Under and pursuant to the provisions of Montana Code Annotated Title 7, Chapter 12, as amended, there is hereby created and established a special fund which shall be maintained by the City Treasurer on the official books and records of the City, separate from all other funds, to be known and designated as the special improvement district revolving fund, for the purpose of securing the prompt payment of special improvement district bonds issued in payment of cost of improvements made for the benefit of special improvement districts of the City.
(Ord. 759 § 1)
For the purpose of providing funds for the revolving fund, the
City Council may in its discretion, from time to time, transfer to
the revolving fund from the general fund of the City such amount or
amounts as may be deemed necessary, as loans from the general fund
to the revolving fund, and shall, in addition to such transfers or
in lieu thereof, levy and collect for the revolving fund such a tax
on all the taxable property within the City as shall be necessary
to meet the financial requirements of the revolving fund; provided,
that such levy, together with such transfers, shall not exceed in
any one year 5% of the principal amount of the then outstanding special
improvement district bonds of the City.
(Ord. 759 § 2)
Whenever any special improvement district bond of the City,
or any interest thereon, shall become due and payable and there shall
then be either no money or not sufficient money in the appropriate
district fund with which to pay the same, an amount sufficient to
make up the deficiency shall be loaned, by order of the Council, by
the revolving fund to such district fund and used, with the amount
then on hand in the district fund, to pay such bond and interest.
Whenever any loan is made to any special improvement district fund
from the revolving fund, the revolving fund shall have a lien therefor
on all unpaid assessments and installments of assessments on such
district, whether delinquent or not, and on all monies thereafter
coming into such district fund, to the amount of such loan, together
with interest thereon from the time it was made at the rate borne
by the bond for payment of which, or of interest thereof, such loan
was made; and whenever there shall be monies in such district fund
which are not required for payment of any bond of such district, or
of interest thereon, so much of such monies as may be necessary to
pay such loan and shall by order of the Council be transferred to
the revolving fund. After all bonds issued on any special improvement
district fund have been fully paid, all monies remaining in such district
fund shall by order of the Council be transferred to and become part
of the revolving fund.
(Ord. 759 § 3)
The City has undertaken and agreed in connection with the public
offering of its special improvement district No. 308 bonds, and does
hereby covenant, undertake and agree with the holders of these bonds
and all other special improvement district bonds to be offered at
public sale in the future, so long as any such bonds, or any interest
thereon, remain unpaid, that it will annually authorize loans or advances
from the revolving fund to each fund from which such bonds are payable
(each such fund being referred to below as the district fund), and
will provide funds for the revolving fund by annual tax levies or
loans from the general fund, in accordance with the following procedures:
A.
Separate
bond and interest accounts shall be maintained on the official books
and records of the City, within each district fund. Upon the collection
of the installment of principal and interest due November 30th in
each year on the special assessments levied and appropriated to the
district fund, the City Treasurer shall credit to the interest account
so much thereof as may be necessary to pay interest to become due
on all bonds payable from the district fund on the then next succeeding
interest payment date, and shall credit the remainder thereof to the
bond account. Any installment of any special assessment which is paid
prior to the year in which it is due, with the interest accrued thereon
to such payment date, shall be credited directly to the bond account.
B.
The interest account shall be used solely to pay the interest due at annual interest payment dates on the bonds issued against the district fund. The bond account shall be used, whenever and to the extent that funds are available therein, for the redemption of such bonds in order of their registration numbers, and the payment of interest accrued thereon to the date of redemption, in accordance with Montana Code Annotated Title 7, Chapter 12.
C.
A deficiency
shall be deemed to exist in the interest account if ever the balance
on hand therein, 15 days prior to any date on which interest is due
on the bonds payable from the district fund, is insufficient to pay
such interest in full. A deficiency shall be deemed to exist in the
bond account on any date on which there are not sufficient monies
in such account to pay all principal due on any bonds payable from
the district fund. A deficiency shall also be deemed to exist in the
bond account on any date on which interest is due on bonds payable
from the district fund, unless the City has then or theretofore redeemed
bonds in a principal amount equal to the sum of all installments of
special assessments paid prior to their due dates, plus a fraction
of the remaining principal amount of the special assessments originally
levied and appropriated to the district fund, equal to the number
of installments of such assessments then and theretofore due divided
by the total number of installments in which such special assessments
are permitted to be paid.
D.
The City
Council, not less than 15 days before the date when interest is due
on bonds payable from any district fund, shall 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 thereof, and on any principal or interest due
date shall issue an order authorizing a loan or make good any deficiency
then existing in the bond account thereof, to the extent that funds
are available in the revolving fund. In the event that the balance
on hand in the revolving fund 15 days prior to any date when interest
is due on special improvement district bonds of the City is not sufficient
to make good all deficiencies then existing in the interest accounts
of district funds, such balance shall be allocated to the district
funds in which such deficiencies then exist, in proportion to the
amounts of the respective deficiencies on that date. Any money subsequently
received in the revolving fund shall be allocated to the interest
accounts of district funds in which deficiencies exist in proportion
to the amounts of the deficiencies on the respective dates of receipt
of such money, until all interest accrued on special improvement district
bonds of the City has been paid. On any date when all such accrued
interest has been paid, any balance remaining in the revolving fund
shall be loaned or advanced to the bond accounts of district funds
in which deficiencies then exist, in amounts proportionate to the
respective amounts of such deficiencies.
E.
At the
same time as the annual levy for general taxes is certified for collection
in each year, the City Council shall make a tax levy on all the taxable
property within the City in such amount as shall be necessary, together
with any amounts therefore transferred to the revolving fund from
the General Fund, to accumulate in the revolving fund, within a period
not exceeding three years from and after the issuance of bonds for
any special improvement district, and thereafter to maintain at all
times, a balance equal to 15% of the original principal amount of
all outstanding issues of special improvement district bonds, subject
to the maximum limitation as to rate or amount of such tax. All funds
derived from such tax levy and transfers shall be irrevocably appropriated
to the revolving fund, and used only for the purposes set forth in
this article, until all special improvement district bonds of the
City and all interest thereon are fully paid.
(Ord. 759 § 4)
The balance required in Section 8-11(E) of this article to be accumulated and maintained in the revolving fund is determined to be the minimum amount necessary as a reserve for payment and redemption of maturing special improvement district bonds and interest of the City. Nothing herein shall prevent the City Council from appropriating to the revolving fund from other funds properly available therefor amounts in excess of the minimum reserve established herein, or from transferring such excess amounts to the General Fund or using such excess amounts for the purchase of property against which unpaid assessments are outstanding pursuant to Montana Code Annotated Title 7, Chapter 12; but the City expressly covenants and agrees with the holders from time to time of all of its special improvement district bonds that no such transfers or purchases will be made at any time in such manner as to reduce the reserve in the revolving fund below the amount herein agreed to be maintained. The revolving fund will be deposited in a duly qualified depository bank and secured at all times as required by Montana Code Annotated Title 7, Chapter 12, but no time deposits shall be made for a period exceeding 180 days, and the City Council is also authorized to invest all or any portion of the reserve in direct obligations of the United States government, payable within not to exceed 180 days from the time of such investment.
(Ord. 759 § 5)
A.
Enumerated:
The following shall be the standard fee schedule to be charged each
special improvement district formed by the City and same shall be
collected by the City Treasurer from the funds of the district:
1.
For
the first $50,000 or less of a district: 5% of the amount of the district
up to $50,000 [with minimum fee of $500]; or the first $50,000 thereof.
2.
For
the next $50,000 of a district: four and one-half percent (4 1/2%)
of the amount of the district above $50,000, or the next $50,000.
3.
For
the next $100,000 of a district: 4% of the amount of the district
above $100,000 or the next $100,000.
4.
For
the next $300,000 of a district: three and one-half percent (3 1/2%)
of the amount of the district above $200,000 or the next $300,000.
5.
For
all sums over $500,000 of a district: 3% of the amount of the district
above $500,000.
6.
Maximum
fee to be charged: $40,000.
B.
Additional
Charges: No other charges for services of City employees may be charged
a special improvement district; provided, however, that engineers,
architects or other professional persons not regularly employed by
the City or employed on a contractual basis on such district project,
shall not be considered as "City employees" for the purpose
of this section. Added costs of non-City employees may be charged
to the district.
(Ord. 948 §§ 1, 2)
Of the sums collected under the authority of Section 8-13 of this article, 1/2 thereof shall be deposited into the general fund. The remaining 1/2 thereof shall be deposited into the City special improvement district revolving fund as created by Ordinance 759, and used only as provided therein.
(Ord. 948 § 3)
