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Home My WebLink About07-23-18 City Commission Packet Materials - A1. Res. 4936, BPSC Ballot Language Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Andrea Surratt, City Manager Anna Rosenberry, Assistant City Manager Greg Sullivan, City Attorney SUBJECT: Resolution 4936, a Resolution of the City Commission Submitting to the Qualified Electors of the City of Bozeman, Montana, the Question of Issuing General Obligation Bonds for the Bozeman Public Safety Center in the Aggregate Principal Amount of up to Thirty-Six Million Nine Hundred Sixty- Five Thousand and No/100 Dollars ($36,965,000.00) for the Purpose of Paying, with Other Available Funds of the City, the Costs of Designing, Constructing, Equipping and Furnishing on City-Owned Land at the Corner of East Oak Street and North Rouse Avenue a New Bozeman Public Safety Center, to Include the City's Fire Station #1, Police Department Headquarters, Municipal Courts, Prosecution, Victim Services, and Other Justice Services, and Associated Site Improvements, and Costs Associated with the Sale and Issuance of the Bonds for the Bozeman Public Safety Center MEETING DATE: July 23, 2018 AGENDA ITEM TYPE: Action RECOMMENDATION: Listen to the presentation, take public comment, and adopt Resolution No. 4936. BACKGROUND: On April 23, 2018, after analyzing options to move forward, the Commission directed the City Manager to finalize plans for a Bozeman Public Safety Center on city-owned property at the corner of Oak Street and Rouse Avenue, and to return to the Commission with information for a future election. Materials prepared for that meeting included descriptions and cost estimates (link: http://weblink.bozeman.net/WebLink8/0/doc/154622/Electronic.aspx.) Tonight we will be presenting detailed information created for the purpose of educating people about the needs for the Bozeman Public Safety Center. The attached Resolution must be adopted in order to have this question put to City voters this November. The resolution contains the specific ballot language that will appear on all ballots within the city limits of Bozeman. UNRESOLVED ISSUES: None. ALTERNATIVES: Do not adopt the resolution. Modify the resolution. 116 FISCAL EFFECTS: The election costs related to including this measure on the ballots in November 2018 are estimated to be $8,000, and have been included in the current budget. If approved, the ballot measure will require additional property tax levies city-wide. The estimated costs have been included in previous Commission Memo materials, on April 23, 2018. The link to those online materials can be found above. Attachments: Resolution No. 4936 Form of Ballot - Official Report compiled on: July 16, 2018 117 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and appointed City Clerk of the City of Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. 4936 entitled: “A RESOLUTION OF THE CITY COMMISSION SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF BOZEMAN, MONTANA, THE QUESTION OF ISSUING GENERAL OBLIGATION BONDS FOR THE BOZEMAN PUBLIC SAFETY CENTER IN THE AGGREGATE PRINCIPAL AMOUNT OF UP TO THIRTY-SIX MILLION NINE HUNDRED SIXTY-FIVE THOUSAND AND NO/100 DOLLARS ($36,965,000.00) FOR THE PURPOSE OF PAYING, WITH OTHER AVAILABLE FUNDS OF THE CITY, THE COSTS OF DESIGNING, CONSTRUCTING, EQUIPPING AND FURNISHING ON CITY-OWNED LAND AT THE CORNER OF EAST OAK STREET AND NORTH ROUSE AVENUE A NEW BOZEMAN PUBLIC SAFETY CENTER, TO INCLUDE THE CITY’S FIRE STATION #1, POLICE DEPARTMENT HEADQUARTERS, MUNICIPAL COURTS, PROSECUTION, VICTIM SERVICES, AND OTHER JUSTICE SERVICES, AND ASSOCIATED SITE IMPROVEMENTS, AND COSTS ASSOCIATED WITH THE SALE AND ISSUANCE OF THE BONDS FOR THE BOZEMAN PUBLIC SAFETY CENTER” (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 at a regular meeting on July 23, 2018, 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 Commission Members voted in favor thereof: ; those Commissioners who voted against the same: . WITNESS my hand and seal officially this __ day of July, 2018. (SEAL) Robin Crough City Clerk 118 RESOLUTION NO. 4936 A RESOLUTION OF THE CITY COMMISSION SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF BOZEMAN, MONTANA, THE QUESTION OF ISSUING GENERAL OBLIGATION BONDS FOR THE BOZEMAN PUBLIC SAFETY CENTER IN THE AGGREGATE PRINCIPAL AMOUNT OF UP TO THIRTY-SIX MILLION NINE HUNDRED SIXTY-FIVE THOUSAND AND NO/100 DOLLARS ($36,965,000.00) FOR THE PURPOSE OF PAYING, WITH OTHER AVAILABLE FUNDS OF THE CITY, THE COSTS OF DESIGNING, CONSTRUCTING, EQUIPPING AND FURNISHING ON CITY-OWNED LAND AT THE CORNER OF EAST OAK STREET AND NORTH ROUSE AVENUE A NEW BOZEMAN PUBLIC SAFETY CENTER, TO INCLUDE THE CITY’S FIRE STATION #1, POLICE DEPARTMENT HEADQUARTERS, MUNICIPAL COURTS, PROSECUTION, VICTIM SERVICES, AND OTHER JUSTICE SERVICES, AND ASSOCIATED SITE IMPROVEMENTS, AND COSTS ASSOCIATED WITH THE SALE AND ISSUANCE OF THE BONDS FOR THE BOZEMAN PUBLIC SAFETY CENTER BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”) as follows: Section 1. Recitals. 1.01. Authorization. A city is authorized pursuant to Section 7-7-4221, Montana Code Annotated, upon approval of the electorate of the city, to issue general obligation bonds pledging the general credit of the city for the purpose of designing, constructing and equipping public buildings, provided that such indebtedness will not cause the total indebtedness of the city to exceed 2.5% of the total assessed value of taxable property of the city, determined as provided in Section 15-8-111, Montana Code Annotated, ascertained by the last assessment for State and county taxes. A city council or commission is authorized pursuant to Section 7-7-4223, Montana Code Annotated, to call a bond election by adopting a resolution to that effect. 1.02. Proposed Project. The Commission determines there should be submitted to the electors of the City qualified to vote at bond elections the question of whether the Commission shall be authorized to sell and issue bonds of the City in one or more series to obtain funds for the purpose of paying, with other available funds of the City, the costs of designing, constructing, equipping and furnishing on City-owned land at the corner of East Oak Street and North Rouse Avenue a new Bozeman Public Safety Center, to include the City’s fire station #1, police department headquarters, municipal courts, prosecution, victim services, and other justice services, and associated site improvements, and costs associated with the sale and issuance of the 119 2 bonds for the Bozeman Public Safety Center, which bonds shall bear interest at rates to be determined at the time of sale, payable semiannually over a term not to exceed twenty years for each series of bonds, and subject to redemption as required by law. 1.03. Debt Limitation. The Commission has determined that the issuance of general obligation bonds up to the total principal amount of Thirty-Six Million Nine Hundred Sixty-Five Thousand and No/100 Dollars ($36,965,000.00) will not cause the City to exceed its general obligation indebtedness limitation, which is currently calculated to be $168,633,782 (i.e., 2.50% x $6,745,351,312). 1.04. Election. The Commission has determined there should be submitted to the electors of the City qualified to vote at bond elections the question of whether the Commission shall be authorized to issue and sell general obligation bonds of the City to obtain funds for the purpose described in the ballot question. 1.05. Bonds. It is the judgment of the Commission that the total principal amount of up to Thirty-Six Million Nine Hundred Sixty-Five Thousand and No/100 Dollars ($36,965,000.00) in general obligation bonds, together with other moneys available to the City, will be necessary to carry out the purpose set forth Section 1.02 above. It is also the judgment and determination of the Commission that such general obligation bonds may be issued in multiple series, each series payable during a term not to exceed twenty (20) years. Section 2. Calling of the Election. The City Commission hereby calls and directs that a special City election be held in conjunction with the general election on November 6, 2018, for the purpose of voting on the following question: Shall the City Commission of the City of Bozeman, Montana (the “City”) be authorized to sell and issue general obligation bonds of the City for the Bozeman Public Safety Center in one or more series in an aggregate principal amount not to exceed Thirty-Six Million Nine Hundred Sixty-Five Thousand and No/100 Dollars ($36,965,000.00) bearing interest at rates to be determined at the time of sale, payable semiannually over a term not to exceed twenty years for each series of bonds, for the purpose of paying, with other available funds of the City, the costs of designing, constructing, equipping and furnishing on City-owned land at the corner of East Oak Street and North Rouse Avenue a new Bozeman Public Safety Center, to include the City’s fire station #1, police department headquarters, municipal courts, prosecution, victim services, and other justice services, and associated site improvements, and costs associated with the sale and issuance of the bonds for the Bozeman Public Safety Center? Section 3. Conduct of Election. All qualified electors of the City shall be entitled to vote at the bond election. The City Clerk is hereby authorized and directed to give notice of the call and details of this election to the Gallatin County Election Administrator as soon as practicable and in any event on or the before the date required by the Gallatin County Election Administrator. The Gallatin County Election Administrator is requested to give notice of the close of registration and thereafter prepare printed lists of the qualified electors in the City 120 3 entitled to vote in the election in the City and to conduct the election in the form and manner prescribed by law. Section 4. Notice of Election. The City Clerk or the Gallatin county Election Administrator, as appropriate, is hereby authorized and requested to cause notice of the call and holding of the election to be given by publishing notice at least three times no earlier than 40 days and no later than 10 days before the election in the Bozeman Daily Chronicle, a newspaper of general circulation in Gallatin County. The notice of election as published shall read substantially as shown on Exhibit A hereto (which is incorporated by reference and made a part hereof). Section 5. Form of Ballot. The ballot shall be printed in substantially the following form: 121 4 OFFICIAL BALLOT CITY OF BOZEMAN, MONTANA BOZEMAN PUBLIC SAFETY CENTER GENERAL OBLIGATION BOND ELECTION NOVEMBER 6, 2018 INSTRUCTIONS TO VOTERS: Completely fill in the oval using a blue or black ink pen before the words “PUBLIC SAFETY CENTER BONDS—YES” if you wish to vote for the Public Safety Center bond issue; if you are opposed to the Public Safety Center bond issue, completely fill in the oval using a blue or black ink pen before the words “PUBLIC SAFETY CENTER BONDS—NO.” Shall the City Commission of the City of Bozeman, Montana (the “City”) be authorized to sell and issue general obligation bonds of the City for the Bozeman Public Safety Center in one or more series in an aggregate principal amount not to exceed Thirty-Six Million Nine Hundred Sixty-Five Thousand and No/100 Dollars ($36,965,000.00) bearing interest at rates to be determined at the time of sale, payable semiannually over a term not to exceed twenty years for each series of bonds, for the purpose of paying, with other available funds of the City, the costs of designing, constructing, equipping and furnishing on City-owned land at the corner of East Oak Street and North Rouse Avenue a new Bozeman Public Safety Center, to include the City’s fire station #1, police department headquarters, municipal courts, prosecution, victim services, and other justice services, and associated site improvements, and costs associated with the sale and issuance of the bonds for the Bozeman Public Safety Center? PUBLIC SAFETY CENTER BONDS – YES PUBLIC SAFETY CENTER BONDS – NO 122 5 Section 6. Notice to County Election Administrator. A copy of this Resolution will be provided to the Gallatin County Election Administrator as soon as possible after its adoption and approval in order to inform the Election Administrator of the details of the special election and the pertinent requests and authorizations as to the conduct of the special election. 7. Reimbursement Expenditures. (a) For purposes of this Section 7, “project” means the Bozeman Public Safety Center. 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. (b) 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 1.150-2(j)(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 a project within the scope of this resolution have been paid by the City before the date 60 days before the date of adoption of this resolution. (c) The City reasonably expects to reimburse the expenditures made for costs of such a project out of the proceeds of bonds in an estimated maximum aggregate principal amount of up to Thirty-Six Million Nine Hundred Sixty-Five Thousand and No/100 Dollars ($36,965,000.00) after the date of payment of all or a portion of the costs of such a project. 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. (d) 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 such a project, 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. 123 6 (e) The City’s City Finance Director 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 project. Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the bonds or the project and shall specifically identify the actual original expenditure being reimbursed. PASSED, ADOPTED, AND APPROVED by the City Commission of Bozeman, Montana, this 23rd day of July, 2018. CITY OF BOZEMAN, MONTANA ____________________________ CYNTHIA L. ANDRUSMayor Attest: ____________________________ ROBIN CROUGH City Clerk Approved as to form: _________________________________ GREG SULLIVANCity Attorney 124 A-1 EXHIBIT A NOTICE OF GENERAL OBLIGATION BOND ELECTION CITY OF BOZEMAN, MONTANA BOZEMAN PUBLIC SAFETY CENTER NOVEMBER 6, 2018 NOTICE IS HEREBY GIVEN by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), that pursuant to a certain resolution duly adopted at a regular meeting of the Commission on July 23, 2018, a special city election of the registered voters of the City will be held in conjunction with the general election on November 6, 2018, for the purpose of voting on the following question: Shall the City Commission of the City of Bozeman, Montana (the “City”) be authorized to sell and issue general obligation bonds of the City for the Bozeman Public Safety Center in one or more series in an aggregate principal amount not to exceed Thirty-Six Million Nine Hundred Sixty-Five Thousand and No/100 Dollars ($36,965,000.00) bearing interest at rates to be determined at the time of sale, payable semiannually over a term not to exceed twenty years for each series of bonds, for the purpose of paying, with other available funds of the City, the costs of designing, constructing, equipping and furnishing on City-owned land at the corner of East Oak Street and North Rouse Avenue a new Bozeman Public Safety Center, to include the City’s fire station #1, police department headquarters, municipal courts, prosecution, victim services, and other justice services, and associated site improvements, and costs associated with the sale and issuance of the bonds for the Bozeman Public Safety Center? The polls will be open between the hours of 7:00 a.m. and 8:00 p.m., on November 6, 2018, and the polling places for the election will be the normal polling places for City residents during a general election. Close of registration is October 9, 2018. Absentee ballots may be obtained at the office of the Gallatin County Election Administrator at Gallatin County Courthouse, 311 West Main, Bozeman, Montana, from October 9, 2018 until 12:00 noon, November 5, 2018. Electors who miss the close of registration deadline may register late at the office of the Gallatin County Election Administrator at Gallatin County Courthouse, 311 West Main, Bozeman, Montana, from October 10, 2018 through 12:00 p.m. (noon) on November 5, 2018, and on November 6, 2018 from 7:00 a.m. through 8:00 p.m. DATED this ____ day of ______________, 2018. /s/Charlotte Mills Gallatin County Election Administrator Publish: October 7, 2018, October 14, 2018, and October 21, 2018 125 OFFICIAL BALLOT CITY OF BOZEMAN, MONTANA BOZEMAN PUBLIC SAFETY CENTER GENERAL OBLIGATION BOND ELECTION NOVEMBER 6, 2018 INSTRUCTIONS TO VOTERS: Completely fill in the oval using a blue or black ink pen before the words “PUBLIC SAFETY CENTER BONDS—YES” if you wish to vote for the public safety center bond issue; if you are opposed to the public safety center bond issue, completely fill in the oval using a blue or black ink pen before the words “PUBLIC SAFETY CENTER BONDS—NO.” Shall the City Commission of the City of Bozeman, Montana (the “City”) be authorized to sell and issue general obligation bonds of the City for the Bozeman Public Safety Center in one or more series in an aggregate principal amount not to exceed Thirty-Six Million Nine Hundred Sixty-Five Thousand and No/100 Dollars ($36,965,000.00) bearing interest at rates to be determined at the time of sale, payable semiannually over a term not to exceed twenty years for each series of bonds, for the purpose of paying, with other available funds of the City, the costs of designing, constructing, equipping and furnishing on City-owned land at the corner of East Oak Street and North Rouse Avenue a new Bozeman Public Safety Center, to include the City’s fire station #1, police department headquarters, municipal courts, prosecution, victim services, and other justice services, and associated site improvements, and costs associated with the sale and issuance of the bonds for the Bozeman Public Safety Center? PUBLIC SAFETY CENTER BONDS – YES PUBLIC SAFETY CENTER BONDS – NO 126