HomeMy WebLinkAbout15- $1,815,000 Stormwater System Revenue BondJune 24, 2015
Ms. Stacy Ulmen
City Clerk
City of Bozeman
121 North Rouse Avenue
Bozeman, MT 59715-3740
YT"
DORSEY & WHITNEY LLP
TRICIA C. ELPEL, PARALEGAL
elpel.tricia@dorsey.com
Via Federal Express
Re: $1,815,000 Stormwater System Revenue Bond (DNRC Water Pollution Control
State Revolving Loan Program), Series 2015
City of Bozeman, Montana
Dear Stacy:
In anticipation of the closing of the above -referenced bond issue scheduled for Monday,
June 29, 2015, we have completed and enclose the following documents:
1. One blue -backed bond, which should executed by the Mayor, the City
Administrative Services Director, and you on page 4 and sealed and also
executed by the City Administrative Services Director on page 5 as indicated.
These are the only pages which require signatures. Also enclosed is a copy of
the bond, marked"Mp Lhnen " for the City's files.
2. Four comes of the Officers' Certificate to be executed by the Mayor, the City
Administrative Services Director, and you and sealed.
3. Four copies of the Certificate and Receipt of City Administrative Services Director
to be signed by the CityAdministrative Servicesirector.
4. f2gr the Certificate of Public Works Director to be signed by the Public
Works Director.
5. Four copies of the Certificate of City Reaardinq Coverage to be signed by the
Mayor, the City Administrative Services Director, and you and sealed.
6. Eo��_pies of the Ce-dificate-asf r anization to be signed by you and sealed.
7. One co f the IRS Form 8308-G, which should be executed by the City
Administrative Services Director. Also enclosed is a copy of this form marked
"Taxpayers Copy" for the City's file. We will file this form with the Internal
Revenue Service subsequent to closing.
DORSEY & WHITNEY LLP • WWW.DORSEY.COM • T 406.721.6025 - F 406.543.0863
MILLENNIUM BUILDING - 125 BANK STREET • SUITE 600 - MISSOULA, MONTANA 59802-4407
USA CANADA EUROPE ASIA -PACIFIC
D 0O RSEY'"
Ms. Stacy Ulmen
June 24, 2015
Page 2
Please see that each document is executed by the appropriate City official. On Friday,
June 26, please scan and email a signed copy of each document (including the blue -
backed bond) to us so that we may review the executed documents prior to closing on
Monday morning.
Then please mail four copies of each document plus the originally signed Bond and the
IRS Form 8038-G to us as soon as possible.
Please let me,know if you have any questions.
We will verify receipt of funds by the City prior to release of the closing documents, the
bonds and our opinion. Thank you.
Very truly yours,
dTricia C. Elpel, Paralegal
Enclosures
DORSEY & WHITNEY LLP
UNITED STATES OF AMERICA
STATE OF MONTANA
GALLATIN COUNTY
CITY OF BOZEMAN
STORMWATER SYSTEM REVENUE BOND
(DNRC WATER POLLUTION CONTROL STATE REVOLVING LOAN:P_ ROGRAM),
SERIES 2015
No. R-1
111
FOR VALUE RECEIVED, the City of Bozeman,, Montana '(the "Borrower"), a
duly organized municipal corporation and political subdivision of,,;the State of Montana,
acknowledges itself to be specially indebted and, for value received, hereby promises to pay to
the Department of Natural Resources and Conservation ofthe State of Montafa (the "DNRC"),
or its registered assigns, solely from the Revenue Bond Account of its $tormwater System Fund,
the principal sum equal to the sum of the amounts entered on Schedule "a- ached hereto under
"Total Amount Advanced," with interest on each such amount fiom, the date such amount is
advanced hereunder at the rate of 2.00% per agn-mg,on e unpaid balance until paid. In
addition, the Borrower shall pay, solely froA-t said source, anN --,d mstrative Expense Surcharge
and a Loan Loss Reserve Surcharge on the oufistandrri .princap ' amount of this Bond at the rate
of twenty-five hundredths of one per ce t (0 25lt%o) per annum and twenty-five hundredths of one
percent (0.25%) per annum, respectively. Interest`bd Administrative Expense Surcharge and a
Loan Loss Reserve Surcharge sliall be payable nii semiannual installments payable on each
January 1 and July 1 (each a "Loan>Repayment bate") commencing January 1, 2016. Principal
shall be payable on the dates set forth in Schedule B hereto. Each installment shall be in the
amount set forth opposite its:,due date- rSchedule B attached hereto under "Total Loan
Payment." The portion of each suchzpayment consisting of principal, the portion consisting of
interest and the portion consisting `df Administrative Expense Surcharge and the portion
consisting of Loan Loss Reserve Surol arge shall be as set forth in Schedule B hereto. Upon each
disbursement 6. oan ainounts to 4he Borrower pursuant to the Resolution described below, the
DNRC shall enter (oz cause to be entered) the amount advanced on Schedule A under
"Advances" :and the otal amount advanced under the Resolution (as hereinafter defined),
including such_. _disbursement, under "Total Amount Advanced." The DNRC shall prepare
Schedule =B_and`ai�y revised Schedule B, or cause Schedule B and any revised Schedule B to be
prepared, as provided in Section 5.1 of the Resolution. Schedule B shall be calculated and
recalculated* zon..a -level debt service basis assuming an interest rate of 2.50% per annum. Past -
due payments 'of principal and interest and Administrative Expense Surcharge and Loan Loss
Reserve Surcharge shall bear interest at the rate of ten percent (10.00%) per annum, until paid.
Interest and Administrative Expense Surcharge and Loan Loss Reserve Surcharge shall be
calculated on the basis of a 360 -day year comprising 12 months of 30 days each. All payments
under this Bond shall be made to the registered holder of this Bond, at its address as it appears on
the Bond register, in lawful money of the United States of America.
This Bond is one of an issue of Stoimwater System Revenue Bonds of the
Borrower authorized to be issued in one or more series from time to time, and constitutes a series
in the maximum authorized principal amount of $1,815,000 (the "Series 2015 Bond"). The
Series 2015 Bond is issued to finance the costs of the construction of certain improvements to the
stormwater system of the Borrower (the "System"), to fund deposits to the Reserve Account, and
to pay costs of issuance of the Series 2015 Bond. The Series 2015 Bond is issued pursuant to
and in full conformity with the Constitution and laws of the State of Montana thereunto enabling,
including Montana Code Annotated, Title 7, Chapter 7, Part 44, as amended, and ordinances and
resolutions duly adopted by the governing body of the Borrower, including Resolution No. 4607
duly enacted by the City Commission on June 15, 2015 (the "Resolution"" Terms used with
initial capital letters but not defined in this bond shall have the meanings given them in the
Resolution. The Series 2015 Bond is issuable only as a single, fully regrsteied bond
Reference is made to the Resolution for a more e,oxrplete statcir_zzent of the terms
and conditions upon which the Series 2015 Bond has been rssued, the Net Revenues of the
System pledged and appropriated for the payment and jecurity -,Thereof, the conditions upon
which additional bonds may be issued under the Resolution and 'made payable from such Net
Revenues on a parity with the Series 2015 Bond (the "Borids-='-) or otli& ise-, the conditions upon
which the Resolution may be amended, the rights, duties an obligations' of the Borrower, and
the rights of the owners of the Series 2015 Borid Net Rek-enuesnclude Pledged Stormwater
Mitigation Property Tax Revenues.
The Borrower may
obtains the prior written consen
Administrative Expense Surcharg
prepayment permitted by the DNF
Administrative Expense Su_carge
on the amount of principal prepaid,
shall be applied to principal payee
payable solely -from the Net -IR
debt of the Botrowerr within
,rep�ay the principal sof the Series 2015 Bond only if (i) it
of fhe DN -RC thereto and (ii) no Loan Repayment or
or Loan Loss Reserwe Surcharge is then delinquent. Any
must be accompanied by payment of accrued interest and
pd Loan Lot's Reserve Surcharge to the date of prepayment
If the Series72015 Bond is prepaid in part, such prepayments
s m inverse order of maturity.
uding interest and any premium for the redemption thereof, are
venU
es pledged for the payment thereof and do not constitute a
the meaning of any constitutional or statutory limitation or
15 Bond has been designated by the City as a "qualified tax-exempt
in 265(b) of the Internal Revenue Code of 1986, as amended.
;,,...,The° -Borrower may deem and treat the person in whose name this Series 2015
Bond is registered as the absolute owner hereof, whether this Series 2015 Bond is overdue or not,
for the purpose of receiving payment and for all other purposes, and the Borrower shall not be
affected by any notice to the contrary. The Series 2015 Bond may be transferred hereinafter as
provided.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
the Borrower will forthwith construct and complete the improvements to the System hereinabove
described, that it will prescribe and collect reasonable rates and charges for all services and
2
facilities afforded by the System, including all additions thereto and replacements and
improvements thereof, and has created a special Stormwater System Fund into which the
Revenues of the System will be paid, and a separate and special Revenue Bond Account in that
fund, into which will be paid each month, from and as a first and prior lien on the Net Revenues
of the System (including the Pledged Stormwater Mitigation Property Tax Revenues) then on
hand, an amount equal to not less than the sum of one-sixth of the interest due within the next six
months plus one -twelfth of the and principal due within the next twelve months with respect to
all Bonds payable semiannually from the Revenue Bond Account; that the Borrower has created
a Reserve Account in such fund into which shall be paid additional Net Revenues, after required
credits to the Revenue Bond Account, sufficient to maintain a reserve therein ,equal to the
Reserve Requirement; that the Revenue Bond Account will be used only to pay the principal of,
premium, if any, and interest on the Series 2015 Bonds and any other'addztional Bonds issued
pursuant to the Resolution on a parity therewith; that the rates and='charges' for the System will
from time to time be made and kept sufficient, to provide Rever ues 'adequate lo pay promptly
Operating Expenses and to produce in each fiscal year Net Revenues (he sum of the difference
between Revenues less Operating Expenses plus Pledged{ Storrnv ater Mitzgatioi Property Tax
Revenues) equal to 110% of the maximum amount of principal and interest payable from the
Revenue Bond Account in any subsequent fiscal ear,-... additimnai Bonds and refunding
Bonds may be issued and made payable from the Revenue:• Bond. Account on a parity with the
Series 2015 Bonds and other parity Bonds, upon certai ts6t forth in the Resolution,
but no obligation will be otherwise incurred- and made pay4'ble from the Net Revenues of the
System, unless the lien thereof shall be expressly made subordinate to the lien of the Series 2015
Bond and additional parity Bonds on such Net°Revenues; that all provisions for the security of
the holder of this Series 2015 Bond.�set forth iii th`e,Resolution will be punctually and faithfully
performed as therein stipulated, that all acts, conditOns`'and things required by the Constitution
and laws of the State of Montana�'4d the ordinances and resolutions of the Borrower to be done,
to exist, to happen and to =be pezfoxmed in order to make this Series 2015 Bond a valid and
binding special obligatzorfof the Borrower acc_.oding to its terms have been done, do exist, have
happened and have beenperforiied in iegular`-and due form, time and manner as so required; and
that this Series 2015 Bond and'the interest hereon are payable solely from the Net Revenues of
the System led ed and a iso riated to the Revenue Bond Account and do not constitute a debt
Y p g P$ p,
of the Borrowewrthrithe meaning -of any constitutional or statutory limitation or provision and
the issuance H he_Series 201'5 Bond does not cause either the general or the special
indebtedness of the 13orrower to exceed any constitutional or statutory limitation.
3
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its governing
body, has caused this 'Bond to be executed by the signatures of the Mayor, the City
Administrative Services Director, and the Clerk of the Commission, and has caused the official
seal of the Borrower to be affixed hereto, and -has caused this Bond to be dated as of the 29th day
of June, 2015.
M
Mayo�a)r
Z.1v �'
.
C' y Xdn iiimi�4pe Services firector
VMO ox
Cl .k o e Co ssion
REGISTRATION AND TRANSFER
This Bond shall be fully registered as to both principal and interest. No transfer of this
Bond shall be valid unless and until (1) the registered holder of the Bond, or his duly authorized
attorney or legal representative, executes the form of assignment appearing on this Bond, and (2)
the City Administrative Services Director as bond registrar (the "Registrar"), has duly noted the
transfer on the Bond and recorded the transfer on the Registrar's registration books. The
Borrower shall be entitled to deem and treat the person in whose name this Bond is registered as
absolute owner thereof for all purposes, notwithstanding any notice to the contraty. Payments on
account of the Bond shall be made only to the order of the registered holder thereof, and all such
payments shall be valid and effectual to satisfy and discharge the Borrower's liability upon the
Bond to the extent of the sum or sums so paid.
REGISTER
The ownership of the unpaid Principal Balance of thzs.B.ond aiid the int est accruing
thereon is registered on the books of the City of Bozeman,-ylontanajjj, the name of the registered
holder appearing on the first page hereof or as last noted below;
�, ,
-3
- Signature of
Date of Name and Addess ;City Administrative
Registration of Re6steled Holden Services Director
De artment ofNatuial
Resources and 'Conservatzon
1 25 Eleventh AV&hue
June 25, 2015 elena, MT 59,620
THE FOLLOWING ENTRIES ='TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The CztyAdr%iinistrative Sexvices Director of the City, acting as Bond Registrar, has
tiansfei7ed, 6nthe. books of the City, on the date last noted below, ownership of the principal
amount of and the accrued interest on this Bond to the new registered holder noted next to such
date, except for amounts of principal and interest theretofore paid.
Name of New Signature of
Date of Tran46r Registered Holder Bond Registrar
THE FOLLOWING ENTRIES ARE TO BE MADE ONLY BY THE BOND
REGISTRAR UPON REGISTRATION OF EACH TRANSFER
The City Administrative Services Director of the City of Bozeman, Montana, acting as
Bond Registrar, has transferred, on the books of the Borrower, on the date last noted below,
ownership of the principal amount of and the accrued interest on this Bond to the new registered
holder noted next to such date, except for amounts of principal and interest theretofore paid.
Name of New Signature of
Date of Transfer Registered Holder Bond R6 ig stra
For value received, this
holder, without recourse,
to
of ,
Cel
and assigned by the undersigned
(Authorized Signature)
SCHEDULE A
SCHEDULE OF AMOUNTS ADVANCED
Total Amount
Date Advances Advanced Notation Made By
06/29/2015 $229,750.00 $229,750.00
Date
SCHEDULE B
Loan Loss
Administrative Reserve
Principal Interest Expense Surcharge Surcharge
Total Loan
Payment
SRF -15373
Preliminary Schedule
STATE OF
MONTANA
GENERAL OBLIGATION
BONDS
WASTE,
WATER
(REVOLVING FUND
PROGRAM)
BORROWER:
Bozeman
PROTECT NAME:
Landfill mitigation
FINAL
LOAN PAYMENT:
7/1/2035
LOAN
COMMITMENT:
$1,815,000
# OF LOAN PAYMENTS:
40
LOAN AMOUNT:
1,815,000
PROJECT NUMBER:
INTEREST RATE:
2,50%
DATE OF FUNDING:
6/29/2015
PAYMENT
LOAN LOSS
ADM EXPENSE
INTEREST
PRINCIPAL
O/S LOAN
TOTAL AMOUNT
DUE
RESERVE
SURCHARGE
PAYMENT
PAYMENT
BALANCE
OF PAYMENT
1
1/1/2016
2,293.96
2,293,96
18,351.67
35,000.00
1,780,000.00
$57,939.58
$57,939.58
2
7/1/2016
2,225.00
2,225.00
17,800.00
36,000.00
1,744,000.00
$58,250.00
3
1/1/2017
2,180,00
2,180.00
17,440.00
36,0K00
1,708,000.00
$57,800.00
$116,050.00
4
7/1/2017
2,135.00
2,135.00
17,080.00
37,000.00
1,671,000,00
$58,350,00
5
1/1/2018
2,088.75
2,088.75
16,710,00
37,000.00
1,634,000,00
$57,887.50
$116,237.50
6
7/1/2018
2,042,50
2,042,50
16,340.00
38,000.00
1,596,000.00
$58,425.00
7
1/1/2019
1,995,00
1,995,00
15,960.00
38,000.00
1,558,000.00
$57,950.00
$116,375.00
8
7/1/2019
1,947.50
1,947.50
15,580.00
38,000.00
1,520,000.00
$57,475.00
9
1/1/2020
1,900,00
1,900.00
15,200.00
39,000.00
1,481,000.00
$58,000.00
$115,475.00
10
7/1/2020
1,851,25
1,851.25
14,810.00
39,000.00
1,442,000,00
$57,512.50
11
1/1/2021
1,802,50
1,802.50
14,420.00
40,000.00
1,402,000,00
$58,025.00
$115,537.50
12
7/1/2021
1,752.50
1,752.50
14,020.00
40,000.00
1,362,000.00
$57,525.00
13
1/1/2022
1,702,50
1,702.50
13,620.00
41,000,00
1,321,000.00
$58,025.00
$115,550.00
14
7/1/2022
1,651,25
1,651.25
13,210.00
41,000.00
1,280,000,00
$57,512.50
15
1/1/2023
1,600.00
1,600.00
12,800,00
42,000.00
1,238,000,00
$58,000.00
$115,512,50
16
7/1/2023
1,547.50
1,547.50
12,380.00
42,000.00
1,196,000.00
$57,475.00
17
1/1/2024
1,495.00
1,495.00
11,960,00
43,000.00
1,153,000,00
$57,950.00
$115,425.00
18
7/1/2024
1,441.25
1,441.25
11,530,00
44,000.00
1,109,000.00
$58,412.50
19
1/1/2025
1,386.25
1,386.25
11,090.00
44,000.00
1,065,000.00
$57,862.50
$116,275.00
20
7/1/2025
1,331.25
1,331.25
10,650.00
45,000.00
1,020,000.00
$58,312.50
21
1/1/2026
1,275.00
1,275.00
10,200.00
45,000.00
975,000.00
$57,750.00
$116,062.50
22
7/1/2026
1,218,75
1,218.75
9,750.00
46,000.00
929,000.00
$58,187.50
23
1/1/2027
1,161.25
1,161.25
9,290.00
46,000.00
883,000.00
$57,612.50
$115,800.00
24
7/1/2027
1,103.75
1,103.75
8,830.00
47,000.00
836,000.00
$58,037.50
25
1/1/2028
1,045,00
1,045.00
8,360.00
47,000.00
789,000.00
$57,450.00
$115,487.50
26
7/1/2028
986.25
986.25
7,890.00
48,000.00
741,000.00
$57,862.50
27
1/1/2029
926.25
926.25
7,410.00
49,000.00
692,000.00
$58,262.50
$116,125.00
28
7/1/2029
865.00
865.00
6,920.00
49,000.00
643,000.00
$57,650.00
29
1/1/2030
803.75
803.75
6,430.00
50,000.00
593,000.00
$58,037.50
$115,687.50
30
7/1/2030
741.25
741.25
5,930,00
51,000.00
542,000.00
$58,412.50
31
1/1/2031
677.50
677.50
5,420.00
51,000.00
491,000.00
$57,775.00
$116,187.50
32
7/1/2031
613.75
613,75
4,910.00
52,000.00
439,000.00
$58,137.50
33
1/1/2032
548,75
548.75
4,390.00
52,000.00
387,000.00
$57,487.50
$115,625.00
34
7/1/2032
483.75
483.75
3,870.00
53,000.00
334,000,00
$57,837.50
35
1/1/2033
417,50
417.50
3,340.00
54,000.00
280,000.00
$58,175.00
$116,012.50
36
7/1/2033
350.00
350.00
2,800.00
54,000.00
226,000.00
$57,500.00
37
1/1/2034
282.50
282.50
2,260.00
55,000,00
171,000.00
$57,825,00
$115,325.00
38
7/1/2034
213.75
213,75
1,710.00
56,000.00
115,000.00
$58,137.50
39
1/1/2035
143.75
143.75
1,150.00
57,000.00
58,000.00
$58,437.50
$116,575.00
40
7/1/2035
72.50
72.50
580.00
58,000.00
0.00
$58,725.00
$58,725,00
50,298.96
50,298.96
402,391.67
1,815,000.00
2,317,989.58
2,317,989.58
2317989.583
$1,815,000
Stormwater System Revenue Bond
(DNRC Water Pollution Control State Revolving Loan Program), Series 2015
City of Bozeman, Montana
OFFICERS' CERTIFICATE
We, Jeff Krauss, Stacy Ulmen, and Anna Rosenberry, hereby certify that we are on the
date hereof the duly qualified and acting Mayor, City Clerk, and City Administrative Services
Director, respectively, of the City of Bozeman, Montana (the "City"), and, on behalf of the City,
that:
1. The undersigned Mayor, City Clerk, and City Administrative Services Director have
executed with their tike signatures as such officers the Stormwater System Revenue Bond
(DNRC Water Pollution Control State Revolving Fund Program), Series 2015, in the maximum
principal amount of $1,815,000 (the "Series 2015 Bond"), dated, as originally issued, as of the
date hereof. The Series 2015 Bond, matures on the date, bears interest at the rate and is
substantially in the form, prescribed by Resolution No. 4607, duly adopted by the City
Commission of the City on June 15, 2015, entitled "Resolution Relating to $1,815,000
Stormwater System Revenue Bond (DNRC Water Pollution Control State Revolving Loan
Program), Series 2015; Authorizing the Issuance and Fixing the Terms and Conditions Thereof'
(the "Resolution"). Terms used with initial capital letters but not defined herein shall have the
meanings given them in the Resolution. The Resolution is in full force and effect in the form it
was adopted.
The Series 2015 Bond is being issued for the purposes of financing the costs of the 2015
Project (as hereinafter defined), funding the Reserve Account to the Reserve Requirement, and
paying costs associated with the financing. We have delivered the Series 2015 Bond, duly
authenticated by the City Administrative Services Director, as Registrar, to the Department of
Natural Resources and Conservation of the State of Montana, as purchaser (the "Purchaser").
The Series 2015 Bond is in fully registered form pursuant to a system of registration established
by the Resolution.
The Series 2015 Bond and any other bonds hereafter issued by the City on a parity
therewith under the Resolution are referred to herein as the `Bonds."
2. The Series 2015 Bond has been in all respects duly executed for delivery pursuant to
authority conferred upon us as such officers; that no obligations other than those described above
have been issued pursuant to such authority; that none of the proceedings or records which has
been certified to the Purchaser or to the attorneys approving the validity of the Series 2015 Bond
has been in any manner repealed, amended or changed except as shown by additional
proceedings or records furnished each of them; and that there has been no material adverse
change in the financial condition of the City or the circumstances affecting the Series 2015 Bond,
except as shown by the materials so furnished.
3. No litigation is now pending, or, to the best of our knowledge, threatened (i)
restraining or enjoining the issuance or delivery of the Series 2015 Bond, (ii) questioning the
organization or boundaries of the City or the right of any officers of the City to their respective
offices, (iii) questioning the right and power of officers of the City to deliver the Series 2015
Bond, (iv) challenging the validity of or security for the Series 2015 Bond, the pledge of Net
Revenues of the Stormwater System of the City (the "System") to pay the principal of, premium,
if any, and the interest on the Series 2015 Bond, or (v) challenging the validity or enforceability
of the Resolution. Notwithstanding any provision to the contrary herein, litigation has been filed
in the Eighteenth Judicial District regarding the Story Mill Landfill (See, e.g., Cause No. DV -14-
958B (Christina Bauer et al. v. City of Bozeman et al.); Cause No. DV -15-24B (Mikel Daenen
et. al. v. City of Bozeman et al.); Cause No. DV -14-994B (Lesley .Fischer, et al. v. City of
Bozeman et al.); see also Cause No. BDV-2014-958 (Montana Municipal Interlocal Authority v.
City of Bozeman, et al., filed in the First Judicial District of Montana regarding insurance
coverage)) and further litigation regarding the Story Mill Landfill may be filed. As of the date
hereof, the City is not able to predict the effect of the above litigation or subsequent litigation on
the City but the City currently expects to produce sufficient Net Revenues to repay the Series
2015 Bond.
4. The representations of the City contained in Article II of the Resolution are true and
complete as of the date hereof as if made on this date, except to the extent that the City has
specifically advised the Purchaser and the attorneys approving the validity of the Series 2015
Bond otherwise in writing.
5. The Series 2015 Bond is being delivered to the Purchaser on the date hereof and
$229,750 of the proceeds of the Series 2015 Bond is being advanced on the date hereof.
6. We are among the officers of the City responsible for issuing the Series 2015 Bond
and,. pursuant to Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"),
and the Treasury Regulations promulgated thereunder (the "Regulations"), on behalf of the City
we hereby certify and reasonably expect that the proceeds of the Series 2015 Bond will be used
as follows within the meaning of applicable provisions of Section 148 of the Code and of
applicable Treasury Regulations (the "Regulations"), such facts, estimates and circumstances
being as follows:
(a) The Series 2015 Bond is being issued to finance the cost of acquiring or
constructing certain improvements to the System, generally described in Appendix A to
the Resolution (the "2015 Project"), fund deposits to the Reserve Account, and pay costs
of issuance. The 2015 Project is intended for use by members of the general public or
users of the System. All users of the System pay standard rates for the use and
availability of the System.
(b) The City has spent or expects to spend the following amounts from proceeds
of the Series 2015 Bond in connection with the 2015 Project and associated financing
costs:
Debt Service Reserve $ 58,288.00
Bond Counsel & Related costs 22,000.00
Preliminary Engineering 288,762.00
Engineering/Arch, Design 400,000.00
Construction 896,000.00
2
Contingency
149,950.00
TOTAL PROJECT COSTS $1,815,000.00
(c) The City has heretofore entered or within six months will enter into contracts
for the 2015 Project, in the form of engineering services, site development or
construction, in the sum of at least 5% of the expected sale proceeds of the Series 2015
Bond, i.e. $90,750, which the City expects to spend on the 2015 Project.
(d) Work on the 2015 Project has begun and will proceed with due diligence to
completion, and the 2015 Project is expected to be completed by ,
201.
(e) The Series 2015 Bond will be purchased by the Purchaser at a purchase price
equal to the principal amount of the Series 2015 Bond advanced thereunder. Pursuant to
the Resolution and the Series 2015 Bond, the Purchaser has agreed to advance to the City
principal amounts of the Series 2015 Bond from time to time upon satisfaction of certain
conditions precedent set forth in the Resolution, up to the maximum principal amount of
$1,815,000. No interest accrues on principal of the Series 2015 Bond and the City is not
entitled to any investment income thereon until the principal amount is advanced,
(f) Of the purchase price of the Series 2015 Bond, assuming the full principal
amount thereof is drawn, $1,734,712 will be used to pay costs of 2015 Project, $22,000 to
pay costs of issuance of the Series 2015 Bond (representing costs of legal services), and
$58,288 to fund the deposit to the Reserve Account. $221,338.79 of the proceeds of the
Series 2015 Bond will be used to reimburse the City for original expenditures of the City
in connection with the 2015 Project except in accordance with paragraph 7 below.
(g) The City expects to spend on costs of the 2015 Project by no later than
, 201 all of the proceeds to be derived by the City from the sale of the
Series 2015 Bond and investment earnings thereon.
(i) The Series 2015 Bond is not a "hedge bond" within the meaning of Section
149(8) of the Code. The City expects to spend not less than 85% of the sale proceeds of
the Series 2015 Bond within three years after the date hereof and less than 50% of the
proceeds of the Series 2015 Bond are invested in nonpurpose investments having a
substantially guaranteed yield for four years or more.
0) Proceeds of the Series 2015 Bond and investment income thereon, if any, to
be used to finance the costs of the 2015 Project and pay costs of issuance of the Series
2015 Bond will be invested for a temporary period pursuant to Section 1.148-2(e)(2) of
the Regulations ending on the earlier of: (i) three years from the date hereof (June 29,
2018), or (ii) the date that the 2015 Project would be completed in the exercise of due
diligence and all costs thereof promptly paid. If, at the conclusion of such temporary
period, sale proceeds of the Series 2015 Bond and investment income thereon, other than
sale proceeds deposited in the Reserve Account, have not been allocated to the
governmental purposes of the Series 2015 Bond, such amounts will not be invested at a
yield greater than the yield of the Series 2015 Bond, if and to the extent such restriction is
necessary to prevent the Series 2015 Bond from being an arbitrage bond within the
meaning of Section 148 of the Code and Regulations unless the City determines to take
advantage of Section 1.148-5(c) of the Regulations relating to yield reduction payments.
(lc) The 2015 Project has not been and is not expected to be sold or otherwise
disposed of by the City during the term of the Series 2015 Bond, The City expects that
the 2015 Project will remain owned and operated by the City substantially in the manner
in which they are now owned and operated for the indefinite period concluding not earlier
than the final stated maturity date of the Series 2015 Bond,
The City reasonably expects that during the term of the Series 2015 Bond no
private business use will be made of the 2015 Project or the System and that no private
payments or security will be made or furnished that would cause the Series 2015 Bond to
be a "private activity bond" within the meaning of Section 141 of the Code and
applicable Regulations. No proceeds of the Series 2015 Bond are being or will be loaned
to any nongovernmental person. The City reasonably expects that the Series 2015 Bond
will not be a private activity bond within the meaning of Section 141 of the Code.
(1) No obligations of the City (a) are being issued at substantially the same time
as the Series 2015 Bond, (b) are being sold pursuant to the same plan of financing as the
Series 2015 Bond, and (c) are reasonably expected to be paid from substantially the same
source of funds (determined without regard to guarantees from unrelated parties) as will
be used to pay the Series 2015 Bond, within the meaning of Section 1.150-1(c) of the
Regulations.
(m) Pursuant to the Resolution, the principal of, premium, if any, and interest on
the Bonds are to be paid from the Revenue Bond Account in the Stormwater System
Fund (the "Revenue Bond Account"). The City does not reasonably expect to use any
other fund or account to pay principal of, premium, if any, or interest (including, for
purpose of this paragraph 6(m), Administrative Expense Surcharge and Loan Loss
Reserve Surcharge, as provided in the Resolution) on the Series 2015 Bond, The Net
Revenues appropriated by the Resolution to the payment of the Series 2015 Bond are to
be deposited in the Revenue Bond Account.
It is expected that all amounts credited to the Revenue Bond Account allocable to
the Series 2015 Bond will be used to pay the interest on and principal of the Series 2015
Bond within 13 months after deposit. The Revenue Bond Account will be used primarily
to achieve a proper matching of revenues and debt service within each bond year (the 12 -
month period (or shorter period from the date hereof) ending on a July 1) and is expected
to be fully depleted at least once a year on July 1, except for a reasonable carryover
amount which is not expected to exceed the greater of (i) the earnings on money in the
Revenue Bond Account allocable to the Series 2015 Bond for the preceding bond year or
(ii) one -twelfth of the annual debt service on the Series 2015 Bond in the preceding bond
year. Consequently, the amounts on deposit in the Revenue Bond Account allocable to
the Series 2015 Bond constitute a "bona fide debt service fund" for the Series 2015 Bond
within the meaning of Section 1.148-1(b) of the Regulations,
4
(n) As of the first day of each month commencing August 1, 2015, the City
Administrative Services Director will determine the balance on deposit in the Revenue
Bond Account allocable to the Series 2015 Bond. If the amount on deposit in the
Revenue Bond Account allocable to the Series 2015 Bond exceeds the sum of the amount
of principal and interest payable from the Revenue Bond Account on the Series 2015
Bond through the following July 1 plus the carryover amount described in paragraph
6(m) hereof, then, to the extent necessary to prevent the Series 2015 Bond from
becoming an arbitrage bond, the excess over such sum will either be (i) used to redeem
principal installments of the Series 2015 Bond, or (ii) invested at a yield less than or
equal to the yield of the Series 2015 Bond, except as permitted by paragraph 6(p) hereof.
(o) Pursuant to the Resolution, the City has established a Reserve Account in the
Stormwater System Fund (the "Reserve Account") to secure its parity Bonds, including
the Series 2015 Bond, The City will deposit in the Reserve Account from the proceeds of
the Series 2015 Bond from each draw in proportion to the amount of principal of the
Series 2015 Bond being disbursed an amount necessary to satisfy the Reserve
Requirement (as defined in the Resolution). The Reserve Requirement for the Series
2015 Bond, assuming the full principal amount thereof is advanced, totals $58,288, which
will be funded from proceeds of the Series 2015 Bond. The amount on deposit in the
Reserve Account allocated to the principal amount of the Series 2015 Bond advanced on
the date hereof ($8,411) secures only the Series 2015 Bond. Upon each monthly
apportionment from Net Revenues remaining after the apportionment to the current
requirements of the Revenue Bond Account, the City shall credit to the Reserve Account
such additional Net Revenues as may be required to maintain the balance in the Reserve
Account in an amount equal, as of the date of calculation, to the Reserve Requirement,
The City will allocate amounts on deposit in the Reserve Account in proportion to the
maximum amount of principal and interest payable in the current or any future fiscal year
for the Series 2015 Bond; provided that such amount shall not be less than the amount of
proceeds of Bonds of such series (whether sale or transferred proceeds) deposited therein.
The Reserve Account, as established and implemented pursuant to the Resolution,
constitutes a "reasonably required reserve" within the meaning of Section 148(d) of the
Code to the extent the amount therein allocable to the Series 2015 Bond (the "2015
Reserve Amount") does not exceed 2015 Reserve Limitation (as hereinafter defined).
Assuming the full principal amount of the Series 2015 Bond is advanced, the 2015
Reserve Amount is $58,288.
Any portion of the 2015 Reserve Amount that is in excess of the 2015 Reserve
Limitation shall not be invested at a yield in excess of the yield of the Series 2015 Bond
(2.4999907%), except as permitted by paragraph 6(p) hereof. As used herein, the "2015
Reserve Limitation" is equal, as of the date of calculation, to the least of; (i) ten percent
(10%) of the principal amount of the Series 2015B Bond and the Series 2015C Bond that
is actually advanced pursuant to the terms of the Resolution (if all proceeds are advanced,
$181,500.00); (ii) the maximum amount of principal and interest payable on the Series
2015 Bond in the current or any future fiscal year of the City (initially, $116,575.00); and
(iii) 125% of the average debt service on the Series 2015 Bond payable in any fiscal year
of the City during the term of the Series 2015 Bond (initially, $144,874.00).
5
Assuming the full principal amount of the Series 2015 Bond is advanced, the
2015 Reserve Amount, using the method described in the first paragraph of paragraph
6(o) above, is $58,288. All of the 2015 Reserve Amount, assuming the full principal
amount of the Series 2015 Bond is advanced, is a reasonably required reserve for the
Series 2015 Bond to the extent not in excess of the 2015 Reserve Limitation.
(p) An aggregate amount of proceeds of the Series 2015 Bond not to exceed the
Minor Portion Amount under Section 148(e) of the Code ($90,750) (the "Minor Portion
Amount") may be invested without restriction as to yield throughout the tern of the
Series 2015 Bond. To the extent that money, allocated to the Series 2015 Bond pursuant
to the Regulations, on deposit in (i) the Construction Account remains therein for a
period longer than that prescribed by paragraph 60), (ii) the Revenue Bond Account in
excess of the amount described in paragraph 6(n) hereof, or (iii) the 2015 Reserve
Amount exceeds the 2015 Reserve Limitation described in paragraph 6(o) hereof,
exceeds the Minor Portion Amount, no more than the Minor Portion Amount may be
invested at a yield which exceeds the yield of the Series 2015 Bond.
(q) No portion of the Series 2015 Bond is issued solely for the purpose of
investing such portion at a materially higher yield as less than a major portion. None of
the proceeds of the Series 2015 Bond will be used directly or indirectly to replace funds
which were used directly or indirectly to acquire obligations with a yield that is
materially higher than the yield of the Series 2015 Bond (2.4999907%).
(r) The Series 2015 Bond will not be outstanding longer than necessary, within
the meaning of Section 1.148-1(c)(4) of the Regulations. The weighted average maturity
of the Series 2015 Bond (11.083 years) does not exceed 120 percent of the average
reasonably expected economic life of the 2015 Project. Such average reasonably
expected economic life is not less than 20 years.
(s) Notwithstanding Section 12.4 of the Resolution, the Series 2015 Bond
qualifies for the "small issuer" exception to arbitrage rebate in that the City reasonably
expects it will issue less than $5,000,000 of tax-exempt obligations in calendar year 2015.
The City hereby represents that the Series 2015 Bond qualifies for the exception for small
governmental units to the arbitrage rebate provisions contained in Section 148(f) of the
Code. Specifically, the City represents:
(1) The 2015 Project is to be used solely by members of the general
public and no special concession or contract is or will be granted to any user of
the 2015 Project.
(2) Substantially all (not less than 95%) of the proceeds of the Series 2015
Bond will be used for local govermnental activities of the City.
(3) The aggregate face amount of all "tax-exempt bonds" (including
warrants, contracts, leases and other indebtedness, but excluding private activity
bonds) issued by the City and all subordinate entities thereof during 2015 is not
reasonably expected to exceed $5,000,000. To date in 2015, the City has not
issued any such tax-exempt bonds, and in the calendar years 2010 through 2014,
rel
the City did not issue any tax-exempt bonds, except its $5,100,000 General
Obligation Bonds, Series 2014, its $9,900,000 General Obligation Bonds, Series
2013, its $22,172,081 First Amended and Restated Sewer System Revenue Bonds
(DNRC Water pollution control State Revolving Loan Program), Consisting of
$885,091 First Amended and Restated Series 2010C Bond, $8,308,000 First
Amended and Restated Series 2010D Bond, $729,000 First Amended and
Restated Series 2010F Bond, $3,558,000 First Amended and Restated Series
2010G Bond, and $8,692,000 First Amended and Restated Series 2010H Bond, its
$18,891,000 First Amended and Restated Water System Revenue Bonds (DNRC
Drinking Water State Revolving Loan Program), Consisting of $9,491,000 First
Amended and Restated Series 2011A Bond and $9,400,000 First Amended and
Restated Series 2011B Bond, and its $3,080,000 General Obligation Refunding
Bonds, Series 2012.
If notwithstanding the provisions of this paragraph (s), the arbitrage rebate
provisions of Section 148(f) of the Code apply to the Series 2015 Bond, the City hereby
covenants and agrees to make the determinations, retain records, and rebate to the United
States the amounts at the times, required by said Section 148(f).
(t) On the basis of all the facts, estimates and circumstances now in existence and
set forth in the documents relating to the issuance of the Series 2015 Bond, including
without limitation this instrument, it is expected that the proceeds of the Series 2015
Bond will be used in a manner that would not cause the Series 2015 Bond to be an
"arbitrage bond" within the meaning of Section 148 of the Code and the Regulations.
(u) To the best of our knowledge and belief, there are no other facts, estimates or
circumstances that would materially change the foregoing expectations and said
expectations are reasonable. No matters have come to our attention which make
unreasonable or incorrect the representations made in this Certificate.
7. The provisions of this Section 7 are intended to establish and provide for compliance
by the City with Treasury Regulations, Section 1.150-2 (the "Reimbursement Regulations")
applicable to the "reimbursement proceeds" of the Series 2015 Bond, being those proceeds
which will be used by the City to reimburse itself for any expenditure with respect to the 2015
Project which the City paid or will have paid prior to the issuance of the Series 2015 Bond (a
"Reimbursement Expenditure").
The City hereby certifies and/or covenants as follows:
(a) On May 4, 2014, the City (or person designated to do so on behalf of the
City) made a written declaration of the City's official intent (a "Declaration") which
complies with the provisions of Section 1.150-2(d) and (e) of the Reimbursement
Regulations. The Declaration need not cover, however, Reimbursement Expenditures:
(i) to be paid or reimbursed from sources other than the Series 2015 Bond, (ii)
constituting "preliminary expenditures" (within the meaning of Section 1.150-2(f)(2) of
the Regulations) for the 2015 Project, including engineering or architectural expenses and
similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue
price" of the Series 2015 Bond, (iii) in a "de minimis" amount (as defined in Section
7
1.150-2(f)(1) of the Regulations), i.e., $90,750; or (iv) Reimbursement Expenditures paid
not more than 60 days before the date of the Declaration.
(b) As of the date of the Declaration, no funds from sources other than the
Series 2015 Bond were, or were reasonably expected to be, reserved, allocated on a long-
term basis, or otherwise set aside by the City to provide financing for the Reimbursement
Expenditure to be reimbursed from proceeds of the Series 2015 Bond.
(c) Each Reimbursement Expenditure to be reimbursed from proceeds of the
Series 2015 Bond, other than costs of issuing the Series 2015 Bond, is a capital
expenditure (i.e., a cost that is properly chargeable to capital account (or would be with a
proper election) under general federal income tax principles).
(d) The "reimbursement allocation" described in the Reimbursement
Regulations for each Reimbursement Expenditure to be reimbursed from proceeds of the
Series 2015 Bond shall be made forthwith following (but not prior to) the issuance of the
Series 2015 Bond and in all events within the period ending on the date which is three
years after the later of; (i) the date of payment of the Reimbursement Expenditure or (ii)
the 2015 Project is first placed in service or abandoned.
(e) Each such reimbursement allocation will be evidenced by an entry on the
official books or records of the City maintained for and in connection with the Series
2015 Bond and will specifically identify the actual prior Reimbursement Expenditure to
be reimbursed from proceeds of the Series 2015 Bond. As of the date hereof, the City
will be reimbursed from proceeds of the Series 2015 Bond in the amount of $221,338.79
for costs of the 2015 Project.
(f) The City is unaware of any facts or circumstances which would cause it to
question the reasonableness or accuracy of this Section 7 or the Declaration, or its
compliance with any of the covenants herein or therein contained
8. The seal impressed on this Certificate and on the Series 2015 Bond is the true and
only official corporate seal of the City.
WITNESS our hands on behalf of the City as of this 29th day of June, 2015.
I
CITY OF BOZEMAN, MONTANA
By a ��
And (Vw"
City Clerl
An
City�Administi I e Service irector
$1,815,000
Stormwater System Revenue Bond
(DNRC Water Pollution Control State Revolving Loan Program), Series 2015
City of Bozeman, Montana
CERTIFICATE AND RECEIPT
OF CITY ADMINISTRATIVE SERVICES DIRECTOR
I, the undersigned, being the duly qualified and acting City Administrative Services
Director of the City of Bozeman, Montana (the "City"), hereby certify and acknowledge that on
the date of this instrument, I received from the Department of Natural Resources and
Conservation of the State of Montana (the "DNRC"), as purchaser thereof (the "Purchaser"), the
amount of $229,750, as the first advance of the principal amount of the Stormwater System
Revenue Bond (DNRC Water Pollution Control State Revolving Loan Program), Series 2015, of
the City (the "Series 2015 Bond"), dated, as originally issued, as of the date hereof, and issued in
the maximum principal amount of $1,815,000. All of the advance received on the date hereof
shall be used for construction costs and to fund a portion of the deposit to the Reserve Account.
The Series 2015 Bond bears interest at the rate of two percent (2.00%) per annum. In addition,
the City shall pay an Administrative Expense Surcharge and a Loan Loss Reserve Surcharge on
the outstanding principal amount of the Bond each at the rate of twenty-five hundredths of one
percent (0,25%) per annum.
As Bond Registrar designated under Resolution No. 4607, adopted by the City
Commission on June 15, 2015, authorizing the issuance of the Series 2015 Bond, I further certify
that on the date hereof the Bond Registrar has authenticated and delivered the Series 2015 Bond
to the Purchaser. I finther certify that the Series 2015 Bond so authenticated and delivered was
registered, on the face thereof and also in the bond register maintained by the Bond Registrar, in
the name of the Purchaser.
WITNESS my hand officially as such Administrative Services Director as of this 29th
day of June, 2015.
77Administr6eServices Airector
$1,815,000
Stormwater System Revenue Bond
(DNRC Water Pollution Control State Revolving Fund Program), Series 2015
City of Bozeman, Montana
CERTIFICATE OF PUBLIC WORKS DIRECTOR
I, the undersigned, hereby certify that I am the Public Works Director for the City of
Bozeman, Montana (the "City"), with respect to the costs of designing, acquiring, and installing
improvements to the City's municipal Stormwater system identified in the Corrective Measures
Assessment relating to the Bozeman Story Mill Landfill, to include corrective measures undertaken
at or in relation to the Bozeman Story Mill Landfill, such as installation of and/or construction of
wells, pipes and plumbing, flare stations, blowers, concrete pads, and related improvements in and
around the Story Mill Landfill site (the "2015 Project") to the City's municipal stormwater system
(the "System") and further certify that:
System.
items:
1. I am familiar with the plans, specifications and contract documents for the City's
2. The estimated cost of the 2015 Project is $1,815,000 and consists of the following
Debt Service Reserve
Bond Counsel & Related costs
Preliminary Engineering
Engineering/Arch. Design
Construction
Contingency
TOTAL PROJECT COSTS
$ 58,288.00
22,000.00
288,762.00
400,000.00
896,000.00
149,950.00
$1,815,000.00
3. The 2015 Project is being funded by the issuance of the City's Stormwater System
Revenue Bond (DNRC Water Pollution Control State Revolving Fund Program), Series 2015, in the
maximum principal amount of $1,815,000 (the "Series 2015 Bond").
4. Based upon my review of the plans, specifications and contract documents, it is my
opinion that the 2015 Project can be constructed to completion by the use of the funds described in
paragraph 3 hereof.
5. The 2015 Project been designed in accordance with the design criteria, guidelines and
standards established by the Montana Department of Environmental Quality.
Dated this 29th day of June, 2015,
CITY OF BOZEMAN, MONTANA
By:
Publ' Works Director
$1,815,000
Stormwater System Revenue Bond
(DNRC Water Pollution Control State Revolving Fund Program), Series 2015
City of Bozeman, Montana
CERTIFICATE OF CITY REGARDING COVERAGE
We, the undersigned, the duly qualified Mayor, the City Administrative Services
Director, and the Cleric of the Commission of the City of Bozeman, Montana (the "City"),
provide this Certificate on behalf of the City in connection with the issuance by the City of its
Stormwater System Revenue Bond (DNRC Water Pollution Control State Revolving Loan
Program), Series 2015, to be issued in the maximum principal amount of $1,815,000 (the "Series
2015 Bond") pursuant to Resolution No. 4607 adopted by the City Commission on June 15, 2015
(the "Resolution"). Terms used with initial capital letters but not defined herein have the
meanings given them in the Resolution. The proceeds of the Series 2015 Bond are expected to
be sufficient to pay all costs of the project described on Appendix A of the Resolution (the
"Project"), to pay costs of issuance of the Series 2015 Bond, and to fund the reserve amount
securing the Series 2015 Bond. The Series 2015 Bonds are payable solely from the Net
Revenues (as defined in the Resolution) of the municipal stormwater system of the City (the
"System") pledged for the payment thereof, which Net Revenues equal the sum of Revenues less
Operating Expenses plus Pledged Stormwater Mitigation Property Tax Revenues,
1. The following are the proposed expenses for the operation and maintenance of the
System for fiscal year ending June 30, 2016, These costs will be incorporated by the City into its
Fiscal Year 2016 budget and the total costs of operation and maintenance are as set forth below:
Personnel Services $364,708.00
Operating 174,597.00
Total O&M: $539,305.00
It is the opinion of the City that this budget is reasonable for the operation and maintenance of
the overall System, as improved by the Project.
2. We have reviewed the rates and charges schedules for the City for its System in
effect as of the date hereof. Based upon such review and the budget attached hereto as Exhibit A,
it is our opinion that Net Revenues for each Fiscal Year during the term of the Series 2015 Bond
will equal at least 110% of the maximum principal and interest requirements on the Series 2015
Bond in the current or any future Fiscal Year of the City, as shown below.
Anticipated Revenue $825,000.00
Less Operation and Maintenance Costs (539,305.00)
Net Revenues $285,695.00
Maximum Annual Debt Service on Series 2015 Bond $116,575.00
Required Coverage ($116,575 x 110%) $128,233.00
3. The above calculations do not take into account the Pledged Stormwater
Mitigation Property Tax Revenues, where are expected to be segregated and applied by the City
to the Fiscal Year debt service on the Series 2015 Bond for the term of such bond.
Dated this 29th day of June, 2015.
2
CITY OF BOZEMAN, MONTANA
B v �-
By
M 6'
By:
Cit Administrate ervices Virector
By. dw� -01 W 94�
Clerk I rj
mission
66 FY16 CITY MANAGER RECOMMENDED BUDGET
BOZEMAN 63 FY16 CITY MANAGER RECOMMENDED BUDGET
STATE OF MONTANA ) CERTIFICATE AS TO ORGANIZATION
) ss OF CITY OF BOZEMAN, MONTANA
COUNTY OF GALLATIN )
The undersigned, being the duly qualified and acting City Clerk of the City of Bozeman,
in the County and State aforesaid, and as such having custody of and access to the books and
records of the City relating to the matters hereinafter stated, hereby certifies that, as appears by
such books and records and as known to me, the following statements are true and correct.
The City has been a duly organized city for more than 125 years and is now
governed by the general laws of the State relating to cities of the first class, operating under the
Commission -Manager form of government. Its population, according to the 2010 United States
census, was 37,280, and its current population is estimated to be 39,860.
2. The territory included within its boundaries lies wholly in the County of Gallatin,
and comprises approximately 10,375 acres. The City is divided into 0 wards. The City is
governed by a Mayor, City Manager and four Commissioners. The following named persons
hold the offices set opposite their names and for the terms stated below:
Name . Office
Chris Kukulski City Manager -- --
Anna Rosenberry Administrative Services Director -- --
Greg Sullivan City Attorney -- --
Stacy Ulmen City Clerk -- --
Years on
Name
Office
Commission
Term Ends
Jeff Krauss
Mayor
12 years
12-31-2015
Carson Taylor
Deputy Mayor
5 years
12-31-2017
Chris Mehl
Commissioner
6 years
12-31-2017
Cynthia Andrus
Commissioner
5 years
12-31-2015
I -Ho Pomeroy
Commissioner
2 year
12-31-2017
Name . Office
Chris Kukulski City Manager -- --
Anna Rosenberry Administrative Services Director -- --
Greg Sullivan City Attorney -- --
Stacy Ulmen City Clerk -- --
Under the by-laws and ordinances of the City, regular meetings of the City
Commission are held on the first four Mondays of each month at 6:00 p.m., with the second
meeting of the month constituting a work session, and notice of special meetings is required to
be given in writing to all members in advance.
4. The following are newspapers of general circulation published in the City and the
days of their publication:
Name
Bozeman Daily Chronicle
Days of Publication
Sunday through Saturday
5. There is no litigation threatened or pending questioning the organization or
boundaries of the City or the right of any of the above-named persons to their respective offices
or questioning the right and power of the City and its officers to issue bonds for any purpose or
to levy, collect and apply taxes or other revenues for the payment of any bonds of the City.
6. The seal affixed below is the official corporate seal of the City.
WITNESS my hand and the seal of the City this 29th day of June, 2015.
� , t < > � ,
OF 13
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� SES)
1 j1�
Co. 'NX0�1
2
QI)
�_Aw U I wu�D
Ci er
Form 8038-G Information Return for Tax -Exempt Governmental Obligations
(Rev. September 2011) ► Under Internal Revenue Code section 149(e) OMB No. 1545-0720
► See separate instructions.
Department of the Treasury Caution: 11 the Issue price Is under $100,000, use Form 8038 -GC.
Internal Revenue Service
MF.F1_Rennrtina Authority If Amended Return, check here ► ❑
1 Issuer's name
2 Issuer's employer identification number (EIN)
City of Bozeman, Montana
81-6001238
3a Name of person (other than issuer) with whom the IRS may communicate about this return (see instructions)
3b Telephone number of other person shown on 3a
4 Number and street (or P.O. box if mail is not delivered to street address)
Room/suite
5 Report number (For IRS Use Only)
P.O. Box 1230
18
317
6 City, town, or post office, state, and ZIP code
7 Date of issue
Bozeman, MT 59771-1230
June 29, 2015
8 Name of issue
9 CUSIP number
Stormwater System Revenue Bond (DNRC Water Pollution Control Revolving Fund) 2015
NONE
10a Name and title of officer or other employee of the issuer whom the IRS may call for more information (see
10b Telephone number of officer or other
instructions)
employee shown on 10a
Anna Rosenberry, Administrative Services Director
406-582-2300
FUMM Tvna of Iscne (enter the issue nrirel- See the instructions and attach schedule.
1,815,000
11
12
13
14
15
16
17
18
Education . . . . . . . . . . . . . . . . . . . . . . . .
Health and hospital . . . . . . . . . . . . . . . . . . . .
Transportation . . . . . . . . . . . . . . . . . . . . . .
Public safety . . . . . . . . . . . . . . . . . . . . . . .
Environment (including sewage bonds) . . . . . . . . . . . . . .
Housing . . . . . . . . . . . . . . . . . . . . . . . .
Utilities . . . . . . . . . . . . . . . . . . . . . . . .
Other. Describe ►
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
. . . . . .
11
12
13
14
15 1,815,000 00
16
17
18
19
20
If obligations are TANS or RANs, check only box 19a ... . . . . . . . .
If obligations are BANS, check only box 19b . . . . . . . . . . . .
If obligations are In the form of a lease or installment sale, check box . . . .
. . . . ► ❑
. . . . ► ❑
. . . . ► ❑
_ =
�T
_
_ng
Description of Obligations. Complete for the entire issue for which this form is being filed.
24 Proceeds used for bond issuance costs (including underwriters' discount) , 24 22,000
turity date
�-/2035
(b) Issue price
(c) Stated redemption
price at maturity
(d) Weighted
average maturity
(e) Yield
21
1,815,000
1,815,000
11.085 years
2.4999907 %
r uses of Proceeas of trona Issue (incivaing unaerwrit:ers• aiscouni)
22
Proceeds used for accrued interest . . . . . . . . . . . . . . . . . . . .
.
22
0
00
23
1,615,000
00
23
Issue price of entire Issue (enter amount from line 21, column (b)) . . . . .
24 Proceeds used for bond issuance costs (including underwriters' discount) , 24 22,000
00
25
Proceeds used for credit enhancement . . . . . . . . . . . . 25 0
00
26
27
Proceeds allocated to reasonably required reserve or replacement fund 26 58,288
Proceeds used to currently refund prior Issues . . . . . . . . . 27 0
00
00
„ _z
28
Proceeds used to advance refund prior issues . . . . . . . . . 28 0
00
29
Total (add lines 24 through 28) . . . . . . . . . . . . . . . . . . . .
29
80,288
00
30
1,734,712
00
30 Nonrefunding proceeds of the Issue (subtract line 29 from line 23 and enter amount here)
1071
W Description of Refunded Bonds. Complete this part only for refunding bonds.
31
Enter the remaining weighted average maturity of the bonds to be currently refunded .
► years
32
Enter the remaining weighted average maturity of the bonds to be advance refunded ,
► years
33
Enter the last date on which the refunded bonds will be called (MM/DD/YYYY)
►
34
Enter the date(s) the refunded bonds were issued ► (MM/DD/YYYY)
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 63773S
Form 8038-G (Rev. 9-2011)
Form 8038-G (Rev. 9-2011)
Page 2
Miscellaneous
35
Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . . 35
0 00
36a
Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract mac.
(GIC) (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . 36a
0 00
b
Enter the final maturity date of the GIC 0-
c
c
RE
Enter the name of the GIC provider 10- RE
37
Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans
to other governmental units . . . . . . . . . . . . . . . . . . . . . . . . 37
0 00
38a
If this issue Is a loan made from the proceeds of another tax-exempt Issue, check box t ❑ and enter the following information:
b
Enter the date of the master pool obligation 0-
c
Enter the EIN of the issuer of the master pool obligation 110-
d
d
Enter the name of the issuer of the master pool obligation ►
39
If the issuer has designated the issue under section 265(b)(3)(B)(1)(III) (small issuer exception), check box . . .
.
40
If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box . . . . . . . . . . . .
. ❑
41a
If the issuer has Identified a hedge, check here I• ❑ and enter the following information:
b
Name of hedge provider
c
Type of hedge )o-
d
Term of hedge]•
42
If the issuer has superintegrated the hedge, check box . . . . . . . . . . . . . . . . . . . .
. )'- ❑
43
If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated
according to the requirements under the Code and Regulations (see instructions), check box . . . . . . .
. 0-
44
44
If the issuer has established written procedures to monitor the requirements of section 148, check box . . . .
. t
45a
If some portion of the proceeds was used to reimburse expenditures, check here t ❑✓ and enter the amount
of reimbursement . . . . . . . . . * $221,338.79
b
Enter the date the official intent was adopted 0- 05/04/2014
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge
Signature and belief, they are tr e, correct and complete. I further declare that I consent to the IRS's disclosure of the issuer's return information, as necessary to
and process this retu , o th a on tha ave authorized above.
Consent ' ` Anna Rosenberry, Admin. Services Director
igm re of issu is out d representative ate Type or print name and title
Paid Prin/ pe preparer's name Pre 's signat Date Check E]if PTIN
Preparer Dan Semmens 1461Z V self-employed P01069441
USe Only Firm's name t Dorsey & Whitney LLP Firm's EIN t 41-0223337
Firm's address t 125 Bank Street, Sulee 600, Missoul , MT 59802 Phone no. 406-721-6025
Form 8038-G (Rev. 9-2011)