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HomeMy WebLinkAboutResolution 5085 Authorizing Issuance and Negotiated Sale of General Obligation Bonds for the Bozeman Public Safety Center RESOLUTION NO. 5085 RESOLUTION RELATING TO UP TO $36,965,000 IN PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS; AUTHORIZING THE ISSUANCE AND PRIVATE NEGOTIATED SALE THEREOF 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. .The electors of the City at an election duly called, noticed and held on November 6, 2018, authorized this Commission to sell and issue general obligation bonds of the City in the aggregate principal amount of up to $36,965,000 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 (the "Project"), and costs associated with the sale and issuance of the bonds. The City has determined at this time to sell and issue general obligation bonds of the City (the "Series 2019 Bonds") to finance or reimburse the City for a portion of the costs of the Project and to pay costs of issuing the Series 2019 Bonds. The indebtedness to be evidenced by the Series 2019 Bonds and all other outstanding general obligation indebtedness of the City does not exceed the limitation set forth in Section 7-7- 4201, M.C.A. Page 1 of 5 Resolution 5085,Authorizing the Issuance and Private Negotiated Sale of General Obligation Bonds Section 2 Sale of Series 2019 Bonds; Bond Purchase Agreement. Pursuant to Montana Code Annotated, Sections 7-7-4254 and 17-5-107, this Commission hereby determines that it is in the best interests of the City to sell the Series 2019 Bonds through a private negotiated sale. Stifel, Nicolaus & Company, Incorporated, of Denver, Colorado (the "Underwriter"),will serve as underwriter of the Series 2019 Bonds. The Series 2019 Bonds shall be sold on terms and at a purchase price within the following limitations: (1) underwriter's discount shall not exceed 0.3% of the principal amount of the Series 2019 Bonds, exclusive of original issue premium or discount; (2) the aggregate principal amount of the Series 2019 Bonds shall not exceed $36,965,000; (3) the true interest cost of the Series 2019 Bonds shall not exceed 4.50% per annum; (4) the Series 2019 Bonds shall be subject to redemption on a date that is not later than one-half their term; and (5) the term of the Series 2019 Bonds shall not exceed twenty (20) years. All costs of issuing the Series 2019 Bonds (including, without limitation, underwriter's discount, fees and expenses of underwriter's counsel and bond counsel, fees of the paying agent and registrar, rating agency fees and related costs, Preliminary and final Official Statement costs, Depository Trust Company fees, CUSIP costs, costs of printing the Series 2019 Bonds, and miscellaneous expenses, if any) shall be paid by the City from proceeds of the Series 2019 Bonds. The Mayor, the City Manager, the City Finance Director and the Assistant City Manager are hereby authorized and directed to approve the principal amounts, purchase price, maturity dates, basic and additional interest rates, original issue discount and premium, and conditions Page 2 of 5 Resolution 5085,Authorizing the Issuance and Private Negotiated Sale of General Obligation Bonds pertaining to the purchase and sale of the Series 2019 Bonds, subject to the limitations contained above in this Section 2.Upon approving such terms,the Mayor,the City Manager,the City Finance Director and the Assistant City Manager are hereby authorized and directed to approve, execute and deliver a bond purchase agreement (the "Bond Purchase Agreement"), containing the agreement of the City to sell, and the agreement of the Underwriter to purchase, the Series 2019 Bonds on the terms so approved, and containing such other provisions as such officers shall deem necessary or appropriate. In the event of the absence or disability of any of the Mayor, the City Manager, the City Finance Director or the Assistant City Manager, another member or members of this Commission shall make such approvals and execute and deliver the Bond Purchase Agreement. The execution and delivery by not less than two appropriate officers of the City of the Bond Purchase Agreement shall be conclusive as to the approval of such officers of the terms of the Series 2019 Bonds and the agreement of the City to sell the Series 2019 Bonds on such terms in accordance with the provisions thereof. Section 3 Form. The form and details of the Series 2019 Bonds and the security therefor shall be prescribed by a subsequent resolution to be adopted by this Commission. Section 4 Preliminary Official Statement. The [Mayor, the City Manager, the City Finance Director, the Assistant City Manager], and other officers of the City, in cooperation with the Underwriter and Dorsey & Whitney LLP, as Bond Counsel, are hereby authorized and directed to prepare a Preliminary Official Statement to be distributed to potential purchasers of the Series 2019 Bonds. The Preliminary Official Statement shall contain such information as shall be advisable and necessary to accurately describe the City and the security for and terms and conditions of the Series 2019 Bonds.Each of the Mayor, the City Manager,the City Finance Director and the Assistant City Manager(or in the event of the absence or disability of any of the Mayor, the City Manager, the City Finance Director or the Assistant City Manager, another member of this Commission) is hereby authorized and directed Page 3 of 5 Resolution 5085,Authorizing the Issuance and Private Negotiated Sale of General Obligation Bonds on behalf of the City to approve the Preliminary Official Statement, and to deem it final as of its date in accordance with paragraph (b)(1) of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission under the Securities and Exchange Act of 1934, and to authorize the Underwriter to distribute the Preliminary Official Statement. Section 5 Continuing Disclosure. To permit the Underwriter and other participating underwriters in the primary offering of the Series 2019 Bonds to comply with paragraph (b)(5) of the Rule, the City will covenant and agree, for the benefit of the registered holders and beneficial owners from time to time of the outstanding Series 2019 Bonds, to provide annual reports of specified information and notice of the occurrence of certain events. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 12th day of August, 2019. C .-ANDRUS Mayor; `, /X ATTEST: O� 1302' ROBE CROUGH City Clerk ; �-� '��`- ■ 9 •• $S3 .'��� APPROVED S TO FORM: �9 TIN CO Ot0� G S#LLIVAN City A rney Page 4 of 5 Resolution 5085,Authorizing the Issuance and Private Negotiated Sale of General Obligation Bonds CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I,the undersigned, being the duly qualified and acting City Clerk of the City of Bozeman, Montana (the "City"), hereby certify that attached hereto is a true copy of Resolution No. 5085 entitled: "RESOLUTION RELATING TO UP TO $36,965,000 IN PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS; AUTHORIZING THE ISSUANCE AND PRIVATE NEGOTIATED SALE THEREOF 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 meeting on August 12, 2019, 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: MAy� ANT-TiA , DRU111 IA"(v-- ►-� r ()VML% MVe.5 s� v"`�� os voted a amst the same: abstained from voting thereon: or were absent: (C*AAA[5S1&1WL CLVQNI NL6W WITNESS my hand officially this 13th day of August, 2019. L?yO� $OZ .r ■ ■ � �,n ♦♦`� r ROBIN CROUGH City Clerk j■ "� w -�- ; 71L • . . . • �o . 17N Co S` Page 5 of 5 Jul 30, 2019 2:23 pm Prepared by Stifel TABLE OF CONTENTS City of Bozeman,Montana General Obligation Bonds,Series 2019 Market Rates as of July 30,2019 Report Page Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Bond Summary Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 STIFEL Jul 30,2019 2:23 pm Prepared by Stifel Page 1 SOURCES AND USES OF FUNDS City of Bozeman, Montana General Obligation Bonds,Series 2019 Market Rates as of July 30,2019 Sources: Bond Proceeds: Par Amount 34,525,000.00 Premium 3,722,586.60 38,247,586.60 Uses: Project Fund Deposits: Project Fund 37,965,000.00 Delivery Date Expenses: Cost of Issuance 175,000.00 Underwriter's Discount 103,575.00 278,575.00 Other Uses of Funds: Contingency 4,011.60 38,247,586.60 STIFEL Jul 30, 2019 2:23 pm Prepared by Stifel Page 2 BOND PRICING City of Bozeman, Montana General Obligation Bonds,Series 2019 Market Rates as of July 30,2019 Maturity Yield to Call Call Bond Component Date Amount Rate Yield Price Maturity Date Price Serial Bond: 07/O1/2020 945,000 3.000% 1.100% 101.450 07/01/2021 1,260,000 3.000% 1.110% 103.301 07/O1/2022 1,295,000 2.000% 1.140% 102.337 07/O1/2023 1,325,000 2.000% 1.160% 103.088 07/01/2024 1,350,000 2.000% 1.190% 103.744 07/01/202S 1,375,000 5.000% 1.290% 120.561 07/01/2026 1,445,000 5.000% 1.390% 123.244 07/01/2027 1,515,000 5.000% 1.490% 125.659 07/01/2028 1,595,000 5.000% 1.570% 127.995 07/01/2029 1,675,000 5.000% 1.660% 130.004 07/01/2030 1,755,000 4.000% 1.860% 119,034 C 2.024% 07/01/2029 100.000 07/01/2031 1,825,000 4.000% 2.020% 117.472 C 2.297% 07/01/2029 100.000 07/01/2032 1,900,000 4.000% 2.130% 116.412 C 2.491% 07/01/2029 100.000 07/O1/2033 1,975,000 4.000% 2.280% 114.984 C 2.690% 07/O1/2029 100.000 07/O1/2034 2,055,000 3.000% 2.530% 104.043 C 2.667% 07/O1/2029 100.000 07/O1/2035 2,115,000 3.000% 2.610% 103.341 C 2.738% 07/O1/2029 100.000 07/O1/2036 2,180,000 3.000% 2.690% 102.645 C 2.801% 07/O1/2029 100.000 07/01/2037 2,245,000 3.000% 2.740% 102,212 C 2.840% 07/01/2029 100.000 07/01/2038 2,315,000 3.000% 2.800% 101,696 C 2.882% 07/01/2029 100.000 07/01/2039 2,380,000 3.000% 2.860% 101.183 C 2.921% 07/O1/2029 100.000 34,525,000 Dated Date 09/24/2019 Delivery Date 09/24/2019 First Coupon O1/01/2020 Par Amount 34,525,000.00 Premium 3,722,586.60 Production 38,247,586.60 110.782293% Underwriter's Discount -103,575.00 -0.300000% Purchase Price 38,144,011.60 110.482293% Accrued Interest Net Proceeds 38,144,011.60 STIFEL Jul 30, 2019 2:23 pm Prepared by Stifel Page 3 BOND DEBT SERVICE City of Bozeman, Montana General Obligation Bonds,Series 2019 Market Rates as of July 30,2019 Period Ending Principal Coupon Interest Debt Service 07/01/2020 945,000 3.000% 940,799.72 1,885,799.72 07/01/2021 1,260,000 3.000% 1,194,350.00 2,454,350.00 07/01/2022 1,295,000 2.000% 1,156,550.00 2,451,550.00 07/01/2023 1,325,000 2.000% 1,130,650.00 2,455,650.00 07/01/2024 1,350,000 2.000% 1,104,150.00 2,454,150.00 07/01/2025 1,375,000 5.000% 1,077,150.00 2,452,150.00 07/01/2026 1,445,000 5.000% 1,008,400.00 2,453,400.00 07/01/2027 1,515,000 5.000% 936,150.00 2,451,150.00 07/01/2028 1,595,000 5.000% 860,400.00 2,455,400.00 07/01/2029 1,675,000 5.000% 780,650.00 2,455,650.00 07/01/2030 1,755,000 4.000% 696,900.00 2,451,900.00 07/01/2031 1,825,000 4.000% 626,700.00 2,451,700.00 07/01/2032 1,900,000 4.000% 553,700.00 2,453,700.00 07/01/2033 1,975,000 4.000% 477,700.00 2,452,700.00 07/01/2034 2,055,000 3.000% 398,700.00 2,453,700.00 07/01/2035 2,115,000 3.000% 337,050.00 2,452,050.00 07/01/2036 2,180,000 3.000% 273,600.00 2,453,600.00 07/01/2037 2,245,000 3.000% 208,200.00 2,453,200.00 07/01/2038 2,315,000 3.000% 140,850.00 2,455,850.00 07/01/2039 2,380,000 3.000% 71,400.00 2,451,400.00 34,525,000 13,974,049.72 48,499,049.72 STIFLL Jul 30,2019 2:23 pm Prepared by Stifel Page 4 BOND DEBT SERVICE City of Bozeman, Montana General Obligation Bonds,Series 2019 Market Rates as of July 30,2019 Period Ending Principal Coupon Interest Debt Service 07/01/2020 945,000 3.000% 940,799.72 1,885,799.72 07/01/2021 1,260,000 3.000% 1,194,350.00 2,454,350.00 07/01/2022 1,295,000 2.000% 1,156,550.00 2,451,550.00 07/01/2023 1,325,000 2.000% 1,130,650.00 2,455,650.00 07/01/2024 1,350,000 2.000% 1,104,150.00 2,454,150.00 07/01/2025 1,375,000 5.000% 1,077,150.00 2,452,150.00 07/01/2026 1,445,000 5.000% 1,008,400.00 2,453,400.00 07/01/2027 1,515,000 5.000% 936,150.00 2,451,150.00 07/01/2028 1,595,000 5.000% 860,400.00 2,455,400.00 07/01/2029 1,675,000 5.000% 780,650.00 2,455,650.00 07/01/2030 1,755,000 4.000% 696,900.00 2,451,900.00 07/01/2031 1,825,000 4.000% 626,700.00 2,451,700.00 07/01/2032 1,900,000 4.000% 553,700.00 2,453,700.00 07/01/2033 1,975,000 4.000% 477,700.00 2,452,700.00 07/01/2034 2,055,000 3.000% 398,700.00 2,453,700.00 07/01/203S 2,115,000 3.000% 337,050.00 2,452,050.00 07/01/2036 2,180,000 3.000% 273,600.00 2,453,600.00 07/01/2037 2,245,000 3.000% 208,200.00 2,453,200.00 07/01/2038 2,315,000 3.000% 140,850.00 2,455,850.00 07/01/2039 2,380,000 3.000% 71,400.00 2,451,400.00 34,525,000 13,974,049.72 48,499,049.72 STIFEL Jul 30, 2019 2:23 pm Prepared by Stifel Page 5 BOND SUMMARY STATISTICS City of Bozeman, Montana General Obligation Bonds,Series 2019 Market Rates as of July 30,2019 Dated Date 09/24/2019 Delivery Date 09/24/2019 Last Maturity 07/01/2039 Arbitrage Yield 2.284105% True Interest Cost(TIC) 2.438183% Net Interest Cost(NIC) 2.586787% All-In TIC 2.487158% Average Coupon 3.490850% Average Life(years) 11.595 Duration of Issue(years) 9.513 Par Amount 34,525,000.00 Bond Proceeds 38,247,586.60 Total Interest 13,974,049.72 Net Interest 10,355,038.12 Total Debt Service 48,499,049.72 Maximum Annual Debt Service 2,455,850.00 Average Annual Debt Service 2,453,232.81 Underwriter's Fees(per$1000) Average Takedown Other Fee 3.000000 Total Underwriter's Discount 3.000000 Bid Price 110.482293 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bond 34,525,000.00 110.782 3.491% 11.595 26,909.65 34,525,000.00 11.595 26,909.65 All-In Arbitrage TIC TIC Yield Par Value 34,525,000.00 34,525,000.00 34,525,000.00 +Accrued Interest +Premium(Discount) 3,722,586.60 3,722,586.60 3,722,586.60 -Underwriter's Discount -103,575.00 -103,575.00 -Cost of Issuance Expense -175,000.00 -Other Amounts Target Value 38,144,011.60 37,969,011.60 38,247,586.60 Target Date 09/24/2019 09/24/2019 09/24/2019 Yield 2.438183% 2.487158% 2.284105% STIFEL