HomeMy Public PortalAboutOrd. 553 Authorizing the Issuance & Sale of General Obligation Bonds"
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O R D I N A N C E N O . 5 5 3
A N O R D I N A N C E O F T H E C I T Y O F M c C A L L , V A L L E Y C O U N T Y , I D A H O ,
A U T H O R I Z I N G T H E I S S U A N C E A N D S A L E O F G E N E R A L O B L I G A T I O N B O N D S ,
S E R I E S 1 9 8 9 , I N T H E P R I N C I P A L A M O U N T O F $ 1 , 1 0 0 , 0 0 0 ; P R O V I D I N G F O R
T H E D E S I G N A T I O N , P U R P O S E , D A T E , M A T U R I T I E S , E X E C U T I O N ,
R E G I S T R A T I O N , A N D R E D E M P T I O N O F T H E B O N D S ; P R O V I D I N G F O R T H E S A L E
O F T H E B O N D S ; P R O V I D I N G F O R T H E P A Y M E N T O F P R I N C I P A L O F A N D
I N T E R E S T O N T H E B O N D S B Y T H E A N N U A L L E V Y O F T A X E S ; C R E A T I N G
C E R T A I N F U N D S A N D A C C O U N T S ; A N D P R O V I D I N G C E R T A I N C O V E N A N T S W I T H
T H E O W N E R S O F T H E B O N D S
W H E R E A S , T h e C i t y o f M c C a l l ( t h e " C i t y " ) , o f V a l l e y C o u n t y ,
I d a h o , i s a m u n i c i p a l c o r p o r a t i o n d u l y o r g a n i z e d a n d o p e r a t i n g
u n d e r t h e l a w s o f t h e S t a t e o f I d a h o ; a n d
W H E R E A S , t h e C i t y C o u n c i l ( t h e " C o u n c i l " ) o f t h e C i t y , b y
a d o p t i o n o f O r d i n a n c e N o . 5 4 4 o n A p r i l 1 3 , 1 9 8 9 , o r d e r e d a s p e c i a l
e l e c t i o n t o b e h e l d w i t h i n t h e C i t y o n J u n e 6 , 1 9 8 9 , f o r t h e
p u r p o s e o f s u b m i t t i n g t o t h e e l e c t o r s o f t h e C i t y t h e q u e s t i o n o f
w h e t h e r o r n o t t h e C i t y s h o u l d b e a u t h o r i z e d t o i n c u r a n
i n d e b t e d n e s s a n d i s s u e i t s g e n e r a l o b l i g a t i o n b o n d s i n t h e
p r i n c i p a l a m o u n t o f n o t t o e x c e e d $ 1 , 1 0 0 , 0 0 0 t o p r o v i d e f u n d s f o r
i m p r o v e m e n t s t o t h e C i t y ' s p u b l i c r e c r e a t i o n a l f a c i l i t i e s a s s e t
f o r t h i n O r d i n a n c e N o . 5 4 4 ; a n d
W H E R E A S , a t s a i d s p e c i a l e l e c t i o n , d u l y n o t i c e d , h e l d , a n d
c o n d u c t e d w i t h i n t h e C i t y o n J u n e 6 , 1 9 8 9 , t h e r e q u i s i t e t w o -
t h i r d s m a j o r i t y o f t h e q u a l i f i e d e l e c t o r s o f t h e C i t y a p p r o v e d t h e
i n c u r r i n g o f i n d e b t e d n e s s i n s a i d a m o u n t a n d f o r s a i d p u r p o s e , a n d
t h e i s s u a n c e o f g e n e r a l o b l i g a t i o n b o n d s o f t h e C i t y t h e r e f o r , a n d
t h e C o u n c i l d e s i r e s t o p r o v i d e f o r t h e i s s u a n c e a n d s a l e o f s a i d
b o n d s .
N O W , T H E R E F O R E , B E I T O R D A I N E D B Y T H E M A Y O R A N D C O U N C I L O F
T H E C I T Y O F M c C A L L , I D A H O , a s f o l l o w s :
S e c t i o n 1 : B O N D S A U T H O R I Z E D
G e n e r a l o b l i g a t i o n b o n d s o f t h e C i t y , i n f u l l y r e g i s t e r e d
f o r m , d e s i g n a t e d " C i t y o f M c C a l l G e n e r a l O b l i g a t i o n B o n d s , S e r i e s
1 9 8 9 " ( t h e " B o n d s " ) , i n t h e a g g r e g a t e p r i n c i p a l a m o u n t o f
$ 1 , 1 0 0 , 0 0 0 , a r e h e r e b y a u t h o r i z e d t o b e i s s u e d , s o l d , a n d
d e l i v e r e d p u r s u a n t t o t h e m u n i c i p a l b o n d l a w s o f t h e S t a t e o f
I d a h o , p a r t i c u l a r l y S e c t i o n s 5 0 - 1 0 1 9 t h r o u g h 5 0 - 1 0 2 6 A , i n c l u s i v e ,
a n d T i t l e 5 7 , C h a p t e r s 2 a n d 9 , I d a h o C o d e .
S e c t i o n 2 : P U R P O S E
T h e B o n d s a r e b e i n g i s s u e d f o r t h e p u r p o s e o f p r o v i d i n g f u n d s
t o p a y t h e c o s t o f a c q u i s i t i o n a n d c o n s t r u c t i o n o f c a p i t a l
P a g e 1
improvements consisting generally of the acquisition and improve-
ment of land for recreational facilities, construction and
improvement of recreational trails and bridges, park improvements,
and other recreational improvements, together with the costs of
architectural and engineering, legal, and fiscal services, and
other costs and fees incident thereto.
Section 3: DESCRIPTION OF BONDS
The Bonds shall be in denominations of $5,000 each or
integral multiples thereof, shall be issued only in fully
registered form, and shall be substantially in the form set forth
in Exhibit "A" attached hereto and by this reference incorporated
herein. The Bonds shall be numbered separately in a consecutive
series, in the manner and with any additional designation as the
Bond Registrar (hereinafter defined) deems necessary for the
purposes of identification. Interest on the Bonds shall be
calculated on the basis of a 360 -day year and twelve 30 -day
months. The Bonds shall be dated and shall mature in accordance
with a schedule as shall be set forth in a resolution hereafter
approved by the Council.
Section 4: INTEREST ON BONDS
All of the Bonds shall bear interest at a rate or rates of
not to exceed nine percent (9%) per annum or at any lower rate or
rates as shall be stated in the successful bid proposal for the
Bonds, which interest shall be payable semiannually on such dates
as shall be set forth in the resolution authorized and referred to
above, until their respective dates of maturity or prior
redemption. Bidders will be permitted to bid different rates of
interest. The maximum differential between the highest and lowest
rate shall not exceed three percent (3%) per annum. All Bonds
maturing at the same time shall bear the same rate of interest.
Section 5: PAYMENT OF BONDS
Both the principal of and interest on the Bonds shall be
payable in lawful money of the United States of America to the
registered owners thereof, whose names and addresses shall appear
on the registration records of the City (the "Bond Register"),
maintained by the Bond Registrar.
Principal of each Bond shall be paid to the registered owner
thereof, upon presentation and surrender of such Bond by the
registered owner at the principal corporate trust office of the
Bond Registrar, on or after the date of maturity or prior
redemption.
Payment of each installment of interest shall be made to the
registered owner whose name appears on the Bond Register on the
fifteenth day of the calendar month next preceding the interest
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payment date, and shall be paid by check or draft of the Bond
Registrar mailed to such registered owner on the due date at the
address appearing on the Bond Register, or at such other address
as may be furnished in writing by such registered owner to the
Bond Registrar.
Section 6: EXECUTION OF BONDS
Without unreasonable delay, the City shall cause the Bonds to
be prepared, executed, and delivered, which Bonds shall be litho-
graphed or printed with engraved or lithographed borders. The
Bonds shall be signed by the Mayor, countersigned by the City
Treasurer, and attested by the City Clerk (all of which signatures
shall be by facsimile), and shall have a facsimile of the seal of
the City imprinted thereon. The Bonds shall then be delivered to
the Bond Registrar for authentication.
Until the Bonds are prepared, the City may, if deemed
necessary by the Mayor, utilize a temporary bond which shall be
typewritten, and which shall be delivered to the purchaser of the
Bonds in lieu of definitive bonds, subject to the same provisions,
limitations, and conditions as the Bonds. The temporary bond
shall be dated as of the date of the Bonds, shall be in the
denomination of $1,100,000, shall be numbered T-1, shall be
substantially of the tenor of the Bonds, but with such omissions,
insertions, and variations as may be appropriate to temporary
bonds, and shall be manually signed by the Mayor, the Treasurer,
the Clerk, and the Bond Registrar, and shall have the seal of the
City impressed thereon.
In case any of the officers who shall have signed or counter-
signed any of the Bonds shall cease to be such officer or officers
of the City before the Bonds so signed or countersigned shall have
been authenticated or delivered by the Bcnd Registrar, or issued
by the City, such Bonds may nevertheless be authenticated,
delivered, and issued and, upon such authentication, delivery, and
issue, shall be as binding upon the City as though those who
signed and countersigned the same had continued to be such
officers of the City. Any Bond may also be signed and
countersigned on behalf of the City by such persons as at the
actual date of execution of such Bonds shall be the proper
officers of the City although at the original date of such Bond
any such person shall not have been such officer of the City.
Only such of the Bonds as shall bear thereon a certificate of
authentication in the form set forth in Exhibit "A," manually
executed by the Bond Registrar, shall be valid or obligatory for
any purpose or entitled to the benefits of this Ordinance, and
such certificate of authentication shall be conclusive evidence
that the Bonds so authenticated have been duly executed, authen-
ticated, and delivered hereunder and are entitled to the benefits
of this Ordinance.
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Section 7: BOND REGISTRAR
The Corporate Trust Department of West One Bank, Idaho, N.A.,
Boise, Idaho, is hereby appointed as bond registrar, transfer
agent, and authenticating and paying agent, and is herein referred
to as the "Bond Registrar." The Bond Registrar shall keep, or
cause to be kept, at its principal corporate trust office, suffi-
cient books for the registration and transfer of the Bonds which
shall at all times be open to inspection by the City. The Bond
Registrar is authorized, on behalf of the City, to authenticate
and deliver the Bonds issued or transferred in accordance with the
provisions of such Bonds and this Ordinance and to carry out all
of the Bond Registrar's powers and duties under this Ordinance.
The Bond Registrar shall be responsible for its represen-
tations contained in the Certificate of Authentication on the
Bonds. The Bond Registrar may become the owner of the Bonds with
the same rights as it would have if it were not the Bond
Registrar.
The Bonds may be transferred only upon the books for the
registration and transfer of Bonds, upon the surrender thereof at
the principal corporate trust office of the Bond Registrar,
together with a form of transfer duly executed by the Registered
Owner or his attorney duly authorized in writing substantially in
the form set forth in the form of Bond referred to in Section 3 -
hereof. Upon the transfer of any Bond, there shall be issued in
the name of the transferee or transferees a new fully registered
Bond of the same denomination, maturity, and interest rate as the
surrendered Bond. The new Bond shall bear the same date as the
date of the surrendered Bond, but shall bear interest from the
immediately preceding interest payment date to which interest has
been paid cr duly provided for. This section is intended to
provide for a system of registration as provided by Title 57,
Chapter 9, Idaho Code.
The Bond Registrar shall not be required to exchange or
transfer any Bond within fifteen (15) days of an interest payment
date or, in the case of any redemption of Bonds, within fifteen
(15) days of the redemption date.
Section 8: REDEMPTION
The Bonds shall be subject to call and redemption in advance
of their stated maturity at such times and prices as shall here-
after be approved by resolution of the Council.
Notice of redemption of any Bonds shall be given by mailing
of notice by the Bond Registrar to the Registered Owner of any
Bond being called for redemption not less than thirty nor more
than forty-five days prior to the redemption date by first class
Page 4
mail, postage prepaid, at the address appearing on the Bond
Register, or at such other address as may be furnished in writing
by such Registered Owner to the Bond Registrar. The foregoing
requirements shall be deemed to be complied with when notice is
mailed as provided herein, regardless of whether or not it is
actually received by the owner of such Bond. The Bonds so called
for redemption shall cease to accrue interest on the specified
redemption date, provided funds for such redemption are on deposit
at the place of payment at such time, and shall not be deemed to
be outstanding as of such redemption date.
Section 9: DATE OF SALE
The Bonds shall be sold at public sale on such date as shall
hereafter be established by resolution of the Council. The
Council shall meet at 7:00 P.M. on said date, at City Hall,
McCall, Idaho, for the purpose of receiving sealed bids for the
purchase of the Bonds. The bids will be publicly opened,
examined, and declared at such time and place, and considered at
the meeting of the Council on said date. All bids shall be
accompanied by a good faith deposit in the amount of $55,000, in
the form of a cashier's or certified check payable to the
Treasurer of the City. At said meeting, the Council shall accept
the bid providing the lowest net interest cost to the City, and
shall return the deposits of all other bidders. Said sale shall
be held, and notice thereof given, in accordance with Title 57,
Chapter 2, Idaho Code.
Section 10: NOTICE OF SALE
The Notice of Sale, as prepared by the City's bond counsel,
in conjunction with the City's financial consultant, substantially
in the form attached hereto as Exhibit "B" and by this reference
incorporated herein, is hereby approved. The Mayor and Clerk are
hereby directed to execute the Notice of Sale on behalf of the
City, and to call for bids for the sale of the Bonds, such bids to
be received on the date specified in the resolution referred to in
Section 9, all in the manner more particularly set forth in the
Notice of Sale. The Notice of Sale shall be published in a
newspaper of general circulation once a week for three (3) succes-
sive weeks, the first publication being at least twenty-one (21)
full days prior to the date of sale, counting the date of publica-
tion as the first of such twenty-one days. The City's financial
consultant is authorized and directed to cause a Notice of Sale
and an Official Statement pertaining to the sale of the Bonds,
upon prior approval of the Council, to be distributed to such
municipal bond broker-dealers, such banking institutions, and to
such other persons as may be interested in purchasing the Bonds
herein offered for sale. The expanded Notice of Sale substan-
tially in the form attached hereto as Exhibit "C" is hereby
approved for use in conjunction with the Official Statement.
Page 5
Section 11: CAPITAL IMPROVEMENT FUND
There is hereby created and shall be maintained in the office
of the Treasurer of the City, a fund and account separate and
distinct from all other funds of the City, to be known as the
"City of McCall Capital Improvement Fund" (the "Capital
Improvement Fund"), or such other designation as conforms to
banking requirements and good accounting practices, into which
shall be deposited all of the proceeds of the sale of the Bonds,
except accrued interest, if any, which shall be deposited into the
Bond Fund, hereinafter created. The Bond proceeds shall be used
to pay for the costs of the capital improvements heretofore
authorized. In the event there are funds remaining in said
Capital Improvement Fund after all expenditures for improvements
as set forth hereinabove, any surplus funds shall be deposited
into the Bond Fund and used for the payment of principal of and
interest on the outstanding Bonds as the same shall accrue.
Section 12: TAX LEVY
The Bonds are general obligations of the City, and as such
the full faith and credit of the City are hereby pledged for their
payment. The officers now or hereafter charged by law with the
duty of levying taxes for the payment of said Bonds and interest
thereon shall, in the manner provided by law, make annual levies,
unlimited as to rate or amount, upon all of the taxable property
within said City sufficient in amount to meet the annual payments
of principal and the semiannual payments of interest maturing and
accruing as set forth in Sections 3 and 4 hereinabove.
Section 13: GENERAL OBLIGATION BOND FUND
The proceeds of taxes levied without limitation as to rate or
amount to pay the principal of and interest on the Bonds, as set
forth above, shall be kept by the Treasurer of the City in a
special fund, which is hereby created, separate and apart from all
other funds, and which is hereby designated "City of McCall
General Obligation Bonds, Series 1989, Bond Fund" (the "Bond
Fund"), or such other designation conforming to banking require-
ments and good accounting practices, which Bond Fund shall be used
for no other purpose than the payment of the principal of and
interest on the Bonds as the same fall due. Said Bond Fund shall
be maintained by the City Treasurer until the principal of and
interest on said Bonds have been paid in full. Not less than 15
days prior to any payment date of interest, or principal and
interest, as the case may be, the Treasurer shall cause to be
transferred from the Bond Fund to the Bond Registrar the amount of
interest, or principal and interest, then falling due.
Page 6
Section 14: LOST, STOLEN, MUTILATED OR DESTROYED BONDS
In case any Bond shall be lost, stolen, mutilated, or
destroyed, the Bond Registrar may authenticate and deliver a new
Bond of like date, denomination, number, interest rate, maturity,
tenor, and effect to the Registered Owner thereof upon the
Registered Owner's paying the expenses and charges of the City in
connection therewith and upon his filing with the Bond Registrar
and the City evidence satisfactory to the Bond Registrar and the
City that such Bond was actually lost, stolen, mutilated or
destroyed, and of his ownership thereof, and upon furnishing the
Bond Registrar and the City with indemnity satisfactory to the
Bond Registrar and the City.
Section 15: PROVISION FOR DEFEASANCE OF THE BONDS
In the event that money or direct obligations of, or
obligations guaranteed by, the United States of America, as
provided by Section 57-504, Idaho Code, as it now reads or is
hereafter amended, maturing or having guaranteed redemption prices
at the option of the owner at such time or times and bearing
interest to be earned thereon in such amounts as are sufficient
(together with any resulting cash balances) to redeem and retire
the Bonds in accordance with their terms, are hereafter
irrevocably set aside in a special account and pledged to effect
such redemption and retirement, then no further payments need be
made into the Bond Fund for the payment of the principal of and
interest on the Bonds, and such Bonds and interest accrued thereon
shall then cease to be entitled to any lien, benefit or security
of this Ordinance, except the right to receive the funds so set
aside and pledged, and such Bonds and interest accrued thereon
shall no longer be deemed to be outstanding hereunder.
Section 16: COVENANTS OF THE CITY
The City further covenants and agrees:
A. The Bonds are qualified tax-exempt obligations within
the meaning and for the purposes of Section 265(b)(3) of the
Internal Revenue Code of 1986 (the "Code"), and the City will not
designate more than $10,000,000, including the Bonds, as qualified
tax-exempt obligations during the calendar year.
B. None of the proceeds of the Bonds will be used directly
or indirectly (i) to make or finance loans to persons or (ii) in
any trade or business carried on by any person (other than use as
a member of the general public). For purposes of the preceding
sentence, the term "person" does not include a government unit
other than the United States or any agency or instrumentality
thereof, and the term "trade or business" means any activity
carried on by a person other than a natural person.
Page 7
C. The City has general taxing powers. The Bonds are not
"private activity bonds" within the meaning of Section 141 of the
Code. 95% or more of the net proceeds of the Bonds are to be used
for the local governmental activities of the City. The City has
no subordinate entities. The City has not issued, and will not
issue, tax-exempt obligations in calendar year 1989 in a face
amount which exceeds $5,000,000. Accordingly, under Section
148(f)(4)(C) of the Code, the City is not required to pay rebates
to the United States under Section 148(f) of the Code.
D. The City will take no action which would cause the Bonds
to become arbitrage bonds within the meaning of Section 148 of the
Code.
E. The City will comply with the information reporting
requirements of Section 149(e) of the Code.
F. The City has no other general obligation bonds
outstanding. The Bonds do not exceed, nor will the City issue,
while any Bonds are outstanding, additional general obligation
bonds in an amount which, together with any Bonds then
outstanding, will exceed, in aggregate principal amount, two
percent (2%) of the market value for assessment purposes of real
and personal property in the City within the meaning of Section
50-1019, Idaho Code.
Section 17: RATIFICATION
All actions (not inconsistent with the provisions of this
Ordinance) heretofore taken by the Council and its employees, with
respect to the acquisition, construction and installation of the
capital improvements, and the issuance, sale and delivery of the
Bonds, are hereby in all respects ratified, approved, and
confirmed.
Section 18: SEVERABILITY
If any sentence, phrase, paragraph, section, or subsection of
this Ordinance shall be declared by any court of competent
jurisdiction to be contrary to law, then the same shall be deemed
separable from the remainder of this Ordinance and shall in no way
affect the validity of the other provisions of, or of any Bonds
issued pursuant to, this Ordinance.
Section 19: REPEALER
All ordinances or parts thereof in conflict herewith are, to
the extent of such conflict, hereby repealed, and shall have no
further force or effect.
Page 8
Section 20: EFFECTIVE DATE
This Ordinance, or a summary thereof in compliance with
Section 50-901A, Idaho Code, shall be published once in the
official newspaper of the City, and shall take effect immediately
upon its passage, approval, and publication.
DATED this 13th day of July, 1989.
ATTEST:
( S E A L )
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CITY OF McCALL
Valley County, Idaho
By
�itayor
STATE OF IDAHO )
)
COUNTY OF VALLEY)
CERTIFICATE OF RECORDING OFFICER
ss
I, the undersigned, the duly appointed, qualified, City Clerk of
McCall City, Idaho, do hereby certify the following:
1. That pursuant to the provisions of Section 50-207, Idaho
Code, I keep a correct journal of the proceedings of the Council of
McCall City, Idaho, and that I am the statutory custodian of all laws,
ordinances and resolutions of said City.
2. That the attached Ordinance No. 553 is a true and correct
copy of an ordinance passed at a regular meeting of the Council of
McCall City held on ,,/ , 19.7, and duly recorded in my
office; and 0 �"
3. That said regular meeting was duly convened and held in all
respects in accordance with law and to the extent required by law, due
and proper notice of such meeting having been given; that a legal
quorum was present throughout the meeting and that a legally
sufficient number of members of the Council of McCall City voted in
the proper manner and for the passage of said ordinance; and that all
other requirements and proceedings incident to the proper adoption and
passage of said ordinance have been duly fulfilled, carried out and
observed; and that I am authorized to execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the City of McCall, Idaho, this /5-1g" day of
(Ica, 19 87 .
U
(Seal of the City)
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Arthur J. SzJimidt, City Clerk