HomeMy WebLinkAboutResolution 2211 Awarding the sale and issuance of General Obligation Library Bonds: 6-25-80
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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"),
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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:
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(Manual Signature)
Clerk of the City Commission
(End of Form of Bond)
COMMISSION
RESOLUTION NO. 2211
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(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
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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)
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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
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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
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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-
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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
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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
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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
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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
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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
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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-
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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
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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.
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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
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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
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COMMISSION RESOLUTION NO. 2211
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