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O R D I N A N C E N O . 6 4 1
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 , 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 L O C A L I M P R O V E M E N T D I S T R I C T N O . 3 B O N D S ; S P E C I F Y I N G T H E
D A T E , F O R M , M A T U R I T I E S A N D R E G I S T R A T I O N O F A N D M A X I M U M N E T
E F F E C T I V E I N T E R E S T R A T E O N S A I D B O N D S ; P R O V I D I N G F O R T H E E X E C U T I O N
A N D M A N N E R O F P A Y M E N T O F T H E B O N D S ; A P P O I N T I N G A B O N D R E G I S T R A R ;
P R O V I D I N G F O R R E D E M P T I O N O F B O N D S P R I O R T O T H E I R S T A T E D M A T U R I T I E S ;
P R O V I D I N G F O R T H E A P P L I C A T I O N A N D U S E O F B O N D P R O C E E 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 A D M I N I S T R A T I V E C O S T S O F T H E C I T Y ; E S T A B L I S H I N G
A B O N D F U N D , I N T E R E S T F U N D , R E B A T E F U N D , A N D R E S E R V E F U N D F O R T H E
B O N D S ; A U T H O R I Z I N G T H E S A L E O F T H E B O N D S A T P R I V A T E S A L E A N D T H E
E X E C U T I O N O F A B O N D P U R C H A S E A G R E E M E N T W I T H R E S P E C T T H E R E T O ;
P R O V I D I N G C O V E N A N T S W I T H R E S P E C T T O T H E B O N D S ; P R O V I D I N G F O R
P U B L I C A T I O N A N D E F F E C T I V E D A T E ; A N D P R O V I D I N G F O R O T H E R M A T T E R S
R E L A T I N G T H E R E T O
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 o f
M c C a l l , o f V a l l e y C o u n t y , I d a h o ( t h e " C i t y " ) , h e r e t o f o r e , b y
a d o p t i o n o f O r d i n a n c e N o . 6 3 0 o n M a y 1 3 , 1 9 9 3 , c r e a t e d L o c a l
I m p r o v e m e n t D i s t r i c t N o . 3 ( " L . I . D . N o . 3 " ) o f t h e C i t y f o r t h e
p u r p o s e o f f i n a n c i n g t h e a c q u i s i t i o n o f c e r t a i n p u b l i c i m p r o v e m e n t s
c o n s i s t i n g o f t h e n e c e s s a r y l a n d a n d i m p r o v e m e n t s f o r a n i n e - h o l e
m u n i c i p a l g o l f c o u r s e a n d r e l a t e d p u b l i c r e c r e a t i o n a l i m p r o v e m e n t s ;
p u b l i c r o a d s a n d s t r e e t s , s i d e w a l k s , p e d e s t r i a n p a t h w a y s , a n d
b i k e w a y s ; p u b l i c s a n i t a r y s e w e r , w a t e r , a n d d r a i n a g e i m p r o v e m e n t s
a n d f a c i l i t i e s , a n d o t h e r r e l a t e d p u b l i c i m p r o v e m e n t s , a s m o r e
f u l l y s e t f o r t h i n O r d i n a n c e N o . 6 3 0 ; a n d
W H E R E A S , f o l l o w i n g n o t i c e a n d h e a r i n g a s r e q u i r e d b y l a w , t h e
C o u n c i l , b y a d o p t i o n o f O r d i n a n c e N o . 6 3 6 o n J u l y 8 , 1 9 9 3 ,
c o n f i r m e d t h e a s s e s s m e n t r o l l f o r L . I . D . N o . 3 i n t h e t o t a l a m o u n t
o f $ 5 , 2 0 0 , 0 0 0 a n d p r o v i d e d f o r t h e i s s u a n c e o f l o c a l i m p r o v e m e n t
d i s t r i c t b o n d s i n t h e a m o u n t o f a n y a s s e s s m e n t s r e m a i n i n g u n p a i d
w i t h i n t h i r t y ( 3 0 ) d a y s o f t h e a d o p t i o n o f O r d i n a n c e N o . 6 3 6 t o p a y
t h e c o s t s o f t h e a c q u i s i t i o n o f p u b l i c i m p r o v e m e n t s w i t h i n L . I . D .
N o . 3 , t o g e t h e r w i t h e x p e n s e s i n c i d e n t t h e r e t o ; a n d
W H E R E A S , n o p a r t o f t h e a s s e s s m e n t s w i t h i n L . I . D . N o . 3 h a v e
b e e n p a i d , a n d t h e o w n e r o f a l l p r o p e r t y s u b j e c t t o a s s e s s m e n t
w i t h i n L . I . D . N o . 3 h a s f i l e d w i t h t h e C i t y a w r i t t e n w a i v e r o f t h e
3 0 - d a y p r e p a y m e n t p e r i o d p e r m i t t e d b y l a w f o r t h e p a y m e n t o f
a s s e s s m e n t s w i t h o u t p e n a l t y o r i n t e r e s t a n d h a s c o n c l u s i v e l y
c o n s e n t e d t o t h e p a y m e n t o f a s s e s s m e n t s w i t h i n L . I . D . N o . 3 i n
t w e n t y ( 2 0 ) a n n u a l i n s t a l l m e n t s , a n d h a s f u r t h e r c o n s e n t e d t o t h e
i s s u a n c e o f l o c a l i m p r o v e m e n t d i s t r i c t b o n d s i n t h e f u l l a m o u n t o f
t h e u n p a i d a s s e s s m e n t s w i t h i n L . I . D . N o . 3 ; a n d
W H E R E A S , t h e C o u n c i l d e s i r e s t o i s s u e a n d s e l l b o n d s o f L . I . D .
N o . 3 i n t h e p r i n c i p a l a m o u n t o f $ 5 , 2 0 0 , 0 0 0 i n o r d e r t o p a y t h e
P a g e 1
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c o s t s o f a c q u i s i t i o n o f s a i d p u b l i c i m p r o v e m e n t s , t o f u n d a p o r t i o n
o f a d e b t s e r v i c e r e s e r v e f u n d a s a d d i t i o n a l s e c u r i t y f o r t h e
p a y m e n t o f t h e p r i n c i p a l o f a n d i n t e r e s t o n s a i d b o n d s , a n d f o r t h e
p a y m e n t o f o t h e r c o s t s i n c i d e n t a l t h e r e t o ; a n d
W H E R E A S , t h e C i t y i s a u t h o r i z e d t o s e l l l o c a l i m p r o v e m e n t
d i s t r i c t b o n d s a t p r i v a t e s a l e a n d 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 b o n d s f o r L . I . D . N o . 3 u n d e r t h e t e r m s a n d
c o n d i t i o n s s e t f o r t h i n t h i s o r d i n a n c e , s u b j e c t t o t h e e x e c u t i o n
a n d a p p r o v a l o f a b o n d p u r c h a s e a g r e e m e n t r e l a t i n g t o t h e b o n d s a s
p r o v i d e d h e r e i n .
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
L o c a l I m p r o v e m e n t D i s t r i c t N o . 3 B o n d s ( t h e " 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 $ 5 , 2 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 . T h e B o n d s a r e i s s u e d i n t h e p r i n c i p a l a m o u n t
o f t h e a s s e s s a b l e p o r t i o n o f t h e c o s t o f a c q u i r i n g t h e a b o v e -
d e s c r i b e d I m p r o v e m e n t s , i n c l u d i n g t h e c o n t r a c t p r i c e a n d o t h e r
c o s t s i n c i d e n t a l t o s a i d a c q u i s i t i o n , a n d i n c l u d i n g p r o f e s s i o n a l
s e r v i c e s , t h e c o s t s o f i s s u a n c e o f t h e B o n d s , p u b l i c a t i o n s , a n d a
p o r t i o n o f t h e c o s t o f e s t a b l i s h i n g a r e s e r v e f u n d f o r t h e B o n d s .
S e c t i o n 2 : D E S C R I P T I O N O F B O N D S
T h e B o n d s s h a l l b e d a t e d A u g u s t 1 5 , 1 9 9 3 , s h a l l b e i s s u e d 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 $ 5 , 2 0 0 , 0 0 0 , a n d s h a l l b e i s s u e d ,
s o l d , a n d d e l i v e r e d a t p a r l e s s a n u n d e r w r i t e r ' s d i s c o u n t n o t t o
e x c e e d $ 1 5 6 , 0 0 0 p l u s a c c r u e d i n t e r e s t t o t h e i r d a t e o f d e l i v e r y .
S a i d B o n d s s h a l l b e i n d e n o m i n a t i o n s o f $ 5 , 0 0 0 o r i n t e g r a l
m u l t i p l e s t h e r e o f , p r o v i d e d t h a t n o B o n d s h a l l r e p r e s e n t m o r e t h a n
o n e m a t u r i t y . T h e B o n d s s h a l l b e r e g i s t e r e d a s t o b o t h p r i n c i p a l
a n d i n t e r e s t , s h a l l b e n u m b e r e d s e p a r a t e l y i n t h e m a n n e r a n d w i t h
a n y a d d i t i o n a l d e s i g n a t i o n a s t h e B o n d R e g i s t r a r d e e m s n e c e s s a r y ,
s h a l l b e a r i n t e r e s t , p a y a b l e a n n u a l l y o n A u g u s t 1 5 o f e a c h y e a r , a t
t h e r a t e s a s s h a l l b e p r o v i d e d i n t h e b o n d p u r c h a s e a g r e e m e n t ( t h e
" B o n d P u r c h a s e A g r e e m e n t " ) r e l a t i n g t o t h e B o n d s a s a u t h o r i z e d b y
S e c t i o n 1 0 o f t h i s O r d i n a n c e ( p r o v i d e d t h a t t h e n e t e f f e c t i v e r a t e
o f i n t e r e s t o n t h e B o n d s s h a l l n o t e x c e e d e i g h t p e r c e n t ( 8 . 0 % ) p e r
a n n u m ) , a n d s h a l l m a t u r e s e r i a l l y o n A u g u s t 1 5 o f t h e y e a r s 1 9 9 6
t h r o u g h 2 0 1 3 i n c l u s i v e i n a c c o r d a n c e w i t h . t h e m a t u r i t y s c h e d u l e
w h i c h s h a l l b e s e t f o r t h i n t h e B o n d P u r c h a s e A g r e e m e n t . B o t h
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 s h a l l b e f u l l y p a i d w i t h i n
t w e n t y ( 2 0 ) y e a r s f r o m t h e i r d a t e . T h e B o n d s s h a l l b e
s u b s t a n t i a l l y i n t h e f o r m a s s e t f o r t h i n E x h i b i t " A " w h i c h i s
a n n e x e d h e r e t o a n d b y r e f e r e n c e m a d e a p a r t o f t h i s O r d i n a n c e .
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Section 3: EXECUTION OF BONDS
Without unreasonable delay following execution and approval of
the Bond Purchase Agreement, the City shall cause the Bonds to be
prepared, executed, and delivered, which Bonds shall be
lithographed 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 (any of which signatures
may be manual or by facsimile), and shall have the seal of the City
affixed thereto or a facsimile of the seal 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 or bonds 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 bonds shall be dated as of the date of the Bonds, shall
be in the aggregate principal amount of $5,200,000, shall be
numbered T-1 and consecutively thereafter, 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 City 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
countersigned 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 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.
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S e c t i o n 4 : P L A C E A N D M A N N E R O F P A Y M E N T
B o t h 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 s h a l l b e p a y a b l e
i n l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a . P a y m e n t o f e a c h
i n s t a l l m e n t o f i n t e r e s t o n t h e B o n d s s h a l l b e m a d e o n i t s a n n u a l
d u e d a t e b y c h e c k o r d r a f t o f t h e B o n d R e g i s t r a r ( h e r e i n a f t e r
d e f i n e d ) m a i l e d t o t h e r e g i s t e r e d o w n e r s t h e r e o f , o r a s s i g n s , a t
t h e a d d r e s s a p p e a r i n g o n t h e r e g i s t r a t i o n b o o k s f o r L . I . D . N o . 3
m a i n t a i n e d b y t h e B o n d R e g i s t r a r a s o f t h e c l o s e o f b u s i n e s s o n t h e
f i f t e e n t h d a y n e x t p r e c e d i n g e a c h i n t e r e s t p a y m e n t d a t e . P r i n c i p a l
o f t h e B o n d s s h a l l b e p a y a b l e u p o n p r e s e n t a t i o n a n d s u r r e n d e r o f
t h e B o n d s b y t h e r e g i s t e r e d o w n e r s t h e r e o f a t t h e o f f i c e o f t h e
B o n d R e g i s t r a r , o n o r a f t e r t h e d a t e o f m a t u r i t y o r p r i o r
r e d e m p t i o n .
S e c t i o n 5 : B O N D R E G I S T R A R
T h e C o r p o r a t e T r u s t D e p a r t m e n t o f W e s t O n e B a n k , I d a h o , B o i s e ,
I d a h o , i s h e r e b y a p p o i n t e d a s b o n d r e g i s t r a r , t r a n s f e r a g e n t , a n d
a u t h e n t i c a t i n g a n d p a y i n g a g e n t , a n d i s h e r e i n r e f e r r e d t o a s t h e
" B o n d R e g i s t r a r . " T h e B o n d R e g i s t r a r s h a l l k e e p , o r c a u s e t o b e
k e p t , a t i t s p r i n c i p a l c o r p o r a t e t r u s t o f f i c e , s u f f i c i e n t b o o k s f o r
t h e r e g i s t r a t i o n a n d t r a n s f e r o f t h e B o n d s w h i c h s h a l l a t a l l t i m e s
b e o p e n t o i n s p e c t i o n b y t h e C i t y . T h e B o n d R e g i s t r a r i s
a u t h o r i z e d , o n b e h a l f o f t h e C i t y , t o a u t h e n t i c a t e a n d d e l i v e r t h e
B o n d s i s s u e d o r t r a n s f e r r e d i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f
s u c h B o n d s a n d t h i s O r d i n a n c e a n d t o c a r r y o u t a l l o f t h e B o n d
R e g i s t r a r ' s p o w e r s a n d d u t i e s u n d e r t h i s O r d i n a n c e .
T h e B o n d R e g i s t r a r s h a l l b e r e s p o n s i b l e f o r i t s
r e p r e s e n t a t i o n s c o n t a i n e d i n t h e C e r t i f i c a t e o f A u t h e n t i c a t i o n o n
t h e B o n d s . T h e B o n d R e g i s t r a r m a y b e c o m e t h e o w n e r o f t h e B o n d s
w i t h t h e s a m e r i g h t s a s i t w o u l d h a v e i f i t w e r e n o t t h e B o n d
R e g i s t r a r .
T h e B o n d s m a y b e t r a n s f e r r e d o n l y u p o n t h e b o o k s f o r t h e
r e g i s t r a t i o n a n d t r a n s f e r o f B o n d s , u p o n t h e s u r r e n d e r t h e r e o f a t
t h e p r i n c i p a l c o r p o r a t e t r u s t o f f i c e o f t h e B o n d R e g i s t r a r ,
t o g e t h e r w i t h a f o r m o f t r a n s f e r d u l y e x e c u t e d b y t h e R e g i s t e r e d
O w n e r o r h i s a t t o r n e y d u l y a u t h o r i z e d i n w r i t i n g s u b s t a n t i a l l y i n
t h e f o r m s e t f o r t h i n t h e f o r m o f B o n d r e f e r r e d t o i n S e c t i o n 3
h e r e o f . U p o n t h e t r a n s f e r o f a n y B o n d , t h e r e s h a l l b e i s s u e d i n
t h e n a m e o f t h e t r a n s f e r e e o r t r a n s f e r e e s a n e w f u l l y r e g i s t e r e d
B o n d o f t h e s a m e d e n o m i n a t i o n , m a t u r i t y , a n d i n t e r e s t r a t e a s t h e
s u r r e n d e r e d B o n d . T h e n e w B o n d s h a l l b e a r t h e s a m e d a t e a s t h e
d a t e o f t h e s u r r e n d e r e d B o n d , b u t s h a l l b e a r i n t e r e s t f r o m t h e
i m m e d i a t e l y p r e c e d i n g i n t e r e s t p a y m e n t d a t e t o w h i c h i n t e r e s t h a s
b e e n p a i d o r d u l y p r o v i d e d f o r . T h i s s e c t i o n i s i n t e n d e d t o
p r o v i d e a s y s t e m o f r e g i s t r a t i o n a s p r o v i d e d b y T i t l e 5 7 ,
C h a p t e r 9 , I d a h o C o d e .
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l o
T h e B o n d R e g i s t r a r s h a l l n o t b e r e q u i r e d t o e x c h a n g e o r
t r a n s f e r a n y B o n d w i t h i n f i f t e e n ( 1 5 ) d a y s o f a n i n t e r e s t p a y m e n t
d a t e o r , i n t h e c a s e o f a n y r e d e m p t i o n o f B o n d s , w i t h i n f i f t e e n
( 1 5 ) d a y s o f t h e r e d e m p t i o n d a t e .
S e c t i o n 6 : R E D E M P T I O N
T h e C i t y r e s e r v e s t h e r i g h t t o r e d e e m a n y o r a l l o f t h e B o n d s
o n a n y i n t e r e s t p a y m e n t d a t e , w h e n e v e r t h e C i t y T r e a s u r e r h a s
s u f f i c i e n t f u n d s a v a i l a b l e i n t h e B o n d F u n d a n d I n t e r e s t F u n d ( a s
d e f i n e d i n S e c t i o n 8 h e r e o f ) t o p a y t h e p r i n c i p a l o f a n d a c c r u e d
i n t e r e s t o n o n e o r m o r e o f t h e B o n d s , o v e r a n d a b o v e t h e a m o u n t s
n e c e s s a r y t o p a y c u r r e n t l y m a t u r i n g i n s t a l l m e n t s o f p r i n c i p a l a n d
i n t e r e s t , a t t h e f o l l o w i n g p r i c e s , e x p r e s s e d a s a p e r c e n t a g e o f t h e
p r i n c i p a l a m o u n t o f t h e B o n d s s o c a l l e d f o r r e d e m p t i o n , p l u s
a c c r u e d i n t e r e s t t o t h e d a t e o f r e d e m p t i o n :
R e d e m p t i o n D a t e R e d e m p t i o n P r i c e
A u g u s t 1 5 , 1 9 9 4 , t o A u g u s t 1 5 , 2 0 0 3 1 0 3 %
A u g u s t 1 5 , 2 0 0 4 1 0 2 %
A u g u s t 1 5 , 2 0 0 5 1 0 1 %
A u g u s t 1 5 , 2 0 0 6 , a n d t h e r e a f t e r 1 0 0 %
I n a d d i t i o n , t h e B o n d s s h a l l b e s u b j e c t t o r e d e m p t i o n , a t t h e
o p t i o n o f t h e C i t y , a t p a r p l u s a c c r u e d i n t e r e s t t o t h e d a t e o f
r e d e m p t i o n , o n A u g u s t 1 5 , 1 9 9 6 , s o l e l y f r o m , a n d t o t h e e x t e n t o f ,
a n y o f t h e p r o c e e d s o f t h e s a l e o f t h e B o n d s o n d e p o s i t i n t h e
A c q u i s i t i o n F u n d o n J u l y 8 , 1 9 9 6 , i f f o r a n y r e a s o n t h e C i t y d o e s
n o t a c q u i r e a l l o f t h e I m p r o v e m e n t s , a s p r o v i d e d i n S e c t i o n 1 0 o f
t h i s O r d i n a n c e . T h e p r i n c i p a l a m o u n t o f t h e a s s e s s m e n t s s h a l l b e
r e d u c e d i n t h e a m o u n t o f a n y r e d e m p t i o n m a d e f r o m u n e x p e n d e d B o n d
p r o c e e d s , a n d e a c h i n d i v i d u a l a s s e s s m e n t s h a l l b e r e d u c e d i n t h e
p r o p o r t i o n t h a t s u c h a s s e s s m e n t b e a r s t o t h e t o t a l a s s e s s m e n t s
w i t h i n L . I . D . N o . 3 .
P o r t i o n s o f a n y B o n d o f a d e n o m i n a t i o n o f m o r e t h a n $ 5 , 0 0 0 m a y
b e r e d e e m e d . T h e p o r t i o n o f a n y B o n d o f a d e n o m i n a t i o n o f m o r e
t h a n $ 5 , 0 0 0 t o b e r e d e e m e d s h a l l b e i n t h e p r i n c i p a l a m o u n t o f
$ 5 , 0 0 0 o r a n y i n t e g r a l m u l t i p l e o f $ 5 , 0 0 0 , a n d i n s e l e c t i n g
p o r t i o n s o f s u c h B o n d s f o r r e d e m p t i o n t h e B o n d R e g i s t r a r s h a l l
t r e a t e a c h s u c h B o n d a s r e p r e s e n t i n g t h a t n u m b e r o f B o n d s o f $ 5 , 0 0 0
d e n o m i n a t i o n w h i c h i s o b t a i n e d b y d i v i d i n g t h e p r i n c i p a l a m o u n t o f
e a c h B o n d b y $ 5 , 0 0 0 .
I n t h e c a s e o f r e d e m p t i o n o f f e w e r t h a n a l l o f t h e o u t s t a n d i n g
B o n d s , B o n d s t o b e r e d e e m e d s h a l l b e s e l e c t e d b y t h e B o n d R e g i s t r a r
b y l o t , a n d s h a l l , i n s o f a r a s c a n b e d o n e t a k i n g i n t o c o n s i d e r a t i o n
t h e d e n o m i n a t i o n s o f t h e o u t s t a n d i n g B o n d s , r e p r e s e n t a n e q u a l
a m o u n t o f B o n d s f r o m e a c h m a t u r i t y o u t s t a n d i n g a t t h e t i m e o f
P a g e 5
"
o "
r e d e m p t i o n . T h e d e c i s i o n o f t h e B o n d R e g i s t r a r i n s e l e c t i n g t h e
B o n d s f o r r e t i r e m e n t s h a l l b e c o n c l u s i v e i n t h e a b s e n c e o f f r a u d .
N o t i c e o f a n y i n t e n d e d r e d e m p t i o n s h a l l b e g i v e n n o t l e s s t h a n
t w e n t y - o n e ( 2 1 ) n o r m o r e t h a n s i x t y ( 6 0 ) d a y s p r i o r t o t h e
r e d e m p t i o n d a t e b y f i r s t c l a s s m a i l , p o s t a g e p r e p a i d , t o t h e
r e g i s t e r e d o w n e r o f a n y B o n d t o b e r e d e e m e d a t t h e a d d r e s s
a p p e a r i n g o n t h e B o n d R e g i s t e r . T h e r e q u i r e m e n t s o f t h i s O r d i n a n c e
s h a l l b e d e e m e d t o b e c o m p l i e d w i t h w h e n n o t i c e i s m a i l e d a s h e r e i n
p r o v i d e d , r e g a r d l e s s o f w h e t h e r o r n o t i t i s a c t u a l l y r e c e i v e d b y
t h e o w n e r o f s u c h B o n d . I n t e r e s t o n a l l o f s u c h B o n d s s o c a l l e d
f o r r e d e m p t i o n s h a l l c e a s e t o a c c r u e o n t h e d a t e f i x e d f o r
r e d e m p t i o n u n l e s s s u c h B o n d o r B o n d s s o c a l l e d f o r r e d e m p t i o n a r e
n o t r e d e e m e d u p o n p r e s e n t a t i o n m a d e p u r s u a n t t o s u c h c a l l .
S e c t i o n 7 : A P P L I C A T I O N O F B O N D P R O C E E D S
T h e
d i s c o u n t ,
1 .
p r o c e e d s o f t h e s a l e o f t h e B o n d s , l e s s u n d e r w r i t e r ' s
s h a l l b e d e p o s i t e d a n d u t i l i z e d b y t h e C i t y a s f o l l o w s :
A l l a c c r u e d i n t e r e s t o n t h e B o n d s f r o m t h e i r d a t e t o
t h e i r d a t e o f d e l i v e r y s h a l l b e d e p o s i t e d i n t o t h e
I n t e r e s t F u n d ( h e r e i n a f t e r c r e a t e d ) a n d u t i l i z e d t o p a y
a p o r t i o n o f t h e f i r s t i n t e r e s t p a y m e n t f a l l i n g d u e o n
t h e B o n d s o n A u g u s t 1 5 , 1 9 9 4 .
2 . $ 4 7 5 , 5 0 0 s h a l l b e d e p o s i t e d i n t o t h e I n t e r e s t F u n d a n d
u t i l i z e d t o p a y t h e f i r s t i n t e r e s t p a y m e n t f a l l i n g d u e o n
t h e B o n d s o n A u g u s t 1 5 , 1 9 9 4 , a n d a p o r t i o n o f t h e s e c o n d
i n t e r e s t p a y m e n t f a l l i n g d u e o n t h e B o n d s o n A u g u s t 1 5 ,
1 9 9 5 .
3 . $ 2 6 2 , 5 0 0 s h a l l b e d e p o s i t e d i n t o t h e R e s e r v e F u n d
( h e r e i n a f t e r c r e a t e d ) .
4 . T h e r e m a i n d e r o f t h e s a l e p r o c e e d s o f t h e B o n d s s h a l l b e
d e p o s i t e d i n t o t h e A c q u i s i t i o n F u n d e s t a b l i s h e d b y
S e c t i o n 8 o f O r d i n a n c e N o . 6 3 6 , a d o p t e d b y t h e C o u n c i l o n
J u l y 8 , 1 9 9 3 . T h e C i t y s h a l l p r o m p t l y p a y t h e r e f r o m t h e
r e a s o n a b l e a n d n e c e s s a r y c o s t s o f i s s u a n c e o f t h e B o n d s ,
i n c l u d i n g , b u t n o t l i m i t e d t o , b o n d p r i n t i n g c o s t s , f e e s
a n d e x p e n s e s o f b o n d c o u n s e l a n d d i s c l o s u r e c o u n s e l , t h e
i n i t i a l f e e s o f t h e B o n d R e g i s t r a r , a n d a l l o t h e r c o s t s
r e l a t e d t o t h e i s s u a n c e a n d s a l e o f t h e B o n d s . T h e
r e m a i n d e r o f t h e p r o c e e d s o f t h e B o n d s s h a l l b e u t i l i z e d
s o l e l y f o r t h e a c q u i s i t i o n o f t h e I m p r o v e m e n t s a s
p r o v i d e d i n t h e A g r e e m e n t f o r t h e A c q u i s i t i o n o f
I m p r o v e m e n t s d a t e d M a y 1 3 , 1 9 9 3 , b y a n d b e t w e e n t h e C i t y
a n d S p r i n g M o u n t a i n R a n c h P a r t n e r s h i p ( t h e " A c q u i s i t i o n
A g r e e m e n t " ) ; p r o v i d e d , t h a t t h e t o t a l a c q u i s i t i o n c o s t ,
P a g e 6
"
r
i n c l u d i n g t h e f o r e g o i n g e x p e n s e s , s h a l l n o t e x c e e d t h e
a m o u n t o f n e t B o n d p r o c e e d s .
A t t h e t i m e o f o r d e r i n g p a y m e n t f o r a n y s u c h a c q u i s i t i o n , t h e
C o u n c i l s h a l l m a k e a d e t e r m i n a t i o n t h a t t h e a c t u a l v a l u e o f t h e
r e a l p r o p e r t y s u b j e c t t o a s s e s s m e n t w i t h i n L . I . D . N o . 3 , i n c l u d i n g
i m p r o v e m e n t s t h e r e o n , e x c e e d s t h e c o s t o f t h e i m p r o v e m e n t s b e i n g
f i n a n c e d b y L . I . D . N o . 3 , a s p r o v i d e d b y S e c t i o n 5 0 - 1 7 1 1 , I d a h o
C o d e .
S e c t i o n 8 : B O N D F U N D A N D I N T E R E S T F U N D
T h e C i t y T r e a s u r e r i s h e r e b y a u t h o r i z e d a n d e m p o w e r e d , a n d i t
s h a l l b e h i s d u t y , t o m a i l t o t h e o w n e r o f e a c h p a r c e l o f p r o p e r t y
s u b j e c t t o a s s e s s m e n t a n a n n u a l n o t i c e o f t h e a s s e s s m e n t
i n s t a l l m e n t o f p r i n c i p a l a n d i n t e r e s t t h e n f a l l i n g d u e , t o r e c e i v e
a n d c o l l e c t f o r L . I . D . N o . 3 a l l a s s e s s m e n t s l e v i e d o n p r o p e r t y
w i t h i n s a i d L . I . D . N o . 3 , t h e i n s t a l l m e n t s t h e r e o f , t h e i n t e r e s t
t h e r e o n , a n d t h e p e n a l t i e s a c c r u e d , a n d t o p a y a n d d i s b u r s e s u c h
p a y m e n t s t o t h e p e r s o n o r p e r s o n s l a w f u l l y e n t i t l e d t o r e c e i v e t h e
s a m e , i n a c c o r d a n c e w i t h 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 a l l
o r d i n a n c e s a n d r e s o l u t i o n s o f t h e C i t y .
A 1 1 m o n e y s c o n s t i t u t i n g p a y m e n t o f p r i n c i p a l o f s a i d u n p a i d
i n s t a l l m e n t s o f a s s e s s m e n t s f o r L . I . D . N o . 3 s h a l l b e d e p o s i t e d
i n t o a s p e c i a l f u n d , d e s i g n a t e d " C i t y o f M c C a l l L o c a l I m p r o v e m e n t
D i s t r i c t N o . 3 B o n d F u n d " ( t h e " B o n d F u n d " ) , w h i c h i s h e r e b y
c r e a t e d , a n d s h a l l b e u s e d a n d a p p l i e d f o r t h e p u r p o s e o f p a y i n g
t h e p r i n c i p a l o f t h e B o n d s h e r e i n a u t h o r i z e d a n d f o r n o o t h e r
p u r p o s e w h a t s o e v e r , a n d a s s e c u r i t y f o r s u c h p a y m e n t t h e B o n d F u n d
i s h e r e b y p l e d g e d . E x c e p t f o r a m o u n t s r e q u i r e d t o b e d e p o s i t e d
i n t o t h e R e b a t e F u n d a s h e r e i n a f t e r p r o v i d e d , i n t e r e s t e a r n i n g s o n
t h e B o n d F u n d s h a l l b e d e p o s i t e d , o n a n y B o n d p a y m e n t d a t e , i n t o
t h e R e s e r v e F u n d ( h e r e i n a f t e r c r e a t e d ) w h e n e v e r t h e a m o u n t i n t h e
R e s e r v e F u n d , f r o m w h a t e v e r s o u r c e , i s l e s s t h a n t h e R e s e r v e F u n d
R e q u i r e m e n t a s d e f i n e d h e r e i n a f t e r . W h e n e v e r t h e a m o u n t i n t h e
R e s e r v e F u n d e q u a l s t h e R e s e r v e F u n d R e q u i r e m e n t , i n t e r e s t e a r n i n g s
o n a m o u n t s i n t h e B o n d F u n d s h a l l r e m a i n i n t h e B o n d F u n d .
A l l m o n e y s c o n s t i t u t i n g p a y m e n t o f i n t e r e s t o n s a i d u n p a i d
i n s t a l l m e n t s o f a s s e s s m e n t s f o r L . I . D . N o . 3 s h a l l b e d e p o s i t e d
i n t o a s p e c i a l f u n d d e s i g n a t e d " C i t y o f M c C a l l L o c a l I m p r o v e m e n t
D i s t r i c t N o . 3 I n t e r e s t F u n d " ( t h e " I n t e r e s t F u n d " ) , w h i c h i s
h e r e b y c r e a t e d , a n d s h a l l b e u s e d a n d a p p l i e d f o r t h e p u r p o s e o f
p a y i n g t h e i n t e r e s t . o n t h e B o n d s h e r e i n a u t h o r i z e d a n d f o r n o o t h e r
p u r p o s e w h a t s o e v e r , a n d a s s e c u r i t y f o r s u c h p a y m e n t t h e I n t e r e s t
F u n d i s h e r e b y p l e d g e d ; p r o v i d e d , t h a t t h e C i t y T r e a s u r e r i s h e r e b y
a u t h o r i z e d t o t r a n s f e r t o t h e G e n e r a l F u n d o f t h e C i t y a n a m o u n t
n o t t o e x c e e d t w o p e r c e n t ( 2 . 0 % ) o f e a c h p r i n c i p a l a n d i n t e r e s t
i n s t a l l m e n t p a y m e n t r e c e i v e d f o r t h e p u r p o s e o f r e i m b u r s i n g t h e
c i t y f o r i t s t i m e a n d e x p e n s e i n v o l v e d i n t h e a d m i n i s t r a t i o n o f
P a g e 7
"
"
o s
L . I . D . N o . 3 , i n c l u d i n g , b u t n o t l i m i t e d t o , t h e c o s t o f m a i l i n g
i n s t a l l m e n t p a y m e n t n o t i c e s , t h e a n n u a l f e e s o f t h e B o n d R e g i s t r a r ,
n e c e s s a r y l e g a l f e e s , a n d a l l o t h e r c o s t s r e l a t e d t o t h e
a d m i n i s t r a t i o n o f L . I . D . N o . 3 . I n t e r e s t e a r n e d o n m o n e y s i n t h e
I n t e r e s t F u n d ( e x c e p t f o r a m o u n t s , i f a n y , r e q u i r e d t o b e d e p o s i t e d
i n t o t h e R e b a t e F u n d ) s h a l l b e d e p o s i t e d , a s o f e a c h B o n d p a y m e n t
d a t e , i n t o t h e R e s e r v e F u n d , u n l e s s t h e a m o u n t i n t h e R e s e r v e F u n d
e q u a l s t h e R e s e r v e F u n d R e q u i r e m e n t , i n w h i c h c a s e i n t e r e s t
e a r n i n g s s h a l l r e m a i n i n t h e I n t e r e s t F u n d .
T h e r e i s h e r e b y c r e a t e d w i t h i n t h e I n t e r e s t F u n d a s p e c i a l
s u b a c c o u n t t o b e d e n o m i n a t e d t h e " P r e p a y m e n t S u b a c c o u n t , " i n t o
w h i c h s h a l l b e d e p o s i t e d a s r e c e i v e d a l l m o n e y s r e p r e s e n t i n g t h e
i n t e r e s t p o r t i o n o f a n y a s s e s s m e n t s p a i d p r i o r t o t h e i r s c h e d u l e d
f i n a l i n s t a l l m e n t d a t e , i n c l u d i n g p e n a l t i e s t h e r e o n . M o n i e s i n t h e
P r e p a y m e n t S u b a c c o u n t s h a l l b e u t i l i z e d a s f o l l o w s :
1 . P a y m e n t i n t o t h e R e b a t e F u n d o f a m o u n t s , i f a n y , r e q u i r e d
t o p a y a r b i t r a g e r e b a t e .
2 . P a y m e n t o f i n t e r e s t a n d r e d e m p t i o n p r e m i u m , i f a n y , o n
B o n d s c a l l e d f o r p a y m e n t p r i o r t o t h e i r s t a t e d d a t e s o f
m a t u r i t y .
3 . P a y m e n t i n t o t h e R e s e r v e F u n d t o t h e e x t e n t t h a t t h e
a m o u n t o f m o n e y i n t h e R e s e r v e F u n d i s l e s s t h a n t h e
R e s e r v e F u n d R e q u i r e m e n t ( a s d e f i n e d i n S e c t i o n 9 o f t h i s
O r d i n a n c e ) .
A n y e x c e s s a m o u n t s r e m a i n i n g i n t h e P r e p a y m e n t S u b a c c o u n t o n a n y
B o n d p a y m e n t d a t e a f t e r u t i l i z i n g t h e m o n e y s i n t h e m a n n e r s e t
f o r t h a b o v e s h a l l b e p a i d i n t o t h e I n t e r e s t F u n d a n d c r e d i t e d
a g a i n s t t h e i n t e r e s t p o r t i o n o f a s s e s s m e n t s n e x t f a l l i n g d u e .
B o t h 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 a r e p a y a b l e o n l y
o u t o f s a i d B o n d F u n d a n d I n t e r e s t F u n d , a n d , i f n e c e s s a r y , o u t o f
t h e L o c a l I m p r o v e m e n t D i s t r i c t N o . 3 R e s e r v e F u n d , h e r e i n a f t e r
c r e a t e d , a n d n o t o t h e r w i s e .
M o n e y s i n t h e B o n d F u n d a n d I n t e r e s t F u n d f o r L . I . D . N o . 3
s h a l l b e d e p o s i t e d i n s u c h b a n k o r b a n k s a s a r e d e s i g n a t e d a s
d e p o s i t o r i e s o f p u b l i c m o n e y s f o r t h e f u n d s o f t h e C i t y u n d e r t h e
d e p o s i t o r y l a w s o f t h e S t a t e o f I d a h o f o r t h e d e p o s i t o f p u b l i c
f u n d s o r i n v e s t m e n t s a s p r o v i d e d b y l a w .
N o t l a t e r t h a n f i v e ( 5 ) d a y s p r i o r t o a n y p r i n c i p a l a n d
i n t e r e s t p a y m e n t d a t e , t h e C i t y T r e a s u r e r s h a l l c a u s e t o b e
t r a n s f e r r e d t o t h e B o n d R e g i s t r a r f r o m t h e B o n d F u n d t h e p r i n c i p a l
a m o u n t o f B o n d s t h e n f a l l i n g d u e , a n d s h a l l c a u s e t o b e t r a n s f e r r e d
t o t h e B o n d R e g i s t r a r f r o m t h e I n t e r e s t F u n d t h e a m o u n t o f i n t e r e s t
a n d r e d e m p t i o n p r e m i u m , i f a n y , t h e n f a l l i n g d u e o n t h e B o n d s .
P a g e 8
"
"
"
S e c t i o n 9 : R E S E R V E F U N D
A . F o r t h e p u r p o s e o f f u r t h e r s e c u r i n g t h e p a y m e n t o f t h e
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 , t h e r e i s h e r e b y c r e a t e d a
s p e c i a l f u n d , s e p a r a t e a n d a p a r t f r o m a n y o t h e r f u n d s o f t h e C i t y
a n d o f L . I . D . N o . 3 , d e s i g n a t e d t h e " C i t y o f M c C a l l L o c a l
I m p r o v e m e n t D i s t r i c t N o . 3 R e s e r v e F u n d " ( t h e " R e s e r v e F u n d " ) ,
w h i c h s h a l l b e m a i n t a i n e d b y t h e C i t y T r e a s u r e r s o l o n g a s a n y
B o n d s r e m a i n o u t s t a n d i n g . T h e r e s h a l l b e t r a n s f e r r e d f r o m t h e
p r o c e e d s o f t h e B o n d s t o t h e R e s e r v e F u n d t h e s u m o f $ 2 6 2 , 5 0 0 ( o r
a n a m o u n t e q u a l t o 5 % o f t h e f a c e a m o u n t o f t h e B o n d s , w h i c h e v e r i s
l e s s ) . A 1 1 i n t e r e s t e a r n i n g s o n m o n e y s i n t h e R e s e r v e F u n d , t h e
B o n d F u n d , a n d t h e I n t e r e s t F u n d s h a l l ( s u b j e c t t o a n y a p p l i c a b l e
r e b a t e p a y m e n t r e q u i r e m e n t s ) b e d e p o s i t e d t o t h e R e s e r v e F u n d u n t i l
t h e a m o u n t i n t h e R e s e r v e F u n d e q u a l s t h e l e s s e r o f ( i ) 1 0 % o f t h e
f a c e a m o u n t o f t h e B o n d s ( l e s s o r i g i n a l i s s u e d i s c o u n t ) , ( i i ) 1 2 5 %
o f t h e a v e r a g e a n n u a l d e b t s e r v i c e o n t h e B o n d s , o r ( i i i ) t h e
m a x i m u m a n n u a l d e b t s e r v i c e p a y m e n t o n t h e B o n d s ( t h e " R e s e r v e F u n d
R e q u i r e m e n t " ) ; t h e r e a f t e r , s o l o n g a s t h e a m o u n t i n t h e R e s e r v e
F u n d e q u a l s t h e R e s e r v e F u n d R e q u i r e m e n t , i n t e r e s t e a r n i n g s o n
m o n e y s i n t h e R e s e r v e F u n d s h a l l ( s u b j e c t t o a n y r e b a t e p a y m e n t
r e q u i r e m e n t s ) b e d e p o s i t e d i n t o t h e B o n d F u n d n o t l e s s o f t e n t h a n
a n n u a l l y .
B . W h e n e v e r , o n a n y p r i n c i p a l a n d i n t e r e s t p a y m e n t d a t e ,
t h e r e a r e i n s u f f i c i e n t m o n e y s i n e i t h e r t h e B o n d F u n d o r t h e
I n t e r e s t F u n d t o m a k e t h e p a y m e n t s o f p r i n c i p a l o r i n t e r e s t t h e n
d u e , t h e a m o u n t o f a n y s u c h d e f i c i e n c y s h a l l b e w i t h d r a w n f r o m t h e
R e s e r v e F u n d a n d t r a n s f e r r e d t o t h e B o n d F u n d o r I n t e r e s t F u n d , o r
b o t h s u c h F u n d s , i n t h e a m o u n t s r e q u i r e d , t o g e t h e r w i t h o t h e r
m o n e y s i n . s u c h F u n d s , t o m a k e t h e p a y m e n t s o f p r i n c i p a l a n d
i n t e r e s t t h e n d u e . T h e a m o u n t s s o w i t h d r a w n s h a l l b e r e s t o r e d t o
t h e R e s e r v e F u n d f r o m p a y m e n t s o f t h e d e l i n q u e n t a s s e s s m e n t s u n t i l
t h e a m o u n t s o a d v a n c e d h a s b e e n r e s t o r e d . W h e n e v e r t h e a m o u n t i n
t h e R e s e r v e F u n d i s i n s u f f i c i e n t t o m e e t c l a i m s f o r p r i n c i p a l a n d
i n t e r e s t a g a i n s t t h e R e s e r v e F u n d , t h e C o u n c i l m a y , b u t s h a l l n o t
b e o b l i g a t e d t o , a p p r o p r i a t e f u n d s f r o m o t h e r l e g a l l y a v a i l a b l e
s o u r c e s t o c o v e r s u c h d e f i c i e n c y , a s p r o v i d e d b y S e c t i o n 5 0 - 1 7 7 1 ,
I d a h o C o d e , i n w h i c h e v e n t t h e C i t y s h a l l b e p r o m p t l y r e i m b u r s e d
f r o m t h e c o l l e c t i o n o f d e l i n q u e n t i n s t a l l m e n t s o f p r i n c i p a l a n d
i n t e r e s t .
C . M o n e y s i n t h e R e s e r v e F u n d s h a l l b e d e p o s i t e d o r i n v e s t e d
i n t h e s a m e m a n n e r a s o t h e r f u n d s o f t h e C i t y .
D . I n t h e e v e n t t h a t , o n a n y p r i n c i p a l a n d i n t e r e s t p a y m e n t
d a t e , t h e R e s e r v e F u n d b a l a n c e e x c e e d s t h e R e s e r v e F u n d
R e q u i r e m e n t , t h e C i t y s h a l l t r a n s f e r t o t h e B o n d F u n d t h e a m o u n t i n
e x c e s s o f t h e R e s e r v e F u n d R e q u i r e m e n t . W h e n e v e r t h e r e a r e
s u f f i c i e n t f u n d s i n t h e R e s e r v e F u n d , t o g e t h e r w i t h m o n i e s i n t h e
B o n d F u n d a n d I n t e r e s t F u n d , t o p a y a n d r e d e e m a l l B o n d s i n f u l l o n
P a g e 9
"
"
a n y p a y m e n t d a t e , t h e a m o u n t i n t h e R e s e r v e F u n d s h a l l b e
t r a n s f e r r e d t o t h e B o n d F u n d a n d / o r I n t e r e s t F u n d a n d u t i l i z e d t o
m a k e s u c h p a y m e n t .
E . I f a n y a s s e s s m e n t i s p r e p a i d i n f u l l p r i o r t o t h e f i n a l
m a t u r i t y o f t h e B o n d s , t h e a m o u n t o f p r i n c i p a l t o b e p r e p a i d s h a l l
b e r e d u c e d b y a n a m o u n t w h i c h i s i n t h e s a m e r a t i o t o t h e b a l a n c e
i n t h e R e s e r v e F u n d , a s o f t h e d a t e o f c a l c u l a t i o n , a s t h e o r i g i n a l
a m o u n t o f t h e a s s e s s m e n t b e i n g p r e p a i d b e a r s t o t h e t o t a l a m o u n t o f
a s s e s s m e n t s o r i g i n a l l y l e v i e d f o r L . I . D . N o . 3 .
S e c t i o n 1 0 : A C Q U I S I T I O N F U N D
A . T h e r e h a s h e r e t o f o r e b e e n c r e a t e d , b y S e c t i o n 8 o f
O r d i n a n c e N o . 6 3 6 , a d o p t e d o n J u l y 8 , 1 9 9 3 , a n A c q u i s i t i o n F u n d f o r
L . I . D . N o . 3 . M o n e y s d e p o s i t e d i n t o t h e A c q u i s i t i o n F u n d s h a l l b e
u t i l i z e d a s r e q u i r e d b y S e c t i o n 8 o f O r d i n a n c e N o . 6 3 6 a n d
S e c t i o n 7 o f t h i s O r d i n a n c e , e x c e p t a s r e q u i r e d i n t h i s s e c t i o n .
B . N o t w i t h s t a n d i n g a n y p r o v i s i o n i n O r d i n a n c e N o . 6 3 6 t o t h e
c o n t r a r y , i f , a f t e r p a y m e n t o f a l l c o s t s o f a c q u i s i t i o n o f t h e
I m p r o v e m e n t s , a n y m o n e y s ( i n c l u d i n g i n t e r e s t e a r n i n g s t h e r e o n n o t
r e q u i r e d t o b e p a i d i n t o t h e R e b a t e F u n d ) r e m a i n i n t h e A c q u i s i t i o n
F u n d , s u c h s u r p l u s m o n e y s s h a l l b e d e p o s i t e d i n t o t h e R e s e r v e F u n d ;
p r o v i d e d , t h a t a n y a m o u n t s w h i c h w o u l d c a u s e t h e a m o u n t i n t h e
R e s e r v e F u n d t o e x c e e d t h e R e s e r v e F u n d R e q u i r e m e n t s h a l l b e
d e p o s i t e d i n t o t h e B o n d F u n d .
C . I f f o r a n y r e a s o n t h e C i t y d o e s n o t a c q u i r e a l l o f t h e
I m p r o v e m e n t s , a n y u n e x p e n d e d B o n d p r o c e e d s r e m a i n i n g i n t h e
A c q u i s i t i o n F u n d a s o f J u l y 8 , 1 9 9 6 , m a y , a t t h e o p t i o n o f t h e
C i t y , b e d e p o s i t e d i n t o t h e B o n d F u n d a n d I n t e r e s t F u n d a n d
u t i l i z e d t o r e d e e m B o n d s a s p r o v i d e d i n S e c t i o n 6 o f t h i s
O r d i n a n c e .
S e c t i o n 1 1 : R E B A T E F U N D
T h e r e i s h e r e b y c r e a t e d a s p e c i a l f u n d t o b e k n o w n a s t h e
" R e b a t e F u n d , " s e p a r a t e a n d a p a r t f r o m o t h e r f u n d s a n d a c c o u n t s o f
t h e C i t y , t o b e h e l d a n d a d m i n i s t e r e d b y t h e C i t y . T h e R e b a t e F u n d
s h a l l b e u t i l i z e d f o r t h e p a y m e n t o f a n y r e b a t e a b l e a r b i t r a g e
e a r n i n g s a s s h a l l b e s e t f o r t h i n a t a x c e r t i f i c a t e t o b e e x e c u t e d
b y t h e C i t y a t t h e t i m e o f t h e d e l i v e r y o f t h e B o n d s .
S e c t i o n 1 2 : S A L E O F B O N D S
T h e s a l e o f t h e B o n d s t o W e s t h o f f - M a r t i n & A s s o c i a t e s ( t h e
" U n d e r w r i t e r " ) i s h e r e b y a u t h o r i z e d . S u c h s a l e s h a l l b e
s u b s t a n t i a l l y i n a c c o r d a n c e w i t h t h e B o n d P u r c h a s e A g r e e m e n t
a n n e x e d h e r e t o a s E x h i b i t " B , " w i t h s u c h a d d i t i o n a l d e t a i l s a s t o
t h e m a t u r i t y s c h e d u l e , i n t e r e s t r a t e s , a n d o t h e r t e r m s a s m a y b e
P a g e 1 0
"
r e q u i r e d t o c o m p l e t e t h e B o n d P u r c h a s e A g r e e m e n t ; p r o v i d e d , t h a t
t h e t e r m s o f t h e B o n d P u r c h a s e A g r e e m e n t s h a l l c o m p l y w i t h t h e
p r o v i s i o n s o f S e c t i o n 2 o f t h i s O r d i n a n c e , a n d p r o v i d e d f u r t h e r
t h a t s u c h B o n d P u r c h a s e A g r e e m e n t s h a l l b e a p p r o v e d b y t h e C o u n c i l
p r i o r t o d e l i v e r y o f t h e B o n d s .
S e c t i o n 1 3 : P U B L I C A T I O N O F O R D I N A N C E
P u r s u a n t t o I d a h o C o d e S e c t i o n 5 0 - 1 7 2 7 , t h i s O r d i n a n c e o r a
s u m m a r y t h e r e o f i n a c c o r d a n c e w i t h S e c t i o n 5 0 - 9 0 1 A , I d a h o C o d e ,
s h a l l b e p u b l i s h e d o n c e i n t h e o f f i c i a l n e w s p a p e r o f t h e C i t y . N o
c o n t e s t o r p r o c e e d i n g t o q u e s t i o n t h e v a l i d i t y o r l e g a l i t y o f t h i s
O r d i n a n c e o r o f t h e B o n d s a u t h o r i z e d h e r e b y s h a l l b e b r o u g h t i n a n y
c o u r t b y a n y p e r s o n f o r a n y c a u s e w h a t s o e v e r a f t e r t h e e x p i r a t i o n
o f t h i r t y ( 3 0 ) d a y s f r o m t h e p u b l i c a t i o n o f t h i s O r d i n a n c e , a n d
a f t e r s u c h t i m e t h e v a l i d i t y , l e g a l i t y , a n d r e g u l a r i t y o f t h i s
O r d i n a n c e a n d t h e B o n d s a u t h o r i z e d h e r e b y s h a l l b e c o n c l u s i v e l y
p r e s u m e d .
S e c t i o n 1 4 : C O V E N A N T S O F T H E C I T Y
T h e C i t y f u r t h e r c o v e n a n t s a n d a g r e e s :
A . I n a c c o r d a n c e w i t h S e c t i o n 1 4 9 ( a ) o f t h e I n t e r n a l R e v e n u e
C o d e o f 1 9 8 6 , a s a m e n d e d ( t h e " C o d e " ) , t h e B o n d s s h a l l b e i s s u e d
a n d r e m a i n i n f u l l y r e g i s t e r e d f o r m i n o r d e r t h a t i n t e r e s t t h e r e o n
b e e x c l u d e d f r o m g r o s s i n c o m e o f t h e o w n e r s o f t h e B o n d s f o r
f e d e r a l i n c o m e t a x p u r p o s e s . T h e C i t y c o v e n a n t s a n d a g r e e s t h a t i t
w i l l t a k e n o a c t i o n t o p e r m i t t h e B o n d s t o b e i s s u e d i n , o r
c o n v e r t e d t o , b e a r e r o r c o u p o n f o r m .
B . T h e B o n d s a r e q u a l i f i e d t a x - e x e m p t o b l i g a t i o n s w i t h i n t h e
m e a n i n g a n d f o r t h e p u r p o s e s o f S e c t i o n 2 6 5 ( b ) ( 3 ) o f t h e C o d e , a n d
t h e C i t y w i l l n o t d e s i g n a t e m o r e t h a n $ 1 0 , 0 0 0 , 0 0 0 , i n c l u d i n g t h e
B o n d s , a s q u a l i f i e d t a x - e x e m p t o b l i g a t i o n s d u r i n g t h e c a l e n d a r y e a r
1 9 9 3 .
C . N o n e o f t h e p r o c e e d s o f t h e B o n d s w i l l b e u s e d d i r e c t l y
o r i n d i r e c t l y ( i ) t o m a k e o r f i n a n c e l o a n s t o p e r s o n s o r ( i i ) i n
a n y t r a d e o r b u s i n e s s c a r r i e d o n b y a n y p e r s o n ( o t h e r t h a n u s e a s
a m e m b e r o f t h e g e n e r a l p u b l i c ) . F o r p u r p o s e s o f t h e p r e c e d i n g
s e n t e n c e , t h e t e r m " p e r s o n " d o e s n o t i n c l u d e a g o v e r n m e n t u n i t
o t h e r t h a n t h e U n i t e d S t a t e s o r a n y a g e n c y o r i n s t r u m e n t a l i t y
t h e r e o f , a n d t h e t e r m " t r a d e o r b u s i n e s s " m e a n s a n y a c t i v i t y
c a r r i e d o n b y a p e r s o n o t h e r t h a n a n a t u r a l p e r s o n . T h e C i t y
f u r t h e r c o v e n a n t s a n d a g r e e s t o t a k e n o a c t i o n w h i c h w o u l d c a u s e
t h e B o n d s t o b e " p r i v a t e a c t i v i t y b o n d s , " n o r w i l l i t o m i t t o t a k e
a n y a c t i o n n e c e s s a r y t o p r e v e n t t h e B o n d s f r o m b e c o m i n g " p r i v a t e
a c t i v i t y b o n d s , " w i t h i n t h e m e a n i n g o f S e c t i o n 1 4 1 o f t h e C o d e .
P a g e 1 1
"
r
D . T h e M a y o r a n d C l e r k - T r e a s u r e r , o r a n y o n e o f s u c h
o f f i c i a l s , a s m a y b e a p p r o p r i a t e , a r e e a c h h e r e b y a u t h o r i z e d a n d
d i r e c t e d t o e x e c u t e , o n b e h a l f o f t h e C i t y , s u c h c e r t i f i c a t e o r
c e r t i f i c a t e s a s s h a l l b e n e c e s s a r y t o e s t a b l i s h t h a t t h e B o n d s a r e
n o t " a r b i t r a g e b o n d s " w i t h i n t h e m e a n i n g o f S e c t i o n 1 4 8 o f t h e C o d e
a n d t h e T r e a s u r y R e g u l a t i o n s p r o m u l g a t e d t h e r e u n d e r , a n d t o
e s t a b l i s h t h a t i n t e r e s t o n t h e B o n d s i s n o t a n d w i l l n o t b e c o m e
i n c l u d a b l e i n t h e g r o s s i n c o m e o f t h e o w n e r s o f t h e B o n d s u n d e r t h e
C o d e a n d a p p l i c a b l e r e g u l a t i o n s . T h e C i t y c o v e n a n t s a n d a g r e e s
t h a t n o u s e w i l l b e m a d e o f t h e p r o c e e d s o f t h e B o n d s , o r a n y f u n d s
o f t h e C i t y w h i c h m a y , p u r s u a n t t o S e c t i o n 1 4 8 o f t h e C o d e a n d
a p p l i c a b l e r e g u l a t i o n s , b e d e e m e d t o b e p r o c e e d s o f t h e B o n d s ,
w h i c h w o u l d c a u s e t h e B o n d s t o b e " a r b i t r a g e b o n d s " w i t h i n t h e
m e a n i n g o f S e c t i o n 1 4 8 o f t h e C o d e . T h e C i t y f u r t h e r c o v e n a n t s t o
c o m p l y t h r o u g h o u t t h e t e r m o f t h e B o n d s w i t h t h e r e q u i r e m e n t s o f
S e c t i o n 1 4 8 o f t h e C o d e a n d t h e r e g u l a t i o n s p r o m u l g a t e d t h e r e u n d e r
i n o r d e r t o p r e v e n t t h e B o n d s f r o m b e c o m i n g " a r b i t r a g e b o n d s . "
E . T h e . C i t y w i l l c o m p l y w i t h t h e i n f o r m a t i o n r e p o r t i n g
r e q u i r e m e n t s o f S e c t i o n 1 4 9 ( e ) o f t h e C o d e .
S e c t i o n 1 5 : F U R T H E R A U T H O R I T Y
T h e M a y o r , C l e r k , a n d T r e a s u r e r , o r a n y o n e o f s u c h o f f i c e r s ,
a s m a y b e a p p r o p r i a t e t o t h e c i r c u m s t a n c e s , a r e h e r e b y a u t h o r i z e d
t o e x e c u t e , o n b e h a l f o f t h e C i t y , s u c h r e c e i p t s , c e r t i f i c a t i o n s ,
a n d o t h e r d o c u m e n t s , i n c l u d i n g a n o f f i c i a l s t a t e m e n t a n d o t h e r
d i s c l o s u r e d o c u m e n t s , a s m a y b e n e c e s s a r y o r a p p r o p r i a t e t o e f f e c t
t h e i s s u a n c e , s a l e , a n d d e l i v e r y o f t h e B o n d s .
S e c t i o n 1 6 : E F F E C T I V E D A T E
T h i s O r d i n a n c e s h a l l t a k e e f f e c t a n d b e i n f o r c e f r o m a n d
a f t e r i t s p a s s a g e , a p p r o v a l , a n d p u b l i c a t i o n .
D A T E D t h i s 2 8 t h d a y o f J u l y , 1 9 9 3 .
A T T E S T :
i t y C l e r k
( S E A L )
P a g e 1 2
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
M a y o r
[Face of Bond]
UNITED STATES OF AMERICA
STATE OF IDAHO
COUNTY OF VALLEY
REGISTERED REGISTERED
NO. $
See Reverse Side for
Additional Provisions
CITY OF MCCALL
LOCAL IMPROVEMENT DISTRICT NO. 3 BOND
INTEREST RATE MATURITY DATE
REGISTERED OWNER:
DATED DATE CUSIP
PRINCIPAL AMOUNT: DOLLARS
THE CITY OF MCCALL, of Valley County, Idaho (the "City"), for
value received, promises to pay from the "City of McCall Local
Improvement District No. 3 Bond Fund" (the "Bond Fund") created by
Ordinance No. 641, adopted on July 28, 1993 (the "Bond Ordinance"),
to the registered owner identified above, or registered assigns, on
the maturity date specified above, the principal sum indicated
above, and to pay interest thereon from the "City of McCall Local
Improvement District No. 3 Interest Fund" (the "Interest Fund")
created by the Bond Ordinance, from August 15, 1993, or the most
recent date to which interest has been paid or duly provided for,
at the rate per annum specified above, payable on August 15, 1994,
and annually thereafter on the fifteenth day of August of each year
until the date of maturity or prior redemption of this Bond. Both
principal and interest are payable only out of said Bond Fund and
Interest Fund, and, if necessary, from the Local Improvement
District No. 3 Reserve Fund, and not otherwise.
Page 1 - EXHIBIT "A"
Both principal of and interest on this Bond are payable in
lawful money of the United States of America, to the registered
owner hereof, whose name and address shall appear on the
registration books of the City (the "Bond Register") maintained by
the Corporate Trust Department of West One Bank, Boise, Idaho (the
"Bond Registrar"). Interest shall be paid to the registered owner
whose name appears on the Bond Register as of the close of business
on the fifteenth day next preceding the interest 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 such other address as may be. furnished in
writing by such registered owner to the Bond Registrar. Principal
shall be paid to the registered owner upon presentation and
surrender of this Bond at the office of the Bond Registrar, on or
after the date of maturity or prior redemption.
Section 50-1723, Idaho Code, reads as follows:
"LIABILITY OF MUNICIPALITY. The holder of any bond,
issued under the authority of this code, shall have no
claim therefor against the municipality by which the same
is issued, except to the extent of the funds created and
received by assessments against the property within any
local improvement district as herein provided and to the
extent of the local improvement guarantee fund which may
be established by any such municipality under the
provisions of this code, but the municipality shall be
held responsible for the lawful levy of all special taxes
or assessments herein provided and for the faithful
accounting of settlements and payments of the special
taxes and assessments levied for the payment of the bonds
as herein provided. The owners and holders of such bonds
shall be entitled to complete enforcement of all
assessments made for the payment of such bonds. A copy
of this section shall be plainly written, printed or
engraved on the face of each bond so issued."
Reference is hereby made to additional provisions of this Bond
set forth on the reverse side hereof, and such additional
provisions shall for all purposes have the same effect as if set
forth in this space.
IN WITNESS WHEREOF, the City of McCall, of Valley County,
Idaho, acting through its Mayor and Council, has caused this Local
Improvement District No. 3 Bond to be signed by the facsimile
signature of its Mayor, countersigned by the facsimile signature of
the City Treasurer, and attested by the facsimile signature of the
Page 2 - EXHIBIT "A"
City Clerk, and the official seal of the City to be reproduced
hereon, as of this fifteenth day of August, 1993.
CITY OF MCCALL
Valley County, Idaho
[facsimile signature]
Mayor
Countersigned:
[facsimile signature]
Treasurer
ATTEST:
[facsimile signature]
City Clerk
[ FACSIMILE SEAL ]
Page 3 - EXHIBIT "A"
CERTIFICATION OF AUTHENTICATION
Date of Authentication:
This Bond is one of the City of McCall Local Improvement District
No. 3 Bonds, dated as of August 15, 1993, described in the
within -mentioned Bond Ordinance.
WEST ONE BANK, IDAHO
as Bond Registrar
By:
Authorized Signature
(Reverse Side of Bond)
ADDITIONAL BOND PROVISIONS
This Bond is one of a duly authorized issue of Bonds of like
date, interest rate,' tenor, and effect, except for variations
required to state numbers, denominations, and maturities,
aggregating $5,200,000.
The Mayor and Council of said City, as the agent for said
Local Improvement District No. 3 created by Ordinance No. 630,
adopted on May 13, 1993, has caused this Bond to be issued in the
name of the City as a Bond of said Local Improvement District, said
Bond, or the proceeds thereof, to be applied in payment of certain
public improvements described in the Bond Ordinance.
Payment of the principal of and interest on this Bond is to be
borne'by owners of property within the above local improvement
district from special assessments levied upon all property
benefited by the improvements made therein. The registered owner
of this Bond shall look only to the Bond Fund and Interest Fund,
and the Local Improvement District No. 3 Reserve Fund, for the
payment of either the principal of or the interest on this Bond.
The principal sum of this Bond shall be payable from a separate
fund under the control of the City Treasurer and designated "City
of McCall Local Improvement District No. 3 Bond Fund," pledged
solely for the payment of the principal of the Bonds of the issue
of which this is one and consisting of all moneys constituting the
payment of principal of assessments unpaid at the time of the
issuance of this Bond. Interest hereon shall be payable from a
Page 4 - EXHIBIT "A"
separate fund under the control of the City Treasurer and
designated "City of McCall Local Improvement District No. 3
Interest Fund," pledged for the payment of the interest on the
Bonds of the issue of which this is one, and consisting of all
moneys constituting the payment of interest on assessments unpaid
at the time of the issuance of this Bond. Both Funds have been
created by the Bond Ordinance. In the event said Bond Fund and
Interest Fund shall be insufficient to pay the Bonds and the
interest thereon as they become due, the deficiency shall be paid
out of the City's Local Improvement District No. 3 Reserve Fund.
This Bond is issued pursuant to and in full compliance with
the Constitution and statutes of the State of Idaho, particularly
Title 50, Chapter 17, Idaho .Code, and with the Bond Ordinance.
This Bond is transferable by the registered owner hereof or
his attorney duly authorized in writing at the office of the Bond
Registrar upon surrender of this Bond accompanied by a duly
executed instrument of transfer in the form attached hereto and
with guaranty of signature satisfactory to the Bond Registrar,
subject to such reasonable regulations as the Bond Registrar may
prescribe and upon payment of any tax, fee, or other governmental
charge incident to such transfer. Upon any such transfer, there
shall be issued in the name of the transferee a new fully
registered Bond or Bonds of authorized denominations, of the same
maturity and interest rate, and for the same aggregate principal
amount as this Bond. The person in whose name this Bond is
registered shall be deemed the owner hereof for all purposes, and
neither the City nor the Bond Registrar shall be affected by any
notice to the contrary.
The City has reserved the right to redeem any or all of the
Bonds, on any interest payment date prior to their stated maturity,
whenever the City Treasurer has sufficient funds available in the
Bond Fund and Interest Fund, over and above the amounts necessary
to pay currently maturing installments of principal and interest,
at the following redemption prices, expressed as a percentage of
the principal amount of the bonds being called for redemption, plus
accrued interest to the date of redemption:
Redemption Date Redemption Price
August 15, 1994, to August 15, 2003 103%
August 15, 2004 102%
August 15, 2005 101%
August 15, 2006, and thereafter 100%
The Bonds are also subject to redemption, at par plus accrued
interest to the date of redemption, on August 15, 1996, solely
Page 5 - EXHIBIT "A"
from, and to the extent of, proceeds of the Bonds which remain
unexpended on said date.
Portions of any Bond of a denomination of more than $5,000 may
be redeemed. The portion of any Bond of a denomination of more
-
than $5,000 to be redeemed shall be in the principal amount of
$5,00 or any integral multiple of $5,000, and in selecting portions
of such Bonds for redemption the Bond Registrar shall treat each
such Bond as representing, that number of Bonds of $5,000
denomination which is obtained by dividing the principal amount of
each Bond by $5,000.
If fewer than all of the outstanding Bonds are to be redeemed,
Bonds to be redeemed are to be selected by the Bond Registrar by
lot, and shall, insofar as can be done taking into consideration
the denominations of the outstanding bonds, represent an equal
amount of Bonds from each maturity outstanding at the time of
redemption. The decision of the Bond Registrar in selecting the
Bonds for retirement will be conclusive.
Notice of any intended redemption shall be given not less than
twenty-one (21) nor more than sixty (60) days prior to the
redemption date by first class mail, postage prepaid, to the
registered owner of any Bond to be redeemed at the address
appearing on the Bond Register. The requirements of the Bond
Ordinance shall be deemed to be complied with when notice is mailed
as herein provided, regardless of whether or not it is actually
received by the owner of any Bond. Interest on all of such Bonds
so called for redemption shall cease to accrue on the date fixed
for redemption unless such Bond or Bonds so called for redemption
are not redeemed upon presentation made pursuant to such call.
The assessments authorized by the confirmed assessment rolls
in Local Improvement District No. 3 are a lien upon the property
assessed and have been pledged to pay the principal of and interest
on the Bonds of this issue, pursuant to Chapter 17, Title 50, Idaho
Code, the Local Improvement District Code of Idaho, and pursuant
also to the ordinances and resolutions of the City.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all acts
and things required by the Constitution and statutes of the State
of Idaho and the ordinances and resolutions of the City to exist,
to happen, and to be performed precedent to and in the issuance of
this Bond and the issue of which it forms a part, necessary to
constitute the same legal, binding, and valid special obligations
of Local Improvement District No. 3, in accordance with the tenor
and terms of said Bonds, have existed, have happened, and have been
performed in due time, form, and manner; and that the aforesaid
special assessments have been legally levied and that this Bond and
Page 6 - EXHIBIT "A"
the other Bonds of this issue do not exceed the amount of unpaid
assessments.
LEGAL OPINION
IT IS HEREBY CERTIFIED that the following is a true and
complete copy of the legal opinion of Davis Wright Tremaine, of
Boise, Idaho, which opinion was dated the date of delivery of and
payment for the Bonds described therein, an original of which was
delivered to me on said date, and is a part of the permanent
records of the City of McCall, Idaho.
CITY OF MCCALL
Valley County, Idaho
City Clerk
* * * * * * * * * * * *
DAVIS WRIGHT TREMAINE
* * * * * * * * * * * *
The following abbreviations, when used in the inscription on
the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM -- as tenants UNIF TRFS MIN ACT Custodian....
in common (Cust) (Minor)
TEN ENT -- as tenants under Uniform Transfer to Minors
by the entireties Act
(State)
JT TEN -- as joint tenants
with right of
survivorship and
not as tenants
in common
Additional abbreviations may also be used although not in the
above list.
Page 7 - EXHIBIT "A"
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto:
Name of Transferee:
Address:
Tax Identification No.
the within Bond and hereby irrevocably constitutes and appoints
of ,
to transfer said Bond on the books kept for registration thereof
with full power of substitution in the premises.
Dated:
Registered Owner
NOTE: The signature on this Assign-
ment must correspond with the name
of the registered owner as it
appears upon the face of the within
Bond in every particular, without
alteration or enlargement or any
change whatever.
SIGNATURE GUARANTEED:
Signature Must Be Guaranteed
by an Eligible Guarantor
Institution
Authorized Officer
* * * * * * * * * * * *
Page 8 - EXHIBIT "A"
SENT BY:HAIG-HT & HAIQHT 07-21-93 04:31PM
40843813672083388299 # 2
CITY OF McCALL
(VALLEY COUNTY, IDAHO)
LOCAL IMPROVEMENT DISTRICT NO. 3
SPECIAL ASSESSMENT BONDS
BOND PURCHASE AGREEMENT
, 1993
Honorable City Council
City of McCall
216 Park Street
McCall, Idaho 83638
Dear Honorable Council:
WESTHOFF-MARTIN & ASSOCIATES, the ("Underwriter"), acting not as a
fiduciary for you, but on behalf of itself, hereby offers to enter into this Bond Purchase
Agreement (the "Agreement") with you, the City of McCall (the "City"), for the purchase
of the Bonds herein described. The Underwriter will purchase the Bonds from the City at
a price as further described herein. This offer is made subject to the City 's acceptance of
this Agreement prior to 11:59 o clock p.m, Idaho time, on the date set forth above, or such
later date as may be mutually agreed upon. If this offer is not so accepted, this offer will
be subject to withdrawal by the Underwriter upon notice delivered to the City at any time
prior to delivery of the Bonds. Upon acceptance, this Agreement shall be in full force and
effect in accordance with its terms and shall be binding upon the City and the Underwriter.
1. Purchase. Sale and Delivery of the Bonds.
(a) Subject to the terms and conditions and in reliance upon the
representations, warranties and agreements hereinafter set forth, the Underwriter hereby
agrees to purchase from the City and the Cyty hereby agrees to issue and deliver, on behalf
of the Local Improvement District No, 3 for McCall, Idaho (the "District") to the.
Underwriter, all (but nut less than all) of the City of McCall (Valley County, Idaho), Local
Improvement District No, 3, Special Assessment Bonds (the "Bonds"), dated as of August
15, 1993, in an aggregate principal amount of S5,200,000. The Bonds shall have the
maturities and bear interest at the rates shown in Exhibit A. Such interest is payable
annually on August 15 of each year, commencing August 15, 1994. The Bonds are subject
to redemption at the prices and according to the terms of Ordinance No.
adopted by the City Council of the City on July 2Z 190 (the "Bond Ordinance" .
EXHIBIT "B"
mcry r tiY : HA 1 GHT & HA 1 GHT 07-21-93 04: 32PM
40843813674 2033388299 # 3
Honorable City Council
City of .+McCall
.Page • 2 -
The total purchase price of the Bonds shall be $5,200,000, which is the aggregate
principal amount of the Bonds less an underwriting discount of $ plus accrued
interest to the date of closing (as hereinafter de
defined) (the purchase price for the Bonds
shall hereinafter be referred to as the "Purchase Price") The Bonds shall otherwise be
substantially in the form described in and shall be issued, delivered and secured under and
pursuant to, and shall be payable and subject to redemption as provided in the Bond
Ordinance, the Official Statement relating to the Bonds (the 'Official Statement"), Tide .
50, Chapter 17 of the Idaho Code, and Title 57, Chapter 9 of the Idaho Code, (collectively,
the references to the Idaho Code shall be hereinafter referred to as the "Bond Act').
(b) At 8;00 o ' clock a.m., Idaho dme, on , 1993, or on
such date as we mutually agree upon (the °Closing Date"), the City will deliver or cause
to be delivered to the Underwriter, at a location or locations within the United States of
America to be designated by the Underwriter, the Bonds in definitive form, duly executed
and authenticated. The Underwriter will accept such delivery and pay to the order of the
City the purchase price of the Bonds as set forth in subparagraph (a) above in Lawful money
of the United States of America, payable by wire transfer of immediately available funds
(such delivery and payment being herein referred to as the "Closing"). The definitive
Bonds shall be delivered as fully registered Bonds in such denominations and registered in
such names as the Underwriter shall have requested in writing to the Bond Registrar at
least five (5) business days prior to the Closing.
(c) By its acceptance of this Agreement, the City approves the Official
Statement, with such changes as may be made thereto, with the approval of Davis Wright
Tremaine, Bond Counsel (the 'Bond Counsel") and the Underwriter, from time to time
prior to the Closing Date. The City hereby authorizes the Underwriter to use and
distribute in connection with the offer and sale of the Bonds the Official Statement, the
Bond Ordinance, this Agreement and all information contained herein, and all other
documents, certificates, and statements furnished by the City to the Unde:vvriter in
connection with the transactions contemplated by this Agreement.
(d) The Underwriter agrees to make a bona fide public offering of all the
Bonds at the initial offering price set forth in the Official Statement, which price may be
changed from time to time by the Underwriter. The City hereby ratifies the use by the
Underwriter of any preliminary Official Statement in the marketing of the Bonds.
SENT BY:HAIGHT & HAIGHT 07-21-93 04:33FM
40843813672083388299 # 4
lionorabk City COWICil
City of McCall
Page - 3 -
2. aenresentatiorls, WarrantiP� And Agr% „dig gtAlQ City,
The City represents and warrants to and agrees with the Underwriter as of the date
hereof and as of the Closing Date that;
(a) The City is duly organized and validly existing as a City under the
Constitution and laws of the State of Idaho and has, and at the Closing Date will have,
full legal right, power, and authority (i) to enter into this Agreement, (ii) to issue, sell and
deliver the Bonds to the Underwriter as provided herein, and WO to carry out, give effect
to,. and consummate the transactions contemplated by this Agreement, the Bond Ordinance,
the Official Statement, and any City resolutions, or agreements referred to therein,
(b) The City has complied, and will at the Closing Date be in compliance,
in all material respects, with the agreements on its part contained in the Bond Ordinance,
the Bond Act, and all other applicable laws and the agreements referred to in subsection
(a) hereof.
(c) The City has, or prior to the Closing Date, will have, duly and validly;
(i) adopted the Bond Ordinance and approved and authorized the execution and delivery
of the Bonds, this Agreement, the Official Statement, and any other applicable agreements;
and (11) authorized and approved the performance by the City of its obligations contained
in, and the taking of any and all action as may be necessary to carry out, give effect to, and
consummate the transactions contemplated by, each of said documents; and at the Closing
Date (assuming due authorization, execution, and delivery by the respective other parties
thereto, where necessary), the Bonds, the Bond Ordinance, this Agreement, and any other
applicable agreements will constitute the valid and legal special obligations of the City,
binding in accordance with their terms (the Bonds of which are payable solely from the
collection of assessments levied on all property subject to assessment within the District),
enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, and
other laws affecting the enforcement of creditors ' rights in general and to the application
of equitable principles if equitable remedies are sought,
(d) The City is not, and at the Closing Date will not be, in any respect
material to the transactions referred to herein or contemplated hereby, in breach of or
default under any law or administrative rule or regulation of the State of Idaho, the United
States of America, of any department, division, agency, or instrumentality of either thereof,
or any applicable court or administrative decree or order, of any loan agreement, note
resolution, indenture, contract agreement, or other instrument to which the City is a party
or is otherwise subject or bound; and the adoption of the Bond Ordinance, and the
execution and delivery of the Bonds, this Agreement; any other applicable agreements, and
the other instruments contemplated by any of such documents to which the City is a party,
and compliance with the provisions of each thereof, will not, in any respect material to the
transactions referred to herein or contemplated hereby, conflict with or constitute a breach
��t I T H Y : H A I G H T & H A I G H T
0 7 - 2 1 - 9 3 0 4 : 3 3 P M 4 0 8 4 3 8 1 3 6 7 4
2 0 5 3 3 6 5 2 9 9 # S
N o n a r a b k C i t y C o u n c i l
C i t y o f M c C a l l
P a g e - 4 "
o f o r d e f a u l t u n d e r a n y a p p l i c a b l e l a w o r a d m i n i s t r a t i v e r u l e o r r e g u l a t i o n o f t h e S t a t e o f
I d a h o , t h e U n i t e d S t a t e s o f A m e r i c a , o r o f a n y d e p a r t m e n t , d i v i s i o n , a g e n c y , o r
i n s t r u m e n t a l i t y o f e i t h e r t h e r e o f , o r a n y a p p l i c a b l e c o u r t o r a d m i n i s t r a t i v e d e c r e e o r o r d e r ,
o f a n y l o a n a g r e e m e n t , n o t e , r e s o l u t i o n , i n d e n t u r e , c o n t r a c t , a g r e e m e n t , o r o t h e r i n s t r u m e n t
t o w h i c h t h e C i t y i s a p a r t y o r i s o t h e r w i s e s u b j e c t o r b o u n d .
( e ) A l l a p p r o v a l s , c o n s e n t s , a u t h o r i z a t i o n s , e l e c t i o n s , a n d o r d e r s o f o r t i l i n g
o r r e g i s t r a t i o n s w i t h a n y g o v e r n m e n t a l a u t h o r i t y , b o a r d , a g e n c y , o r c o m m i s s i o n h a v i n g
j u r i s d i c t i o n o v e r t h e C i t y w h i c h w o u l d c o n s t i t u t e a c o n d i t i o n p r e c e d e n t t o , o r t h e a b s e n c e s
o f w h i c h w o u l d m a t e r i a l l y a d v e r s e l y a f f e c t , t h e p e r f o r m a n c e b y t h e C i t y o f i t s o b l i g a t i o n s
h e r e u n d e r a n d u n d e r t h e B o n d O r d i n a n c e , t h e B o n d s , a n d a n y o t h e r a p p l i c a b l e a g r e e m e n t s
h a v e b e e n o b t a i n e d .
( f ) T h e B o n d s , t h e B o n d O r d i n a n c e , a n d o t h e r a p p l i c a b l e a g r e e m e n t s
c o n f o r m a s t o f o r m a n d t e n o r t o t h e d e s c r i p t i o n s t h e r e o f c o n t a i n e d i n t h e O f f i c i a l
S t a t e m e n t ; a n d t h e B o n d s , w h e n d e l i v e r e d t o a n d p a i d f o r b y t h e U n d e r w r i t e r o n t h e
C l o s i n g D a t e a s p r o v i d e d h e r e i n , w i l l b e v a l i d l y i s s u e d a n d o u t s t a n d i n g a n d e n t i t l e d t o a l l
t h e b e n e f i t s a n d s e c u r i t y o f t h e B o n d O r d i n a n c e .
T h e
l a s s e s s m e n t s
S t a t e m e n t h a v e b e e n
d u l y a n d l a w f u l l y l e v i e d u n d e r a n d p u r s u a n t T i t l e 5 0 , r r e d t o i n t h e C h a p t e r 0 1 7 , , o f f h e I d a h o C o d a a n d
t h e B a n d A c t , a n d s u c h a s s e s s m e n t s c o n s t i t u t e v a l i d a n d l e g a l l y b i n d i n g l i e n s o n t h e
p r o p e r t i e s o n w h i c h t h e y h a v e b e e n l e v i e d , a l l a s d e s c r i b e d i n t h e O f f i c i a l S t a t e m e n t .
( h ) A s d i s c l o s e d i n t h e O f f i c i a l S t a t e m e n t , t h e r e a r e n o o u t s t a n d i n g
a s s e s s m e n t l i e n s l e v i e d b y t h e C i t y a g a i n s t t h e p r o p e r t i e s w i t h i n t h e D i s t r i c t w h i c h a r e
s e n i o r t o t h e a s s e s s m e n t l i e n s r e f e r r e d t o i n p a r a g r a p h ( g ) h e r e o f .
( i ) T o t h e b e s t k n o w l e d g e o f t h e C i t y , t h e O f f i c i a l S t a t e m e n t i s , a n d w i l l
b e , a s o f t h e C l o s i n g D a t e , t r u e , c o r r e c t , a n d c o m p l e t e i n a l l m a t e r i a l r e s p e c t s ; a n d , t o t h e
b e s t k n o w l e d g e o f t h e C i t y , t h e O f f i c i a l S t a t e m e n t d o e s n o t , a n d w i l l n o t , a s o f t h e C l o s i n g
D a t e , c o n t a i n a n y u n t r u e s t a t e m e n t o f a m a t e r i a l f a c t o r o m i t t o s t a t e a m a t e r i a l f a c t
r e q u i r e d t o b e s t a t e d t h e r e i n o r n e c e s s a r y t o m a k e t h e s t a t e m e n t s t h e r e i n , i n l i g h t o f t h e
c i r c u m s t a n c e s u n d e r w h i c h t h e y w e r e m a d e , n o t m i s l e a d i n g .
( j ) T h e C i t y : ( i ) c e r t i f i e s t o t h e U n d e r w r i t e r , a s o f t h e d a t e h e r e o f , t h a t
t h e P r e l i m i n a r y O f f i c i a l S t a t e m e n t f u r n i s h e d i n r e l a t i o n t o t h e p r o p o s e d s a l e o f t h e B o n d s ,
w a s " d e e m e d f i n a l " ( w i t h i n t h e m e a n i n g o f R u l e 1 5 c 2 - 1 2 p r o m u l g a t e d u n d e r t h e S e c u r i t i e s
E x c h a n g e A c t o f 1 9 3 4 ( " R u l e 1 5 c 2 . 1 2 " ) b y t h e C i t y a s o f i t s d a t e , w i t h p e r m i t t e d o m i s s i o n s :
( i t ) a g r e e s t o p r o v i d e t h e U n d e r w r i t e r w i t h a s m a n y c o p i e s a s m a y b e r e q u e s t e d o f t h e f i n a l
O f f i c i a l S t a t e m e n t a d o p t e d b y t h e C i t y i n r e l a t i o n t o t h e s a l e b y t h e C i t y o f t h e B o n d s
w i t h i n s e v e n ( 7 ) b u s i n e s s d a y s a f t e r t h e d a t e h e r e o f , a t t h e s o l e c o s t a n d e x p e n s e o f t h e
C i t y ; a n d ( i i i ) a g r e e s t o p r o v i d e t h e U n d e r w r i t e r , b y w r i t t e n n o t i c e , o f a n y " d e v e l o p m e n t s
t h a t i m p a c t t h e a c c u r a c y a n d c o m p l e t e n e s s o f t h e k e y r e p r e s e n t a t i o n s " ( w i t h i n t h e m e a n i n g
l
SENT PY:HAIGHT & HAIGHT
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Honorable City Council
City of ,McCall
Page-5-
of Rule 15c2-12) contained in the final Official Statement, which may occur in the period
commencing as of the date hereof and ending on the 90th day next following such date of
acceptance, unless such final Official Statement is available from a "nationally recognized
municipal securities information repository" (within the meaning of Rule 15c2-12), In which
event such period shall end on the 25th day next following such date of acceptance.
(k) The Bond Ordinance creates a valid pledge of, lien upon, and security
interest in the unpaid assessments in the District imposed to secure the Bonds and the
interest on such unpaid assessments and the moneys in all funds and accounts established
pursuant to the Bond Ordinance, including the investments thereof, subject in all cases to
the provisions of the Bond Ordinance permitting the application thereof for the purposes
and on the terms and conditions set forth therein.
(1) No action, suit, proceeding, inquiry, or investigation, at law or in
equity, before or by any court, regulatory agency, or public board or body is pending, or to
the best knowledge of the City, threatened, in any way affecting the existence of the City
or the titles of its officers to their respective offices or seeking to restrain or to enjoin the
issuance, sale, or delivery of the Bonds, the applications of the proceeds thereof in
accordance with the Bond Ordinance, the collection or application of assessments pledged
to pay the principal of and interest on the Bonds, or the pledge thereof, or in any way
contesting or affecting the validity or enforceability of the Bonds, the Bond Ordinance, any
other applicable agreements, this Agreement, or any action of the City contemplated by an
of said documents, or in any way contesting the completeness or accuracy of the Official
Statement or the powers of the City or its authority with respect to the Bonds, the Bond
Ordinance, any other applicable agreements, this Agreement, or any action of the City
contemplated by any of said documents, or in any way seeking to enjoin or restrain the City
from approving the development of any of the property within the District, or which would
adversely affect the exclusion from gross income of interest paid on the Bonds from federal
income taxation or exemption under Idaho personal income taxation; nor to the best
knowledge of the City, is there any basis therefor.
3. Conditions to _the OhliggYione of the Underwritel.
The Underwriter hereby enters into this Agreement in reliance upon the
representations and warranties of the City contained herein and in reliance upon the
representations and warranties to be contained in the documents and instruments to be
delivered at the Closing and upon the performance by the City of its obligations hereunder,
both on and as of the date hereof and as of the Closing Date, Accordingly, the
Underwriterfs obligations under this Agreement, to accept delivery of and pay for the
Bonds on the Closing Date shall be subject, at the option of the Underwriter; () to the
accuracy in all material respects of the representations and warranties on the part of the
City contained herein as of the date hereof and as of the Closing Date; (2) to the accuracy
in all material respects of the statements of the officers and other officials of the City made
In any certificate or other document furnished pursuant to the provisions hereof; (3) to the
EY:HAIGHT & HAIGHT
07-21-93 04:38PM 40843813E7-4
2083388299 4 7
Honorable City Council
City of McCall
Page - 6 -
performance by the City of its obligations to be performed hereunder and under the Bond
Ordinance at or prior to the Closing Date; and (4) to the following additional conditions:
(a) The improvements being financed by the City within the District must
be owned and controlled by the City upon acquisition thereof by the City.
(b) The representations and warranties of the City contained herein shall
be true, complete and correct in all material respects on the date hereof and on the Closing
Date, as if made on and at the time of Closing.
(c) At the time of the Closing, the Bond Ordinance, this Agreement, and
any other applicable agreements, shall have been duly authorized. executed, issued and
delivered by the respective parties thereto, in substantially the forms heretofore presented
to the Underwriter, with only such changes as shall have been agreed to by the
Underwriter, and said agreements, documents and instruments shall be in full force and
effect, and shall not have been amended, modified or supplemented, except as shall have
been agreed to by the Underwriter; and the Underwriter shall have received, in appropriate
form, evidence thereof.
At the time of the
have been apprroved and confirmed by theoCitgy andefi filed in thenments for thoffice of t eoRecors shall
Valley County, Idaho. do of
(e) Between the date hereof and the Closing Date, the market price or
marketability of the Bonds shall not have been materially adversely affected, in the
judgment of the Underwriter (evidenced by a written notice to the City terminating the
obligation of the Underwriter to accept delivery of and make any payment for the Bonds),
by reason of any of the following:
(1) legislation enacted (or resolution passed) by or introduced or
pending legislation amended in the Congress or recommended for passage by the President
of the United States, the Secretary of the Treasury or any member of Congress or a
decision rendered by a court established under Article NI of the Constitution of the United
States or by the 'Tax Court of the United States, or an order, ruling, regulation (final,
temporary or proposed), press release, or other form of communication issued or made by
or on behalf of the Treasury Department of the United States or the internal Revenue
Service, with the purpose or effect, directly or indirectly, of imposing federal income
taxation upon interest as would be received by the owners of the Bonds with respect to the
Bonds;
(2) the declaration of war or engagement in major military
hostilities by the United States or the occurrences of any other national emergency or
calamity relating to the effective operation of the government of or the financial community
of the United States;
SENT BY:HA1GHT & HA1GHT
4 I.
L •
07-21-93 04:38PM
410843813679 2083388299 # 8
Honorable City Council
City of McCall
Pgfe - 7 -
(3) the declaration of a general banking moratorium by federal,
New York or Idaho authorities, or the general suspension of trading on any national
securities exchange;
(4) the imposition by the New York Stock Exchange or other
national securities exchange, or any governmental authority, of any material restrictions not
now in force with respect to the Bonds or obligations of the general character of the Bonds
or securities generally, or the material increase of any such restrictions now in force,
including those relating to the extension of credit by, or the charge to the net capital
requirements of, the Underwriters; or
(5) legislation enacted (or resolution passed) by or introduced or
pending legislation amended in the Congress or recommended for passage by the President
of the United States, or an order, decree or injunction issued by any court of competent
jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or
other form of communication issued or made by or an behalf of the Securities and
Exchange Commission, or any other governmental agency having jurisdiction of any other
governmental agency having jurisdiction of the subject matter, to the effect that obligations
of the general character of the Bonds, or the Bonds, including any or all underlying
arrangements, are not exempt from registration under or other requirements from which
they are now exempt under the Securities Act of 1933, as amended, or that the Bond
Ordinance is not exempt from qualification under or other requirements of the Trust
indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of
the general character of the Bonds, or the Bonds, including any or all underlying
arrangements as contemplated hereby, otherwise is or would be in violation of the federal
securities laws as amended and then in effect.
(f) At or prior to the Closing Date, the Underwriter shall have received
the following documents, in each case satisfactory in form and substance to the
Underwriter:
(1) a certified copy of the Bord Ordinance duly executed and
delivered by the respective parties;
to the City, (2) the approving opinion, dated the Closing Date and addressed
of Bond Counsel, and an opinion of such counsel, dated the Closing Date and
addressed to the Underwriter, to the effect that such opinion may be relied upon by the
Underwriter to the same extent as if such opinion were addressed to them;
(3) a certificate or certificates, dated the Closing Date, signed b
the Mayor or another duly authorized official of the City as may be authorized pursuant to
the Bond Ordinance, and in form and substance satisfactory to the Underwriter, to the
effect that, to the best of his or her knowledge, (A) the representations and warranties of
nr:HLRIGHT & HRIGHT P7-21-93 04:36PM
4084381367.4 2063366299 4 9
Honorable City Council
City of McCall
Page-8-
the City contained in Section 2 of this Agreement are true and correct in all material
respects on and as of the Closing Date with the same effect as if made on the Closing Date;
and (B) no litigation is pending or threatened (i) to restrain or enjoin the issuance, sale or
delivery of any of the Bonds or the validity of the assessments, (ii) in any way contesting
or affecting the validittyy of this Agreement, the Bonds or the Bond Ordinance, or (iii) in any
way contesting the existence or powers of the District or the City;
(4)
(5)
a non -arbitrage certificate in form satisfactory to Bond Counsel;
a 10b-5 opinion of Disclosure Counsel;
(6) such additional legal opinions, certificates, proceedings,
instruments and other documents as the Underwriter or Bond Counsel may reasonably
request to evidence the truth and accuracy, as of the date hereof and as of the Closing
Date, of the representations of the City herein, and the due performance or satisfaction
by the City at or prior to the Closing of all agreements then to be performed and all
conditions then to be satisfied by the City in connection with the transactions contemplated
hereby and by the Bond Ordinance;
(g) On the Closing Date, immediately following the receipt of the proceeds
of the sale of the Bonds, the Reserve Account for the Bonds shall be funded in an initial
amount of five percent (5%) of the principal amount of the Bonds. This amount is
determined by the Underwriter to be reasonably required in marketing the Bonds.
4. EallMlitot
(a) Neither the City nor the Underwriter shall be under any obligation to
pay, other than out of Bond proceeds, any expenses incident to the City • s or the
Underwriter's obligations hereunder, including, but not limited to, (I) the fees and
disbursements of any accountants and other experts, consultants or advisers retained; (ti)
the cost of preparation, printing and mailing or delivery of the definitive Bonds; (iii) the
cost of preparation, printing and distribution of the Preliminary Official Statement and of
the Official Statement; (iv) the fees and disbursements of Bond Counsel; (v) the fees and
disbursements of Disclosure Counsel; (vi) the fees and disbursements of the Bond Registrar,
and its counsel; (vii) the cost of any appraisals used in connection with the marketing of the
Bonds; and (viii) the costs of publication or mailing of notices as required by the Bond
Ordinance.
(b) The Underwriter shall pay (i) all advertising expenses in connection
with the public offering of the Bonds (ii) the cost of preparation of this Agreement and (iii)
all other expenses incurred by them or any of them in connection with the public offering
and distribution of the Bonds.
=Vt HY:HA1GHT & HA1GHT
k.
0?-21-93 04:37PM
40843813674 2083388299 #10
Honorable City Council
City of McCall
Page - 9 -
5 ST lm
Any notice or other communication to be given to the City wader this
Agreement may be given by delivering the same in writing to:
City of McCall
P.O. Box 1065
216 Park Street
McCall. Idaho 83638
Attn: City Clerk
w/copy City Attorney
Underwriter: Westhoff -Martin & Associates
3675 Mt. Diablo Blvd., Suite 350
Lafayette, CA 94549
Attn: Mr. Mark Holmstedt
6. Parties in .Interest; Governing Law.
This Agreement is made solely for the benefit of the City and the Underwriter
(including successors or assigns of the Underwriter) and no other person shall acquire or
have any right hereunder or by virtue hereof, This Agreement shall be governed by the
laws of the State of Idaho,
7.
The City:
S �rviyt�l of Renrec_�nt,�tions .,nd W rsan-;rQ
The representations and warranties of the City set forth in or made pursuant
to this Agreement shall not be deemed to have been discharged, satisfied or otherwise
rendered ,void by reason of the Closing or termination of this Agreement and regardless of
any investigations or statements as to the results thereof made by or on behalf of the
Underwriter and regardless of delivery of and payment for the Bonds.
8. Counterpart6.
This Agreement may be executed in several counterparts, each of which shall
be an original and all of which shall constitute but one and the same instrument.
Jtly 1 tir : NP 1 GHT & HA 1 GHT
1
07-21-93 04:38PM
4084381387-) 2083388299 #11
Honorable City Council
City of McCall
Page - 10 -
9. Effective.
This Ageement shall become effective and binding upon the respective
parties hereto upon the execution of the acceptance hereof by a duty authorized officer of
the City, and shall be valid and enforceable as of the time of such acceptance.
Very truly yours,
WESTHOFF-MARTINI & ASSOCIATES
By:
ACCEPTED AS OF THE DATE ABOVE STATED:
ATTEST:
City Clerk
CITY OF McCALL
By:
ACCEPTED AS OF THE lDATE ABOVE STATED:
PROPERTY OWNER
BY:
07-21-93 04:38PM
40843813674 2083368299 ##12
EXHIBIT vgAle
CITY OF McCALL
(VALLEY COUNTY, Y, IDAHO)
LOCAL IMPROVEMENT DISTRICT NO. 3
SPECIAL ASSESSMENT BONDS
Year Amount Coupon Price
19%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
5,200,000
Publisher's Affidavit of Publication
STATE OFIDAHO
.SS
County of Valley
I, Ramona A. George, being duly sworn and say, I am the receptionist
of The Central Idaho Star -News, a weekly newspaper published at McCall, in
the County of Valley, State of Idaho; that said newspaper is in general
circulation in the county of aforesaid and is a legal newspaper; that the
NOTICE OF RESOLUTION 24-93, a copy of which is enclosed hereto and is
a part hereof, was published in said newspaper once a week for one consecu-
tive week in the regular and entire issue of every number there of during the
period of time of publication, and was published in the newspaper proper and
not in a supplement; and that publication of such notice began August 5, 1993
�andyanded August 5, 1993.._
vrc)(\q
5ubs'cribed andfsworn before my i �ifie VA .day of August, 1993.
STATE OF IDAHO ( \
COUNTY OF VALLEY
On this 12th day of August, in the year of 1993, before me, a Notary
Public, personally appeared Ramona A. George, known or identified to me to
be the person whose name subscribed to the within instrument, and being by
me first duly sworn, declared that the statements t rare true, and acknowl-
edged to me that she executed the same
a
Tom Grote
Notary Public for Idaho
Residing at McCall, Idaho
Commission Expires: 1999
RESOLUTION NO.24.93
A RESOLUTION OF THE CITY OF
MCCALL, IDAHO, APPROVING, PURSU-
ANT TO S ECTION 50-901A, IDAHO CODE,
A SUMMARY OF ORDINANCE NO. 641
FOR PUBLICATION
WHEREAS, the City of McCall, of Valley
County, Idaho (the "City'), on July 28, 1993,
adopted Ordinance No: 641, authorizing the
issuance and sale of the City's Local Improve-
ment District No. 3 Bonds in the principal
amount of $5,200,000; and
WHEREAS, the City is authorized, by Sec-
tion 50.901A, Idaho Code, to publish, m lieu
of the endre Ordinance, a summurthhereof.
NOW, THEREFORE, BE IT ED
BY THE CITY COUNCIL OF THE CITYVOF
MCCALL, IDAHO, u follows:
Section
of Ordinance
No. 61 41, adopted by the McCall City Coto cll
on July 28, 1993, a copy of which summary is
annexed hereto as F.xhibit "A," be, and the
same is hereby, approved.
b{JR
rapssffect
ande in force fromand ateluage and
approval.
. DATED this 28th day of July, 1993.
;CITY OF MCCALL
Valley County, Idaho
By Laurence A. Smith, Jr., Mayor
ATTEST: Arthur J. Schmidt, City Clerk
SUMMARY OF
ORDINANCE NO. 641
AN ODINANCE OFY OF
MCCALLR IDAHO, AUTHOR1IZING THE
ISSUANCE AND SALE OF LOCAL IM-
PROVEMENT DISTRICT NO. 3 BONDS;
SPECIFYING THE DATE, FORM,
MATURITIES AND REGISTRATION OF
AND MAXIMUM NET EFFECTIVE IN-
TEREST RATE ON SAID BONDS;
PROVIDING FOR THE EXECUTION AND
MANNER OF PAYMENT OF THE BONDS;
APPOINTING A BOND REGISTRAR; PRO-
VIDING FOR REDEMPTION OF BONDS
PRIOR TO THEIR STATED MATURITIES;
PROVIDING FOR THE APPLICATION AND
USE OF BOND PROCEEDS; PROVIDING
FOR THE PAYMENT OF ADMINISTRA-
TIVE COSTS OF THE CITY;
ESTABLISHING A BOND FUND, INTER-
EST FUND, REBATE FUND, AND
RESERVE FUND FOR THE BONDS; AU-
THORIZING THE SALE OF THE BONDS
AT PRIVATE SALE AND THE EXECU-
TION OF A BOND PURCHASE AGREE-
MENT WITH RESPECT THERETO;
PROVIDING COVENANTS WITH RE-
SPECTTO THE BONDS; PROVIDING FOR
PUBLICATION AND EFFECTIVE DATE;
AND PROVIDING FOR OTHER MATTERS
RELATING THERETO
A summary of the principal provisions of
Ordinance No. 641 of the City of McCall,
Valley County, Idaho, adopted on July 28,
1993, Is as follows:
Section It Authorizes the iuuance of
Local Improvement District No. 3 Bonds (the
. "Bone')lnthe principalamountof$5,200,000.
Section ds, and
provides for establishment�sof the the nmawrity
schedule and interest rates on the Bonds.
Section 3t Provides for execution of the
Bonds.
Section 4: Provides for the place and man-
ner of payment of the Bonds.
Sale; Appoints West One Bank,Idaho,
as Bon Reif -sitar sitar and provides for a system of
resistradon of the Bone.
Bons or to their stet domatu ty. don of �e
Secdon 7t Provides for the application of
bond proceeds.
See:hal; Establishes a Bond Fund and
Interest Fun . .
Secdon 9t Establishes a Reserve Fund for
the Bonds.
Section 10t Provides for utilization of
funds in the Acquisition Fund.
Secdon 11 Establishes a Rebate Fund.
Section 12: Provides for sale of the Bone.
Ordinance lication of
*bp: Provides
oria summary the of and
establishes a al period.
•
ty
with respect the exclusion ion of the interest of the Conn
the Bonds from federal and Sute of Idaho
income taxation..
Section 15; Authorizes the Mayor and
Clerk -Treasurer to execute additional docu-
ments.
Section 161 Provides effective date of the
Ordinance.
The full text of Ordinance No. 641 is avail-
able for inspection at City Hall during normal
office hours.
DATED this 28th day of July, 1993.
CITY OF MCCALL
Valley County, Idaho
By Laurence A. Smith, Jr., Mayor
ATTEST: Arthur J. Schmidt, City. Clerk
Publisher's Affidavit of PublicatioEnCOPY�
STATE OF IDAHO
.SS
County of Valley
I, Ramona A. George, being duly sworn and say, I am the receptionist
of The Central Idaho Star -News, a weekly newspaper published at McCall, in
the County of Valley, State of Idaho; that said newspaper is in general
circulation in the county of aforesaid and is a legal newspaper; that the
NOTICE OF RESOLUTION 12-94, a copy of which is enclosed hereto and is a
part hereof, was published in said newspaper once a week for one consecutive
weeks in the regular and entire issue of every number there of during the
periodlof time of publication, and was published in the newspaper proper and
not in a supplement; and that publication of such notice began May 19, 1994
and finded May 19, 1994.
-Ea Ail At
Subscri I ed and sworn before
STATE OF IDAHO
COUNTY OF VALLEY •
day of May, 1994.
On this 26th day of May, in the year of 1994, before me, a Notary
Public, personally appeared Ramona A. George, known or identified to me to
be the person whose name subscribed to the within instrument, and being by
me first duly sworn, declared that the statements therein are true, and acknowl-
edged to me that she executed the same.
Tom Grote
Notary Public for Idaho
Residing at McCall, Idaho
Commission Expires: 1999