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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigrred, being the duly qualified and acting recording officer of the City of Billings, Montana (the City), hereby certiff that the attached resolution is a true copy of Resolution No. 08-1 8694, entitled: RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 1384; DECLARING IT TO BE THE INTENTION OF THE CITY COT]NCIL TO CREATE TIIE DISTRICT FOR THE PURPOSE OF UNDERTAKINGCERTAINLOCALIMPROVEMENTSANDFINANCINGT}TF',COSTSTIIEREOFAND INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND (the Resolution" was duly adopted by the City Council of the City at a meeting on March 24,2008, 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notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed.)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 certiff that, upon vote being taken on the Resolution at said meeting thefollowing Councilmernbers voted in favo¡ thereof: Ronquillo. Gaghen. Pif.man. Stwens. Veis. Ruegamer. McCall. Ulledalen. Astle. and Cl¿irk voted against the same: or were absent: WITNESS myhand 24th dayof March, 2008. Cari Martin, City Clerk ---PAGE BREAK--- RESOLUTION NO. 08- 1 8694 RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 1384; DECLARING IT TO BE THE INTENTION OF THE CITY COUNCIL TO CREATE THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL MPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND BE IT RESOLVED by the City Council of the City of Billings (the City), Montana, as follows: Section t, The Cityproposes to undertake cert¿in local lmprovernents (the "Improvernents") to benefit certain property located in the City. The Improvernents consist ofthe sewer construction and sewer system development fees, as more particularly described in Section 5. The costs of the tmprovements, not including bonding or administration fees, are $1,224,130.81 . It is the intention of this Council to create and establish in the City under Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amerìded, a Special lmproveme,nt District (the "Districf for the purpose of financing costs of the Improvem€,nts and payrng costs incidental thereto, including costs associated with the sale and the security of Special Improvement District bonds drawn on the Disfict (the "Bonds"), the creation and administation of the District, the funding of a deposit to the City's Special Improvønent Distict Revolving Fund (the "Revolving Fund"). The total estimated costs TheBondsare to be payable primarily from special assessments to be levied against property in the District, which property will be specially benefited by the Improvemmts. Section2. NumberofDistrict. TheDistrict,ifthesameshallbecreatedandestablished,shallbeknownand designated as Special Improvernent District No. 1384 of the City of Billings, Montana. Section 3. BoundarÍes of Distric(. The limits and boundaries of the District are depicted on a map attached as Exhibit A hereto (which is hereby incorporated herein and made a part hereof) and more particularly described on Exhibit B hereto (which is hereby incorporated herein and made a part hereof), which boundaries are designated and confirmed as the bounda¡ies of the District. A listing of each of the properties in the Disbict is shown in Exhibit E hereto (which is hereby incorporated herein and made a part hereof). Section 4, Benefited Propertv. The District and tenitory included within the limits and borurdaries described in Section 3 and as shown on Exhibits A, B, and E æe hereby declared to be the Special Improvement District and the territory which will benefit and be benefited by the Improvements and will be assessed for the costs of the lmprovements as described in Section 7, Section 5. . The general character ofthe Improvernents, as sho\an in Exhibit E, is the payrnent of sewer construction and sewer system development fees for the properties within the Yellowstone Club Estates area that a¡e connected to the privately owned and operated Yellowstone Club Estates will extend the City's sanitary sewer system into Yellowstone Country Club, intercepting the Yellowstone Club system and making it a part of the City's system. Section 6. Estimated Cost. The Public Works Deparftnent and City Engineer's Office has estimated that the costs of the Improvements, including all incidental costs, are $1,458,000.00. Section 7. Assessment Methods. 7.1, Propertv to be Assessed. All properties within the district are to be assessed for the costs of the Improvements, as specified herein. The costs of the knprovernents shall be assessed against the property in the District benefiting from the bnprovements based on the actual area methods desctibed in S ectton7 -12-41 62, M.C.A., as particularly applied and set forttt in this Section 7. ---PAGE BREAK--- 7.1.1@.AllpropertiesintheDistrictwillbeassessedfortheirproportionateshareofthecostsof the Improvements. All properties in the Distict shown on Exhibit E will be assessed for the Construction and Systems Development Fees required to hook up to the City's Sanitary Sewer System. The total estimated costs of all assessments is $ 1,458,000.00. The costs of the Improvements shall consist ofthe full cost ofthe Improve,ments assessable against each lot for atot¿lof$l,458,000,00. Thetotalof$l,45S,000.00shallbeassessedagainsteachlot,tract,orparceloflandinthe District for ttrat part of the costs of the Improvernents that the actual area of such lot, tact or parcel bears to the total actual area of all lots, tacts, or parcels of land in the Distict exclusive of streets, avenues, and alleys. The total actual area of lots to be assessed is 6,272,301square feet. The costs ofthe Improvernents and the incidental costs to be financed by the Bonds assessable to the Distict parcels per square foot ofactual area shall not exceed a total of 50.232451. The assessment for each of the parcels for the Improvønents is shown on Exhibit D. 7.2. Assessment Methodologies Fquitable and Consistent With Benefit. This Council hereby determines that the methods of assessment and the assessment of costs of the specific improvements against the properties benefited thereby as prescribed in this Section 7 are equitable in proportion to and not exceeding the special benefits derived from the respective improvements by the lots, tracts, and parcels to be assessed therefore within the Dishict. Section 8. Pavment of Assessments. The special assessme,nts for the costs of the Improvements shall be payable over a term not exceeding 1 5 years, each in equal semiannual instaltnents ofprincipal, plus interest or equal semiannual payments of principal and interest, as this Council shall prescribe in the resolution authorizing the issuance ofthe Bonds. Propely Owners have the right to prepay assessments as provided by law. Further, all owners shall have the opportunity to prepay their assessments prior to sale of the SID bonds. Sectlon 9. Method of Financine¡ Pledqe of Revolvine Fund: FindiFes and Determinations' The City will issue the Bonds in an aggregate principal amount not to exceed $1,458,000.00 in order to finance the costs of the Improvements. Principal of and interest on the Bonds will be paid from special assessments levied against the properties in the District. This Council further finds it is in the public interest, and in the best interest of the City and the District, to secure payment ofprincipal of and interest on the Bonds by the Revolving Fund and hereby authorizes the city to enter into ttre undertakings and agreements authorized in Section 7-12-4225 in respect of the Bonds' In determining to authorize such undefakings and agreernents, this Council has taken into consideration the following factors: Estimated Market Value of Parcels. The estimated market value of the lots, parcels, or tracts in the District as of the date of adoption of this resolution, as estimated, by the County Assessor for property tax purposes ranges from $80,775.00 to $3,338 ,447.00, and is set forttr in Exhibit D. The average market value is $180,690.04 wittr the median being 5164,7 67 .50. The special assessments to be levied under Section 7 against each lot, parcel, or tract in the District is less than the increase in estimated value of the lot, parcel, or tract as a result ofthe construction of the bnprovements. Diversitv of Propertv Ownershiq. There are a total of 332 parcels within the disfict boundaries. Yellowstone Country Club owns the largest parcel, covering 483,821 square feet of the Distict. All other parcels are owned by individual property owners and have an average size of 17,488 square feet' ComparÍson of Special Assèssments and Property Taxes arid Market Value. Based on an analysis of the aggregate amount of the proposed, any outstanding special assessments (whether or not delinquent), and any delinquent property taxes (as well as any known industrial development bonds theretofore issued and secured by a mortgage against a parcel in the District) against each lot, parcel, or tract in the Dishict in comparison to the estimated martet "Aue of zuCh lot, parcel, or tract after the Improvernents, the City concludes that, overall, the estimated market value of the lots, tracts, or parcels of land in the District exceeds the sum of special assessments, delinquent property taxes, and current assessments and is set forth in Exhibit D. DelÍnquencies. An analysis of the amount of delinquencies in the payment of outstanding special assessments or property taxes levied against the properties in the District shows that of 332 properties, zero propefies were delinquent, and is set forth in Exhibit F' ---PAGE BREAK--- The Public Benefit of the Improvements. The total estimated costs ofthe Improvements, not including bonding and adminisfration fees, are$1,224,130.81. The total estimated costs, including all incidental costs, to be District bonds he¡einafter described. All of the properties within the District are zoned Residential 9600. Section 10. Reimbursement Exnenditures. 10.01. Reeulations. The United States Department ofTreasuryhas promulgated final regulations goveming the use of proceeds of tax-exanpt bonds, all or a portion of which are to be used to ¡eimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section L I 50-2) (the "Regulations") require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursernent allocation made from the proceeds of the bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the "small issuer" exception from the arbitage rebate requirernent) afer the later of the date the expenditure is paid or (ii) the date the project is placed in serr¡ice or abandoned, but (unless the issue qualifies for the "small issuef' exception from the arbitrage rebate requirement) in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs ofissuance ofthe bonds. 10.02. Prior Expenditures. Other than expenditures to be paid or reimbursed from sourcçs other than the Bonds, (ii) expenditures permitted to be reimbursed under the tansitional provision contained in Section 1 .150-2(iX2) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1.150- 2(Ð(2\ of the Regulations, or (iv) expenditures in a "de minimus" amount (as defined in Section 1.150-2(f¡(l) ofthe Regulations), no expenditures for the Improvements have been paid by the Citybefore the date 60 days before the date of adoption of this resolution. 10.03. Deqlaration of Intent. The Cityreasonably expects to reimburse the expenditures made for costs of the Improve'merits out of the proceeds of Bonds in an estimated maximum aggregate principal amount of $ I ,458,000.00 after the date of payment of all or a portion of the costs of the Improvements. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Bonds o¡ other expenditures eligible for reimburserne,nt under Section Ll50-2(dX3) of the Regulations. 10.04. Budgetarv Matters. As of the date hereof there are no Cify funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or othçrwise set aside) to provide permanent financing for the expenditures related to the Improvements, other than pursuant to the issuance of the Bonds. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City's budgetary and ûnancial circumstances as they exist or are reasonably foreseeable on the date hereof. 10.05. Reimbursement Allocations. The City's financial officer shall be responsible for making the "reimbwsernent allocations" described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary financing used by the City to make priorpayment of the costs ofthe Improvements. Each allocation shall be evidence by an entry on the official books and records ofthe City maintained for the Bonds or the Improvements and shall specifically identify the actual original expenditure being reimbursed. Sectionll. Atanytimewithinfifreen(15)daysfromandafterthedateofthefirst publication of the notice of the passage and approval of this resolution, any owner of real properfy within the District subject to assessment and ta¡ration for the cost and expense of making the Improvements may make and file with the City Clerk until 5:00 p.m., M.T., on the expi¡ation date of said l5-dayperiod (April 11, 2008), v/ritten protest against the proposed Improvements, or against the extension or creation of the Diskict or both, and this Council will at its next regular meeting after the expiration of the fifteen (15) days in which such protests in writing can be made and filed, proceed to hear all such protests so made and filed; which said, regular meeting will be held on Monday the l4h day of April, 2008, at 6:30 p.m., in the Council Chambers, at 220 North 27ü Street, in Billings, Montana. Section12' NoticeofPassageofResolutionoffntention. TheCityClerkisherebyauthorizedanddirected to publish or cause to be published a copy of a notice of the passage of this resolution in the Billings Times, a ---PAGE BREAK--- newspaper of general circulation in the county on March 27 and April 3, 2008, in the form and manner prescribed by law, and to mail or cause to be mailed a copy of said notice to everyperson, firm, corporation, or the agent of such person, firm, or corporation having real properly within thç District listed in his or her name upon the last completed assessment loll for state, county, and school distict taxes, at his last-known address, on or before the same day such notice is first published. PASSEDAND City Council of the City ofBillings, Montan4 tfiis 24ü day ofMa¡ch, 2008. THE CITY OF BILLINGS BY: ATTEST: sv: L-a-hr-YLMiâ Cari Martin, City Clerk ---PAGE BREAK---