HomeMy WebLinkAboutResolutions Resolution Number Unknown - Issuance of Bond Sale to Finance Swim Center, Lindley Center and Bogert Pool ImprovementsResolution No. 5590, Authorizing the Issuance and Public Sale of General Obligation and Limited Tax General Obligation Bonds
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RESOLUTION NO. 5590
RESOLUTION RELATING TO UP TO $2,280,000 IN PRINCIPAL
AMOUNT OF GENERAL OBLIGATION BONDS AND UP TO $3,930,000
IN PRINCIPAL AMOUNT OF LIMITED TAX GENERAL OBLIGATION
BONDS; 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.
Pursuant to Section 7-7-4221, Montana Code Annotated (“MCA”), the City is authorized,
upon approval of the electorate of the City, to issue general obligation bonds secured by the full
faith and credit and taxing power of the City for any purpose authorized by law, provided that such
indebtedness will not cause the total indebtedness of the City to exceed 2.5% of the total assessed
value of the taxable property of the City, determined as provided in Section 15-8-111, MCA,
ascertained by the last assessment for state and county taxes. In addition, pursuant to Section 7-7-
4104, MCA, the City is authorized to issue general obligations not secured by a pledge of the
City’s taxing power without submitting the question of incurring the indebtedness to the electors
upon the satisfaction of certain conditions, including that (1) the principal amount of the obligation
may not exceed 10% of the general fund budget of the municipality in each of the two immediately
preceding fiscal years; (2) at the time the obligation is incurred, the debt service in the current or
any future fiscal year on the obligation and any other outstanding obligation issued pursuant to
Section 7-7-4104, MCA, does not exceed 2% of the revenues deposited in the general fund of the
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Resolution No. 5590, Authorizing the Issuance and Public Sale of General Obligation and Limited Tax General Obligation Bonds
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municipality in each of the two immediately preceding fiscal years; and (3) the term of the
obligation does not exceed 20 years.
The electors of the City at an election duly called, noticed and held on November 2, 2021,
authorized this Commission to sell and issue general obligation bonds of the City in the aggregate
principal amount not to exceed $2,280,000 for the purpose of paying the costs of designing,
constructing, equipping and furnishing improvements to: the Bozeman Swim Center to include
replacing perimeter drain tiles (gutter system), deck tiles, and ceiling tiles, repairing the plaster
shell, and replacing the HVAC system; the Bogert Pool to include replacing the concrete coping
around the pool and the concrete gutter system, re-plastering the shell, repairing the concrete deck,
and replacing the perimeter wall/fence; and the Lindley Center to include upgrading restrooms to
meet current Americans with Disabilities Act requirements, replacing windows and log siding,
upgrading the kitchen, insulating the east roof, installing floor and roof supports, improving the
parking lot and related site improvements (the “Initial Improvements”); and costs associated with
the sale and issuance of the bonds.
In its engineering in advance of making the Initial Improvements, the City has determined
that the Bozeman Swim Center, Bogert Pool and Lindley Center each require improvements and
renovations in addition to the Initial Improvements (collectively, the “Additional Improvements”).
The City has determined at this time to sell and issue general obligation bonds of the City
(the “Series 2024A Bonds”) to finance or reimburse the City for costs of the Initial Improvements
and to pay costs of issuing the Series 2024A Bonds, and to sell and issue limited tax general
obligation bonds of the City (the “Series 2024B Bonds”) to finance or reimburse the City for costs
of the Additional Improvements and to pay costs of issuing the Series 2024B Bonds. The Series
2024A Bonds and Series 2024B Bonds are referred to collectively herein as the “Series 2024
Bonds.”
The total assessed value of the taxable property of the City, ascertained by the last
assessment for state and county taxes, was equal to $17,730,663,050 (2.5% equals
$443,266,576.25). The issuance of the Series 2024A Bonds in the principal amount of $2,280,000
will not cause the total indebtedness of the City to exceed the limitation set forth in Section 7-7-
4201, MCA.
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The City’s general fund budgets for the fiscal years ended June 30, 2022 and 2023 were
$39,306,358 (10% equals $3,930,636) and $46,726,481 (10% equals $4,672,648), respectively.
Revenues deposited in the general fund of the City for the fiscal years ended June 30, 2022 and
2023 were $32,954,190 (2% equals $659,084) and $43,234,377 (2% equals $864,688),
respectively.
Section 2
Public Sale.
The Series 2024 Bonds shall be offered and sold at a public competitive sale pursuant to
certain Terms and Conditions of Sale (the “Terms and Conditions”) to be determined and finalized
with respect to each series of Series 2024 Bonds by the City Manager and City Finance Director,
in consultation with Baker Tilly Municipal Advisors LLC, as municipal advisor to the City (“Baker
Tilly”). For each series of Series 2024 Bonds, the City Manager and City Finance Director shall
determine the date and time that bids will be opened and tabulated. The City Manager and City
Finance Director will prepare or cause to be prepared a notice of the sale of each series of Series
2024 Bonds, expected to be substantially in the forms attached as Exhibit A and Exhibit B, and
the City Clerk is authorized and directed to cause notice of the sale of each series of Series 2024
Bonds to be published in the Bozeman Chronicle or otherwise in accordance with state law.
Following tabulation of bids, the City Manager and City Finance Director will award the sale of
each series of Series 2024 Bonds to the responsive bidder with the lowest true interest cost; subject
to approval and confirmation by the Commission. With respect to either series of Series 2024
Bonds, the City Manager and City Finance Director shall have the right to reject any and all bids
in their sole discretion and to waive any informality and irregularity in any and all bids. In the
event that all bids are rejected, the City Manager and City Finance Director are authorized to
initiate a new public, competitive sale of either series of Series 2024 Bonds and to prepare such
additional Terms and Conditions, offering materials and notices, in accordance with this
resolution. The forms of the Series 2024 Bonds and the final terms and conditions of each series
thereof will be set forth in a subsequent resolution or resolutions to be adopted by this Commission
following the award of the sale of such Series 2024 Bonds.
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Section 3
Authorization to Award Sale; Parameters.
Following tabulation of the bids as described in Section 2, the City Manager and City
Finance Director are hereby authorized to award the sale of each series of the Series 2024 Bonds,
in their discretion, subject to ratification and confirmation by the Commission, on the terms and at
a purchase price subject, with respect to each series of Series 2024 Bonds, to the following
limitations and conditions:
(a) the aggregate principal amount of the Series 2024A Bonds shall not exceed
$2,280,000 (exclusive of original issue premium or discount);
(b) the aggregate principal amount of the Series 2024B Bonds shall not exceed
$3,930,000, which is 10% of the general fund budget of the municipality in the lower of the two
preceding fiscal years;
(c) the debt service payable in the current or any future fiscal year on the Series 2024B
Bonds and all other outstanding limited tax general obligations of the City shall not exceed
$659,084, which is 2% of the revenues deposited in the general fund of the municipality in the
lower of the two preceding fiscal years;
(d) the purchase price of each series of Series 2024 Bonds shall not be less than 97%
of the principal amount thereof;
(e) the true interest cost of the Series 2024A Bonds shall not exceed 5.00% and the true
interest cost of the Series 2024B Bonds shall not exceed 5.00%;
(f) the term of the Series 2024A Bonds shall not exceed twenty (20) years; and
(g) the Series 2024B Bonds shall finally mature not later than twenty (20) years after
the date of issuance.
The Series 2024 Bonds will be dated, as originally issued, as of their date of delivery. The Series
2024 Bonds with stated maturities on or after July 1, 2034 will be subject to redemption on July 1,
2033, and any date thereafter, at the option of the City, in whole or in part, at a redemption price
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equal to the principal amount thereof to be redeemed plus interest accrued to the redemption date,
without premium.
Section 4
Expected Denominations
The Series 2024A Bonds are expected to mature, subject to redemption as hereinafter
provided, on July 1 in each of the following years and amounts (unless combined into one or more
term bonds), subject to adjustment as described below:
Year Principal Amount(1) Year Principal Amount(1)
2025 $ 75,000 2035 $110,000
2026 85,000 2036 115,000 2027 90,000 2037 120,000 2028 90,000 2038 125,000 2029 95,000 2039 130,000
2030 95,000 2040 135,000
2031 100,000 2041 140,000 2032 105,000 2042 145,000 2033 105,000 2043 150,000 2034 110,000 2044 160,000
(1) Preliminary; subject to change.
The Series 2024B Bonds are expected to mature, subject to redemption as hereinafter
provided, on July 1 in each of the following years and amounts (unless combined into one or more
term bonds), subject to adjustment as described below:
Year Principal Amount(1) Year Principal Amount(1) 2025 $115,000 2035 $180,000
2026 140,000 2036 185,000 2027 140,000 2037 190,000 2028 145,000 2038 200,000 2029 150,000 2039 210,000 2030 155,000 2040 340,000
2031 160,000 2041 355,000 2032 165,000 2042 370,000 2033 170,000 2043 385,000 2034 175,000
(1) Preliminary; subject to change.
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The City reserves the right, after bids are opened and prior to award, to increase or decrease
the amount of any maturity or maturities in multiples of $5,000 in order to produce sufficient net
proceeds and to meet the City’s structuring goals.
Section 5
Preliminary Official Statement.
The City Manager, City Finance Director and other officers of the City, in consultation
with Baker Tilly, are hereby authorized and directed to prepare, on behalf of the City, one or more
Preliminary Official Statements to be distributed to potential bidders. The Preliminary Official
Statement(s) shall contain the Terms and Conditions and such other information as shall be
advisable and necessary to describe accurately the City, the terms and conditions of each series of
Series 2024 Bonds and the security therefor. The City Manager and City Finance Director are
authorized on behalf of the City to deem each Preliminary Official Statement near “final” as of its
date, in accordance with Rule 15c2-12(b)(1) under the Securities Exchange Act of 1934.
Section 6
Continuing Disclosure.
In order to permit bidders for each series of Series 2024 Bonds and other participating
underwriters in the primary offering of such series of Series 2024 Bonds to comply with paragraph
(b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934 (the “Rule”), the City will covenant and agree for the benefit of
the registered holders and beneficial owners from time to time of such outstanding series of Series
2024 Bonds, to provide annual reports of specified information and notice of the occurrence of
certain events. The City is the only “obligated person” in respect of the Series 2024 Bonds within
the meaning of the Rule for the purposes of disclosing information on an ongoing basis. A
description of the undertaking will be set forth in the Preliminary Official Statement(s). Failure
of the City to enter into an undertaking substantially similar to that described in the applicable
Preliminary Official Statement would relieve the successful bidder of its obligation to purchase
the applicable series of Series 2024 Bonds.
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Section 7
Effective Date. This Resolution shall become effective upon passage.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 19th day of March, 2024.
___________________________________ TERRY CUNNINGHAM
Mayor
ATTEST:
___________________________________ MICHAEL MAAS City Clerk APPROVED AS TO FORM:
___________________________________ GREG SULLIVAN City Attorney
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Resolution No. 5590, Authorizing the Issuance and Public Sale of General Obligation and Limited Tax General Obligation Bonds
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting City Clerk of the City of Bozeman,
Montana (the “City”), hereby certify that attached hereto is a true copy of Resolution No. 5590
entitled: “RESOLUTION RELATING TO UP TO $2,280,000 IN PRINCIPAL AMOUNT
OF GENERAL OBLIGATION BONDS AND UP TO $3,930,000 IN PRINCIPAL
AMOUNT OF LIMITED TAX GENERAL OBLIGATION BONDS; AUTHORIZING
THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF” (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 March 19, 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 Commissioners voted in favor thereof:
; voted against the same:
; abstained from voting thereon:
; or were absent: .
WITNESS my hand officially this 19th day of March, 2024.
Michael Maas City Clerk
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Madgic, Christopher Coburn, Douglas Fischer
Terence Cunningham, Joey Morrison, Jennifer
Resolution No. 5590, Authorizing the Issuance and Public Sale of General Obligation and Limited Tax General Obligation Bonds
EXHIBIT A
Form of Notice of Sale of Series 2024A Bonds
NOTICE OF SALE OF
$2,280,000 GENERAL OBLIGATION BONDS, SERIES 2024A CITY OF BOZEMAN, MONTANA
Notice is hereby given that the City Commission (the “Commission”) of the City of
Bozeman, Montana (the “City”), will receive bids for the purchase of General Obligation Bonds,
Series 2024A, in the aggregate principal amount of $2,280,000 (the “Series 2024A Bonds”). The proceeds of the Series 2024A Bonds will be used by the City to (i) finance or reimburse the City for a portion of the costs of improvements to the Bozeman Swim Center, Bogert Pool and Lindley Center; and (ii) pay the costs associated with the sale of the Series 2024A Bonds.
The Series 2024A Bonds, including interest thereon, are general obligations of the City
payable from the proceeds of an ad valorem tax that the City will covenant to levy annually on all taxable property within the City, without limitation as to rate or amount.
The Series 2024A Bonds shall be dated, as originally issued, as of their date of delivery, expected to be May 16, 2024, and shall bear interest payable semiannually on January 1 and July
1 of each year, commencing January 1, 2025, to the registered owners of the Series 2024A
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, at a rate or rates designated by the successful bidder at public sale and approved by the Commission. Interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
Bids shall be for not less than $2,280,000.00, plus accrued interest, if any, on the total
principal amount of the Series 2024A Bonds. The Series 2024A Bonds shall mature, subject to redemption as hereinafter provided, on July 1 in each of the following years and amounts (unless combined into one or more term bonds), subject to adjustment as described below:
Year
Principal
Amount(1) Year
Principal
Amount(1)
2025 $ 75,000 2035 $110,000
2026 85,000 2036 115,000 2027 90,000 2037 120,000 2028 90,000 2038 125,000
2029 95,000 2039 130,000
2030 95,000 2040 135,000 2031 100,000 2041 140,000 2032 105,000 2042 145,000 2033 105,000 2043 150,000
2034 110,000 2044 160,000
(1) Preliminary; subject to change.
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Resolution No. 5590, Authorizing the Issuance and Public Sale of General Obligation and Limited Tax General Obligation Bonds
The City reserves the right, after bids are opened and prior to award, to increase or decrease the amount of any maturity or maturities in multiples of $5,000 in order to
produce sufficient net proceeds and to meet the City’s structuring goals.
The Series 2024A Bonds with stated maturities on or after July 1, 2034 will be subject to redemption on July 1, 2033, and any date thereafter, at the option of the City, in whole or in part, at a redemption price equal to the principal amount thereof to be redeemed plus interest accrued to the redemption date, without premium. If less than all of the Series 2024A Bonds are to be
redeemed, the Series 2024A Bonds to be redeemed shall be from such stated maturities and in
such principal amounts as the City may designate in writing to the Registrar (or, if no designation is made, in inverse order of maturities and within a maturity in $5,000 principal amounts selected by the Registrar by lot or other manner as directed by the City).
The Series 2024A Bonds shall be in the denomination of $5,000 each or any integral
multiple thereof of single maturities. The Series 2024A Bonds will be issued as fully registered
bonds only. The Series 2024A Bonds will be issued in book-entry only form.
The City reserves the right to reject any and all bids and to sell the Series 2024 Bonds at a private or other sale.
Bids will be received by Baker Tilly Municipal Advisors, LLC, the City’s municipal
advisor or by electronic transmission through PARITY® pursuant to the instructions set forth
herein until 10:00 a.m., M.T., on Tuesday, April 16, 2024, at which time bids will be opened and tabulated. The tabulation of bids will be presented to a designated Pricing Committee subsequent to the opening of bids, at which time the Pricing Committee will consider the bids received and, if a responsive and acceptable bid is received, award sale of the Series 2024A
Bonds to the bidder with the lowest true interest cost, subject to approval and confirmation by
the Commission. To have its bid considered for award, the successful bidder is required to submit a good faith deposit via wire transfer to the City in the amount of $45,600.00 no later than 1:00 p.m. M.T. on Tuesday, April 16, 2024.
Prospective bidders should consult the Terms and Conditions of Sale and the Preliminary
Official Statement for a detailed description of the Series 2024A Bonds, the security therefor,
and the form of legal opinion proposed to be rendered by Dorsey & Whitney LLP, of Missoula, Montana, as bond counsel. For an electronic copy of the Preliminary Official Statement or for any additional information prior to sale, prospective purchasers are referred to the Municipal Advisor to the City, Baker Tilly Municipal Advisors, LLC, by telephone (651) 223 3000, or by
email: bids@bakertilly.com.
Dated: May 19, 2024.
BY ORDER OF THE CITY COMMISSION
Publish: April 7, 2024
April 14, 2024
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Resolution No. 5590, Authorizing the Issuance and Public Sale of General Obligation and Limited Tax General Obligation Bonds
EXHIBIT B
Form of Notice of Sale of Series 2024B Bonds
NOTICE OF SALE OF
$3,930,000 LIMITED TAX GENERAL OBLIGATION BONDS, SERIES 2024B CITY OF BOZEMAN, MONTANA
Notice is hereby given that the City Commission (the “Commission”) of the City of
Bozeman, Montana (the “City”), will receive bids for the purchase of Limited Tax General
Obligation Bonds, Series 2024B, in the aggregate principal amount of $3,930,000 (the “Series 2024B Bonds”), subject to adjustment as described below. The proceeds of the Series 2024B Bonds will be used by the City to (i) finance or reimburse the City for a portion of the costs of improvements to the Bozeman Swim Center, Bogert Pool and Lindley Center; and (ii) pay the
costs associated with the sale of the Series 2024B Bonds.
The Series 2024B Bonds, including interest thereon, are general obligations of the City payable from legally available funds of the City. The general credit of the City is irrevocably pledged for the prompt payment of the principal and interest on the Series 2024B Bonds as they become due, however, the Series 2024B Bonds are not secured by a pledge of the
City’s taxing power and the City cannot be obligated to levy taxes for the payment of principal of and interest on the Series 2024B Bonds.
The Series 2024B Bonds shall be dated, as originally issued, as of their date of delivery, expected to be May 16, 2024, and shall bear interest payable semiannually on January 1 and July 1 of each year, commencing January 1, 2025, to the registered owners of the Series 2024B 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, at a rate or rates designated by the successful bidder at public sale and approved by the Commission. Interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
Bids shall be for not less than $3,930,000.00, plus accrued interest, if any, on the total
principal amount of the Series 2024B Bonds. The Series 2024B Bonds shall mature, subject to
redemption as hereinafter provided, on July 1 in each of the following years and amounts (unless combined into one or more term bonds), subject to adjustment as described below:
Year Principal Amount(1) Year Principal Amount(1)
2025 $115,000 2035 $180,000
2026 140,000 2036 185,000 2027 140,000 2037 190,000 2028 145,000 2038 200,000 2029 150,000 2039 210,000
2030 155,000 2040 340,000
2031 160,000 2041 355,000 2032 165,000 2042 370,000
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Resolution No. 5590, Authorizing the Issuance and Public Sale of General Obligation and Limited Tax General Obligation Bonds
2033 170,000 2043 385,000 2034 175,000
(1) Preliminary; subject to change.
The City reserves the right, after bids are opened and prior to award, to increase or decrease the amount of any maturity or maturities in multiples of $5,000 in order to produce sufficient net proceeds and to meet the City’s structuring goals.
The Series 2024B Bonds with stated maturities on or after July 1, 2034 will be subject to
redemption on July 1, 2033, and any date thereafter, at the option of the City, in whole or in part,
at a redemption price equal to the principal amount thereof to be redeemed plus interest accrued to the redemption date, without premium. If less than all of the Series 2024B Bonds are to be redeemed, the Series 2024B Bonds to be redeemed shall be from such stated maturities and in such principal amounts as the City may designate in writing to the Registrar (or, if no
designation is made, in inverse order of maturities and within a maturity in $5,000 principal
amounts selected by the Registrar by lot or other manner as directed by the City).
The Series 2024B Bonds shall be in the denomination of $5,000 each or any integral multiple thereof of single maturities. The Series 2024B Bonds will be issued as fully registered bonds only. The Series 2024B Bonds will be issued in book-entry only form.
Bids will be received by Baker Tilly Municipal Advisors, LLC, the City’s municipal
advisor or by electronic transmission through PARITY® pursuant to the instructions set forth herein until 10:30 a.m., M.T., on Tuesday, April 16, 2024, at which time bids will be opened and tabulated. The tabulation of bids will be presented to a designated Pricing Committee subsequent to the opening of bids, at which time the Pricing Committee will consider the bids
received and, if a responsive and acceptable bid is received, award sale of the Series 2024B
Bonds to the bidder with the lowest true interest cost, subject to approval and confirmation by the Commission. To have its bid considered for award, the successful bidder is required to submit a good faith deposit via wire transfer to the City in the amount of $78,600.00 no later than 1:00 p.m. M.T. on Tuesday, April 16, 2024.
Prospective bidders should consult the Terms and Conditions of Sale and the Preliminary
Official Statement for a detailed description of the Series 2024B Bonds, the security therefor, and the form of legal opinion proposed to be rendered by Dorsey & Whitney LLP, of Missoula, Montana, as bond counsel. For an electronic copy of the Preliminary Official Statement or for any additional information prior to sale, prospective purchasers are referred to the Municipal
Advisor to the City, Baker Tilly Municipal Advisors, LLC, by telephone (651) 223 3000, or by
email: bids@bakertilly.com.
Dated: May 19, 2024.
BY ORDER OF THE CITY COMMISSION
Publish: April 7, 2024 April 14, 2024
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