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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 : Page 1 • 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. • 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. Page 2 Mayor means the Mayor of the City. 1 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 Page 3 • 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 Page 4 r . 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. Page 5 r , 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 Page 6 (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 Page 1 - EXHIBIT "A" 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 Page 2 - EXHIBIT "A" 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 �'� Page 3 - EXHIBIT "A"