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HomeMy WebLinkAboutResolution 3034 Relating to issuance and sale of $5 million GO bonds -.. ~" -........,_.~"- COMMISSION RESOLUTION NO. 3034 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO THE ISSUANCE AND SALE OF ITS GENERAL OBLIGATION BONDS IN THE AMOUNT OF $5,000,000 FOR TRANSPORTATION PROJECTS CONTAINED IN THE BOZEMAN URBAN TRANSPORTATION PLAN 1993 UPDATE. NOW, THEREFORE, 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 8, 1994, at which 8,094 (52%) ofthe registered electors voted, by a vote of 4,681 in favor, and 3,413 opposed, authorized this Commission to issue and sell $5,000,000 principal amount of bonds (the "Bonds") of the City for the purpose of financing the implementation of a series of transportation projects contained in the Bozeman Urban Transportation Plan 1993 Update (the "Project") and paying costs associated with the sale and issuance of the Bonds. The indebtedness to be evidenced by the Bonds will not exceed 28% of the taxable value of the property subject to taxation by the City as ascertained by the last completed assessment for state, county and school taxes previous to this date. The City has full power and authority to issue the Bonds. Section 7-7-4236, M.C.A., provides that within thirty (30) days after the date of election if a sufficient percentage of the qualified electors have voted on the question and if a sufficient percentage has voted in favor of the Bonds, the Commission shall adopt a resolution providing for the issuance of Bonds. Section 2 Intention to Issue and Sell Bonds. Confirming that a sufficient percentage of the qualified electors voted on the issuance of the Bonds and that a sufficient percentage of the electors approved the issuance of the Bonds, the Commission hereby determines and states its intention to issue and sell the Bonds, in one or more series, authorized by the electors as described in Section 1 hereof and further determines that calling for the sale of the Bonds is not at this time practical nor in the best interest of the City in that the City does not have sufficient information regarding bids, construction contracts and the timing of the construction to currently determine the .._----~ most advantageous time for the sale of the Bonds. The adoption of this resolution is intended to meet the requirements of Section 7-7A236, M.C.A. Upon receipt of the foregoing information and a determination by the City that it is in the best interest of the City to schedule and call for the sale of the Bonds, this Commission shall forthwith adopt a resolution calling for the sale of the Bonds in accordance with the provisions of law, the authorization granted by the electors and Section 3 hereof. Section 3 The Bonds. The Bonds will be issued in one or more series in an aggregate principal amount not to exceed $5,000,000; will be payable over a term not to exceed nineteen (19) years; will bear interest at a rate determined by the Commission upon competitive sale conducted in accordance with Section 7-7A251 through 7-7A254. M.C.A.; will be used for the purpose of financing the implementation of a series of transportation projects contained in the Bozeman Urban Transportation Plan 1993 Update and paying costs associated with the sale and issuance of the Bonds; and shall be redeemable after one-half of their term. Section 4 Reimbursement of Costs Paid Before Bonds Are Issued. (a) The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, such as the Bonds, all or a portion of which are to be used to reimburse the borrower for Project expenditures paid by the borrower prior to the date of issuance of the Bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City adopt a statement of official intent to reimburse the borrower from proceeds of the Bonds for an original expenditure not later than 60 days after payment of the original expenditure. The City expects to undertake the Project and pay costs thereof before the Bonds are issued. The Regulations also generally require that the Bonds be issued and the reimbursement allocation be made from the proceeds of the Bonds within 18 months after the later of (i) the date the expenditure is paid or (ii) the date the Project is placed in service or abandoned, but 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) By this resolution and based on representations of the borrower, the City - 2 - . declares its official intent to reimburse the expenditures made for costs of the Project from proceeds of the Bonds after the date of payment of all or a portion of the costs of the 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)(31 of the Regulations. (c) Based on representations of the borrower, 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(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 the Project have heretofore been paid by the borrower. (d) Based on representations of the borrower, there are no borrower 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 Project, other than pursuant to the issuance of the Bonds. The statement of intent contained in this resolution, therefore, is consistent with the borrower's budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 5th day of December 1994. ~ ~ -- ATTEST: V~ ;;/ du~ ROBIN L. SULLIVAN Clerk of the Commission APPROVED AS TO FORM: - 3 - --..