HomeMy WebLinkAboutSewer System Revenue Bonds, $1,973,000 $1,973,000
Sewer System Revenue Bonds
(DNRC Water Pollution Control State Revolving Loan Program)
consisting of $390,700 Subordinate Lien Taxable Series 2010A Bond
$359,300 Series 2010B Bond and $1,223,000 Series 2010C Bond
City of Bozeman, Montana
CERTIFICATE OF CITY REGARDING COVERAGE
We, the undersigned, the duly qualified Mayor, the Director of Finance, and the Clerk of
the Commission of the City of Bozeman, Montana (the "City provide this Certificate on behalf
of the City in connection with the issuance by the City of its Sewer System Revenue Bond
(DNRC Water Pollution Control State Revolving Loan Program), Series 2010B, to be issued in
the maximum principal amount of $359,300 (the "Series 2010B Bond and its Sewer System
Revenue Bond (DNRC Water Pollution Control State Revolving Loan Program), Series 2010C,
to be issued in the maximum principal amount of $1,223,000 (the "Series 20100 Bond The
proceeds of the Series 2010B Bond and the Series 2010C Bond, together with the City's
$390,700 Subordinate Lien Sewer System Revenue Bond (DNRC Water Pollution Control State
Revolving Loan Program), Taxable Series 2010A (the "Series 2010A Bond which is being
issued simultaneously herewith, are expected to be sufficient to pay all costs of designing and
constructing a building used for administration of the municipal sewer system of the City (the
"Project to pay costs of issuance of the Series 2010A Bond, the Series 2010B Bond, and the
Series 2010C Bond (collectively, the "Series 2010 Bonds and to fund the Reserve Account
securing the Series 2010B Bond and the Series 2010C Bond. The Series 2010A Bond will be
issued as a Subordinate Obligation payable out of available Surplus Net Revenues in the
Replacement and Depreciation Account or the Surplus Account in the Sewer System Fund of the
City and the debt service of the Series 2010A Bond is disregarded for purposes of the
calculations made below.
1. The following are the budgeted expenses for the operation and maintenance of the
municipal sewer system of the City (the "System for fiscal year ending June 30, 2010. These
costs have been incorporated by the City into its budget and the total costs of operation and
maintenance are as set forth below:
Personnel Services $1,476,423.00
Operating 2,255,951.00
Total O &M: $3,732,374.00
It is the opinion of the City that this budget is reasonable for the operation and maintenance of
the overall System, as improved by the Project.
2. We have reviewed the rates and charges schedules for the City for its System in
effect as of the date hereof. Based upon such review and assuming a level of usage consistent
with the usage for the fiscal year ended June 30, 2009 and the budget attached hereto as Exhibit
EXHIBIT A
2010 BUDGET
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EXHIBIT B
COMBINED DEBT SERVICE SCHEDULE BONDS
SRF ARRA -B
i 1.75% SRF Loan (C) C
$359,300 3.75% $1,223,000 Total
2010 7,562 82,500 90,062
2011 22,090 87,875 109,965
2012 21,810 87,225 109,035
2013 21,530 87,519 109,049
2014 21,250 87,738 108,988
2015 20,970 87,881 108,851
2016 20,690 86,950 107,640
2017 21,410 86,981 108,391
2018 22,104 87,938 ***110,042
2019 21,789 87,781 109,570
2020 21,474 87,550 109,024
2021 21,159 87,244 108,403
2022 20,844 86,862 107,706
2023 20,528 87,387 107,915
2024 22,205 87,819 110,024
2025 21,855 87,138 108,993
2026 21,505 87,362 108,867
2027 21,155 87,494 108,649
2028 20,805 87,494 108,299
2029 20,455 87,400 107,855
2030 11,096 11,096
Total 424,286 1,744,138 2,168,424
**I1it hest Year's Debt Service
REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the Director of Finance as bond registrar (the "Registrar'), has duly noted the transfer on the
Bond and recorded the transfer on the Registrar's registration books. The Borrower shall be
entitled to deem and treat the person in whose name this Bond is registered as absolute owner
thereof for all purposes, notwithstanding any notice to the contrary. Payments on account of the
Bond shall be made only to the order of the registered holder thereof, and all such payments shall
be valid and effectual to satisfy and discharge the Borrower's liability upon the Bond to the
extent of the sum or sums so paid.
REGISTER
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thereon is registered on the books of the City of Bozeman, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Date of Name and Address Signature of
Registration of Registered Holder Director of Finance
4110 February 10, 2010 Department of Natural
Resources and Conservation 4
1625 Eleventh Avenue
Helena, MT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The Director of Finance of the City, acting as Bond Registrar, has transferred, on the
books of the City, on the date last noted below, ownership of the principal amount of and the
accrued interest on this Bond to the new registered holder noted next to such date, except for
amounts of principal and interest theretofore paid.
Name of New Signature of
Date of Transfer Registered Holder Bond Registrar
-6-
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing
body, has caused this Bond to he executed by the signatures of the Mayor, the Director of
Finance, and the Clerk of the Commission, and has caused the official seal of the Borrower to be
affixed hereto, and has caused this Bond to be dated as of the 10th day of February, 2010.
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REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (I) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the Director of Finance as bond registrar (the "Registrar has duly noted the transfer on the
Bond and recorded the transfer on the Registrar's registration books. The Borrower shall be
entitled to deem and treat the person in whose name this Bond is registered as absolute owner
thereof for all purposes, notwithstanding any notice to the contrary. Payments on account of the
Bond shall be made only to the order of the registered holder thereof, and all such payments shall
be valid and effectual to satisfy and discharge the Borrower's liability upon the Bond to the
extent of the sum or sums so paid.
REGISTER
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thereon is registered on the books of the City of Bozeman, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Date of Name and Address Signature of
Registration of Registered Holder Director of Finance
February 10, 2010 Department of Natural.
S Resources and Conservation d
1625 Eleventh Avenue
Helena, MT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The Director of Finance of the City, acting as Bond Registrar, has transferred, on the
books of the City, on the date last noted below, ownership of the principal amount of and the
accrued interest on this Bond to the new registered holder noted next to such date, except for
amounts of principal and interest theretofore paid.
Name of New Signature of
Date of Transfer Registered Holder Bond Registrar
-6-
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing
body, has caused this Bond to be executed by the signatures of the Mayor, the Director of
Finance, and the Clerk of the Commission, and has caused the official seal of the Borrower to be
affixed hereto, and has caused this Bond to be dated as of the 10th day of February, 2010.
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REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the Director of Finance as bond registrar (the "Registrar has duly noted the transfer on the
Bond and recorded the transfer on the Registrar's registration books. The Borrower shall be
entitled to deem and treat the person in whose name this Bond is registered as absolute owner
thereof for all purposes, notwithstanding any notice to the contrary. Payments on account of the
Bond shall be made only to the order of the registered holder thereof, and all such payments shall
be valid and effectual to satisfy and discharge the Borrower's liability upon the Bond to the
extent of the sum or sums so paid.
REGISTER
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thereon is registered on the books of the City of Bozeman, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Date of Name and Address Signature of
Registration of Registered Holder Director of Finance
February 10, 2010 Department of Natural
Resources and Conservation 1
1625 Eleventh Avenue
Helena. MT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
as Registrar, Director of Finance of the City, acting as Bond Rct, s trar has transferred, on the
books of the City, on the date last noted below, ownership of the principal amount of and the
accrued interest on this Bond to the new registered holder noted next to such date, except for
amounts of principal and interest theretofore paid.
Name of New Signature of
Date of Transfer Registered Holder Bond Registrar
-6-
the Revenue Bond Account in any subsequent fiscal year; that additional Bonds and refunding
Bonds may be issued and made payable from the Revenue Bond Account on a parity with the
Series 2010B Bond, the Series 2010C Bond, and additional parity Bonds upon certain conditions
set forth in the Resolution, but no obligation will be otherwise incurred and made payable from
the Net Revenues of the System, unless the lien thereof shall be expressly made subordinate to
the lien of the Series 2010B Bond, the Series 2010C Bond, and additional parity Bonds on such
Net Revenues and such obligations are payable only from Surplus Net Revenues (as is the case
with the Series 2010A Bond); that all provisions for the security of the holder of this Series
2010B Bond set forth in the Resolution will be punctually and faithfully performed as therein
stipulated; that all acts, conditions and things required by the Constitution and laws of the State
of Montana and the ordinances and resolutions of the Borrower to be done, to exist, to happen
and to be performed in order to make this Series 2010B Bond a valid and binding special
obligation of the Borrower according to its terms have been done, do exist, have happened and
have been performed as so required; and that this Series 2010B Bond and the premium, if any,
and interest hereon are payable solely from the Net Revenues of the System pledged and
appropriated to the Revenue Bond Account and do not constitute a debt of the Bon within
the meaning of any constitutional or statutory or charter limitation or provision and the issuance
of the Series 2010B Bond does not cause either the general or the special indebtedness of the
Borrower to exceed any constitutional or statutory or charter limitation.
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing
body, has caused this Bond to be executed by the signatures of the Mayor, the Director of
Finance, and the Clerk of the Commission, and has caused the official seal of the Borrower to be
affixed hereto, and has caused this Bond to be dated as of the 10th day of February, 2010.
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REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the Director of Finance as bond registrar (the "Registrar has duly noted the transfer on the
Bond and recorded the transfer on the Registrar's registration books. The Borrower shall he
entitled to deem and treat the person in whose name this Bond is registered as absolute owner
thereof for all purposes, notwithstanding any notice to the contrary. Payments on account of the
Bond shall be made only to the order of the registered holder thereof, and all such payments shall
be valid and effectual to satisfy and discharge the Borrower's liability upon the Bond to the
extent of the sum or sums so paid.
REGISTER
The ownership of the unpaid Principal Balance of this Bond and the interest accruing
thereon is registered on the books of the City of Bozeman, Montana in the name of the registered
holder appearing on the first page hereof or as last noted below:
Date of Name and Address Signature of
Registration of Registered Holder Director of Finance
February 10, 2010 Department of Natural Aar
Resources and Conservation
1625 Eleventh Avenue
Helena, MT 59620
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The Director of Finance of the City, acting as Bond Registrar, has transferred, on the
books of the City, on the date last noted below, ownership of the principal amount of and the
accrued interest on this Bond to the new registered holder noted next to such date, except for
amounts of principal and interest theretofore paid.
Name of New Signature of
Date of Transfer Registered Holder Bond Registrar
-5-
the Series 2010C Bond does not cause either the general or the special indebtedness of the
Borrower to exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing
body, has caused this Bond to be executed by the signatures of the Mayor, thc Director of
Finance, and the Clerk of the Commission, and has caused thc official seal of the Borrower to be
affixed hereto, and has caused this Bond to be dated as of the 10` day of February, 2010.
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1110 STATE OF MONTANA CERTIFICATE AS TO ORGANIZATION
ss OF CITY OF BOZEMAN, MONTANA
COUNTY OF GALLATIN
The undersigned, being the duly qualified and acting City Clerk of the City of Bozeman,
in the County and State aforesaid, and as such having custody of and access to the books and
records of the City relating to the matters hereinafter stated, hereby /certifies that, as appears by
such books and records and as known to me, the following statements are true and correct.
1. Said City has been a duly organized city for more than 124 years and is now
governed by the general laws of the State relating to cities of the First class, operating under the
Commission- Manager form of government. Its population, according to the 2000 United States
census, was 27,509, and its estimated present population is 35,061.
2. The territory included within its boundaries lies wholly in the County of Gallatin,
and comprises approximately 10,375 acres. Said City is divided into 0 wards. The City is
governed by a Mayor, City Manager and four Commissioners. The following named persons
hold the offices set opposite their names and for the terms stated below:
Name Office Term Began Term Ends
1 eff Krauss Mayor 01 -01 -2006 12-31-2011
Chris Kukulski City Manager 08 -18 -2004
Anna Rosenberry Finance Director 02 -17 -2005
Stacy Ulmen City Clerk
Laurae Clark Treasurer 05 -01 -1996
Greg Sullivan City Attorney 1 1 -01 -1991
Carson Taylor Commissioner 04 -01 -2010
Sean Becker Commissioner, Deputy Mayor 01 -01 -2006 12-31-2011
Chris Mehl Commissioner 01 -01 -2010 12 -31 -2013
Cyndy Andrus Commissioner 01 -25 -2010 12 -31 -2011
$1,973,000
Sewer System Revenue Bonds
(DNRC Water Pollution Control State Revolving Loan Program),
Consisting of $390,700 Subordinate Lien Taxable Series 2010A Bond,
$359,300 Series 2010B Bond, and 51,223,000 Series 2010C Bond
City of Bozeman, Montana
CERTIFICATE AND RECEIPT
OF DIRECTOR OF FINANCE
I, the undersigned, being the duly qualified and acting Director of Finance of the City of
Bozeman, Montana (the "City hereby certify and acknowledge that on the date of this instrument, I
received from the Department of Natural Resources and Conservation of the State of Montana (the
"DNRC as purchaser thereof (the "Purchaser the amount of $1,000, as the first advance of the
principal amount of the Subordinate Lien Sewer System Revenue Bond (DNRC Water Pollution Control
State Revolving Loan Program), Taxable Series 2010A, of the City (the "Series 2010A Bond dated, as
originally issued, as of the date hereof, and issued in the maximum principal amount of $390,700, and
$62,333, as the first advance of principal of the Sewer System Revenue Bond (DNRC Water Pollution
Control State Revolving Loan Program), Series 2010B, of the City (the "Series 201013 Bond dated, as
originally issued, as of the date hereof, and issued in the maximum principal amount of $359,300.
The City estimates that it will request an advance of a portion of the principal amount of the
City's $1,223,000 Sewer System Revenue Bond (DNRC Water Pollution Control State Revolving Loan
4111 Program), Series 2010C (the "Series 2010C Bond by no later than September 30, 2010.
Following the total initial advance of $63,333 at closing, the remaining principal amount of the
Series 2010A Bond will be advanced in full, then the remaining principal amount of the Series 2010E
Bond will be advanced in full, and then the City will request advances of the Series 2010C Bond. The
advance received on the date hereof shall be used for construction costs and to fund a deposit to the
Reserve Account. I understand and agree that if the City does not request the advance of the full principal
amount of the Series 2010A Bond and the Series 2010B Bond, the Purchaser has reserved the right to
issue a replacement Series 2010A Bond and a replacement Series 2010B Bond, as further provided in the
resolution authorizing the Series 2010A Bond and the Series 2010B Bond.
As Bond Registrar designated under Resolution No. 4234 adopted by the City Commission, on
January 19, 2010, authorizing the issuance of the Series 2010A Bond, the Series 2010B Bond, and the
Series 2010C Bond (collectively, the "Bonds I further certify that on the elate hereof the Bond Registrar
has authenticated and delivered the Bonds to the Purchaser. 1 further certify that the Bonds so
authenticated and delivered were registered, on the face thereof and also in the bond register maintained
by the Bond Registrar, in the name of the Purchaser.
WITNESS my hand officially as such Director of Finance o h clay of February, 2010.
irector of l nance
form 8038-G Information Return for Tax Exempt Governmental Obligations
Under Internal Revenue Code section 149(e) OMB No 1545-0720
(Rev. November 2000) See separate Instructions.
Department or the Treasury Caution: if the issue price is under $700,000, use Form 8038 -GC.
Internal Revenue Service P
Part I Reporting Authority If Amended Return, check here
1 Issuer's name 2 Issuer's employer identification number
CITY OF BOZEMAN, MONTANA 81 i 6001238
3 Number and street (or P.O. box if mail is not delivered to street address) Room /suite 4 Report number
P.O. Box 1230 3 2010 1
5 City, town, or post office, state, and ZIP code 6 Date of issue
BOZEMAN, MT 59771 1230 February 10, 2010
7 Name of issue 8 CUSIP number
Sewer System Rev. Bond (DNRC Drinking Water State Revolving Fund) 2010B 2010C NONE
9 Name and title of officer or legal representative whom the IRS may call for more informatioA 10 Telephone number of officer or legal representative
ANNA ROSENBERRY, FINANCE DIRECTOR 406 582 -2300
Part II Type of Issue (check applicable box(es) and enter the issue price) See instructions and attach schedule
11 Education 11
12 Health and hospital 12
13 Transportation 13
14 Public safety 14
15 Environment (including sewage bonds) 15 $1,582,300.00
16 Housing 16
17 Utilities 17
18 Other. Describe 18
19 If obligations are TANS or RANs, check box 0- 0 If obligations are BANs, check box
20 If obligations are in the form of a lease or installment sale, check box 4
Part III Description of Obligations. Complete for the entire issue for which this form is being filed.
to Stated redemption (d) Weighted (e) Yield
(a) Final maturity date (b) Issue price
price at maturity average maturity
21 01/01/2030 $1,582,300.00 $1,582,300.00 11.209 years 3.295950
Part IV Uses of Proceeds of Bond Issue (including underwriters' discount)
22 Proceeds used for accrued interest 22 0
23 Issue price of entire issue (enter amount from line 21, column (b)) 23 $1,582,300.00
24 Proceeds used for bond issuance costs (including underwriters' discount) 24 $8,020.00
25 Proceeds used for credit enhancement 25 0
26 Proceeds allocated to reasonably required reserve or replacement fund 26 $110,042.00
27 Proceeds used to currently refund prior issues 27 0
28 Proceeds used to advance refund prior issues 28 0
29 Total (add lines 24 through 28) 29 $118,062.00
30 Nonrefundinq proceeds of the issue (subtract line 29 from line 23 and enter amount here) 30 $1,464,238.00
Part V Description of Refunded Bonds (Complete this part only for refunding bonds.)
31 Enter the remaining weighted average maturity of the bonds to be currently refunded years
32 Enter the remaining weighted average maturity of the bonds to be advance refunded years
33 Enter the last date on which the refunded bonds will be called
34 Enter the date(s) the refunded bonds were issued
Part VI Miscellaneous
35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) 35 0
36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions)
36a 0
b Enter the final maturity date of the guaranteed investment contract
37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units 37a 0
b If this issue is a loan made from the proceeds of another tax exempt issue, check box and enter the name of the
issuer State of Montana with respect to 2010C bond and the date of the issue
April 2009
38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box
39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box
40 If the issuer has identified a hedge, check box
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge
and belief, they are tr e. correct, and complete.
Sign
Here February 10, 2010 Anna Rosenberry, Finance Director
Signs re of issuer's I orized represent /e Date Type or print name and title
For Paperwork R uction Act Notice, see page 2 of the Instructions. Cat No. 637735 Form 8038 (Rev 11-2000)
64
supplement is required b or better complies with, the provisions of Section 148 and applicable
P] q Y� P P Pl
Regulations.
Dated: February 10, 2010
CITY OF BOZEMAN, MONTANA
By
irectoi Loaf inance
5
410 (t) On the basis of all the facts, estimates and circumstances now in existence and
set forth in the documents relating to the issuance of the Series 2010B Bond and the
Series 2010C Bond, including without limitation this instrument, it is expected that the
proceeds of the Series 2010B Bond and the Series 2010C Bond will be used in a manner
that would not cause the Series 2010B Bond and the Series 2010C Bond to be an
"arbitrage bond" within the meaning of Section 148 of the Code and the Regulations.
(u) To the best of our knowledge and belief, there are no other facts, estimates or
circumstances that would materially change the foregoing expectations and said
expectations are reasonable. No matters have come to our attention which make
unreasonable or incorrect the representations made in this Certificate.
7. The seal impressed on this Certificate and on the Series 2010 Bonds is the true and
only official corporate seal of the City.
WITNESS our hands on behalf of the City as of this 10th day of February, 2010.
CITY OF BOZEMAN, MONTANA
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