HomeMy WebLinkAboutResolution 3881 Create SID 684, Durston Road
COMMISSION RESOLUTION NO. 3881
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 684;
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; CONFIRMING CERTAIN OTHER MATTERS; AND
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS
UNDER THE INTERNAL REVENUE CODE.
WHEREAS, on the 17th day of October 2005, the City Commission (the "Commission") of the
City of Bozeman, Montana (the "City") adopted Commission Resolution No. 3864 (the "Resolution of
Intention"), stating its intent to create Special Improvement District No. 684 (the "District") to finance the
costs of various Improvements within the District as described herein (the "Improvements"); and
WHEREAS, as set forth in the Resolution of Intention, the Commission committed other
revenue sources, including $4,332,200 in street impact fees, $342,400 in wastewater impact fees, and
$98,300 in water impact fees to the costs of the project; and
WHEREAS, on the 21 st day of November 2005, the Commission conducted its public hearing
on its intent to create the District.
NOW, THEREFORE, BE IT RESOLVED by the Commission of the City, as follows:
Section 1. Passage of Resolution of Intention. This Commission, on October 17, 2005,
adopted the Resolution of Intention, pursuant to which this Commission declared its intention to create
a special improvement district, designated as Special Improvement District No. 684 of the City, under
Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended, for the purpose of financing
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, and the
funding of a deposit to the City's Special Improvement District Revolving Fund (the "Revolving Fund").
Section 2. Notice and Public Hearing. Notice of passage of the Resolution of Intention was
duly published and mailed in all respects in accordance with law, and on November 21, 2005, this
Commission conducted a publiC hearing on the creation or extension of the District and the making of
the Improvements. The public hearing occurred on the date of the first regular meeting of the
Commission 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 3. Protests. Within the Protest Period, protests were filed with the City Clerk by the
property owners of five parcels, representing 3.3 percent of the total costs of the Improvements to be
assessed against properties in the District, as proposed.
Section 4. Creation of the District; Insufficiency of Protests. The Commission determines the
District is hereby created on the terms and conditions set forth in, and otherwise in accordance with, the
Resolution of Intention, as modified hereby. The protests against the creation or extension of the District
or the making of the Improvements filed during the Protest Period, are hereby found to be insufficient.
The findings and determinations made in the Resolution of Intention, including, without limitation, those
relating to benefits conferred, funding the Revolving Fund and securing the Bonds thereby, are hereby
ratified and confirmed.
Section 5. 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 "small 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 contained in Section 1 .150-2U)(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 $2,095,000 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. Budgetary 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 ADOPTED by the City Commission of the City of Bozeman, Montana, this 19th
day of December 2005.
AND
ATTEST:
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City Clerk
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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman,
Montana (the "City"), hereby certify that the attached resolution is a true copy of Commission Resolution
No. 3881, entitled: "A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 684; 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; CONFIRMING CERTAIN OTHER MATTERS; AND ESTABLISHING COMPLIANCE
WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE" (the
"Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly
adopted by the City Commission of the City at a meeting on December 19, 2005, and that the meeting
was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and
notice of such meeting given as required by law; and that the Resolution has not as of the date hereof
been amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the following
Commissioners voted in favor thereof: Commissioner Younaman. Commissioner Kirchhoff.
Commissioner Hietala. Commissioner Krauss and Mavor Cetraro ; voted against the same:
None ; abstained from voting thereon: None ; or were absent: None
WITNESS my hand officially this 20th
day of December 2005.
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City Clerk