HomeMy Public PortalAboutResolution 03-96 Issuance and Sale of Interim Warrants-LID No. 4RESOLUTION NO. 3-96
A RESOLUTION OF THE CITY OF MCCALL, IDAHO, PROVIDING FOR THE
ISSUANCE AND SALE OF INTERIM WARRANTS PURSUANT TO SECTION 50-1722,
IDAHO CODE, IN ANTICIPATION OF THE ISSUANCE OF ITS LOCAL
IMPROVEMENT DISTRICT BONDS AND PREPAYMENT OF ASSESSMENTS FOR LOCAL
IMPROVEMENT DISTRICT NO. 4, 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 AND
PAYMENT OF THE PRINCIPAL THEREOF AND THE INTEREST ON SAID WARRANTS;
PROVIDING FOR THE SALE OF THE WARRANTS TO WEST ONE BANK, IDAHO;
PROVIDING COVENANTS; AND PROVIDING FOR OTHER MATTERS RELATING
THERETO
WHEREAS, by passage of Ordinance No. 668 on July 28, 1994, the
City Council (the "Council") of the City of McCall, Valley County,
Idaho (the "City"), duly created Local Improvement District No. 4
("L.I.D. No. 4"), ordered the construction of certain water and
street public improvements pursuant thereto, and authorized the
issuance of local improvement district bonds to finance the cost
thereof; and
WHEREAS, the City is authorized and empowered by Idaho Code
Section 50-1722 to issue interim warrants for the purpose of
meeting costs 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. 668, estimated the cost of the local improvement district
project at $527,100, and authorized the issuance of interim
warrants for L.I.D. No. 4 in an amount not to exceed $527,100; and
WHEREAS, in order to provide interim financing for the cost
and expense of the improvements to be constructed within L.I.D.
No. 4, the Council deems it necessary and desirable to issue, sell,
and deliver interim warrants for L.I.D. No. 4 in an aggregate
principal amount not to.exceed $527,100.
NOW, THEREFORE, BE IT RESOLVED. BY THE CITY COUNCIL OF THE CITY
OF McCALL, Valley County, Idaho, as follows:
Section 1: For the purpose of paying any contractor for the
cost of the improvements within L.I.D. No. 4, or otherwise
defraying any costs of the improvements as the same become due, the
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Mayor and City Clerk -Treasurer 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. 4 (the "Warrants") in the manner
hereinafter provided.
Section 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 $527,100; shall be issued to West
One Bank, Idaho; shall bear interest at the rate of four and
ninety-five hundredths percent (4.950) per annum from the date of
issuance to the date of maturity or prior 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. 4.
Section 3: 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 December 31,
1996, and shall be subject to call and redemption without penalty
at any time at the option of the City when the proceeds of local
improvement district bonds for L.I.D. No. 4, 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 bycertified mail at least three (3) 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 funds for the payment and
redemption thereof are available at the time and place specified in
the notice 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.
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4. Source and Disbursement of Funds
4.1 The Warrants will be issued on the dateof this
Certificate; hence there will be no accrued interest on
the Warrants. The Warrants willbe sold at par.
Accordingly, the maximum net amount received from the
sale of the Warrants will not exceed $527,100.
4.2 The approximately $527,100 received by the Issuer from
the sale of the Warrants will be fully expended to pay
the costs of acquiring the Project immediately upon
receipt thereof. . Therefore, the Issuer does not
anticipate that it will realize any arbitrage earnings;
if, however, the Issuer does realize arbitrage earnings
on the proceeds of the Warrants, it will comply with the
applicable arbitrage rebate requirements if the proceeds
are not expended within the spending periods provided in
the Code.
5. Temporary Period
5.1 It is expected that all of the proceeds of the Warrants
will be fully expended for the. governmental purposes of
the Issuer within six (6) months of the date of this
Certificate, and in no event later than the earlier of
three (3) years after the date the Warrants are issued or
the date the Project is substantially completed.
6. Yield Limitation; Temporary Period
6.1 Except as provided below in this Section 6, none of the
gross proceeds of the Warrants' will be invested in any
security, any obligation, any annuity contract or any
investment -type property that has a yield that exceeds
the yield on the Warrants by more than one -eighth of one
percentage point.
6.2 The exception is for proceeds of the Warrants that are
invested for the temporary period described in Section
5.1 of this Certificate.
7. Debt Service Fund
7.1 The Issuer will provide for the establishment of a debt
service fund -for payment of the principal of and interest
on the Warrants as the same fall due. The debt service
fund so established will be a "bona fide debt service
fund" within the meaning of Treasury Regulations' Section
1.148-1(b).. Any money deposited in the debt service fund
will be spent within a twelve-month period beginning on
the date of deposit, and any amount received from
investment of money held in this account will be spent
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148 of the Code. In particular, the City will comply with any
applicable arbitrage rebate requirements pursuant to Section 148(f)
of the Code.
F. The City will comply with the information reporting
requirements of Section 149(e) of the Code.
G. The City will not permit the Warrants to be or become
"federally guaranteed" within the meaning of Section 149(b) of the
Code.
H. None of the proceeds •of the Warrants will be used to
reimburse the City for capital expenditures made prior to the date
of delivery of the Warrants 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 9: This Resolution shall take effect and be in force
immediately upon its passage and approval.
DATED this 28th day of March, 1996.
CITY OF MCCALL
Valley Countx,,-Idaho
By
Mayor
ATTES :
Page • 4
UNITED STATES OF AMERICA
NO. $
STATE OF IDAHO
COUNTY OF VALLEY
CITY OF MCCALL
LOCAL IMPROVEMENT DISTRICT NO. 4 INTERIM WARRANT
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
the original Registered Owner hereof or its assignee, at the office
of the City Treasurer, on or before the 31st day of December, 1996,
the sum of
DOLLARS
($ ) in lawful money of the United States of America,
together with interest thereon in like money at the rate of four
and ninety-five hundredths percent (4.950) 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. 4 of
the City, all as authorized by Ordinance No. 668, adopted on
July 28, 1994, and Resolution No. 3-96, adopted on March 28, 1996.
The owner of this Warrant shall have no 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. 4, under and by
virtue of and in full conformity with the Constitution and laws of
the State of Idaho and Ordinance No. 668 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
PAGE 1 - EXHIBIT "A"
Improvement District No. 4 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
issuance and sale of local improvement district bonds for Local
Improvement District No. 4 of the City, are pledged for the payment
of the same.
IN WITNESS WHEREOF, the City of McCall, Valley County, Idaho,
has caused this Warrant to.be executed on its behalf and under its
official seal by its Mayor, countersigned by its Treasurer, and
attested by its City Clerk, all as of the day of
, 1996.
CITY OF MCCALL
Valley County, Idaho
By
Mayor
Treasurer
ATTEST:
City Clerk
( S E A L )
PAGE 2 - EXHIBIT "A"
* * * * * * * * * *
This 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
Registry Owner Owner
TREASURER'S CERTIFICATE
I, the undersigned, the Treasurer of the City of McCall,
Valley County, Idaho, hereby certify that the within Warrant has
been duly registered in my office in the Registration Book kept for
that purpose.
Treasurer
City of McCall
PAGE 3 - EXHIBIT "A"