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HomeMy WebLinkAboutResolution 3087 Water system refunding revenue bonds, series 1995 .- .-- -.--. . ".---.-.-- -.----....- ---- COMMISSION RESOLUTION NO. 3087 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO WATER SYSTEM REFUNDING REVENUE BONDS, SERIES 1995; AUTHORIZING THE ISSUANCE AND SALE THEREOF AND DELEGATING CERTAIN DUTIES RELATED THERETO TO THE CITY MANAGER AND DIRECTOR OF FINANCE. NOW, THEREFORE, BE IT RESOLVED by the City Commission (the "Commission") of the City of Bozeman, Montana (the "City"), as follows: Section 1 Recitals Under the provisions of Title 7, Chapter 7, Parts 45 and 46 (the "Act"), the City is authorized to issue bonds to refund revenue bonds issued for any of the purposes authorized in Title 7, Chapter, Part 44. Pursuant to such authorization, this Commission issued and sold water system refunding revenue bonds of the City denominated Series 1982 Bonds, dated as of December 1, 1982, in the original aggregate principal amount of $5,000,000 (the "Original Bonds"). For the purpose of reducing the interest cost on the Original Bonds and to construct additional improvements to the City water system, the Commission issued its Water System Refunding Revenue Bonds, Series 1989A, in the aggregate principal amount of $5,625,000 (the "Outstanding Bonds"). The Outstanding Bonds are currently outstanding in the aggregate principal amount of $4,270,000, mature on December 1 in the years 1995 through 2006, and bear interest at the rates of 6.85% to 7.50% per annum. The City Finance Director estimates that, in today's market, the Outstanding Bonds can be refunded to achieve a net present value debt service savings of $260,818, or 6.11 % of the principal amount of the Refunded Bonds, using the yield of the Series 1995 Bonds as the discount factor, calculated over the term of the Outstanding Bonds. Section 2 Authorization For the purpose of reducing the interest cost on the indebtedness authorized in Section 1, evidenced by the Outstanding Bonds, it is hereby determined that it is in the best interests of the Commission to sell its water system refunding revenue bonds, pursuant to the Act, in order to refund the Outstanding Bonds (the "Refunded Bonds"). Such bonds shall be denominated "Water System Refunding Revenue Bonds, Series 1995" (the "Series 1995 Bonds"), and shall be issued in the aggregate principal amount necessary, but not greater than the amount necessary, to provide funds to payor redeem the Refunded Bonds and to '~ pay Costs of Issuance of the Series 1995 Bonds. The Refunded Bonds are subject to redemption on September 1, 1997, at a redemption price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption, at a premium equal to two percent of the amount to be redeemed. It is hereby determined, to be in the best interest of the Commission that the Refunded Bonds be called for redemption on September 1, 1997 and that the Commission issue its refunding bonds (the "Series 1995 Bonds"), as authorized by Section 7-7-4501 of the Act and the Bond Resolution, in order to refund the Refunded Bonds and pay costs associated therewith. Section 3 Authorization of Sale of Bonds Pursuant to the Act, this Commission hereby determines that it would be in the best interests of the Commission to sell the Series 1995 Bonds at a competitive sale to be conducted by the Commission in compliance with Section 7-7-4433, MCA. The Commission ratifies and confirms the appointment of Dain Bosworth as financial consultant to the City for the offering and sale of the Bonds (the "Financial Advisor"). The City Manger and Director of Finance, in consultation with the Financial Advisor, are authorized to fix the principal amount of the bonds, to schedule the date of sale, prepare the notice of sale and terms and conditions of sale, and cause the sale to be conducted in accordance with the provisions of 7-7-4433, MCA, subject to the following limitations and conditions: (1) the aggregate principal amount of the Series 1995 Bonds shall not exceed the amount necessary to refund the Outstanding Bonds and pay Costs of Issuance and provide underwriter's discount of up to 1.25%; (2) the average annual interest rate on the Series 1995 Bonds (including any additional interest) is at least fifty-hu'ndredths percent (0.50%) less than the average annual interest rate on the Outstanding Bonds, and (3) the term of the Series 1995 Bonds shall not exceed 12 years. All costs of issuing the Series 1995 Bonds (including, without limitation, the fees and expenses of bond counsel, the fees of the Paying Agent and Registrar, the fee of the Escrow Agent, if any, and the cost of printing the Preliminary Official Statement, the Official Statement and the Series 1995 Bonds) (the "Cost of Issuance") shall be paid by the City from either the proceeds of the Bonds or other available funds of the City. The sale of the Series 1995 Bonds will be conducted at a meeting of the Commission. The form of the Series 1995 Bonds and the security therefor shall be prescribed by a subsequent resolution to be adopted by this Commission. - 2 - ---.......-----.--- Section 4 Preliminarv Official Statement The City Manager and the Director of Finance and other officers of the City, in cooperation with the Financial Advisor and Dorsey & Whitney, as bond counsel, are hereby authorized and directed to prepare a Preliminary Official Statement to be distributed by the Purchaser to potential purchasers of the Series 1995 Bonds. The City Manager and the Director of Finance (or in the event of the absence or disability of either the City Manager or the Director of Finance, a member of this Commission) are hereby authorized and directed on behalf of the City to approve the Preliminary Official Statement and deem it a "final" official statement as of its date, in accordance with Rule 15c2-12(b)(1) promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 16th day of October 1995. ATTEST: ~.,~ Clerk of the Commission APPROVED AS TO FORM: - 3 -