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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 Page 1 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 Page 2 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 Page 3 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 Page 4 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" " . 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 Registration Name and Address of Signature of Registered Owner Note Registrar West One Bank, Idaho Page 3 - EXHIBIT "A"