Resolution - 1992 - 13 - Issuance And Sale Of Interim Warrants /In Anticipation Of The Issuance Of Its Local Improvement District 91-1 - 07/28/1992
RESOLUTION NO. /3 - if 2-
A RESOLUTION OF THE CITY OF EAGLE, ADA COUNTY, 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 91-1, FOR THE PURPOSE OF PAYING THE CONTRACTOR
AND OTHER 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
THEREON; PROVIDING COVENANTS; AND PROVIDING FOR OTHER MATTERS
RELATING THERETO
WHEREAS, by passage of Ordinance No. 188, on June 11, 1991,
the City Council (the "Council ") of the City of Eagle, Ada County,
Idaho (the "Cityll) , duly created Local Improvement District
No. 91-1 ("L.I.D. No. 91-1"), for the purpose of constructing,
reconstructing, or repairing street intersections, curbs,
sidewalks, crosswalks, and equipment for street lighting purposes,
planting of shade trees and other landscaping and constructing an
irrigation system for such trees and landscaping, together with
related improvements, and authorized the issuance of local
improvement district bonds to finance the cost thereof; and
WHEREAS, the Council 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.
WHEREFORE, the Board has heretofore, by adoption of Ordinance
No. 188, authorized the issuance of interim warrants for L.I.D.
No. 91-1 in an amount not to exceed $40,000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EAGLE, IDAHO, as follows:
Section 1: For the purpose of paying any contractor for the
cost of the improvements wi thin L. I . D. No. 91-1, or otherwise
defraying any costs of the improvements as the same become due, the
Mayor, City Treasurer, and City Clerk are hereby authorized and
directed to cause to be issued, sold, and delivered, on behalf of
the City, Inter im Warrants of L. I . D . No . 91-1 (the "Warrants"),
from time to time, 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 forty thousand dollars ($40,000);
shall be issued to West One Bank, Idaho, N.A.; shall bear interest
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at the rate of five and thirty-eight hundredths percent (5.38') per
annum from the date of issuance to the date of 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. 91-1.
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, and such Warrants shall be
subject to call and redemption at any time at the option of the
City when the proceeds of local improvement district bonds for
L.I.D. No. 91-1, or prepayment of assessments of said local
improvement district, become available. In the event of prior call
a~ rede~tion. ~e City Treas=er shall gi~ notice thereof ~
mailing a copy of a Notice of Call and Redemption by certified mail
at least ten (10) 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.
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 ~gle, shall œ si~ed ~ the ~yor, countersigned ~ ~e
City Treasurer, and attested by the City Clerk, and shall be
authenticated by the Seal of the Ci ty 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.
Section 7: The first proceeds of the prepayment of assess-
ments and the sale of Local Improvement District No. 91-1 bonds are
here~ pledged for the pa~ent and rede~tion of the ~incipal of
and interest on each Warrant issued pursuant hereto.
Section 8: The City covenants with the registered owner of
the Warrants as follows:
A. The Warrants are qualified tax-exempt obligations within
the meaning and for the purpose of Section 265 (b) (3) of the
Internal Revenue Code of 1986 (the "Code"), and the City
will not desi~ate m~e than $10,000,000, inc1udi~ the ~rrants,
as qualified tax-exempt obligations during the calendar year.
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B. None of the proceeds of the Warrants will be used
directly or indirectly (i) to make or finance loans to persons or
(ii) in any trade or business carried on by any person (other than
use as a member of the general public). For purposes of the
preceding sentence, the term "person" does not include a government
unit other than the United States or any agency or instrumentality
thereof, and the term "trade or business" means any activity
carried on by a person other than a natural person.
C. The City has general taxing powers. The Warrants are not
"private activity bonds" within the meaning of Section 141 of the
Code. 95% or more of the net proceeds of the Warrants are to be
used for the local governmental activities of the City. The City
has no subordinate bond-issuing entities. The City has not issued,
and will not issue, tax-exempt obligations in calendar years 1991
or 1992 in a face amount which exceeds $5,000,000. Accordingly,
under Section 148(f) (4) (C) of the Code, the City is not required to
pay rebates to the United States under Section 148(f) of the Code.
D. No portion of the original proceeds of the Warrants will
be invested in higher-yielding non-purpose obligations beyond a
temporary period determined as the earlier of three (3) years after
the date the Warrants are issued or the date the project is
substantially completed.
E. The City will take no action which would cause the
Warrants to become arbitrage bonds within the meaning of Section
148 of the Code.
from
F. The City will comply with the information reporting
requirements of Section 149(e) of the Code.
Section 9: This Resolution shall take effect and be in force
and after its passage aM ~r~~l.
DATED this d~ day of , 19 9 ;;;{...¡
CI Y OF EAGLE
::8 ¿¡: . ;êkQ ~ -
Mayor ~
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