Loading...
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 Page 1 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. Page 2 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 Page 3 148 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"