HomeMy Public PortalAboutResolution 09-97 LID #4 Interim WarrantRESOLUTION NO. 9-97
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF McCALL, IDAHO,
PROVIDING FOR THE ISSUANCE AND SALE OF INTERIM WARRANTS PURSUANT TO
SECTION 50-1722, IDAHO CODE, IN ANTICIPATION OF THE ISSUANCE OF
LOCAL IMPROVEMENT DISTRICT BONDS AND PREPAYMENT OF ASSESSMENTS FOR
LOCAL IMPROVEMENT DISTRICT NO. 4, FOR THE PURPOSE OF REFUNDING THE
OUTSTANDING INTERIM WARRANTS FOR LOCAL IMPROVEMENT DISTRICT NO. 4
AND PAYING THE REMAINING COSTS OF SAID IMPROVEMENT DISTRICT;
PROVIDING FOR THE MANNER OF ISSUANCE AND THE FORM OF SUCH WARRANTS;
PROVIDING FOR THE REGISTRATION AND PAYMENT OF THE PRINCIPAL THEREOF
AND THE INTEREST ON SAID WARRANTS; PROVIDING FOR THE SALE OF THE
WARRANTS TO U.S. BANK NATIONAL ASSOCIATION; PROVIDING COVENANTS;
PROVIDING FOR RELATED MATTERS; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, by passage of Ordinance No. 668 on July 28, 1994, the
City Council (the "Council") of the City of McCall, Valley County,
Idaho (the "City"), duly created Local Improvement District No. 4
("L.I.D. No. 4"), ordered the construction of certain water and
street public improvements pursuant thereto, and authorized the
issuance of local improvement district bonds to finance the cost
thereof; and
WHEREAS, the City is authorized and empowered by Idaho Code
Section 50-1722 to issue interim warrants for the purpose of
meeting costs and expenses of making local improvement district
improvements prior to the sale of bonds and prepayment of
assessments; and
WHEREAS, the Council has heretofore, by adoption of Ordinance
No. 668, estimated the cost of the local improvement district
project at $527,100, and authorized the issuance of interim
warrants for L.I.D. No. 4 in an amount not to exceed $527,100; and
WHEREAS, the City heretofore, pursuant to Resolution No. 3-96,
adopted on March 28, 1996, issued its interim warrants for the
financing of the improvements for L.I.D. No. 4, which interim
warrants matured on August 1, 1997; and
WHEREAS, in order to redeem, currently refund, and pay the
interim warrants, and to provide interim financing for the
remainder of the costs and expense of the improvements to be
constructed within L.I.D. No. 4, the Council deems it necessary and
desirable to issue, sell, and deliver interim warrants for L.I.D.
No. 4 in an aggregate principal amount not to exceed $527,100.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF McCALL, Valley County, Idaho, as follows:
Page 1
$~: For the purpose of redeeming the outstanding
interim warrants heretofore issued for L.I.D. No. 4, and paying the
remaining costs of the improvements within L.I.D. No. 4, the Mayor
and City Clerk-Treasurer are hereby authorized and directed to
cause to be issued, sold, and delivered, on behalf of the City,
interim warrants of L.I.D. No. 4 (the "Warrants") in the manner
hereinafter provided.
~: Such Warrants may be issued from time to time in
such amounts as may be required, so long as the aggregate principal
amount thereof does not exceed $527,100; shall be issued to U.S.
Bank National Association; shall bear interest at the rate of five
and thirty hundredths percent (5.30%) per annum from the date of
issuance to the date of maturity or prior redemption of each such
Warrant; and shall be redeemed and paid in full, together with any
accrued and unpaid interest thereon, from the proceeds of the sale
of bonds for and from prepayment of assessments of L.I.D. No. 4.
Section 3: Each such Warrant shall be registered in the name
of the initial purchaser both as to principal and interest with the
City Treasurer, and any transfer thereof must likewise be
registered.
Section 4: Ail such Warrants shall be dated as of the date of
delivery to the purchaser thereof, shall mature on August 1, 1998,
and shall be subject to call and redemption without penalty at any
time at the option of the City when the proceeds of local
improvement district bonds for L.I.D. No. 4, or prepayment of
assessments of said local improvement district, become available.
In the event of prior call and redemption, the City Treasurer shall
give notice thereof by mailing a copy of a Notice of Call and
Redemption by certified mail at least three (3) days prior to the
call and redemption date to the registered owner of said Warrants
at the address shown on the registration books of the City.
Interest on each Warrant shall cease to accrue after the date fixed
for call and redemption, provided that funds for the payment and
redemption thereof are available at the time and place specified in
the notice of call and redemption.
Section 5: Each Warrant and the interest thereon shall be
payable in lawful money of the United States of America to the
registered owner thereof at the address of such registered owner as
shown on the registration books of the City.
Section 6: Each Warrant shall be executed in the name of the
City of McCall, shall be signed by the Mayor, countersigned by the
City Treasurer, and attested by the City Clerk, and shall be
authenticated by the Seal of the City affixed thereto. Each
Page 2
Warrant shall be substantially in the form as set forth in Exhibit
"A" attached hereto and by reference made a part hereof.
$~: The City hereby covenants with the registered
owner of the Warrants that it will issue bonds in the amount of the
confirmed assessment roll for L.I.D. No. 4, less the prepayment of
assessments as authorized by law, and further pledges the first
proceeds of said prepayments of assessments and of the proceeds of
the bonds to payment of the Warrants.
The Warrants shall not constitute an indebtedness of the City
within the meaning of any state constitutional provision or
statutory limitation, or a charge against the general credit or
taxing power of the City, and the registered owner of the Warrants
shall have no claim against the City, its funds or property.
Section 8: The City covenants with the registered owner of
the Warrants as follows:
A. In accordance with Section 149(a) of the Internal Revenue
Code of 1986, as amended (the "Code"), the Warrants shall be issued
and remain in fully registered form in order that interest thereon
be excluded from gross income of the owner or owners for federal
income tax purposes. The City covenants and agrees that it will
take no action to permit the Warrants to be issued in or converted
to bearer or coupon form.
B. The Warrants are hereby designated as "qualified tax-
exempt obligations" within the meaning and for the purpose of
Section 265(b) (3) of the Code, and the City does not reasonably
anticipate that it will designate more than $10,000,000, including
the Warrants, as qualified tax-exempt obligations during the
calendar year 1997.
C. None of the proceeds of the Warrants 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.
D. The City has general taxing powers. The Warrants are not
"private activity bonds" within the meaning of Section 141 of the
Code. 95% or more of the net proceeds of the Warrants are to be
used for the local governmental activities of the City. The City
has no subordinate bond-issuing entities. The City has not issued,
and does not reasonably anticipate that it will issue, tax-exempt
Page 3
obligations in calendar year 1997 in a face amount which exceeds
$5,000,000. Accordingly, under Section 148(f) (4) (D) of the Code,
the City is not required to pay rebates to the United States under
Section 148(f) of the Code.
E. No portion of the original proceeds of the Warrants will
be invested in higher-yielding non-purpose obligations beyond a
temporary period determined as the earlier of three (3) years after
the date the Warrants are issued or the date the project is
substantially completed.
F. The City will take no action which would cause the
Warrants to become arbitrage bonds within the meaning of Section
148 of the Code. In particular, the City will comply with any
applicable arbitrage rebate requirements pursuant to Section 148(f)
of the Code.
G. The City will comply with the information reporting
requirements of Section 149(e) of the Code.
H. The City will not permit the Warrants to be or become
"federally guaranteed" within the meaning of Section 149(b) of the
Code.
I. None of the proceeds of the Warrants will be used to
reimburse the City for capital expenditures made prior to the date
of delivery of the Warrants unless the City, not later than 60 days
after the payment of such expenditure, shall have adopted an
official intent resolution as provided by Section 1.150-2 of the
Treasury Regulations.
Section 9: This Resolution shall take effect and be in force
immediately upon its passage and approval.
DATED this 28th day of August, 1997.
CITY OF McCALL
BValleyy. County,/~~~Idaho
Mayor
City Clerk
Page 4
UNITED STATES OF AMERICA
NO.__ $
STATE OF IDAHO
COUNTY OF VALLEY
CITY OF McCALL
LOCAL IMPROVEMENT DISTRICT NO. 4 INTERIM WARRANT
FOR VALUE RECEIVED, the City of McCall, Valley County, Idaho
(the "City"), acknowledges itself to owe, and promises to pay to
U.S. BANK NATIONAL ASSOCIATION
the original Registered Owner hereof or its assignee, at the office
of the City Treasurer, on or before the first day of August, 1998,
the sum of
DOLLARS
($ ) in lawful money of the United States of America,
together with interest thereon in like money at the rate of five
and thirty hundredths percent (5.30%) per annum from the date
hereof, interest payable on redemption.
This Warrant is registered, both as to principal and interest,
with the City Treasurer, and any transfer hereof must likewise be
registered. This Warrant is a negotiable instrument, payable
solely from the prepayment of assessments or the issuance of local
improvement district bonds for Local Improvement District No. 4 of
the City, all as authorized by Ordinance No. 668, adopted on
July 28, 1994, and Resolution No. 9-97, adopted on August 28, 1997.
The owner of this Warrant shall have no claim against the City, its
funds or property, except as set forth above.
This Warrant is issued for the purpose of providing part of
the interim funds necessary to construct the improvements
authorized for Local Improvement District No. 4, under and by
virtue of and in full conformity with the Constitution and laws of
the State of Idaho and Ordinance No. 668 of the City.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all
matters, acts, conditions and things required by law to make this
Interim Warrant a valid and enforceable limited obligation of Local
Page 1 - EXHIBIT "A"
Improvement District No. 4 of the City, have happened, have been
done, and have been performed, and the first proceeds of the
prepayment of local improvement district assessments and of the
issuance and sale of local improvement district bonds for Local
Improvement District No. 4 of the City, are pledged for the payment
of the same.
IN WITNESS WHEREOF, the City of McCall, Valley County, Idaho,
has caused this Warrant to be executed on its behalf and under its
official seal by its Mayor, countersigned by its Treasurer, and
attested by its City Clerk, all as of the day of
, 1997.
CITY OF McCALL
Valley County, Idaho
Mayor
ATTEST:
Treasurer
City Clerk
(SEAL)
Page 2 - EXHIBIT "A"
This Warrant is registered in the name of the registered owner
whose name and address appear last below, and both principal and
interest are payable only to said owner.
NOTE: There must be no writing in the space below except by the
City Treasurer.
Name of Address of
Date of Registered Registered
Registry Owner Owner
U,$, Bank National
Association
c/o Government Banking
~Ol S. Capitol Blvd.
Boise, Idaho 83707
TREASURER'S CERTIFICATE
I, the undersigned, the Treasurer of the City of McCall,
Valley County, Idaho, hereby certify that the within Warrant has
been duly registered in my office in the Registration Book kept for
that purpose.
Treasurer
City of McCall
Page 3 - EXHIBIT "A"