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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Billings, Montana (the City), hereby certiô/ that the attached resolution is a true copy of Resolution No. 09-18783, entitled: RESOLUTION RELATING TO SPECIAL IMPRO\TEMENT DISTRICT NO. 1384; DECLARING IT TO BE TIIE INTENTION OF THE CITY COUNCIL TO CREATE TIIE DISTRICT FOR TIIE PURPOSE OF UNDERTAKING CERTATN LOCAL IMPROVEMENTS 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 (the Resolution" was duly adopted by the City Council of the City at a meeting on January 72,2009, that the meeting was duly held by the City Council and was attended throughout by a quontm, 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notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed.)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 fr¡rther certifu that, upon vote being taken on the Resolution at said meeting, the following Councilmembers voted in favor thereof: Ronquillo. Gagùen. Pitman. Brewster. Veis. Ruegamer. McCall. Ulledalen. Clark: vqted against the same: None: or were absent: Astle . WITNESS my hand officially this 12th day of January,2009. Cari Martin City Clerk ---PAGE BREAK--- ---PAGE BREAK--- RESOLUTION NO. 09- 1 8783 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 IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVINGFUND BE IT RESOLVED by the City Council of the City of Billings (the City), Montana, as follows: Section 1. Recitals: Repeal of Resolution No. 08-18694. On March 24, 2008, the City Council of the City of Billings approved Resolution No. 08-18694, declaring it to be the City's intention to create Special Improvement District No. 1384. Changes have occurred within the District that make it necessary and desirable to repeal Resolution No. 08-18694, and to proceed anew with the creation of Special Improvement District No. I 384. Section 2. Proposed Improvements: Intention To Create District. The City proposes to undertake certain local Improvements (the "Improvements") to benefit certain property located in the City. The Improvements consist of the sewer construction fee and sewer system development fee, as more particularly described in Section 5. The costs of the Improvements, not including bonding or administration fees, are $495,000.00. It is the intention of this Council to create and establish in the City under Montana Code Annotated, Títle 7 , Chapter 12, Parts 47 and 42, as amended, a Special Improvement District (the "District") for the purpose of financing costs of the Improvements and paying costs incidental thereto, including costs associated with the sale and the security of Special Improvement District bonds drawn on the District (the "Bonds"), the creation and administration of the District, the funding of a deposit to the City's Special Improvement District Revolving Fund (the "Revolving Fyld'). The total estimated costs of the Improvements, including such incidental costs, to be financed by the Bonds are $495,000.00. The Bonds are to be payable primarily from special assessments to be levied against properfy in the District, which property will be specially benefrted by the lmprovements. Section 3. Number of District. The District, if the same shall be created and established, shall be known and designated as Special Improvement District No. 1384 of the City of Billings, Montana. Section 4. Boundaries of District. 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 boundaries of the District. A listing of each of the properties in the Dist¡ict is shown in Exhibit E hereto (which is hereby incorporated herein and made a part hereof). Section 5. Benefited Propertv. The District and territory included within the limits and boundaries described in Section 3 and as shown on Exhibits A, B, and E are hereby deciared 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 Improvements as described in Section 7. Section 6. General Character of the Improvements. The general character of the Improvements, as shown in Exhibit D, is the payment of sewer construction fee and sewer system development fee for the properties within the Yellowstone Club Estates area that were connected to the privately owned and operated Yellowstone Club Estates sanitary sewer system. W.O. 07-19, Yellowstone Country Club Sanitary Sewer Extension, funded solely by the City, will extend the City's sanitary sewer system into Yellowstone Country CIub, intercepting the Yellowstone Club system and making it a part of the City's system. Section 7. Estimated Cost. The Public Works Department and City Engrneer's Office has estimated that the costs of the Improvements, including all incidental costs, are $495,000.00. Section 8. Assessment Methods. 8.1. Propertv to be Assessed. All properties within the district are to be assessed for the costs of the Improvements, as specif,red herein. The costs of the Improvements shall be assessed against the property in the District benefiting from the Improvements based on the actual area methods described in Section 7-12-4162, M.C.A., as particularly applied and set forth in this Section 7. ft. ---PAGE BREAK--- 8.l.L Actual Area Method. Assessment #1 will be the Construction Fee plus the 4% Franchise Fee. The Construction Fee plus the 4% Franchise Fee shall be assessed against each lot in within Boundary for a total of $313,492.85. The total of 5313,492.85 shall be assessed against each lot, tract, or parcel of land within the District Boundary for that part of the costs of the Improvements that the actual area of such lot, tract or parcel bears to the total actual area of all lots, tracts, or parcels of land within the District Boundary, exclusive of streets, avenues, and alleys. The total actual area of lots to be assessed is2,245,428.00 square feet. The costs of the Construction Fee plus the 40lo Franchise Fee and the incidental costs to be financed by the Bonds assessable to the District parcels per square foot of actual area shall not exceed a total of $0.139614. The assessment for each ofthe parcels being assessed a Construction Fee plus +he 4o/o Franchise Fee is shown on Exhibit E. 8.1.2 Equal Amount Method. Assessment #2 will include the System Development Fee plus the 4% Franchise Fee fo¡ parcels with water meters. Each iot, tract, or parcel of land, with a 3/c" water meter, shall equally bear the costs of the System Development Fee plus the 4%o Franchise Fee as set forth in Part III. The total estimated cost of Assessment #2 is $i55,391.02 and shall be assessed against each lot, tract, or parcel of land within the District, with a water meter, on an equal amount basis. The costs of the System Development Fee plus the 4o/o Franchise Fee for water meter and incidental costs to be financed by the Bonds assessable to the District per parcel shall not exceed $1,305.806851. The assessment for each of the parcels being assessed a System Development Fee plus the 4o/o Franchise Fee is shown on Exhibit E. Assessment #3 will include the System Development Fee plus Ihe 4%io Franchise Fee for parcels with 1" water meters. Each lot, tract, or parcel of land, with a 1" water meter, shall equally bear the costs of the System Development Fee plus the 4Vo Franchise Fee as set forth in Part III. The total estimated cost of Assessment #3 is $26,116.14 and shall be assessed against each lot, tract, or parcel of land within the District, with a 1" water meter, on an equal amount basis. The costs of the System Development Fee plus the 4%o Franchise Fee for 1" water meter and incidental costs to be financed by the Bonds assessable to the District per parcel shall not exceed $3,264.5171. The assessment for each of the parcels being assessed a System Development Fee plus the 4o/o Franchise Fee is shown on Exhibit E. 8.2. Assessment Methodoloeies Equitable 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 District. Section 9. Payment of Assessments. The special assessments for the costs of the Improvements shall be payable over a term not exceeding 15 years, each in equal semiannual installments ofprincipal, plus interest, or equal semiannual payments of principal and interest, as this Council shall prescribe in the resolution authorizing the issuance of the Bonds. Property 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. Section 10. Method of Financins: Pledee of Revolvins Fund: Findinss and Determinations. The City will issue the Bonds in arl aggîegate principal amount not to exceed $500,000.00 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 of principal of and interest on the Bonds by the Revolving Fund and hereby authorizes the city to enter into the undertakings and agreements authorized in Section 7-12-4225 in respect ofthe Bonds. ln determining to authorize such undertakings and agreements, this Council has taken into consideration the following factors: Estimated Market Value of Parcels. The estimated market value of the lots, parcels, or hacts 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 $292,139.00, and is set forth in Exhibit E. The average market value is 5161 ,673.82 with the median being $ 159,266.00. The special assessments to be ievied 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 of the construction of the Improvements. ---PAGE BREAK--- Diversitv of Propertv Ownership. There are a total of 121 parcels within the district boundaries. All of the parcels are owned by individual property owners and have arl average size of 17,681 square feet. Comparison of Special Assessments and Properfv Taxes and Market Value. Based on an analysis of the aggregate amount of the proposed, any outstanding special assessments (whether or noi delinquent), and any delinquent property taxes (as well as any known induskial development bonds theretofore issued and secured by a mortgage against a parcel in the District) against each lot, parcel, or tract in the District in comparison to the estimated market value of such lot, parcel, or tract after the Improvements, 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 E. Delinquencies. An analysis of the amount of delinquencies in special assessments or property taxes ievied against the properties in the properties, zero properties were delinquent, and is set forth in Exhibit F. the payment of outstanding District shows that of 127 The Public Benefit of the Improvements. The total estimated costs, including all incidental costs, to be financed by the Bonds are $495,000.00. All costs of the Improvements are to be paid from the Special Improvement District bonds hereinafter described. All of the properties within the Dishict are zoned Residential 9600. Section 11. Reimbursement Expenditures. 11.01. Resulations. The United States Department of Treasury has promulgated final regulations goveming the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date ofissuance of such bonds. Those regulations (Treasury Regulations, Section I .1 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 reimbursement 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 arbihage rebate requirement) after the later of the date the expenditure is paid or (ii) the date the project is placed in service or abandoned, but (unless the issue qualifies for the "small issuer" exception from the arbifrage 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 of issuance of the bonds. 11.02. Prior Expenditures. Other than expenditures to be paid or reimbursed from sources other than the Bonds, (ii) expenditures permitted to be reimbursed under the transitional provision contained in Section 1.150-2OQ) 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(Ð(1) of the Regulations), no expenditures for the Improvements have been paid by the City before the date 60 days before the date of adoption of this resolution. 11.03. Declaration of Intent. The City reasonably expects to reimburse the expenditures made for costs of the Improvements out of the proceeds of Bonds in an estimated maximum aggregale principal amount of $495,000.00 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 or other expenditures eligible for reimbursement under Section 1 . 150-2(dX3) of the Regulations. 11.04. Budeetarv Matters. As of the date hereof, there are no City 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 otherwise 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 f,rnancial circumstances as they exist or are reasonably foreseeable on the date hereof. 11.05. Reimbursement Allocations. The City's financial officer shall be responsible for making the "reimbursement 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 prior pa)rynent of the costs of the Improvements. Each allocation shall be evidence by an fli ---PAGE BREAK--- entry on the official books and records of the City maintained for the Bonds or the Improvements and shall specifically identify the actual origrnal expenditure being reimbursed. Section 12. Public Hearine Protests. At any time within fifteen (15) days from and after the date of the first publication ofthe notice ofthe passage and approval ofthis resolution, any owner ofreal property within the Dishict subject to assessment and taxation 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 expiration date of said 15-day period (February 6,2009), written protest against the proposed Improvements, or against the extension or creation of the District or both, and this Council will at its next regular meeting after the expiration of the fifteen (i5) days in which such protesrs in writing can be made and fìled, proceed to hear all such protests so made and filed; which said, regular meeting will be held on Monday the day of February, 2009, aI6:30 p.m., in the Council Chambers, at 220 North 27tt' Street, in Billings, Montana. Section 1.3. Notice of Passase of Resolution of Intention. The City Clerk is hereby authorized and directed to publish or cause to be published a copy of a notice of the passage of this resolution in the Billings Times, a newspaper of general circulation in the county on January 22 and January 29,2009, in the form and manner prescribed by law, and to mail or cause to be mailed a copy of said notice to every person, firm, corporation, or the agent of such person, firm, or corporation having real property within the Diskict listed in his or her name upon the last completed assessment roll for state, county, and school district taxes, at his last-known address, on or before the same day such notice is first published. PASSED AND ADOPTED by the City Council of the City of Billings, Montana, this 12tr'day of JanUafV, 2009. CrTy oF Attest: BY: Cari Martin. Citv Clerk ---PAGE BREAK--- Exhibit B LEGAL DESCRIPTION SID 1384 Yellowstone Club Estates Boundary includes Yellowstone Club Estates 1" Filing, Block 1, Lots 7 and 9; Block 2, Lots 1-4, 6, 9, 11-13, 15, 19, 21, and23-25: Yellowstone Club Estates 2"d Filing, Block 3, Lots 5-6, 9,ll, L4-I5: Block 4, Lot 10; Block5, Lots 3,6-8, 114, 15, 194,204; Block6, Lots 1,7-8,L0-12, and20; BlockT, Lors 2, 4,9-lt, 154, and 21; Block 8, Lots 4, Il,13-14, 19-20; Yellowstone Club Esrares 3'd Filing, Block 9, Lots 4, 6,9, 12,16,18-19, and 21; Block 10, Lots 2,6,9,11-13, 18; Yellowstone Club Estates 4'n Filing, Block 11, Lots I and 6; Block 12, Lots 1, 2,and7: Block 13, Lot4A; Block 15, Lots 3,5, 8, and 10; Block 16, Lots 2-3, and6-7: Yellowstone CIub Estates 5'n Filing, Block 13, Lot 1A; Yellowstone Club Estates 6'r'Filing, Block 20,Lots I-3,5,7-8,13,17,L9-22,and24-27:Block21,Lots land6;Blockz2, Lors 11, 14,16,11,19, 28,and 38;Block24,Lot 3; Block25, Lors 1,5, 13, l4-L6,22,26,and 35; Block26,Lots6-7,9,I3-L4, and 16-17 excluding streets, alleys, and parks. Boundary also includes one property owner within Yellowstone Club Estates 4'n Filing, Block 13, Lots 3A,, 54, 6, 74, and 841. Said boundary containing a net area of 2,245,428 square feet. ---PAGE BREAK--- Each parcel assessed a Construction Fee of$0.1221 per square foot oflot plus 47o Franchise Fee Each palcel with a 3i4" meter ¿xsessed a System Development Fee of $1 i42.00 plus 4% Fla¡chise Fee Each parcel with a l" meter assessed a System Developrnent Fee of52,855.00 plus 4% Francirise Fee Total Square Footage in District Total Construction Fee Total F¡anchise lee on Construction Fee Subtotal Assessments Breakdown EXHIBIT C Total System Development Fee Tot¿l Franchise Fee on System Development Fee Subtotal Total construction fee plus system