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CERTIFICATE AS TO RESOLUTION AND ADOPTINGVOTE i, the undersigned, being the duly qualified and acting recording officer of the City of Billings' Montana (the .,City',), hereby certify that the attached resolution is a true copy of a Resolution entitled: "RESOLUTION RELATING TO POOLED SPECIAL IMPROVEMENT DISTRICT BONDS, SERIES 2OO8A (SPECIAL IMPROVEMENT DISTzuCT NOS. 1378, 1379, 1380, AND 1333), IN THE ORIGINAL AGGREGATE PRINCIPAL AMOI-INT OF $1'075'000; AUTHORIZING THE PLEDGE OF THE REVOLVING FTN{D OF THE CITY TO THE BONDS ALLOCABLE TO DIsrRIcr No. 1380 AND TAKING CERTAIN AcrIoNS wITH RESPECT THERETO" (the "Resolution"), on fìle in the original records of the city in my legal custody; that the Resolution was duly adopted by the city council of the city at a regular meetrng on August 25, 2008, and that such meeting was duly held by the city council and was attended throughout by a quorum, pursuant to cail and notice of such meeting given as required by law; and that the Resolution has not as ofthe date hereofbeen amended or repealed' I further certify that, upon vote being taken on the Resolutíon at said meeting' the following city council rnembers I voted in favor thereof: Ronquillo, Gaghen, Pitman, Stevens, Veis, Ruegamer, McCall' Ulledalen' Astle' and clark ; voted against the same: abstained from voting thereon: . ",p'p ahceni' WITNESS my hand offÌcially this 25'r'day of August' 2008' Cari Martin, CitY Clerk ---PAGE BREAK--- RESOLUTION NO. 08-18747 RESOLUTION RELATING TO POOLED SPECIAL IMPROVEMENT DISTRICT BONDS, SERTES 20084 (SPECIAL MPROVEMENT DISTRICT NOS. 1378, 1379, 1380, AND 1383), IN TIIE ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $1,075,000; AUTIIORIZING THE PLEDGE OF THE REVOLVING FLIND OF THE CITY TO THE BONDS ALLOCABLE TO DISTRICT NO. 1380 AND TAKING CERTAIN ACTIONS WITH RESPECT THERETO'' BE IT RESOLVED by the City Council (the "City Council") of the City of Billings, Montana (the "City"), as follows: Section 1. Recitals. This City Council has duly and validly created and established in the City various special improvement districts, designated as Special Improvement District No. I 378 ("District No. 1378"), (ii) District No. 1379 ("District No. 1379), (iiÐ District No. 1380 ("District No. 1380"), and (iv) District No. 1383 ("District No. 1383") (individually a "District" and, collectively, the "Districts"). The Districts were established by the City for the purpose of financing costs of certain public improvements of special benefit to the properties within the Districts (the "Improvements") and paying costs incidental therero, including costs to be associated with the sale and the security of the City's Pooled Special Improvernent District Bonds, Series 20084 (Special Imþrovement District Nos. 1378, 1379, 1380 and 1383) (the "Bonds")' (ii) the creation and administration of the Districts, and (iii) funding of a deposit to the City's Special Improvement District Revolving Fund (the "Revolving Fund"). On November 13,2007, this City Council adopted Resolution No. 07-18629 (the "lntent Resolution") expressing the intention of the City to oreate District No. i380. The City published a notice of passage of the lntent Resolution to create District No, 1380 inthe Billings Times onNovember 15 and November 22,2007. On December 10, 2007, this City Council adopted Resolution No. 07-18650 (the "Formation Resolution") creating District No. 13-8Q' Both the lntent Resolution and the Formation Resolution expressed the intention of the City to issue the Bonds to finance the cost of the Improvements to District No. 1380; however, neither the lntent Resolution nor the Formation Resolution expressed the intent of the City to ptedge the Revolving Fund of the City. The City has always intended to pledge the Revolving Fund as security for the Bonds allocable to District No. 1380. The City Clerk previously published notice (the "Notice") of a public hearing (the "Hearing") relating to pledging the Revolving Fund to the Bonds allocable to District No. 1380 in substantially the form of the attached EXHIBIT A (which is hereby incorporated herein and made a part thereof), which Hearing was held on the date hereof prior to consideration of this Resolution. The Notice was published for two successive weeks prior to the Hearing on August l4 and August 21, 2008 in The Billings Times, Lhe official newspaper of the City. The public and all interested parties were allowed to testify at the public hearing and the City Council also considered any written comments submitted to the City Clerk prior to the hearing or submitted to the City Councii during the hearing. On August 1 1, 2008, this City Council adopted a resolution authorizing the public, competitive sale ofthe Bonds on September 8, 2008. Principal of and interest on the Bonds will be paid from specíal assessments levied against the propefty in the Improvements \ Section 2. Actions Relating to the Pledge of the Revolvins Fund to the Bonds Allocable to Special hnprovement District No. 13 80. The previous action taken by City employees is hereby ratified in establishing the date and time of the Hearing before the City Council as a condition to pledging the Revolving Fund to the Bonds allocable to District No. 1380. This City Corurcil ratifies the publication of the Notice inthe Bíllings Times for two successive weeks (on August 14 and August 21, 2008) prior to the Hearing. Montana Code Annotated, Section 7-12-4225 requires that the City shall consider certain specific factors prior to pledging the Revolving Fund to secure special improvement district bonds of the City. In determining to whether to pledge the Revolving Fund of the City to the Bonds allocable to Special Improvement District No. i 380, this City Council has taken into consideration the following factors: (Ð Estimated Market Value of Parcels. The special assessments to be levied against each lot, tract or parcel for the Improvements in District No. 1380, as a general matter, is insignificant in comparison to the market value of such lot, tract or parcel in the Improvement areas. ---PAGE BREAK--- (iÐ Diversity of Property Ownership. Substantially all the lots, tracts or parcels in District No. 1 380 a.e undei separæ- o*neiship. Given the diversity ofownership, it is unlikely that financial difficulties would arise that would require a loan to be made from the Revolving Fund. (iii) Comparison of Special Assessments. PropeÍv Taxes and Market Value. The estÍmated total principat amount of the assessments for District No. 1380 range from $1,052,63 to $i,502.63 on a per property basis. Given the amount of the proposed assessnrent for lmprovements in District No. 1380 and the amount of other special assessments and pioperty taxes levied against the various parcels in District No. 1380 and the respecti've market value of the parlels, if the City had to enforce the assessment lien against the properties in Diitrict No. 1380, there would bè more than sufficient value in the property to secure the obligation to the City, (iv) Delinquencies. The tax delinquency rate for properties in District No. 1380 is no gteater than the delinquency rut*f ìñ" City at large, and therefore, no unusual need for loans from the Revolving Fund are expected. ThePublicBenefltof thelmprovements. ThelmprovementsinDistrictNo. 1380areof apublic nature anj g"n".ully benefit to the community at large as well as provide a special benefit to the property owners to be assessed in District No. 1 380, and t'herefore, the use of the Revolving Fund to secure the Bonds is in the public lnterest. Passed by the city council of the city of Billings, Montana, ttLis 25th day of August, 2008' iã'sm'ffi..i¡ ûl )h art*, Õari Martin, City Clerk CITY OF BILLINGS "fu Ron Tussing, MaYor ---PAGE BREAK--- NOTICE OF PUBLIC IIEARING WITII RESPECT TO PLEDGE OF REVOLVING FUND OF THE CITY OF BILLINGS TO POOLED SPECIAL IMPROVEMENT DISTRICT BONDS RELATING TO SPECIAL IMPROVEMENT DISTRICT NO, 1380 CITY OF BILLINGS, MONTANA NOTICE IS HEREBY GIVEN that the City Council (the "Council") of the City of Billings, Montana (the "City") will meet on August 25,2008, at or after 6:30 P.M. in the Council Chambers, 2"0 Floor of the Police Facility, 220 North 27'¡' Street, Billings, Montana for the purpose of conducting a public hearing on pledging the City's Special Improvement District Revolving Fund (the "Revolving Fund") to a portion of Pooled Special Improvement District Bonds, Series 2008A (Special Improvement District Nos. 1378, 1379, 1380, and 1383), in the original aggtegate principal amount of $1,075,000 (the "Bonds"), allocable to Special Improvement District No. i380. After the Hearing, the Council will consíder adoption of a resolution relating to pledging the Revolving Fund to the portion of the Bonds allocable to Special Improvement District No. 1380 (the "Resolution"), The City will issue the Bonds in order to finance costs of certain public improvements (the "Improvements") of specral beneht to the properties within the Special Improvement District Nos. 1 378, I 379, 1380, and 1383 (collectively, the "Districts") and paying costs incidental thereto, including costs associated with the sale and the security of the Bonds, (ii) the creation and improvement of the Districts, and (iii) funding of a deposit to the Revolving Fund. Subject to the limitations of Montana Code A¡¡otated, Section 7-12-4222, the general fund of the City may be used to provide loans to the Revolving Fund or a general tax levy rnay be imposed on all taxable property in the City to meet the financial requirements of the Revolving Fund. Pursuant to the Resolution, the City Council will consider factors as to why the pledge of the Revolving Fund to the Bonds allocable to District No. 1 3 80 may be determined to be in the public interest. Further information regarding the Improvements, Revolving Fund, District No. i380, or the Bonds or qJ\er matters in respect thereof may te obtained from the City Clerk at City Hall, 210 North 27'r' Street, Billings, Montana or by telephone at (406) 657-8210. Dated: August 12,2008. BY ORDER OF THE CITY COI.INCIL OF THE CITY OF BILLINGS, MONTANA Cari Martin City Clerk Pubìish: August 14, 2008 August 21,2008