HomeMy Public PortalAboutOrd. 554 Revenue Bonds for Public Golf Course ImprovementsORDINANCE NO. 554
AN ORDINANCE OF THE CITY OF McCALL, IDAHO, AUTHORIZING THE
ISSUANCE AND SALE OF REVENUE BONDS IN THE PRINCIPAL AMOUNT OF
$450,000 TO PAY THE COST OF CONSTRUCTION AND INSTALLATION OF
CERTAIN PUBLIC GOLF COURSE IMPROVEMENTS; DESCRIBING SAID BONDS;
SPECIFYING THE DATE, FORM, MATURITIES, REGISTRATION, AND AUTHEN-
TICATION OF SAID BONDS; FIXING THE MAXIMUM RATE OF INTEREST ON
SAID BONDS; ESTABLISHING THE DATE, TIME, AND PLACE OF SALE OF SAID
BONDS; PROVIDING FOR THE COLLECTION AND DISPOSITION OF REVENUE;
ESTABLISHING FUNDS AND ACCOUNTS; PROVIDING FOR THE PAYMENT OF THE
PRINCIPAL OF AND INTEREST ON SAID BONDS; PROVIDING OTHER
COVENANTS; AND PROVIDING FOR OTHER MATTERS RELATING THERETO
WHEREAS, the City of McCall, of Valley County, Idaho (the
"City"), is a municipal corporation duly organized and existing
under the laws of the State of Idaho; and
WHEREAS, the City is authorized and empowered by Article 8,
Section 3, of the Idaho Constitution and by Idaho Code Sections
50-1027 through 50-1042 (the "Revenue Bond Act") to issue revenue
bonds to finance all or part of the cost of acquisition,
construction, and installation of recreational facilities of the
City; and
WHEREAS, the City Council (the "Council") of the City, by
adoption of Ordinance No. 545 on April 13, 1989, ordered a special
bond election to be held within the City on June 6, 1989, for the
submission to the qualified electors of the City the question of
whether or not the City should be authorized to issue its revenue
bonds in an amount not to exceed $450,000 in order to provide
funds for certain capital improvements and betterments to the
public golf course of the City; and
WHEREAS, the requisite two-thirds majority of the qualified
electors of the City, voting at said special bond election of June
6, 1989, authorized the issuance of revenue bonds for such purpose
in the amount of not more than $450,000.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF
THE CITY OF McCALL, IDAHO, as follows:
Section 1: DEFINITIONS
As used in this Ordinance, the following words shall have the
following meanings:
A. Acquisition or Acquire includes the opening, laying out,
establishment, purchase, construction, securing, installation,
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reconstruction, lease, gift, grant from the Federal Government,
the State, any public body therein or any person or entity, the
condemnation, transfer, option to purchase, other contract, or
other acquirement, or any combination thereof.
B. Bonds means the principal amount of $450,000 City of
McCall Recreational Revenue Bonds, Series 1989, herein authorized
to be issued, sold, and delivered.
C. Bond Fund means the "City of McCall Recreational Revenue
Bond Fund" created by Section 14 of this Ordinance.
D. Bond Register means the registration books on which are
maintained the names and addresses of the owners or nominees of
the owners of the Bonds.
E. Bond Registrar means the bond registrar, transfer agent,
and authenticating and paying agent appointed and designated in
Section 6 of this Ordinance.
F. Capital Improvement Fund means the "City of McCall Golf
Course Capital Improvement Fund" created by Section 12 of this
Ordinance.
G. City means the City of McCall, Valley County, Idaho.
H. City Clerk means the de facto or de jure Clerk of the
City, or other officer of the City who is the custodian of the
seal of the City and of the records of the proceedings of the
City, or his/her successor in functions, if any.
I. Cost of Proiect or any phrase of similar import, means
all or any part designated by the Council of the costs of the
Project, or interest therein, which costs, at the option of the
Council, may include all or any part of the incidental costs
pertaining to the Project, including, without limitation:
(1) Preliminary expenses advanced by the City from
funds available for the use therefor, or from any other
source, with approval of the Council, or any combination
thereof;
(2) The costs of making surveys, audits, preliminary
plans, other plans, specifications, estimates of costs and
other preliminaries;
(3) The costs of appraising, printing, estimates,
advice, services of engineers, architects, financial
consultants, attorneys at law, clerical help, or other agents
or employees;
(4) The costs of contingencies;
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(5) The costs of the issuance of the Bonds;
(6) The costs of funding any short-term financing, bond
anticipation notes, and other temporary loans pertaining to
the Project and of the incidental expenses incurred in con-
nection with such loans;
(7) The costs of any properties, rights, easements, or
other interest in properties, or any licenses, privileges,
agreements and franchises; and
(8) All other expenses necessary or desirable and
appertaining to the Project, as estimated or otherwise
ascertained by the Council.
J. Council means the City Council of the City.
K. Estimated Net Revenues means, for any year, the
estimated Revenues of the Facility for such year less the
estimated Operation and Maintenance Expenses for such year, based
upon estimates prepared by an independent public accountant
approved by the City. In computing Estimated Net Revenues,
Revenues of the Facility may be adjusted as necessary to reflect
any changed schedule of rates and charges.
L. Facility means the public golf course facility of the
City, as the same now exists, including its assets, real and
personal, tangible and intangible, as it may later be added to,
extended, and improved by the Project or otherwise, and shall
include greens, fairways, buildings, structures, and other income
producing golf course facilities from the operation of or in
connection with which the revenues from which the payment of the
Bonds to be issued hereunder will be derived, and all lands
appertaining thereto, including, without limitation, any Improve-
ment to be acquired with the proceeds of the Bonds.
M. Improvement or Improve includes the construction,
extension, widening, lengthening, betterment, alteration,
reconstruction, or other major improvement, or any combination
thereof, of any properties pertaining to the Project or an
interest therein, but does not mean general maintenance or repair.
N. Mayor means the de facto or de jure Mayor of the City,
or his/her successor in functions, if any.
O. Net Revenues means Revenue of the Facility after the
deduction of Operation and Maintenance Expenses.
P. Operation and Maintenance Expenses or any phrase of
similar import means all reasonable and necessary current expenses
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of the City, paid or accrued, of operating, maintaining, and
repairing the Facility or of levying, collecting, and otherwise
administering the Net Revenues for the payment of the Bonds; and
the term includes (except as limited by contract or otherwise
limited by law) without limiting the generality of the foregoing:
(1) Engineering, auditing, reporting, legal, and other
overhead expenses of the various City departments directly
relating and reasonably allocable to the administration of
the Facility;
(2) Fidelity bonds and property and liability insurance
premiums appertaining to the Facility, or a reasonably
allocable share of a premium of any blanket bond or policy
pertaining thereto;
(3) Payments to pension, retirement, health, and
hospitalization funds and other insurance;
(4) Any taxes, assessments, excise taxes, or other
charges which may be lawfully imposed on the City, the
Facility, revenues therefrom, or any privilege in connection
with their operation;
(5) The reasonable charges of the bond registrar,
fiscal or paying agent, commercial bank, trust bank, or other
depository bank appertaining to the Bonds issued by the City
or appertaining to the Project, if any;
(6) Contractual services, professional services,
salaries, other administrative expenses, and the cost of
materials, supplies, repairs, and labor, appertaining to the
issuance of the Bonds and to the ordinary operation of the
Facility; and
(7) All other administrative, general, and commercial
expenses.
Q. Proiect means •the golf course improvement project
described in Section 2 of this Ordinance.
R. Registered Owner means the purchaser or purchasers of
the Bonds and any subsequent transferee or transferees of the
Bonds.
S. Reserve Fund means the "City of McCall Recreational
Revenue Bonds, Series 1989, Debt Service Reserve Fund" created by
Section 15 of this Ordinance.
T. Revenue Fund means the "City of McCall Golf Course
Revenue Fund" created by Section 13 of this Ordinance.
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U. Revenue of the Facility means all revenues received by
the City from its Facility and may include, at the discretion of
the City, moneys derived from one, all, or any combination of
revenue sources appertaining to the Facility, including, without
limitation, rates, charges, rents, fees, and any other income
derived from the operation or ownership of, the use of services
of, or the availability of or services appertaining to, or other-
wise derived in connection with, the Facility or all or any part
of any property appertaining to the Facility.
V. Treasurer means the de facto or de jure Treasurer of the
City, or his/her successor in functions, if any.
Section 2: THE PROJECT
A. Project Description. The golf course improvement
project consists of the acquisition, construction, and installa-
tion of improvements and betterments to the City's public golf
course facility, consisting generally of the construction and
equipping of a new golf course caddy house, cart storage
facilities, landscaping, and related golf course improvements,
architectural, legal, and fiscal advisory fees, administrative
costs, and all other costs incidental thereto (the "Project"):
B. Project Changes. The Council may make changes in the
Project prior to or in the course of actual construction, provided
such changes are found necessary and desirable by the Council and
that such changes do not substantially affect or alter the plans
or the cost of the Project.
C. Costs. The costs and expenses of construction and
installation of the Project in the amount of $450,000 will be paid
from the issuance and sale of the Bonds, hereinafter described,
authorized to be issued at a special election held within the City
on June 6, 1989.
Section 3: BONDS AUTHORIZED
Fully registered recreational revenue bonds of the City,
designated "City of McCall Recreational Revenue Bonds, Series
1989" (the "Bonds"), in the aggregate principal amount of
$450,000, are hereby authorized to be issued, sold, and delivered
pursuant to the Revenue Bond Act of the State of Idaho, the same
being Sections 50-1027 through 50-1042, Idaho Code, and Chapter 9,
Title 57, Idaho Code.
The Bonds shall be in denominations of $5,000 each or
integral multiples thereof, shall be dated October 1, 1989, shall
be issued only in fully registered form, shall be payable in order
of maturity, and shall be substantially in the form set forth in
Exhibit "A" which is annexed hereto and by reference incorporated
herein. The Bonds shall be numbered separately in a consecutive
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series, in the manner and with any additional designation as the
Bond Registrar 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 mature on
October first of each year in the amounts set forth in the
following schedule:
Maturity Date Principal Amount
October 1, 1990
October 1, 1991
October 1, 1992
October 1, 1993
October 1, 1994
October 1, 1995
October 1, 1996
October 1, 1997
October 1, 1998
October 1, 1999
October 1, 2000
October 1, 2001
October 1, 2002
October 1, 2003
October 1, 2004
$ 15,000
20,000
20,000
20,000
25,000
25,000
25,000
30,000
30,000
35,000
35,000
40,000
40,000
45,000
45,000
The Bonds shall bear interest at a net effective rate of not
to exceed nine percent (9.0%) per annum or at any lesser rate or
rates as shall be stated in the successful bid proposed for the
Bonds, which interest shall be payable on April 1, 1990, and
semiannually on each October first and April first thereafter,
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 (3.0%) per annum. All Bonds maturing at the
same time shall bear the same rate of interest. None of the Bonds
shall be sold at less than par plus accrued interest, nor shall
any discount or commission be paid to the purchaser of the Bonds.
Section 4: PLACE AND MANNER OF PAYMENT
Both principal of and interest on the Bonds shall be payable
in lawful money of the United States of America to the Registered
Owner thereof whose name and address appear on the Bond Register
maintained by the Bond Registrar.
Payment of each installment of interest on the Bonds shall be
made on its semiannual due date to the Registered Owner whose name
appears on the Bond Register on the 15th day of the calendar month
next preceding the interest payment date, at the address appearing
on the Bond Register, and shall be paid by check or draft of the
Bond Registrar mailed to such Registered Owner on the due date at
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such address, or at such other address as may be furnished in
writing by such Registered Owner to the Bond Registrar. Interest
shall be calculated on the basis of a 360 -day year and twelve 30 -
day months.
Principal of the Bonds shall be payable to the Registered
Owner upon presentation and surrender of the Bonds on the date of
maturity or prior redemption, at the principal corporate trust
office of the Bond Registrar.
Section 5: EXECUTION OF BONDS
The City shall cause the Bonds to be prepared, executed,
authenticated, and delivered. The Bonds shall be lithographed or
printed with engraved or lithographed borders. The Bonds shall be
signed by the Mayor, countersigned by the Treasurer, and attested
by the City Clerk (all of which signatures shall be by facsimile),
and the facsimile seal of the City shall be 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 $450,000, 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 City 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 Bond 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
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such certificate of authentication shall be conclusive evidence
that the Bonds so authenticated have been duly executed,
authenticated, and delivered hereunder and are entitled to the
benefits of this Ordinance.
Section 6: 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,
sufficient 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 transferred or exchanged in
accordance with the provisions of the 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
representations 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 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 or bonds of
any authorized denomination or denominations and of the same
maturity and interest rate, and of the same aggregate principal
amount, as the surrendered bond. The new bond or bonds 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 or fully provided for.
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.
This Section is intended to provide the system of registra-
tion required by Chapter 9, Title 57, Idaho Code.
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Section 7: DEFEASANCE AND REDEMPTION
In the event that money or direct obligations of, or obliga-
tions guaranteed by, the United States of America, maturing or
having guaranteed redemption prices at the option of the owner at
such 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 the
City shall not be required to make further payments 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 the Bond
Ordinance other than 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.
Bonds maturing on or before October 1, 1997, shall not be
subject to call or redemption prior to their stated dates of
maturity. On any principal payment date on or after October 1,
1997, at the election of the City, Bonds maturing on or after
October 1, 1998, shall be subject to redemption, in whole or in
part, in inverse order of maturity (and by lot selected by the
Bond Registrar within a maturity), upon notice as hereinafter
provided, at par plus accrued interest to the redemption date.
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
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 8: DATE OF SALE
The Bonds shall be sold at public sale on September 14, 1989.
The Council shall meet at 7:00 P.M., Mountain Daylight Time, on
said date, at the usual meeting place of the Council, 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 a
meeting of the Council on said date. All bids shall be
accompanied by a good faith deposit in the amount of $22,500, in
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the form of a cashier's check 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.
Section 9: NOTICE OF SALE
The notice of Sale annexed 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 within the City
once a week for three (3) successive weeks, the first publication
being at least twenty-one (21) full days prior to the date of
sale, counting the date of publication 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 substantially in the form attached hereto
as Exhibit "C" is hereby approved for use in conjunction with the
Official Statement.
Section 10: CHARGES
The City has established, may from time to time revise, and
shall maintain and collect fees and charges for the use of the
public golf course Facility, which fees and charges shall be
collected from the users thereof.
Section 11: PLEDGE OF REVENUES
The Net Revenues of the Facility are hereby pledged for the
payment of the Bonds, and shall be used and applied in the order
of priority provided in Section 13 of this Ordinance.
The City shall establish, maintain, revise as necessary, and
collect charges sufficient, with other revenues received, to
provide Net Revenues equal to not less than 1.20 times the average
annual debt service on the Bonds.
Section 12: THE CAPITAL IMPROVEMENT FUND
There is hereby created a special fund and account known as
the "City of McCall Golf Course Capital Improvement Fund" (the
"Capital Improvement Fund"), into which shall be deposited all of
the proceeds of the sale of the Bonds, to be used and applied for
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the payment of the cost and expense of the construction and
installation of the Project, including the payment of the
principal of and interest on all outstanding bond anticipation
notes or other interim financing, if any. Any interest earnings
on moneys invested from the Capital Improvement Fund shall remain
in and be used for the purposes of the Capital Improvement Fund.
The City's share of any liquidated damages or other moneys paid by
defaulting contractors or their sureties will be deposited into
said Capital Improvement Fund to assure the completion of the
Project.
When the Project has been completed and all costs related
thereto have been paid in full, any balance remaining in the
Capital Improvement Fund shall be deposited into the Bond Fund
described in Section 14 of this Ordinance.
Section 13: THE REVENUE FUND
There is hereby created a special fund, to be known as the
"City of McCall Golf Course Revenue Fund" (the "Revenue Fund"),
which shall be maintained by the Treasurer and into which the
Revenue of the Facility shall be deposited forthwith upon its
receipt.
A. Use of Revenues. The Revenue of the Facility shall be
used for the payment of the following obligations in the following
order of priority:
(1) First Charge and Lien: The costs of Operation and
Maintenance Expenses.
(2) Second Charge and Lien: The principal of and
interest on the Bonds by payment into the Bond Fund, as
provided in Section 14 of this Ordinance.
(3) Third Charge and Lien: To maintain the Debt
Service Reserve Fund; and
(4) To administer surplus funds.
B. Interest Earnings. Interest earnings on deposits in the
Revenue Fund shall remain in and be used for the purposes of the
Revenue Fund.
C. Surplus Funds. Funds remaining in the Revenue Fund
after having been applied to designated funds for the purposes
provided in this section shall constitute surplus funds and may be
used for the purposes set forth in Section 16 of this Ordinance.
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Section 14: THE BOND FUND
There is hereby created a special fund, to be known as the
"City of McCall Recreational Revenue Bond Fund" (the "Bond Fund"),
into which shall be deposited, from Net Revenues, the following
described revenues:
A. At least twenty (20) days prior to each semiannual
interest, or principal and interest, payment date, the Treasurer
shall withdraw from the Revenue Fund and transfer to and deposit
in the Bond Fund the amount necessary to pay the next maturing
installment of interest, or principal and interest (and redemption
premium, if any) on the Bonds.
B. If the City for any reason shall fail to make such
required deposit from the Revenue Fund, then an amount equal to
the deficiency shall be deposited into the Bond Fund out of the
Reserve Fund.
C. On the fifteenth business day immediately preceding each
maturity date or interest payment date of the Bonds, the Treasurer
shall pay out of the Bond Fund, to the Bond Registrar, the amount
required for the interest, or principal and interest, as the case
may be, payable on such due date, and shall also pay the amount,
if any, required for payment of redemption premium on any Bonds
then to be redeemed. From the amounts so paid from the Bond Fund,
the Bond Registrar shall pay (i) on or before each interest
payment date for any of the Bonds the amount required for the
interest payable on such date; and (ii) on or before any redemp-
tion date for the Bonds, the amount required for the payment of
principal of, interest on, and redemption premium, if any, on the
Bcnds then to be redeemed.
D. Interest earnings on deposits in the Bond Fund shall
remain in the Bond Fund to be used for the purposes of the Bond
Fund.
Section 15: DEBT SERVICE RESERVE FUND
A. Deposits. There is hereby created a special fund, to be
known as the "City of McCall Recreational Revenue Bonds, Series
1989, Debt Service Reserve Fund" (the "Reserve Fund"), which shall
be maintained by the Treasurer. Simultaneously with the issuance
of the Bonds, there shall be transferred from the proceeds of the
Bonds to the Reserve Fund a sum equal to the lesser of (i) the
maximum annual debt service on the Bonds or (ii) 125% of the
average annual debt service on the Bonds, not to exceed 10% of the
proceeds of the Bonds as provided in Section 148(d) of the
Internal Revenue Code of 1986 (the "Reserve Requirement"), which
sum shall be maintained as a debt service reserve fund for the
Bonds until the Bonds have been paid in full. In no event shall
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the amount accumulated in the Reserve Fund exceed the Reserve
Requirement.
B. Deficiencies or Withdrawals. Whenever any moneys are
withdrawn from the Reserve Fund to pay the principal of or
interest on the Bonds, or if a deficiency exists in such Fund, the
amount so withdrawn or the amount of such deficiency shall be
restored by monthly deposits from Net Revenues until there has
been restored therein the gross amount provided heretofore in
subdivision A of this Section.
C. Refunding. In the event Refunding Bonds are ever
issued, the amount set aside into the Reserve Fund to secure the
payment of the Bonds may be used to retire bonds or may be held in
the Reserve Fund to secure payment of the refunding bonds issued,
to refund the outstanding bonds, or may be held in the Reserve
Fund to secure the payment of any other issue or series of bonds
payable out of the Bond Fund and issued on a parity with the
Bonds.
D. Investments. All moneys in the Reserve Fund may be kept
in cash or deposited in institutions permitted by law in an amount
in each institution not greater than the amount insured by any
department cr agency of the United States Government, or may be
invested and reinvested in any legal investment permitted for City
moneys maturing not later than the last maturity date of any
outstanding bonds. Interest earned on any such investment shall
be deposited, directly as earned, into the Bond Fund.
E. Reserve Eauivalent. The City may, at its option, if
additional funds are needed for completion of the Project,
withdraw the funds within the Reserve Fund and substitute therefor
an insurance policy or letter of credit issued by a municipal bond
insurance company or a commercial bank having a long-term debt
credit rating, at the time the insurance policy or letter of
credit is issued, of at least A as determined by Moody's Investors
Services, or its successor, in which the insurance company or
commercial bank agrees unconditionally to provide the City with
funds in an amount which equals the Reserve Fund requirement
specified in Paragraph A hereinabove.
Section 16: SURPLUS FUNDS
Funds remaining in the Revenue Fund after having been applied
to or designated funds for the purposes provided in Section 13 of
this Ordinance shall constitute surplus funds and may be used for
any of the following purposes:
A. To pay the costs of unusual or extraordinary maintenance
of or repair to the Facility;
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B. To pay the principal of and interest on any subordinate
lien obligations which may have been issued to provide golf course
facilities in or for the City;
C. To improve, extend, enlarge, or replace any golf course
facilities;
D. To acquire or construct additional golf course
facilities in or for the City;
E. To call or redeem prior to their fixed dates of
maturity any Bonds, parity bonds, or subordinate lien obligations
issued to provide golf course facilities for the City; and
F. For any other lawful purpose.
Section 17: ADDITIONAL BONDS OR OTHER OBLIGATIONS
A. Limitation Upon Issuance of Parity Obligations. Nothing
contained in this Ordinance shall be construed in such a manner as
to prevent the issuance by the City of additional bonds or other
additional obligations payable from the Net Revenues on a parity
with, but neither prior nor superior to, the lien of the Bonds
herein authorized; provided, however, that before any such
additional parity bonds or other additional parity obligations are
authorized or actually issued:
(1) The City is not, and has not been, in default as to
any payments required by the provisions of this Ordinance for
a period of not less than twelve (12) months immediately
preceding the issuance of such additional parity bonds or
other additional parity obligations.
(2) The Net Revenues of the Facility for the past
twelve (12) consecutive months immediately preceding the year
of the issuance of such additional parity obligations shall
have been sufficient to pay the Operation and Maintenance
Expenses of the Facility for said past twelve (12) months,
and, in addition, sufficient so that the Net Revenues for
such preceding year equal an amount representing at least
120% of the annual principal and interest requirements of the
outstanding Bonds and any other obligations of the City
payable from the Net Revenues of the Facility.
(3) The Estimated Net Revenues of the Facility for the
twelve-month period immediately succeeding the issuance of
the bonds or other obligations proposed to be issued will be
not less than 120% of the annual principal and interest
requirements of the outstanding Bonds and any other obliga-
tions of the City payable from the Net Revenues of the
Facility, plus the average annual principal and interest
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requirements of the bonds or other obligations proposed to be
issued.
(4) A written certification by an independent public
accountant approved by the City that the 120% Net Revenue
requirement of subsection (2) above, and the 120% Estimated
Net Revenues requirement of subsection (3) above, have been
satisfied, shall be obtained and filed with the City, which
certification shall be conclusively presumed to be accurate
in determining the right of the City to authorize, issue,
sell, and deliver said additional bonds or other additional
obligations on a parity with the Bonds authorized herein.
(5) The foregoing limitations, or any of them, may be
waived or modified by the written consent of the Registered
Owners of not less than 75% of the principal amount of the
Bonds then outstanding.
B. Parity Bonds to Complete Proiect. In the event that the
proceeds of the Bonds provided for in this Ordinance are
insufficient to complete the Project, then parity bonds or other
obligations approved by the electors may be issued to complete the
Project, and the restrictions set forth in this Section pertaining
to the issuance of parity bonds shall not apply.
C. Subordinate Lien Bonds. No provision of this Ordinance
or of any instrument appertaining thereto shall be deemed to limit
or restrict the power of the City to issue bonds, notes or
warrants, or to make pledges of the revenues which shall be
subordinate as to the lien of the Bonds and which shall provide
for compliance with the current provisions hereof prior to the
application of any funds to said subordinate purpose.
D. Refunding. The restrictions with respect to the
issuance of parity obligations shall not apply if such additional
parity bonds proposed to be issued are for the sole purpose of
refunding outstanding revenue bonds.
Section 18: INVESTMENTS
Surplus funds in any of the Funds set forth in this Ordinance
may be invested in securities as permitted by law.
Section 19: GENERAL COVENANTS
For the protection and security of the Bonds, it is
covenanted and agreed to and with the Registered Owners of the
Bonds from time to time, that the City will perform the following
covenants:
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A. Complete Project. It will complete the construction of
the Project with all practical dispatch and in a sound and
economical manner.
B. Operate Facility. It will operate the Facility in an
efficient and economical manner.
C. Good Repair. It will operate, maintain, preserve, and
keep the Facility and every part hereof in good repair, working
order, and condition.
D. Preserve Security. It will preserve and protect the
security of the Bonds and the rights of the Registered Owners
thereof.
E. Collect Revenues. It will collect and hold in trust the
revenues and other funds pledged to the payment of the Bonds and
apply such revenue or other funds only as provided in this
Ordinance.
F. Service Bonds. It will pay and cause to be paid punc-
tually the principal of the Bonds and the interest thereon on the
date or dates and at the place or places and in the manner
mentioned in the Bonds, and in accordance with this Ordinance.
G. Pay Claims. It will pay and discharge any and all
lawful claims for labor, materials, and supplies which, if unpaid,
might by law become a lien or charge upon the Revenue of the
Facility, or any part of said Revenue of the Facility, or any
funds in the hands of the Treasurer, prior or superior to the lien
of the Bonds or which might impair the security of the Bonds, to
the end that the priority and security of the Bonds shall be fully
preserved and protected.
H. Encumbrances. It will not mortgage or otherwise
encumber, sell, lease, or dispose of the Facility or any part
thereof, nor enter into any lease or agreement which would impair
or impede the operation of the Facility or any part thereof
necessary to secure adequate revenues for the payment of the
principal of and interest on the Bonds, nor which would otherwise
impair or impede the rights of the Registered Owners of the Bonds
with respect to such revenues of the operation of the Facility
without provisions for the retirement of the Bonds then
outstanding from the proceeds thereof.
I. Insurance. It will procure and keep in force insurance
upon all buildings and structures of the Facility and the
machinery and equipment therein, which are usually insured by
entities operating like property, in good and responsible
insurance companies. The amount of the insurance shall be such as
may be required to adequately protect it and the Registered Owner
of the Bonds from loss due to any casualty, and in the event of
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any such loss, the proceeds shall be used to repair or restore the
Facility or for the payment of the Bonds issued under this
Ordinance.
J. Fidelity Bonds. It will procure suitable fidelity bonds
covering all of its officers and other employees charged with the
operation of the Facility and the collection and disbursement of
revenues therefrom.
K. Accounts. It will keep proper and separate accounts and
records in which complete and separate entries shall be made of
all transactions relating to the Facility, and it will furnish
complete operating and income statements upon request.
Section 20: SPECIAL COVENANTS
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, 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.
C. The Bonds are not private activity bonds within the
meaning of the Internal Revenue Code of 1986.
D. The aggregate face amount of all tax-exempt bonds,
including the Bonds, issued by the City during the calendar year
in which the Bonds are issued, will not exceed $5,000,000.
E. The City will take no action which would cause the Bonds
to become arbitrage bonds within the meaning of Section 148 of the
Internal Revenue Code.
Section 21: AMENDMENTS
A. The City from time to time and at any time may adopt an
ordinance or ordinances supplemental hereto, which ordinance or
ordinances thereafter shall become a part of this Ordinance, for
any one or more of all of the following purposes:
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(1) To add to the covenants and agreements of the City
in this Ordinance, other covenants and agreements thereafter
to be observed, which shall not adversely affect the interest
of the Registered Owners of the Bonds, or to surrender any
right or power herein reserved.
(2) To make such provisions for the purpose of curing
any ambiguities or of curing, correcting, or supplementing
any defective provisions contained in this Ordinance, or any
ordinance authorizing future bonds in regard to matters or
questions arising under such ordinances as the Council may
deem necessary or desirable and not inconsistent with such
ordinances and which shall not adversely affect, in any
material respect, the interest of the Registered Owners of
the Bonds.
Any such supplemental ordinance may be adopted without
the consent of the Registered Owners of the Bonds at any time
outstanding, notwithstanding any of the provisions of
subsection B of this Section.
B. With the consent of the Registered Owners of not less
than 75% in aggregate principal amount of the Bonds at the time
outstanding, the Council may adopt an ordinance or ordinances
supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of
this Ordinance or of any supplemental ordinance; provided,
however, that no such supplemental ordinance shall:
(1) Extend the fixed maturities of the Bonds, or reduce
the rate of interest thereon, or extend the time of payments
of interest from their due date, or reduce the amount of the
principal thereof, or reduce any premium payable on the
redemption thereof, if applicable, without the consent of the
Registered Owners of the Bonds so affected; or
(2) Reduce the aforesaid percentage of the Registered
Owners required to approve any such supplemental ordinance,
without the consent of the Registered Owners of the Bonds
then outstanding.
It shall not be necessary for the consent of the Registered Owners
under this subsection B to approve the particular form of any
proposed supplemental ordinance, but it shall be sufficient if
such consent shall approve the substance thereof.
C. Upon the adoption of any supplemental ordinance pursuant
to the provisions of this Section, this Ordinance shall be deemed
to be modified and amended in accordance therewith, and the
respective rights, duties, and obligations of the City under this
Ordinance and the Registered Owners of the Bonds outstanding
hereunder shall thereafter be determined, exercised, and enforced
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thereunder, subject in all respects to such modification and
amendments, and all terms and conditions of any such supplemental
ordinance shall be deemed to be part of the terms and conditions
of this Ordinance for any and all purposes.
D. Any Bonds executed and delivered after the execution of
any supplemental ordinance adopted pursuant to the provisions of
this Section may have a notation as to any matter provided for in
such supplemental ordinance, and if such supplemental ordinance
shall so provide, new bonds so modified as to conform, in the
opinion of the Council, to any modification of this Ordinance
contained in any such supplemental ordinance, may be prepared and
delivered without cost to the Registered Owners of any affected
Bonds then outstanding, upon surrender for cancellation of such
Bonds.
Section 22: VALIDITY OF ISSUANCE
The Bonds are issued pursuant to the Idaho Revenue Bond Act,
being Idaho Code Sections 50-1027 through 50-1042. This recital
is conclusive evidence of the validity of the Bonds and the
regularity of their issuance.
Section 23: REGISTERED OWNER'S REMEDIES - RECEIVER
By action or suit in equity, the Registered Owners or subse-
quent owners of the Bonds may, in the event of a material
violation of any of the foregoing covenants, cause the appointment
of a receiver, which receiver may enter and take possession of the
Facility and any Net Revenues for the payment of the Bonds,
prescribe fees to be derived from the Facility, and collect,
receive, and apply all Net Revenues of other moneys pledged for
the payment of the Bonds in the same manner as the City might do
in accordance with the obligations of the City.
Section 24: ORDINANCE A CONTRACT
The provisions of this Ordinance shall constitute a contract
between the City and the Registered Owners so long as the Bonds
hereby authorized remains unpaid.
Section 25: DETERMINATION
The Council does hereby find, determine, and declare that it
is essential to the public interest, welfare, and convenience of
the City and the inhabitants thereof to undertake the Project and
to construct the improvements, with said Project being paid for by
the issuance of the Bonds in conformity with the Idaho Code.
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Section 26: SEVERABILITY
If any one or more of the covenants or agreements provided in
this Ordinance to be performed on the part of the City shall be
declared by any court of competent jurisdiction to be contrary to
law, then such covenant or covenants, agreement or agreements,
shall be null and void and shall be deemed separable from the
remaining covenants and agreements in this Ordinance and shall in
no way affect the validity of the other provisions of this
Ordinance or of the Bonds.
Section 27: REPEALER
All prior ordinances inconsistent herewith are hereby
repealed and shall, to the extent of such inconsistency, have no
further force or effect.
Section 28: BOND ANTICIPATION NOTES
Pending the issuance and sale of the Bonds, the City may, by
resolution, authorize the issuance and sale of bond anticipation
notes in an aggregate amount which, together with interest to
accrue thereon prior to issuance and sale of the Bonds, shall not
exceed $450,000, to provide funds to pay the costs of construction
and installation of the Project. Such bond anticipation notes,
together with interest accrued thereon, shall be payable from the
proceeds of the sale of the Bonds.
Section 29: PUBLICATION
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 14th day of July, 1989.
ATT : /
1/
CITY OF McCALL
Valley County, Idaho
By
Mayor'
Ci Clerk
( S E A L )
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