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Home My WebLink AboutResolution 4376 General Obligation refunding Bonds, Series 2012 CERTIFICATE AS TO RESOLUTION AND ADOPTINNG VOTE I,the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana(the"City"),hereby certify that the attached resolution is a true copy of the resolution, entitled: "RESOLUTION RELATING TO GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012; AUTHORIZING THE ISSUANCE AND PRIVATE NEGOTIATED 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 of the City at a meeting on May 7, 2012, 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notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed.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 NWhAMry 00 G ; voted against the same: abstained from voting thereon: or were absent: -M%4hR,2Ted.Q-Q WITNESS my hand officially this day of May, 2012. sa > ar ar • ♦ • a Cle the Com �"= (SEAL) +$� . RESOLUTION NO. 4376 RESOLUTION RELATING TO GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012;AUTHORIZING THE ISSUANCE AND PRIVATE NEGOTIATED SALE THEREOF BE IT RESOLVED by the City Commission(the"Commission")of City of Bozeman, Montana(the"City"), as follows: Section 1. Recitals. At an election duly called and held on June 28, 2001, the electors of the City authorized the issuance and sale of general obligation bonds in the aggregate principal amount of$4,000,000. Pursuant to such authorization,this Commission issued and sold general obligation bonds of the City denominated General Obligation Bonds, Series 2001A, in the original aggregate principal amount of$2,315,000(the"Series 2001A Bonds")and General Obligation Bonds, Series 2003A, in the original aggregate principal amount of $1,685,000 (the"Series 2003A Bonds"). The Series 2001A Bonds and the Series 2003A Bonds are currently outstanding in the aggregate principal amount of$1,435,000 and $1,080,000, respectively. At an election duly called and held on November 8, 1994,the electors of the City authorized the issuance and sale of general obligation bonds in the aggregate principal amount of $5,000,000. Pursuant to such authorization,this Commission issued and sold general obligation bonds of the City denominated General Obligation Bonds, Series 1995, in the original aggregate principal amount of$5,000,000 (the"Series 1995 Bonds"). The Series 1995 Bonds with stated maturities in 2005 and later years were subsequently refunded by the County's General Obligation Refunding Bonds, Series 2003B, in the aggregate principal amount of$3,480,000 (the "Series 2003B Bonds"). The Series 2003B Bonds are currently outstanding in the aggregate principal amount of$1,195,000. It is proposed that the Series 2001A Bonds,the Series 2003A Bonds, and Series 2003B Bonds with stated maturities in 2013 and thereafter and outstanding in the aggregate principal amount of$3,120,000 (the"Refunded Bonds")will be refunded in one series of bonds to be issued by the City. Section 2. Authorization. For the purposes of reducing the interest cost on the Refunded Bonds and reducing the taxes necessary to pay the principal of and interest on the Refunded Bonds, it is hereby determined that it is in the best interests of the City and the owners of taxable property therein for the City to pursue the sale of general obligation refunding bonds, pursuant to Montana Code Annotated, Title 7, Chapter 7,Part 43 (the"Act"),to refund the Refunded Bonds. Such refunding bonds shall be denominated"General Obligation Refunding Bonds, Series 2012"(the"Bonds"), and shall be issued in the aggregate principal amount necessary to provide funds,with other available funds of the City, to pay the interest on and principal of some or all the Refunded Bonds, as determined by the officers of the City identified pursuant to Section 3 and within the limitations therein established so as to maximize debt service savings, assuming that the Refunded Bonds are called for redemption as soon as reasonably practicable at a redemption price equal to the principal amount thereof plus interest accrued to the date of redemption,without premium. Section 3. Sale of Bonds; Bond Purchase Agreement. Pursuant to Montana Code Annotated, Section 7-7-4302,this Commission 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 underwriter's discount shall not exceed 0.75% of the principal amount of the Bonds, exclusive of original issue premium or discount; (2)the aggregate principal amount of the Bonds shall not exceed$3,255,000; (3)the debt service payable on the Bonds is such that the net present value of debt service savings to be achieved by the refunding is not less than 6,00%of the principal amount of the Refunded Bonds,using the yield of the Bonds as the discount factor, calculated over the remaining term of the Refunded Bonds; (4)the maximum average interest rate on the Bonds shall not exceed 2.75%; and (5)the average annual interest rate on the Bonds is at least fifty-hundredths percent(0.50%)less than the average annual interest rate on the Refunded Bonds. All costs of issuing the Bonds (including, without limitation,underwriter's compensation,the fees and expenses of bond counsel, the fees of the Paying Agent and Registrar,rating agency fees,printing expenses relating to the preliminary official statement and official statement, and the costs of printing the Bonds) shall be paid by the City. The City Manager,the City Finance Director and one designated member of the City Commission are hereby authorized and directed to approve the principal amounts,purchase price, maturity dates(provided that the final maturity date complies with the requirements of Section 7-7-4303 of the Act),basic and additional interest rates, original issue discount or original issue premium, and redemption provisions of or relating to the Bonds, subject to the limitations contained in the preceding paragraph. Upon approving such terms, the City Manager, the City Finance Director and one designated member of the City Commission are 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 officers shall deem necessary and appropriate. In the event of the absence or disability of any of the City Manager,the City Finance Director and one designated member of the City Commission, another member of this Commission shall make such approvals and execute and deliver the Bond Purchase Agreement. The execution and delivery by two appropriate officers 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 Commission. 2 Section 4. Preliminary Official Statement. The City Manager,the Finance 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 City Manager and the Finance Director(or in the event of the absence or disability of either of them, a member of this Commission) are hereby authorized and directed on behalf of the City to approve the Preliminary Official Statement, and to deem it a near"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 and Exchange Act of 1934. Adopted this 7th day of May, 2012. CITY OF BOZEMAN, MONTANA a< ayor Y OF .a � Y a • a � Attest: - Cle . 1 83 � (SEAL) ��tly•+ . . nxoct .ern 3