time remaining after the above required applications
thereof shall continue to be credited to the Surplus Account, and the
moneys from time to time in that account, when not required to restore
a current deficiency in the Revenue Bond Account as provided in part
6.03 hereof, may be used for any of the following purposes'and not
otherwise;
(a) To redeem and prepay bonds payable from the
net revenues when and as such bonds become prepayable
according to their terms; or
(b) To purchase such bonds on the open market, at
a price to yield the City anet return, based on the
dollar amount of interest payable to the respective
maturities of bonds so purchased, or to the earliest
dates upon which they are prepayable according to their
terms, which bonds shall be canceled forthwith upon
being so purchased; or
. (c) To be held as a reserve for redemption and
prepayment of bonds payable from the net revenues which
are not then but will later be prepayable according to
their terms; or
(d) To pay for repairs of or for the construction
and installation of improvements or additions to the
sewerage system; or
(e) To restore the Operating Reserve or increase
the same when determined to be necessary by the City
Council.
6.06 Transfers. No moneys shall at any time be transferred
from the�Surplus Account or any other account of the Sewerage System
Fund to any other fund of the City, nor shall such moneys at any time
be loaned to other municipal funds or invested in warrants, special
improvement bonds or other obligations payable from such other funds.
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Section 7. Deuosit and Investment of Funds. The City
Treasurer shall cause all moneys pertaining to the Sewerage System
Fund and the Sewerage System Improvement Fund to be deposited and
invested in the manner provided in Section 9 of Resolution No. 2686.
Section 8. Priority of Bond Payments and Additional Rev-
enue Bonds.
8.01 Priority of Bond Payments. Each and all of -the bonds,
payable from the Revenue Bond Account shall be equally arid ratably
secured by and payable out of the net revenues of the municipal sewer-
age system without preference or priority of any one bond over any
other by reason of serial number, date of issue or otherwise; pro-
vided, that if at any time the net revenues on hand in the Sewerage
System Fund as defined in Section 6.03 hereof are insufficient to pay
principal and interest then due on all such bonds, any and all moneys
then on hand shall be first used to pay the interest due, and the
balance shall be applied toward payment of the maturing principal of
such bonds in order of their maturities, the earliest iaaturing bonds
to be paid first, and pro rats, in payment of bonds maturing on the
same date.
8.02 Refunding Revenue Bonds. Refunding revenue bonds may
be issued hereunder for the purpose of refunding any matured bonds
issued hereunder, if and when and to the extent that Net Revenues are
not available to pay such bonds,within the limitations prescribed in
Section 8.03, provided that the maturity of each such refunding reve-
nue bond is subsequent to the last maturity of the then outstanding
bonds issued hereunder which are not so refunded, and that no holder
of any bond issued hereunder shall be required to accept a,refunding
revenue bond in exchange therefor.
8.03 Additional Revenue Bonds. Additional revenue bonds
may be issued hereunder for the purpose of financing the reconstruc-
tion, improvement, betterment and extension of the sewerage system,
or for the purpose of redeeming at or before maturity and refundin , g
outatand-izg bonds issued hereunder, if:
(1) The City is not in default of any of the pro-
visions of Resolution No. 2686 or this resolution;
(2) There is no deficiency in the operation and
Maintenance Account or the Revenue Bond Account,
(3) The City provides in the resolution authorizing
the issuance of such bonds that the net revenues of the
municipal sewerage system for each calendar year follow-
ing the issuance of such bonds will be at least equal'
to the maximum amount of principal and interest
coming due in any subsequent calendar year on
such additional bonds and all then outstanding
bonds payable from the Revenue Bond Account; and
(4) �The City obtains a certificate from an
independent licensed professional engineer stating
that in his professional opinion the net revenues
of the municipal sewerage system as defined in
Section 6.03 hereof, including revenues to be de-
rived from any improvements or extensions to be
financed by the issuance of such additional bonds,
to be received each calendar year during the re-
maining term of any then outstanding bonds payable
from the Revenue Bond Account, will be at least
eq-,�al to Lhe maximum amount of pr4 ncipal and inter-
esz to come due during any such year on said out-
s,,�.andincr bonds_and, such. additional bonds'. -
k "I,
8.04. Except as provided in Sections 8.02 and 8.03 above,
no additional bonds or other obligations will be issued under or
secured by the provisions of this resolution, and no additional bonds
or other obligations will be made payable from the Net Revenues defined
in Section 6.03 unless the pledge and appropriation of such Net Revenues
for the payment and security of such obligations is expressly made
subordinate to the pledge and appropriation thereof for the payment
and security of the 1968 Bonds and the Series 1972 Bonds and all
additional bonds issued and to be issued under and secured by this
resolution in accordance with Sections 8.02 and 8.03. In the event
of the issuance of any such obligations, the principal, interest and
redemption premiums thereon will be made payable from one or more addi-
tional accounts created in the Sewerage System Fund for that purpose,
and the balance of funds at any time on hand in any such account shall
be available and shall be transferred whenever needed to meet the
current requirements of the Operating Account and Revenue Bond Account
set forth in Sections 6.02 and 6.03.
Section S. Defeasance.
8.01 Effect of Discharge. when the liability of the City
on all Series 1972 BoEZs issued under and secured by this resolution
and all coupons appertaining thereto has been discharged as provided
in this section, all pledges, covenants'and other rights granted by
this resolution to the holders of such bonds shall cease.
8.02 Discharge of c ertain Bonds and,Coupons. The City may
discharge its liability with7reference to all bonds and coupons which
are due on any date by depositing with the appropriate official or
paying agent or agents for such bonds on or before that date a sum
sufficient for the payment thereof in full; or if any bond or coupon
shall not be paid when due, the City may nevertheless discharge its
liability with reference thereto by depositing with the paying agent
or agents a sum sufficient for the payment thereof in full with in-
terest accrued to the date of such deposit.
8.03 Discharge of Prepayable Bonds. The City may also dis-
charge its liability ith reference to any prepayable bonds which are
called for redemption on any date in accordance with their terms, by
depositing,with the appropriate official or paying agent or agents
on or before that date an amount equal to the principal, interest
and redemption premium, if any, which are then due thereon, provided
that notice of such redemption has been duly given as provided in the
ordinance authorizing such bonds. ,
8.04 Discharge of Series. The City may also at any time
discharge its liability in its entirety with reference to the Series
1972 Bonds, subject to the provisions of law now or hereafter author-
izing and regulating such action, by calling all prepayable bonds of
such series for redemption on the next date when they may be prepaid
in accordance with their terms, by giving the notice required for such
redemption, and by depositing irrevocably in escrow, with a bank
qualified by law as an escrow agent for this purpose, cash or securi-
ties which are general obligations of the United States, or securi-
ties of United States agencies or guaranteed by the United States,
which are authorized by law to be so deposited, bearing interest pay-
able at such times and at such rates and maturing on such dates as
shall be required to provide funds sufficient to pay all principal,
interest and redemption premiums to become due on all bonds of the
issue on or before said redemption date.
Section 9. Covenants. The Series 1972 Bonds shai.L --
secured by all of the covenants, terms and provisions set forth L
Sect, , on 10 of Resolution No. 2686 as fully as though each and all
the bonds herein described had been referred to and specifically
described in said Resolution, and shall be payable from the Revenu
Bond Account and the net revenues therein on a parity as to both
principal and interest with the bonds heretofore issued under said
Resolution.
Section 10. Rates and Charges. Until modified in accord
ance with law, the rates, charges and rentals to be imposed and col
lected for sewer service rendered and made available by the system,
and for connections thereto, shall be those provided in Ordinance
No. of the City. Said rates, charges and rentals are
-15-
calculated on the basis of anticipated sewer usage to be sufficient
to produce in each calendar year net revenues for the Revenue Bond
Account in an amount no less then 100% of the sum of principal and
interest to become due in any subsequent calendar year on the bonds
payable from the Revenue Bond Account.
Section 11. Effect. It is the intention of the City that
this Resolution be complimentary to, and interpreted together with,
Resolution No. 2686, adopted June 3, 1968. No provision herein
shall be interpreted in a manner which impairs any of the covenants,
terms and provisions of said Resolution No. 2686 insofar as they
secure the Sewerage System Revenue Bonds of 1968 issued thereunder.
Section 12. Effective Date. This Resolution shall be in
full force and effect from and after its final passage and approval
according 'to law.
Passed by the City Council and approved by the Mayor of the
City of Kalispel ontana, this 10thday of April 1972.
C,
Kal,
sp,1 ontan th,
s 11th
A Approve r #��
pp oved , f� �' ,
mayor
ttest: lo
CERTIFICATION OF MINUTES RELATING TO
$200,000 Sewerage System Revenue Bond, Series 1972
Issuer: City of Kalispell, Flathead County, Montana
GOVernii-,_- !)OdY - City CounCil
Kind, date, time and place of meeting: a city council meeting, AprillO ,
1972, at 7:30 o'clock p.M., at C�lq Kalispell, �bntana
Members present: Mayor Bjorneby, Councilmen Miron, Happ, Sliter, OlBrien,
Daley, Rogers, Schwartz and Thomas
Members absent: None
Documents attached:
Minutes of said meeting (pages); 16
A RESOLUTION DIRECTING THE UNDERTAKING OF AN
IMPROVEMENT OF THE SEWERAGE SYSTEM OF THE CITY
OF KALISPELL, CONTINUING AND CONFIRMING SPECIAL
FUNDS AND ACCOUNTS FOR THE ADMINISTRATION OF
THE MONEYS DERIVED THEREFROM, AUTHORIZING AND
DIRECTING THE TISSUANCE OF REVENUE BONDS TO PAY
THE COST 01- 7;,- Z �N'DERTAKING, AND DEFINING THE
TERMS AND M1A.NXZR OF PAYMENT OF THE BOZIDS AND THE
SECURITY THEREOF
1, the undersigned, being the duly qualified and acting record-
ing officer of the public corporation issuing the bonds referred to in
the title of this certificate, certify that the documents attached
hereto, as described above, have been carefully compared with the ori-
ginal records of said corporation in m _,LegA-J:_,d us tody, from which they
have been transcribed; that said doeu ernts ar)ea correct and complete
3'u c' en s
transcript of the minutes of a mee * g of th governing body of said
a
0 om ete op ie
1 oc r ent s pr
t y r
cr
corporation, and correct and com ete copie of all reso>tfo__n_�� and
other actions taken and of all cuments proved by t gove ning
body at said meeting, so fabya they rel e to said �s; ��d that
r y at t
said meeting was duly held he gove ing bod the sxe and place
and was attended throu hout b the me ers indicat d 41wve, pursuant
ven a 3 r
to call and notice of such mee ing ven as req, by law.
WITNESS my hand official"& as'such re officer this 10th
day of April , 19 7Z A 7'��')
tv Clerk
1, tho undersignud, City Clark of the City oz\)(allspell artify that the
L a'
foregoing is a true and correct copy of the *6�olution nIyp a d by the City
t
Council of the City of Kalispell, Montana, jat � regular me t g on
poll,