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HomeMy WebLinkAboutResolution 2971 Preliminary approval for outstanding bonds re Lyman Phase II and III <; ~._,. COMMISSION RESOLUTION NO. 2971 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, Montana (the "Issuer"), has issued and there is outstanding one or more bonds (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 semiannual payments on the loans made to local governments financed with the proceeds of the Series 1988A Bonds, the Series 1989A Bonds and the State's Coal Severance Tax Bonds, Department of Natural Resources and Conservation Water Development Program, 1985 Series A, 1985 Series Band 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 2.5%; 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 semiannual payments on the Outstanding Bond after the expiration of the subsidy period, if any, by at least 2.5%; and WHEREAS, to effect this proposal, this Governing Body will be required: (i) to adopt a resolution amending the provisions of the resolution authorizing the issuance of the .__n...__ ---..-----.-....--... 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, (the Issuer), as follows: Section 1. The Governing Body hereby declares the intention of the Issuer (i) to reduce the amount of the semiannual 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 total annual payment on the Bond is reduced by not less than 2.5% except during the subsidized interest rate period, if any, when such payment 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 costs 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, 1994, 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. - 2 - ~ - ...-- . PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 25th day of April 1994. ATTEST: ~J~ ROBIN L. SULLIVAN Clerk of the Commission APPROVED AS TO FORM: - 3 - .....-..-.-- --- . . REVISED 4-12-94 EXHIBIT A Outstanding Current Maximum Original Principal Non- Annual Proposed principal Amount subsidized Non-subsidized Annual Title of Bond Amount as of (6/1/94) Interest Rate Payment Amount Payment Amount ~ . City of Bozeman (Lyman II) $352,715.00 $318,858.72 6.87% $31,647.42 $30,856.23 I 1 j