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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"