2016 Montana Municipal Institute
Billings, Montana
May 5, 2016
Dorsey & Whitney LLP
Dan Semmens
(406) 721-6025
125 Bank Street, Suite 600
Missoula, MT 59802 semmens.dan@dorsey.com
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1. Type of bonds
2. Amount
3. Payable semiannually
4. Term
5. Purpose
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1. General Obligation Bonds
• Pledge of Full Faith and Credit and Taxing Powers
2. Other Types of Bonds for Elections
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• Principal amount
• Debt Limit – 2.5% of assessed value of taxable property of town or city; need to add outstanding general obligation bonds and proposed bonds
• What bonds/loans/obligations count against this debt limit?
• Cultural or recreational bonds have a different debt limit – 0.9% of assessed value of taxable property of town or city
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1. Usually January 1 st and July 1 st
• What does that mean in terms of fiscal year?
2. Usually no earlier than June 15 th or December 15 th , but have done June 1 st and December 1 st
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1. Not more than 20 years
2. Count years based on fiscal years, starting with the fiscal year beginning July 1 st of the first levy to pay the bonds
3. Redemption is generally keyed off term – unless short-term, have to be subject to redemption no later than one half the term
4. Except refunding bonds
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1.
“Purpose,” not purposes
2. Each purpose has to be started separately, together with the proposed amount of bonds for each purpose
3. What does this mean?
4. May need to think in terms of a single, coherent plan
• Capital Facilities Plan
• Deferred Maintenance
• Address growth in particular area
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1. Specific enough so voter knows what he/she is voting on
2. Not so specific that city/town paints itself into a corner
3. If you say it, you build it
4. Money left over
5. Retaining an architect
6. Can issue less, not more
7. 60-day challenge period
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1. To satisfy building codes
2. To satisfy the ADA
3. To prevent further deterioration of the building
4. Overcrowding
5. Safety
6. Health
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A: In general
• Shall the City Council of the City of Bliss, Montana
(the “City”), be authorized to sell and issue general obligation bonds of the City in one or more series in the aggregate principal amount of up to
______Thousand and No/100 Dollars ($_____), bearing interest at rates to be determined at the time of the sale, payable semiannually , during a term as to each series of bonds of not more than twenty
(20) years , for the purpose of . . .
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B: Parsing Last Slide:
1.
City Council
2.
Be authorized
3.
General obligation bonds
4.
In one or more series
5.
Principal amount
6.
Up to
7.
Rates to be determined
8.
Payable semiannually
9.
Each series of not more than 20 years
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C: Shall the City Commission (the " Commission") of the City of ________,
Montana (the “City”) be authorized to sell and issue general obligation bonds of the City in one or more series in an aggregate principal amount not to exceed ______ and No/100 Dollars ($________) for the purpose of paying the costs of designing, constructing or equipping on open-space lands trails, parks and natural areas or multi-use recreational fields and facilities , or employing such lands in the preservation or enhancement of water quality , and acquiring rights to or interests in or improving open-space lands in or near the City (such as lands for trails), to include necessary or related infrastructure for the use, enjoyment, or functioning of such lands or facilities and the operation, maintenance, repair, management, or planning of such lands or facilities ; and paying costs associated with the sale and issuance of such bonds, which bonds shall bear interest at rates to be determined by the Commission at the time of sale, payable semiannually during a term not to exceed twenty (20) years for each series of bonds?
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D: Shall the City Council (the “Council”) of the City of ________,
Montana (the “City”) be authorized to issue and sell general obligation bonds of the City in one or more series in the amount of up to ________________and No/100 Dollars
($____________), bearing interest at a rate or rates to be determined by the Council and payable during a term not to exceed twenty (20) years for the purpose of paying costs of designing, constructing and equipping a new library building in replacement of the __________ Public Library , related improvements, and costs associated with the sale and issuance of the bond; and authorizing the levy of additional mills over the City Charter limit in an amount sufficient to pay principal of and interest on the bonds ?
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E: Shall the Town Council (the “Council”) of the Town of _________,
Montana (the “Town”) be authorized to issue and sell general obligation bonds of the Town in the amount of up to ____________and No/100
Dollars ($_______), bearing interest at a rate to be determined by the
Council at a competitive sale [DO NOT SAY NOW] , payable semiannually during a term not to exceed twenty (20) years and redeemable on any date after one-half of their term, for the purpose of paying a portion of the costs of designing, constructing, equipping, and furnishing a library located in a portion of a multi-use building to be built in the Town , and paying costs associated with the sale and issuance of the bonds?
Costs of the library in excess of the proceeds of the bonds will be paid by the Town and the County of __________, Montana (the
“County”) from grants, if awarded and available, and funds on hand and available therefor. The costs of the multi-use building in addition to the costs of the library are to be paid by the County .
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G. Do not say this:
• Be it Resolved, the Town Council of the Town of Giddy,
Montana submitting to the qualified electors of the Town the question of issuing bonds for the purpose of designing, constructing, furnishing and equipping a new Multi-Event
Center, and paying costs associated with the sale and issuance of the bonds.
1.
Type of Bonds
2.
Amount of Bonds
3.
Payable Semiannually
4.
Term
5.
Purpose – (What is a multi-event center?; Where is it at?; Who does it benefit?)
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1. Bonds – money up front; Levy election – money in pieces over time
2. Bonds – capital costs; Levy election – operation, maintenance, capital costs
3. Bonds – levy against taxable property is without limitation as to rate or amount; Levy election – specified dollar amount or specified number of mills
4. Bonds – election question requirements set forth above; Levy election – question requirements (see following slide)
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1. Specific purpose
2. Either (a) specific amount of money to be raised and the approximate number of mills to be imposed; or
(b) specific number of mills to be imposed and approximate amount of money to be raised; and
(c) whether the levy is permanent or the durational limit of the levy.
3. Ballot must include the impact on a home valued at
$100,000 and at $200,000 in terms of actual dollars in additional property taxes.
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1. Do you say specific amount of money to be raised or specific number of mills?
2. Durational limit of the levy?
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1. Local government elections will be held on primary or general elections EXCEPT an election concerning funding may be held as a special election.
2. Have to call for an election 85 days before the scheduled election if a city or town.
3. Notice of election must be given 3 times no earlier than
40 days and no later than 10 days before the election.
4. Ballot certification deadline is 75 days before the election for cities and towns.
Continued…
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5. Late registration applies to all elections. Regular registration closes 30 days before the election and late registration goes through close of polls.
6. If by mail ballot, ballots are mailed 15-20 days before the election.
7. Ballots for military and overseas voters sent 45 days before the election for state and federal elections
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1. Often want to appoint an election committee or team
2. Can be ad hoc
3. Need to make sure the committee/team knows the rules about what they can say and cannot say and how public resources/funds can be used.
4. If advocating for a yes vote, should create a political action committee that is registered with the Office of
Political Practices and staff it with non-public officers/persons.
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1. We increasingly see election consultants
2. They charge a fee and conduct polling questions
3. Review poll questions before they go out
4. Watch for push polling
5. Coordinate with bond counsel
6. May want PAC to hire election consultants
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1. A public officer or public employee may not use public time, facilities, equipment, supplies, personnel or funds to solicit support for or opposition to the passage of a ballot issue unless: a. authorized by law, or b. properly incidental to another activity reserved or authorized by law
2. “Properly incidental” activities are restricted to determining the impact of passage or failure of a ballot issue on state or local government operations.
3.
Not intended to restrict a public officer’s or public employee’s right to express personal political views.
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Title 2, Part 2
1.
A person may file a complaint with commissioner of political practices.
2.
If commissioner determines there is a violation, commissioner may impose an administrative penalty of not less than $50 or more than
$1,000. Higher for state officials.
3.
Commissioner may assess costs against person bringing the charges if commissioner determines a violation did not occur or against the public officer or employee if commissioner determines a violation did occur.
4.
The county attorney can also bring an action in district court or, if county attorney declines to bring an action, person alleging a violation can do so.
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Title 13, Part 35
1. This is another avenue for seeking relief
2. A person who violates 13-35-226 is liable in a civil action
3. If a court finds that the violation probably affected the outcome of the election, the result of the election may be held void and a special election held within at least 85 days after the finding.
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1. Hansen v. Billings Elementary School District #2
(December 2013)
• The Commissioner determined that the District’s information was deliberately designed to be educational in content.
2. Juve v. Roosevelt County Commissioners (December
2014)
• The County Commissioners’ hiring of a consulting firm and publication of a fact sheet is not by itself a violation of law
• A public officer or employee can present neutral facts and information about a ballot issue
• An editorial published in the newspaper was advocacy, but it did not rise to the level of being a material violation given the mix of facts and circumstances
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Thank you!
Dan Semmens semmens.dan@dorsey.com
Dorsey & Whitney LLP
(406) 721-6025
125 Bank Street, Suite 600
Missoula, MT 59802
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