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HomeMy WebLinkAbout1987.10.21 CITY COUNCIL MINUTES (2) r P~tINUTES OF A REGULAR MEETING AND RESOLUTION A regular meeting of the City Council of the City of Rexburg, Madison County, State of Idaho, was held at 7;00 o'clock a.m. on October 21, 1987, at the City Hall at Rexburg, Idaho, there being present the following: Mayor John C. Porter, Councilmen Bruce Sutherland, Darlene Blackburn, Nile Boyle, Bruce Casper, and Glen Pond; also City Clerk, Rose Bagley. Councilman Sander Larson was absent. Glen Pond was recognized by the Mayor and presented to the Council the following Resolution: RESOLUTION r WHEREAS, the City of Rexburg, Idaho (the "City"), is a political subdivision duly organized and operating under the laws of the State of Tdaho, and is authorized by Idaho Code Sections 63-3101 through 63-3108 to issue tax anticipation notes to provide funds in anticipation of the collection of taxes for the current fiscal year; and WHEREAS, the City Council (the "Council") of the City has determined that there will exist, during the 1987-1988 fiscal year, a deficit in the City's tax collections to defray the current expenses of the City, and the Council has decided to issue a tax anticipation note in order to provide funds to meet such deficit pending collection of its ad valorem taxes for the 1987-1988 fiscal year. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REXBURG, IDAHO: Section 1. Far the purpose of providing funds to pay current expenses in anticipation of collection of ad valorem taxes for the 1987-1988 fiscal year, the Council hereby authorizes the issuance and sale of a tax anticipation note, entitled the City of Rexburg, Idaho, Negotiable Tax Anticipation Note, in the total principal amount of $350,000.00, to be issued, sold and delivered in the manner provided by Idaho Code, Title 63, Chapter 3I. -1- r Section 2. That the tax levy for the current fiscal year has been completed; that the amount of taxes levied for general purposes exclusive of taxes levied for outstanding bonded indebtedness and special purposes in the current fiscal year (1987) is .004194 mills on the dollar of market value, which market value for the year 1987 is $138,240,421.00, making the total amount of taxes levied for its current fiscal year, exclusive of those levied for outstanding bonded indebtedness and special purposes, the sum of $578,900.00, of which sum none has been collected; that this proposed tax anticipation note does not exceed 75 percent of the taxes not yet collected by said taxing district for the current fiscal year, and the proceeds therefrom have not yet been paid to the City of Rexburg by Madison County. Section 3. The Note shall be dated October 27, 1987, and shall mature on February 1, 1988. It shall not be subject to prior call and redemption. The Note shall bear interest at the rate of 6.49 percent per annum, payable at maturity. It shall be in substantially the same form as set forth in Exhibit "A", which is annexed hereto and by reference made a part of this resolution. The Note shall be executed in the name of the City by the Mayor of the City, attested by the City Clerk and sealed with the official seal of the City.. The principal and interest on the Note shall be payable in lawful money of the United States of America, at the Rexburg office of The Idaho First National Bank. The Note shall be a negotiable instrument within the meaning of the Uniform Commercial Code. Section 4. The Note shall be a direct and general obligation of the City. The full faith, credit and resources of the City are hereby pledged far payment of the Note. Section 5. The sale and delivery of the Note to The Idaho First National Bank, Rexburg, Idaho, is hereby authorized and approved. -2- i Section 6. The proceeds of the Note shall be used only for the purposes for which the 1987 levy of the City is levied. Section 7. The proceeds of the Note shall not be used directly or indirectly to purchase any securities or obligations the acquisition of which would cause the Note to be an arbitrage bond within the meaning of Section 148 of the Tax Reform Act of 1986 (the "Act"). Section 8. The City hereby designates the Note as a "qualified tax-exempt obligation" for purposes of the Act, IRS Code Section 265(b)(3). It covenants that it reasonably expects to issue not more than $350,000.00 total in debt obligations, including the amount of this Note, during the current 1987 calendar year. Section 9. The Council declares that not less than 90 percent of the cumulative cash flow deficit to be financed by proceeds of the Note will be reached within six months of the date of the Note. The City covenants that, in the event the gross proceeds of the Note are not expended, within. the meaning of Section 148(f)(4)(B) of the Act, by no later than six months after the date of issue, for the purposes for which the Note is issued, then the City will rebate to the United States, within the time and in the manner provided by Section 148(f)(3) of the Act, an amount equal to the excess of the amount earned on all nonpurpose investments over the amount which would have been earned if such nonpurpose investments were invested at a rate equal to the yield of the Note, plus any income attributable to such excess. Yield shall be determined as provided in the Act. Section 10. There is hereby created and shall be maintained in the office of the City Treasurer a fund and account separated and distinct from all other funds of the City designated as the "Tax Anticipation Note Redemption Fund" (the "Redemption Fund"). The proceeds of all ad valorem taxes for the City collected or received for the 1987 fiscal year shall -3- be placed in the Redemption Fund until such time as the amount accumulated therein, including any earnings thereon, shall be sufficient to pay the principal of and interest on the Note at maturity. The monies accumulated in the Redemption Fund are hereby appropriated and set apart exclusively for said purpose. Section 11. If taxes collected for the 1987 fiscal year are not sufficient to repay the principal of and interest on the Note, the City shall, in providing the levy of taxes for the succeeding fiscal year, include in such levy the amount necessary, together with the monies accumulated in the Tax Anticipation Note Redemption Fund, to make said repayment. Section 12. This Resolution shall take effect immediately upon its adoption and approval. It was moved by Nile Boyle, and seconded by Darlene Blackburn, that such Resolution be adopted, and the proper officers directed to proceed accordingly, and that the Resolution be spread on the minutes. Upon call for question, the vote was taken as: For, 5; Against, 0. Whereupon, the Mayor declared the Resolution duly adopted and directed that the proper papers be executed and that the Mayor proceed to negotiate the loan, as authorized in the Resolution and directed the Clerk to spread the Resolution upon the minutes of the Council. DATED this 21st day of October, 1987. ATTEST: .~ - _;, -,.= ,; City Cher (SEAL) CITY OF REXBURG, IDAHO By r' . ``J d o _.._ ., v -4-