HomeMy WebLinkAboutResolution 5316 Submitting the Question of Issuing General Obligation Bonds for the Purpose of Paying the Cost of Fire Station 2, Improvements to Swim Center and Bogert Pool, and Lindley Center
RESOLUTION 5316
A RESOLUTION OF THE CITY COMMISSION SUBMITTING TO THE QUALIFIED
ELECTORS OF THE CITY OF BOZEMAN, MONTANA, THE QUESTION OF ISSUING GENERAL OBLIGATION BONDS FOR THE PURPOSE OF PAYING THE COSTS OF DESIGNING, CONSTRUCTING, EQUIPPING AND FURNISHING A NEW FIRE STATION 2; AND THE QUESTION OF ISSUING GENERAL OBLIGATION BONDS FOR THE PURPOSE OF PAYING THE COSTS OF DESIGNING, CONSTRUCTING,
EQUIPPING AND FURNISHING IMPROVEMENTS TO THE BOZEMAN SWIM CENTER; THE BOGERT POOL; AND THE LINDLEY CENTER; AND COSTS ASSOCIATED WITH THE SALE AND ISSUANCE OF EACH SERIES OF BONDS
BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman,
Montana (the “City”) as follows:
Section 1
Recitals. It is hereby found, determined and declared as follows:
1.01. Authorization. The City is authorized pursuant to Section 7-7-4221, Montana Code
Annotated, upon approval of the electorate of the City, to issue general obligation bonds pledging
the general credit of the City for any purpose authorized by law, 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. The Commission is
authorized pursuant to Section 7-7-4223, Montana Code Annotated, to call a bond election by
adopting a resolution to that effect.
1.02. Proposed Fire Station 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 general obligation bonds of the City in the total
principal amount of up to $6,730,000.00 for the purpose of paying the costs of designing,
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constructing, equipping and furnishing a new Fire Station 2 to better position resources to serve
growth in the southwestern areas of the City 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, and subject to
redemption as required by law.
1.03. Proposed Recreation Facilities Improvement Projects. 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 general obligation bonds of the
City in the total principal amount of up to $2,280,000.00 for the purpose of paying the costs of
designing, constructing, equipping and furnishing improvements to the Bozeman Swim Center;
the Bogert Pool; and the Lindley Center 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, and subject to
redemption as required by law.
1.04. Debt Limitation. The Commission has determined that the issuance of general
obligation bonds up to the total principal amount of Nine Million Ten Thousand and No/100
Dollars ($9,010,000.00) together with the outstanding principal amounts of all other general
obligation indebtedness of the City will not cause the City to exceed its general obligation
indebtedness limitation, which is currently calculated to be $221,682,901 (i.e., 2.50% x
$8,867,316,046).
1.05. Elections. The Commission has determined there should be submitted to the electors
of the City qualified to vote at bond elections two bond election questions, one regarding whether
the Commission shall be authorized to sell and issue general obligation bonds of the City to obtain
funds to pay the costs of Fire Station 2 and the other regarding whether the Commission shall be
authorized to sell and issue general obligation bonds of the City to obtain funds to pay the costs of
improving the Bozeman Swim Center, the Bogert Pool, and the Lindley Center.
1.06. Bonds. It is the judgment of the Commission that the total principal amount of up
to Six Million Seven Hundred Thirty Thousand and No/100 Dollars ($6,730,000.00) in general
obligation bonds will be necessary to carry out the purpose set forth Section 1.02 above and that
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the total principal amount of up to Two Million Two Hundred Eighty Thousand and No/100
Dollars ($2,280,000.00) in general obligation bonds will be necessary to carry out the purpose set
forth Section 1.03 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 and subject to redemption as provided by law.
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 2, 2021, for the purpose of voting
on the following questions:
Question 1: Proposed Fire Station Project
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 Six Million Seven Hundred
Thirty Thousand and No/100 Dollars ($6,730,000.00) 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 a new Fire Station 2 on a site
located on the Montana State University campus to be leased by MSU to the City
or other suitable location in the City; and costs associated with the sale and issuance
of the bonds?
Question 2: Proposed Recreation Facilities Improvement Projects
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 Two Million Two Hundred
Eighty Thousand and No/100 Dollars ($2,280,000.00) 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 improvements to: the Bozeman
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Swim Center to include replacing perimeter drain tiles (gutter system), deck tiles,
and ceiling tiles, repairing the plaster shell, and replacing the HVAC system; the
Bogert Pool to include replacing the concrete coping around the pool and the
concrete gutter system, re-plastering the shell, repairing the concrete deck, and
replacing the perimeter wall/fence; and the Lindley Center to include upgrading
restrooms to meet current Americans with Disabilities Act requirements, replacing
windows and log siding, upgrading the kitchen, insulating the east roof, installing
floor and roof supports, improving the parking lot and related site improvements;
and costs associated with the sale and issuance of the bonds?
Section 3
Conduct of Elections. All qualified electors of the City shall be entitled to vote at the bond
elections. The City Clerk is hereby authorized and directed to give notice of the call and details
of the elections 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 elections
in the City and to conduct the elections in the form and manner prescribed by law.
Section 4
Notice of Elections. The City Clerk or the Gallatin County Election Administrator, as
appropriate, is hereby authorized and requested to cause notice of the call and holding of the
elections to be given by publishing notice at least three times no earlier than 40 days and no later
than 10 days before each election in the Bozeman Daily Chronicle, a newspaper of general
circulation in Gallatin County. The notice of elections as published shall read substantially as
shown on Exhibit A hereto (which is incorporated by reference and made a part hereof), with
such additions or deletions as are determined necessary or desirable.
Section 5
Forms of Ballots. The ballots shall be printed in substantially the following forms, with such
additions or deletions as are determined necessary or desirable:
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OFFICIAL BALLOT
CITY OF BOZEMAN, MONTANA
GENERAL OBLIGATION BOND ELECTION FIRE STATION 2 PROJECT
NOVEMBER 2, 2021
INSTRUCTIONS TO VOTERS: Completely fill in the oval using a blue or black ink pen before the words “FIRE STATION 2 BONDS —YES” if you wish to vote for the bond issue; if you are opposed to the bond issue, completely fill in the oval using a blue or black ink pen before the words “FIRE STATION 2 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 Six Million Seven Hundred Thirty Thousand and No/100 Dollars ($6,730,000.00) 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 a new Fire Station 2 on a site located on the Montana State University campus to be leased by MSU to the City or other suitable location in the City; and costs associated with the sale and issuance of the bonds?
FIRE STATION 2 BONDS – YES
FIRE STATION 2 BONDS – NO
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OFFICIAL BALLOT
CITY OF BOZEMAN, MONTANA
GENERAL OBLIGATION BOND ELECTION RECREATION FACILITIES IMPROVEMENT PROJECTS
NOVEMBER 2, 2021
INSTRUCTIONS TO VOTERS: Completely fill in the oval using a blue or black ink pen before the words “RECREATION FACILITIES IMPROVEMENT BONDS —YES” if you wish to vote for the bond issue; if you are opposed to the bond issue, completely fill in the oval using a blue or black ink pen before the words “RECREATION FACILITIES IMPROVEMENT 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 Two Million Two Hundred Eighty Thousand and No/100 Dollars ($2,280,000.00) 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 improvements to: the Bozeman Swim Center to include replacing perimeter drain tiles (gutter system), deck tiles, and ceiling tiles, repairing the plaster shell, and replacing the HVAC system; the
Bogert Pool to include replacing the concrete coping around the pool and the concrete gutter system, re-plastering the shell, repairing the concrete deck, and replacing the perimeter wall/fence; and the Lindley Center to include upgrading restrooms to meet current Americans with Disabilities Act requirements, replacing windows and log siding, upgrading the kitchen, insulating the east roof,
installing floor and roof supports, improving the parking lot and related site improvements; and costs associated with the sale and issuance of the bonds?
RECREATION FACILITIES IMPROVEMENT BONDS – YES
RECREATION FACILITIES IMPROVEMENT BONDS – NO
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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.
Section 7
Reimbursement Expenditures.
(a) For purposes of this Section 7, “project” means the Fire Station 2 Project set forth in
the first ballot above and/or the Recreation Facilities Improvement Projects set forth in the second
ballot above. 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
1.150-2(j)(2) of the Regulations, (iii) expenditures constituting preliminary expenditures within
the meaning of Section 1.150-2(f)(2) of the Regulations, or (iv) expenditures in a “de minimus”
amount (as defined in Section 1.150-2(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.
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(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 $9,010,000 ($6,730,000 with respect to the Fire Station Project and $2,280,000 with respect to
the Recreation Facilities Improvement Projects) 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 1.150-2(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 City Finance Director shall be responsible for making the “reimbursement
allocations” described in the Regulations, being generally the 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.
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PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, this 13th day of July, 2021.
____________________________________ CYNTHIA L. ANDRUS Mayor
ATTEST:
___________________________________ MIKE MAAS City Clerk
APPROVED AS TO FORM:
___________________________________ GREG SULLIVAN City Attorney
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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, 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
Resolution No. ____ entitled: “A RESOLUTION OF THE CITY COMMISSION
SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF BOZEMAN,
MONTANA, THE QUESTION OF ISSUING GENERAL OBLIGATION BONDS FOR
THE PURPOSE OF PAYING THE COSTS OF DESIGNING, CONSTRUCTING,
EQUIPPING AND FURNISHING A NEW FIRE STATION 2; AND THE QUESTION OF
ISSUING GENERAL OBLIGATION BONDS FOR THE PURPOSE OF PAYING THE
COSTS OF DESIGNING, CONSTRUCTING, EQUIPPING AND FURNISHING
IMPROVEMENTS TO THE BOZEMAN SWIM CENTER; THE BOGERT POOL; AND
THE LINDLEY CENTER; AND COSTS ASSOCIATED WITH THE SALE AND
ISSUANCE OF EACH SERIES OF BONDS” (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 13, 2021, 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 Commission Members voted in favor thereof:
; those Commissioners who voted against
the same: .
WITNESS my hand and seal officially this __ day of July, 2021.
(SEAL)
MIKE MAAS City Clerk
5316
Mayor Andrus, Deputy Mayor Cunningham,
Cr. Pomeroy, Cr. Madgic
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EXHIBIT A
NOTICE OF GENERAL OBLIGATION BOND ELECTION
CITY OF BOZEMAN, MONTANA NOVEMBER 2, 2021
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 13, 2021, a special city election of the registered voters of the City will be held in conjunction with the general election on November 2, 2021, for the purpose of voting on the following questions:
Proposed Fire Station Project
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 Six Million Seven Hundred Thirty Thousand and No/100 Dollars ($6,730,000.00) 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 a new Fire Station 2 on a site located on the Montana State University campus to be leased by MSU to the City or other suitable location in the City; and costs associated with the sale and issuance
of the bonds?
Proposed Recreation Facilities Improvement Projects
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 Two Million Two Hundred
Eighty Thousand and No/100 Dollars ($2,280,000.00) 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 improvements to: the Bozeman Swim Center to include replacing perimeter drain tiles (gutter system), deck tiles,
and ceiling tiles, repairing the plaster shell, and replacing the HVAC system; the
Bogert Pool to include replacing the concrete coping around the pool and the concrete gutter system, re-plastering the shell, repairing the concrete deck, and replacing the perimeter wall/fence; and the Lindley Center to include upgrading restrooms to meet current Americans with Disabilities Act requirements, replacing
windows and log siding, upgrading the kitchen, insulating the east roof, installing
floor and roof supports, improving the parking lot and related site improvements; and costs associated with the sale and issuance of the bonds?
The election will be conducted solely by mail ballot. Ballots will be mailed to all eligible registered voters in the City on October 13, 2021, and must be returned by each voter, to the
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Gallatin County Election Administrator, 311 W. Main Street, Room 210, Bozeman, Montana
59715, or ballots may be delivered in person to the Gallatin County Election Office, 311 W.
Main Room 210, in Bozeman, during regular business hours (8:00 a.m. to 5:00 p.m.) weekdays (exclusive of holidays) October 14, 2021 through November 1, 2021.
On Election Day, November 2, 2021, the only places for deposit of voted ballots will be the office of the Gallatin County Election Administrator and such other ballot drop-off locations
as are identified in the election instructions provided by the Gallatin County Election
Administrator, which will be open from 7:00 a.m. to 8:00 p.m. All ballots will be tallied in the office of the Gallatin County Election Administrator on November 2, 2021 as required by law.
A qualified voter who will be absent from the City during the time the election is being conducted may:
(a) vote in person in the office of the Gallatin County Election Administrator as
soon as the ballots are available and until 8:00 p.m. on Election Day; or
(b) make a written request prior to noon on November 1, 2021, signed by theapplicant and addressed to the office of the Gallatin County Election Administrator requesting the ballot be mailed to an address other than that which appears on the
registration records.
An elector may obtain a replacement ballot if his or her ballot is destroyed, spoiled, lost, or not received by the elector, by filling out and mailing, emailing, or faxing back a completed replacement ballot request form or by personally appearing at the office of the Gallatin County Election Administrator at 311 W. Main Room 210, in Bozeman.
Ballots may be returned in person at the places of deposit listed in the election
instructions of the Gallatin County Election Administrator, or returned by mail. If returning by mail, please use the then-prevailing first-class-postage price or one Forever Stamp. Postmark date does not apply; ballots returned by mail must be received by the 8:00 p.m. Election Day deadline to be counted.
Electors who miss the close of registration deadline may register late and vote in the
election if the County Election Administrator receives and verifies the electors’ voter registration information prior to noon on November 1, 2021.
DATED this ____ day of ______________, 2021.
/s/Eric Semerad
Gallatin County Election Administrator
Publish: October 3, 2021, October 10, 2021, and October 17, 2021
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