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HomeMy WebLinkAboutResolution 2891 Sale of bonds for pooled SIDs . . RESOLUTION NO. 2891 RESOLUTION RELATING TO POOLED SPECIAL IMPROVEMENT DISTRICT REFUNDING BONDS, SERIES 1992 (SPE(:IAL IMPROVEMENT DISTRICT NOS. 591,598,607,613,615,632 and 646); AUTHORIZING THE ISSUANCE AND PRIVATE NEGOTIATED SALE THEREOF BE IT RESOLVED by the Board of Commissioners of the City of Bozeman, Gallatin County, Montana (the "City"), as follows: Section 1. Recitals. The City, pursuant to Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (the "Act"), has issued its special improvement district bonds (the "Outstanding Bonds") drawn against the funds of, and to finance the costs of improvements in, the following special improvement districts (the "Districts"): Special Original Principal Outstanding Principal Improvement Amount of Amount of District No. , Bonds Bonds . 591 $440,000 $108,000 598 150,000 44,000 607 170,000 46,000 613 190,000 51,000 615 300,000 105,000 632 80,500 36,000 646 170,000 65,000 All of the improvements financed from the proceeds of the Outstanding Bonds have been completed and all proceeds of the Outstanding Bonds and investment income thereon to be applied to costs of the improvements have been so applied or have been applied to the partial redemption of the Outstanding Bonds drawn on the respective Districts. Section 2. Authorization. Montana Code Annotated, Section 7-12-4194 authorizes the issuance of special improvement district bonds under the Act to provide money needed to pay principal of and interest on outstanding bonds if the rate of interest on the refunding bonds is not less than one-half of one percent (.50%) a year less than the rate of interest on the bonds to be refunded. Section 7-12-4193 authorizes the pooling of bonds of more than one special improvement district if the pooling is in the best interest of the city and the respective districts and . will facilitate the sale of the bonds under more advantageous terms or with lower interest rates and if the pooled bonds are secured by the special improvement district revolving fund of the City. .. . Section 3. Pooling and Issuance of Refunding Bonds. It is hereby determined that it is in the best interests of the City and the owners of taxable property in the Districts for the City to sell its pooled special improvement district refunding bonds, pursuant to Montana Code Annotated, Sections 7-12-4193 and 7-12- 4194, in order to refund the Outstanding Bonds in advance of their stated maturities. Such bonds shall be denominated "Pooled Special Improvement District Refunding Bonds, Series 1992 (Special Improvement District Nos. 591, 598, 607, 613, 615, 632 and 646)" (the "Bonds"), and shall be issued in the aggregate principal amount necessary to provide funds to redeem on January I, 1993 the Outstanding Bonds. This Board hereby finds that the pooling into a single refunding bond issue of the bond issues required to refund each issue of the Outstanding Bonds is in the best interest of the City and each of the Districts and will facilitate the sale of the Bonds because the size of the issue will attract more interest in the marketplace and thus help to lower interest rates on the bonds, and because a single refunding issue will reduce the costs and expenses of the refunding. Because the Bonds will be issued in a principal amount not greater than the outstanding principal amount of the Outstanding Bonds, no public hearing is required to establish the desirability of issuing the Bonds to refund the Outstanding Bonds. The reason for issuing the Bonds is to achieve debt service savings for each of the Districts, now estimated in the aggregate at $55,900 or computed on a present value basis (using 6.9% as the discount rate) at . $35,800. The savings will benefit each of the Districts and the owners of property therein by reducing the total cost of the improvements financed therein and will benefit the City by reducing the liability of the Special Improvement District Revolving Fund of the City with respect to the Outstanding Bonds. Section 3. Sale of Bonds; Bond Purchase Agreement. Pursuant to Montana Code Annotated, Sections 7-12-4194(3) and 7-12-4204(1), as amended, this Board hereby determines that it would be in the best interests of the City to sell the Bonds at a private negotiated sale to D.A. Davidson & Co., of Great Falls, Montana (the "Purchaser"). The Bonds shall be sold to the Purchaser on terms and at a purchase price within the following limitations: (1) the purchase price shall not be less than the principal amount of the Bonds and the compensation to be paid to the Purchaser, payable in cash or realizable from the initial reoffering price of additional interest certificates, representing additional interest to be borne by the Bonds, does not exceed 2.5% of the original principal amount of the Bonds; (2) the aggregate principal amount of the Bonds shall not exceed $445,000; and (3) the basic interest rates on the Bonds are such that the average annual rate of interest on the Bonds is not greater than six and ninety-five one hundredths percent (6.95%) per annum and debt service payable on the Bonds (including additional interest) is such that the net present value of debt service savings to be achieved by the refunding is not less than 8.0% of the principal amount of the Outstanding Bonds, using the yield of the Bonds as the discount factor, calculated over the term of the Outstanding . Bonds. -2- ----.". ---------".. .....---........-.--. . . Mr. Miral Gamradt, Administrative Services Director, is hereby authorized and directed to approve the principal amount, purchase price, maturity dates (provided that the final maturity date is not later than July 1, 2004), principal amounts, basic and additional interest rates and redemption provisions of the Bonds, subject to the limitations contained in the preceding paragraph. Upon approving such terms, said Administrative Services Director is hereby authorized and directed to approve, execute and deliver to the Purchaser a bond purchase agreement (the "Bond Purchase Agreement"), containing the agreement of the City to sell, and the agreement of the Purchaser to purchase, the Bonds on the terms so approved, and containing such other provisions as such Administrative Services Director shall deem necessary and appropriate. In the event of the absence or disability of Mr. Miral Gamradt, the City Manager of the City or, in the event of his absence or disability, the Mayor or such other commissioner or officer of the City selected by the Mayor shall make such approvals and execute and deliver the Bond Purchase Agreement. The execution and delivery by an appropriate officer of the City of the Bond Purchase Agreement shall be conclusive as to the approval of such officers of the terms of the Bonds and the agreement of the City to sell the Bonds on such terms in accordance with the provisions thereof. The form of the Bonds and the security therefor shall be prescribed by a subsequent resolution to be adopted by this Board. ... . Section 4. Preliminary Official Statement. The Administrative , Services Director and other officers of the City, in cooperation with the Purchaser, are hereby authorized and directed to prepare a Preliminary Official Statement to be distributed by the Purchaser to potential purchasers of the Bonds. The Administrative Services Director is hereby authorized on behalf of the City to deem the Preliminary Official Statement a "final" official statement as of its date, in accordance with Rule 15c2-12(b)(1) promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934. PASSED AND ADOPTED this 19th day of October, 1992. ~~ 'TIMOTHY S NSON, Mayor ATTEST: ~;/~ ROBIN L. SULLIVAN . Clerk of the COIrimission ~-" .....~" / ~.._._ .. . ' ...uq,J-P -3- {I.i.,'..,. ,.'", ., '", J~ ' ';. , . " . ......-..... --. ......-...... .---..--.-..--- State of Montana ) . County of Gallatin ) City of Bozeman ) I, Robin L. Sullivan, Clerk of the Commission of the City of Bozeman, Montana, do hereby certify that the foregoing Commission Resolution No. 2891 was published by title and number in the Bozeman Daily Chronicle, a newspaper of general circulation printed and published in said City, in the issue dated the 22nd day of October 1992, and due proof of such publication is on file in my office. IN WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my office. ~~~~ ) IN L. SULL VAN Clerk of the Commission . .