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City of Missoula, Montana Item to be Referred to City Council Committee Committee: A & F Item: Bond Resolution – Date: November 5, 2009 Prepared by: Brentt Ramharter Initiated by: Brentt Ramharter Action Required: Approve final SID 544 bond resolution setting the form and details for the $2,028,090 sewer system SID revenue bonds to be financed through the State DNRC Revolving Loan Program. Recommended Motion: I move the City Council adopt a resolution relating to Special Improvement District NO. 544; authorizing the execution and delivery of $2,028,090 Special Improvement District NO. 544 Bonds (DNRC Revolving Loan Program) consisting of $29,688 A loan bond, $359,300 B Loan Bond $1,608,102 C Loan Bond, and $31,000 D Loan Bond to pay costs of improvements to the district; creating special funds and accounts for the administration of certain money derived there from and defining the terms and the manner of payment of the bonds Timeline: Referral to committee: November 5, 2009 Committee discussion: November 18, 2009 Deadline: Have council approve at the November 23, 2009 meeting Background and Alternatives Explored: The $2,028,090 of sewer system SID revenue bond financing contains very favorable terms for the benefitted residents to pay for a portion of the costs associated with the installation of sewer pipes on the west side of the Rattlesnake valley. In order to close on this bond sale and receive the bond proceeds, the City of Missoula must delineate all of the specifics concerning the issuance of these bonds by the City. This resolution is quite standard after each bond sale and has been prepared by the City's bond counsel, Dorsey Whitney. The details include where and how the city is to make its required debt payments, how the debt is secured, and items such as when the city can redeem the bonds early. ---PAGE BREAK--- Financial Implications: These bond proceeds are needed to complete the financing package developed by the City Council to construct sewer lines in the un-sewered areas of the Rattlesnake valley. The residents benefitted by this project will be assessed annually for their proportionate share of these costs, as defined in the resolution that created this SID. Attachments: Resolution