HomeMy Public PortalAboutResolution 08-94 Authorizing Water Bond Sales RESOLUTION NO. 8-94
A RESOLUTION OF THE CITY OF MCCALL, IDAHO, AUTHORIZING THE ISSUANCE
AND SALE OF BOND ANTICIPATION NOTES PENDING THE ISSUANCE OF WATER
REVENUE BONDS; PROVIDING A FORM OF BOND ANTICIPATION NOTE;
PROVIDING FOR THE MANNER OF ISSUANCE OF SUCH NOTES; CREATING A
CAPITAL IMPROVEMENT FUND; PROVIDING FOR THE PAYMENT OF THE
PRINCIPAL OF AND INTEREST ON SAID BOND ANTICIPATION NOTES; AND
PROVIDING OTHER TERMS AND COVENANTS RELATING THERETO
WHEREAS, the City of McCall, Valley County, Idaho (the "City)
is a municipal corporation duly organized and existing under the
laws of the State of Idaho; and
WHEREAS, at a special bond election held and conducted on
August 31, 1993, pursuant to Ordinance No. 635, adopted on June 24,
1993, the requisite majority of the qualified electors of the City
authorized the incurring of an indebtedness and the issuance of
revenue bonds in the principal amount of $9, 991, 000 for the purpose
of providing funds for certain capital improvements to the City' s
water system, and;
WHEREAS, the City Council (the "Council") of the City is
authorized and empowered by the Revenue Bond Act, Sections 50-1027
through 50-1042, inclusive, Idaho Code, and in particular by
Section 50-1036 (b) , Idaho Code to issue bond anticipation notes for
temporary financing of the construction of authorized improvements,
such bond anticipation notes and the interest thereon to be secured
by a pledge of the funds derived from the sale of the revenue bonds
in anticipation of which the notes are issued; and
WHEREAS, it is the intent of the Council to issue and sell the
revenue bonds of the City in the aggregate principal amount of
$9, 991, 000 for the purposes set forth in Ordinance No. 635. E "and
approved by the electors of the City at the special bond election
held on August 31, 1993; and
WHEREAS, the Council has determined that it is in the best
interests of the City to issue and sell bond anticipation notes in
order to pay certain preliminary costs and expenses of the water
improvement project pending the issuance and sale of revenue bonds .
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MCCALL, IDAHO, as follows :
Section 1 : DEFINITIONS
As used in this Resolution, the following words shall have the
following meanings :
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Bonds means the City of McCall water revenue bonds authorized
at a special election held and conducted on August 31, 1993,
pursuant to Ordinance No. 635, adopted on June 24, 1993 .
Capital Improvement Fund means the "City of McCall Water
Project Capital Improvement Fund" created by Section 6 of this
Resolution.
City means the City of McCall, Valley County, Idaho.
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City Clerk means the duly appointed and acting clerk of the
City.
Cost of Project or any phrase of similar import, means all or
any part designated by the Council of the costs of the Project, or
interest therein, which costs, at the option of the Council, may
include all or any part of the incidental costs pertaining to the
Project, including, without limitation:
(1) Preliminary expenses advanced by the City from funds
available for the use therefor, or advanced by the Federal
Government, or from any other source, with approval of the
Council, or any combination thereof;
(2) The costs of making surveys, audits, preliminary
plans, other plans, specifications, estimates of costs and
other preliminaries .
(3) The costs of appraising, printing, estimates,
advice, services of engineers, architects, financial consul-
tants, attorneys at law, clerical help, or other agents or
employees;
(4) The costs of contingencies; •
(5) The costs of the issuance of the Bonds;
(6) The costs of funding the Notes and other temporary
loans pertaining to the Project, including interest thereon,
and of the incidental expenses incurred in connection with
such loans;
(7) The costs of any properties, rights, easements, or
other interest in properties, or any licenses, privileges,
agreements and franchises; and
(8) All other expenses necessary or desirable and
appertaining to the Project, as estimated or otherwise ascer-
tained by the Council .
Council means the City Council of the City.
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Mayor means the Mayor of the City.
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Net Revenues means the revenues of the City' s domestic water
system after the deduction of normal expenses of operation and
maintenance.
Notes means the "City of McCall Water Revenue Bond Anticipa-
tion Notes" herein authorized to be issued, sold, and delivered.
Project means the domestic water improvement project of the
City, as described in Ordinance No. 635 of the City, adopted on
June 24, 1993 , and authorized by the electors of the City at a
special bond election held on August 31, 1993 .
Registered Owner (s) means the purchaser(s) of the Notes and
any subsequent transferee (s) or purchaser(s) .
Treasurer means the Treasurer of the City.
Section 2 : THE NOTES
For the purpose of paying any costs of engineering, construc-
tion, installation, or any other cost of the Project as the same
becomes due prior to the issuance and sale of the Bonds, the Mayor,
City Clerk, and Treasurer are hereby authorized and directed, on
behalf of the City, to cause to be issued, sold, and delivered
fully registered bond anticipation notes of the City, designated
"City of McCall Water Revenue Bond Anticipation Notes" (the
"Notes") in the manner hereinafter provided, all as authorized by
Section 50-1036, Idaho Code.
The Notes shall be dated as of the date of delivery thereof,
shall be issued in such amount or amounts as shall from time to
time be authorized by the City Council, shall be in a total
aggregate principal amount which shall not exceed $600, 000, and
shall mature upon issuance, sale, and delivery of the Bonds, or on
August 1, 1994, whichever is sooner.
The Notes shall bear interest at the rate of four and forty-
five hundredths percent (4 .450) per annum on the unpaid principal
balance thereof from their respective dates of issuance until paid
in full . Interest on each Note shall be payable on the date of
redemption of said Note. The Notes shall be substantially in the
form set forth in Exhibit "A" which is annexed hereto and by
reference made a part of this Resolution.
Section 3 : EXECUTION OF NOTES
Each Note shall be executed in the name of the City, shall be
signed by the Mayor, countersigned by the Treasurer, and attested
by the City Clerk, and shall be authenticated by the seal of the
City affixed thereto. Each Note shall be registered with the
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Treasurer in the name of the Registered Owner both as to principal
and as to interest . Any Note may be transferred only upon the
books for the registration and transfer of the Notes (the "Note
Register") , upon the surrender thereof at the office of the
Treasurer. Upon the transfer of any Note, there shall be issued in
the name of the transferee a new fully registered Note of the same
denomination, maturity, and interest rate as the surrendered Note.
Section 4 : PAYMENT AND REDEMPTION OF THE NOTES
Both principal of and interest on the Notes shall be payable
in lawful money of the United States of America to the Registered
Owner thereof whose name and address shall appear on the Note
Register maintained by the Treasurer. Principal of and accrued
interest on each Note shall be payable at maturity, upon presenta-
tion of each Note at the office of the Treasurer for payment.
The Notes, together with any unpaid interest accrued thereon,
shall be redeemed and paid in full immediately upon the issuance,
sale, and delivery of the Bonds . The Notes shall be subject to
call and redemption without penalty or premium at any time prior to
their maturity at the option of the City. In the event of call and
redemption prior to August 1, 1994, the City Treasurer shall give
notice thereof by mailing a copy of the notice of call and
redemption by mail at least three (3) days prior to the call and
redemption date to the Registered Owners of the Notes at the
address shown on the Note Register. Interest on each Note shall
cease to accrue after the date fixed for call and redemption,
provided that funds equal to the amount of call and redemption have
been deposited at the place of payment at that time.
Section 5 : PLEDGE OF BOND PROCEEDS
The first proceeds of the sale and delivery of the Bonds are
hereby pledged for the payment and redemption, in numerical order,
ofthe principal of and any unpaid interest on each Note issued
pursuant hereto.
Section 6 : THE CAPITAL IMPROVEMENT FUND
There is hereby created a special fund and account to be known
and designated as the "City of McCall Water Project Capital
Improvement Fund" (the "Capital Improvement Fund") , into which
shall be deposited all of the proceeds of the sale of the Notes, to
be used and applied for the payment of all or any portion of the
Cost of the Project. Any interest earnings on moneys invested from
the Capital Improvement Fund shall remain in and be used for the
purposes of the Capital Improvement Fund.
The proceeds of the Bonds, when issued, sold, and delivered,
shall be deposited into the Capital Improvement Fund and shall be
used and applied for the payment of the Cost of the Project, the
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first such payment being for the redemption of the Notes as
provided in Section 4 above.
When the Project has been completed and all costs related
thereto, including redemption of the Notes or any refunding obliga-
tions issued to pay the Notes, have been paid in full, any balance
remains in the Capital Improvement Fund shall be transferred to the
bond fund or other debt service fund established for the Bonds.
Section 7 : COVENANTS
The City further covenants and agrees with the Registered
Owners of the Notes as follows :
A. It will complete the construction of the Project with all
practical dispatch and in a sound and economical manner.
B. It will cause the Bonds to be issued without undue delay,
consistent with market conditions and thebest economic interests
of the City, and will apply the first proceeds thereof to the
payment of the Notes.
C. The Notes are hereby designated "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 does not reasonably anticipate that it will designate more
than $10, 000, 000, including the Notes, as qualified tax-exempt
obligations during the calendar year 1994 .
D. None of the proceeds of the Notes 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.
E. No portion of the original proceeds of the Notes 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 Notes are issued or the date the project is
substantially completed.
F. The City will take no action which would cause the Notes
to become arbitrage bonds within the meaning of Section 148 of the
Code.
G. The City will comply with the information reporting
requirements of Section 149 (e) of the Code.
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H. None of the proceeds of the Notes will be used to
reimburse the City for capital expenditures made prior to the date
of delivery of the Notes, unless the City shall, not later than 60
days after the payment of such expenditures, adopt an official
intent resolution in the manner provided in Section 1.150-2 of the
Treasury Regulations.
Section 8 : SALE OF NOTES
The Notes shall be sold at private sale for not less than the
par value thereof to West One Bank, Idaho. The Mayor and City
Clerk are hereby authorized and directed to execute, on behalf of
the City, such instruments as may be required to carry out the
intent of this Resolution.
Section 9 : RESOLUTION A CONTRACT
The provisions of the Resolution shall constitute a contract
between the City and the Registered Owners so long as the Notes
remain unpaid.
Section 10 : This Resolution shall take effect and be in force
from and after its passage and approval .
DATED this 12th day of May, 1994 .
CITY OF MCCALL
Valley County, Idaho
B A- t�tg1a
Y
Mayor
ATTE
City Clerk
r
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(Form of Bond Anticipation Note)
NO. $
UNITED STATES OF AMERICA
STATE OF IDAHO
County of Valley
CITY OF McCall WATER REVENUE BOND
BOND ANTICIPATION NOTE
On or before August 1, 1994, the undersigned will pay in
lawful money of the United States of America, to
WEST ONE BANK, IDAHO
the sum of
($ ) together with interest thereon from the date of issuance
at the rate of four and forty-five hundredths percent (4 .450) per
annum.
This Bond Anticipation Note is one of a series which may be
issued, sold, and delivered, from time to time in numerical order,
pursuant to Idaho Code Section 50-1036, and under and by virtue of
and in full conformity with the Constitution and laws of the State
of Idaho, and Resolution No. 8-94, adopted ,by the City on May 12,
1994, (the "Bond Anticipation Note Resolution") , for the purpose of
paying any contractor for the construction and installation of
improvements and betterments to the water facilities as described
in the Bond Anticipation Note Resolution, or otherwise defraying
any costs of the Project as the same become due.
This Bond Anticipation Note is registered, both as to
principal and interest, with the City Treasurer, and any transfer
hereof must likewise be registered. This Bond Anticipation Note is
a negotiable instrument, payable solely from the proceeds of the
issuance and sale of the City of McCall Water Revenue Bonds,
approved by the electorate of the City at a special election held
within said City on August 31, 1993 . Said proceeds will be placed
in the City of McCall Water Project Capital Improvement Fund,
created by the Bond Anticipation Note Resolution, which special
fund is hereby pledged for the payment of both the principal of and
interest on all Bond Anticipation Notes .
This Bond Anticipation Note is subject to prior call and
redemption at any time at the option of the City Council when
proceeds of said water revenue bonds become available. In the
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event of such call and redemption, interest on the principal amount
of the bond Anticipation Notes shall cease to accrue after the date
fixed for call and redemption in the Notice thereof and funds equal
to the amount of call and redemption have been deposited at the
place of payment at that time .
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all
matters, acts, conditions, and things required by law to make this
Bond Anticipation Note a valid limited obligation of the City of
McCall have happened, have been done, and have been performed, and
the first proceeds of the issuance and sale of the City' s water
revenue bonds are pledged for the payment of the same.
IN WITNESS WHEREOF, the City of McCall, by its City Council,
has caused this Bond Anticipation Note to be executed in its behalf
andunder its official seal by the manual signature of its Mayor,
countersigned by the manual signature of its Treasurer, and
attested by the manual signature of its City Clerk, all as of the
day of , 1994 .
CITY OF MCCALL
( S E A L) Valley County, Idaho
By
Mayor
ATTEST: COUNTERSIGNED:
City Clerk Treasurer
(- 1
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This Bond Anticipation Note 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.
Date of Name and Address of Signature of
Registration Registered Owner Bond Registrar
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