HomeMy WebLinkAboutResolution No. R19-45CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Laurel, Montana (the "City"), hereby certify that the attached resolution is a true copy of a
Resolution No. R19-45 entitled: "RESOLUTION RELATING TO $41,000 SPECIAL
IMPROVEMENT DISTRICT NO. 119 BOND, SERIES 2019; FIXING THE FORM AND
DETAILS AND PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND
SECURITY THEREFOR" (the "Resolution"), on file in the original records of the City in my
legal custody; that the Resolution was duly adopted by the City Council of the City at a regular
meeting on August 20, 2019, and that the meeting was duly held by the City Council and was
attended throughout by a quorum, pursuant to call and notice of such meeting given as required
by law; and that the Resolution has not as of the date hereof been amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the
following Council Members voted in favor thereof: Council Member Eaton, Council Member
McGee, Council Member Stokes, Council Member Mountsier, Council Member Wilke, Council
Member Herr, and Council Member Sparks; voted against the same: ; abstained from
voting thereon: ; or were absent: Council Member Klose.
WITNESS my hand and seal officially this 20th day of August, 2019.
(SEAL)
4f LA11,gf City k- asurer
`,``4���'��aaaaaa�aaaaaa ,�S
gr! SEA
16
o^ iib aai�
a �a
y� as �• ��
��r�t!(I�Ilil/iit111\\\
RESOLUTION NO. R19-45
RESOLUTION RELATING TO $41,000 SPECIAL
IMPROVEMENT DISTRICT NO. 119 BOND, SERIES 2019;
FIXING THE FORM AND DETAILS AND PROVIDING FOR
THE EXECUTION AND DELIVERY THEREOF AND
SECURITY THEREFOR
BE IT RESOLVED by the City Council (the "Council") of the City of Laurel, Montana
(the "City"), as follows:
Section 1. Recitals. It is hereby found, determined and declared as follows:
1.01. Resolution of Intention. By Resolution No. R19-14, duly adopted by the Council
on May 7, 2019 (the "Resolution of Intention"), this Council declared its intention to create
Special Improvement District No. 119 (the "District"), for the purpose of financing a portion of
the costs of certain local sidewalk improvements, including construction and installation of
sidewalks, ADA -compliant ramps, drive and alley approaches and related improvements
(collectively, the "Improvements") to benefit certain property located on East 6 t Street in the
City and included within the District and paying costs incidental thereto, including costs
associated with the sale and the security of special improvement district bonds drawn on the
District (the "Bond"), the creation and administration of the District, and the funding of a deposit
to the City's Special Improvement District Revolving Fund (the "Revolving Fund"). The
Resolution of Intention designated the number of the District, described the boundaries thereof
and stated the general character of the Improvements and an approximate estimate of the costs
thereof, in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 12, Parts
41 and 42, as amended (the "Act"). By the Resolution of Intention, this Council also declared its
intention to cause the cost and expense of making the Improvements specially benefiting the
District to be assessed against the properties included within the boundaries thereof in
accordance with one or more methods of assessment authorized in Sections 7-12-4161 to 7-12-
4165 of the Act and as set forth in the Resolution of Intention.
In the Resolution of Intention, this Council stated its intention to issue the Bond drawn
against the District to pay a portion of the costs of the Improvements. This Council further found
that it is in the public interest, and in the best interest of the City and the District, to secure
payment of principal of and interest on the Bond by the Revolving Fund, on the basis of factors
required to be considered under Section 7-12-4225 of the Act. Those findings are hereby ratified
and confirmed.
1.02. Notice. Notice of the passage of the Resolution of Intention was given by two
publications, with at least six days between publications, in the Laurel Outlook, a weekly
newspaper of general circulation published within the City. Notice of the passage of the
Resolution of Intention was also mailed the same day the notice was first published to all
persons, firms or corporations or the agents thereof having real property within the District, listed
in their names upon the last completed assessment roll for State, county and school district taxes,
at their last known addresses. The notice described the general character of the Improvements,
stated the estimated cost of the Improvements and the method or methods of assessment of such
costs against properties in the District, specified the time when and the place where the Council
would hear and pass upon all protests made against the making of the Improvements or the
creation or extension of the District, and referred to the Resolution of Intention as being on file in
the office of the City Clerk -Treasurer for a description of the boundaries of the District, all in
accordance with the provisions of the Resolution of Intention, and included a statement that,
subject to the limitations of Section 7-12-4222 of the Act, the general fund of the City may be
used to provide loans to the Revolving Fund or a general tax levy may be imposed on all taxable
property in the City to meet the financial requirements of the Revolving Fund.
1.03. Creation of District. At the time and place specified in the notice hereinabove
described, this Council met to hear, consider and pass upon all protests made against the making
of the Improvements and the creation of the District, and, after consideration thereof, it was
determined and declared that insufficient protests against the creation or extension of the District
or the proposed work had been filed in the time and manner provided by law by the owners of
the property to be assessed for the Improvements in the District, and this Council did therefore
by Resolution No. R19-21, adopted on June 4, 2019, create Special Improvement District No.
119, order the proposed Improvements in accordance with the Resolution of Intention, and
confirm the findings it made with respect to the pledge of the Revolving Fund in the Resolution
of Intention.
1.04. Construction Contracts. In conjunction with a larger project including water
improvements and street improvements within the District (the "Project"), the City will cause to
be constructed the Improvements, as described in the Resolution of Intention. Plans,
specifications, maps, profiles and surveys for construction of the Project and the Improvements
to be constructed to benefit the District were prepared by the engineers acting for the City or by
City engineers, and were thereupon examined and approved by this Council. Advertisements for
bids for construction of the Project and the Improvements were published in the official
newspaper of the City in accordance with the provisions of Montana Code Annotated, Section 7-
12-4141, after which the bids theretofore received were opened and examined. After referring
the bids to the engineers for the City it was determined that the lowest regular proposal for the
furnishing of all work and materials required for constructing the Project and the Improvements
in accordance with the approved plans and specifications was the following:
SID No. 119:
Work
Bidder
Water improvements and street improvements, FirstMark Construction
together with construction and installation of
sidewalks, ADA -compliant ramps, drive and
alley approaches and related improvements
Contract Price
$1,218,900
Contracts for the construction of the Project and the Improvements were therefore
awarded to said bidder, subject to the right of owners of property liable to be assessed for the
costs thereof to elect to take the work and enter into written contracts therefor in the manner
provided by Montana Code Annotated, Section 7-12-4147, whereupon the City and the
successful bidder entered into written contracts for construction of the Project and the
Improvements upon the bidder having executed and filed bonds satisfactory to this Council and
K
in the form and manner provided by Montana Code Annotated, Title 18, Chapter 2, Part 2, as
amended.
Costs of the Improvements in excess of the proceeds of the Bond and costs of issuance of
the Bond have been or will be paid from amounts contributed by the City and the prepayment of
special assessments by some property owners in the District.
1.05. Costs. Following prepayments by property owners in the District, it is currently
estimated that the costs and expenses connected with and incidental to the formation of the
District to be paid from the proceeds of the Bond, including costs of preparation of plans,
specifications, maps, profiles, engineering superintendence and inspection, preparation of
assessment rolls, expenses of making the assessments, the cost of work and materials under the
construction contracts and all other costs and expenses, including the deposit of proceeds in the
Revolving Fund, are $41,000, as shown in the table below:
Construction Costs
$64,652.10
Less Prepaid Assessments
(26,006.43)
Project Costs to be Assessed
$38,645.67
Revolving Fund
2,050.00
Rounding Amount
304.33
Total
$41,000.00
The amount of $41,000 will be levied and assessed upon the assessable real property
within the District on the bases described in the Resolution of Intention. This Council has
jurisdiction and is required by law to levy and assess such amounts, to collect such special
assessments and credit the same to the special improvement district funds created for the District,
which funds are to be maintained on the official books and records of the City separate from all
other City funds, within the 2019 Special Improvement District No. 119 Fund (the "District
Fund") for the payment of principal and interest when due on the Bond herein authorized.
1.06. Sale and Issuance of Bond. The City has received a proposal from Yellowstone
Bank, a Montana corporation, for the purchase of the Bond. For the purpose of financing a
portion of the costs and expenses of making the Improvements and funding a deposit to the
Revolving Fund (as hereinafter defined), which are to be assessed against the property within the
District as provided in the Resolution of Intention, this Council hereby determines that it is in the
best interests of the City to sell the Bond in a private negotiated sale to Yellowstone Bank (the
"Purchaser"), at a purchase price of $41,000 (representing the stated principal amount of the
Bond), at the rate of interest set forth in Section 2.01 hereof, and upon the further terms set forth
in this Resolution, in accordance with the provisions of Section 7-12-4204(b) of the Act.
1.07. Recitals. All acts, conditions and things required by the Constitution and laws of
the State of Montana, including the Act, and the home rule charter of the City, in order to make
the Bond a valid and binding special obligation in accordance with its terms and in accordance
with the terms of this Resolution have been done, do exist, have happened and have been
performed in regular and due form, time and manner as so required.
Section 2. The Bond.
2.01. Title, Principal Amount, Interest Rate and Stated Maturity. For the purpose of
paying a portion of the costs and expenses of making the Improvements, funding a deposit to the
Revolving Fund, and in anticipation of the collection of special assessments to be levied therefor,
and in accordance with the proposal described in Section 1.06, the City shall forthwith issue and
deliver to the Purchaser the Bond, denominated "Special Improvement District No. 119 Bond,
Series 2019," payable solely from the District Fund. The Bond shall be issued in the principal
amount of $41,000, and shall mature, subject to redemption as hereinafter provided, on July 1,
2039. The Bond shall bear interest on the outstanding principal amount from the date of original
issue, or from such later date to which interest has been paid or duly provided for, until paid or
discharged at the rate of 3.95% per annum. The principal of and interest on the Bond shall be
payable in the amounts and on the respective dates reflected in the Debt Service Schedule
attached as Schedule 1 to the Bond. Interest is calculated on the basis of a 365 -day year.
2.02. Interest Payment Dates. Interest on the Bond shall be payable on each January 1
and July 1, commencing January 1, 2020, to the owners of record thereof as such appear on the
bond register at the close of business on the twentieth day of the immediately preceding month,
whether or not such day is a business day.
2.03. Method of Pam. The Bond shall be issued only in fully registered form. The
interest on and principal installments of the Bond shall be payable by check or draft drawn on the
Registrar; provided that the final installment of principal (whether at maturity or earlier
redemption) shall be paid by the Registrar only upon presentation and surrender of the Bond to
the Registrar.
2.04. Registration. The City hereby appoints the City Clerk -Treasurer to act as bond
registrar, transfer agent and paying agent (the "Registrar"). The City reserves the right to
appoint a bank, trust company or fiscal company as successor bond registrar, transfer agent or
paying agent, as authorized by the Model Public Obligations Registration Act of Montana (the
"Registration Act"), but the City agrees to pay the reasonable and customary charges of the
Registrar for the services performed. This Section 2.04 shall establish a system of registration
for the Bond as defined by the Registration Act. The effect of registration and the rights and
duties of the City and the Registrar with respect thereto shall be as follows:
(a) Bond Register. The Registrar shall keep at its principal office a bond register
in which the Registrar shall provide for the registration of ownership of the Bond and the
registration of transfers and exchanges of the Bond entitled to be registered, transferred or
exchanged.
(b) Transfer. Upon surrender to the Registrar for transfer of the Bond duly
endorsed by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar, duly executed by the registered owner
thereof or by an attorney duly authorized by the registered owner in writing and
guaranteed by an "eligible guarantor institution" meeting the requirements of the
Registrar, the Registrar shall authenticate and deliver, in the name of the designated
transferee or transferees, a new Bond of a like aggregate principal amount and like
.19
payments of principal installments, as requested by the transferor. The Registrar may,
however, close the books for registration of any transfer of the Bond or portion thereof
selected or called for redemption.
(c) Exchange. Whenever the Bond is surrendered by the registered owner for
exchange, the Registrar shall authenticate and deliver a new Bond of a like aggregate
principal amount, interest rate and principal installments, as requested by the registered
owner or the owner's attorney duly authorized in writing.
(d) Cancellation. The Bond surrendered upon any transfer or exchange shall be
promptly canceled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When the Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that
the endorsement on the Bond or separate instrument of transfer is valid and genuine and
that the requested transfer is legally authorized. The Registrar shall incur no liability for
the refusal, in good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name the Bond is at any time registered on the bond register as the absolute owner
of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving
payment of, or on account of, the principal of and interest on the Bond and for all other
purposes, and all such payments so made to any such registered owner or upon the
owner's order shall be valid and effectual to satisfy and discharge the liability of the City
upon the Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer of the Bond or exchange of the
Bond (except for an exchange upon the partial redemption of the Bond), the Registrar
may impose a charge upon the owner, thereof sufficient to reimburse the Registrar for any
tax, fee or other governmental charge required to be paid with respect to such transfer or
exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bond. In case the Bond shall become
mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like
amount, number, principal installments and tenor in exchange and substitution for and
upon cancellation of the mutilated Bond or in lieu of and in substitution for the Bond
destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the
Registrar in connection therewith; and, in the case that the Bond is destroyed, stolen or
lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was
destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the
Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to
it, in which both the City and the Registrar shall be named as obligees. The Bond so
surrendered to the Registrar shall be canceled by it and evidence of such cancellation
shall be given to the City. If the mutilated, destroyed, stolen or lost Bond has already
matured or the Bond has been called for redemption in accordance with its terms, it shall
not be necessary to issue a new Bond prior to payment.
2.05. Redemption.
(a) Mandatory Redemption. If on any interest payment date there will be a balance in
the District Fund after payment of the principal and interest due on the Bond drawn against it,
either from the prepayment of special assessments levied in the District or from the transfer of
surplus money from the Construction Account to the Principal Account as provided in Section
3.02 or otherwise, the City Clerk -Treasurer shall call for redemption on the interest payment date
principal installments of the Bond in an amount which, together with the interest thereon to the
interest payment date, will equal the amount of such funds on deposit in the District Fund on that
date. The redemption price shall equal the amount of the principal installments of the Bond to be
redeemed plus interest accrued to the date of redemption, without premium.
(b) Optional Redem tp ion. The Bond is subject to redemption at the option of the City at
any time and from time to time, in whole or in part, from sources of funds available therefor
other than those described in subsection (a) of this Section 2.05, at a redemption price equal to
the amount of the principal installments thereof to be redeemed plus interest accrued to the
redemption date, without premium.
(c) Notice and Effect of Redemption. The date of redemption and the amount of
principal installments of the Bond to be redeemed shall be fixed by the Registrar and the
Registrar shall give notice, by first class mail, postage prepaid, or by other means required by the
securities depository, to the owner or owners of the Bond at their addresses appearing on the
bond register, of the amount of principal installments to be redeemed and the date on which
payment will be made, which date shall be not less than 30 days after the date of mailing notice.
On the date so fixed interest on the principal installments of the Bond so redeemed shall cease to
accrue. If the Bond is prepaid in part, the Purchaser or then -registered owner of the Bond will
reamortize the principal remaining upon redemption and prepayment at the interest rate over the
then -remaining term in equal or substantially equal semiannual payments of principal and
interest. So long as the Bond is held by one registered owner, upon partial redemption and
-prepayment there shall be no need to exchange a new Bond for the unredeemed portion of the
existing Bond; provided that the amortization schedule attached as Schedule I to the form of the
Bond shall be replaced by an amortization schedule reflecting the reamortization of the principal
then outstanding in the manner described above.
2.06. Form. The Bond shall be drawn in substantially the form set forth in Exhibit A
hereto, and by this reference made a part hereof, with such modifications as are permitted by the
Act.
2.07. Execution, Registration and Delivery. The Bond shall be prepared under the
direction of the City Clerk -Treasurer and shall be executed on behalf of the City by the
signatures of the Mayor and the City Clerk -Treasurer; provided that the signatures and the
corporate seal may be printed, engraved or lithographed facsimiles of the originals. The seal of
the City need not be impressed or imprinted on the Bond. In case any officer whose signature or
a facsimile of whose signature shall appear on the Bond shall cease to be such officer before the
delivery of the Bond, such signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in office until delivery. Notwithstanding such
2
execution, the Bond shall not be valid or obligatory for any purpose or entitled to any security or
benefit under this resolution unless a certificate of authentication and registration on the Bond
has been duly executed by the manual signature of an authorized representative of the Registrar.
The executed certificate of authentication and registration on the Bond shall be conclusive
evidence that it has been authenticated and delivered under this resolution. When the Bond has
been so executed, authenticated and registered, it shall be delivered by the Registrar to the
Purchaser upon payment of the purchase price.
2.08. Application of Proceeds. From the proceeds of the Bond the City Clerk -Treasurer
shall credit forthwith $2,050 for the District to the Revolving Fund, as required by Section 7-12-
4169(2) of the Act, and the balance of such proceeds to the Construction Account in the District
Fund, to be used solely for the purposes described in Section 3.02. The Purchaser shall not be
obligated to see to the application of the purchase price.
Section 3. District Fund; Assessments.
3.01. District Fund. There is hereby created and established the fund designated as the
"2019 Special Improvement District No. 119 Fund," which shall be maintained by the City
Clerk -Treasurer on the books and records of the City separate and apart from all other funds of
the City (the "District Fund"). Within the District Fund there shall be maintained three separate
accounts, designated as the "Construction Account," "Principal Account," and "Interest
Account," respectively.
3.02. Construction Account. There shall be credited to the Construction Account in the
District Fund the proceeds of the sale of the Bond remaining after the required deposits to the
Revolving Fund. Any earnings on investment of money in the Construction Account shall be
retained therein. All costs and expenses of constructing the Improvements in and for the benefit
of the District shall be paid from time to time as incurred or reimbursed to the City from the
Construction Account in accordance with the provisions of applicable law, and money in the
Construction Account shall be used for no other purpose; provided that upon completion of the
Improvements and after all claims and expenses with respect to the Improvements have been
fully paid and satisfied, any money remaining in the Construction Account shall be transferred to
the Principal Account and used to redeem principal installments of the Bond as provided in
Section 3.03.
3.03. Principal Account and Interest Account. Money in the Principal Account and the
Interest Account shall be used only for payment of the principal of and interest on the Bond as
such payments become due or to redeem principal installments of the Bond.
Upon collection of special assessments to be levied with respect to the Improvements in
the District due on November 30 and May 31 of each year, the City Clerk -Treasurer shall credit
to the Interest Account so much of said special assessments as is collected as interest payment
and the balance thereof to the Principal Account. Any installment of any special assessment paid
prior to its due date with interest accrued thereon to the next succeeding interest payment date
shall be credited with respect to principal and interest payments in the same manner as other
assessments are credited to the District Fund. All money in the Interest Account and the
Principal Account shall be used first to pay interest due, and any remaining money shall be used
7
to pay the principal amounts of the Bond then due and, if money is available, to redeem principal
installments of the Bond in accordance with Section 2.05; provided that any money transferred to
the Principal Account from the Construction Account pursuant to Section 3.02 shall be applied to
redeem principal installments of the Bond to the extent possible on the next interest payment
date for which notice of redemption has been properly be given pursuant to Section 2.05(c).
3.04. Loans from Revolving Fund. The Council shall annually or more often if
necessary issue an order authorizing a loan or advance from the Revolving Fund to the District
Fund in an amount sufficient to make good any deficiency then existing in the Interest Account
and issue an order authorizing a loan or advance from the Revolving Fund to the District Fund in
an amount sufficient to make good any deficiency then existing in the Principal Account, in each
case to the extent that money is available in the Revolving Fund. A deficiency shall be deemed
to exist in the Principal Account or Interest Account if the money on deposit therein on any
December 15 or June 15 (excluding amounts in the Principal Account representing prepaid
special assessments) is less than the amount necessary to pay the principal installment of the
Bond due (other than upon redemption), and interest on the Bond payable, on the next
succeeding interest payment date.
Pursuant to Ordinance No. 300, as amended, the City has undertaken and agreed to
provide funds for the Revolving Fund by levying such tax or making such loan from the General
Fund as authorized by Montana Code Annotated, Section 7-12-4222. In the event that the
balance on hand in the Revolving Fund fifteen days prior to any date when interest is due on
special improvement district bonds or warrants of the City is not sufficient to make good all
deficiencies then existing in the special improvement district funds for which the City has
covenanted to make loans from the Revolving Fund, the balance on hand in the Revolving Fund
shall be allocated to the funds of the special improvement districts in which such deficiencies
then exist in proportion to the amounts of the deficiencies on the respective dates of receipt of
such money, until all interest accrued on such special improvement district bonds or warrants of
the City has been paid. On any date when all accrued interest on special improvement district
bonds and warrants of the City payable from funds for which the City has covenanted to make
loans from the Revolving Fund has been paid, any balance remaining in the Revolving Fund
shall be lent or advanced to the special improvement district funds for payment and redemption
of bonds to the extent the special improvement district funds are deficient for such purpose, and,
if money in the Revolving Fund is insufficient therefor, pro rata, in an amount proportionate to
the amount of such deficiency.
The City hereby determines, covenants and agrees to levy the property tax described in
the immediately preceding paragraph to provide funds for the Revolving Fund so long as the
Bond is outstanding to the extent required under the provisions of this Resolution and the Act,
even though such property tax levy may, under applicable law or provisions of the home rule
charter of the City, require that property tax levies of the City for other purposes be reduced
correspondingly.
Section 4. Covenants. The City covenants and agrees with the owners from time to time
of the Bond that until all the principal amount of the Bond and interest thereon are fully paid:
4.01. Compliance with Resolution. The City will hold the District Fund and the
Revolving Fund as trust funds, separate and apart from all of its other funds, and the City, its
officers and agents, will comply with all covenants and agreements contained in this Resolution.
The provisions hereinabove made with respect to the District Fund and the Revolving Fund are
in accordance with the undertaking and agreement of the City made in connection with the sale
of the Bond as set forth in Section 1.06.
4.02. Construction of Improvements. The City will do all acts and things necessary to
enforce the provisions of the construction contracts and Bond referred to in Section 1.04 and to
ensure the completion of the Improvements for the benefit of the District in accordance with the
plans and specifications and within the time therein provided, and will pay all costs thereof
promptly as incurred and allowed, out of the Construction Account and within the amount of the
proceeds of the Bond appropriated thereto, amounts contributed by the City therefor and
prepayments by property owners in the District. All awards of contracts have complied or will
comply with the applicable bid and award statutes.
4.03. Levy of Assessments. The City will do all acts and things necessary for the final
and valid levy of special assessments upon all assessable real property within the boundaries of
the District benefited by the Improvements in accordance with the Constitution and laws of the
State of Montana and the Constitution of the United States in an aggregate principal amount not
less than $41,000. Such special assessments shall be levied on the bases prescribed in the
Resolution of Intention, and shall be payable in substantially equal semiannual installments of
principal and interest over a period of 20 years, at an annual rate equal to the sum of. (i) the
average annual interest rate borne by the then -outstanding Bond, plus (ii) one-half of one percent
(0.50%) per annum. The assessments to be levied will be payable on the 30th day of November
in each of the years 2019 through 2038, and on the 31 st day of May in the years 2020 through
2039, inclusive, if not theretofore paid, and shall become delinquent on such date unless paid in
full. The first partial payment of each assessment shall include interest on the entire assessment
from the date of original registration of the Bond to January 1, 2020. The assessments shall
constitute a lien upon and against the property against which they are made and levied, which
lien may be extinguished only by payment of the assessment with all penalties, cost and interest
as provided in Section 7-12-4191 of the Act. No tax deed issued with respect to any lot or parcel
of land shall operate as payment of any installment of the assessment thereon which is payable
after the execution of such deed, and any tax deed so issued shall convey title subject only to the
lien of said future installments, as provided in Montana Code Annotated, Section 15-18-214.
4.04. Reassessment. If at any time and for whatever reason any special assessment or
tax herein agreed to be levied is held invalid, the City and this Council, its officers and
employees, will take all steps necessary to correct the same and to reassess and re -levy the same,
including the ordering of work, with the same force and effect as if made at the time provided by
law, ordinance or resolution relating thereto, and will reassess and re -levy the same with the
same force and effect as an original levy thereof, as authorized in Section 7-12-4186 of the Act.
Any special assessment, or reassessment or re -levy shall, so far as is practicable, be levied and
collected as it would have been if the first levy had been enforced including the levy and
collection of any interest accrued on the first levy.
E
If proceeds of the Bond, including investment income thereon, are applied to the
redemption of the Bond, as provided in Sections 7-12-4205 and 7-12-4206 of the Act, or if
refunding bonds are issued and the principal amount of the outstanding Bond is decreased or
increased, the City will reduce or increase, respectively, the assessments levied in the District
and then outstanding pro rata by the principal amount of such prepayment or the increment
above or below the outstanding principal amount of Bond represented by the refunding Bond.
The City and this Council, its officers and employees will reassess and re -levy such assessments,
with the same effect as an original levy, in such reduced or increased amounts in accordance
with the provisions of Sections 7-12-4176 through 7-12-4178 of the Act.
4.05. Absence of Litigation. There is now no litigation pending or, to the best
knowledge of the City, threatened questioning the validity or regularity of the creation of the
District, the contracts for construction of the Improvements or the undertaking and agreement of
the City to levy special assessments therefor and to make good any deficiency in the collection
thereof through the levy of taxes for and the making of advances from the Revolving Fund, or
the right and power of the City to issue the Bond or in any manner questioning the existence of
any condition precedent to the exercise of the City's powers in these matters. If any such
litigation should be initiated or threatened, the City will forthwith notify in writing the Purchaser,
and will furnish the Purchaser a copy of all documents, including pleadings, in connection with
such litigation.
4.06. Waiver of Penalty and Interest. The City covenants not to waive the payment of
penalty or interest on delinquent assessments levied on property in the District for costs of the
Improvements, unless the City determines, by resolution of the Council, that such waiver is in
the best interest of the owners of the outstanding Bond.
Section 5. Tax Matters.
5.01. Use of Improvements. The Improvements will be owned and operated by the City
_and available for use by members of the general public on a substantially. equal basis. The City
shall not enter into any lease, use or other agreement with any non-governmental person relating
to the use of the Improvements or security for the payment of the Bond which might cause the
Bond to be considered a "private activity bond" or a "private loan bond" within the meaning of
Section 141 of the Internal Revenue Code of 1986, as amended (the "Code").
5.02. General Covenant. The City covenants and agrees with the owners from time to
time of the Bond that it will not take or permit to be taken by any of its officers, employees or
agents any action which would cause the interest on the Bond to become includable in gross
income for federal income tax purposes under the Code and applicable Treasury Regulations (the
"Regulations"), and covenants to take any and all actions within its powers to ensure that the
interest on the Bond will not become includable in gross income for federal income tax purposes
under the Code and the Regulations.
5.03. Arbitrage Certification. The Mayor and the City Clerk -Treasurer, being the
officers of the City charged with the responsibility for issuing the Bond pursuant to this
Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in
accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b) of the
10
Regulations, stating that on the basis of facts, estimates and circumstances in existence on the
date of issue and delivery of the Bond, it is reasonably expected that the proceeds of the Bond
will be used in a manner that would not cause the Bond to be an "arbitrage bond" within the
meaning of Section 148 of the Code and the Regulations.
5.04. Arbitrage Rebate Exemption.
(a) The City hereby represents that the Bond qualifies for the exception for small
governmental units to the arbitrage rebate provisions contained in Section 148(f) of the Code.
Specifically, the City represents:
(1) Substantially all (not less than 95%) of the proceeds of the Bond (except for
amounts to be applied to the payment of costs of issuance or representing accrued
interest) will be used for local governmental activities of the City.
(2) The aggregate face amount of all "tax-exempt bonds" (including warrants,
contracts, leases and other indebtedness, but excluding private activity bonds and current
refunding bonds) issued by or on behalf of the City and all subordinate entities thereof
during 2019 is not reasonably expected to exceed $5,000,000. To date in 2019, the City
has issued no such tax-exempt bonds.
(b) If notwithstanding the provisions of paragraph (a) of this Section 5.04, the arbitrage
rebate provisions of Section 148(f) of the Code apply to the Bond, the City hereby covenants and
agrees to make the determinations, retain records and rebate to the United States the amounts at
the times and in the manner required by said Section 148(f).
5.05. Information Reporting. The City shall file with the Secretary of the Treasury, not
later than November 15, 2019, a statement concerning the Bond containing the information
required by Section 149(e) of the Code.
5.06. "Qualified Tax -Exempt Obligation."_ Pursuant to Section 265(b)(3)(B)(ii) of the"'
Code, the City hereby designates the Bond as a "qualified tax-exempt obligation" for purposes of
Section 265(b)(3) of the Code. The City has not designated any obligations in 2019 other than
the Bond under Section 265(b)(3). The City hereby represents that it does not anticipate that
obligations bearing interest not includable in gross income for purposes of federal income
taxation under Section 103 of the Code (including refunding obligations as provided in Section
265(b)(3) of the Code and including "qualified 501(c)(3) bonds" but excluding other "private
activity bonds," as defined in Sections 141(a) and 145(a) of the Code) will be issued by or on
behalf of the City and all "subordinate entities" of the City in 2019 in an amount greater than
$10,000,000.
Section 6. Authentication of Transcript. The officers of the City are hereby authorized
and directed to furnish to the Purchaser and to Bond Counsel certified copies of all proceedings
relating to the issuance of the Bond and such other certificates and affidavits as may be required
to show the right, power and authority of the City to issue the Bond, and all statements contained
in and shown by such instruments, including any heretofore furnished, shall constitute
representations of the City as to the truth of the statements purported to be shown thereby.
11
Section 7. Discharge.
7.01. General. When the liability of the City on the Bond issued under and secured by
this Resolution has been discharged as provided in this Section 7, all pledges, covenants and
other rights granted by this Resolution to the owners of such obligations shall cease.
7.02. Payment. The City may discharge its liability with reference to any Bond or
installment of interest thereon which is due on any date by depositing with the Registrar on or
before that date funds sufficient, or, if a City officer is the Registrar, mailing to the registered
owner of the Bond a check or draft in a sum sufficient and providing proceeds available, for the
payment thereof in full; or if any Bond or installment of interest thereon shall not be paid when
due, the City may nevertheless discharge its liability with reference thereto by depositing with
the Registrar funds sufficient, or, if a City officer is the Registrar, by mailing to the registered
owner thereof a check or draft in a sum sufficient and providing proceeds available, for the
payment thereof in full with interest accrued to the date of such deposit or mailing.
7.03. Prepay. The City may also discharge its obligations with respect to any Bond
called for redemption on any interest payment date, by on or before that date depositing with the
Registrar funds sufficient, or, if a City officer is the Registrar, mailing to the registered owner of
the Bond a check or a draft in a sum sufficient and providing proceeds available, for the payment
of the principal installments to be redeemed and interest accrued thereon to the date of
redemption; provided that notice of such redemption has been duly given as provided herein or
irrevocably provided for.
7.04. Irrevocable Deposits. If an officer of the City is the Registrar, any deposit made
under this Section 7 with the Registrar shall be irrevocable and held for the benefit of the owners
of the Bond.
Section 8. Repeals and Effective Date.
8.01. Repeal. All provisions of other resolutions and other actions and proceedings of
the City and this Council that are in any way inconsistent with the terms and provisions of this
Resolution are repealed, amended and rescinded to the full extent necessary to give full force and
effect to the provisions of this Resolution.
8.02. Effective Date. This Resolution shall take effect immediately upon its passage and
adoption by this Council.
12
PASSED AND ADOPTED by the City Council of the City of Laurel, Montana, this 201h
day of August, 2019.
17
Attest:
City Cler re rer
13
EXHIBIT A
UNITED STATES OF AMERICA
STATE OF MONTANA
YELLOWSTONE COUNTY
CITY OF LAUREL
SPECIAL IMPROVEMENT DISTRICT NO. 119 BOND, SERIES 2019
Interest at the rate per annum specified below,
payable on the 1 st day of January and the 1 S` day of July
in each year, commencing January 1, 2020.
No. R-1 $41,000
Date of
Interest Rate Maturity Original Issue
3.95% July 1, 2039 August 30, 2019
REGISTERED OWNER: YELLOWSTONE BANK
PRINCIPAL AMOUNT: FORTY ONE THOUSAND DOLLARS
FOR VALUE RECEIVED, City of Laurel, Montana (the "City"), will pay to the registered
owner identified above, or registered assigns, the total principal amount specified above, in
principal installments on each January 1 and July 1, in the years and in the principal amounts set
forth on Schedule 1 hereto, solely from the Principal and Interest Account in the District Fund, as
authorized by Resolution No. R19- 45 , adopted August 20, 2019 (the "Resolution"), all subject to
the provisions hereinafter described relating to the redemption of this Bond before maturity.
Unpaid principal installments of this Bond bear interest at the rate per annum specified
above from the date of original issue specified above, or from such later date to which interest
hereon has been paid or duly provided for, until the maturity date specified above or an earlier date
on which this Bond shall have been duly called for redemption by the City Clerk -Treasurer.
Interest on this Bond is payable semiannually on each January 1 and July 1, commencing January
1, 2020, to the owner of record of this Bond appearing as such in the bond register as of the close
of business on the twentieth day (whether or not a business day) of the immediately preceding
month. This Bond represents all principal installments of the issue. The principal of and interest
on this Bond are payable in lawful money of the United States of America. Interest is calculated
on the basis of a 365 -day year. The City Clerk -Treasurer shall initially serve as Registrar for this
Bond.
This Bond comprises an issue in the aggregate principal amount of $41,000 (the "Bond"),
and is issued pursuant to and in full conformity with the Constitution and laws of the State of
Montana thereunto enabling, including Montana Code Annotated, Title 7, Chapter 12, Parts 41
and 42, as amended (the "Act"), and ordinances and resolutions duly adopted by the governing
A-1
body of the City, including the Resolution, for the purpose of financing the costs and expenses of
making certain local improvements (the "Improvements") for the special benefit of property
located in Special Improvement District No. 119 (the "District") and funding a deposit to the
Special Improvement Revolving Fund (the "Revolving Fund"). The Bond is issuable only as a
single, fully registered bond.
This Bond is payable from the collection of a special tax or assessment levied upon all
assessable real property within the boundaries of the District benefited by the Improvements, in an
aggregate principal amount not less than $41,000, except as such amounts may be reduced or
increased in accordance with provisions of Montana law. Such assessments constitute a lien
against the property against which they are made and levied and are to be deposited into the 2019
Special Improvement District No. 119 Fund of the City (the "District Fund"). The Bond is not a
general obligation of the City.
The City has validly established the Revolving Fund to secure the payment of certain of its
special improvement and sidewalk, curb, gutter and alley approach bonds and warrants, including
the Bond. The City has also agreed, to the extent permitted by the Act, to issue orders annually,
or more often as necessary, authorizing loans or advances from the Revolving Fund to the District
Fund, in amounts sufficient to make good any deficiency in the District Fund to pay principal of
or interest on the Bond, to the extent money is available in the Revolving Fund, and to provide
funds for the Revolving Fund by annually levying such tax or making such loan from its general
fund, subject to the limitation that no such tax levy or loan may in any year cause the balance in
the Revolving Fund to exceed legal limits based on a percentage of the principal amount of the
City's then outstanding special improvement and sidewalk, curb, gutter and alley approach bonds
and warrants secured thereby and subject to the durational limitations specified in the Act. While
any property tax levy to be made by the City to provide fiends for the Revolving Fund is subject to
levy limits under current law, the City has agreed in the Resolution to levy property taxes to
provide funds for the Revolving Fund to the extent described in this paragraph and, if necessary,
to reduce other property tax levies correspondingly to meet applicable levy limits.
The principal installments of this Bond are subject to mandatory redemption on any interest
payment date if, after paying all principal and interest then due on the Bond, there are funds to the
credit of the District Fund, either fiom the prepayment of assessments levied in the District or from
the transfer of surplus money from the Construction Account to the Principal Account, for the
redemption thereof. In addition, the Bond is subject to redemption at the option of the City at any
time and from time to time, in whole or in part, at a redemption price equal to the amount of the
principal installments of the Bond to be redeemed plus interest accrued thereon to the date of
redemption. The date of redemption and the amount of principal installments of the Bond to be
redeemed shall be fixed by the City Clerk -Treasurer, who shall give notice by first class mail,
postage prepaid, to the owner or owners of the Bond at their addresses appearing on the bond
register, of the amount of principal installments of the Bond to be redeemed and the date on which
payment will be made, which date shall not be less than 30 days after the date of mailing of notice.
On the date so fixed interest on the principal installments of the Bond so redeemed shall cease to
accrue.
If the Bond is prepaid in part, the Purchaser or then -registered owner of the Bond will
reamortize the principal remaining upon redemption and prepayment at the interest rate over the
MR
then -remaining term in equal or substantially equal semiannual payments of principal and interest.
So long as the Bond is held by one registered owner, upon partial redemption and prepayment
there shall be no need to exchange a new Bond for the unredeemed portion of the existing Bond;
provided that the amortization schedule attached as Schedule I to the form of the Bond shall be
replaced by an amortization schedule reflecting the reamortization of the principal then
outstanding in the manner described above.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond
is transferable upon the books of the City at the principal office of the Registrar, by the registered
owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together
with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered
owner or his attorney. Upon such transfer, the City will cause a new Bond to be issued in the name
of the transferee or registered owner, of the same aggregate principal amount, bearing interest at
the same rate and with principal installments payable on the same dates, subject to reimbursement
for any tax, fee or governmental charge required to be paid with respect to such transfer or
exchange.
The City and the Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of
receiving payment and for all other purposes, and neither the City nor the Registrar shall be
affected by any notice to the contrary.
The Bond has been designated by the City as a "qualified tax-exempt obligation" pursuant
to Section 265 of the Internal Revenue Code of 1986, as amended.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all things
required to be done precedent to the issuance of this Bond have been properly done, happened and
been performed in the manner prescribed by the laws of the State of Montana and the resolutions
and ordinances of the City of Laurel, Montana, relating to the issuance hereof.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Resolution until the Certificate of Authentication hereon shall have
been executed by the Registrar by the manual signature of one of its authorized representatives.
A-3
IN WITNESS WHEREOF, the City of Laurel, Montana, by its City Council, has caused
this Bond to be executed by the facsimile signatures of the Mayor and the City Clerk -Treasurer,
and by the official seal of the City.
LA
SSE
�/j71111/UttlilUiiii
CERTIFICATE OF AUTHENTICATION
This Bond and the principal installments hereof have been registered as required by law
on the books of the City as of , 2019.
CITY OF LAUREL, MONTANA,
as Registrar
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN COM — as tenants
F�IK�3iijL�Zi1
TEN ENT — as tenants
UTMA........... Custodian ...............
(Cust) (Minor)
by the entireties
under Uniform Transfers to Minors
JT TEN — as joint tenants Act ..............................
with right of (State)
survivorship and
not as tenants in
common
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto the within Bond and all rights and title thereunder,
and hereby irrevocably constitutes and appoints attorney to transfer the
within Bond on the books kept for registration thereof, with full power of substitution in the
premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE:
SIGNATURE GUARANTEED
Signature(s) must be guaranteed by an
"eligible guarantor institution" meeting
the requirements of the Registrar,
which requirements include membership
or participation in STAMP or such other
"signature guaranty program" as may be
determined by the Registrar in
addition to or in substitution for STAMP,
all in accordance with the Securities
Exchange Act of 1934, as amended.
A-5
NOTICE: The signature to this assignment
must correspond with the name as it appears
upon the face of the within Bond in every
particular, without alteration, enlargement
or any change whatsoever.
SCHEDULE I
DEBT SERVICE SCHEDULE
UTWTTSG����A-
Principal
Loan Date
I maturity
1-2
Loan No c
Accountfft
10 -or Initials
1
$41,000.00
108-30.2019
107-01-2039
2215269:::1
1
ja
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing "* * * " has been omitted due to text length limitations.
Borrower:
City of Laurel
2,966.48
Lender:
YELLOWSTONE BANK
3
01-01-2021
1,483.24
784.01
12 1st Avenue
38,673.63
4
07-01-2021
1,483.24
757.53
PO Box 7
37,947.92
2021 TOTALS:
2,966.48
1,641.54
Laurel, MT 59044
Disbursement Date: August 30, 2019
01-01-2022
1,483.24
Repayment Schedule: Installment
727.61
Interest Rate:
3.950
07-01-2022
1,483.24
Calculation Method: 365/365 U.S.
Rule
Payment
Payment
Payment
Interest
Principal
Remaining
Number
Date
Amount
Paid
I Paid
Balance
1
01-01-2020
1,483.24
550.19
933.05
40,066.95
2
07-01-2020
1,483.24
789.15
694.09
39,372.86
2020 TOTALS:
2,966.48
1,339.34
1,627.14
3
01-01-2021
1,483.24
784.01
699.23
38,673.63
4
07-01-2021
1,483.24
757.53
725.71
37,947.92
2021 TOTALS:
2,966.48
1,641.54
1,424.94
5
01-01-2022
1,483.24
755.63
727.61
37,220.31
6
07-01-2022
1,483.24
729.06
754.18
36,466.13
2022 TOTALS:
2,966.48
1,484.69
1,481.79
7
01-01.2023
1,483.24
726.13
757.11
35,709.02
8
07-01-2023
1,483.24
699.46
783.78
34,925.24
2023 TOTALS:
2,966.48
1,425.59
1,540.89
9
01-01.2024
1,483.24
695.44
787.80
34,137.44
10
07-01-2024
1,483.24
672.37
810.87
33,326.57
2024 TOTALS:
2,966.48
1,367.81
1,598.67
11
01-01-2025
1,483.24
663.61
819.63
32,506.94
12
07-01-2025
1,483.24
636.74
846.50
31,660A4
2025 TOTALS:
2,966.48
1,300.35
1,666.13
13
01-01-2026
1,483.24
630.43
852.81
30,807.63
14
07-01-2026
1,483.24
603.45
879.79
29,927,84
2026 TOTALS:
2,966.48
1,233.88
1,732.60
15
01-01-2027
1,483.24
595.93
887.31
29,040,53
16
07-01-2027
1,483.24
568.84
914.40
28,126.13
2027 TOTALS:
2,966.48
1,164.77
1,801.71
17
01-01-2028
1,483.24
560.06
923.18
27,202.95
18
07-01-2028
1,483.24
535.79
947.45
26,255.50
2028 TOTALS:
2,966.48
11095.85
1,870.63
19
01-01.2029
1,483.24
522.81
960.43
25,295.07
20
07-01-2029
1,483.24
495.47
987.77
24,307.30
2029 TOTALS:
2,966.48
1,018.28
1,948.20
21
01-01-2030
1,483.24
484.01
999.23
23,308.07
22
07-01-2030
1,483.24
456-55
1,026.69
22,281.38
2030 TOTALS:
2,966.48
940.56
2,025.92
23
01-01-2031
1,483.24
443.67
1,039.57
21,241,81
24
07-01-2031
1,483.24
416.08
1,067.16
20,174.65
2031 TOTALS:
2,966.48
859.75
2,106.73
25
01-01-2032
1,483.24
401.72
1,081,52
19,093.13
26
07-01-2032
1,483.24
376.06
1,107.18
17,985.95
2032 TOTALS:
2,966.48
777.78
2,188.70
27
01-01-2033
1,483.24
358.14
1,125.10
16,860.85
28
07-01.2033
1,483.24
330.26
1,152.98
15,707.87
L&W"9- Vw It t 10016 CAP 1-4 USA Cgp91~ 1"?. 2010 AS Nigh ftwwd -MY "-10012=
AMORTIZATION SCHEDULE
Loan No: 2215265
(Continued)
Page 2
2033 TOTALS:
2,966.48
688.40
2,278.08
29
01-01-2034
1,483.24
312.78
1,170.46
14,537.41
30
07-01-2034
1,483.24
284.75
1,198.49
13,338.92
2034 TOTALS:
2,966.48
597.53
2,368.95
31
01-01-2036
1,483.24
266.61
1,217.63
12,121.29
32
07-01-2036
1,483.24
237.43
1,245.81
10,875.48
2035 TOTALS:
2,966.48
503.04
2,463.44
33
01-01-2036
1,483.24
216.56
1,266.68
9,608.80
34
07-01-2036
1,483.24
189.25
1,293.99
8,314.81
2036 TOTALS:
2,966.48
405.81
2.560.67
35
01-01-2037
1,483.24
165.57
1,317.67
6,997.14
36
07-01-2037
1,483.24
137.06
1,346.18
5,650.96
2037 TOTALS:
2,966.48
302.63
2,663.85
37
01-01-2038
1,483.24
112.52
1,370.72
4,280.24
38
07-01-2038
1,483.24
83.84
1,399.40
2,880.84
2038 TOTALS:
2,966.48
196.36
2,770.12
39
01-01-2039
1,483.24
57.36
1,425.88
1,454.96
40
07-01-2039
1,483.46
28.50
1,454.96
0.00
2039 TOTALS:
2,966.70
85.86
2,880.84
TOTALS:
59,329.82
18,329.82
41,000.00
NOTICE: This is an estimated loan amortization schedule.
Actual amounts may vary if payments are made on different dates or in different
amounts.
L&W"9- Vw It t 10016 CAP 1-4 USA Cgp91~ 1"?. 2010 AS Nigh ftwwd -MY "-10012=