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HomeMy WebLinkAboutResolution 2211 Awarding the sale and issuance of General Obligation Library Bonds: 6-25-80 -..-.. _n.on_._ --- .. ___" -- '85 COMMISSION RESOLUTION NO. 2211 AWARDING THE SALE AND AUTHORIZING THE ISSUANCE BY THE CITY OF BOZEMAN, MONTANA, OF ITS GENERAL OBLIGATION LIBRARY BUILDING BONDS, SERIES 1980, IN THE PRINCIPAL AMOUNT OF $1,460,000. WHEREAS, at an election duly called and held in the City of Bozeman, Montana (the "City"), I on November 7, 1978, there was submitted to the registered qualified electors of the City the question of issuing general obligation library bonds in an aggregate principal amount not to exceed $1,460,000 (the "Bonds"); and WHEREAS, more than 40% of the registered qualified electors of the City entitled to vote on said question of issuing bonds voted thereon and a majority of the votes were cast in favor of issuance of the Bonds; and WHEREAS, pursuant to Commission Resolution No. 2188 the Bonds have been advertised for sale as required by part 42, chapter 7, title 7, Montana Code Annotated 1979, as amended; and WHEREAS, sealed bids for the Bonds were received and opened by the City Commission (the "Commission") on June 18, 1980, and it was determined that The First National Bank of St. Paul of St. Paul, Minnesota, (the "purchaser") was the highest and best bidder therefor; and WHEREAS, it is now necessary to award the sale of the Bonds to the Purchaser and to authorize the issuance of the Bonds in conformity with the Purchaser's bid. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AS FOLLOWS: 1. The sale of the Bonds is hereby awarded to the Purchaser. I 2. For the purpose of defraying, in whole or in part, the cost of acquiring a site for and constructing, equipping and furnishing a new municip~l library in the City, together with all necessary incidental and appurtenant properties and facilities, and the costs inci- dental thereto, the City shall issue its negotiable coupon General Obligation Library Building Bonds, Series 1980, in the aggregate principal amount of $1,460,000, dated July I, 1980, con- sisting of 292 bonds in the denomination of $5,000 each, numbered 1 to 292, inclusive, payable in lawful money of the United States of America. Said Bonds shall bear interest as evidenced by one set of bearer interest coupons as herein set forth. The subject Bonds shall mature serially in regular numerical order on January 1 of each year and shall bear per annum coupon interest from July 1, 1980, to the maturity dates of the respective Bonds, except if redeemed prior thereto, at the rate of seven per centum (7.00%) per annum. Said coupon interest shall be payable January 1, 1981, and semiannually thereafter on the 1st day of July and the 1st day of January of each year. If upon presentation at matur- ity payment of the principal amount of any Bond is not made as provided herein, interest shall continue at the rate of six per centum (6.00%) per annum until payment of said principal amount is made in full. I Bonds Numbered Year of Principal Amount Per Annum (both inclusive) Maturi ty Maturing Coupon Interest Rate 1 to 7 1981 $35,000 7.00% 8 to 22 1982 75,000 7.00 23 to 37 1983 75,000 7.00 38 to 52 1984 75,000 7.00 53 to 67 1985 75,000 7.00 68 to 82 1986 75,000 7.00 83 to 97 1987 75,000 7.00 98 to 112 1988 75,000 7.00 113 to 127 1989 75,000 7.00 COMMISSION RESOLUTION NO. 2211 --- .- ..-. - --. __u -- .-.- --- -.."..- -- ... ---- _. .n ,..._ -.-- -...-.-.... .. ------ 86 . - 128 to 142 1990 75.000 7.00 143 to 157 1991 75.000 7.00 158 to 172 1992 75.000 7.00 173 to 187 1993 75.000 7.00 188 to 202 1994 75.000 7.00 203 to 217 1995 75.000 7.00 218 to 232 1996 75.000 7.00 233 to 247 1997 75.000 7.00 248 to 262 1998 75,000 7.00 263 to 277 1999 75.000 7.00 I 278 to 292 2000 75.000 7.00 Bonds of this issue numbered 1 through 142. inclusive. maturing on or before January 1. 1990. are not redeemable prior to their respective maturity dates. Bonds of this issue numbered 143 through 292, inclusive. maturing on January 1. 1991. and thereafter. are redeem- able by the Commission on July 1. 1990. and on any interest payment date thereafter. in the numerical order in which they were issued at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the redemption date. Notice of any redemption shall be given by the Finance Director in the name of the City, by publication of such notice once a week for two (2) successive weeks immediately preceding the redemption date in The Bozeman Daily Chronicle. if then in business and publishing. and if not. then in a newspaper of general circulation in the City. and by sending a copy of such notice by certified or registered first-class. postage prepaid mail. at least fifteen (15) days prior to the redemption date. to the Paying Agent and to the holders of each of the Bonds being redeemed. if the names and addresses of such holders are recorded with the Finance Director. For this purpose. the holder of any such Bond may at any time furnish his name and address to the Finance Director" Such notice shall specify the number or numbers of the Bonds so to be I redeemed and the date fixed for redemption. and shall further state that on the redemption date there will become and will be due and payable upon each Bond so to be redeemed the prin- cipal amount thereof plus accrued interest on said principal amount to the redemption date. and that from and after such date interest will cease to accrue. Any Bonds redeemed prior to their respective maturities by call for prior redemption or otherwise shall not be reissued and shall be cancelled the same as Bonds paid at or after maturity. 3. The principal of and interest on the Bonds shall be payable in lawful money of the United States of America without deduction for exchange or collection charges at The First National Bank of St. Paul. in St. Paul. Minnesota (the "Paying Agent"). which is hereby desig- nated the paying agent for this bond issue. The net effective interest rate on Bonds of this issue is 6.998%. The Bonds shall be general obligations of the City. and shall be payable from general ad valorem taxes except as they may actually be paid from other revenues as provided herein. 4. Said Bonds shall be executed in the name and on behalf of the City with the facsimile signatures of its Mayor and Finance Director. shall bear a facsimile of the seal of the City. shall be attested by the manual signature of the Clerk of the Commission. and each of said I Bonds shall have attached thereto an appropriate number of interest coupons bearing the facsimile signatures of the Mayor. the Finance Director and the Clerk of the Commission. Said coupons shall be numbered consecutively from one upwards for each Bond as appropriate. When issued as afore- said as part of said Bonds. said coupons shall be the lawful binding promises and obligations of the City according to their import. securing the payment of interest as it becomes due. Should COMMISSrON RESOLUTION NO. 2211 ....-- -- -,~..,- -- -- ,,-- _.._..._...____._ .________ n .-.-..-. n_m _ ----. .-.- - 87 any officer whose manual or facsimile signature appears on said Bonds or the interest coupons attached thereto cease to be such officer before delivery of the Bonds to the Purchaser, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. 5. Said Bonds shall be issued as'serial bonds, and said Bonds and the interest coupons I attached thereto shall be in sUbstantially the following form: (Form of Bonds) UNITED STATES OF AMERICA STATE OF MONTANA COUNTY OF GALLATIN CITY OF BOZEMAN GENERAL OBLIGATION LIBRARY BUILDING BONO SERIES 1980 No. $5,000 The City of Bozeman, in the County of Gallatin and State of Montana, for value received, hereby acknowledges itself indebted and promises to pay to the bearer hereof the principal sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America, on the 1st day of January , with interest thereon from the date hereof to the maturity date of this Bond, except if redeemed prior thereto, as evidenced by one set of bearer interest coupons hereto attached at the rate of seven per cen- tum (7.00%) per annum, payable January 1, 1981, and semiannually thereafter on the 1st day of July and the 1st day of January of each year. The principal of and interest on this Bond are I payable without deduction for exchange or collection charges at the office of the paying agent herefor, The First National Bank of St. Paul, in St. Paul, Minnesota, upon presentation and sur- render of said coupons and this Bond as they severally become due. If upon presentation at mat- urity payment of the principal amount of this Bond is not made, interest shall continue at the rate of six per centum (6.00%) per annum until payment of said principal amount is made in full. Bonds of this issue maturing on or before January 1, 1990, are not redeemable prior to their respective maturity dates. Bonds of this issue maturing on January 1, 1991, and there- after are redeemable by the City Commission on July 1, 1990, and on interest payment dates thereafter, in the numerical order in which they were issued, at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon to the redemption date. Notice of any redemption shall be given by publication of notice once a week for two (2) successive weeks immediately preceding the redemption date in The Bozeman Daily Chronicle, Bozeman, Montana, if then in business and pUblishing, and if not, then in a newspaper of general circulation in the City of Bozeman, Montana, and by sending a copy of such notice by certified or registered first class, postage prepaid mail, at least fifteen (15) days prior I to the redemption date, to the paying agent herefor and to the holders of each of the Bonds being redeemed, if the names and addresses of such holders are recorded with the City Finance Director. For this purpose, the holder of any such Bond may at any time furnish his name and address to the City Finance Director. Such notice shall specify the number or numbers of the Bonds so to be redeemed and the date fixed for redemption, and shall further state that on the redempti on date there will become and wi 11 be due and payable upon each Bond so to be redeemed the principal amount thereof plus accrued interest on said principal amount, and COMMISSION RESOLUTION NO. 2211 ---,,-- - ... n._ _._._~- _m_....____.._.___ - -.-.- -- 88 that from and after such date interest will cease to accrue. This Bond is one of a series issued by the City Commission of the City of Bozeman, Montana, for the purpose of providing funds to defray. in whole or in part. the cost of acquiring a site for and constructing. equipping and furnishing a new municipal library in the City. together with all necessary incidental and appurtenant properties and I facilities. and the costs incidental thereto. by virtue of and in full conformity with the Constitution of the State of Montana and all other laws of the State of Montana thereunto enabling. and pursuant to a Resolution of said City Commission duly adopted prior to the issuance of this Bond. It is hereby recited. certified and warranted that all the requirements of law have been fully complied with by the proper officers of the City in issuing this Bond. It is further hereby recited. certified and warranted that the total indebtedness of said City. including that of this Bond. does not exceed any constitutional or statutory limitation of the State of Montana; that at a election lawfully held in the City on the 7th day of November, 1978. the issuance of this Bond was duly authorized by the regis- tered qualified electors of the City voting at said election; and that provision has been made for the levy and collection of a separate and special tax upon all taxable prop- erty in the City sufficient to pay the interest on and the principal of this Bond as the same respectively become due. The full faith and credit of the City of Bozeman. in the County of Gallatin and State of Montana. is hereby irrevocably pledged for the prompt payment of both the principal of I and the interest on this Bond. IN TESTIMONY WHEREOF. the City Commission of the City of Bozeman, Montana, has caused this Bond to be executed in the name and on behalf of said City with the facsimile signa- tures of the Mayor and Finance Director of said City, to be sealed with a facsimile of the seal of said City. to be attested by the manual signature of the Clerk of the City Commission of said City. and has caused the interest coupons attached hereto to be executed with the facsimile signatures of the Mayor. the Finance Director and the Clerk of the City Commission of said City. all as of the 1st day of July. 1980. CITY OF BOZEMAN. MONTANA By (Facsim ile Signature) Mayor (Facsimile) ( Seal ) By (Facsim ile Signature) Finance Director ATTEST: I (Manual Signature) Clerk of the City Commission (End of Form of Bond) COMMISSION RESOLUTION NO. 2211 .- .-.--... .._~_.- ..-. _.___._._..___.._...._.._u --------- - --.- - .. -.. --- 89 (Interest Coupon Form) No. $175.00 January, On the 1st day of July, , unless the Bond to which this coupon is attached, if redeemable, has been called for prior redemption, the City of Bozeman, in the County of I Gallatin and State of Montana, will, pay to bearer the amount shown hereon in lawful money of the United States of America, at The First National Bank of St. Paul, in St. Paul, Minnesota, being interest then due on its General Obligation Library Building Bond, Series 1980, dated July 1, 1980, bearing No. (Facsimile Signature) Mayor City of Bozeman, Montana (Facsimile Signature) Finance Director City of Bozeman, Montana (Facsimile Signature) I Clerk of the City Commission City of Bozeman, Montana (End of Interest Coupon Form) 6. Said Bonds, when executed as provided by law, shall be registered by the Finance Director in accordance with 7-7-4257, Montana Code Annotated 1979, as amended, and thereafter delivered by the Finance Director to the Purchaser upon receiving full payment therefor in accordance with the bid of the Purchaser. The proceeds derived from said Bond sale shall be used for the purposes stated herein and for no other purposes, provided, however, that any portion of the bond proceeds may be temporarily invested pending such use as provided in 7-7- 123 and 124, Montana Code Annotated 1979, as amended, with such temporary investment to be made consistent with the covenant hereinafter provided concerning arbitrage bonds. Neither the Purchaser of said Bonds nor the holder of any of them shall be in any way responsible for the application of the proceeds of said Bonds by the City or any of its officers. 7. For the purpose of paying the interest on and principal of said Bonds as the same I become due and payable respectively, the Commission of the City shall at the time of making the levy of taxes for general City purposes levy a separate and special tax upon all taxable property in the City. Said levy shall be entirely separate and distinct from the levy for any other issue or series of bonds. The amount necessary for this purpose shall be ascertained in accordance with 7-7-4265, Montana Code Annotated 1979, as amended. COMMISSION RESOLUTION NO. 2211 ... n__.___ ._...~- _ .....-.--.--- --. .-...- .--.'...'--'- .---~ _. 90 . - Said taxes when collected shall be credited to a separate and special sinking fund account for the Bonds hereby established and to be known as the "City of Bozeman, Montana, General Obligation Library Building Bonds, Series 1980, Fund" (the "Fund") and shall be applied solely for the payment of the interest on and principal of said Bonds, respectively, until the Bonds, both as to principal and interest, shall be fully paid, satisfied and dis- I charged. Nothing herein shall be so construed as to prevent the City from committing and applying any other funds or revenues that may now or hereafter be legally available for the purpose of paying the interest on or principal of said Bonds. 8. The sums hereinbefore provided to meet the interest on said Bonds and to discharge the principal thereof, when due, are hereby appropriated for that purpose, and said amount for each year shall be included in the annual budget and the appropriation ordinance or measures to be adopted or passed by the Commission of the City in each year respectively while any of the Bonds herein authorized, either as to principal or interest, are outstand- ing and unpaid. No provisions of any constitution, statute, ordinance, resolution, or other order or measure enacted after the issuance of the Bonds herein authorized shall in any manner be construed as limiting or impairing the obligation of the City to levy taxes as provided herein. It shall be the duty of the Commission annually at the time and in the manner provided by law for levying other City taxes, if such action shall be necessary to effectuate the provisions of this Resolution, to ratify and carry out the provisions hereof with reference to the levy and collection of the ad valorem taxes herein specified, and to require the I officers of and for the City to levy, extend and collect said taxes in the manner pro- vided by law for the purpose of providing funds for the payment of the principal of the Bonds authorized herein and the interest accruing thereon promptly as the same, respectively, become due. Said taxes, when collected, shall be kept for and applied only to the payment of the interest on and principal of said Bonds as hereinbefore specified. 9. The City covenants with the holders of the Bonds that it will make no use of the proceeds of the Bonds at any time during the term thereof which, if such use had been reason- ably expected on the date the Bonds are issued, would have caused the Bonds to be arbitrage bonds within the meaning of Section 103 (c) of the Internal Revenue Code of 1954, as amended, and the regulations promulgated thereunder by the United States Treasury Department, unless, under any provision of law hereafter enacted, the interest paid on the Bonds (a) shall be excludable from the gross income of a recipient thereof for federal income tax purposes with- out regard to whether or not such Bonds are arbitrage bonds, or (b) shall be exempt from all ,federal income taxation. 10. All action heretofore taken by the City and by the officers of the City not incon- sistent herewith directed toward the authorization of bonds for the purpose of providing funds I to defray, in whole or in part, the cost of acquiring a site for and constructing, equipping, and furnishing a new municipal library in the City is hereby ratified, approved and confirmed. 11. Pursuant to the Uniform Facsimile Signature of Public Officials Act, 2-16-114, Montana Code Annotated 1979, as amended, the Mayor, the Finance Director, and the Clerk of COMMISSION RESOLUTION NO. 2211 -.-. --. ..- - ....u. .._....~. ....._"..__....~._.._...__ 91 the Commission shall forthwith and in any event prior to the time the Bonds are delivered to the Purchaser file with the office of the Clerk of the Commission their manual signa- tures certified by them under oath. 12. The officers of the City are hereby authorized and directed to enter into such I agreements and take all action necessary or appropriate to effectuate the provisions of this Resolution and to comply with the requirements of law, including, without limiting the gener- ality of the foregoing: a. The printing of the Bonds herein authorized, including the printing upon each of such Bonds of a copy of the approving opinion of Messrs. DeMuth, Kemp & Backus, bond counsel, duly certified by the Clerk of the Commission; and b. The execution of such certificates as may be reasonably required by the Purchaser of the Bonds relating to the signing of the Bonds, the tenure and identity of the City officials, the taxable value and indebtedness of the City, if in accordance with the facts, the absence of litigation, pending or threatened, affecting the validity of the Bonds, receipt of the bond purchase price and the accuracy and completeness of disclosure of information provided in any bond offer- ing brochure, preliminary official statement, official statement or offering cir- cular for prospective buyers of the Bonds; and c. The making of various statements, recitals, certifications and warran- ties provided in the form of Bond set forth in this Resolution; and I d. The preparation and execution of a bond offering brochure, preliminary official statement, official statement, or offering circular, for the use of pros- pective purchasers of the bonds, including, without limitation, the Purchaser and its associates. 13. All ordinances, resolution, acts, orders, or parts thereof, taken by the City and in conflict with this Resolution are hereby repealed, except that this repealer shall not be construed so as to revive any ordinance, resolution, act, order, or part thereof heretofore repealed. 14. This Resolution is, and shall constitute, a legislative measure of the City, and after the Bonds hereby authorized are issued, sold, and are outstanding, this Resolution shall constitute a contract between the City and the holder or holders of said Bonds, and shall be and remain irrepealable until said Bonds and the interest accruing thereon shall have been fully paid, satisfied and discharged. 15. No officer or employee of the City has performed an official act related to the issuance of the Bonds directly and substantially affecting to his economic benefit a busi- I ness or other undertaking in which he either has a substantial financial interest or is engaged as counsel, consultant, representative or agent, except under the circumstances described in 2-2-125, Montana Code Annotated 1979, as amended, and upon compliance with the voluntary disclosure procedures under 2-2-131, Montana Code Annotated 1979, as amended. 16. If any paragraph, clause or provision of this Resolution is judicially adjudged invalid or unenforceable, such judgment shall not affect, impair or invalidate the remaining COMMISSION RESOLUTION NO. 2211 --....- - _.~-_. ---......-...-.....-..... - -- 92 " - paragraphs, clauses or provisions hereof, the intention being that the various paragraphs, clauses or provisions hereof are severable. PASSED AND ADOPTED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AT A REGULAR SESSION THEREOF HELD ON THE 25TH DAY OF JUNE, 1980. I By (c ITY) (SEAL) ATTEST: f?d~ at tdtjf~~LJ ~d'-Clerk of the City Commission State 0 f Montana ) County of Gallatin ) City of Bozeman ) I, Erna V. Harding, Clerk of the Commission of the City of Bozeman do hereby certify that the foregoing Resolution No. 2211 was published by title and number in the Bozeman I Daily Chronicle, a newspaper of general circulation printed and published in said City, in the issue dated the 4th day of July, 1980, and due proof of such publication is on file in my office. IN W'ITNESS WHEREOF I hereunto set my hand and affi x the corporate seal of my offi ce this 14th day of July, 1980. (iJ~ cZ tJ;1P~ ~~Clerk of the City Commission I COMMISSION RESOLUTION NO. 2211 . -,- - .."...----... ---