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HomeMy WebLinkAboutResolution 3018 Sale of pooled bonds for SIDs 660 and 663 RESOLUTION NO. 3018 RESOLUTION RELATING TO $374,600 POOLED SPECIAL IMPROVEMENT DISTRICT BONDS, SERIES 1994 (SPECIAL IMPROVEMENT DISTRICT NOS. 660 AND 663); AUTHORIZING THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF BE IT RESOLVED by the City Commission (the "Commission") of the City of Bozeman, Montana (the "City"), as follows: Section 1. Recitals. (a) Special Improvement District Nos. 660 and 663 (collectively, the "Districts") have been each duly and validly created by the City for the purpose of providing certain public improvements (the "Improvements") of special benefit to the properties wi thin the Districts. (b) It is necessary that special improvement district bonds be issued and sold in an aggregate principal amount of $374,600 (the "Bonds") to finance the costs of engineering, constructing and installing the Improvements, the administrative services for each of the Districts and costs of issuance of the Bonds. (c) The City is authorized pursuant to Montana Code Annotated, Section 7-12-4193, to issue and sell special improvement district bonds of more than one district in a single offering on a pooled basis upon a determination that such pooling is in the best interests of the Districts and the City. (d) The City is further authorized by Montana Code Annotated, Section 7-12-4204(1) to sell the Bonds at a price less than the principal amount thereof, but including interest thereon to the date of delivery, if this Commission determines that such sale is in the best interests of the Districts and the City. Section 2. Determinations of Public Interest. Pursuant to the authority described in Section 1, this Commission hereby determines that the issuance and sale of the Bonds in a pooled single offering for the following Special Improvement Districts in the respective principal amounts set forth below: District No. Principal Amount 660 $135,000 663 $239,600 -1- is in the best interest of each of the Districts and the City and will facilitate the sale of the Bonds because the size of the issue will attract more interest in the marketplace and this help to lower interest rates on the Bonds and because a single issue will reduce the costs of issuance. This Commission further determines to fix the minimum price for the Bonds at $363,362, plus interest accrued thereon to the date of delivery. Such minimum bid will enable bidders to bid more efficiently for the Bonds by permitting them to submit their bids based on actual market conditions without adjusting the interest rates thereon to provide compensation for their purchase of the Bonds. This procedure will facilitate the sale of the Bonds at the lowest interest rates, which is in the best interests of each of the Districts and the City. Section 3. Terms of the Bonds. This Commission hereby authorizes the issuance and sale of Pooled Special Improvement District Bonds, Series 1994 (Special Improvement District Nos. 660 and 663) of the City in the aggregate principal amount of $374,600 (the "Bonds") for the purpose of financing the Improvements. The Bonds shall be dated, as originally issued, as of November 1, 1994, and shall bear interest payable semiannually on January 1 and July 1 of each year, commencing January 1, 1996, at a rate or rates designated by the successful bidder at public sale and approved by this Commission. If issued as serial bonds, the Bonds shall mature on July 1 in each of the following years and amounts: Year Amoun t Year Amoun t 1996 $2,600 2006 $20,000 1997 12,000 2007 22,000 1998 13 ,000 2008 23,000 1999 14,000 2009 24,000 2000 14,000 2010 25,000 2001 15,000 2011 27,000 2002 16,000 2012 28,000 2003 17,000 2013 31,000 2004 19,000 2014 33,000 2005 19,000 If issued as amortization bonds, the Bonds will be issued as a single bond or divided into several bonds, as the Commission may determine at the time of the sale, and the principal of and interest on the Bonds shall be payable semiannually in equal payments on each January 1 and July 1, commencing January 1, 1996 and concluding July 1, 2014, unless the Bonds are earlier redeemed. Serial bonds shall be in the denomination of $1,000 each or any integral multiple thereof of single maturities; provided that the Bond representing principal installment no. 1 shall be in the denomination of $2,600. Amortization bonds are preferred. -2- -.-.----- The Bonds shall be issuable only as fully registered bonds and shall be executed by the manual or facsimile signatures of the City Manager and the Clerk of the Commission. The Bonds shall be secured by the Special Improvement District Revolving Fund of the City. Section 4. Public Sale. The Bonds shall be sold at a public competitive sale which is hereby called and shall be held at a special meeting of this Commission on October 24, 1994, at 3:00 p.m. The City will receive sealed bids for the Bonds in accordance with the notice of sale hereinafter prescribed. The Clerk of the Commission is authorized and directed to cause notice of the sale to be published, as required by Montana Code Annotated, Sections 7-12-4204, 7-7-4252 and 17-5-106, in the Bozeman Daily Chronicle, once each week for two successive weeks preceding the week which contains the date of sale. The notice of sale shall be published and mailed in substantially the form set forth as Exhibit A to this resolution and this Commission hereby adopts the terms and conditions set forth in such notice of sale as the terms and conditions of the sale of the Bonds. Section 5. Completion of Projects within Special Improvement District Nos. 660 and 663. In the event that the actual costs of the Improvements to be constructed within and for the benefit of the Districts, exceeds the amounts of the Bonds issued for each District, the City hereby agrees to pay the costs in excess thereof so the Improvements are completed and the assessments can be levied in the full amount of the Bonds. Passed by the City Commission of the City of Bozeman, Montana, this 10th day of October, 1994. - --. -- AtteSt.(J~/ b~ Clerk of the Commission -3- EXHIBIT A NOTICE OF BOND SALE $374,600 Pooled Special Improvement District Bonds, Series 1994 (Special Improvement District Nos. 660 AND 663) CITY OF BOZEMAN, MONTANA NOTICE IS HEREBY GIVEN that the City of Bozeman, Montana (the "City"), will sell to the highest and best bidder for cash, as evidenced by sealed bids, the above-described Bonds drawn against the funds of the following special improvement districts in the respective principal amounts set forth below: District No. Principal Amount 660 $135,000 663 $239,600 Sealed bids for the purchase of the Bonds will be received until 10:00 a.m. M.T. on Monday, the 24th day of October, 1994, at the office of the Clerk of the Commission in the City Hall, at 411 E. Main Street, Bozeman, Montana, at which time the bids will be opened and tabulated. The City Commission of the City will meet at 3:00 o'clock p.m. on the same day in the Commission Room in the City Hall to consider the bids and to award the sale of the Bonds. Purpose and Security The Bonds will be issued for the purpose of financing the cost of construction of certain local improvements (the "Improvements") within or for the benefit of Special Improvement District Nos. 660 and 663 (collectively, the "Districts"), in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended. The Bonds will be special, limited obligations of the City and do not constitute general obligations of the City. The Bonds are payable primarily from the collection of a special tax or assessment which is a lien against the assessable real property within the respective Districts benefitted by the Improvements to be undertaken therein or therefor. The special assessments are payable in equal, semiannual installments of principal and interest over a 19-year term, with unpaid installments of the special assessments bearing interest at a rate equal, from time to time, to the average rate of interest borne by the then outstanding Bonds. The Bonds are further secured by the Special Improvement District Revolving Fund of the City (the "Revolving Fund"). The A-I City will agree to make a loan from the Revolving Fund to the sinking fund established for the Districts to make good any deficiency then existing in the principal and interest subaccounts therein and to provide funds for the Revolving Fund by levying a tax or making a loan from the City's general fund to the extent authorized by law. Date and Type The Bonds will be dated, as originally issued, as of November I, 1994, and will be issued as negotiable investment securities in registered form as to both principal and interest. Maturities and Redemption If issued as serial bonds, the Bonds shall mature, subject to redemption, on July 1 in the following years and amounts: Year Amount Year Amount 1996 $2,600 2006 $20,000 1997 12,000 2007 22,000 1998 13,000 2008 23,000 1999 14,000 2009 24,000 2000 14,000 2010 25,000 2001 15,000 2011 27,000 2002 16,000 2012 28,000 2003 17,000 2013 31,000 2004 19,000 2014 33,000 2005 19,000 If issued as amortization bonds, the Bonds will be issued as a single bond or divided into several bonds, as the Commission may determine, and the principal of the Bonds shall be payable semi-annually on each January 1 and July I, commencing January 1, 1996 and continuing through July I, 2014, subject to prior redemption. Serial bonds shall be in the denomination of $1,000 each or any integral multiple thereof of single maturities; provided that the Bond representing principal installment no. 1 shall be in the denomination of $2,600. Amortization bonds shall be preferred. The Bonds are redeemable at the option of the City on any interest payment date if there are funds to the credit of the Sinking Fund for the redemption thereof. The Bonds will be redeemed in the order of the principal installments they represent. The Bonds shall not be callable from the proceeds of an issue of refunding bonds before July 1,2002. A-2 Interest Payment Dates, Rates Interest will be payable each January 1 and July 1, commencing January 1, 1996, to the registered owners of the Bonds as such appear in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. All Bonds of the same stated maturity must bear interest from date of original issue until paid at a single, uniform rate. Each rate must be expressed in an integral multiple of 1/8 or 5/100 of 1%. Supplemental or "B" interest is not permitted. Bond Registrar, Transfer Agent and Paying Agent The Director of Finance of the City will act as bond registrar, transfer agent and paying agent (the "Registrar"). The bond register will be kept, transfers of ownership will be effected and principal of and interest on the Bonds will be paid by the Registrar. The City will pay the charges of the Registrar for such services. The City reserves the right to appoint a suitable bank or trust company as a successor Registrar. Delivery Within 30 days after the sale, the City will deliver to the Registrar the printed Bonds ready for completion and authentication. The original purchaser of the Bonds must notify the Registrar, at least five business days before issuance of the Bonds, of the persons in whose names the Bonds will be initially registered and the authorized denominations of the Bonds to be originally issued. If notification is not received by that date, the Bonds will be registered in the name of the original purchaser and, if serial bonds, will be issued in denominations corresponding to the principal maturities of the Bonds. On the day of closing, the City will furnish to the purchaser the opinion of bond counsel hereinafter described, an arbitrage certification and a certificate verifying that no litigation in any manner questioning the validity of the Bonds is then pending or, to the knowledge of officers of the City, threatened. Payment for the Bonds must be received by the City in immediately available funds at its designated depositary on the day of closing. As a condition of delivery, the purchaser must certify to the City in writing the initial reoffering prices of the Bonds. A-3 . Qualified. Tax-Exempt Obligations The Bonds will be designated by the City as "qualified tax-exempt obligations" within the meaning of Section 26S(b)(3) of the Internal Revenue Code of 1986, as amended (the Code), and financial institutions described in Section 26S(b)(S) of the Code may treat the Bonds for purposes of Sections 265(b)(2) and 291(e)(1)(B) of the Code as if they were acquired on August 7, 1986. Legal Opinion An opinion as to the validity of the Bonds and the exclusion from gross income for federal income tax purposes and Montana individual income tax purposes of the interest thereon will be furnished by Dorsey & Whitney, of Missoula, Montana, and Minneapolis, Minnesota, as Bond Counsel. The legal opinion will be printed on the Bonds. The legal opinion will state that the Bonds are valid and binding special obligations of the City enforceable in accordance with their terms, except to the extent to which enforceability thereof may be limited by the exercise of judicial discretion or by state or federal laws relating to bankruptcy, reorganization, moratorium or creditors' rights; however, Dorsey & Whitney will not express an opinion as to the enforceability of the agreement of the City to make loans or advances from the Revolving Fund to the District Fund as may be required to pay principal and interest on the Bonds. Type of Bid and A ward Sealed bids for not less than $374,600 and accrued interest on the principal sum of $374,600 must be mailed or d~livered to the undersigned and must be received at the office of the Clerk of the Commission prior to the time stated above. Bidders must bid for all or none of the Bonds. Each bid must be unconditional and, except for a bid by or on behalf of the Board of Investments of the State of Montana, must be accompanied by cash or a certified check, a cashier's check, bank money order or bank draft drawn and issued by a national banking association located in Montana or by any banking corporation incorporated under the laws of Montana in the amount of $7,492, payable to the order of the City of Bozeman. The bid security of the successful bidder will be deposited by the City and retained until the delivery of the Bonds, at which time it will be applied against the purchase price of the Bonds. No interest will be allowed on the bid security. The bid security will be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid authorizing the lowest net interest cost (total interest on all Bonds from November 1, 1994 to their maturities, less any cash premium or plus any discount), will be deemed the most favorable. In the event that two or more bids state the lowest net interest cost, the sale of the Bonds will be awarded by lot. No A-4 ----------- oral bid will be considered. The City reserves the rights to reject any and all bids, to waive informalities in any bid and to adjourn the sale. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be assigned and printed at the expense of the purchaser, if the original purchaser waives any delay in delivery occasioned thereby. Information for bidders and bidding forms and instructions for submitting bids by facsimile may be obtained from the undersigned. Dated: Oct .10 , 1994. BY ORDER OF THE CITY COMMISSION Robin Sullivan Clerk of the Commission City of Bozeman, Montana A-5 ----..-.. .---...-