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HomeMy WebLinkAboutResolution 4545 Calling for Election of GO Bond for Rouse Justice Center a a r��oo.tda CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE 1, the undersigned,being the duly qualified and appointed City Clerk of the City of Bozeman, Montana(the "City"), hereby certify that the attached resolution is a true copy of a Resolution entitled: "A RESOLUTION OF THE CITY COMMISSION SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF BOZEMAN,MONTANA,THE QUESTIONS OF(I)ISSUING GENERAL OBLIGATION BONDS IN THE AMOUNT OF UP TO TWENTY-THREE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($23,800,000.00) FOR THE PURPOSE OF PAYING THE COSTS OF DESIGNING, CONSTRUCTING, EQUIPPING AND FURNISHING ON LAND AT THE CORNER OF EAST OAK STREET AND NORTH ROUSE AVENUE OR OTHER SUITABLE LOCATION A NEW FACILITY TO HOUSE THE BOZEMAN POLICE DEPARTMENT, THE BOZEMAN MUNICIPAL COURTS,AND OTHER JUSTICE SERVICES AND FOR PAYING COSTS RELATED TO ASSOCIATED SITE IMPROVEMENTS AND COSTS ASSOCIATED WITH THE SALE AND ISSUANCE OF THE BONDS; AND (II) PERMANENTLY INCREASING MILL LEVIES OF THE CITY TO PAY THE COSTS OF OPERATING,MAINTAINING,AND REPAIRING SUCH FACILITY (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 at a regular meeting on July 28, 2014, 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notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed.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 mee 'ng,the following Commission Members vote in favor thereof 0. those Commi ione ho vote p, against the same: iY10 _ WITNESS my hand and seal officially this day of July, 2014. AL) l •° _K:� ' `y - Stac Ul en CMC Bozeman Cify Clerk n Y < M • RESOLUTION NO. 4545 A RESOLUTION OF THE CITY COMMISSION SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF BOZEMAN, MONTANA, THE QUESTIONS OF (I) ISSUING GENERAL OBLIGATION BONDS IN THE AMOUNT OF UP TO TWENTY-THREE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($23,800,000.00) FOR THE PURPOSE OF PAYING THE COSTS OF DESIGNING, CONSTRUCTING, EQUIPPING AND FURNISHING ON LAND AT THE CORNER OF EAST OAK STREET AND NORTH ROUSE AVENUE OR OTHER SUITABLE LOCATION A NEW FACILITY TO HOUSE THE BOZEMAN POLICE DEPARTMENT, THE BOZEMAN MUNICIPAL COURTS, AND OTHER JUSTICE SERVICES AND FOR PAYING COSTS RELATED TO ASSOCIATED SITE IMPROVEMENTS AND COSTS ASSOCIATED WITH THE SALE AND ISSUANCE OF THE BONDS; AND (11) PERMANENTLY INCREASING MILL LEVIES OF THE CITY TO PAY THE COSTS OF OPERATING, MAINTAINING, AND REPAIRING SUCH FACILITY BE IT RESOLVED by the City Commission (the "Commission") of the City of Bozeman,Montana (the "City") as follows: Section 1. Recitals. 1.01. Authorization. A city is authorized pursuant to Section 7-7-4221, Montana Code Annotated, to issue general obligation bonds pledging the general credit of the city for the purpose of designing, constructing and equipping public buildings, upon approval of the electorate of the city, provided that such indebtedness will not cause the total indebtedness of the city to exceed 2.5% of the total assessed value of taxable property of the city, determined as provided in Section 15-8-111, Montana Code Annotated, ascertained by the last assessment for State and county taxes. A city council or commission is authorized pursuant to Section 7-7- 4223, Montana Code Annotated, to call a bond election by adopting a resolution to that effect. A city council or commission is authorized pursuant to Section 15-10-425, Montana Code Annotated, to increase its mill levies for a specific purpose by conducting a mill levy election as prescribed by law. 1.02. Proposed Project. The Commission determines there should be submitted to the electors of the City qualified to vote at bond elections the question of whether the Commission shall be authorized to sell and issue bonds of the City in one or more series to obtain funds for the purpose of paying the costs of designing, constructing, equipping and furnishing on land at the corner of East Oak Street and North Rouse Avenue or other suitable location a new facility to house the Bozeman Police Department, the Bozeman Municipal Courts, and other justice services and for paying costs related to associated site improvements (such facility and improvements, the "Facility") and costs associated with the sale and issuance of the bonds, which bonds shall bear interest at rates to be determined at the time of sale, payable semiannually over a term not to exceed twenty years for each series of bonds. The Commission has also determined there should be submitted to the electors of the City qualified to vote at mill levy elections the question of whether the Commission shall be authorized to increase the annual mill levy to pay the costs of operating, maintaining, and repairing the Facility. 1.03. Debt Limitation. The Commission has determined that the issuance of general obligation bonds up to the total principal amount of Twenty-Three Million Eight Hundred Thousand and No/100 Dollars ($23,800,000.00) will not cause the City to exceed its general obligation indebtedness limitation, which is currently calculated to be$84,657,390. 1.04. Election. The Commission has determined there should be submitted to the electors of the City qualified to vote at bond elections the question of whether the Commission shall be authorized to issue and sell general obligation bonds of the City to obtain funds for the purpose described in the ballot question. 1.05. Bonds. It is the judgment of the Commission that the total principal amount of up to Twenty-Three Million Eight Hundred Thousand and No/100 Dollars ($23,800,000.00) in general obligation bonds will be necessary to carry out the purpose set forth above. It is also the judgment and determination of the Commission that such general obligation bonds may be issued in multiple series, each series payable during a term not to exceed twenty(20) years. 1.06. Mill Levy. The City Commission has determined that in conjunction with the above bond proposition it is in the best interests of the City to seek authority for a permanent mill Ievy increase to pay a portion of the costs of operating,maintaining, and repairing the facility and related improvements described above by presenting to the voters a mill levy question set forth below. If the mill levy question described below passes, the City will create a separate fund or account for such mill levy, deposit therein the mill levy receipts attributable to such mill levy, and apply such receipts to pay the costs described in the mill levy question. Section 2. Calling of the Election. The City Commission hereby calls and directs that a special City election be held in conjunction with the general election on November 4, 2014, for the purpose of voting on the following questions: Shall the City Commission of the City of Bozeman,Montana(the"City") be authorized to sell and issue general obligation bonds of the City in one or more series in an aggregate principal amount not to exceed Twenty-Three Million Eight Hundred Thousand and No/100 Dollars ($23,800,000.00) bearing interest at rates to be determined at the time of sale,payable semiannually over a term not to exceed twenty years for each series of bonds, for the purpose of paying the costs of designing, constructing, equipping and furnishing on land at the corner of East Oak Street and North Rouse Avenue or other suitable location a new facility to house the Bozeman Police Department, the Bozeman Municipal Courts, and other justice services and for paying costs related to associated site improvements and costs associated with the sale and issuance of the bonds? 2 If this bond proposition is passed, it is estimated that, using current assessed values of taxable property in the City, for a 20-year bond issued in the full authorized principal amount, and bearing interest at an estimated average annual interest rate of 4.25%, property taxes on a home with a current assessed value of $275,000,the current median value in Bozeman,will increase by approximately $71.89 per year. The City Commission has determined that in conjunction with the bond proposition it is in the best interests of the City to seek authority for a permanent mill levy increase to pay a portion of the costs of operating,maintaining, and repairing the facility and related improvements described above by presenting to the voters the following question: Shall the City Commission of the City of Bozeman,Montana be authorized to permanently levy up to 5 mills per year, currently raising approximately $445,000, for the purpose of paying a portion of the costs of operating, maintaining, and repairing a new facility to house the Bozeman Police Department, the Bozeman Municipal Courts and other justice services? If this mill levy proposition is passed, it is estimated that, using current assessed values of taxable property,property taxes on a home valued at $100,000 will increase by approximately $6.54 per year, on a home valued at$200,000 will increase by approximately $13.08 per year, and on a home valued at $275,000, the median home value in Bozeman, will increase by approximately$17.99 per year. If the bond proposition passes and the mill levy proposition fails,the City may,in its discretion, proceed with issuing the bonds for the purpose described in the bond proposition. If the bond proposition fails and the mill levy proposition passes,the City will refrain from proceeding with the mill levy. Section 3. Conduct of Election. All qualified electors of the City shall be entitled to vote at the bond election and mill levy election. The City Clerk is hereby authorized and directed to give notice of the call and details of this election to the Gallatin County Election Administrator as soon as practicable and in any event on or the before the date required by the Gallatin County Election Administrator. The Gallatin County Election Administrator is requested to give notice of the close of registration and thereafter prepare printed lists of the qualified electors in the City entitled to vote in the election in the City and to conduct the election in the form and manner prescribed by law. Section 4. Notice of Election. The City Clerk is hereby authorized and requested to cause notice of the call and holding of the election to be given by publishing notice at least once a week for the three consecutive weeks before the election in the Bozeman Daily Chronicle,a newspaper of general circulation in Gallatin County. The notice of election as published shall read substantially as shown on Exhibit A hereto (which is incorporated by reference and made a part hereof). Section 5. Form of Ballot. The ballot shall be printed in substantially the following form: OFFICIAL BALLOT CITY OF BOZEMAN, MONTANA ROUSE JUSTICE CENTER GENERAL OBLIGATION BOND ELECTION NOVEMBER 4, 2014 INSTRUCTIONS TO VOTERS: Make an X or similar mark in the vacant square before the words "BONDS--YES" if you wish to vote for the bond issue; if you are opposed to the bond issue, make an X or similar mark in the square before the words"BONDS--NO". Shall the City Commission of the City of Bozeman, Montana(the "City") be authorized to sell and issue general obligation bonds of the City in one or more series in an aggregate principal amount not to exceed Twenty-Three Million Eight Hundred Thousand and No/100 Dollars ($23,800,000.00)bearing interest at rates to be determined at the time of sale, payable semiannually over a term not to exceed twenty years for each series of bonds, for the purpose of paying the costs of designing, constructing, equipping and furnishing on land at the corner of East Oak Street and North Rouse Avenue or other suitable location a new facility to house the Bozeman Police Department, the Bozeman Municipal Courts, and other justice services and for paying costs related to associated site improvements and costs associated with the sale and issuance of the bonds? If this bond proposition is passed,it is estimated that,using current assessed values of taxable property in the City, for a 20-year bond issued in the full authorized principal amount, and bearing interest at an estimated average annual interest rate of 4.25%, property taxes on a home with a current assessed value of $275,000, the current median value in Bozeman, will increase by approximately $71.89 per year. BONDS — YES BONDS — NO 4 OFFICIAL BALLOT CITY OF BOZEMAN, MONTANA ROUSE JUSTICE CENTER MILL LEVY ELECTION NOVEMBER 4, 2014 INSTRUCTIONS TO VOTERS: Make an X or similar mark in the vacant square before the words "MILL LEVY--YES" if you wish to vote for the mill levy; if you are opposed to the mill levy, make an X or similar mark in the square before the words "MILL LEVY--NO". Shall the City Commission of the City of Bozeman,Montana be authorized to permanently levy up to 5 mills per year, currently raising approximately $445,000, for the purpose of paying a portion of the costs of operating, maintaining, and repairing a new facility to house the Bozeman Police Department,the Bozeman Municipal Courts, and other justice services? If this mill levy proposition is passed, it is estimated that,using current assessed values of taxable property,property taxes on a home valued at$100,000 will increase by approximately$6.54 per year, on a home valued at $200,000 will increase by approximately$13.08 per year, and on a home valued at $275,000, the median home value in Bozeman, will increase by approximately$17.99 per year. ❑ MILL LEVY YES MILL LEVY —NO 5 Section 6. Notice to County Election Administrator. A copy of this Resolution will be provided to the Gallatin County Election Administrator as soon as possible after its adoption and approval in order to inform the Election Administrator of the details of the special election and the pertinent requests and authorizations as to the conduct of the special election. 7. Reimbursement Expenditures. (a) The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the"small issuer" exception from the arbitrage rebate requirement) after the later of(i) the date the expenditure is paid or(ii)the date the project is placed in service or abandoned, but(unless the issue qualifies for the "small issuer" exception from the arbitrage rebate requirement) in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. (b) Other than (i) expenditures to be paid or reimbursed from sources other than the bonds, (ii) expenditures permitted to be reimbursed under the transitional provision contained in Section 1.150-20)(2) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.1 50-2(f)(2) of the Regulations, or(iv) expenditures in a "de minimus" amount(as defined in Section 1.1 50-2(f)(1) of the Regulations),no expenditures for a project within the scope of this resolution have been paid by the City before the date 60 days before the date of adoption of this resolution. (c) The City reasonably expects to reimburse the expenditures made for costs of such a project out of the proceeds of bonds in an estimated maximum aggregate principal amount of up to Twenty-Three Million Eight Hundred Thousand and No/100 Dollars ($23,800,000.00) after the date of payment of all or a portion of the costs of such a project. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the bonds or other expenditures eligible for reimbursement under Section 1.1 50-2(d)(3) of the Regulations. (d) As of the date hereof,there are no City funds reserved, allocated on a long- term basis or otherwise set aside(or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the expenditures related to such a project, other than pursuant to the issuance of the bonds. The statement of intent contained in this resolution,therefore,is determined to be consistent with the City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. (e)The City's Administrative Services Director shall be responsible for making the "reimbursement allocations"described in the Regulations,being generally the 6 transfer of the appropriate amount of proceeds of the bonds to reimburse the source of temporary financing used by the City to make prior payment of the costs of the project. Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the bonds or the project and shall specifically identify the actual original expenditure being reimbursed. PASSED by the City Commission of Bozeman, Montana,this 28th day of July, 2014. CITY OF BOZEMAN, MONTANA J f s ,M or 0" / 4 .0 r tag n, CMC, City Clerk '41 jN CO, Appr aed as t f g 11 van, City Attorney 7 EXHIBIT A NOTICE OF GENERAL OBLIGATION BOND ELECTION AND ASSOCIATED MILL LEVY ELECTION City of Bozeman, Montana November 4, 2014 NOTICE IS HEREBY GIVEN by the City Commission (the "Commission") of the City of Bozeman, Montana(the "City"),that pursuant to a certain resolution duly adopted at a regular meeting of the Commission on July 28, 2014, a special city election of the registered voters of the City will be held in conjunction with the general election on November 4, 2014, for the purpose of voting on the following question: Shall the City Commission of the City of Bozeman, Montana (the "City") be authorized to sell and issue general obligation bonds of the City in one or more series in an aggregate principal amount not to exceed Twenty-Three Million Eight Hundred Thousand and No/100 Dollars ($23,800,000.00) bearing interest at rates to be determined at the time of sale, payable semiannually over a term not to exceed twenty years for each series of bonds, for the purpose of paying the costs of designing, constructing, equipping and furnishing on land at the corner of East Oak Street and North Rouse Avenue or other suitable location a new facility to house the Bozeman Police Department, the Bozeman Municipal Courts, and other justice services and for paying costs related to associated site improvements and costs associated with the sale and issuance of the bonds? If this bond proposition is passed, it is estimated that, using current assessed values of taxable property in the City, for a 20-year bond issued in the full authorized principal amount, and bearing interest at an estimated average annual interest rate of 4.25%, property taxes on a home with a current assessed value of $275,000, the current median value in Bozeman, will increase by approximately $71.89 per year. The City Commission has determined that in conjunction with the bond proposition it is in the best interests of the City to seek authority for a mill levy to pay the costs of operating,maintaining, and repairing the facility and related improvements described above by presenting to the voters the following question: Shall the City Commission of the City of Bozeman, Montana be authorized to permanently levy up to 5 mills per year, currently raising approximately $445,000, for the purpose of paying a portion of the costs of operating, maintaining, and repairing a new facility to house the Bozeman Police Department, the Bozeman Municipal Courts, and other justice services? If this mill levy proposition is passed, it is estimated that,using current assessed values of taxable property, property taxes on a home valued at$100,000 will A-1 increase by approximately $6.54 per year, on a home valued at $200,000 will increase by approximately $13.08 per year, and on a home valued at $275,000, the median home value in Bozeman, will increase by approximately$17.99 per year. If the bond proposition passes and the mill levy proposition fails, the City may, in its discretion,proceed with issuing the bonds for the purpose described in the bond proposition. If the bond proposition fails and the mill levy proposition passes,the City will refrain from proceeding with the mill levy. The polls will be open between the hours of 7:00 a.m, and 8:00 p.m., and the polling places for the election will be the normal polling places for City residents during a general election. Beginning October 6,2014, absentee ballots may be obtained at the office of the Gallatin County Election Administrator at Gallatin County Courthouse, 311 West Main, Gallatin, Montana,until 12:00 noon, November 3, 2014. DATED this day of , 2014. Gallatin County Election Administrator Publish: October 12, 2014 October 19, 2014 October 26, 2014 A-2