HomeMy WebLinkAboutResolutions 5581 - Approving, Pursuing, and Negotiating a Lease-Purchase Financing and Associated Documentation; and Making a Related Decla
RESOLUTION NO. 5581
RESOLUTION APPROVING PURSUING AND NEGOTIATING A LEASE-PURCHASE FINANCING AND ASSOCIATED DOCUMENTATION; AND MAKING A RELATED DECLARATION OF INTENT TO REIMBURSE
BE IT RESOLVED, by the City Commission (the “Commission”) of the City of
Bozeman, Montana (the “City”) as follows:
Section 1
Recitals. It is hereby found, determined and declared as follows:
1.01. Authorization. The City is authorized pursuant to Sections 7-1-4124 and 7-8-4101,
Montana Code Annotated, to buy, sell, mortgage, rent, lease, hold, manage and dispose of any
interest in real or personal property.
1.02. Proposed Financing. The City intends to finance and/or reimburse itself for certain
costs of furnishing and equipping Fire Station 2, the Bozeman Swim Center, Bogert Pool and the
Lindley Center, and purchasing vehicles and/or other equipment for the City’s solid waste
operations (collectively, the “Project”). The Commission has determined that it is in the best
interest of the City to enter into a non-appropriation lease-purchase financing to pay costs of the
Project specifically relating to the acquisition and installation of certain items of personal property
and equipment.
Section 2
Solicitation of Lease-Purchase Financing Proposals. To finance costs of the Project or
reimburse itself for expenditures related to the Project, the Commission desires to work with Baker
Tilly Municipal Advisors, LLC, as municipal advisor (“Baker Tilly”), to solicit proposals from
banks or other lenders with respect to a non-appropriation lease-purchase agreement and
associated documentation.
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Section 3
Negotiation of Terms and Conditions. The City Manager and other officers of the City, in
consultation with Baker Tilly and Dorsey & Whitney LLP, as bond counsel, are authorized and
directed to prepare solicitation materials and to negotiate with one or more banks or other lenders
to finalize terms and conditions of a non-appropriation lease-purchase agreement and associated
documents. Upon satisfactory negotiation of the material terms and conditions of such financing
documents, the City Manager and other officers of the City, or any one of them, are authorized to
present to this Commission such resolutions and other documentation as are necessary or
appropriate to effectuate the non-appropriation lease-purchase transaction for consideration by
and, if appropriate, approval of, this Commission. There shall be no binding commitment of the
City in connection with the lease-purchase financing without a subsequent resolution or resolutions
of this Commission.
Section 4
Subsequent Undertakings. A subsequent resolution or resolutions will, among other things,
specify the officers of the City authorized to undertake actions pursuant to and execute and deliver
any lease-purchase agreement and associated documentation relating to the financing of or
reimbursing the costs of the Project.
Section 5
Reimbursement Expenditures.
(a) The United States Department of Treasury has promulgated final regulations governing
the use of proceeds of tax-exempt bonds or other obligations, all or a portion of which are to be
used to reimburse the City for project expenditures paid by the City prior to the date of issuance
of such bonds or other obligations. Those regulations (Treasury Regulations, Section 1.150-2)
(the “Regulations”) require that the City adopt a statement of official intent to reimburse an original
expenditure not later than 60 days after payment of the original expenditure. The Regulations also
generally require that the bonds or other obligations be issued and the reimbursement allocation
made from the proceeds of the bonds or other obligations within 18 months (or three years, if the
reimbursement bond issue qualifies for the “small issuer” exception from the arbitrage rebate
requirement) after the later of (i) the date the expenditure is paid or (ii) the date the project is placed
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in service or abandoned, but (unless the issue qualifies for the “small issuer” exception from the
arbitrage rebate requirement) 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 or other obligations.
(b) Other than (i) expenditures to be paid or reimbursed from sources other than the bonds
or other obligations, (ii) expenditures permitted to be reimbursed under the transitional provision
contained in Section 1.150-2(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 a project within the scope of this resolution have been paid by the City before the date 60 days
before the date of adoption of this resolution.
(c) The City reasonably expects to reimburse the expenditures made for costs of the Project
through the issuance of bonds or a non-appropriation lease-purchase financing in an estimated
maximum aggregate principal amount of up to $5,000,000 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 non-appropriation lease-purchase financing or other expenditures
eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations.
(d) As of the date hereof, there are no City 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 or a non-appropriation lease-purchase financing.
The statement of intent contained in this resolution, therefore, is determined to be consistent with
the City’s budgetary and financial circumstances as they exist or are reasonably foreseeable on the
date hereof.
(e) The City Finance Director shall be responsible for making the “reimbursement
allocations” described in the Regulations, being generally the transfer of the appropriate amount
of proceeds of the bonds or non-appropriation lease-purchase financing to reimburse the source of
temporary financing used by the City to make prior payment of the costs of the Project. Each
allocation shall be evidenced by an entry on the official books and records of the City maintained
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for the financing or the Project and shall specifically identify the actual original expenditure being
reimbursed.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, this ___ day of ______________, 2024.
____________________________________ TERRY CUNNINGHAM Mayor
ATTEST: ___________________________________
MICHAEL MAAS
City Clerk APPROVED AS TO FORM:
___________________________________ GREG SULLIVAN City Attorney
(SEAL)
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February13th
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and appointed City Clerk of the City of
Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of Resolution No. _____ entitled: “RESOLUTION APPROVING PURSUING AND NEGOTIATING A LEASE-PURCHASE FINANCING AND ASSOCIATED DOCUMENTATION; AND MAKING A RELATED DECLARATION OF INTENT TO
REIMBURSE” (the “Resolution”), on file in the original records of the City in my legal
custody; that the Resolution was duly adopted by the City Commission at a meeting on February 13, 2024, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the
following Commission Members voted in favor thereof: ________________________________
______________________________ ; those Commissioners who voted
against the same: _____________________________ .
WITNESS my hand and seal officially this __ day of February, 2024.
(SEAL) MICHAEL MAAS City Clerk
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Madgic, Christopher Coburn, Douglas Fischer
5581
Terry Cunnngham, Joey Morrison, Jennifer
13th