HomeMy WebLinkAboutResolution 3097 Refinancing DNRC bonds (Lyman Creek)
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COMMISSION RESOLUTION NO. 3097
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN.
MONTANA. RELATING
TO OUTSTANDING
BONDS OWNED BY THE
DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION; GRANTING
PRELIMINARY APPROVAL TO THE AMENDMENT THEREOF.
WHEREAS. the City of Bozeman (the "Issuer") has issued and there is outstanding one or
more bonds (collectively, the "Outstanding Bond") which was purchased and is now owned by the
Department of Natural Resources and Conservation of the State of Montana (the "DNRC") under
the State's Coal Severance Tax Renewable Resource Program (the "Program"); and
WHEREAS. the title. date of issue, original principal amount, outstanding principal amount.
non-subsidized interest rate. current annual non-subsidized payment amount and proposed
maximum annual non-subsidized payment amount of the Outstanding Bond appears on Exhibit A
hereto, which is hereby incorporated herein and made a part hereof; and
WHEREAS. the Issuer has been informed by the DNRC of its intention to advance refund
in whole or in part the State's Coal Severance Tax Bonds. Department of Natural Resources and
Conservation Water Development Program, 1988 Series A. 1989 Series A. and 1990 Refunding
Series B (collectively, the "Refunded Bonds"). to permit the DNRC to reduce the semi-annual
payments on the loans made to local governments financed with the proceeds of the 1 988 Series
A Bonds. the 1989 Series A Bonds and the State's Coal Severance Tax Bonds. Department of
Natural Resources and Conservation Water Development Program, 1985 Series A, 1985 Series B,
and 1987 Series C, including the loan evidenced by the Outstanding Bond, during the remaining
term of the loan following the subsidized interest rate period, if such payments can be reduced by
an amount equal to at least 3 percent; and
WHEREAS. representatives of the DNRC have presented to this City Commission (the
"Governing Body") a proposal pursuant to which the DNRC will advance refund the Refunded Bonds
if such refunding would enable the DNRC to reduce the amount of the semi-annual payments on
the Outstanding Bond after the expiration of the subsidy period, if any. by at least 3 percent; and
WHEREAS, to effect this proposal. this Governing Bond will be required: (i) to adopt a
resolution amending the provisions of the resolution authorizing the issuance of the Outstanding
Bond; (ii) to execute and deliver a new amended and restated Bond to the DNRC reflecting a new
principal amount and interest rate (the "Amended and Restated Bond"), upon surrender by the
DNRC of the Outstanding Bond; and (iii) to execute and deliver certain closing certificates to the
DNRC, relating to the execution and delivery of the Amended and Restated Bond. the tax exemption
of interest thereon for federal income tax purposes and the adoption of such resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana, as follows:
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Section 1. The Governing Body hereby declares the intention of the Issuer (i) to reduce
the amount of the semi-annual
payments on the Outstanding Bond by increasing the principal
amount thereof and reducing the
interest rate thereon in accordance with the proposal of the
DNRC; (ii) to adopt the necessary
resolution, authorizing the execution and delivery of the Amended
and Restated Bond, closing certificates
and other necessary documents; and (iii) to execute and
deliver to the DNRC the Amended
and Restated Bond evidencing an increased principal amount and
a reduced interest rate on the
Outstanding Bond, upon surrender thereof by the DNRC; provided
that, during each year the Bond
is outstanding, the payments on the Bond in each year are reduced
in amount by not less than 3
percent except during the subsidized interest rate period, if any, when
such payments shall remain unchanged.
It is understood that the principal amount of the Amended
and Restated Bond will include,
in addition to the greater principal amount of bonds of the State
required to advance refund the
Refunded Bonds, the Issuer's allocable share of the cots incurred
by the DNRC in advance refunding
the Refunded Bonds and amending and restating the
Outstanding Bond.
Section 2. The DNRC is authorized to rely on this resolution and, for a period ending on
December 31, 1996, the Issuer
hereby consents to the advance refunding of the Refunded Bonds
and the amendment and restatement
of the Outstanding Bond in accordance with the proposal of
the DNRC, but subject to the
limitations contained in Section 1.
Section 3. The Governing Body hereby authorizes and directs the officers of the Issuer
to cooperate with the DNRC and
to prepare any documents and take all steps necessary to permit
the Issuer to participate in
the refinancing program proposed by the DNRC.
This resolution shall become effective immediately upon passage.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held
on the 4th day of December 1995.
ATTEST:
(2J:
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ROBIN L. SULLIVAN
Clerk of the Commission
APPROVED AS TO FORM:
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DEPARTMENT OF NATURAL RESOURCES
AND CONSERVATION
MARC RACICOT, GOVERNOR
1625 ELEVENTH AVENUE
Sf ATE OF MONTANA
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DIRECTOR'S OFFICE (406) 444-2074
TELEFAX NUMBER (406) 444-2684
PO BOX 201601
HELENA,. MONTANA 596Z0.1601
MEMO
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To: All Local Government
IT ... rs of th . C
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From: Anna M. Miller
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DNRC
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Subject: Refunding Bonds
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Date: January 10, 1996
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Recently you were sent a Ce
[kate and a Resolution to adopt to start the retinancing
process. We have receiv
those back. The DNRC will be calculating your new payment
amounts. You will need to adopt
a new bond resolution and other documents to reflect your
new payment amounts.
We are: having those documents prepared for your local government. We will need you to
have this resolution and others back to us by February 7, 1996. In some cases you will be
able to adopt the resolution at your first regularly scheduled meeting in February, for other
local governments you may need to have a special meeting to adopt the resolution in order
for the resolution to be back to our Bond Counsel, Dorsey and Whitney, by February 7,
, 1996.
The new bond resolution and other documents reflecting the change in payment will be
mailed on orabaut January 19, 1-996,
If your local government has a meeting the week of January 22nd and would like to adopt
the resolution that week please .let me know and we will have your resolution out so that you
can adopt it and sign off on the other documents the week of January 22, 1996.
Please call me if you have questions. My phone number is 406-444-6668.
Thanks for all your help.
AMM:mr
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