HomeMy Public PortalAboutResolution 38-92 Issuance and sale of interim warrants, in anticipation of the issuance of local improvement district bonds . s
RESOLUTION NO. 38-9.2
A RESOLUTION OF THE CITY OF MCCALL, IDAHO, PROVIDING FOR T
ISSUANCE AND SALE OF INTERIM WARRANTS PURSUANT TO SECTION 50-1722,
IDAHO CODE, IN ANTICIPATION OF THE ISSUANCE OF LOCAL IMPROVEMENT
DISTRICT BONDS AND THE PREPAYMENT OF ASSESSMENTS FOR LOCAL
IMPROVEMENT DISTRICT NO. 1, FOR THE PURPOSE OF PAYING THE COSTS OF
SAID IMPROVEMENT DISTRICT; PROVIDING FOR THE MANNER OF ISSUANCE AND
THE FORM OF SUCH WARRANTS; PROVIDING FOR THE REGISTRATION OF AND
THE PAYMENT OF THE PRINCIPAL OF AND THE INTEREST ON SAID WARRANTS;
PROVIDING FOR THE SALE OF THE WARRANTS TO WEST ONE BANK, IDAHO,
N.A. ; PROVIDING COVENANTS; AND PROVIDING FOR OTHER MATTERS RELATING
THERETO.
WHEREAS, by passage of Ordinance No. 612 on July 9, 1992, the
City Council (the "Council") of the City of McCall, Valley County,
Idaho (the "City") , duly created Local Improvement District No. 1
(L. I.D. No. 1") , ordered the construction of street improvements
pursuant thereto, and authorized the issuance of local improvement
district bonds to finance the costs thereof; and
WHEREAS, the City is authorized and empowered by Idaho Code
section 50-1722 to issue interim warrants for the purpose of
meeting casts and expenses of making local improvement district
improvements prior to the sale of bonds and prepayment of
assessments; and
WHEREAS, the Council has heretofore, by adoption of Ordinance
No. 612, estimated the cost of the local improvement district
project at $80, 000, and authorized the issuance of interim warrants
for L.I.D. No. 1 in an amount not to exceed $80, 000; and
WHEREAS, in order to provide interim financing for the cost
and expense of the improvements to be constructed within L.I.D. No.
1, the Council deems it necessary and desirable to issue, sell, and
deliver interim warrants for L.I.D. No. 1 in an aggregate principal
amount not to exceed $80, 000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MCCALL, of Valley County, Idaho, as follows:
Section !,: For the purpose of reimbursing the City or paying
any contractor for the cost of the improvements within L. I.D. No.
1, or otherwise defraying any costs of the improvements as the same
become due, the Mayor, City Treasurer, and City Clerk are hereby
authorized and directed to cause to be issued, sold, and delivered,
on behalf of the City, interim warrants of L. I.D. No. 1 (the
"Warrants") , from time to time, in the manner hereinafter provided.
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Sectien 2 : Such Warrants may be issued from time to time in
such amounts as may be required, so long as the aggregate principal
amount thereof does not exceed $80, 000; shall be issued to West One
Bank, Idaho, N.A. , McCall, Idaho; shall bear interest at the rate
of five and forty-six hundredths percent (5. 46%) per annum from the
date of issuance to the date of redemption of each such Warrant;
and shall be redeemed and paid in full, together with any accrued
and unpaid interest thereon, from the proceeds of the sale of bonds
for or from prepayment of assessments of L.I.D. No. 1.
Sectio1: Each such Warrant shall be registered in the name
of the initial purchaser both as to principal and interest with the
City Treasurer, and any transfer thereof must likewise be
registered.
Section 4: All such Warrants shall be dated as of the date of
delivery to the purchaser thereof, shall mature on February 1,
1993, and shall be subject to call and redemption at any time at
the option of the City when the proceeds of local improvement
district bonds for L.I.D. No. 1, or prepayment of assessments of
said local improvement district, become available. In the event of
prior call and redemption, the City Treasurer shall give notice
thereof by mailing a copy of a Notice of Call and Redemption by
certified mail at least ten (10) days prior to the call and
redemption date to the registered owner of said Warrants at the
address shown on the registration books of the City. Interest on
each Warrant shall cease to accrue after the date fixed for call
`'- and redemption, provided that
thereof ae avilable at the timendsand placeespecified in thenoticend redemption
of call and redemption.
Section 5: Each Warrant and the interest thereon shall be
payable in lawful money of the United States of America to the
registered owner thereof at the address of such registered owner as
shown on the registration books of the City.
Section 6: Each Warrant shall be executed in the name of the
City of McCall, shall be signed by the Mayor, countersigned by the
City Treasurer, and attested by the City Clerk, and shall be
authenticated by the Seal of the City affixed thereto. Each
Warrant shall be substantially in the form as set forth in Exhibit
"A" attached hereto and by reference made a part hereof.
Section 7 : The City hereby covenants with the registered
owner of the Warrants that it will issue bonds in the amount of the
confirmed assessment roll for L.I.D. No. 1, less the prepayment of
assessments as authorized by law, and further pledges the first
proceeds of said prepayments of assessments and of the proceeds of
the Bonds to payment of the Warrants.
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The Warrants shall, not constitute an indebtedness of the City
within the meaning of any state constitutional provision or
statutory limitation, or a charge against the general credit or
taxing power of the City, and except as otherwise permitted in this
Resolution, the registered owner of the Warrants shall have no
claim against the City, its funds or property.
,Section 8: The City covenants with the registered owner of
the Warrants as follows:
A. The Warrants are qualified tax-exempt obligations within
the meaning and for the purpose of Section 265(b) (3) of the
Internal Revenue Code of 1986 (the "Code") and the City will not
designate more than $10, 000,000, including the Warrants, as
qualified tax-exempt obligations during the calendar year 1992.
B. None of . the proceeds of the Warrants will be used
directly or indirectly (i) to make or finance loans to persons or
(ii) in any trade or business carried on by any person (other than
use as a member of the general public) . For purposes of the
preceding sentence, the term "person" does not include a government
unit other than the United States or any agency or instrumentality
thereof, and the term "trade or business" means any activity
carried on by a person other than a natural person.
C. The City has general taxing powers. The Warrants are not
"private activity bonds" within the meaning of Section 141 of the
Code. 95% or more of the net proceeds of the Warrants are to be
used for the local governmental activities of the city. The Cit
has no subordinate bond-issuing entities. The City has not issued,
and will not issue, tax-exempt obligations in calendar year 1992 in
a face amount which exceeds $5, 000, 000. Accordingly, under Section
148(f) (4) (C) of the Code, the City is not required to pay rebates
to the United States under Section 148 (f) of the Code.
D. No portion of the original proceeds of the Warrants will
be invested in higher-yielding non-purpose obligations beyond a
temporary period determined as the earlier of three (3) years after
the date the Warrants are issued or the date the project is
substantially completed.
E. The City will take no action which would cause the
Warrants to become arbitrage bonds within the meaning of Section
148 of the code.
F. The City will comply with the information reporting
requirements of Section 149 (e) of the code.
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G. The City will not permit the Warrants to be or become
"federally guaranteed" within the meaning of Section 149 (b) of the
Code.
£ation 9: This Resolution shall take effect and be in force
from and after its passage and approval.
DATED this 10th day of September, 1992.
CITY OF MCCALL
Valley County, Idaho
By 4111
0 ►-��
ATT T: Mayor
YA0/
Cl y Clerk
( SEAL )
l _
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•
UNITED STATES OF AMERICA
NO. 92-2 $46, 150 . 00
STATE OF IDAHO
COUNTY OF VALLEY
CITY OF MCCALL
LOCAL IMPROVEMENT DISTRICT NO. 1 INTERIM WARRANT, SERIES 1992
FOR VALUE RECEIVED, the City of McCall, Valley County, Idaho
(the "City" ) , acknowledges itself to owe, and promises to pay to
WEST ONE BANK, IDAHO, N.A. , MCCALL, IDAHO
the original Registered Owner hereof or its assignee, at the office
of the City Treasurer, on or before the first day of February, 1993,
the sum of
FORTY SIX THOUSAND, ONE HUNDRED FIFTY AND NO/100 DOLLARS
( $46 , 150 . 00) in lawful money of the United States of America,
together with interest thereon in like money at the rate of five and
forty-six hundredths percent (5 .46%) per annum from the date hereof,
interest payable on redemption.
This Warrant is registered, both as to principal and interest,
with the City Treasurer, and any transfer hereof must likewise be
registered. This Warrant is a negotiable instrument, payable solely
from the prepayment of assessments or the issuance of local
improvement district bonds for Local Improvement District No. 1 of
the City, all as authorized by Ordinance No. 612, adopted on July 9,
1992 . The owner of this Warrant shall have not claim against the
City, its funds or property, except as set forth above.
This Warrant is issued for the purpose of providing part of the
interim funds necessary to construct the improvements authorized for
local improvement District No. 1, under and by virtue of and in full
conformity with the Constitution and laws of the State of Idaho and
Ordinance No. 612 of the City.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all matters,
acts, conditions and things required by law to make this Interim
Warrant a valid and enforceable limited obligation of Local
Improvement District No. 1 of the City, have happened, have been
done and have been performed, and the first proceeds of the
prepayment of local improvement district assessments and of the
Registered Warrant No. 92-2, Sep 22, 1992 Page 1
* * F * * * A
This Interim Warrant is registered in the name of the
registered owner whose name and address appear last below, and both
principal and interest are payable only to said owner.
NOTE: There must be no writing in the space below except by the
City Treasurer.
Name of Address of
Date of Registered Registered Signature of
Registry Owner Owner easurer
/1/ 5/6G irveyDA/JtJ N.
TREASURER' S CERTIFICATE
I, the undersigned, the Treasurer of the City of McCall, of
Valley County, Idaho, hereby certify that the within Interim Warrant
has been duly registered in my office in the Registration Book kept
for that purpose.
Treasurer
City of McCall
Registered Warrant No. 92-2, Sep 22, 1992 Page 3