HomeMy Public PortalAboutResolution 10-96 Authorizing Issuance of Bonds to Finance Water SystemRESOLUTION NO. 10-96
A RESOLUTION OF THE CITY OF MCCALL, OF VALLEY COUNTY, IDAHO,
AUTHORIZING THE ISSUANCE OF BOND ANTICIPATION NOTES PENDING THE
ISSUANCE OF PARITY LIEN WATER REVENUE BONDS; PROVIDING A FORM OF
THE BOND ANTICIPATION NOTES; PROVIDING FOR THE MANNER OF ISSUANCE
OF SUCH NOTES; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL THEREOF
AND THE INTEREST THEREON; PROVIDING TERMS, COVENANTS, AND OTHER
MATTERS RELATING THERETO; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of McCall, Valley County, Idaho (the
"City"), is a municipal corporation organized and existing under
the laws of the State of Idaho; and
WHEREAS, the City is authorized and empowered by Idaho Code
Sections 50-1027 through 50-1042 (the "Revenue Bond Act") to issue
revenue bonds to finance improvements to its domestic water system,
and to issue bond anticipation notes for interim financing of
improvements pending the issuance of revenue bonds; and
WHEREAS, at a special bond election of the City held on August
31, 1993, the qualified electors voting at said election authorized
the issuance of revenue bonds in the principal amount of not to
exceed $9,991,000 for improvements to the City's domestic water
system (the "Project"); and
WHEREAS, by Ordinance No. 669, adopted on August 25, 1994, the
City Council authorized the issuance of its Water Revenue Bonds,
Series 1994, in the principal amount of $5,000,000; and
WHEREAS, the City Council intends to issue additional water
revenue bonds (the "Bonds") in the amount of not to exceed
$4,990,000 to finance the remaining authorized water system
improvements; and
WHEREAS, the City has received an offer from West One Bank,
Idaho, Boise, Idaho, to provide interim financing for the City's
water improvement project, pending the issuance of the Bonds, and
the City Council desires to accept such offer and to authorize the
issuance, sale, and delivery of bond anticipation notes in
accordance with such offer.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF McCALL, IDAHO, as follows:
Section 1: For the purpose of paying any contractor for the
costs of construction and installation of improvements and better-
ments to the domestic water system of the City, or otherwise
defraying any cost of the City's water improvement project ( the
"Project"), as the same become due, the Mayor and City Clerk -
Treasurer are hereby authorized and directed, on behalf of the
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City, to cause to be issued, sold, and delivered bond anticipation
notes in the manner hereinafter provided, all as authorized by
Section 50-1036, Idaho Code.
Section 2: The bond anticipation notes hereby authorized to
be issued, sold, and delivered from time to time, designated "City
of McCall Parity Lien Water Revenue Bond Anticipation Notes" (the
"Notes"), shall be substantially in the form which is annexed
hereto as Exhibit "A," shall be dated as of the date of issuance
thereof, shall be in the total aggregate principal sum of not to
exceed $750,000, shall be issued in such amount or amounts as shall
be authorized from time to time by the City Council, and shall
mature upon issuance and sale of the Parity Lien Water Revenue
Bonds described hereinbelow or September 15, 1996, whichever is
sooner. The Notes shall bear interest at the rate of 4.850;
provided, that in the event the maturity date is extended, the rate
of interest on the Notes from September 15, 1996, shall be 590 of
the then -current West One Bank Reference Rate for a term of not to
exceed ninety (90) days.
Section 3: The Notes, together with any unpaid interest due
thereon, shall be redeemed and paid in full immediately upon the
issuance and sale of the City of McCall Parity Lien Water Revenue
Bonds, Series 1996 (the "Bonds").
Section 4: The Notes shall be sold at private sale for not
less than par value thereof to West One Bank, Idaho. Interest on
each Note shall be payable on the date of redemption of said Note,
the amount of interest due on such date to be payable from the
proceeds of the issuance of the Bond as a cost of the water system
improvement Project.
Section 5: The Notes shall be issued from time to time and in
such amounts as required by the needs of the City, so long as the
aggregate total principal amount of Notes does not exceed $750,000.
Section 6: There has heretofore been created, by Ordinance
No. 669, adopted on August 25, 1994, the City of McCall Water
Project Capital Improvement Fund, into which shall be deposited all
of the proceeds of the sale of the Notes. A separate account shall
be established and maintained in the books of account of the City
for the Notes, and the amount received for each Note shall be
credited into such account. The amount so credited shall be
expended for the purpose of paying the costs of acquisition and
construction of the water system improvement Project and of the
expenses incidental thereto, and for no other purpose. A11 moneys
so expended shall be charged to the moneys credited to said
Project.
Section 7: Each such Note shall be registered with the City
Treasurer in the name of the initial purchaser, both as to
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principal and as to interest, and any transfer thereof must
likewise be registered.
Section 8: All such Notes shall be dated as of the date of
delivery to the purchaser thereof, and such Notes shall be subject
to call and redemption at any time at the option of the City when
the first proceeds of the Bonds become available. In the event of
prior call and redemption, the City Clerk shall give notice thereof
by mailing a copy of the Notice of Call and Redemption by certified
mail at least three (3) days prior to the call and redemption date
to the registered owner of the Notes at the address shown on the
registration books of the City. 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 9: Each Note 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 records of the City.
Section 10: Each Note shall be executed in the name of the
City of McCall, shall be signed by the Mayor, countersigned by the
Treasurer, and attested by the City Clerk, .and shall be authen-
ticated by the seal of the City affixed thereto.
Section 11: The first proceeds of the Bonds are hereby
pledged for the payment and redemption, in numerical order, of the
principal of and any unpaid interest on each Note issued pursuant
hereto.
Section 12: The City covenants with the registered owner of
the Notes as follows:
A. The Notes are hereby designated as "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 1996.
B. None of the proceeds of the Notes will be used directly
or indirectly (i) to make or financeloans 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. No portion of the original proceeds of the Notes will be.
invested in higher -yielding non -purpose obligations beyond a
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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.
D. The City will take no action which would cause the Notes
to become arbitrage bonds within the meaning of Section 148 of the
Code.
E. The City will comply with the information reporting
requirements of Section 149(e) of the Code.
F. 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, not later than 60 days
after the payment of such expenditure, shall have adopted an
official intent resolution as provided by Section 1.150-2 of the
Treasury Regulations.
Section 13: This Resolution shall take effect and be in force
from and after its passage and approval.
DATED this 13th day of June, 1996.
CITY OF McCall
Valley County, Idaho
Mayor
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NO. $
UNITED STATES OF AMERICA
STATE OF IDAHO
County of Valley
CITY OF McCALL PARITY LIEN WATER REVENUE BOND
BOND ANTICIPATION NOTE
On or before , 1996, the City of McCall, Valley
County, Idaho (the "City"), will pay in lawful money of the United
States of America, to
the sum of
WEST ONE BANK, IDAHO
DOLLARS
($ ) together with interest thereon from the date of
issuance at the rate of 4.85% 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. 10-96 of the City, adopted on June 13,
1996 (the "Bond Anticipation Note Resolution"), for the purpose of
paying any contractor for the constructionand installation of
improvements and betterments to the water facilities (the
"Project"), 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 Parity Lien Water Revenue
Bonds, Series 1996, 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 Ordinance No. 669, adopted on August
25, 1994, which special fund is hereby pledged for the payment of
both the principal of and interest on all Bond Anticipation Notes.
Page 1 - EXHIBIT "A"
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 Parity Lien Water Revenue Bonds, Series 1996,
become available. In the 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 Parity
Lien Water Revenue Bonds, Series 1996, 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
and under 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 , 1996.
CITY OF MCCALL
Valley County, Idaho
By
Mayor
COUNTERSIGNED:
By
Treasurer
ATTEST:
City Clerk
( S E A L )
Page 2 - EXHIBIT "A"
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C i t y T r e a s u r e r .
D a t e o f
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N a m e a n d A d d r e s s o f S i g n a t u r e o f
R e g i s t e r e d O w n e r N o t e R e g i s t r a r
W e s t O n e B a n k , I d a h o
P a g e 3 - E X H I B I T "