HomeMy WebLinkAbout1977-08-25
® ~ ~ C ~ 0
N G
Before: Pi,:_21;iL:1~ CI:'Y COU~iCIL
I,ocatior.: 71~ h!eridian Street
Pieri:iian, Idaho
Time: :JC ....
llxte: .,'.o°~st Zr, 1977
Items to be discussed are as follok~s:
:~o:=~~,~~,~rt!: ":nl i.asr: r;ot^.il c:ueat ,., r.,~de to
,soa:~cu . ; ti: !.lie fi.::.. rciir.u:ic::,; Oi' ..:ncis
... ._._ ..,:nr:ure
:, ~ ~ ~ ~, ,
•r. ~ ~. ~, . t ~ a ~/~; nv ` ~E,
4 „ w,l ,
,ill `!~ j-
Meridian, Idaho
August 25, 1977
The Clty Council of the City of Meridian, Ada County,
Idaho, met in special. public session at the regular meeting
place of the council in the City Hall in the City of Meridian at
6.00' o'clock P:M. on August 25,, 1977. The roll was called and
the following found to be present:
.John R. Navarro,
Mar Vin R. Bodine,
Kenneth Rasmussen,
Richard Williams,
Absent:
Councilman
Councilman
Councilman
Councilman
Don M. Storey, Mayes
There were also present Herald J. Cox, City Clerk
and Wayne 0; Crookston, Jr ..; CSty Attorney.
After the meeting had been duly called to order, the
minutes of the preceding meeting read and approved and the conduct
o£ other business, the Mayor announced that one of the purposes
of the meeting was to adopt a resolution authorizing the execution
of an arbitrage certificate in connection with the issuance by
the City of its $2,040,000 Water and Sewer Revenue Refunding Bonds
authorized by Ordinance No. 306 adopted on August 1, 1977.
Thereupon the following resolution,_which was introduced
in written form by Marvin R. Bodine. , was read in full and pursuant
to motion made by Kenneth Rasmussen and seconded by Richard Williams ,
was adopted by the following vote:
r ,,~
.. '.
Aye: John Navarro
, Kenneth Rasmussen
Abstain: Richard Williams ~ '
Nay: None.
The resolution was thereupon signed by the Mayor,
attested by the City Clerk, was ordered recorded and is as follows:
A RESOLUTION authorizing the execution by the Mayor,
City Clerk and City Treasurer of the City of Meridian,
Idaho, of an Arbitrage Certificate in connection
with the use and investment of the proceeds of the
$2,040,000 Water and Sewer Revenue Refunding Bonds
of the City of Meridian, Idaho.
WHEREAS, the City of Meridian, Idaho.("City") has authorized
the issuance and sale of $2,040,000 Water and Sewer Revenue Refunding
Bonds of the City dated September 1, 1977, and it is now desired
to authorize the execution by the Mayor, City Clerk and City
Treasurer of an Arbitrage. Certificate in order to make the certifica-
tions and representations required pursuant to Section 103(c) of
the Internal Revenue Code of 1954, as amended;
NOW, THEREFORE, Be It Resolved by the Mayor and Council ,
of the City of Meridian, Ada County, Idaho, as follows:
Section 1. The Mayor, City Clerk and City Treasurer of
the City are hereby authorized and directed to execute and deliver
an Arbitrage Certificate with respect to the $2,040,000 Water and
Sewer Revenue Refunding Bonds of the City dated September 1, 1977,
authorized to be issued pursuant to Ordinance No. _ 306 ~
aflopted on August 1, 1977, such Certificate to be in substantially
the following form:
-2-
'~ , w.'
ARBITRAGE CERTIFICATE
We, the undersigned, the duly qualified and acting Mayor,
City Clerk and City Treasurer, respectively of the City of Meridian,
Ada County, Idaho (the "Issuer") do hereby certify with respect to
$2,040,000 Water and Sewer Revenue Refunding Bonds of the Issuer,
dated September 1, 1977 {the "Bonds") presently being delivered by
the Issuer, that the proceeds of the sale of the Bonds shall be
devoted to and used with due diligence for the completion of the
refunding for which the Bonds are authorized by ordinance adopted
by the City Council of the Issuer, as the governing body of the
Issuer, on August 1, 1977 {the "Bond Ordinance"). We further
certify and represent that $ 2,040,000.00 proceeds of the Bonds
plus $ 56,948.21 other money derived from sources other
than the proceeds of the Bonds or any other borrowing of the
Issuer) has been paid over to The Idaho First National Bank of
Boise, Idaho (the "Bank"), to be held, invested and applied to
the payment of $2,040,000 Water and Sewer Revenue Bonds of the.
Issuer, dated October 1, 1975, numbered 58 to 465, inclusive
(the "1975 Bonds"), plus applicable redemption premium on
October 1, 1985, pursuant to call for redemption, under the
Bond Ordinance in accordance with that certain Escrow Agreement,
dated as of September 1, 1977, between the Issuer and the Bank;
and that all accrued interest from the date of the Bonds to
the date of delivery thereof received from the purchasers of
the Bonds has been deposited in the Escrow Fund in the Bank pur-
suant to the Escrow Agreement.
We further certify that:
(1) The Issuer has heretofore incurred, substantial
binding obligations with respect to the improvements and
extentions to the combined municipal water and sewer system
of the Issuer to pay a portion of the cost of which the
1975 Bonds were originally issued (the "Project"), said
binding obligations comprising Construction Contract with
Chicago Bridge and Iron fur $339,20 .00; and Construction Contract
with Idaho Construction Company for $566,325.00
not less than 100,000.
in the amount of ''
(2) It is expected that over 85~ of the spendable
proceeds of the 1975 Bonds (including investment proceeds)
deposited in the Construction Account established in Section
5.02 of Ordinance No. 283 of the Issuer will be expended
on or before November 20, 1978, for the purpose of paying
the coat of the Project, said date being within three years
following the date of issue of the 1975 Bonds.
(3) Work on the Project is expected to proceed with
due diligence to completion.
(4) The Pro~eet has not been or is not expected to be
sold or otherwise disposed of in whole or in material part
prior to_the last maturity of the Bonds. "Material part"
means (1) land, and (11) any building, and (iii) personal
property or fixtures in excess of that which is expected to
be sold, traded in or discarded upon wearing out or becoming
obsolete.
.~
..
(5) All of the principal proceeds of the Bonds are
needed for the purposes stated in the form of Bond pre-
scribed by the Bond Ordinance, including expenses inci-
dental to such purposes and to the issuance of the Bonds.
(6) The purpose of the refunding to be accomplished
with Bond proceeds is to save debt service on the obliga-
tion represented by the Bonds; the amount of such savings
will be $ 670,640:78 _ in the aggregate, the present value
of which is $ 94,779.06
(7) Section 1.103-14(e)(3)(11)(A) of the Proposed
Regulations of the United States Treasury Department
under Section 103 of the Internal Revenue Code of 1954,
as amended, applies to the issue of the Bonds. The
aforementioned investment of $ 2,040,000.00 of the pro-
ceeds of the Bonds will be made within the 30 day period
prescribed by said Section 1.103-14(e)(3)(ii)(A).
(8) The yield on the Bonds is computed to be 6..258
per cent (B/258$) per annum and the yield on tTe
ob igations to be acquired with the aforementioned $ 2,040,OA0.00
of the proceeds of the Bonds is computed to be .6.250
per cent.( 6.250) per annum. _
(}) .In computing the yield both on the Bonds and on
the investments to be acquired with the Bond proceeds: (a)
there has been determined that yield which, when used in
computing the present worth of all payments of principal
and interest to be paid on the obligations involved, pro-
duces an amount equal to the purchase price; and (b) the
yield both on the Bonds and on the investments has been
calculated by the use of semiannual compounding of interest.
(10) In computing the yield of the Bonds and the yield
of the investments being acquired with Bond proceeds; the -
following administrative costs, which have actually been
incurred and have been or will be paid with the Issuer's
money, are allocated as follows:
Amount purpose
-0-. Fiscal Advisory Fee
and Expenses
Printing costs:
=0=- Official Statement
-0- Bond Printing
=0- Bond Counsel Fees
and Expenses
-0- Other Counsel Fees
and Expenses
=0- Rating Agency Fees
Amount Allocated
to Bonds
-0-
-0-
-0-
-o-
-0-
-0-
i
~A
-2
Amount Allocated.
to'Investments
and Other than
Proceeds Bond Proceed
-0- -0-
-0-
-0-
-o-
-0-
- 0-
-0-
-o-
-o-
-0-
-0-
Amount Allocated
Amount Purpose to Bonds
-0- Escrow Agent Fees -0-
(present value)
-p- Trustee's Fees -0-
(present value)
$1,500 Paying Agent Fees $1,800.00
(present value)
-0- Custodial Fees -0-
-0- Accounting Fees -0-
-0- Actuary Fees -0-
TOTAL g l , 800.00
Amount Allocated
to Investments
and Other an
Proceeds Bond Proceeds
-0- -0-
-0- -0-
-0- -0-
-0- -0-
-0- -0-
-0- -0-
-0-
-0-
(11) In computing the administrative costs set forth in
paragraph (10) above, all costs to be paid more thah six
months after delivery of the Bonds have been computed at
present value by discounting such costs, based on current
prlces without regard to any inflation adjustment, at a yield
of 6.25 ~ per annum, compounded semiannually, which
yie d is not less than the yield of the Bonds (determined
without regard to such administrative costs).
(12) Administrative costs are allocated between the
Bonds and the investments in paragraph (10) above on the
following basis: (a) costs which would be incurred in the
same amount regardless of the investment of Bond proceeds
are allocated to the Bonds; {b) costs which would not have
been incurred but for the investment of Bond proceeds are
allocated to the investments; (c) as to costs which .would
have been incurred in any event but which are increased
because of the investment of Bond proceeds, the amount of
such increased cost is allocated to investments and the
remainder to the Sonds; and (d) costs allocated to in-
vestments are further allocated between investments ac-
quired with Bond proceeds and investments acquired with
other money according to that proportion borne by the
amount paid for investments acquired with Bond proceeds
to the amount paid for investments made with other money.
(13) In computing the yield on the investments as set
forth in paragraph (8) above, as to each investment acquired,
as part of the Escrow Fund pursuant to the Escrow Agreement,
in part with the proceeds of the Bonds and in part with other
funds, an amount of each receipt of principal and interest
to be received from each such investment has been allocated
to the proceeds of the Bonds in the same proportion as the
amount of the Bond proceeds used to acquire such investment
bears to the purchase price of such investment.
(14) The Bonds are being purchased by the purchasers
thereof at the price of $2,040,000, plus accrued interest
to the date of delivery, which price is reasonable under
customary standards applicable in the market.
-3-
• • f •
l
(15) $ 1,839,963.00 of the proceeds of the 1975
Bonds have been spent for the purpose for which the 1975
Bonds were issued and $ 485,037.00 of the proceeds of
the 1975 Bonds remains in the Construction Account estab-
lished in Section 5.02 of Ordinance No. 283 of the Issuer
and will be used within three years after delivery of the
1975 Bonds to complete the Project for which the 1975 Bonds
were issued.
(16) All accrued interest on the Bonds will be
applied to the payment of interest falling due on the
Bonds on March 1, 1978, which date is within the one year
period beginning on the date of issue of the Bonds; to
the extent that such accrued interest is for a period
exceeding six months, such accrued interest will not be
invested at a yield higher than the yield borne by the
Bonds.
(17) All the investments being acquired with Bond
proceeds are being paid for at the market price thereof
and are being acquired directly from the United States
Treasury.
(18) The "excess proceeds" of the Bonds (as defined'
in Section 1.103-15(c) of the currently proposed regulations
of the United States Treasury Department pertaining.to
arbitrage bonds) are not expected to exceed one percent
o'f the "original proceeds" of the Bonds.: Said "excess
proceeds" are calculated as follows:
(a) Original Principal Proceeds of
the Bonds (and premium, if any): $ 2,040,000.00
(b) Accrued Interest on the Bonds: $ -0-
(c) Anticipated return on investments
made with Bond proceeds (including
reinvestments, if any): $ 1,020,000.00
(d) Indirect Proceeds expected from
acquired purpose obligations and
from sale or other disposition of
assets financed with the 1975 Bonds: $ -0-
(e) Transferred Proceeds (including any
unspent construction fund money, cap-
italized interest and reserve derived
from proceeds of the 1975 Bonds: $ -0-
(f) Investment Proceeds derived from
the investment of a Reserve Fund or
interest capitalized with the Bond
proceeds: $ -0-
Total Proceeds:
Deductions
(1) "Proceeds" of the Bond to be
be used to pay principal on the
1975 Bonds:
-4-
$ 3,060,000
$ 2,040,000.00
--
(ii) Proceeds of the
to pay (not more
accrued interest
Bond to be used
than six months)
on the Bonds: $
-0-
(iii) Proceeds of the Bond to be used
to pay capitalized interest on
the Bonds: $ -0-
(iv) Proceeds of the Bonds to be used.
as part of reasonably requi'fied
reserve or replacement fund for
the Bonds: $ _0
{v) Proceeds of the Bonds to be used _
to pay administrative costs: $ -0
(vi) Transferred Proceeds to be used Not Appiicabl~t
for purpose of the 1975 Bonds: $
(vii) Investment Proceeds derived
from the investment of a reason-.
_ ably required reserve or replace- _
ment fund: ~ $ -0
Total Deductions:
Excess Proceeds:
$2,040,000.01
$1,020,OOO.Oi
(19) At least 49~ of the "excess proceeds" of the Bonds
will be used to pay interest that accrues on the 1975 Bonds
on and prior to October 1, 1985 before the 1975 Bonds are
retired; no proceeds of the Bonds will be used to pay interest
on the 1975 Bonds or to replace funds that are used directly
or indirectly to pay interest on the 1975 Bonds.
(20) To the best of our knowledge and belief there
are no facts, estimates or circumstances that would
materially change the conclusions and representations
set out in this certificate.
(21} The Issuer has not been notified of any listing
or proposed listing of it by the Internal Revenue Service
as a bond issuer whose arbitrage certifications may not be
relied upon.
IN WITNESS WHEREOF, we have hereunder subscribed our
official signatures and caused the official seal of the City of
eridian, Idaho to be impressed hereon, this _~~ day of
~~' 1977. //
- -._ ~ Mayor, City of Meridian, Idaho
~~ C/
,._.,_.
' i~/~_: , - C y Clerk, Cit of Meridian, Idaho
~ ~ ...
If~ransferred Proceeds are to
be used for purpose of the prior issue,
write "not applicable" here.
-5-
y •rreasurer, ~iLy of rieriaaan,
Based upon information furnished us by or on behalf of the
above named Issuer, we find that the allocations set out in
paragraph (10) of the foregoing Arbitrage Certificate are reason-
able and that the computations of the yield shown in paragraph (8)
thereof are mathematically correct and are made in accordance with
the certifications and representations of said certificate.
WIZ'NES5 our signature as of the date of the foregoing
Arbitrage Certificate.
Ac nary
BY ~c~ C ~ 1~0-«.~~
PHH:kf
7-19-77
-6-
Adopted and approved August 25, 1977.
~~' ~j'
_ -.Attest:
~,...-
-. .,. i/
;-
_- ~ Ci y Clerk
~%
~~
//j _' " "`
(Other business not pertinent to the above appears in
the minutes of the meeting.)
Pursuant to motion duly made and carried, the meeting
was adjourned.
Mayor
_. .A~test:
_ -
Cit Clerk
-3-
...
STATE OF IDAHO )
COUNTY OF ADA )
I, Herald J. Cox, do hereby certify that I am the
duly qualified and acting Clerk of the City of Meridian, Ada
County, Idaho.
I further certify that the above and foregoing constitutes
a true and correct copy of the minutes of a special public meeting
of the City Council of said city held on the 25th day of August, 1977,
and of a resolution adopted at said meeting, as said minutes and
resolution are officially of record in my possession. --
IN WITNESS WHEREOF, I have hereunto subscribed my
official signat/ure and impressed hereon the seal of said city
this .,~,~~h day of August, 1977•
_ - -,
~,,
(APF'IX)
(SEAL) .
%. ~ ( HERE )
~ '> .
~j -.
~f -
PHH:mlb
7/20/77
%/
City C1 k
-~-