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HomeMy WebLinkAboutResolution 1580 Confirming Sale of $67,000 Special Improvement District 520 Bonds -.-.----.---- 473 COMMISSION RESOLUTION NO. 1580 "*'* ......, .... 011....1IlIooI RESOLUTION CONFIRMING SALE OF $67,000.00 SPECIAL IMPROVEMENT /:;-7;L) ~~73 DISTRICT NO. 520 BONDS, AND PRESCRIBING THEIR FORMS AND TERMS -.......,,_......h.~....._. _, --C- !),_IL-.__._ AND COVENANTS OF THE CITY FOR THE SECURITY OF THE HOLDERS THEREOF BE IT RESOLVED by the City Commission of the City of Bozeman, Montana: I Section 1. Recitals. It is hereby found, determined and declared as follows: 1.01 By Resolution No. 1563, adopted February 21, 1973, this Commission declared its intention to create Special Improvement District No. 520 for the purpose of making special improvements with- in and for the special benefit of said district, which resolution designated the number of the district, described the boundaries thereof, and stated the general character of the improvements to be made therein,in accordance with the provisions of Title 11, Chapter 22, Revised Codes of Montana, 1947, as amended. By said resolution this Commission also declared its intention to cause the cost and expense of making such improvement to be assessed against the properties included within the boundaries of the district. 1.02 Notice of the passage of said resolution was given by publication once each day for five consecutive days, in the Bozeman Daily Chronicle, a legal, daily newspaper published within the City and by mailing a copy of such notice to every person, firm or corporation, or the agent of such person, firm or corporation, haveingreal property within the proposed district listed in his name upon the last completed assessment roll for state, county or school district taxes, at his last known address. Said notice described the general character of the improvements proposed to be made, stated the estimated cost of the improvements, designated the time when and place where the Commission would hear and pass upon all protests made against the making of such im; provements or the creation of such district, and referred to the resolution of intention, de- / signated above, as beLng on file in the office of the Clerk of the City Commission for the des- cription of the boundaries of said district, all as provided in said resolution of intention. 1.03 At the time and place specified in the notices hereinabove described, this Commission met to hear, consider and pass upon all protests made against the making of such improvements or the creation of such district, and after consideration thereof, it was determined and declared that insufficient protests against the creation of the district or the proposed work had been filed in the time and manner provided by law by the owners of the property to be assessed for said improvements, and the Commission did therfore by Resolution No. 1567, adopted 21 March, 1973, create Special Improvement District No. 520, and did order the proposed improvements in I accordance with the resolution of intention designated in paragraph 1.01 hereof. 1.04 Plans, specifications, maps, profiles and surveys for construction of the improvements in Special Improvement District No. 520 were prepared by the engineers acting for the City, and were thereupon examined and approved by this Commission. An advertisement for bids for con- struction of said improvements was published in the official newspaper of the City on April 25, 1973 and May 2, 1973, calling for bids to be received on May 16, 1973, on which date the bids therefore received were opened and examined. After referring the bids to the engineers for the City it was determined that the lowest regular proposal for the furnishing of all work and materials required for construction of said improvements in accordance with approved plans and specifications was the proposal submitted by Long Construction Company of Billings, Montana, whose bid specified unit prices for Schedule I and Schedule II in the total amount of $59,615.70, based upon quantit~es of work and materials estimated in the plans and specifications. A contract for construction of said improvements was therefore awarded to said bidder, subject to the right of owners of property liable to be assessed to elect to take the work and enter into a written contract therefor in the manner provided by Section 11-2210, which election the property owners failed to make, whereupon the City and said bidder entered into a written contract for construction of said inprovements upon the bidder having executed and filed a satisfactory bond with respect thereto. 1.05 It is presently estimated that the cost and expense connected with and incidental to the formation of said improvement district, including costs of preparation of plans, specifi- cations, maps profiles, engineering superintendence and inspection, preparation of assessment rolls, expenses of making the assessments, the cost of work and materials under the construction contract, and all other costs and expenses, will be $67,000.00, and this Commission has juris- diction and is required by law to levy and assess sueD total cost upon all property within the improvement district on the basis described in said resolution of intention, to collect such special assessments and credit the same to the special improvement district fund created for said district, which fund is to be maintained on the official books and records of the City separate from all other City funds, to be used solely for payment of interest when due on the bonds herein authorized and for redemption of such bonds in order of their registration whenever and as often as the balance in said fund after payment of interest due is sufficient for the purpose. I 1.06 For the purpose of paying the total cost and expense of making the improvements, which is to be assessed against the property within the district, this Commission called for the sale of bonds in the principal amount of $67,000.00. Notice of the sale of bonds was published once in each of the four successive calendar weeks immediately preceding the week which contained the date of sale thereof, in a newspaper of general circulation printed and published in the City, and at the time and place specified in said notice, said bonds were sold to the highest and best bidders for cash, at not less than the face value of such bonds, together with accrued interest thereon. The purchaser of said bonds has now specified a coupon interest rate for the bonds, resulting in a net interest rate not exceeding the rate specified in the contract of sale, computed to the respective dates upon which installments of the special assessments for the improvements areto become due and payable and available for redemption of bonds. The sale of said bonds upon COMMISSION RESOLUTION NO. 1580 ....-.- ..-..-.-.--.... 474 the terms specified in the notices of sale and as hereinafter provided, is hereby approved, ratified and confirmed. 1.07 All acts, conditions and things required by the Constitution and laws of the State of Montana, including Title 11, Chapter 22, Revised Codes of Montana 1947, as amended, in order to made the bonds herein authorized valid and binding special obligations in accordance with their terms and in accordance with the terms of this resolution have been done, do exist, have happened and have been performed in regular and due form, time and manner as so required. Section 2. Special Improvement District No. 520 Bonds. For the purpose of I paying the costs and expenses incurred and to be incurred in construction of the improvements authorized to be constructed in Special Improvement District No. 520, and in anticipation of collection of special assessments to be levied therefor, and in accordance with the public offering and contract of sale described in paragraph 1.06 hereof, the City of Bozeman shall forthwith issue and deliver to the purchaser its Special Improvement District No. 520 Bonds in the total principal amount of $67,000.00, payable solely from the Special Improvement District No. 520 Fund. The bonds shall be dated as of July 1, 1973, and shall mature on January 1, 1992. The Bonds shall be 67 in number and numbered serially in order of their registration as provided below, from 1 through 67, each in the denomination of $1,000. The bonds shall be payable to bearer, and shall bear interest from their date of registration until called for redemption or paid in full at the annual rate of 6.10% per annum, payable on the 1st day of January of each year, represented by coupons appurtenant to each bond. Section 3. Payment of Principal and Interest. The principal of and interest on the bonds shall be payable at the office of the Director of Finance of the City. The interest shall be paid by the Director of Finance from the Special Improvement District No. 520 Fund on presentation of the coupons belonging thereto when due, and any balance remaining in the fund shall be applied to the payment of the principal and the redemption of the bonds in the order of their registration as evidenced by their serial numbers. Whenever there is any balance in the fund after paying the interest due on all bonds drawn against it, the Director of Finance shall call in for payment outstanding bonds in an amount which, together with the interest thereon to the date ofr-edemption, will equal the amount of the fund on that date. The date of redemption shall be fixed by the Director of Finance, who shall give notice by publication once in a news- paper published in the City, or, at the option of the Director of Finance, by written notice to the holder or holders, of such bonds if their address by known, of the numbers of the bonds and the date on which payment will be made, which date shall be not less than ten days after the date of publication or of service of notice. On the date so fixed interest shall cease. Section 4. Form of Bonds. The bonds and the interest coupons appurtenant thereto shall be drawn in substantially the form set forth in R.C.M. 11-2231. Section 5. Execution. Registration and Delivery of Bonds. The bonds shall be I prepared under the direction of the Clerk of the City Commission and shall then be signed by the Mayor and the Clerk of the City Commission, and the interest coupons appurtenant thereto shall be executed and authenticated by the printed, lithographed or engraved facsimile signatures of the Mayor and Clerk. The bonds and coupons of each issue shall then be registered in order of their serial numbers by the Director of Finance, as of the 1st day of January, 1974, and shall be delivered by the Director of Finance to the purchasers upon payment of the par value thereof plus accrued interest from the registration date to the date of such delivery and payment. The pur- chasers shall not be obligated to see to the application of the purchase price, but the proceeds of the bonds shall be credited by the Director of Finance forthwith to the Special Improvement District No. 520 Fund, and used solely for the payment of the cost and expenses necessarily incurred in the completion of the improvements heretofore ordered, except that the accrued interst received shall be applied in payment of interest on the bonds when due. Section 6. Special Improvement District No. 520 Fund. 6.01 There is hereby created an established a fund designated as "Special Improvement District No. 520 Fund", which shall be maintained by the Director of Finance of the City on the books and records of the City separate and apart from all other funds of the City. Within said Fund there shall be maintained separate accounts, designated as the "Bond Acc01mt" and "Interest Account", respectively. Upon the collection of the installment of principal and interest due on November 30 of each year on the special assessments to be levied with respect to the improve- ments in said District, the Director of Finance sha.ll credit to the Interest Account in the District Fund so much of said special assessments as is collected as principal payment. Any installment of any special assessment paid prior to its due date with interest accrued thereon to the nearest bond call date shall be credited with respect to principal and interest payments the same as other assessments are credited to the district fund. All moneys in the interest account and the bond account shall be used first to pay interest due, and any remaining moneys shall be used to pay bonds. Redemption of bonds therefrom shall be in order of their registration numbers, and interest shall be paid as accrued thereon to the date of redemption, in accordance with the provisions of Section 11-2231, Revised Codes of Montana 1947. 6.02 The Commission shall annually or more often if necessary issue an order authorizing a I loan or advance from the Special Improvement District Revolving Fund to said District Fund in an amopnt sufficient to make good any deficiency then existing in the Interest Account in said District Fund, and shall issue an order authorizing a loa.n or advance from the Revolving Fund to the District Fund in an amount sufficient to make good any deficiency then existing in the Bond Account of said District Fund to the extent that moneys are available in the Revolving Fund. Pursuant to Ordinance No. 612 the City has undertaken and agreed to provide funds for the Revolving Fund by levying such tax or making such loan from the General Fund as authorized by Section 11-22, Revised Codes of Montana. In the event that the balance on hand in the Revolving Fund fifteen days prior to any date when interest is due on special improvement district bonds of the City is not sufficient to make good all deficiencies then existing in the improvement district fund for which COMMISSION RESOLUTION NO. 1580 ..- ....-----.--...-.- -..---. 475 the City has promised to make loans from the Revolving Fund, the balance on hand in the Revolving Fund shall be allocated to the funds of the improvement district in which such deficiencies then exist in proportion to the amounts of the respective deficiencies on that date. Any money sub- sequently received in the Revolving Fund shall be allocated to the district fund in which de- ficiencies exist in proportion to the amounts of the deficiencies on the respective dates of receipt of such money, until all interest accrued on such special improvement district bonds of the City has been paid. On any date when all accrued interest on improvement district bonds of the City payable from funds for which the City has promised to make loans from the Revolving Fund has been paid, any balance remaining in the Revolving Fund shall be loaned or advanced to I the improvement district fund for payment and redemption of bonds to the extent the improvement district fund is deficient for such purpose, in an amount proportionate to the amount of such deficiency,. A deficiency shall be deemed to exist in the Bond Account of the Special Improvement District No. 520 Fund on any date on which interest is due on bonds payable therefrom unless the City has then or theretofore redeemed bonds in a principal amount equal to the sum of all install- ments of special assessments paid prior to their due dates plus a fraction of the remaining principal amount of the special assessments originally levied and appropriated to said improvement District Fund equal to the number of installments of such assessments then and theretofore due divided by the total number of installments in which such special assessments are permitted to be paid. Section 7. Covenants. The City of Bozeman covenants and agrees with the holder from time to time of each of the bonds issued pursuant to this resolution that until all such bonds and interest thereon are fully paid: 7.01 The City will hold the Special Improvement District No. 520 Fund and the Special Im- provement District Revolving Fund described above as trust funds, separate and apart from all of its other funds, and that the City, it officers and agents, will comply with all covenants and agreements contained in this resolution. The provisions hereinabove made with respect to the Improvement District Fund and Revolving Fund are in accordance with the undertaking and agreement of the City made in connection with the public offering of the bonds herein authorized. 7.02 The City will do all acts and things necessary to enforce the provisions of the construction contracts and bonds referred to in paragraph 1.04 and to assure the completion of the improvements in Special Improvement District No. 520 in accordance with the plans and specifications and within the time therein provided, and will pay all costs thereof promptly as incurred and allowed, out of the Special Improvement District Fund and within the amount of the bond proceeds appropriated thereto. 7.03 The City will do all acts and things necessary for the final and valid leyY of special assessments upon all property within the boundaries of Special Improvement District No. 520 in I accordance with the constitution and laws of the State of Montana and the Constitution of the United States, in an aggregate principal amount not less than $67,000. Such special assessments shall be levied in accordance with the basis therefor prescribed in the resolution of intention described above, payable in annual installments over a period of nineteen years, each annual in- stallment being due in an amount equal to one-nineteenth of the principal amount of each assessment, with interest on the whole amount remaining unpaid at the rate of 6.10% per annum, interest being payable with interest installments. The assessments to be levied will be payable on the 30th day of November in each of the years 1973 through 1991, inclusive, if not theretofore paid, and shall become delinquent on that date unless paid in full. The first partial payment of each assessment shall include interest on the entire assessment from the date of registration of the bonds herein authorized to January 1, 1974, and each subsequent partial payment shall include interest from one year on that payment and the then remaining balance of the special assessment. The assessments shall constitute a lien upon and against the property against which they are made and levied, which lien may only be extinguished for payment of the assessment with all penalties, cost and interest as provided in Section 11-2229, Revised Codes of Montana 1947. No tax deed issued with respect to any lot or parcel of land shall operate as payment of any install- ment of the assessment thereon which is payable after the execution of such deed, and any tax deed so issued shall convey title subject only to the lien of said future installments, as provided in Section 84-4170, Revised Codes of Montana 1947. 7.04 If at any time and for whatever reason any special assessment or tax herein agreed to be levied is held invalid, the City and this Commission, its officers and employees, will take all steps necessary to correct the same and to re-assess and levy the same, including the ordering of work, with the same force and effect as if made at the time provided by law, ordinance or resolution relating thereto, and will re-assess and re-levy the same with the same force and effect as an original levy thereof, as authorized in Section 11-2238, Revised Codes of Montana 1947. Any special assessment, or re-assessment or re-levy shall, so far as practicable, be levied and collected as it would have been if the first levy had been enforced, including the levy and collection of any interest accrued on the first levy. 7.05 There is now no litigation threatened or pending questioning the validity or re- gularity of the creation of Special Improvement District No. 520, the contracts for construction I of improvements therein or the undertaking and agreement of the City to levy special assessments therefor and to make good any deficiency in the collection thereof through the levy of taxes for and the making of advances from the Special Improvement District Revolving Fund, or the right and power of the City to issue the bonds herein authorized, or in any manner questioning the existence of any condition precedent to the exercise of the City's powers in these matters. If any such litigation should be initiated or threatened, the City will forthwith notify in writing the original purchasers of the bonds herein authorized and will furnish the purchasers with a copy of all documents, including pleadings, in connection with such litigation. 7.06 Arbitrage. The City will make no use of the proceeds of bonds issued hereunder which, COMMISSION RESOLUTION NO. 1580 --- 476 if such use had been reasonably expected on the date of issue thereof, would have caused them to be arbitrage bonds under the provisions of Section 103 (d) of the United States Internal Revenue Code. Section 8. Authentication of Transcript. The City officers are hereby authorized and directed to furnish to the purchaser of said bonds, and to the attorneys approving legality thereof, certified copies of all proceedings relating to the issuance of said bonds and such other certificates and affidavits as may be required to show the right, power and authority of the City to issue said bonds, and all statements contained in and shown by such instruments, I including any heretofore furnished, shall constitute representations of the City as to the truth of the statements purported to be shown thereby. Section 9. Effective Date. This resolution shall be in full force and effect from and after its passage and approval. Passed and adopted by the City Commission of the City of Bozeman, Montana, this 23rd day of May, 1973, and approved by the Mayor of said City of Bozeman this 23rd day of May, 1973. Mayor ATTEST: ssion State of 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. 1580 was published by title and number in the Bozeman Daily Chronicle, a newspaper of general circulation printed and published in Bozeman in the issue of the 29th day of May, 1973, and due proof of such publication is on file in my office. I IN WITNESS WHEREOF, I hereunto set my hand and affix the corporate seal of my office this 30th day of May, 1973. (-_: . k~L' 'f.~. /-Plfl:'- -... -. d?C--r. ""<"-/^"--/ Erna V. Harding /" Clerk of the City Commission I COMMISSION RESOLUTION NO. 1580 ..___._ ,..._..... __...u. .___.___._.....___..'''.. _.._n._ .. -...-.-.---. --------