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RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 BONDS (JACK MOUNTAIN ESTATES) E) ORSEY" DAN SEMMENS sommens.dan@dorsey.com March 14, 2016 Ms. Bonnie Ramey Jefferson County P.O. Box H Boulder, Montana 59632 RE: $339,750 Rural Special Improvement District No. 2510 Bonds Jefferson County; Montana Dear Bonnie: Enclosed please find Jefferson County's comb bound transcript of proceedings regarding the above-referenced bond issue. We enjoyed working with you on this financing. Very truly yours, Dan Semmens DPS/dg Enclosure DORSEY & WHITNEY LLP • WVVV .DORSEY.COM T 406.721.6025 F 406,543.0863 MILLENNIUM BUILDING • 125 BANK STREET• SUITE 660 • MISSOULA. MONTANA 59802-4407 USA CANADA EUFCti`r_ ASI4-?ACLFIC: $339,750 Rural Special Improvement District No. 2510 Bonds ' Jefferson County, Montana Transcript Index Date of Bond Closing: November 17, 2015 Issuer: Jefferson County, Montana Governing Body: Board of County Commissioners Chair: Bob Mullen County Clerk and Recorder: Bonnie Ramey County Treasurer: Terri Kunz Purchaser: Montana City Bank Registrar: Jefferson County Treasurer Bond Counsel: Dorsey & Whitney LLP Creation Documents Relating to Rural Special Improvement District No. 2510 ' 1. Plat of special improvement district No. 2510 ' 2. Resolution No. 18-2014, Resolution Relating to Rural Special Improvement District No. 2510 (Jack Mountain Estates) and Rural Special Improvement Maintenance District No. 2509M; Declaring It to be the Intention of the Board of County Commissioners to Create District No. 2510 for the Purpose of Undertaking Certain Local Improvements and Financing the Costs Thereof and Incidental Thereto Through the Issuance of Rural. Special Improvement District Bonds Secured by the County's Rural Special ' Improvement District Revolving Fund and District No. 2509M for the Purpose of Maintaining Certain of the Improvements 3. Minutes of Board of County Commissioners July 22, 2014 meeting evidencing a Public Hearing on the Proposed Rural Special Improvement District No. 2510 ' 4. Resolution No. 24-2014, Resolution Relating to Rural Special Improvement District No. 2510 (Jack Mountain Estates); Creating the District for the Purpose of Undertaking Certain Local Improvements and Financing the Costs Thereof and Incidental Thereto Through the Issuance of Rural Special Improvement District Bonds Secured by the County's Rural Special Improvement District Revolving Fund and Creating District No. 2509M for the Purpose of Maintaining Certain of the Improvements ' 5. Bid Tab 1 Resolutions 6. Resolution No. 25-2015, Resolution Relating to Up to $339,750 Rural Special Improvement District No. 2510 Bonds; Preliminarily Authorizing the Issuance and Private Negotiated Sale Thereof and Authorizing the Process for Selecting a Purchaser Thereof; and Authorizing the Pledge of the Revolving Fund to the Security Thereof and Related Matters ' 7. Bond Purchase Agreement 8. Resolution No. 29-2015, Resolution Relating to $339,750 Rural Special Improvement District No. 2510 Bonds; Fixing the Form and Details and Providing for the Execution and Delivery Thereof and Security Therefor Closing Documents 9. Certificate showing due execution of construction contract ' 10. Certificate as to Organization 11. Affidavit as to Signatures of Officers 12. Officers' Certificate ' 13. County Treasurer's Certificate and Receipt 14. Certificate of Bond Registrar 15. Certificate and Receipt of Purchaser 16. IRS Form 8038-G 17. Specimen Bond with Debt Service Schedule 18. Opinion of Bond Counsel ' 19. Resolution No. 11-2007 adopted on May 8, 2007, establishing revolving fund 1 ' 2 1 1 1 GL UAL 11�� ° ppo I � I I,r g BngY1D0Dnga I = 5°pG p t U v JACKSON CREEK ROAD RSIDIRMD BOUNDARY r / U x � i � • � Eft\OG x i,. EAR Ci IIA _ pE0.D HOWARD OFFR rsu F � Cf Cqf \ III / J 4 � xe rvi c n I .F I Jackson Creek Road RSID/RMD Jefferson County,Montana N w r ff o u a eoa 1 20 e p� GmFW st f SLNS JACK MOUNTAIN ESTATBS RSIDIRMD BOUNDARY i I ! o: ! ooN4RE q�0a EAR LT .,.'n �� i NN � HOWARU HEE0.RR a R .\ FF -� A N D0. - Jack Mountain Estates RSIDIRMD Jefferson County,Montana N I u, ,o, A 1 ' CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE ' 1, the undersigned,being the duly qualified and acting recording officer of Jefferson County, Montana(the"County"), hereby certify that the attached resolution is a true ' copy of Resolution No. 18-2014, entitled: "RESOLUTION RELATING TO RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 (JACK MOUNTAIN ESTATES) AND RURAL SPECIAL IMPROVEMENT MAINTENANCE DISTRICT NO. 2509M; DECLARING IT TO ' BE THE INTENTION OF THE BOARD OF COUNTY COMMISSIONERS TO CREATE DISTRICT NO. 2510 FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF RURAL SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE COUNTY'S RURAL SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND DISTRICT NO. 2509M FOR THE PURPOSE OF MAINTAINING THE IMPROVEMENTS" (the "Resolution"), on file in the original records of the County in my legal custody; that the Resolution was duly adopted by the Board of County Commissioners of the County at a meeting on June 10, 2014, and that the meeting was duly held by the Board of County Commissioners 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 certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: voted against the same: abstained from voting thereon: or were absent: WITNESS my hand officially this day of 91Q 2014. County Clerk and R order RESOLUTION NO. 18-2014 RESOLUTION RELATING TO RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 (JACK MOUNTAIN ' ESTATES) AND RURAL SPECIAL IMPROVEMENT MAINTENANCE DISTRICT NO. 2509M; DECLARING IT TO BE THE INTENTION OF THE BOARD OF COUNTY COMMISSIONERS TO CREATE DISTRICT NO. 2510 FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF RURAL SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE COUNTY'S RURAL SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND DISTRICT NO. 2509M FOR THE PURPOSE OF MAINTAINING THE IMPROVEMENTS BE IT RESOLVED by the Board of County Commissioners (the `Board") of Jefferson County(the"County"), Montana, as follows: ' Section 1. Proposed Improvements; Intention To Create Districts. The County proposes to undertake certain local improvements (the"Improvements") to benefit certain property located in the County. The Improvements consist of design, engineering, and construction of road upgrades, including grading and shaping of road section, installing drainage structures where necessary, adding crushed base course gravel where necessary to reestablish the road section, and installing a double shot chip seal driving surface on Owl Court, Elk Drive, Eagle View Drive, Cougar Court, Bobcat Court, Bear Court, Antelope Court, Moose Drive, Ptarmigan Court, and Grouse Court within the Jack Mountain Estates Subdivision (the "Jack Mountain Road Improvements") and Jackson Creek Road (the"Jackson Creek Road Improvements"), all in Jefferson County. The total length of the Jack Mountain Road Improvements is approximately 1.6 miles, and the finished road width will be approximately 24 ' feet. The total length of the Jackson Creek Road Improvements is approximately 0.85 miles, and the finished road width will be approximately 24 feet. The total estimated costs of the Improvements, including engineering and contingency and related administrative costs, is ' $535,345 ($372,835 in respect of the Jack Mountain Road Improvements and $162,510 for the Jackson Road Improvements). The costs of the Improvements are to be paid from the rural special improvement district bonds hereinafter described in an estimated total principal amount ' of$535,345. It is the intention of this Board to create and establish in the County under Montana Code Annotated, Title 7, Chapter 12,Part 21, as amended (the"Act'), a rural special improvement district (the"District") for the purpose of financing all costs of the Improvements and paying costs incidental thereto, including costs associated with the sale and the security of ' rural special improvement district bonds drawn on the District (the "Bonds"),the creation and administration of the District, the funding of a deposit to the County's Rural Special Improvement District Revolving Fund (the "Revolving Fund"), and the funding of a reserve account securing the Bonds in the District fund(the "Reserve Account"). The total estimated 1 ' costs of the Improvements, including such incidental costs,to be financed by the Bonds are ' $535,345. The Bonds are to be payable primarily from special assessments to be levied against property in the District, which property will be specially benefitted by the Improvements in an amount not less than $535,345. It is also the intention of this Board to create and establish in the County under the Act, a rural special improvement maintenance district (the"Maintenance District') for the purpose of maintaining the Jack Mountain Road Improvements. ' Section 2. Number of District. The District, if the same shall be created and established, shall be known and designated as Rural Special Improvement District No. 2510 of Jefferson County, Montana. If the District shall be created and established, simultaneously ' therewith the Maintenance District shall be created and established and shall be known as Rural Special Improvement Maintenance District No. 2509-M of Jefferson County, Montana. Section 3. Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit Al hereto (which is hereby incorporated herein and made a part hereof). The limits and boundaries of the Jack Mountain Estates Subarea (as defined below) are depicted on a map attached as Exhibit A2 hereto. Such limits and boundaries are designated and confirmed as the boundaries of the District and the Jack Mountain Estates Subarea, respectively. The limits and boundaries of the District and the Jack Mountain Estates ' Subarea contain the lots, tracts and parcels described on Exhibit B hereto (which is hereby incorporated herein and made a part hereof). ' Section 4. Extended District - Benefitted Property. The District and territory included within the said limits and boundaries described in Section 3 and as shown on Exhibits A and B are hereby declared to be the District and the territory which will benefit and be benefitted by the Project. The property included within the limits and boundaries of the District and the Jack Mountain Estates Subarea, whether or not abutting all of the Improvements, is benefitted by the Improvements and the Jack Mountain Road Improvements,respectively, which are of more than local or ordinary benefit, and is hereby declared to be the property which will be assessed and taxed for the costs of the Project as described herein. ' Section 5. General Character of the Improvements. The Jack Mountain Road Improvements consist of grading & shaping of road section, installing drainage structures where necessary, adding crushed base course gravel where necessary to reestablish the road section, ' and installing a double shot chip seal driving surface on Owl Court, Elk Drive, Eagle View Drive, Cougar Court, Bobcat Court, Bear Court, Antelope Court, Moose Drive, Ptarmigan Court, and Grouse Court within the Jack Mountain Estates Subdivision in Jefferson County. The total length of the improvements is approximately 1.6 miles. The finished road width will be approximately 24 feet. Jackson Creek Road in Jefferson County will be improved in a similar manner extending from Moonlight Ridge Road through the south boundary of Jack Mountain ' Estates. The total length of Jackson Creek Road to be improved is approximately 0.85 miles. The finished road width will be approximately 24 feet. Jackson Creek Road and the interior roads of Jack Mountain Estates subdivision are existing gravel roads that have gravel and ' drainage structures deemed adequate by the Engineer in most areas. Specific areas may require drainage improvements and gravel placement in order to properly establish the road section prior to chip sealing. ' 2 ' Section 6. Engineer and Estimated Cost. Great West Engineering, of Helena, ' Montana (the"Engineer"), shall be the engineer for the District. The Engineer has estimated that the cost of the Improvements, including all incidental costs, is $535,345, as shown in Exhibit C. ' Section 7. Assessment Methods. 7.1. Property To Be Assessed. All properties within the District are to be ' assessed for a portion of the costs of the Improvements. as specified herein. The costs of the Improvements shall be assessed against the property in the District benefitting from the Improvements,based on the equal method of assessment described in Section 7-12-2151, M.C.A., as particularly applied and set forth in this Section 7. 7.2. Equal Assessments. The total estimated cost of the Improvements and costs incidental thereto is $535,345. The total estimated cost of the Jackson Creek Road Improvements and costs incidental thereto is $162,510 and pursuant to Section 7-12-2151(d), M.C.A. shall be assessed equally against each lot, tract or parcel of land in the District benefitted by the Improvements. The total estimated cost of the Jack Mountain Road Improvements and costs incidental thereto is 5372,835 and pursuant to Section 7-12-2151(d), M.C.A. shall be assessed equally against each lot, tract or parcel of land in the District benefitted by the ' Improvements (such lots, tracts or parcels collectively known as the "Jack Mountain Estates Subarea"). Each lot, tract or parcel in the District benefitting from the Improvements and to be assessed is shown on Exhibit B. There are 54 lots to be assessed for the Improvements. The ' costs of the Jack Mountain Road Improvements per lot, tract or parcel to be assessed in the Jack Mountain Estates Subarea shall not exceed $7,457. The costs of the Jackson Creek Road Improvements per lot, tract or parcel to be assessed shall not exceed $3,009. if an increase ' occurs in the number of benefited lots, tracts, or parcels within the boundaries of the District or the Jack Mountain Estates Subarea during the term of the Bonds, the assessment per lot, tract, or parcel then in the district will be recalculated as provided in 7-12-2151(4), M.C.A. From and after creation of the District the lien of the special assessments to pay or finance the costs of the Improvements and incidental costs is not extinguished or diminished by the combination or consolidation of multiple lots into fewer lots; accordingly, the area consisting of the combined or consolidated lot or lots will be assessed in an amount equal to the amount it would have been assessed had the combination or consolidation of lots not occurred. 7.3. Assessment Methodology quitable and Consistent with Benefit. This Board hereby determines that the method of assessment and the assessment of costs of the specific Improvements against the properties benefited thereby as prescribed in this Section 7 are equitable and in proportion to and not exceeding the special benefits derived from the respective Improvements by the lots, tracts and parcels to be assessed therefor within the District. Section 8. Payment of Assessments for Repayment of Bonds. The special assessments for the costs of the Improvements and costs incidental thereto shall be payable over ' a tern not exceeding 20 years, each in equal semiannual installments of principal, plus interest as allowed by law, or equal semiannual payments of principal and interest as allowed by law, as this Board shall prescribe in the resolution authorizing the issuance of the Bonds. Property owners ' have the right to prepay assessments as provided by law. The estimated total principal amount of ' 3 ' special assessments for undertaking the Improvements against properties in the District are shown on the attached Exhibit C. In the event the District is created and the Bonds issued, the special assessments levied against property in the District will be stated as semiannual installments of principal and interest. Assessments for maintenance of the Jack Mountain Road ' Improvements are described below in Section 10. Section 9. Method of Financing; Pledge of Revolving Fund; Findings and Determinations. The County will issue the Bonds in an aggregate principal amount not to exceed $535,345 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 property in the District and such payment will be secured, in part, by the Reserve Account. This Board further finds it is in the public interest, and in the best interest of the County and the District, to secure payment of principal of and interest on the Bonds by the Revolving Fund and hereby authorizes the County to enter into the undertakings and agreements authorized in Section 7-12-2185 in respect of the Bonds. ' In determining to authorize such undertakings and agreements, this Board has taken into consideration the following factors: (a) Estimated Market Value of Parcels. The estimated market value of the lots, parcels or tracts in the District as of August 2013, as estimated by the Montana Department of Revenue(the"DOR") (the appraiser for property tax purposes), is set forth in Exhibit B hereto, ' with unimproved lots having a taxable market value between S52 and $65,309 and improved lots having a taxable market value between $162,212 and $665,060. The special assessments to be levied against each lot, parcel or tract in the District, as calculated under Section 7, are less than the increase in estimated market value of the lot,parcel or tract as a result of the construction of the Improvements. Approximately 59%of lots are not developed and have an assessed market value significantly less than the amount of the proposed assessments. That is due in part to the ' fact that significant amounts of the undeveloped land is classified as agricultural land and as such has a very favorable rate of taxation. ' (b) Diversity of Property Ownership. There are 54 assessable lots, tracts and parcels in the District, of which 27 are under individual ownership. Multiple lot ownership accounts for 46% of the District property. There are 32 undeveloped lots in the District. The ' property ownership of the properties within the District's boundaries from the County's property ownership records as of February 3, 2014 is shown on Exhibit B. (c) Comparison of Special Assessments and Property Taxes and Market Value. Information showing proposed special assessments and market value information is shown in Exhibit B. The County is not aware of any special assessments currently levied against properties in the District. The total taxable value of all the lots, tracts or parcels in the District as shown on the assessment rolls of the DOR as of the date of adoption of this resolution is approximately $7,079,766. The assessed value of the undeveloped platted lots ranges from $52 to $65,309. Of the 54 assessable lots, tracts and parcels in the District, 28 have an estimated market value ascribed by the DOR that is less than the total estimated principal amount of the assessment against each lot, parcel or tract. Nevertheless, the County believes that the actual ' 4 ' market value, as opposed to the taxable value, is in excess of the amount to be assessed against ' such parcels.] (d) Delinquencies. As of the date hereof, of the 54 parcels, none have tax ' delinquencies. (e) The Public Benefit of the Improvements. The District will result in the improvement of 2.45 miles of roads in the County. The improving of public roads in the County is of benefit to County residents as well as of special benefit to the District. (0 Characteristics of Jack Mountain Estates. As indicated in Section 9(b) hereof, ' undeveloped lots accounts for approximately 59% of the total assessments. The County recognizes the risks of timely payment of assessments associated with undeveloped lots being ' included in a rural special improvement district. The County is of the view that given the potential value of land after the Improvements are constructed, the demand for land in the District for residential and commercial use, and the announced plans of some owners of ' Undeveloped Property, the risks to the Revolving Fund and the County's obligation to the Revolving Fund are warranted given the importance of the Improvements. Section 10. Maintenance District. If the District is created, it is the intent of this Board to create simultaneously the Maintenance District for the purpose of assessing the costs of maintaining, preserving or repairing the Jack Mountain Road Improvements in accordance with ' the provisions of Sections 7-12-2161 through 7-12-2163, M.C.A. Maintenance will include but is not limited to chip sealing, snow removal and sanding, minor drainage improvements, and minor repairs needed to preserve the road improvements. The boundaries of the Maintenance ' District shall be coterminous with the Jack Mountain Estates Subarea. Maintenance of the Jack Mountain Road Improvements will be assessed on an equal lot basis for the lots located in the Jack Mountain Estates Subarea. As set forth on the attached Exhibit C,the total estimated annual non-labor costs of the maintenance of the Jack Mountain Road Improvements per lot, tract, and parcel in the Jack Mountain Estates Subarea is estimated to be $658 for the first year. Each year the County will determine the annual costs for the maintenance of the Jack Mountain Road Improvements and may adjust the annual maintenance assessment in accordance with Section 7-12-2126, M.C.A., after a public hearing. Maintenance of the Jackson Creek Road Improvements will be performed by the County, and no maintenance costs will be specially assessed against the properties in the District in respect of the Jackson Creek Road Improvements. Section 11. Reimbursement Expenditures. 1 l.1. Regulations. The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the County for project expenditures paid by the County prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations")require that the County 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 ' 5 bond issue qualifies for the "small issuer" exception from the arbitrage rebate requirement) after the later of(i) 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 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 of issuance of the bonds. ' 11.2. Prior Expenditures. Other than (i) expenditures to be paid or reimbursed from sources other than the Bonds, (ii) expenditures constituting preliminary expenditures within the meaning of Section l.150-2(f)(2) of the Regulations, or(iii) expenditures in a "de minimus" amount(as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures for the Improvements have been paid by the County before the date 60 days before the date of adoption of this resolution. 11.3. Declaration of Intent. The County reasonably expects to reimburse the expenditures made for costs of the Improvements out of the proceeds of Bonds in an estimated maximum aggregate principal amount of$535,345 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(d)(3) of the Regulations. 11.4. BudgetarV Matters. As of the date hereof, there are no County 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 County's budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. ' 11.5. Reimbursement Allocations. The County Treasurer 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 County to make prior payment of the costs of the Improvements. Each allocation shall be evidenced by an entry on the official books and records of the County ' maintained for the Bonds or the Improvements and shall specifically identify the actual original expenditure being reimbursed. ' Section 12. Public Hearing; Protests. At any time within thirty-two (32) days from and after the date of the first publication of the notice of the passage and approval of this resolution, any owner of real property within the District subject to assessment and taxation for the cost and expense of making the Improvements may make and file with the County Clerk and Recorder(until 5:00 p.m., M.T. on July 21, 2014, the expiration date of such protest period), written protest against the proposed Improvements, or against the creation of the District or both. ' Such protest must be in writing, identify the property in the District owned by the protestor and be signed by all owners of the property. The protest must be delivered to the County Clerk and Recorder, who shall endorse thereon the date of its receipt. For purposes of calculating protests under Section 7-12-4113, M.C.A., the sufficiency or insufficiency of protests,if any, shall be ' 6 ' based on the estimated cost of the assessments against the properties owned by the protestors in ' the District as compared to the total estimated cost of the assessments against all properties in the District. This Board will, at its next regular meeting after the expiration of the period in which such protests in writing can be made and filed, proceed to hear all such protests so made and ' filed. Such regular meeting will be held on Tuesday July 22, 2014 at 2:00 p.m., in the Jefferson County Courthouse at 201 Centennial, Boulder, Montana 59632. ' Section 13. Notice of Passase of Resolution of Intention. The County Attorney 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 Jefferson County Courier, Whitehall Ledger and the Independent ' Record, newspapers of general circulation in the County on June 18, 2014 and June 25, 2014, 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 District 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 Board of County Commissioners of Jefferson County, Montana, this 10th day of June, 2014. � 1 ' air of the Board of County Commissioners Attest: County Clerk and Recorder 7 EXHIBIT Al ' MAP OF THE DISTRICT 1 ' A-1 O 2 a: W GreatWest o p0 + engineering s J_ �5° )PC I sU"$Er /F W R JACKSON CREEK ROAD RSID/RMD BOUNDARY EExssr.ERENCER MIm e " uiA:e:P ,•—EA WwRExu�w TPo,S. MOO , W 0. VM "r G` .,.CO°EUNEP N RE P1°O RO EAR CT eEiLEEx, xuL.RE w,XLCrceary Le sTPCwL ucrc MOw Euia,." .L I o�xaoxo � *a°a* �N ' CY,50N CR��K 0.O HOWARD BEER RC : u 0, P Rcou auE� 00 e"Veso .,ncouiwe`n"OSE R mEcEn e qv a IEwJ6 SC JPwueuNE" a �XXa°x iORXE yGP Re TERESPL <t. ALORIA xmsoN Ro o°Ei: we ANie jU O ry I�pe NCOUEUNE" ° QUE NE VELIIEP p,R1ER NDa .fix WR�ERR.�NE MREReQV JPMF9 6MIGXEIIE EA4LE NEW UPoVE LLC C4VEV LPW UEYUEn" J.'..'E-EAP 6J NDµEL" Jackson Creek Road RSID/RMD o Jefferson County, Montana a W N a, I o A Y c 0 800 1,200 Feet Ma Det 0112,2014 tEXHIBIT A2 ' MAP OF THE JACK MOUNTAIN ESTATES SUBAREA ' A-2 o rc N C G`VNV E EWV O �Q engineeringx J a° LJ z G�SG �P I SUNSET /ER. R �N Vp1 JACK MOUNTAIN ESTAT S RSIDIRMD BOUNDARY MRREN UVNTE TRUST XENNE ao mNEAELn rTE<xEXCEC MOON aE atOG nl M ncouFL«E P" 10CxsOX KYLE s V W OR N"TON T a INTI COeuuEA EpGt'E w.CSEEn O EAR CT N."L NIFEx, BAKLOaEOOnr a sTAOIAL ,E�,"X�TEE cA..Em Ll.... RAFFIRLITIE aEEKa� 0—.1 RO uEL ilEawT )POKSON` HOWARO BEER RD _ °r r E �ME� _ NT MARYTRUITT oNEL eN o CAMEL En TMC..CCE ONML MOOSE a JACQUELINER .esE ° .b.X .lMR spy �IASOA,AmUEUNEn" NoX�«c nL reRTINAI `F�F aiCN.A 4'O wuONIP OMSON eNENXE ua µE9: Ix FRONTIER MI-TER ON JAEES ElA ANICNELLE XTINTION gxl EaGE VIEW ONVE LLC .bN90X .IA000WHEn e.IAtaUEUxEAA a!A[OUEUMEA NUEU" Jack Mountain Estates RSIDIRMD Jefferson County,Montana N O A N 0 o Boo 1,200 t Feet -- Ma Oal : ril 12,2014 EXHIBIT B ' LEGAL DESCRIPTION AND LISTING OF PROPERTIES IN THE DISTRICT ' B-1 Jackson Creek Road RSIDIRMD and Jack Mountain Estates RSIDIRMO Parcel Owners EXHIBIT B Owner Estimated Initial Estimated Maximum Estimated Maximum Annual Principal r IGcocoda State Code Legal Description Value Unimproved forJackMountain for Jackson Creek Maximum Principal Maintenance of Jack Improvements Road Improvements Assessment Amount Mountain Improvements PMet*yCwKed Parole wllkN 6»Jaclmon Creek Road R mu One 511]%21101 010 0 0 0 DAHL GREGORY LB 110MOONLIGHTRIDGE CLANCY MT 5%349)21 SxT Tw N.Rmw.MFE61xdN.mACTwxx LnW eaEn[Ca $8,519.00 Vacant % $3,009 331009 EO STACK ftD 2+macmxAlEee MmNO CUn1a 51178 5 21 201 010 0 0 0 WARREN LIVING TRUST POBOX50186 SPARKS NV 89435-0188 .1,TON,Rm w,C O 8.IIISSS a.vANCFLa,N 10..21 $3,19100 Vacant $0 $3,W9 $3,009 $0 511]8521203010000 SCHUELE THEODORE 291 JACKSON CREEK RD LLANCY MT 588349721 azT.rmN9m w.ACmse,Trucrm GLmzPEaxm PoSS 5430.00 Vacant % %,009 sE,009 % 51178521301250000 WARREN LIVING TRUST POSDX50186 SPARKS I NV Bgg3$.018a yr rmx.Rmw,ACRE609.GLm2,aOG9JACKSCN EKROAp. $52.00 VxCard % $3,009 $3.00• $0 LmSiM[i fEPaKm Po52 PArmehAOwnM PaOse wa eIn she Jackson Creak ROW RSIDINMD ale JeO,Mountain Estates RSIDANMD IJeok MoOnoln SKSI 511]0520102100000 JOHNSON DANIEL A& 1 JACKSON CREEK RD. MONTANA CITY MT 5%34-9]14 ACK WVNTAN ESTAES,Sm,max,cas w.Lin..ACRN Nm cos $270.% V.rA $7,457 $3,%9 $101480 $858 JACOUELINEA PMB 2082 210NNIKS 51170521102150000 JOHNSON DANIEL A& 1 JACKSON CREEK RD. MONTANA CITY MT 5116 -9714 JACK WWfAIN ESTATES,5101 roux,Rm w,w4s,ACRCS Sn,cas $391.00 Vacant $1.45] $3,009 $1010% 5858 JACQUELINE PMB 2%2 21a6YfB1® 511]85201021]0000 JOHNSON DANIEL A& 1 JACKSON CREEK RD. MONTANA CITY MT 59834-9714 "MOUxTAO CSrAMS,nOma N,eoz w.Ia 1'ACKSS I d COS S6000 VewM $7,457 $3,009 310A8a 51158 JACOUELINEA PMB 2%2 2NMSReim JOHNSON DANIEL A& 1 JACKSON CREEK RD. .woLLwxrAwasrAms.sm�N.rm3w.Lmm,AVaaxm,cos 511]852010229(1000 JACOUELINEA Plea 2062 MONTANA CITY MT 5%349]14 $152.00 Vacant $],45] $3,009 $1010% %58 JOHNSONDANIELA& 1 JACKSON CREEK RD. JACKNOUmANEVATES,sm.Ta9x1M3w.Lasr AOaa x07,cce 51178520102310000 JACOUELINEA PMB 262 MONTANA CITY MT 58631-9]16 $153.00 Vacant $],457 $3,009 $ID,460 1616 JOHNSON DANIEL A& 1 JACKSON CREEK RD. JACK UOUx CsTATCS,axe.IN.,l.w,LN.Avers zn.COS 5117&520102330000 JACQUELINE PMB 2162 MONTANA CITY MT 5%348716 :TwTm calm $129.00 Ve[ent $],457 $3,009 $10,480 $850 51178520102390000 JOHNSON DANIEL A B 1 JACKSON CREEK RD. MONTANA CITY AT 5%349]14 JA[K l4awrAw muTE8.8W.Tapx.m9w.LNn.ACataxm.cos $140.00 VNNOt $],451 $3,009 $10,486 $050 JACQUELINE PMB 2002 LImmF9Tm 51178520102410000 JOHNSON DANIEL A& I JACKSON CREEK RD. MONTANACITY MT 5%34-9714 JA[KxW SIWATE8.Sm.MKRmw.LN46.A 82,N.WS $153.00 V.M $7.457 $3.009 310,468 $650 JACQUELINE PMB 2062 xJNNRmm 51178520101850000 JOHNSON JOHN W B JON] pB EAGLE VIEW DR CLANCY MT 5%349221 JACK AxNTAIN ESTATES.SM,TO x,Rm w,Lm 43,ACRES 10 24,cos $472352.00 I.WWOI $7,457 $31009 3%A66 %58 N.I.I. 51178SM10237WW JOHNSON SCOTT VB 101 WKATINA CT BO MAN MT 59716E626 JACK NOQNTAIN ESTATES,Sm,TO x."10 w,w 49,ACRES x m,cos $13200 Vacam $7.457 $3,009 $10,4% %58 WINDY Negro qlm 5117852010113 0 0 0 0 MARINO JOSEPH RB ]EAGLE VIEW DR CLANCY MT 59034-9221 JACK LCl4Nf"IN ESrAms.520®�,1Mrv,WIS,ncrosxTe,cos $251,909.00 Improved 52457 $3,009 3101466 658 EILEEN J 511785=10111000 MCIAIN MICHAEL BEAGLE VIEW DR CLANCY MT 5%30.9221 JACK NOwruN ESTATES,M.TO e.®w,W 21.wCOS rte,cas $351,1%.0 Improved $7,457 $3,009 $10,166 %59 ANDREW JR&KATHRYN 511]85201022]0000 MONDLOCH MICHAEL C& 1GROLlSE CT CLANCY &4T 5%3413224 JACK"'m ESrAM 8x0 mein ON w.LN e.ACPES2.11 COS $419989.00 I.MWd $7,451 $3,009 $10A% $658 LORI Nmmcmm MUIS MICHAEL G& JACK WIINTAm$5710105.sxp.T9a x.mSw,LNNA,ACms 3M,cas 51178520101090000 KATHLEEN L REVOCABLE 11 EAGLE VIEW DR CLANCY MT SNOW9221 20.11NNC4m $2]2.]71.00 ImMoxf $7.457 $3,009 $10A% use TRUST 511785MJO131WM NAMSUSANMARLENE 4EAGLE VIEW DR CLANCY MT 59834-9221 l NOANTAI"ESTATES.=..TO x,Rm w,LO 15,ACRES I.Wa $197,]25.00 Impro W $7,457 $3.009 $10,466 1658 NmMC01W 51985201012300% ONEILL J ANDREW& ggNTELOPE CT LLANCY MT 5%349220 JACK NOONTAINESTATES,=O.TO x,Rm w,W q ACRES x t2,COS ,$284,55].00 Im mvW $7.457 $3,009 $10,468 %58 DONNA M 2188N.I. 0 51178 5 2 0102 2IMM PATTERSON JAMESB 2pTARMIGAN CT CLANCY MT 59030.9223 JACA NOUNTAINESTATSS,sea max,Rm w,W 3,ACms I IS cos $213,4%.00 ImOmvW $7,45] $3,009 $10,408 1616 MICHELLE 2lwm7mm 51170520101400000 REED MICHAEL R& 12 EAGLE VIEW DR CLANCY MT 59830.9221 JACKNO.JNTA1N ESTAms,sm.rwx.Rmw,Lnx9.ACRES 3ze,cas $344,325.00 ImOmvW $7,457 %,009 $10,408 1616 DOTTIE M xlNSI 51170 5 2 0101210 0% SPENCER.JAMES 2ANTELOPE CT CLANCY MT 59630.9220 JA[K a 13UNTAw ERTAm S=N,Rm w,w 9.ACRxs 2]4.COs Name calm $218,293.00 ImpmvW $7,457 %.009 $101460 1616 51170520101350000 SYSUM LAYTON T& I JACKSON CREEK RD CUNCY AT 596348]14 JAD(LYA NESrAms,=10.710 x.ro3 W.LN m,ACmax.m,COS $85,309.00 Vacant $7,457 %.009 310,486 $650 PMB 2322 eB3^calm 511795201021gooto TARVER JAMES 818 HARRISON AVE HELENA MT 59601-2613 JK MQJNTAIx ESrArCS.sm.Tmx..m ,,w2,ACm5 rm,cos $284,170.00 Impmvw $7,45] $3.09 $101466 %% x+mmcalm 5190520101180000 WOLLIN TERRYABMARV 1EAGLE VIEW DR CLANCY MT 58634-9221 JACAaCUMTAmESTATES.M.TO RNn w,La I..ACms z11..cos 5298,0]2.00 Impmved $7,457 $3,009 $10,488 %50 K FAMILY TRUST x34NpFm1A 51170520101]600% YOUNG MICHAEL H&JOY LCOUGAR CT CIANCY MT 598349226 JAa wwrAm ESrATES,sm,TNKROw,LNm,ACRES4.z7,cos NSSNFalm $420,502.00 Improved $7,457 $3,009 5101400 1616 $7,079,766.00 Jackson Creek Road RSIDIRMD and Jack Mountain Estates RSIDIRMD Parcel Owners EXHIBIT 8 Estimated Initial Estimated Maximum Estimated Maximum Annual Principal Parcel Owner OwnerZip TaxabloMarket Improved/ Principal Assessment Principal Assessment Total Estimated Assessmentfor Improvements Road Improvements Assessment Amount Mountain IDIGeDcode Owner Name OwnerAddress Owner City State Code Legal Description Value Unimproved for Jack Mountain for Jackson Creek Maximum Principal Maintenance of Jack Pdvs1Wy0wnW Putols Makin the Jackson Creek ROM RMMM0 OMy 511)8 521101 0100 00 DAHL GREGORY L8 110M0ONLIGWRIME I CLANCV MT 598349727 sx3 iMN.6Mw.AVas+av,mwcrwmEVwss sevcos $8.519.00 Vacanl $0 83.009 $3,009 W STACIAL RD z+aam im]A Mas AVaNp CUlee 511785212D1D10000 WARREN LIVING TRUST PO B0X 50188 SPARKS NV 89435.0166 ex+.max.eMw.c0a.a>M S,RARCU n,lv xxNw4.wz+ $$19100 Vaum EO 83,009 $509 M 51178 5 21 2 0 3 010 0 0 0 SCHUELE THEODORE 291 JACKSON CREEK RD CLANCY MT 59630.9721 sx+.max,w3w.ACREnaiMCl wO wlz.aeKMwm 8430.00 Vacam $0 83,009 $3,669 80 51178521301250000 WARREN LANG TRUST POBOX50186 SPARKS NV 89435.0106 ez+.TMx.emw.AVFS4a,swx,waucKSaNUEEKrorn. 852.00 Vaunt $0 83,009 $$,M9 80 1.586]MCi PE0.BY.IAPa m MveblyMllM ParcW within Bu Jeokspn Creek Read RMOMMD nee Jeek MPpnMN EaYW REIMaMD IJapk Mpumaln aYaweei 30 EAGLE VIEW DRIVE JACK V OUNrAN ESTATES,M.Tm N,SWw.La 44.AcyS see,cce 511]8 520101 9 0 0 0 0 0 LLO 1506 ARIZONA DR ALLEN TX ]50133000 x.mayrse $392.564x0 ITnprpvM $],45] $3,009 110.08 Efi58 51178520101150000 BELL LIVING TRUST 5EAGLE VIEW DR CLANCY MT 598349221 uCKaoUxruNESTATES,3M.TMN,MW W l+ ACRES 2 M,cos 5380.699.00 Imp+OVM $).45] $3,009 !10.68 5856 234wo.me 5117852010225 N DEMEY DAVID 2GROUSE CT CLANCV MT 59834-9Y24 +lcxxpw+uNESTAM.9 TAN,w.Las AWES 121,cos E171,296.00 Impmred 8],45) $3,008 $10,466 $BSB 511]05201013]0000 FENNESSY TERENCEPB 10 EAGLE VIEW DR CLANCV MT 5 9 8 9 4 9221 JACKAYJYxiury ESTATES.sM.TMN.RMW.ISTa.A 520,005 $411413.00 Im TIINq L H x.1S,Se pmexd $7,457 $3,009 $10,468 5056 51178520103330000 FRONTIER BUILDERS,INC PO B0X 9528 HELENA MT 598049528 3 KM WM ESTx S.M.TM N,SM W.La 4.ACRES T.Tx.cm $57,165.00 V.m $7,457 $31009 $10ASS 5656 ]1M)GRYm 51178520101330000 HALL,REED PO BOX] HELENA MT 59624-0007 ucK xwrrrAw E STATES.SM.TM N,sm w,w le.ACR.T.m.COa z+aaM.+m $276,250.00 ImpMNM 68 5],45] (3,009 $10. $658 511]8520101290000 HERBST MIKE J B JULIE L PO BOX 5857 HELENA MT 596645667 JK NCV11TAw ESTATas.SM. roN W.w 11.ACnsslra 008 E258467.00 Impmwk E]p5] 53,009 $10068 EfiSB 5117 66 2 01 012 5 0 00 0 HOGAN DOUGLAS RB 3ANTELOPE WAY CHANCY MT 58634-9]50 JA K ASI ESTATES,SM.TM N,Rm w,w S.n S1.cos 8182,212.00 Imp.NM $7,457 $3,009 $101,168 SM TERESA L ema.1M NCK EYMRRAIN ESTATES,SM,TON,NOW.W 3A ALPES SM,CM 511]8520101.050000 JACKSON KYLES 301 SADDLE pq BTE A HELENA MT 59801-8026 $885,080.00 I.Mm $7.45] $31009 110,466 $85& Stt]8520102350000 JOHNSON CHRISTOPHER 101 W"TINA CT B0ZEMAN MT 597185828 ucKMmmrux ESTATE5,8M.Tmµ+eos W.La4 ..N x.m,cps mm.1. 516000 Vemm 87,457 53,009 $10.66 856$ M 51178520102430000 JOHNSON DANIEL A& 1 JACKSON CREEK RD. MONTANA CITY MT 598349714 J e AN ESTATES.SM,TM N.IM W.La M9 ACRES 1.0,COS $114.00 VM,anl $7,457 $3.009 $10,466 $658 JACQUELINE PMB 2062 UeMFNA JOHNSON DANIEL A& 1 JACKSON CREEK RO acKN ASN STATES.SM.TIN N.SM w.La S+A.ACRES ale,cos 511)0520101010000 JACQUELINEA PMB 2082 MONTANA CITY MT 598349]14 sus.Fw4n $183,466.00 ImpMwd $],45] $3,008 $10,486 $658 511]8520101030000 JOHNSON DANIEL A& 1 JACKSON CREEK RD. MONTANA CITY MT 541630.9]14 JACKrIG1NTNN.TAms,up,max,RMwla.ACRES v.005 JACQUELINEA PMB 2062 2+8135 Emm $98.00 Vacam $7.457 $3.009 $10,466 5658 JOHNSON DANIEL A 8 1 JACKSON CREEK RD. JACx MgINP1ry ESTATES,uo,max,Maw,la x61 Avers 211.COS 511)6620101050000 JACQUELINEA PM62062 MONTANA CITY MT 596349]1.0 Slams.+. $122.00 Varam $7,457 $3,009 $100468 $658 JOHNSON DANIEL A 8 1 JACKSON CREEK RD. JAOK NeUNTYN ESUreS,SM.TM N.KM W.W 10,Acres lot.Cos 511]85201012]0000 JACQUELINEA Me 2062 MONTANA CITY MT 59634-9714 xINMa.1m $80.00 vacant $),451 E3,OD9 $1014106 $658 JOHNSON DANIEL A 8 1 JACKSON CREEK RD. JACK wO.E...SM..TM N.Mew,W25 Aces 5M,cos 511]8520101500000 JACQUELINEA PMB2D62 MONTANA CITY MT 596349)10 $32700 VncaM $].45] E3,DOB $10,466 $856 511]8520101550000 JOHNSON DANIEL A& i JACKSON CREEK RD. MONTANA CITY MT 596349]14 JACK NTMNESTATES,SMTMµRm WAW2S,n RSSS3.8,cos $22000 Vacant $],45] $3,009 $10.466 $8.50 JACQUELINEA PMB20fi2 JOHNSON DANIEL A& 1 JACKSON CREEK RD, JACK NO0xTAw ESTATES,SM,TM N.Rm W.LW n ACRES 4.e+.cos 511]8520101800000 JACQUELINEA PMB 2062 MONTANA CITY MT 598349710 $2]6.00 Vacant $),415] $3,009 $10.66 1056 JOHNSON DANIEL A& 1 JACKSON CREEK RD. JAXNICUNTAw ESTATES SMTMKMW,La M, MS3M,cos 511]8520101840000 JACQUELINEA Pus 2062 MONTANA CITY 81T 598349]14 $130.00 Vacant E],d5] $3,009 $10,466 5866 JOHNSON DANIEL A& 1 JACKSON CREEK RD. L6KMG-IXESTATES.SM.TMN'RMW.W9,ACRES3.x4,eM 511]6620101BBODW JACQUEUNEA PMB 2082 MONTANA CITY MT 598349]14 2'_Rnm 5158.00 VaceM $),457 $3,009 $10,,166 5658 JOHNSON DANIEL A& 1 JACKSON CREEK RD. JApl NtexrAJN ESTATES.BM.TWN.Ns W A s3a;cM 511]8520101880000 ,IACOUELINEA PMB 28g2 MONTANA CItt MT 59854-9714 ...181 $229.00 Vxant $71457 53.009 $10,,166 $658 51178520101700000 JOHNSON DANIEL A& I ACKION CREEK RD. MONTANA CITY MT 598349714 .KUNr.VN ESTTMe,SM.TM N.Me W.La v,A San,COS $183.00 Vacem $7,457 $3,009 $10,466 $658 JACQUELINEA Me 2062 rmM.im JOHNSON DANIEL A& 1 JACKSON CREEK RD. J KYINTAw SSTATES.SM.TM N.Rm S' m.ACRES 366,cps 511]0520101]20000 JAMUELINEA PMB 2082 MONTANA LItt MT 598349]11 happy+m $190.00 Vacam $]145) $3,009 $10,468 $658 JOHNSON DANIEL A& 1 JACKSON CREEK RD. ALx suemAN EMAMS,see.TM N.NO W.La m,ACras 3M,cep 511]85211101]40000 JACQUELINEA PM82082 MONTANA CITY MT 5983.09]14 rM%y+y $195100 Vacant $7.57 $3,009 510,468 5850 JOHNSON DANIEL A& 1 JACKSON CREEK RD. urwawxM`WAMS.SM.TM N.Ne W.La4+,ACRES+Tas cps 511)6520101000000 JACQUELINEA PM 662 MONTANA CITY MT 59831-9]16 q+my y+m $6]4.00 Vscanl $],45] $3,009 $10,488 8050 311>852010201p000 JOHNSON DANIEL A& 1JALKSON CREEK Rp. MONTANA CITY MT 596349]1,1 '"cKMOwJ.F"ATES.SM.TMN.RMWA..ACRES3m,cos $229.00 Vecem $],45] $3,1108 $10,466 $856 JACQUELINEA PM82082 2lmm fpm JOHNSON DANIEL A& 1 JACKSON CREEK RD, xlacsmunrAw EmATES.sM.TM Sapp w.Lam.ACUSe.ls.cos 311]0520102050000 JACQUELINEA PMB 2pg2 MONTANA CITY MT 598349]14 2+yM y+era $358.00 Vecanl $7,45] 83,009 $10068 $650 ' EXHIBIT C tPROPOSED PROJECT BUDGET 1 1 1 1 C-I ' Jefferson County Jack Mountain RSID Jackson Creek Road Double Shot Chip Seal-0.8 miles Moonli ht Ride Road -South Bounds Jack Mountain Subdivision ITEM Unit Quantity Price Amount ' Mobilization 10% LS 1 $12,000.00 $12,000 First Shot-MC800 Seal& 1/2 Chip Coat SY 12,700 $3.80 $48,260 Second Shot-CRS2P Seal&3/8 Chip Coat SY 12.700 $3.00 $38,100 Road Grading&Ditch Cleaning SY 12,700 $0.50 $6,350 ' 3/4"Crushed Road Mix-Add base Elk Dr-end CY 250 $40.00 $10,000 24"CMP Culvert LF 80 $60.00 $4,800 SUBTOTAL $179,570 Engineering Design&Const. Mgt $9,500 Contingency 5% $6,000 Administration 2% $2,400 TOTAL CONSTRUCTION COST $137,410 Costs of Issuance(MBOI Loan): Reserve Account 2% $3,200 Revolving Fund Deposit 5% $8,200 Underwriters Discount 2% $3,200 Financial Advisor $3,000 Preliminary Engineering&Planning LS $2,500 Bond Counsel LS $5,000 TOTAL RSID BOND COST $162,510 ' RSID Assessment Per Parcel: Total Number of Parcels Assessed = 54 ' Total Estimated Cost Per Parcel = $3,009 RSID Annual Assessment(4%, 20 years)= $223 ' Maintenance Assesment Per Parcel: $0 Maintenance of Jackson Creek Road will be performed by County Road Department ' Total Estimated Annual Assessment= $223 t 1 Jefferson County -Jack Mountain RSID Internal road improvements-Double shot chip seal Jack Mountain Estates Subdivision ' ITEM Unit Quantity Price Amount Mobilization 10% LS 1 $28,000.00 $28,000.00 Road Grading& Ditch Cleaning SY 30,350 $0.60 $18,210 Speed Control Devices ' wl Ct.. First Shot-MC800 Seal& 1/2 Chip Coat SY 1,050 $3.80 $3,990 ' Second Shot-CRS2P Seal&318 Chip Coat SY 1,050 $3.DO $3,150 Elk Dr. ' First Shot- MC800 Seal& 1/2 Chip Coat SY 3,550 $3.80 $13,490 Second Shot- CRS2P Seal&3/8 Chip Coat SY 3,550 $3.00 $10,650 Eagle View ' First Shot- MC800 Seal& 1/2 Chip Coat SY 13,900 $3.80 $52,820 Second Shot-CRS2P Seal & 3/8 Chip Coat SY 13,900 $3.00 $41,700 Driveway Transitions EA 12 $200.00 $2,400 314"Crushed Road Mix-Establish crown CY 80 $40.00 $3,200 ' 18" CMP Culvert LF 100 $60.00 $6,000 Cougar Ct. ' First Shot-MC800 Seal& 1/2 Chip Coat SY 1,350 $3.80 $5,130 Second Shot-CRS2P Seal&3/8 Chip Coat SY 1,350 $3.00 $4,050 Driveway Transitions EA 1 $200.00 $200 Bobcat Ct. First Shot-MC800 Seal& 1/2 Chip Coat SY 1,750 $3.80 $6,650 Second Shot-CRS2P Seal&3/8 Chip Coat SY 1,750 $3.00 $5,250 Soil Sterilant SY 1,750 $0.25 $438 Bear Ct. First Shot-MC800 Seal & 1/2 Chip Ccat SY 2,100 $3.80 $7,980 Second Shot-CRS2P Seal&3/8 Chip Coat SY 2,100 $3.00 $6,300 Soil Sterilant SY 1 2,100 1 $0.25 1 $525 Antelope Ct. First Shot-MC800 Seal& 1/2 Chip Coat SY 1,350 $3.80 $5,130 Second Shot-CRS2P Seal& 318 Chip Coat SY 1,350 $3.00 $4,050 ' Driveway Transitions EA 3 $200.00 $600 18"CMP Culvert LF 80 $60.00 $4,800 Moose Dr. ' First Shot- MC800 Seal& 1/2 Chip Coat SY 3,100 $3.80 $11,780 Second Shot-CRS2P Seal&3/8 Chip Coat SY 3,100 $3.00 $9,300 Soil Sterilant SY 3,100 $0.25 $775 ' Ptarmigan Ct. First Shot-MC800 Seal& 1/2 Chip Coat SY 1,150 $3.80 $4,370 Second Shot-CRS2P Seal&3/8 Chip Coat SY 1,150 $3.00 $3,450 ' Driveway Transitions EA 1 $200.00 $200 3/4"Crushed Road Mix- Drainage CY 80 $40.00 $3,200 Grouse Ct. ' First Shot- MC800 Seal& 1/2 Chip Coat SY 1,050 $3.80 $3,990 Second Shot- CRS2P Seal&3/8 Chip Coat SY 1,050 $3.00 $3,150 Driveway Transitions EA 2 $200.00 $400 Shaping for drainage swale LS 1 $500.00 $500 SUBTOTAL $275,828 Engineering Design & Const. Mgt. $23,000 Contingency 5% $13,791 Administration 2% $5,517 TOTAL CONSTRUCTION COST $318,135 Costs of Issuance: Reserve Account 2% $7,500 Revolving Fund Deposit 5% $18,700 Underwriters Discount 2% $7,500 Financial Advisor $7,000 ' Preliminary Engineering& Planning $4,000 Bond Counsel $10,000 TOTAL RSID BOND COST $372,835 Assessment Per Parcel: Total Number of Parcels Assessed= 50 Total Estimated Cost Per Parcel= $7,457 ' RSID Annual Assessment(4%, 20 years) _ $552 t Maintenance Assesment Per Parcel: $658 Costs assume chip sealing roads @ years 3, 7, 12, 17 ' Total Estimated Annual Assessment= $1,210 JEFFERSON COUNTY COMMISSIONERS COURTHOUSE, BOX H BOULDER, MT 59632 PHONE 406-225-4025 ' FAX 406-225-4148 LEONARD WORTMAN CHAIR DAVE KIRSCH ROBERT MULI.EN PROCEEDING OF THE BOARD OF COMMISSIONERS ' COUNTY OF JEFFERSON, STATE OF MONTANA July 22, 2014 Present; Commissioners Wortman, Kirsch and Mullen; Harold Stepper, County Planner;Bill Lloyd, Great West Engineering; Jan Anderson, Boulder Monitor; Tony Prothro, Shedhorn Engineering; Cory Kirsch, Russ Bell ' CORRESPONDENCE Commissioner Wortman read a card from the Animal Shelter and Care Committee,thanking the ' Commission for their continued support of the program. Commissioner Mullen stated that he doesn't have a letter, but he has had a couple phone calls with Roger Edivich, who lives just north of Montana City on Highway 282. He has a problem with the use of jake brakes on Highway 282 and the interstate. He has contacted MDT and was told about the possibility of getting some signs put up. We don't have ordinance authority, but he will continue to research and may bring this before the Commission in the future. CALENDAR REVIEW ' COMMISSION REPORTS ' Commissioner Mullen reported that the Commissioners met on the north end on Wednesday to view a cattle guard that needs to be replaced. They also met with a resident of Big Sky Acres subdivision to discuss some road issues. ' Commissioner Mullen reported that yesterday he attended the Center for Mental Health board meeting in Great Falls. We are a member of that region of the state's mental JULY 22 2014 MINI TES -I- health system. At the present time, Jefferson County doesn't get much in the way of ' services for the mentally ill in the community; we don't have a mental health professional working here at all. Jefferson County and Broadwater County are the two ' counties in the region without coverage. They tell him that Jefferson County gets coverage out of Helena, and he will have to do some research on that. At most, we would never have more than 1/10 FTE and he finds that very confusing, considering we have a state facility here. He assumes those people will require some sort of services. He will be doing some research on why we aren't receiving more in terms of mental ' health services for Jefferson County, we payjust as much as the other counties around us do. Commissioner Wortman stated that this certainly warrants follow up. Commissioner Wortman reported that on Tuesday he attended the DUI Task Force meeting. They reviewed plans for upcoming projects. Commissioner Wortman reported that on Wednesday in attended the 1LDC meeting in Clancy at Marks Lumber. They talked a about things that are going on particularly in ' the Whitehall area. ' SUBDIVISION REVIEW FINAL PLAT REVIEW -BABIN MINOR SUBDIVISION ' Harold Stepper, County Planner, presented his staff report on this two lot minor subdivision located adjacent to Lump Gulch Road. The parcel contains 5.00 acres and is proposed to be split into two lots 2.224 and 2.784 acres in size. All conditions of approval have been met. Harold recommended that final plat approval be granted. Commissioner Wortman moved to grant final plat approval. Commissioner Kirsch seconded. The motion carried. FINAL PLAT APPROVAL AMENDED PLAT LOT 1 VISTA MINOR SUBDIVISION Harold Stepper, County Planner, presented his staff report on this two lot minor subdivision located adjacent of Lump Gulch Road. The parcel contains 5.00 and is proposed to be split into two lots 2.224 and 2.784 acres in size. All conditions of approval have been met. Harold recommended that final plat approval be granted. Commissioner Wortman moved to grant final plat approval. Commissioner Mullen seconded. The motion carried. JULY 22 2014 MINUTES -2- t ITEMS FOR COMMISSIONERS' ACTION OR REVIEW PUBLIC HEARING - CREATION OF JACK MOUNTAIN ESTATES RSID Commissioner Wortman called the public hearing to order. Bill Lloyd, Great West Engineering, stated that he doesn't have any additional information, but is here to answer any questions that may arise. Commissioner Wortman called for comments. Russ Bell thanked the county for the excellent cooperation throughout this project. They have polled the residents of Jack Mountain Estates and everyone seems to be in favor of it; they are willing to pay for the improvements and just want to see the project get started. Commissioner Wortman read a letter from Dan Johnson stating that he had planned to attend the meeting, but a conflict arose. He and his wife are in full support of the project. He then read two letters of protest, from Greg and Stacy Dahl and from James and Michelle Paterson. The Dahls are requesting that they be removed from this RSID/RMD because they are already part of another one adjacent to this one. ' Commissioner Mullen asked if it is correct that Mr. Dahl will assessed fees in both RSIDS. Bill stated that this is correct;there were the improvements to Jackson Creek Road and the internal ' roads within the Moonlight Ridge subdivision, which his property borders. His property borders Moonlight Ridge Road and also has access off of Jackson Creek Road beyond where Moonlight Ridge Road takes off, which is where the prior improvement ended. Therefore, he was assessed under this because his property assesses off of Jackson Creek Road that will be improved under this project. Commissioner Wortman stated that if Mr. Dahl were to subdivide, he would more than likely access off of Jackson Creek Road rather than through Moonlight Ridge. Bill stated that he can't speculate on that; he doesn't know where Mr. Dahl intends to access the parcel from. He knows that there was concern expressed by the property owners in Moonlight Ridge that there will be increased traffic on Moonlight Ridge Road, so he might guess that access would be off of Moonlight Ridge Road and the required secondary access could be off of Jackson Creek Road. When they deal with the bond council, they are pretty adamant that if there is a direct benefit to the property, that they be assessed in the district. And while that is a grey area, Mr. Dahl's property is deemed to have been benefitted by the Moonlight Ridge project and it is also deemed to be benefitted by the Jack Mountain Estate project. ' Harold stated that Greg Dahl has been in to talk to him regarding the possibility of a future subdivision of this parcel. He is looking at a five-lot minor that abuts Moonlight Ridge Road and he will be utilizing that road. He is also doing a boundary relocate on two parcels of ground ' to make those into lot sizes rather than mining claim sizes. Those also will access on Moonlight JULY 22 2014 MINU I ES -3- Ridge Road. However, he alluded to the fact that in the future he plans on dividing more property within that huge lot that he owns. Hearing no further comments, Commissioner Wortman closed the public hearing. RESOLUTION 24-2014 CREATION OF JACK MOUNTAIN ESTATES RSID ' Commissioner Wortman read the resolution as follows: ' Commissioner Mullen moved to adopt the resolution. Commissioner Kirsch seconded. The motion carried. MEETING ADJOURNED ATTEST: ' BONNIE RAMEY LEONARD WORTMAN, CHAIR CLERK AND RECORDER 1 DAVE KIRSCH, COMMISSIONER BOB MULLEN, COMMISSIONER ' JULY 22 2014 MIND FS -4- 1 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned,being the duly qualified and acting recording officer of Jefferson County, Montana (the"County"),hereby certify that the attached resolution is a true copy of Resolution 24-2014, entitled: "RESOLUTION RELATING TO RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 (JACK MOUNTAIN ESTATES); CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF RURAL SPECIAL IMPROVEMENT BONDS SECURED BY THE COUNTY'S RURAL SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND CREATING RURAL SPECIAL IMPROVEMENT MAINTENANCE DISTRICT NO. 2509-M FOR THE PURPOSE OF MAINTAINING CERTAIN OF THE IMPROVEMENTS" (the "Resolution"), on file in the original records of the County in my legal custody; that the Resolution was duly adopted by the Board of County Commissions of the County at a meeting on July 22, 2014, and that the meeting was duly help by the Board of County Commissioners 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 certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: csw t_ QnticQ_ VyL�Q Qt ,L, voted against the same: abstained from voting thereon: or were absent: _ WITNESS my hand officially this � day of July, 2014. Bonnie Ramey, Clerk and Rec r RESOLUTION 24-2014 RESOLUTION RELATING TO RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 (JACK MOUNTAIN ESTATES); CREATING THE DISTRICT FOR THE I PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF RURAL SPECIAL IMPROVEMENT BONDS SECURED BY THE COUNTY'S RURAL SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND CREATING RURAL SPECIAL IMPROVEMENT MAINTENANCE DISTRICT NO. 2509-M FOR THE PURPOSE OF MAINTAINING CERTAIN OF THE IMPROVEMENTS ' BE IT RESOLVED by the Board of County Commissioners (the`Board") of Jefferson County, Montana (the "County"), as follows: Section 1. Passage of Resolution of Intention. This Board, on June 10, 2014, adopted Resolution 18-2014 (the "Resolution of Intention"),pursuant to which this Board declared its intention to create a rural special improvement district, designated as Rural Special Improvement District No. 2510 (Jack Mountain Estates) of the County(the "District"), under Montana Code Annotated, Title 7, Chapter 12, Part 21, as amended (the"Act"), for the purpose of financing all costs of improvements described therein (the"Improvements") and paying costs incidental thereto, including all costs associated with the same and the security of rural special improvement district bonds drawn on the District(the"Bonds"), the creation and administration of the District, the funding of a deposit to the County's Rural Special Improvement District Revolving Fund(the "Revolving Fund"), and the funding of a reserve account securing the Bonds in the District fund(the "Reserve Account"). And to create and establish in the County under the Act, a rural special improvement maintenance district(the"Maintenance District") for ' the purpose of maintaining the Jack Mountain Road Improvements (as hereinafter defined). The fmprovements consist of design, engineering, and construction of road upgrades, including grading and shaping of road section, installing drainage structures where necessary, adding crushed base course gravel where necessary to reestablish the road section, and installing a double shot chip seal driving surface on Owl Court, Elk Drive, Eagle View Drive, Cougar Court, Bobcat Court, Bear Court, Antelope Court, Moose Drive, Ptarmigan Court, and Grouse Court within in the Jack Mountain Estates Subdivision (the"Jack Mountain Road Improvements") and Jackson Creek Road (the"Jackson Creek Road Improvements"), all in Jefferson County. Section 2. Notice and Public Hearin u. Notice of passage of the Resolution of Intention was duly published and mailed in all respects in accordance with law, and on July 22, 2014,this Board conducted a public hearing on the creation of the District and the making of the Improvements. At the hearing, this Board heard and passed on all protests made during the period ended 32 days after the first date of publication of the notice of passage of the Resolution of Intention (the "Protest Period"). The meeting of this Board at which this resolution was adopted is the first regular meeting of the Board following the expiration of the Protest Period. ' Resolution 24-2014 Creating the Jack Mountain RSID No. 2510 1 Section 3. Protests. Within the Protest Period,two (2)protests representing two (2) lots, tracts, or parcels in the District were filed with the County Clerk and Recorder and not withdrawn by the owners of property in the District subject to assessment representing 3.57% of the total costs of the Improvements and incidental costs to be financed with proceeds of the Bonds in accordance with the method of assessment in the Resolution of Intention. Section 4. Creation of the District; Insufficiena of Protests. The protests against the creation or extension of the District or the making of the Improvements filed during the Protest Period are hereby found to be insufficient. This District and the Maintenance District are hereby created on the terms and conditions set forth in, and otherwise in accordance with, the Resolution of Intention. The findings and determinations made in the Resolution of Intention are hereby ratified and confirmed, including, without limitation, the findings and determinations relating to the revolving fund, the Reserve Account, and the creation and establishment of a Maintenance District. PASSED AND ADOPTED by the Board of County Commissioners of Jefferson County, ' Montana,this 22"d day of July, 2014. ATTEST: BONNIE RAMEY ftONARD WORTMAN, CHAIR CLERK AND RECORDER DAVE KIRSCH,KIR�S/CH, COMMISSIONER BOB MULLEN, COMMISSIONER Resolution 24-2014 Creating the Jack Mountain RSID No. 2510 2 r elaTam JMerwn Caunq Jxk AkanWll F.a1414 Apd1 Aphl ReadMaka9atnPrwmnenG 7,1015 Engineers Eagmab Butlpek CpntracOnq,LLC GroOar Eacavagnq,Inc. Rob0leq CvnaWdlvo,Inc. Vadt Sand 6 Gravel,LI.0 Smith Contrn Vdg Inc, ITEM OuanIty Unit ril VIM Uhm Puce I TOW Ethic ITchti Unit Prlca .Total Prke Vrdt Pdcv Total Prke UNt Pdce Total Prka Unit Prkv ToW Prlce 1_001 Io _ 1 LS_ 35000.00'$ 35.000.00 5. 20780.00 $ 2058b:00 18000. 'E 18000 U0 8500:110 '8500.00 E 50000048 5000.00 $ 3f 00000 $ 21 D00.00 2�ndOr�_&SnaP3._ 1 LS $ 1500000 $ i5,000A0 9000.00 $ 900p 00 $ 12000.00 12000.00 $ 2400000 S 24000.00 1.00 $ 22000.00 $ 24,000_00 3 Cry ne08ase Cours_e(1 M1nu5) 195_CY $_ 00.05,800.00 $ 26.00 $ 102]0.00 35:001 13825.00 $ 60.00 15800.0 $ 2].50.$ 10882.50 .{ 38.00 S 14,240.00. 4 First Snot MC BOO Se @1812"Chao Cqp(_ 40580 SY 3.8(1 _$ 154204. $ 2.33 $ 96551.40 2.43 S 98609.40 $ 2.60 § (05508.00 8_ 2.25 91306.W 8 2.00 $116820;00_ 5_$ac d Snot CR5.2P 5 g 318_Gnl CP oa1 a0 580 SY $ 3.00 $121]00.00 $ t.fi9 $ 6058030 8 183 $ ]d 261.40 $ 1.96 ]9.536.80 2.25 91 30§:00 2.1 g $ BBi 64.a0 J_ 920 ROaesd Dkh_, __„ 920 LF $ _ 3,00 $ 2]60.0 $ 0.68 $ 625.60 1.80 $ 1072-00 $ 8.00 $ ]100.011 $ 10.00 S 9200.00 g 800_. 8_�R0.00 1 Newt/Dan _690 LF $ 1.50 $ 1035.00 $ OA5 $ 51).50 5.00 S 3450.00 6.00 $ 4.140.00 $ 10.00. E 8900.00 $ 15.00 $ 10350.00 ._ BCea Dtcn _ 9.9a5 LF $ 0.50 $ 48]2.50 $ 0.38 $,_ 3551.10 2,803.50 g 1.30 S 12148.50 $ 180 $ 14952.00 § 5.00 S 46,85.00 3 bra eeC Ivens-iP"HOPE 145 LF E 80.00 $ ff 600.00 $ 20.63 S 3,861.39 43.00 6235,pJ $ 40.00 $ 5800.00 8 50.00 $ ],25p,00 $ 54.00 $ )8W 00 tp DranagaG lveM1..24'HOPE ___ 90 LF 65.00 $ ]65000 $ 34.43 $ 3098.]0 $ 65.00 $ 5850.00 § 56.00 $ 4060.00 $ 65.00 $ 5850.00 E TL00 $ 6930.D0 11 Clean CWVan �- 31 EA 100.00 $ 3100. S 6500 2635.00 200.0 6200.00 4]5.00 $ 1672500 130.00 2 830.00 20000"$ 6200.00 TOTAL EeL^.abd i Fri. 2372 1.50 I S.24D.70-3n S 202 378.30 f 340 317 P 10' Or ins 9 dHUeds-18'HOPE ' :g0'LF 80. 6460:00. 26 2d30A0. 44W d .Op 31 .1 3 50'110 4 Ob. 36: 1320.00 TOTAL Admnve Ahvmal tll EShmaletl Sld Pdce S. 6 .00 !S 211;dtl' -Sq A 1-.3 .00' 4000.0 I$ 4 20A0 NewRadstle dicM1 -_... . .,,I,{ $ ,..._800'$'MIS 20. $ 3_�ae2AS:. - d',' Oq.i$.'4800A __.,. 5 6_6 00 $_... 50.001 S..6210.00 201 D.e a CM fi_dpPE 115'. l-- t ILF $ 300 278000 S 1 1 1� Lbfl S 1,d 11 ] 9.OIX 10,00 93 .00 S 640 ]812,00 iOTAi Addigve MGmafe 42 ESiimand Bid PNee E 11 90.Oq I ,._.IT619b "6`433.00 . j 12010.00 i 159$q00. 14 012.00 11,1111111.111"1.Ot 1 Boil Stadlam 1 8,500 r5Y $' ..030 $ 255o.00 S 0 860.00 0. "1020 1 hW. 013 102 .OU 020 E 1]00.00 TOTAL Additive Alternate OS Estimated Sid Prise E 2SS0.00 600.00 S 1020.00 1020.00 1700.00 S1te0ed 10 repreaenfa an ermrw the COOVaGkfa bid V.that has been eorlavid,during labulah... I nereby cedify That IMa GbUlalicn of bids'.a true repreeenint n of the bitls revived on Apm 7,201& JeremiahT E �OtNTA/v JEREMIAH fft JAMES THEY 15402PE f,rupiy.µrrnp,uy„rOMq.inaukk;�em RlVfiWaWnyvi N.ruY&npfw,rwy4miu exam 1 1 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE 1, the undersigned, being the duly qualified and acting recording officer of Jefferson County, Montana (the"County"),hereby certify that the attached resolution is a true copy of Resolution 25-2015 entitled: "RESOLUTION RELATING TO UP TO $339,750 RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 BONDS; PRELIMINARILY AUTHORIZING THE ISSUANCE AND PROVATE NEGOTIATED SALE THEREOF AND AUTHORIZING THE PROCESS FOR SELECTING A PURCHASER THEREOF; AND AUTHORIZING THE PLEDGE OF THE REVOLVING FUND TO THE SECURITY THEREOF AND RELATED MATTER" (the "Resolution"), on file in the original records of the County in my legal custody; that the Resolution was duly adopted by the Board of County Commissioners of the County at a meeting on September 15, 2015, and that the meeting was duly held by the Board of County Commissioners 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 certify that, upon vote being taken on the Resolution as said meeting, the following Commissioners voted in favor thereof: Commissioner Mullen and Commissioner Kirsch; was absent: Commissioner Wortman. WITNESS my hand officially this 15" day of September,2015. Bonnie Ramey, Count Clerk 8- e rder RESOLUTION NO. oZS '0�O15 RESOLUTION RELATING TO UP TO $339,750 RURAL ' SPECIAL IMPROVEMENT DISTRICT NO. 2510 BONDS; PRELIMINARILY AUTHORIZING THE ISSUANCE AND PRIVATE NEGOTIATED SALE THEREOF AND AUTHORIZING THE PROCESS FOR SELECTING A PURCHASER THEREOF: AND AUTHORIZING THE PLEDGE OF THE REVOLVING FUND TO THE SECURITY THEREOF AND RELATED MATTERS ' BE IT RESOLVED by the Board of County Commissioners(the `Board")of Jefferson County,Montana(the "County'), as follows: Section 1. Recitals and StatutoKy Authorization. 1.01. Prior Acts. This Board has duly and validly created and established in the County under Montana Code Annotated, Title 7, Chapter 12, Part 21, as amended (the"Act"), a rural special improvement district, designated as Rural Special Improvement District No. 2510 (Jack Mountain Estates) (the "District"), for the purpose of financing costs of certain public improvements of special benefit to the properties within the District(the "Improvements") and paying costs incidental thereto (collectively, the"Incidental Costs'), including costs associated 1 with the sale and the security of rural special improvement district bonds of the County drawn on the District, the creation and administration of the District, the funding of a deposit to the County's Rural Special Improvement District Revolving Fund (the "Revolving Fund"), and the funding of a reserve account securing the rural special improvement district bonds in the District fund. 1.02. Proposed Bond Issue. The County proposes to issue rural special improvement district bonds drawn against the District in the maximum estimated principal amount of up to $339,750 to pay the costs of the Improvements and Incidental Costs (the`Bonds"). The Bonds are to be payable primarily from special assessments to be levied against property in the District, which property will be specially benefited by the Improvements. Assessments will be levied against the property in the District in an amount not less than the principal amount of the Bonds to be issued and will bear interest at a rate that is not less than fifty basis points above the ' average annual interest rate on the Bonds then outstanding. The costs of the Improvements and Incidental Costs are currently estimated to be as follows: Jackson Creek Jack Mountain ' Road Road Total All Improvements Improvements Improvements Construction $88,000.00 $165,000.00 $253,000.00 ' Engineering Design &Const. Mgt. 11,500.00 25,000.00 36,500.00 Administration 1,760.00 3,300.00 5,060.00 Reserve Account 2,230.00 4,460.00 6,690.00 Revolving Fund Deposit 5,850.00 11,150.00 17,000.00 Preliminary Engineering Planning 2,500.00 4,000.00 6,500.00 Bond Counsel 5,000.00 10,000.00 15,000.00 ' Total $116,840.00 $222,910.00 $339,750.00 1.03. Neeotiated Sale. Pursuant to Montana Code Annotated, Sections 7-12-2172 and ' 17-5-107, the County may sell the Bonds at a public or a private negotiated sale as the governing body shall determine. The County determines it is in the best interest of the County to sell the Bonds at a private negotiated sale and desires to solicit bids from banks or other financial ' institutions in an effort to obtain a favorable interest rate on the Bonds. Section 2. Sale and Term of Bonds. 2.01. Principal Amount. Pursuant to the authority described in Section 1,this Board desires to issue and sell the Bonds in a maximum principal amount of$339,750. 2.02. Selection of Purchaser and Neeotiation of Sale. Pursuant to Montana Code Annotated, Sections 7-12-2172 and 17-5-107, this Board desires to sell the Bonds at a private ' negotiated sale. The County desires to undertake a solicitation process described herein to select a suitable purchaser of the Bonds willing to purchase the Bonds at the lowest interest rate. The Chair of the Board and the County Treasurer or their designees are authorized to select a purchaser for the Bonds and negotiate the sale of the Bonds and to select a purchaser of the Bonds pursuant and subject to Section 2.03. 2.03. Pricing and Terms. The Bonds are authorized to be sold to the purchaser of the Bonds(the "Purchaser")that provides the County the most favorable interest rate and other terms and conditions, as determined in the sole discretion of the County. The County Treasurer or designee is hereby authorized to provide or make available the terms and conditions relating to the sale of the Bonds substantially in the form similar to the attached Exhibit A,with such revisions as are deemed appropriate (the "Terms and Conditions")to banks and other financial institutions and solicit proposals to purchase the Bonds. The County may, in its sole discretion, accept a proposal to purchase the Bonds or reject any and all such proposals. All costs of issuing the Bonds (including,without limitation,the fees and expenses of ' Bond Counsel) shall be paid by the County as part of the financing from proceeds of the Bonds or other available sources. ' 2.04. Bond Purchase Agreement. The Chair of the Board and the County Treasurer are hereby authorized and directed to approve the final principal amount of the Bonds, dated date, term, payment dates and installment amounts, interest rates, and redemption provisions of the ' Bonds, subject to the limitations contained in the preceding paragraphs and the Act. Upon approving such terms,the Chair of the Board and the County Treasurer are hereby authorized and directed to negotiate, approve, execute and deliver to the Purchaser a bond purchase agreement substantially in the form attached as Schedule 2 to the attached Exhibit A and which may be revised prior to execution (the"Bond Purchase Agreement"), containing the agreement of the County to sell, and the agreement of the Purchaser to purchase, the Bonds on the terms so approved, and containing such other provisions as such officers shall deem necessary and 2 1 appropriate. In the event of the absence or disability of the Chair of the Board or the County Treasurer, another Board member or a designee of the Chair of the Board or of another Board member shall make such approvals and execute and deliver the Bond Purchase Agreement. The execution and delivery by two appropriate officers of the County of the Bond Purchase Agreement shall be conclusive as to the approval of such officers of the terms of the Bonds and the agreement of the County to sell the Bonds on such terms in accordance with the provisions thereof. The form of the Bonds and the final terms and conditions thereof shall be prescribed by a subsequent resolution to be adopted by this Board. PASSED AND APPROVED by the Board of County Commissioners of the Jefferson ' County, Montana,this 15th day of September, 2015. JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS Chairman ATTEST: Clerk and Recorder 1 3 1 1 1 1 1 ' BOND PURCHASE AGREEMENT November 2, 2015 tJefferson County P.O. Box H Boulder, MT 59632 Attention: Robert L. Mullen, Chairman, Board of County Commissioners Terri Kunz, County Treasurer ' Montana City Bank 9 Bankers Lane ' Clancy, MT 59634 Attention: Jake Combs, Branch Manager ' $339,750 Rural Special Improvement District No. 2510 Bonds ' Jefferson County, Montana Ladies and Gentlemen: ' The undersigned, Montana City Bank, as purchaser (the "Purchaser"), hereby offers to enter into this Bond Purchase Agreement (this "Agreement') with Jefferson County, Montana (the "County"), for the sale by the County and purchase by the Purchaser of the above-referenced bonds (the "Bonds"). This offer is made subject to the written acceptance hereof by the County and delivery of such acceptance to the Purchaser (in the form of one or more executed counterparts hereof) at or prior to 5:00 P.M., Boulder, Montana time, on November 2, 2015. ' Upon such acceptance, this Agreement will be in full force and effect in accordance with its terms and will be binding upon the County and the Purchaser. ' The Bonds are being issued pursuant to a resolution (the "Bond Resolution") to be adopted by the County on or about November 3, 2015, authorizing and fixing the terms and conditions of the Bonds. Capitalized terms not otherwise defined herein shall have the meanings given them in the Bond Resolution. I. Upon the terms and conditions and based on the representations, warranties and covenants hereinafter set forth, the Purchaser hereby agrees to purchase from the County and the ' County hereby agrees to sell to the Purchaser, all (but not less than all) of the Bonds upon the terms set forth in the Bond Resolution, including the following terms: Principal Amount $339,750 ' Closing Date On or about November 17, 2015 t Term Approximately 15-year term, commencing on the Closing Date and concluding July 1, 2031 ' Semi-annual January 1 and July 1, commencing January 1, 2017 and Installment concluding July 1, 2031 Payment Dates Amortization Equal or substantially equal installments of principal and interest ' Schedule due on the Bonds on each semi-annual installment payment date, as shown on the attached Schedule I. Interest rate 4.30%per annum, fixed for the entire term ' No Fees No fees charged by Purchaser ' Mandatory As required by law Prepayment Terms Optional In whole or in part on 30 days' prior written notice by the County Prepayment Terms to the Purchaser at a price of the principal amount to be prepaid or redeemed plus interest on the principal amount prepaid or redeemed through the prepayment or redemption date,without premium ' Reamortization Upon prepayment,the remaining outstanding principal amount of the Bonds to be reamortized over the remaining term at 4.30%per annum in equal or substantially equal principal and interest installments ' Bank Qualification The County will designate the Bonds as"qualified tax-exempt obligations" within the meaning of Section 265(b)(3)of the Internal Revenue Code of 1986, as amended. 2 2. The Bonds will be special, limited obligations of the County payable solely from amounts pledged thereto pursuant to the Bond Resolution. 3. This Agreement will be governed by and construed in accordance with the laws of the State of Montana. ' 4. This Agreement may be executed in multiple counterparts, each of which will be deemed an original and all of which together will constitute but one and the same agreement. This Agreement may be delivered by the exchange of signed signature pages by facsimile transmission or by e-mail with a pdf copy or other replicating image attached, and any printed or copied version of any signature pages so delivered shall have the same force and effect as an originally signed version of such signature page. ' 3 ' IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. JEFFERSON COUNTY,MONTANA Name: Robert L. Mullen ' Title: Chairman,Board of County Commissioners Name: m Title: Co reasurer MONTANA CITY BANK By ' Name: Title: ' 4 In WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. JEFFERSON COUNTY,MONTANA ' By Name: Robert L. Mullen ' Title: Chairman, Board of County Commissioners BY Name: Terri Kunz Title: County Treasurer MONTANA CITY BANK By ! _ Name: Title: r� a� ' 4 1 1 SCHEDULEI 1 AMORTIZATION SCHEDULE 1 Olsbursemant Date: November 17,2015 Repayment Schedule: Inslainrent InIDr.at Rate: 4.300 Ce1.Wetion Method: 365/365 U.S,Rule 1 Payment Payment Peym..1 tnt rest Principal Remaining Number Data Amount Paid Paid Selena. 1 01-01-2017 16,693.05 161893.05• 0.00 339,750.00 2 07.01-2017 16,B93.05 7,801,96 8,001.09 331,658-91 1 2017 TOTALS: 31.786.10 23,695.01 81091109 3 01-01.2018 15,603.06 7,189.26 6.703.77 322.955.14 4 0701-2018 16,893.05 6,886.47 9,006.58 313,948.56 2018 TOTALS: 31,786,10 14,075.75 17,710.35 5 01.01.2010 15,693.05 6,605.37 9,087.68 304,860.88 6 07-01-2019 15,893.05 6,500.64 9,392.41 296,466.47 2019 TOTALS: 31,786.10 13,308.01 18,480.09 7 01 01.2020 15,693.05 B,404.79 9,488.26 285,880.21 B 0701-2020 15.893.05 6,131.73 9,761.32 276,218.89 2020 TOTALS: 31,788.10 12,536.62 19,249.68 9 01-01-2021 15,893.05 5,987.62 9,905.53 266,313.96 10 07-01-2021 15,893.05 5,678.68 10,214.37 256,096.99 1 2021 TOTALS: 31,786.10 11,688.20 20,119.90 11 01-01-2022 16,893.05 B,551.38 10,341.67 245,757.32 12 07.01-2022 15,69305 5.240.35 10,662.70 235,104.62 2022 TOTALS: 31.786.10 10,791.73 20,994.37 13 01-01-2023 15,693.05 5,096.30 10,796.75 224,307.87 14 07-01-2023 15,89305 4,762.98 11,110.07 213,197.80 2023 TOTALS: 31.786-10 9,879.29 21.906.82 15 01-01-2024 16,893.05 4,621.43 11,271.62 201,926.18 1 16 07-01.2024 16,893.05 4,329.52 11,563.53 190,362.66 2024 TOTALS: 31,788.10 8,950.95 22,835.16 17 01-01-2025 15,893.05 4,126.44 11.,786.51 178,596.04 18 07-01.2026 15,893.05 3,608.25 12,084.80 166,511.24 1 2025 TOTALS: 31.786.10 7.934.69 23,851.41 19 0101.2026 15,893.05 3,609.42 12,283.63 154,227.61 20 07-01-2026 16,693.05 3,288.64 12,604.41 141,623.20 2026 TOTALS: 31.786.10 61898.06 24,688.04 1 21 0101-2027 15,693.05 3,069.93 12,823-12 128,800.08 22 07-01-2027 15,893.05 2,748.44 13,146.61 115,663.47 2027 TOTALS: 31,786.10 B.816.37 25.969.73 23 01-01-2028 15,893.05 21506.89 13,388.06 102,267.41 24 0701-2028 15,893.05 2.192.73 13,700.32 88,567.09 2028 TOTALS: 31,786.10 4,699.72 27.086.38 25 0101-2029 15,893.05 1,919.84 13,973.21 74,593.88 26 07-01-2029 15,893.06 1,690.69 14,302.46 60,291.42 ' 2029 TOTALS: 31.796.10 3,510.43 28.275,67 27 01.01-2030 15,893.05 1,306.92 14,586.13 45,705.29 5 1 ! ! 28 07-012030 16,893.05 974.59 14,918.48 30,786.83 2030 TOTALS: 31.786.10 2,281.51 29,504.69 29 01-01.2031 16,893.05 669.36 15,215.69 15,601.14 30 07-012031 16,69105 331.81 15,561.K 0.00 ! 2031 TOTALS: 3},786.10 899.27 30,786.83 TOTALS: 476,781.50 137,041,50 339.750.00 ! ! ! ! ! ! ! 6 1 1 1 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE 1,the undersigned, being the duly qualified and acting recording officer of Jefferson County, Montana(the "County"), hereby certify that the attached resolution is a true copy of a Resolution No. a9 •.1015 entitled: "RESOLUTION RELATING TO $334,750 RURAL ' SPECIAL IMPROVEMENT DISTRICT NO. 2510 BONDS; FIXING THE FORM AND DETAILS AND PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR" (the"Resolution'), on file in the original records of the County in my legal custody; that the Resolution was duly adopted by the Board of County Commissioners of the County at a meeting on November 3, 2015, and that the meeting was duly held by the Board of County Commissioners 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 certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: Con ,m i 4S i on¢r S ' yVlia-1l.QX, � Igor-Fy✓�a.v, w-I�;r`sc.f., ; voted against the same: ; abstained from voting thereon: ; or were absent: WITNESS my hand and seal officially this day of November, 2015. (SEAL) County Clerk and Recorder RESOLUTION NO. :n•Aoi!' RESOLUTION RELATING TO$339,750 RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 BONDS; FIXING THE FORM AND DETAILS AND PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR BE IT RESOLVED by the Board of County Commissioners (the`Board") of Jefferson ' County, Montana(the"County"), as follows: Section 1. Recitals. It is hereby found, determined and declared as follows: 1.01. Resolution of Intention. By Resolution No. 18-2014, duly adopted by the Board on June 10, 2014 (the"Resolution of Intention"),this Board declared its intention to create Rural Special Improvement District No. 2510 (Jack Mountain Estates) (the "District") for the purpose of financing costs of certain public improvements of special benefit to the properties within the District and paying incidental costs. The Resolution of Intention designated the number of the District, described the boundaries thereof, stated whether the District was an extended district and stated the general character of the improvements to be made (the "Improvements")and an approximate estimate of the costs thereof, in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 12, Part 21, as amended (the "Act"). The Improvements consist of the Jackson Creek Road Improvements and the Jack Mountain Road Improvements. By the Resolution of Intention, this Board also declared its intention to cause the cost and expense of making the Improvements specially benefiting the District to be assessed against the properties included within the boundaries thereof in accordance with one or more methods of assessment authorized in Section 7-12-2151 of the Act and as set forth in the Resolution of Intention, with the Jackson Creek Road Improvements being assessed against all benefited properties in the District and the Jack Mountain Road Improvements being assessed against the Jack Mountain Estates Subarea. In the Resolution of Intention, this Board stated its intention to issue rural special improvement district bonds in one or more series and issued from time to time(the"Bonds") drawn against the District to pay the costs of the Improvements and incidental costs. This Board further found that it is in the public interest, and in the best interest of the County and the District,to secure payment of principal of and interest on the Bonds by the Rural Special Improvement District Revolving Fund of the County (the "Revolving Fund"), on the basis of the factors required to be considered under Section 7-12-2185 of the Act, and by a separate reserve account in the District Fund(the "District Reserve Account'). Those findings are hereby ratified and confirmed. 1.02. Notice. Notice of the passage of the Resolution of Intention was given by two publications, with at least six days between publications, in the Jefferson County Courier, ' Whitehall Ledger and the Independent Record, newspapers of general circulation published within the County. Notice of the passage of the Resolution of Intention was also mailed the same day the notice was first published to all persons, firms or corporations or the agents thereof having real property within the District, listed in their names upon the last completed assessment ' roll for State, county and school district taxes, at their last known addresses. The notice described the general character of the Improvements, stated the estimated cost of the Improvements and the method or methods of assessment of such costs against properties in the District, specified the time when and the place where the Board would hear and pass upon all protests made against the making of the Improvements or the creation or extension of the District, and referred to the Resolution of Intention as being on file in the office of the County ' Clerk and Recorder for a description of the boundaries of the District, all in accordance with the provisions of the Resolution of Intention, and included a statement that, subject to the limitations of Section 7-12-2182 of the Act, the general fund of the County may be used to provide loans to the Revolving Fund or a general tax levy may be imposed on all taxable property in the County to meet the financial requirements of the Revolving Fund. In the Resolution of Intention,the Board also declared its intention to reimburse the County for costs paid before issuance of the Bonds, as required by Section 1.150-2 of the Income Tax Regulations promulgated under the Internal Revenue Code. 1.03. Creation of District. At the time and place specified in the notice hereinabove described, this Board met to hear, consider and pass upon all protests made against the making of the Improvements and the creation of the District, and, after consideration thereof, it was determined and declared that insufficient protests against the creation or extension of the District or the proposed work had been filed in the time and manner provided by law by the owners of the property to be assessed for the Improvements in the District, and this Board did therefore by Resolution No. 24-2014, adopted on July 22, 2014 create the District in accordance with the Resolution of Intention, and confirm the findings it made with respect to the pledge of the Revolving Fund and the funding of the District Reserve Account in the Resolution of Intention. 1.04. Construction Contracts. The County will cause or has caused to be constructed certain Improvements as described in the Resolution of Intention. Plans, specifications, maps, profiles and surveys for construction of the Improvements to be constructed to benefit the District were prepared by the engineers acting for the County or by Great West Engineering, Inc., consulting engineers to the County, and were thereupon examined and approved by this Board. Advertisements for bids for construction of the Improvements were published in the official newspaper of the County in accordance with the provisions of Section 7-12-2131 of the Act, after which the bids theretofore received were opened and examined. After referring the bids to the engineers for the County it was determined that the lowest regular proposal for the furnishing of all work and materials required for constructing the Improvements in accordance with the approved plans and specifications was the following: Work Bidder Contract Price Roadway shaping, minor drainage improvements, Bullock Contracting, LLC $223,470.85 ' culvert installation and cleaning; and the addition of a double chip seal surface course A contract for the construction of the Improvements was therefore awarded to said bidder, whereupon the County and the successful bidder entered into a written contract for 2 ' construction of the Improvements upon the bidder having executed and filed bonds satisfactory to this Board and in the form and manner provided by Montana Code Annotated, Title 18, Chapter 2, Part 2, as amended. 1.05. Costs. It is currently estimated that the costs and expenses connected with and incidental to the formation of the District to be assessed against property in the District for the ' Improvements, including costs of preparation of plans, specifications, maps, profiles, engineering superintendence and inspection, preparation of assessment rolls, expenses of making the assessments, the cost of work and materials under the construction contracts and all other costs and expenses, including the deposits of proceeds in the District Reserve Account in the District Fund and in the Revolving Fund, are $339,750, as shown in the table below: ' Jackson Creek Jack Mountain Road Road Total All Improvements Improvements Improvements Construction $88,000.00 $165,000.00 $253,000.00 Engineering Design & Contt. Mgt. 11,500.00 25,000.00 36,500.00 Administration 1,760.00 3,300.00 5,060.00 ' District Reserve Account 2,230.00 4,460.00 6,690.00 Revolving Fund Deposit 5,850.00 11,150.00 17,000.00 Preliminary Engineering Planning 2,500.00 4,000.00 6,500.00 Bond Counsel 5,000.00 10,000.00 15,000.00 Total $116,840.00 $222,910.00 $339,750.00 The amount of$339,750 will be levied and assessed upon the assessable real property within the District on the basis described in the Resolution of Intention. This Board has jurisdiction and is required by law to levy and assess such amounts,to collect such special assessments and credit the same to the rural special improvement district funds created for the District,which funds are to he maintained on the official books and records of the County separate from all other County funds, within the Rural Special Improvement District No. 2510 Fund (the"District Fund") for the payment of principal and interest when due on the Bonds herein authorized. ' 1.06. Sale and Issuance of Bonds. For the purpose of financing the costs and expenses of making the Improvements, funding a deposit to the Revolving Fund (as hereinafter defined), funding a deposit to the District Reserve Account, and paying costs of issuance of the Bonds and ' other incidental costs,which are to be assessed against the property within the District as provided in the Resolution of Intention,this Board determined that it would be in the best interests of the County to sell the Bonds in a private negotiated sale. This Board authorized the County to enter into a bond purchase agreement (the"Bond Purchase Agreement')with Montana City Bank (the "Purchaser"), dated November 2, 2015,pursuant to which the Purchaser has agreed to purchase from the County the Bonds at a purchase price of$339,750 (representing the stated principal amount of the Bonds), at the interest rate set forth in Section 2.01 hereof and upon the further terms set forth in this Resolution. The Bonds evidence a loan made by the Purchaser to the County in the principal amount of$339,750. 3 ' The execution and delivery of the Bond Purchase Agreement is approved and ratified. In the event of any discrepancy between the Bond Purchase Agreement and this Resolution,this Resolution shall control. 1.07. Recitals. All acts, conditions and things required by the Constitution and laws of the State of Montana, including the Act, in order to make the Bonds valid and binding special ' obligations in accordance with their terms and in accordance with the terms of this Resolution have been done, do exist, have happened and have been performed in regular and due form,time and manner as so required. Section 2. The Bonds. ' 2.01. Principal Amount, Maturities, Denominations,Date,Interest Rates. For the purpose of paying the costs and expenses of making the Improvements, funding a deposit to the Revolving Fund, funding a deposit to the District Reserve Account, and paying costs of issuance of the Bonds and other incidental costs, and in anticipation of the collection of special assessments to be levied therefor, and in accordance with the proposal described in Section 1.07, the County shall forthwith issue and deliver to the Purchaser the Bonds, denominated"Rural Special Improvement District No. 2510 Bonds," in the aggregate principal amount of$339,750, payable solely from the District Fund. The Bonds shall be dated, as originally issued, and be registered as of or about November 17, 2015, have a term of approximately 15 years, commencing January 1, 2017 and ending July 1, 2031,unless earlier prepaid and redeemed, and shall bear interest from the date of original registration until paid or duly called for redemption at the rate of 4.30%per annum. 2.02. Principal and Interest Payment Dates. Principal of and interest on the Bonds shall be payable on each January 1 and July 1, commencing January 1, 2017,to the owners of record thereof as such appear on the bond register at the close of business on the fifteenth day of the ' immediately preceding month, whether or not such day is a business day. Upon the original delivery of the Bonds to the Purchaser and upon each subsequent transfer or exchange of a Bond pursuant to Section 2.04,the Registrar shall date each Bond as of the date of its authentication. 2.03. Method of Payment. The Bonds shall be issued only in fully registered form. The interest on and, upon surrender thereof at the principal office of the Registrar (as hereinafter ' defined),the principal of each Bond shall be payable by check or draft drawn on the Registrar. So long as the Bonds are evidenced by a single, fully registered bond, it shall not be necessary to present and surrender such bond upon any prepayment or redemption pursuant to Section 2.05, but the Registrar shall note in the bond register the prepayment of such principal payment. 2.04. Registration. The Board hereby appoints the County Treasurer,to act as bond ' registrar, transfer agent and paying agent(the "Registrar"). The Board reserves the right to appoint a bank, trust company or fiscal company as successor bond registrar,transfer agent or paying agent, as authorized by the Model Public Obligations Registration Act of Montana(the ' "Registration Act'), but the County agrees to pay the reasonable and customary charges of the Registrar for the services performed. This Section 2.04 shall establish a system of registration for the Bonds as defined by the Registration Act. The effect of registration and the rights and ' duties of the County and the Registrar with respect thereto shall be as follows: 4 ' (a) Bond Register. The Registrar shall keep at its principal office a bond register in which the Registrar shall provide for the registration of ownership of the Bonds and the registration of transfers and exchanges of the Bonds entitled to be registered, transferred or exchanged. (b) Transfer. Upon surrender to the Registrar for transfer of any Bonds duly t endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing and guaranteed by an"eligible guarantor institution" meeting the requirements of the Registrar,the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer of any Bonds or portion thereof selected or called for redemption. (c) Exchange. Whenever any Bond is surrendered by the registered owner for exchange,the Registrar shall authenticate and deliver one or more new Bond of a like aggregate principal amount, interest rate and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the County. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer,the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The County and the Registrar may treat the person in whose name any Bonds are at any time registered on the bond register as the absolute owner of such Bonds, whether such Bonds shall be overdue or not, for the purpose of ' receiving payment of, or on account of, the principal of and interest on such Bonds and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the County upon such Bonds to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer of a Bond or exchange of Bonds ' (except for an exchange upon the partial redemption of a Bond),the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or ' exchange. (h) Mutilated. Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost,the Registrar shall deliver a new Bond of like 5 ' amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges ' of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the ' Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the County and the Registrar shall be named as obligees. Any Bond so surrendered to the Registrar shall be canceled by it and evidence of such cancellation ' shall be given to the County. If the mutilated, destroyed, stolen or lost Bond has already matured or such Bond has been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. ' 2.05. Redemption. (a) Mandatory Redemption. If on any interest payment date there will be a balance in the District Fund after payment of the principal and interest due on the Bonds drawn against it, either from the prepayment of special assessments levied in the District or from the transfer of ' surplus money from the Construction Account to the Principal Account as provided in Section 3.02 or otherwise,the County Treasurer shall call for prepayment and redemption on the interest payment date the applicable portion of the outstanding Bonds in an amount which, together with ' the interest thereon to the interest payment date, will equal the amount of such funds on deposit in the District Fund on that date. The redemption price shall equal the amount of the principal amount of the Bonds to be prepaid and redeemed plus interest accrued to the date of redemption. ' (b) Optional Redemption. The Bonds are subject to redemption and prepayment, in whole or in part, at the option of the County from sources of funds available therefor other than ' those described in Subsection (a)of this Section 2.05 on the terms of this paragraph. The Bonds are subject to redemption, at the option of the County, in whole or in part, at a redemption price equal to the principal amount thereof to be redeemed plus interest accrued to the redemption date, without premium, on any date selected by the County; provided that such date may not be ' earlier than a date that is 30 days following written notice of redemption and prepayment from the County to the Purchaser of the Bonds. (c) Partial Redemption. If less than all of the Bonds are to be redeemed, Bonds shall be redeemed in order of the principal installments thereof. If less than all of a principal installment of the Bonds is to be redeemed and the Bonds are held by two or more registered owners,the ' Bonds of such installment shall be selected for redemption and repayment by the Registrar in a manner it deems fair. Upon prepayment in part, the remaining principal amount of the Bonds will be reamortized over the remaining term at 4.30%per annum in equal or substantially equal ' principal and interest installments. (d) Notice and Effect of Redemption. The date of redemption and prepayment and the ' principal amount of the Bonds shall be fixed by the County Treasurer, as Registrar,who shall give notice by first class mail,postage prepaid, to the owner or owners of such Bonds at their addresses appearing on the bond register, of the numbers of the Bonds or portions thereof to be 6 1 1 ' redeemed and the date on which payment will be made, which date shall be not less than 30 days after the date of mailing notice. On the date so fixed, interest on the Bonds or portions thereof so redeemed and prepaid shall cease. 2.06. Form. The Bonds shall be drawn in substantially the form set forth in Exhibit A hereto, and by this reference made a part hereof, with such modifications as are permitted by the ' Act and this Resolution. 2.07. Execution, Registration and Delivery. The Bonds shall be prepared under the ' direction of the County Clerk and Recorder and shall be executed on behalf of the County by the signatures of the Chair of the Board of County Commissioners,the County Treasurer and the County Clerk and Recorder and sealed with the official seal of the County; provided that the seal ' and all signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bonds, such signature or facsimile shall ' nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bonds shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a ' certificate of authentication on such Bonds has been duly executed by the manual signature of an authorized representative of the Registrar. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this ' Resolution. When the Bonds have been so executed, authenticated and registered,they shall be delivered by the Registrar to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed. ' 2.08. Application of Proceeds. From the proceeds of the Bonds the County Treasurer shall credit forthwith $17,000 to the Revolving Fund, as required by Section 7-12-2153 of the Act, $6,690 to the District Reserve Account, and the balance of such proceeds to the ' Construction Account in the District Fund to be used solely for the purposes described in Section 3.02. ' Section 3. District Fund: Maintenance Fund; Assessments. 3.01. District Fund. There is hereby created and established the fund designated as the ' "2015 Rural Special Improvement District No. 2510 Fund," which shall be maintained by the County Treasurer on the books and records of the County separate and apart from all other funds of the County (the"District Fund"). Within the District Fund there shall be maintained four ' separate accounts, designated as the Construction Account,the Principal Account, the Interest Account, and the District Reserve Account, respectively. ' 3.02. Construction Account. There shall be credited to the Construction Account in the District Fund the proceeds of the sale of the Bonds as provided in Section 1.05 (less amounts to be deposited in the Revolving Fund and the District Reserve Account). Any earnings on investment of money in a Construction Account shall be retained therein. All costs and expenses of constructing the Improvements in and for the benefit of the District, including costs of issuance of the Bonds, shall be paid from time to time as incurred and allowed from the ' Construction Account in accordance with the provisions of applicable law, and money in the 7 ' Construction Account shall be used for no other purpose;provided that upon completion of the Improvements and after all claims and expenses with respect to the Improvements have been fully paid and satisfied, any money remaining in said Construction Account shall be transferred ' to the Principal Account and used to redeem Bonds or portions thereof as provided in Section 3.03. ' 3.03. Principal Account and Interest Account. Money in the Principal Account and the Interest Account shall be used only for payment of the principal of and interest on the Bonds as such payments become due or to redeem Bonds or portions thereof. ' Upon collection of the installment of principal and interest due on November 30 and May 31 of each year on the special assessments to be levied with respect to the Improvements in the ' District, the County Treasurer shall credit to the Interest Account so much of said special assessments as is collected as interest payment and the balance thereof to the Principal Account. Any installment of any special assessment paid prior to its due date with interest accrued thereon ' to the next succeeding interest payment date shall be credited with respect to principal and interest payments in the same manner as other assessments are credited to the District Fund. All money in the Interest Account and the Principal Account shall be used first to pay interest due, ' and any remaining money shall be used to pay Bonds then due and, if money is available,to redeem Bonds or portions thereof in accordance with Section 2.05;provided that in addition any money transferred to the Principal Account from the Construction Account pursuant to Section ' 3.02 shall be applied to redeem Bonds to the extent possible on the next interest payment date for which notice of redemption has been properly given pursuant to Section 2.05. Redemption of Bonds or portions thereof shall be in chronological order of payments as provided in Section ' 2.05, and interest shall be paid from the Interest Account as accrued on such principal amounts to the date of redemption, in accordance with the provisions of Section 7-12-2174 of the Act. 3.04. District Reserve Account. Money in the District Reserve Account shall be applied ' on any interest payment date to payment of principal of and interest on the Bonds if funds on hand in the Principal Account and the Interest Account are insufficient therefor. Funds in the District Reserve Account must be used for such purpose before a loan is made by the Revolving ' Fund therefor. If money is on hand in the District Reserve Account and all Bonds have been paid or discharged as provided in Section 7, such money shall be transferred to the Revolving Fund, as required by Section 7-12-2153(3). 3.05. Loans from Revolvine Fund. The Board shall annually or more often if necessary issue an order authorizing a loan or advance from the Revolving Fund to the District Fund in an amount sufficient to make good any deficiency then existing in the Interest Account and issue an order authorizing a loan or advance from the Revolving Fund to the District Fund in an amount sufficient to make good any deficiency then existing in the Principal Account, in each case to the extent that money is available in the Revolving Fund; provided,however,that at the time any such loan or advance is to be made,the District Reserve Account shall have been or shall be depleted on the next interest payment date. A deficiency shall be deemed to exist in a Principal Account or an Interest Account if the money on deposit therein, together with any funds on deposit in the District Reserve Account, on any December 15 or June 15 (excluding amounts in the Principal Account representing prepaid special assessments) is less than the amount 8 ' necessary to pay Bonds due (other than upon redemption), and interest on all Bonds payable, on the next succeeding interest payment date. ' Pursuant to Resolution No. 17-2007,adopted by the Board of County Commissioners on July 3, 2007, the County has undertaken and agreed to provide funds for the Revolving Fund by levying such tax or making such loan from the General Fund as authorized by Section 7-12-2182 ' of the Act. In the event that the balance on hand in the Revolving Fund fifteen days prior to any date when interest is due on rural special improvement district bonds of the County is not sufficient to make good all deficiencies then existing in the rural special improvement district funds for which the County has covenanted to make loans from the Revolving Fund,the balance on hand in the Revolving Fund shall be allocated to the funds of the rural special improvement districts in which such deficiencies then exist in proportion to the amounts of the deficiencies on ' the respective dates of receipt of such money, until all interest accrued on such rural special improvement district bonds of the County has been paid. On any date when all accrued interest on rural special improvement district bonds of the County payable from funds for which the ' County has covenanted to make loans from the Revolving Fund has been paid,any balance remaining in the Revolving Fund shall be lent or advanced to the rural special improvement district funds for payment and redemption of bonds to the extent the rural special improvement ' district funds are deficient for such purpose, and, if money in the Revolving Fund is insufficient therefor, pro rata, in an amount proportionate to the amount of such deficiency. ' The County hereby determines, covenants and agrees to levy the property tax described in the immediately preceding paragraph to provide funds for the Revolving Fund so long as the Bonds are outstanding to the extent required under the provisions of this Resolution and the Act, even though such property tax levy may, under applicable law, require that property tax levies of the County for other purposes be reduced correspondingly. 3.06. District Maintenance Fund. Pursuant to the Resolution of Intention and the ' resolution creating the District, Maintenance District No. 2509M was created coextensive with the boundaries of the District for the purpose of providing a mechanism to pay the costs of maintaining the Improvements. There is hereby created and established the District Maintenance ' Fund designated as the 'Rural Special Improvement District No. 2509M Maintenance Fund," which shall be maintained by the County Treasurer on the books and records of the County separate and apart from all other funds of the County. The District Maintenance Fund will be 1 funded by special assessments as described in Section 4.03 below. Section 4. Covenants. The County covenants and agrees with the owner or owners from ' time to time of the Bonds that until the Bonds and interest thereon are fully paid: 4.01. Compliance with Resolution. The County will hold the District Fund,the District Reserve Account, and the Revolving Fund as trust funds, separate and apart from all of its other funds, and the County, its officers and agents, will comply with all covenants and agreements contained in this Resolution. The provisions hereinabove made with respect to the District Fund, ' the District Reserve Account, and the Revolving Fund are in accordance with the undertaking and agreement of the County made in connection with the sale of the Bonds as set forth in Section 1.06. 9 1 4.02. Construction of Improvements. The County will do all acts and things necessary to enforce the provisions of the construction contracts and construction bonds referred to in Section 1.04 and to ensure the completion of the Improvements for the benefit of the District in accordance with the plans and specifications and within the time therein provided, and will pay all costs thereof promptly as incurred and allowed, out of the Construction Account in the District Fund and within the amount of the proceeds of the Bonds appropriated thereto. 4.03. Levy of Assessments. ' (1) Debt Service on Bond. The County will do all acts and things necessary for the final and valid levy of special assessments upon all assessable real property within the boundaries of the District benefited by the Improvements in accordance with the Constitution and laws of the State of Montana and the Constitution of the United States in an aggregate principal amount not less than $339,750. Such special assessments shall be levied on the basis or bases prescribed in the Resolution of Intention, and shall be payable in equal semiannual installments of principal ' and interest over a period of 15 years, at an annual rate of 4.80%, which is equal to the sum of: (i)the average annual interest rate borne by the then-outstanding Bonds(i.e., 4.30%), plus(ii) one-half of one percent(0.50%)per annum. The assessments to be levied will be payable on the ' 30th day of November in each of the years 2016 through 2030, and on the 31st day of May in the years 2017 through 2031, inclusive, if not theretofore paid, and shall become delinquent on such date unless paid in full. The initial assessment will be applied to pay interest on the Bonds from ' the date of delivery of the Bonds through January 1, 2017. The assessments shall constitute a lien upon and against the property against which they are made and levied, which lien may be extinguished only by payment of the assessment with all penalties, cost and interest as provided ' in Section 7-12-2168 of the Act. No tax deed issued with respect to any lot or parcel of land shall operate as payment of any installment of the assessment thereon which is payable after the execution of such deed, and any tax deed so issued shall convey title subject only to the lien of ' said future installments, as provided in Montana Code Annotated, Section 15-18-214. (2) Maintenance. The Board ratifies and affirms its determination made in the Resolution of Intention to assess initially$658 per lot,tract or parcel in the Jack Mountain Estates Subarea ' for the first fiscal year of the District in which assessments are due and owing. Special assessments collected for maintenance shall be deposited in the District Maintenance Fund and applied to the costs of maintaining the Jack Mountain Road Improvements. Each year the ' County will determine the annual costs for the maintenance of the Jack Mountain Road Improvements and may adjust the annual maintenance assessment in accordance with Section 7- 12-2161, M.C.A., after a public hearing. ' 4.04. Reassessment. If at any time and for whatever reason any special assessment or tax herein agreed to be levied is held invalid,the County and this Board, its officers and ' employees, will take all steps necessary to correct the same and to reassess and re-levy the same, including the ordering of work, with the same force and effect as if made at the time provided by law, ordinance or resolution relating thereto, and will reassess and re-levy the same with the ' same force and effect as an original levy thereof, as authorized in Section 7-12-2165 of the Act. Any special assessment, or reassessment or re-levy shall, so far as is practicable, be levied and 10 1 collected as it would have been if the first levy had been enforced including the levy and collection of any interest accrued on the first levy. ' If proceeds of the Bonds, including investment income thereon, are applied to the redemption of such Bonds, as provided in Sections 7-12-2173 and 7-12-2174 of the Act, or if refunding bonds are issued and the principal amount of the outstanding Bonds is decreased or increased, the County will reduce or increase, respectively,the assessments levied in the District and then outstanding pro rata by the principal amount of such prepayment or the increment above or below the outstanding principal amount of bonds represented by the refunding bonds. ' The County and this Board, its officers and employees will reassess and re-levy such assessments, with the same effect as an original levy, in such reduced or increased amounts in accordance with the provisions of Sections 7-12-2158 and 7-12-2159 of the Act. 4.05. Absence of Litigation. There is now no litigation pending or, to the best knowledge of the County, threatened questioning the validity or regularity of the creation of the District, the contracts for construction of the Improvements or the undertaking and agreement of the County to levy special assessments therefor and to make good any deficiency in the collection thereof through the levy of taxes for and the making of advances from the Revolving ' Fund, or the right and power of the County to issue the Bonds or in any manner questioning the existence of any condition precedent to the exercise of the County's powers in these matters. if any such litigation should be initiated or threatened, the County will forthwith notify in writing ' the Purchaser, and will furnish the Purchaser a copy of all documents, including pleadings, in connection with such litigation. ' 4.06. Waiver of Penalty and Interest. The County covenants not to waive the payment of penalty or interest on delinquent assessments levied on property in the District for costs of the Improvements, unless the County determines, by resolution of the of the Board of County Commissioners, that such waiver is in the best interest of the owner or owners of the outstanding Bonds. Section 5. Tax Matters. ' 5.01. Use of Improvements. The Improvements will be owned and operated by the County and available for use by members of the general public on a substantially equal basis. ' The County shall not enter into any lease, use or other agreement with any non-governmental person relating to the use of the Improvements or security for the payment of the Bonds which might cause the Bonds to be considered"private activity bonds" or"private loan bonds"within ' the meaning of Section 141 of the Internal Revenue Code of 1986, as amended (the"Code"). 5.02. General Covenant. The County covenants and agrees with the owner or owners ' from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become includable in gross income for federal income tax purposes under the Code and applicable ' Treasury Regulations (the"Regulations"), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become includable in gross income for federal income tax purposes under the Code and the Regulations. 11 5.03. Arbitrage Certification. The Chair of the Board of County Commissioners, the County Treasurer and the County Clerk and Recorder,being the officers of the County charged with the responsibility for issuing the Bonds pursuant to this Resolution, are authorized and ' directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b)of the Regulations, stating that on the basis of facts,estimates and circumstances in existence on the date of issue and delivery of the Bonds, it ' is reasonably expected that the proceeds of the Bonds will be used in a manner that would not cause the Bonds to be"arbitrage bonds" within the meaning of Section 148 of the Code and the Regulations. ' 5.04. Arbitrage Rebate Exemption. ' (a) The County hereby represents that the Bonds qualify for the exception for small governmental units to the arbitrage rebate provisions contained in Section 148(0 of the Code. Specifically, the County represents: ' (1) Substantially all (not less than 95%) of the proceeds of the Bonds (except for amounts to be applied to the payment of costs of issuance or representing accrued ' interest) will be used for local governmental activities of the County. (2) The aggregate face amount of all "tax-exempt bonds"(including warrants, contracts, leases and other indebtedness, but excluding private activity bonds and current ' refunding bonds) issued by or on behalf of the County and all subordinate entities thereof during 2015 is not reasonably expected to exceed $5,000,000. To date in 2015,the County has issued no such tax-exempt bonds. (b) If notwithstanding the provisions of paragraph (a)of this Section 5.04, the arbitrage rebate provisions of Section 148(f) of the Code apply to the Bonds,the County hereby covenants ' and agrees to make the determinations, retain records and rebate to the United States the amounts at the times and in the manner required by said Section 148(f). ' 5.05. Information Reporting. The County shall file with the Secretary of the Treasury, not later than February 15, 2016, a statement concerning the Bonds containing the information required by Section 149(e) of the Code. 5.06. "Qualified Tax-Exempt Obligations." Pursuant to Section 265(b)(3)(B)(ii) of the Code,the County hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code. The County has not designated under Section 265(b)(3)of the Code any obligations in 2015 other than the Bonds. The County hereby represents that it does not anticipate that obligations bearing interest not includable in gross ' income for purposes of federal income taxation under Section 103 of the Code (including refunding obligations as provided in Section 265(b)(3) of the Code and including"qualified 501(c)(3)bonds" but excluding other"private activity bonds," as defined in Sections 141(a) and ' 145(a) of the Code)will be issued by or on behalf of the County and all "subordinate entities"of the County in 2015 in an amount greater than $10,000,000. 12 Section 6. Authentication of Transcript. The officers of the County are hereby authorized and directed to furnish to the Purchaser and to Bond Counsel certified copies of all proceedings relating to the issuance of the Bonds and such other certificates and affidavits as ' may be required to show the right, power and authority of the County to issue the Bonds, and all statements contained in and shown by such instruments, including any heretofore furnished, shall constitute representations of the County as to the truth of the statements purported to be shown thereby. Section 7. Discharge. ' 7.01. General. When the liability of the County on the Bonds issued under and secured by this Resolution has been discharged as provided in this Section 7, all pledges, covenants and other rights granted by this Resolution to the owners of such obligations shall cease. 7.02. Payment. The County may discharge its liability with reference to the Bonds or installment of principal thereof and interest thereon which is due on any date by depositing with the Registrar on or before that date funds sufficient, or, if a County officer is the Registrar, mailing to the registered owner of such Bond a check or draft in a sum sufficient and providing ' proceeds available, for the payment thereof in full; or if any installment of principal of and interest on the Bonds shall not be paid when due, the County may nevertheless discharge its liability with reference thereto by depositing with the Registrar funds sufficient, or, if a County officer is the Registrar, by mailing to the registered owner thereof a check or draft in a sum sufficient and providing proceeds available, for the payment thereof in full with interest accrued to the date of such deposit or mailing. ' 7.03. Prepayment. The County may also discharge its obligations with respect to the Bonds or any installment of the principal thereof and interest thereon called for prepayment and redemption on any date when they are prepayable according to their terms, by on or before that date depositing with the Registrar funds sufficient, or, if a County officer is the Registrar, mailing to the registered owner of such Bond a check or a draft in a sum sufficient and providing proceeds available, for the payment of the principal, interest and redemption premium, if any, which are then due; provided that notice of such redemption has been duly given as provided herein or irrevocably provided for. ' 7.04. Escrow. The County may also at any time discharge its liability in its entirety with reference to the Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an ' escrow agent for this purpose, cash or securities that are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without reinvestment, to provide funds sufficient to pay all principal and interest to become due on all Bonds on or before maturity or, if the Bonds has been duly called for redemption or notice of such redemption has been irrevocably provided for, on or before the designated redemption date. ' 7.05. Irrevocable Deposits. If an officer of the County is the Registrar, any deposit made under this Section 7 with the Registrar shall be irrevocable and held for the benefit of the owner or owners of Bonds in respect of which such deposits have been made. 13 ' Section 8. Repeals and Effective Date. 8.01. Repeal. All provisions of other resolutions and other actions and proceedings of ' the County and this Board that are in any way inconsistent with the terms and provisions of this Resolution are repealed, amended and rescinded to the full extent necessary to give full force and effect to the provisions of this Resolution. ' 8.02. Effective Date. This Resolution shall take effect immediately upon its passage and adoption by this Board. ' PASSED AND ADOPTED by the Board of County Commissioners of Jefferson County, Montana,this 3rd day of November, 2015. JEFFERSON COUNTY BOARD OF COUNT�Y� COMMISSIONERS Bob Mullen, Chairman ' ATTEST: _ Bonnie Ramey, Clerk and Recorde 14 EXHIBIT A UNITED STATES OF AMERICA ' STATE OF MONTANA ' JEFFERSON COUNTY RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 BONDS Interest at the rate per annum specified below, payable on the 1"day of January and the 1st day of July in each year, commencing January 1,2017. No. R-1 $339,750.00 ' Rate Final Payment Date Date of Original Issue 4.30% July 1, 2031 November 17, 2015 REGISTERED OWNER: MONTANA CITY BANK ' PRINCIPAL AMOUNT: THREE HUNDRED THIRTY-NINE THOUSAND SEVEN HUNDRED FIFTY DOLLARS AND NO/100 ' FOR VALUE RECEIVED, Jefferson County, Montana (the "County"), will pay to the registered owner identified above, or registered assigns, installments of principal and interest ' described below in this paragraph, solely from the revenues hereinafter specified, as authorized by Resolution No. Ac)•,Ao 15 , adopted November 3, 2015 (the "Resolution"), all subject to the provisions hereinafter described relating to the prepayment and redemption of this Bond before maturity, in whole or in part. This Bond bears interest at the rate per annum specified above from the date of original issue specified above, or from such later date to which interest hereon has been paid or duly provided for, until the Final Payment Date specified above or an earlier ' date on which this Bond shall have been duly called for redemption in full by the County Treasurer and prepaid in full. Principal of and interest on this Bond are payable semiannually on the 1st day of January and the 1 st day of July in each year, commencing January 1, 2017 and concluding July 1, 2031, in accordance with the debt service schedule attached hereto as Schedule 1. The owner of record of this Bond is the owner appearing as such in the bond register as of the close of business on the fifteenth day (whether or not a business day) of the ' month immediately preceding a semi-annual installment payment date. Interest on and, upon presentation and surrender hereof at the principal office of the bond registrar hereinafter named, the principal of this Bond are payable by check or draft drawn by the Registrar. The principal of and interest on this Bond are payable in lawful money of the United States of America. Interest ' on this Bond shall be calculated on the basis of a 365/365 day year. The County Treasurer shall initially serve as Registrar for this Bond. Terms used in this Bond with initial capital letters and not defined herein have the meanings given them in the Resolution. A-1 ' This Bond constitutes an issue that evidences a loan from the Purchaser to the County in the principal amount of $339,750 (the "Bonds") for the purpose of financing the costs and expenses of making certain local improvements (the "Improvements") for the special benefit of property located in Rural Special Improvement District No. 2510 (the "District"), funding a deposit to the District Reserve Account, funding a deposit to the County's Rural Special Improvement District Revolving Fund (the "Revolving Fund") and paying costs of issuance of the Bonds and other incidental costs. The Bonds are issued pursuant to and in full conformity with the Constitution and laws of the State of Montana thereunto enabling, including Montana Code Annotated, Title 7, Chapter 12, Part 21, as amended (the "Act"), and ordinances and ' resolutions duly adopted by the governing body of the County, including the Resolution. The Bonds are issuable only as fully registered bonds payable in equal semiannual installments of principal and interest. This Bond evidences a loan made from the Purchaser to the County and constitutes a special, limited indebtedness of the County. This Bond is payable from the collection of a special tax or assessment levied upon all assessable real property within the boundaries of the District benefited by the Improvements, in an aggregate principal amount not less than $339.750, except as such amounts may be reduced or increased in accordance with provisions of Montana law. Such assessments constitute a lien ' against the property against which they are made and levied and are to be deposited into the 2015 Rural Special Improvement District No. 2510 Fund of the County (the "District Fund"). The County has established in the District Fund, and funded with certain proceeds of the Bonds, a District Reserve Account, from which moneys are to be applied to pay principal of and interest on the Bonds in the event collections of special assessments are insufficient therefor. There is no obligation for the County to replenish the District Reserve Account if funds are withdrawn ' therefrom. The Bonds are not general obligation of the County. The County has validly established the Revolving Fund to secure the payment of certain of its rural special improvement district bonds, including the Bonds. The County has also ' agreed, to the extent permitted by the Act, to issue orders annually, or more often as necessary, authorizing loans or advances from the Revolving Fund to the District Fund, in amounts sufficient to make good any deficiency in the District Fund to pay principal of or interest on the ' Bonds, to the extent that funds are available in the Revolving Fund, and to provide funds for the Revolving Fund by annually making a tax levy or loan from its general fund in an amount sufficient for that purpose, subject to the limitation that no such tax levy or loan may in any year ' cause the balance in the Revolving Fund to exceed ten percent of the principal amount of the County's then outstanding rural special improvement district bonds secured thereby and the durational limitations specified in the Act and provided that at any time such a loan or advance is to ' be made, the District Reserve Account shall have been or shall be depleted on the next interest payment date. While any property tax levy to be made by the County to provide funds for the Revolving Fund is subject to levy limits under current law, the County has agreed in the Resolution to levy property taxes to provide funds for the Revolving Fund to the extent described in this paragraph and, if necessary, to reduce other property tax levies correspondingly to meet applicable levy limits. ' The Bonds are subject to mandatory redemption in order of installments of principal and interest by the Registrar, on any interest payment date if, after paying all principal and interest ' A-2 then due on any Bonds,there are funds to the credit of the District Fund,from the prepayment of assessments levied in the District or from the transfer of surplus money from the Construction Account to the Principal Account or otherwise, for the redemption thereof, and in the manner provided for the redemption of the same. In addition, the Bonds are subject to redemption, in whole or in part, at the option of the County from sources of funds available therefor, at a redemption price equal to the principal amount thereof to be redeemed plus interest accrued to ' the redemption date, without premium, on any date selected by the County; provided that such date may not be earlier than a date that is 30 days following written notice of redemption and prepayment from the County to the Purchaser or the then-holder of the Bonds. The date of redemption and principal amount of Bond to be prepaid and redeemed shall be fixed by the County Treasurer, as Registrar, to give notice, by first class mail, postage prepaid, to the owner or owners of such Bond at their addresses appearing on the bond register, of the Bonds or portions thereof to be redeemed and the date on which payment will be made, which date shall not be less than 30 days after the date of mailing of notice. On the date so fixed interest on the Bonds or portions thereof so redeemed shall cease to accrue. Partial prepayments of this Bond will be applied in chronological order of installments of principal. For so long as there is only one owner of the Bonds, upon partial redemption and prepayment of this Bond, a new debt service schedule will replace the schedule attached hereto as Schedule 1 to reflect the ' reamortization in substantially equal semiannual installments of principal and interest of the remaining principal amount outstanding, and this Bond, with such substituted Schedule 1, shall continue in full force and effect. If there are two or more separate owners of the Bonds, upon partial redemption of the Bonds, a new Bond with a substituted Schedule 1 will be delivered to the registered owner of each such Bond without charge, each Bond showing reamortization in substantially equal semiannual installments of principal and interest of the then remaining ' principal amount outstanding. The Bonds have been designated by the County as "qualified tax-exempt obligations" pursuant to Section 265 of the Internal Revenue Code of 1986, as amended. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the County at the principal office of the Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or his attorney. Upon such transfer or exchange, the County will cause a new Bond to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such ' transfer or exchange. The County and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the County nor the Registrar shall be affected by any notice to the contrary. ' IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all things required to be done precedent to the issuance of this Bond have been properly done, A-3 1 ' happened and been performed in the manner prescribed by the laws of the State of Montana and the resolutions and ordinances of Jefferson County, Montana, relating to the issuance hereof. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by the manual signature of one of its authorized representatives. IN WITNESS WHEREOF, Jefferson County, Montana, by its governing body, has caused this Bond to be executed by the signatures of the Chair of the Board of County Commissioners and the County Treasurer and attested by the signature of the County Clerk and Recorder, and has caused the official seal of the County to be affixed hereto, and has caused this Bond to be dated as of the 17th day of November, 2015. Chair of Board of County Commissioners (SEAL) County Treasurer Attest: County Clerk and Recorder Dated: 201 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned herein. JEFFERSON COUNTY, MONTANA, as Registrar, Transfer Agent, and Paying Agent ' By ' County Treasurer A-4 1 r The following abbreviations,when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: ' TEN COM—as tenants UTMA...........Custodian............... in common (Cust) (Minor) ' TEN ENT— as tenants by the entireties under Uniform Transfers to Minors r JT TEN — as joint tenants Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . with right of (State) survivorship and r not as tenants in common Additional abbreviations may also be used. r ASSIGNMENT rFOR VALUE RECEIVED the undersigned hereby sells,assigns and transfers unto the within Bond and all rights and title thereunder, ' and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof,with full power of substitution in the premises. rDated: ' PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration, enlargement or any change whatsoever. SIGNATURE GUARANTEED rSignature(s)must be guaranteed by an "eligible guarantor institution"meeting ' the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934,as amended. A-5 r SCHEDULEI DiManaemem Dab: November 17,2016 Repayment Schedule: Installment Yrlerest Rate: 4.300 Ca c lotmn Medmd: 3661365 U.S,Rule Payment Paytnept Payment Interest Prindpal RMAIni g Nutber Oct. Amotmt Paid Paid Balance 1 01-01-2017 15,893.05 15,893.05 0.00 339.750.00 2 07.01-2017 15,693.06 7,801.96 8,091.09 331,658.91 2017 TOTALS: 31,786.10 23,695.01 8,091.09 3 01-01-2018 15,893.05 7,189.26 8,703.77 322,955.14 4 07.01-2018 15,893.05 6,866.47 9,006.58 313,948.66 2018 TOTALS: 31,786.10 14,075.75 17,710.35 5 01-01-2019 15,893.05 6,905.37 9.087.68 304,860.88 6 07-01-2019 16,693.05 6,600.64 9,392.41 296,468.47 2019 TOTALS: 31,786.10 13,306.01 18,490.09 7 01-01-2020 15,893.05 8,404.79 9,488.26 285,980.21 8 07-01-2020 15,893.05 6,131.73 9,761.32 276,218.89 2020 TOTALS: 31,786.10 12.536.52 19,249.58 9 01-01-2021 16,893.05 5,987.52 9,905.53 266,313.36 10 07.01.2021 15,893.05 5,678.68 10,214.37 256,098.99 1 2021 TOTALS: 31.786.10 11,666.20 20,119.90 11 01-01-2022 15,893.05 6,551.38 10,341.67 245,757.32 12 07.01-2022 15,893.05 5,240.35 10,662.70 235,104.62 2022 TOTALS: 31,786.10 10.791.73 20.994.37 13 01-01-2023 15,893.05 5,096.30 10,796.75 224,307,87 14 07-01-2023 16,893.05 4,782.98 11,110.07 213,197.80 2023 TOTALS: 31,796.10 9,879.29 21,906.82 15 01.01-2024 15,893.05 4,621.43 11,271.62 201,926.18 ' 16 07-01-2024 15,893.05 4,329.52 11,663.53 190,362.66 2024 70TALS: 31,786.10 8.960.95 22,836.15 17 01-01-2025 15,893.05 4,126.44 11,766.61 176,696.04 18 07-01-2025 15,893.05 3,808.25 12,084.80 166,511.24 ' 2025 T07ALS: 31,706.10 7,934.69 23,851,41 19 01-01-2026 15,893.05 3,609.42 12,283.63 164,227.61 20 07-01-2026 15,893.05 3,288.64 12,604.41 141,623.20 2026 TOTALS: 31,786.10 6.896.06 24,888,04 21 01-01-2027 15,893.05 3,069.93 12.823.12 128,800.08 22 07-01-2027 15.893.05 2,746.44 13,146.61 115,663.47 2027 TOTALS: 31.788.10 6,816.37 25,969.73 23 01-01-2028 15,893.05 2,506.99 13,366A6 102,267.41 24 07.01-2028 15,893.05 2,192.73 13,700.32 88,567.09 2028 TOTALS: 31.786.10 4,699.72 27.086.38 25 01-01-2029 15,893.05 1,919.84 13,973.21 74,593.86 26 07-01-2029 15,893.05 1,590.59 14,302.46 60,291.42 ' 2029 TOTALS: 31,786.10 3,510.43 28,275.67 27 01-01-2030 15,893.05 1,306.92 14,586.13 45,705.29 ' 28 07-01-2030 15,893.05 974.69 14,918.46 30,786.83 2030 TOTALS: 31,786.10 2,281.61 29.504.59 29 01-01-2031 15.893.05 667.36 15,225.69 15,561.14 30 07-01-2031 15,893.05 331.91 15,561.14 0.00 ' 2031 TOTALS: 31,786.10 999.27 30.786.83 TOTALS: 476,791.50 137.041,50 339,750.00 A-6 1 1 CERTIFICATE SHOWING DUE EXECUTION OF CONSTRUCTION CONTRACTS 1, Bonnie Ramey, the duly qualified and acting County Clerk and Recorder of Jefferson County, Montana, do hereby certify that the following construction contract for the construction of the improvements in Rural Special Improvement District No. 2510 has been duly executed by the Chair of the Board of County Commissioners and the County Clerk and Recorder on behalf of the County: Work Bidder Contract Price Roadway shaping, minor drainage improvements. Bullock Contracting, LLC $223,470.85 culvert installation and cleaning; and the addition of a double chip seal surface course The contract was placed on file in the office of the County Clerk and Recorder after being signed by the contractors, and the contractors have submitted executed payment and performance ' bonds in the form and manner provided for in Title 18, Chapter 1, Part 2, and Title 18, Chapter 2, Part 2, Montana Code Annotated. ' WITNESS my hand and the seal of the County this 17th day of November, 2015. County Clerk and Rec der (SEAL) 1 1 1 1 1 i 1 1 1 1 1 1 CERTIFICATE AS TO ORGANIZATION OF JEFFERSON COUNTY, MONTANA ' L the undersigned, being the duly qualified and acting Clerk and Recorder of Jefferson County, Montana (the "County'), and, as such, having custody of and access to the official ' records relating to the facts stated below, hereby certify that, according to such records and as ' known to me, the following statements are true and correct: 1. The County is a political subdivision of the State of Montana (the "State") and is now ' governed by the general laws of the State relating to counties with a commissioner form of ' government. Its population, according to the 2010 United States census, was 11,406, and its estimated current population is 11,512. 2. The County is governed by a Board of County Commissioners. The following named ' persons hold the offices set opposite their names and for the terms stated below: Name Office Term Began Term Ends Bob Mullen Commissioner, Chair 01/01/2014 12/31/2018 Leonard Wortman Commissioner 01/01/2011 12/31/2016 Cory Kirsch Commissioner 01/01/2015 12/31/2020 Mathew J. Johnson County Attorney 01/01/2015 12/31/2018 ' Bonnie Ramey Clerk and Recorder 0110112015 12/31/2018 Terri Kunz County Treasurer 11/14/2014 12/31/2018 3. Regular meetings of the Board of County Commissioners are held on Tuesday of each week at 1:30 p.m. 4. The following are all of the newspapers published in the County and the days of their ' publication: ' Name Days of Publication Whitehall Ledger Wednesday Boulder Monitor Wednesday Jefferson County Courier Wednesday 1 ' 5. There is no litigation threatened or pending questioning the organizational boundaries of the County or the right of any of the above-named persons to their respective offices or ' questioning the right and power of the County and its officers to issue bonds for any purpose or to levy, collect and apply taxes or other revenues for the payment of any bonds of the County. 6. The seal affixed below is the official corporate seal of the County. WITNESS my hand and the official seal this 17th day of November, 2015. and' County CIerk and Recor er (SEAL) ' 2 1 1 1 1 STATE OF MONTANA ) AFFIDAVIT AS TO SIGNATURES COUNTY OF JEFFERSON ) OF OFFICERS ' Affiants, being first duly sworn, upon oath depose and say that affiant BOB MULLEN is the duly qualified and acting Chair of the Board of County Commissioners, that affiant TERRI KUNZ is the duly qualified and acting County Treasurer, and that affiant BONNIE RAMEY is the duly qualified and acting County Clerk and Recorder of Jefferson County, Montana; that in such capacities, respectively, we have been authorized to execute $339,750 in aggregate principal amount of Rural Special Improvement District No. 2510 Bonds, of the County, dated, as originally issued, as of November 17, 2015; that the signatures subscribed to this affidavit are the proper signatures of such affiams as such Chair of the Board of County Commissioners, County Treasurer, and County Clerk and Recorder, respectively; that all signatures affixed to the Bonds are true and correct signatures; and that a duplicate original of this affidavit has been filed with the undersigned County Clerk and Recorder in accordance with the provisions of Montana Code Annotated, Section 2-16-114(2). Chair of the Board of County Commissioners County Treasurer County Clerk and ReecWer ' Subscribed and sworn to before me this /3 day of 2015. =ReWi N `UCH -__ Printed Name:_ 2n y� U IC fot the''=e-Ana Notary Public for the State of Montana :,u;itler,AbrL�°e issan E�ryi2s Residing at Bit , , Montana (N 15,2018 My Commission Expires: l0 •I S • 1 b 1 i $339,750 Rural Special Improvement District No. 2510 Bonds ' Jefferson County, Montana OFFICERS' CERTIFICATE We, Bob Mullen, Terri Kunz, and Bonnie Ramey, hereby certify that we are the duly ' qualified and acting Chair of the Board of County Commissioners, County Treasurer, and County Clerk and Recorder, respectively, of Jefferson County, Montana (the "County"), and, on behalf of the County, certify that: ' 1. True and correct facsimiles of the signatures of the Chair of the Board of County Commissioners, County Treasurer and the County Clerk and Recorder have been affixed to ' $339,750 Rural Special Improvement District No. 2510 Bonds, of the County, dated, as originally issued, as of November 17, 2015 (the "Bonds"). The Bonds are payable in semi- annual installments on the dates, bear interest at the rate, and are substantially in the form ' prescribed by Resolution No. 29-2015, duly adopted by the Board of County Commissioners of the County on November 3, 2015, entitled"Resolution Relating to $339,750 Rural Special Improvement District No. 2510 Bonds; Fixing the Form and Details and Providing for the ' Execution and Delivery Thereof and Security Therefor" (the "Resolution"). The Resolution is in full force and effect in the form it was adopted. The Bonds has been delivered to the County Treasurer, as Registrar, for authentication and delivery to Montana City Bank, as purchaser(the ' "Purchaser"). The Bonds is in fully registered form pursuant to a system of registration established by the Resolution. Capitalized terms used herein but not otherwise defined shall have the meanings given such terms in the Resolution. ' 2. The Bonds have been in all respects duly executed for delivery pursuant to authority conferred upon such officers; no obligations other than those described above have ' been issued pursuant to such authority; none of the proceedings or records that has been certified to the Purchaser or to the attorneys approving the legality of the issuance of the Bonds has been in any manner repealed, amended or changed except as shown by additional proceedings or ' records furnished each of them; and there has been no material adverse change in the financial condition of the County or the circumstances affecting the Bonds, except as shown by the materials so furnished. 3. No litigation or other judicial or administrative proceeding is now pending, or, to the best of our knowledge, threatened, in any way (i) restraining or enjoining the sale, issuance ' or delivery of the Bonds, (ii) questioning the organization of the County or the right of any officers of the County to their respective offices, (iii) questioning the right and power of officers of the County to deliver the Bonds or to borrow the funds evidenced thereby, (iv) questioning the ' validity of the creation of Rural Special Improvement District No. 2510 (the "District') or the work to be or already undertaken for the special benefit of the properties benefitted by the Improvements (as hereinafter defined) or any contract relating thereto, (v) challenging the ' validity of the levy of any special assessments to pay the principal of or interest on the Bonds, or (vi) questioning the levy of any taxes or the making of any loans to fund the County's Rural Special Improvement District Revolving Fund (the "Revolving Fund") or the pledge thereof to 1 the Bonds. No sufficient petition requesting a referendum has been filed with respect to the Resolution or any of the resolutions or official actions of the Board of County Commissioners ' authorizing the issuance and sale of the Bonds and the loan evidenced thereby or any proceedings preliminary thereto, including the resolutions ordering in the Improvements. ' 4. Pursuant to Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations applicable thereunder (the "Regulations"), we, as the officers of the County responsible for issuing the Bonds, hereby certify the present expectations of the County on the date hereof with respect to the Bonds are as follows: (a) The Bonds are being issued for the purpose of financing a portion of the ' costs of design, engineering, construction, and reconstruction of Improvements, including grading and shaping of road section, installing drainage structures where necessary, adding crushed base course gravel where necessary to reestablish the road section, and ' installing a double shot chip seal driving surface on Owl Court, Elk Drive, Eagle View Drive, Cougar Court, Bobcat Court, Bear Court, Antelope Court, Moose Drive, Ptarmigan Court, and Grouse Court within the Jack Mountain Estates Subdivision (the ' "Jack Mountain Road Improvements") and Jackson Creek Road (the "Jackson Creek Road Improvements"), all in Jefferson County. The Jack Mountain Road Improvements and the Jackson Creek Road Improvements (together,the "Improvements") constitute ' public roads of the County and are intended for use by members of the general public. (b) Based upon the most recent estimate of costs by Great West Engineering, ' Inc., of Helena, Montana, the County's engineer for the Improvements,the County has expended or expects to expend the following sums on the Improvements and related costs of financing: ' Jackson Creek Jack Mountain Road Road Total All ' Improvements Improvements Improvements Construction $88,000.00 $165,000.00 $253,000.00 ' Engineering Design & Const. Mgt. 11,500.00 25,000.00 36,500.00 Administration 1,760.00 3,300.00 5,060.00 Reserve Account 2,230.00 4,460.00 6,690.00 ' Revolving Fund Deposit 5,850.00 117150.00 17,000.00 Preliminary Engineering Planning 2,500.00 4,000.00 6,500.00 Bond Counsel 5,000.00 10.000.00 15,000.00 Total $116,840.00 $222,910.00 $339,750.00 (c) The County has heretofore entered into contracts for the Improvements, in the form of architectural or engineering services, site development or construction, in the sum of at least $17,000, which sum is not less than five percent of the net sale proceeds ' of the Bonds. (d) Work on the Improvements was completed no later than July 20, 2015. 2 1 ' (e) The County will receive a loan of$339,750.00 from the Purchaser, representing payment for the principal of the Bonds. ' (f) Of the amount the County will receive from the Purchaser, $301,060 will be used to pay the costs of the Improvements set forth in paragraph 4(b); $15,000 will be used to pay costs of issuance of the Bonds; $17,000 will be deposited in the Revolving Fund; and $6,690.00 will be deposited in the District Reserve Account. ' (g) The amount to be received by the County from the Purchaser(less the costs of issuance of the Bonds) and the amounts deposited in the Revolving Fund and District Reserve Account,plus investment earnings thereon (which are expected to be applied to reimbursing costs of the Improvements), does not exceed the amount to be spent by the County with respect to the Improvements. ' (h) The County expects to spend all of the sale proceeds of the Bonds on costs of the Improvements or costs of issuance of the Bonds by December 31, 2015, except the amounts deposited in the Revolving Fund and District Reserve Account. ' (i) The Bonds are not"hedge bonds" within the meaning of Section 149(g) of the Code. The County expects to spend not less than 85 percent of the spendable ' proceeds of the Bonds to pay costs of the Improvements within three years after the date hereof and less than 50 percent of the proceeds of the Bonds are invested in nonpurpose investments having a substantially guaranteed yield for four years or more. ' 0) Proceeds of the Bonds and investment income thereon to be used to finance or reimburse the County the costs of the Improvements and pay costs of issuance ' of the Bonds will be invested for a temporary period pursuant to Section 1.148-2(e)(2) of the Regulations ending on the earlier of. (i) three years from the date hereof(November 17, 2018), or (ii) the date that the Improvements would be completed in the exercise of ' due diligence and all costs thereof promptly paid. If, at the conclusion of such temporary period, proceeds of the Bonds and investment income thereon have not been allocated to the governmental purposes of the Bonds, such amounts will not be invested at a yield ' greater than the yield of the Bonds (4.2946731%), if and to the extent such restriction is necessary to prevent the Bonds from being arbitrage bonds within the meaning of Section 148 of the Code and Regulations unless the County determines to take advantage of ' Section 1.148-5(c) of the Regulations relating to yield reduction payments. (k) The Improvements have not been and are not expected to be sold or ' otherwise disposed of by the County during the term of the Bonds. The County expects that the Improvements will remain owned and operated by the County substantially in the manner in which they are now owned and operated for the indefinite period concluding ' not earlier than the final stated maturity date of the Bonds. (1) The Improvements regard public roads dedicated to the County. The County reasonably expects that during the term of the Bonds no private business use will be made of the Improvements and that no private payments or security will be made or furnished that would cause the Bonds to be a "private activity bond" within the meaning 3 ' of Section 141 of the Code and applicable Regulations. No proceeds of the Bonds are being or will be loaned to any nongovernmental person and the special assessments ' levied in respect of the Improvements meet the exception for tax assessment loans contained in Section 1.141-5(d) of the Regulations. The County reasonably expects that the Bonds will not be a private activity bond within the meaning of Section 141 of the ' Code. (m) No other obligations of the County (a) are being issued at substantially the same time as the Bonds, (b) are being sold pursuant to the same plan of financing as the Bonds, and (c) are reasonably expected to be paid from substantially the same source of funds (determined without regard to guarantees from unrelated parties) as will be used to ' pay the Bonds, within the meaning of Section 1.150-1(c) of the Regulations. (n) The yield of the Bonds, computed in accordance with Section 148 of the Code and applicable Regulations, is 4.2946731%per annum. (o) The principal of and interest on the Bonds are payable from the 2015 Rural Special Improvement District No. 2510 Fund (the "2015 District Fund") of the County. The County expects to use only the 2015 District Fund to pay the principal of and interest on the Bonds. The special assessments appropriated to the 2015 District ' Fund are expected to produce amounts sufficient to pay all principal of and interest on the Bonds when due. ' Whenever there will be money in the Principal Account and the Interest Account in the District Fund on any interest payment date, after paying principal of and interest on the Bonds then due, either from the prepayment of special assessments levied on the ' benefited property or from the transfer of surplus money from the Construction Account to the Principal Account, the County Treasurer is required by law to call for prepayment and redemption of that portion of the outstanding principal amount of the Bonds that, ' together with the interest thereon to the date of redemption, will equal the amount on hand in the Principal Account and Interest Account on that date. The Principal Account and Interest Account will be used primarily to achieve a proper matching of revenues and ' debt service within each bond year and will be fully depleted at least once a year on July 1 in each bond year(the 12-month period ending on July 1), except for a reasonable carryover amount which is not expected to exceed the greater of(i) the earnings on ' money in the Principal Account and Interest Account for the preceding bond year or (ii) one-twelfth of the annual debt service on the Bonds in the preceding bond year. Consequently, the amounts on deposit in the Principal Account and Interest Account ' constitute a"bona fide debt service fund" for the Bonds within the meaning of Section 1.148-1(b) of the Regulations. Consequently, such amounts maybe invested at an unrestricted yield for a temporary period of 13 months. (p) On the first day of each month commencing December 1, 2015, the County Treasurer will determine the amount on hand in the Principal Account and ' Interest Account in the District Fund. If any amount has been on deposit therein for a period longer than 13 months, such amount will not be invested at a yield greater than the yield of the Bonds (4.2946731%), except as provided in paragraph 4(s) hereof, if and to 4 1 1 ' the extent such restriction is necessary to prevent the Bonds from being arbitrage bonds within the meaning of Section 148 of the Code and the Regulations. (q) From the proceeds of the Bonds, $6,690.00 have been deposited in the District Reserve Account in the District Fund. Funds in the District Reserve Account are ' to be applied on any payment date to payment of principal of and interest on the Bonds on the installment payment dates thereof if funds on hand in the Principal and Interest Accounts are insufficient therefor. Funds in the District Reserve Account must be used ' for such purpose before a loan is made by the Revolving Fund therefor. There is no requirement under the Resolution to replenish any money withdrawn from the District Reserve Account. Money in the District Reserve Account may be used to pay the final ' principal and interest payment on the Bonds to the extent payable from the Principal Account or Interest Account, as allowed in Section 7-12-4169, M.C.A. If money is on hand in the District Reserve Account and all Bonds have been paid or discharged, such ' money is to be transferred to the Revolving Fund. (r) The County has established the Revolving Fund pursuant to Montana ' Code Annotated, Sections 7-12-2181 to 7-12-2186, as amended, to secure certain outstanding rural special improvement district bonds of the County, including the Bonds. The County shall deposit in the Revolving Fund proceeds of the Bonds in the amount of ' $17,000.00. The amount on deposit therein, after giving effect to the deposit from the proceeds of the Bonds, is $95,820.40. This amount secures rural special improvement district bonds of the County, including the Bonds, issued in the original aggregate ' principal amount of$1,659,750, of which $1,174,750 is outstanding. Unless the Regulations otherwise require, the County will allocate amounts on ' hand in the Revolving Fund, as a commingled reserve fund as provided in Section 1.148- 6(e)(6)(i) of the Regulations, to outstanding issues of rural special improvement district bonds secured thereby in proportion to their respective original principal amounts. The County shall reallocate funds on deposit in the Revolving Fund to outstanding issues of bonds secured thereby upon the issuance or retirement of a series of bonds secured thereby and, if not done otherwise, at least every three years. The pledge of the Revolving Fund described in this Section is required for the marketability of the Bonds, including to induce the Purchaser to make the loan evidenced ' by the Bonds, and constitutes a"reasonably required reserve" for the Bonds within the meaning of Section 148(d) of the Code and Section 1.148-2(f) of the Regulations to the extent that the sum of the amount on deposit in the Revolving Fund allocable to the Bonds plus the amount on hand in the District Reserve Account(such sum, the "Reserve Amount") does not exceed the Reserve Limitation (as hereinafter defined). For purposes of this paragraph 4(q), the "Reserve Limitation" is equal, as of the date of calculation, to ' the lesser of. (i) ten percent (10%) of the proceeds of the Bonds ($33,975.00); (ii) the maximum amount of principal and interest payable on the Bonds in the current or any future calendar year of the County ($31,786.10), and(iii) 125% of the average debt ' service on the Bonds payable in any calendar year of the County during the term of the Bonds ($39,732.63). 5 1 1 ' Any portion of the Reserve Amount that is in excess of the Reserve Limitation shall not be invested at a yield in excess of the yield of the Bonds (4.2946731%), except ' as permitted by paragraph 4(s) hereof. As of the date hereof, the Reserve Amount is equal to the sum of(i) the amount in the Revolving Fund that is allocated to the Bonds (i.e., $19,614.39) plus (ii) the amount in the District Reserve Account(i.e., $6,690), such sum being $26,304.39. The Reserve Limitation is $31,786.10. (r) Except as described in this Section 4, the County has not created or established, and does not expect to create or establish, any sinking or similar fund which is reasonably expected to be used to pay debt service on the Bonds or which is pledged as collateral to secure the Bonds. No amounts in any other funds or accounts of the County ' are reserved for or pledged to the payment of debt service on the Bonds or will be used to replace funds that will be used to pay debt service on the Bonds. ' (s) An aggregate amount not to exceed the "minor portion" amount for the Bonds ($16,987.50) may be invested pursuant to Section 148(e) of the Code without restriction as to yield. To the extent (i) the proceeds of the Bonds and investment income thereon in the 2015 Construction Account in the 2015 District Fund are invested beyond the date described in paragraph 40) hereof, (ii) an amount has been on hand in the 2015 Principal Account and 2015 Interest Account for a period longer than 13 months as described in paragraph 4(p) and (iii)the Reserve Amount exceeds the Reserve Limitation described in paragraph 4(q)hereof, such amounts in the aggregate may be invested up to the minor portion amount at a yield greater than the yield of the Bonds. (t) The Bonds will not be outstanding longer than necessary, within the meaning of Section 1.148-1(c)(4) of the Regulations. The weighted average maturity of ' the Bonds (9.374 years) does not exceed 120 percent of the average reasonably expected economic life of the Improvements. Such average reasonably expected economic life is not less than 10 years. (u) The sale proceeds of the Bonds do not exceed the amount necessary to achieve the governmental purposes of the Bonds. No portion of the Bonds is issued ' solely for the purpose of investing such portion at a materially higher yield than the yield on the Bonds. None of the proceeds of the Bonds will be used directly or indirectly to replace funds which were used directly or indirectly to acquire obligations with a yield ' that is materially higher than the Yield of the Bonds. (v) We have investigated the facts, estimates and circumstances surrounding ' the issuance of the Bonds, which are described summarily in this Certificate. To the best of our knowledge and belief, such facts, estimates and circumstances are correct and complete and the County's expectations as to future events, which are based thereon, are ' in all respects reasonable and made in good faith. To the extent that the expectations of the County are based upon estimates and representations made by others, including the Purchaser, we have examined such estimates and representations and consider them to be ' reasonable and correct. Any statements in this Certificate involving future events, whether or not expressly so stated, are intended as expectations of the County and not as representations of fact. On the basis of such facts, estimates and circumstances, it is 6 ' expected that the proceeds of the Bonds will be used in a manner that would not cause the Bonds to be considered"arbitrage bonds" within the meaning of Section 148 of the Code, ' and there are no present facts, estimates or circumstances which would change the foregoing conclusion. ' (w) As determined in Section 5.04 of the Resolution, the Bonds are excepted from the rebate provisions of Section 148(f) of the Code. ' 5. The provisions of this Section 5 are intended to establish and provide for compliance by the County with Treasury Regulations, Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those proceeds ' which will be used by the County to reimburse itself for any expenditure with respect to the Improvements which the County paid or will have paid prior to the issuance of the Bonds (a "Reimbursement Expenditure")- The County hereby certifies and covenants as follows: (a) Except as hereinafter provided, on or before the date of payment of any Reimbursement Expenditure, the County made on June 10, 2014, a written declaration of the County's official intent (the"Declaration") which complies with the provisions of ' Section 1.150-2(d) and (e) of the Reimbursement Regulations. The Declaration need not cover,however,Reimbursement Expenditures: (i) to be paid or reimbursed from sources other than the Bonds, (ii) constituting "preliminary expenditures" (within the meaning of Section 1.150-2(f)(2) of the Regulations) for the Improvements, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue price" of the Bonds, (iii) in a"de minimus" amount (as defined ' in Section 1.150-2(f)(1) of the Regulations), i.e., $17,000 or (iv) Reimbursement Expenditures paid not more than 60 days before the date of the Declaration. $296,000 of the proceeds of the Bonds will be used by the County to reimburse itself for any expenditure with respect to the Improvements which the County paid prior to the issuance of the Bonds. ' (b) As of the date of the Declaration, no funds from sources other than the Bonds were, or were reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the County to provide financing for the Reimbursement ' Expenditure to be reimbursed from proceeds of the Bonds. (c) Each Reimbursement Expenditure to be reimbursed from proceeds of the Bonds, other than costs of issuing the Bonds, is a capital expenditure (i.e., a cost that is properly chargeable to capital account (or would be with a proper election) under general federal income tax principles). (d) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure to be reimbursed from proceeds of the ' Bonds shall be made forthwith following (but not prior to) the issuance of the Bonds and in all events within the period ending on the date which is 18 months after the later of: (i) the date of payment of the Reimbursement Expenditure or(ii) the Improvements are first 7 placed in service or abandoned, but in no event more than three years after the Reimbursement Expenditure is paid. ' (e) Each such reimbursement allocation will be evidenced by an entry on the official books or records of the County maintained for and in connection with the Bonds and will specifically identify the actual prior Reimbursement Expenditure to be reimbursed from proceeds of the Bonds. (f) The County is unaware of any facts or circumstances which would cause it to question the reasonableness or accuracy of this Section 5 or of the Declaration, or its compliance with any of the covenants herein contained. ' 6. The County acknowledges the following: (i) the Bonds will be evidenced by a physical certificate delivered to the Purchaser by the County; (ii) the Bonds will not have a CUSIP number; (iii) the Bonds is not, and will not be, rated by an independent rating agency; (iv)the Purchaser intends to hold the Bonds for its own account, and not with a present view toward resale or distribution and shall not transfer the Bonds except to (A) an affiliate of the ' Purchaser; (B) a trust or other custodial arrangement established by the Purchaser or one of its affiliates, the owners of any beneficial interest in which are limited to qualified institutional buyers or accredited investors; or(C) a person or entity that the Purchaser reasonably believes is ' qualified to purchase the Bonds or that makes representations substantially similar to the representations the Purchaser makes in connection with its purchase of the Bonds; (v) the principal amount of the Bonds purchased by the Purchaser, and the principal amount of the loan ' evidenced thereby, is $339,750; (vi) payments on the Bonds shall be made directly by the County to the Purchaser; (vii) the Bonds and the loan evidenced thereby bear interest at a fixed rate throughout the term of the Bonds; (viii)the form of the Bonds sets forth all of the material ' terms of the financing; (ix)the Purchaser has informed the County that the Purchaser intends to treat the Bonds as a loan on its books and records, and(x)the Bonds evidences a special, limited indebtedness of the County. 7. The County acknowledges and agrees that: (i) the transactions contemplated by the Bond documents are arm's length, commercial transactions between the Purchaser and the County and that the Purchaser is acting solely as a principal and not acting as a municipal advisor, financial advisor or fiduciary to the County; (ii) the Purchaser has not performed advisory or fiduciary services to the County with respect to the transactions contemplated by the ' Bond documents and the discussions, undertakings and procedures leading thereto (irrespective of whether the Purchaser has provided other services or is currently providing other services to the County on other matters); (iii) the Purchaser has financial and other interests that differ from ' those of the County; and (iv)the County has consulted its own legal, accounting, tax, financial and other advisors, as applicable, to the extent it has deemed appropriate. ' 8. The seal impressed on this Certificate and the Bonds are the true and only official seal of the County. 8 ' WITNESS our hands and seal as of this 17th day of November, 2015. 1 JEFFERSON COUNTY, MONTANA / n Al Chair of the Board of County Commissioners (SEAL) r \ oun�C ty Treasurer ' County Clerk and Recorde 9 1 1 $339,750 Rural Special Improvement District No. 2510 Bonds Jefferson County, Montana ' COUNTY TREASURER'S CERTIFICATE AND RECEIPT 1, the undersigned,being the duly qualified and acting County Treasurer of Jefferson County, Montana (the"County"), hereby certify and acknowledge that on the date of this instrument I received from Montana City Bank(the "Purchaser"), as purchaser thereof,the purchase price of the $339,750 Rural Special Improvement District No. 2510 Bonds (the `Bonds"), of the County, originally dated as of November 17, 2015 and that I thereupon caused said Bonds to be delivered to the Purchaser. WITNESS my hand officially as such County Treasurer and the seal of said ' County this 17th day of November, 2015. County Treasurer 1 1 1 1 $339.750 ' Rural Special Improvement District No. 2510 Bonds Jefferson County,Montana CERTIFICATE OF BOND REGISTRAR 1, the undersigned, being a duly qualified and acting County Treasurer of Jefferson County, Montana (the"County"), who is designated as Registrar under the resolution adopted by the Board of County Commissioners of the County on November 3,2015, ' authorizing the issuance of the Bonds described above, do hereby certify that the Bond Registrar has authenticated and delivered to Montana City Bank (the "Purchaser"), a fully executed Rural Special Improvement District No. 2510 Bond of the County in the aggregate principal amount of ' $339,750,payable semiannually on January I and July 1 for a term of approximately 15 years, with payment installments commencing January 1, 2017 and, absent prepayment,ending July 1, 2031, and bearing interest from the date of original registration until paid or duly called for ' prepayment and redemption at the rate of 4.30%per annum. I further certify that the Bonds so authenticated and delivered were registered,on ' the face thereof and also in the bond register maintained by the Bond Registrar, in the name of the Purchaser. WITNESS my hand as Bond Registrar this 17th day of November, 2015. ' JEFFERSON COUNTY, MONTANA ByLwt - ' Its County Treasurer i 1 i 1 1 i 1 i 1 1 1 i 1 1 1 1 i 1 1 $339,750 Rural Special Improvement District No. 2510 Bond Jefferson County, Montana CERTIFICATE OF PURCHASER 1, the undersigned,being a duly qualified and acting representative of First Madison Valley Bank, a Montana corporation, doing business as Montana City Bank, the original purchaser(the"Purchaser") of the $339,750 Rural Special Improvement District No.2510 Bonds (the`Bonds"), issued by Jefferson County, Montana (the "County"), dated, as originally issued, as of November 17, 2015, hereby acknowledge receipt of the Bonds, fully executed and authenticated, in the aggregate principal amount of$339,750,payable semiannually on each January 1 and July 1 for a term of approximately 15 years, with payment installments commencing January 1, 2017 and, absent prepayment, ending July 1,2031, and bearing interest from the date of original registration until paid or duly called for prepayment and redemption at the rate of 4.30%per annum and otherwise conforming with the provisions of Resolution No. 29-2015, adopted by the Board of County Commissioners of the County on November 3, 2015 (the "Bond Resolution"), and on behalf of the Purchaser certify that: I. The Purchaser is a bank duly organized, validly existing and in good standing under the laws of the state of Montana and has full power and authority to purchase the Bonds and make the loan evidenced thereby. The legal name of the Purchaser of the Bonds is First Madison Valley Bank, a Montana corporation. "Montana City Bank" is an assumed business name of First Madison Valley Bank. All references to "Montana City Bank" in the Bond Purchase Agreement between the County and the Purchaser, dated November 2, 2015, and in ' the Bond Resolution shall mean and be read as "First Madison Valley Bank, doing business as Montana City Bank," notwithstanding any provisions therein to the contrary. In addition, any references to "Montana City Bank"in any closing documents relating to the Bonds shall mean and be read as "First Madison Valley Bank, doing business as Montana City Bank." 2. The Purchaser has sufficient knowledge and experience in financial and business matters, including purchase and ownership of municipal and other tax-exempt obligations, to be able to evaluate the risks and merits represented by the purchase of the Bonds and the making of the loan evidenced thereby. 3. The Purchaser has authority to purchase the Bonds and to execute the Bond Purchase Agreement and any other instruments and documents required to be executed by the Purchaser in connection with the purchase of the Bonds. 4. The Purchaser understands that an official statement,prospectus,offering circular, or other offering statement has not been provided with respect to the Bonds. The Purchaser has made its own inquiry and analysis with respect to the County,the Bonds and the security therefor, and other material factors affecting the security for and payment of the Bonds. ' The Purchaser received and has reviewed a copy of the Bond Resolution_ 5. The Purchaser acknowledges that it has reviewed information, including financial statements and other financial information, regarding the County and has had the opportunity to ask questions and receive answers from knowledgeable individuals concerning the County,the Bonds and the security therefor, so that it has been able to make an informed decision to purchase the Bonds and to make the loan evidenced thereby and acknowledges that it has not relied on the County with respect to any information with respect to the advisability of purchasing the Bonds or the security for the Bonds. 6. The Purchaser understands that the Bonds: (i) are not registered under the ' Securities Act of 1933, as amended, and are not registered or otherwise qualified for sale under the "Blue Sky" laws and regulations of any state, (ii) are not listed on any stock or other securities exchange, and (iii) have not been rated by any credit rating agency. 7. The Bonds are being acquired by the Purchaser for its own account and not with a present view toward resale or distribution; provided, however,that the Purchaser reserves the right to sell, transfer or redistribute the Bonds, but agrees that any such sale, transfer or distribution by the Purchaser shall be to (i) an affiliate of the Purchaser; (ii) a trust or other custodial arrangement established by the Purchaser or one of its affiliates,the owners of any beneficial interest in which are limited to qualified institutional buyers or accredited investors; or(iii) a person or entity that the Purchaser reasonably believes is qualified to purchase the Bonds or that makes representations substantially similar to the representations the Purchaser makes in this certificate. The Purchaser currently intends to hold the Bonds to evidence the loan it has made to the County for the term of the Bonds. S. (i) The Bonds will be evidenced by a physical certificate delivered to the Purchaser by the County, (ii) the Bonds will not have a CUSIP number, (iii)the Bonds are not, and will not be, rated by an independent rating agency, (iv)the Purchaser shall not transfer the Bonds except in accordance with Paragraph 7 above, (v) the principal amount of the Bonds purchased by the Purchaser, and the principal amount of the loan evidenced thereby, is $339,750, (vi) payments on the Bonds shall be made directly by the County to the Purchaser, (vii) payments under the Bonds conform to the loan amortization schedule provided by the Purchaser to the County, (viii)the Bonds and the loan evidenced thereby bear interest at a fixed rate throughout the term of the Bonds, (ix)the Purchaser intends to record the Bonds as a loan on its books and records, and (x)the Bonds are a special, limited debt of the County. 9. The Purchaser acknowledges and agrees that: (i) the transactions contemplated , by the Bond documents are arm's length, commercial transactions between the Purchaser and the County and that the Purchaser is acting solely as a principal and not acting as a municipal advisor, financial advisor or fiduciary to the County; (ii) the Purchaser has not performed , advisory or fiduciary services to the County with respect to the transactions contemplated by the Bond documents and the discussions, undertakings and procedures leading thereto (irrespective of whether the Purchaser has provided other services or is currently providing other services to the County on other matters); (iii)the Purchaser has financial and other interests that differ from those of the County; and (iv) the Purchaser has consulted its own legal, accounting, tax, financial and other advisors, as applicable, to the extent it has deemed appropriate. , 2 1 . Y IN WITNESS WHEREOF, I have hereunto set my hand as Purchaser as of this 17th day 1 of November,2015. FIRST MADISON VALLEY BANK, a Montana 1 corporation, doing business as Montana City Bank Bv: 1 Printed Name: ai ze hs Title: 1 i 1 1 1 i 1 1 1 1 1 1 1 3 $339,750 Rural Special Improvement District No. 2510 Bond Jefferson County, Montana CERTIFICATE OF PURCHASER 1, the undersigned, being a duly qualified and acting representative of First Madison Valley Bank, a Montana corporation, doing business as Montana City Bank, the original purchaser(the "Purchaser") of the$339,750 Rural Special Improvement DistrictNo. 2510 Bonds (the "Bonds"). issued by Jefferson County, Montana (the "County"), dated, as originally issued, as of November 17, 2015, hereby acknowledge receipt of the Bonds, fully executed and authenticated, in the aggregate principal amount of$339,750,payable semiannually on each January 1 and July 1 for a term of approximately 15 years, with payment installments commencing January 1, 2017 and, absent prepayment, ending July 1, 2031, and bearing interest from the date of original registration until paid or duly called for prepayment and redemption at the rate of 4.30%per annum and otherwise conforming with the provisions of t Resolution No. 29-2015, adopted by the Board of County Commissioners of the County on November 3, 2015 (the "Bond Resolution"), and on behalf of the Purchaser certify that: ' 1. The Purchaser is a bank duly organized, validly existing and in good standing under the laws of the state of Montana and has full power and authority to purchase the Bonds and make the loan evidenced thereby. The legal name of the Purchaser of the Bonds is First ' Madison Valley Bank, a Montana corporation. "Montana City Bank" is an assumed business name of First Madison Valley Bank. All references to "Montana City Bank" in the Bond Purchase Agreement between the County and the Purchaser, dated November 2, 2015, and in the Bond Resolution shall mean and be read as "First Madison Valley Bank, doing business as Montana City Bank,"notwithstanding any provisions therein to the contrary. In addition, any references to "Montana City Bank" in any closing documents relating to the Bonds shall mean ' and be read as "First Madison Valley Bank, doing business as Montana City Bank." 2. The Purchaser has sufficient knowledge and experience in financial and ' business matters, including purchase and ownership of municipal and other tax-exempt obligations,to be able to evaluate the risks and merits represented by the purchase of the Bonds and the making of the loan evidenced thereby. 3. The Purchaser has authority to purchase the Bonds and to execute the Bond Purchase Agreement and any other instruments and documents required to be executed by the ' Purchaser in connection with the purchase of the Bonds. 4. The Purchaser understands that an official statement, prospectus, offering ' circular, or other offering statement has not been provided with respect to the Bonds. The Purchaser has made its own inquiry and analysis with respect to the County, the Bonds and the security therefor, and other material factors affecting the security for and payment of the Bonds. The Purchaser received and has reviewed a copy of the Bond Resolution. 5. The Purchaser acknowledges that it has reviewed information, including financial statements and other financial information, regarding the County and has had the opportunity to ask questions and receive answers from knowledgeable individuals concerning the County, the Bonds and the security therefor, so that it has been able to make an informed decision to purchase the Bonds and to make the loan evidenced thereby and acknowledges that it has not relied on the County with respect to any information with respect to the advisability of purchasing the Bonds or the security for the Bonds. 6. The Purchaser understands that the Bonds: (i) are not registered under the ' Securities Act of 1933, as amended, and are not registered or otherwise qualified for sale under the"Blue Sky" laws and regulations of any state, (ii) are not listed on any stock or other securities exchange, and (iii) have not been rated by any credit rating agency. 7. The Bonds are being acquired by the Purchaser for its own account and not with a present view toward resale or distribution; provided, however,that the Purchaser reserves the right to sell, transfer or redistribute the Bonds, but agrees that any such sale, transfer or distribution by the Purchaser shall be to (i) an affiliate of the Purchaser; (ii) a trust or other custodial arrangement established by the Purchaser or one of its affiliates,the owners of any beneficial interest in which are limited to qualified institutional buyers or accredited investors; or(iii) a person or entity that the Purchaser reasonably believes is qualified to purchase the ' Bonds or that makes representations substantially similar to the representations the Purchaser makes in this certificate. The Purchaser currently intends to hold the Bonds to evidence the loan it has made to the County for the term of the Bonds. ' 8. (i) The Bonds will be evidenced by a physical certificate delivered to the Purchaser by the County, (ii) the Bonds will not have a CUSIP number, (iii)the Bonds are not, and will not be, rated by an independent rating agency, (iv) the Purchaser shall not transfer the Bonds except in accordance with Paragraph 7 above, (v) the principal amount of the Bonds purchased by the Purchaser, and the principal amount of the loan evidenced thereby, is $339,750, (vi) payments on the Bonds shall be made directly by the County to the Purchaser, (vii) ' payments under the Bonds conform to the loan amortization schedule provided by the Purchaser to the County, (viii) the Bonds and the loan evidenced thereby bear interest at a fixed rate throughout the term of the Bonds, (ix) the Purchaser intends to record the Bonds as a loan on its books and records, and(x)the Bonds are a special, limited debt of the County. 9. The Purchaser acknowledges and agrees that: (i)the transactions contemplated by the Bond documents are arm's length, commercial transactions between the Purchaser and the County and that the Purchaser is acting solely as a principal and not acting as a municipal advisor, financial advisor or fiduciary to the County; (ii)the Purchaser has not performed , advisory or fiduciary services to the County with respect to the transactions contemplated by the Bond documents and the discussions, undertakings and procedures leading thereto (irrespective of whether the Purchaser has provided other services or is currently providing other services to the County on other matters): (iii)the Purchaser has financial and other interests that differ from those of the County; and (iv) the Purchaser has consulted its own legal, accounting, tax, financial and other advisors, as applicable, to the extent it has deemed appropriate. 2 IN WITNESS WHEREOF, I have hereunto set my hand as Purchaser as of this 17th day of November, 2015. FIRST MADISON VALLEY BANK, a Montana corporation, doing business as Montana City Bank By: / Printed Name: Title:Ta kf-- Ct'� 144 r. te r 1 3 1 t OORSEY" ' TRICIA C.ELPEL,PARALEGAL elpel.tricia@domey.com ' December 8, 2015 ' CERTIFIED MAIL RETURN RECEIPT REQUESTED ' Internal Revenue Service Ogden, UT 84201 Re: $339,750 Rural Special Improvement District No. 2510 Bond Jefferson County, Montana ' Dear Sir/Madam: Enclosed is an IRS Form 8038-G, Information Return for Tax-Exempt Governmental ' Obligations, filed pursuant to Section 149(e) of the Internal Revenue Code with respect to the issuance of the Issuer's bonds. Please file the enclosed Form 8038-G. Thank you. Very truly yours, Tricia C. Elpel, Paralegal Enclosures ' DORSEY & WHITNEY LLP • WWW.DORSEY.COM • T 406,721.6025 • P 406.543.0863 MILLENNIUM BUILDING • 125 BANK STREET •SUITE 600 • MISSOULA, MONTANA 59802-4407 USA CANADA F_IJROPE ASIA-PACIFIC ' Form 8038-G Information Return for Tax-Exempt Governmental Obligations (Rev.September 2011) ►Under Internal Revenue Code section 149(e) Of No.1545-0720 Ill,See separate instructions. Department of the Treasury Internal Revenue Service Caution:N the issue price is under$100,000,use Form 8038-GC. ' Reporting_Authority If Amended Return,check here ► ❑ 1 Issuer's name 2 Issuer's employer Identification number(EIN) Jefferson County,Montana 81-6001377 ' 3a Name.(person(other than issuer)wrth whom the IRS may communicate about this return(see instructions) 31a Telephone number of other person shown on 3a 4 Number and street(or P.O.box if mail is not delivered to street address) Roar/suite 5 Report number amr IRS Use Only) 201 Centennial,P.O.Box H '� ffigm ' 6 City,town,or post office.state,and ZIP code 7 Date of issue Boulder,MT 59632 November 17,2015 8 Name of issue 9 CUSIP number Rural Special Improvement District No,2510 Bond NONE 10a Name and title of officer or other employee of the issuer whom the IRS may call for more information(see 10b Telephone number of officer or other Instructions) employee shown on 10a Bonnie Ramey,County Clerk and Recorder 406-225-4020 • .M, Type of Issue (enter the issue price). See the instructions and attach schedule. 11 Education . 11 12 Health and hospital . . . . . . . . . . . . . . . . . . . . . . . 12 ' 13 Transportation 13 14 Public safety . 14 15 Environment(including sewage bonds) - 15 16 Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Other. Describe ► road improvements 18 339,750 00 19 If obligations are TANS or RANs,check only box 19a . . . . . . . . . . . . . ► ❑ If obligations are BANS, check only box 19b . . . . . . . . . . . . . le ❑ ' 20 If obligations are in the form of a lease or installment sale,check box . . . . . . . . ► ❑ Description of Obligations.Complete for the entire issue for which this form is be-in filed. ' (a)Final maturity date (cJ Stated redemption er weighted (b]Issue pace pace at maturity average maNnry (e)Vield 21 07/01/2031 339,750 339,750 9.374 ears 4.2946731 °� Uses of Proceeds of Bond Issue(including underwriters' discount) ' 22 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . 22 0 0 23 Issue price of entire issue(enter amount from line 21,column(b)) 23 339,750 00 24 Proceeds used for bond issuance costs(including underwriters'discount) . . 24 15,000 00 25 Proceeds used for credit enhancement . . . . . . . . . . . . 25 0 00 ' 26 Proceeds allocated to reasonably required reserve or replacement fund - 26 23,6901 00 27 Proceeds used to currently refund prior issues 27 1 01 00 28 Proceeds used to advance refund prior issues . . . . . . . . . 28 1 01 00 ' 29 Total(add lines 24 through 28) . . . . . . . . . . . . .. . . . . . . . . . . 29 38,6901 CO 30 Nonrefunding proceeds of the issue(subtract line 29 from line 23 and enter amount here) 30 1 301,060 00 Description of Refunded Bonds. Complete this part only for refunding bonds. 31 Enter the remaining weighted average maturity of the bonds to be currently refunded . . . . ► years ' 32 Enter the remaining weighted average maturity of the bonds to be advance refunded . . . . ► years 33 Enter the last date on which the refunded bonds will be called(MM/DD/YYYY) ► 34 Enter the date(s)the refunded bonds were issued►(MM/DI9/VYYV) ' For Paperwork Reduction Act Notice,see separate instructions. cat.No.637735 Form 8038-G(Rev.9-2011) 1 t Form 8038-G(Rev_9-2011) Page 2 Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . . 35 1000 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract ' (GIC)(see instructions) . . . . . .`. . . - 36a b Enter the final maturity date of the GIC►c Enter the name of the GIG provider►37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units 37 38a If this issue is a loan made from the proceeds of another tax-exempt issue,check box► ❑and enter the following information: b Enter the date of the master pool obligation► C Enter the EIN of the issuer of the master pool obligation► d Enter the name of the issuer of the master pool obligation► 39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III)(small issuer exception), check box . . . . ► ❑� ' 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate,check box . . . . . . . . . ► ❑ 41a If the issuer has identified a hedge,check here► ❑ and enter the following information: b Name of hedge provider 0- c Type of hedge► ' d Term of hedge► 42 If the issuer has superintegrated the hedge,check box . . ► ❑ 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations(see instructions),check box . . . . . . . . ► ' 44 If the issuer has established written procedures to monitor the requirements of section 148, check box . . . . . ► ❑ 45a If some portion of the proceeds was used to reimburse expenditures,check here► [7] and enter the amount of reimbursement . . . . . . . . ► $296,000 ' b Enter the date the official intent was adopted► 06/10/2014 Under penalties of perjury.I declare that I have examined this return and accompanying schedules and statements,and to the best of my knowledge Signature and belief,they are true,correct,and complete.I further declare that I consent to the IRS's disclosure of the issuer's return information,as necessary to and process this return,to the ppperso hat I have authorized above. Consent 12t^'� -C'P�a—�—� Bob Mullen,Chair,Bd.of Co.Comm. 'Signature of issuer's authorized representative Date 'Type or print name antl title Paid Printrrype preparer's name Pre s sig Date PTIN Check ❑ if Preparer Dan Semmens .- � J( 11 1 �J self-employed p01069444 Pre a rer Firm's name � Dorsey&Whitney LL Firm's EIN ► 41-0223337 Firms address ► 125 Bank Street,Suite 600,Missoula,MT 59802 phone no 406421-6025 ' Form 8038-G(Rev.9-2011) Milli SENDER CTIPN6 ,E�IVE�Y ■ Completa Iternali,2;and 3. A. Signature" ■ Print your name and address on the reverse X RECEIVE ❑Agent so that we can return the card to you, . ❑Addressee ■ Attacft-this card to the back of the rpailplece, B. Received by(Printed Name) C. Date of Delivery or on the front if space permits. 1. Article Addressed to: D. le de,llyerry�aadr..dtlr9ehss different from its 17 -❑{Yes If YES,e resseV w, No C 0e SeMCP' IRS OGDEN, UTAH `n cn w .�., r. TN/P.—e-- Fe ❑Prlodry Mall&Press® to 1 {I III�i II _ �'II��I I ❑AdulltSllq atW ❑Registered Main. W. �� 0 ❑ dult SlgnatWe Restricted Dellvery ❑Registered Mall flestrlcted m u 9590 9403 0492 5173 9556 78 cedlnad My® eeve y 0rllfieil3'&VRestrlcted Delivery Retum Recelptfor ❑collect-4 Delivery emhandise (J) 2. Article Number llFen Yrom seMce label) D Collactcn DailYefy Restricted Delivery ❑Signature ConnnnationTM D -. m - ❑Signature conN(natlon 7 015 0640 0 0 01 2151 202 7 esMC ed pellvery , Resvicted Deilvwy C h � 38 ,1;ggprii 2675 PSN 7530-02-000-8053 Domestic Return Receipt o m PS Form P '71 cc tj W o t Lt!C. K U.S. Postal Service7 4 a a o RECEIPT CERTIFIED MAIL M1 Domestic Mail Only Lill (D ru l- cc O a ertlHe0I✓ ICIALa U N Ul Cd Mail Fee 1=12 r I rU a re ervices 8 eea(clreckbcu,etld app a -( j 9 3 f1 CIP ® PaWm ReceiOt lalaclronkl S G 'Pos err /^ _ : O can Aad n e re lie,tatl Oelhrery a �' Her ? 4 � _ �C 0 ?t O pnaun slsaanre ReWlmtl $" d' m N O ❑Adue Blgnmure RasMmetl Delivery$ r 9 ur .4t 1 o Z N N - a Y�rgyiSS�i� ✓ o 9.0 -,D Total v Band Feee Vl •'d. .n'S p _..�''_-_ . . . . . m S ` Sent To O N ' r-1 >� Street anifApL Ko.,or Pt7§ox No 1 1 1 1 1 UNITED STATES OF AMERICA STATE OF MONTANA ' JEFFERSON COUNTY ' RURAL SPECIAL IMPROVEMENT DISTRICT NO. 2510 BONDS Interest at the rate per annum specified below, payable on the Is`day of January and the 1st day of July in each year, commencing January 1, 2017. No. R-1 r; 514V,7150.00 ' Rate Final Payment Date Date of Original Issues 4.30% July 1, 2031 November 17, �O15 ' REGISTERED OWNER: FIRST MADISON VALLEY BANK, a Montana corporation domg.business as Montana City Bank ' PRINCIPAL AMOUNT: THREE HUNDRED THIRTI NINE THOUSAND SEVEN HUNDRRp FIF DOLLARS AND NO/100 FOR VALUE RECEIVED; Jefferson County,-Montana (the "County"), will pay to the registered owner identified above' or registered, assigns, installments of principal and interest ' described below in this paragraph�,s,elely from the revenues hereinafter specified, as authorized by Resolution No. 29-2,015, adopted-,November 3, 2015 (the "Resolution"), all subject to the provisions hereinafter described relating t Elie prepayment and redemption of this Bond before maturity, in whole or in part,' This Bond bears interest at the rate per annum specified above from the date of orig_rnal issue,specified above, or from such later date to which interest hereon has been paid=9r duly provid4fpr,'until the Final Payment Date specified above or an earlier ' date on which this Bond shall--have been duly called for redemption in full by the County Treasurer and prepaid in full. Principal of and interest on this Bond are payable semiannually on ' the 1st day of January and the 1st day of July in each year, commencing January 1, 2017, which is the only interest only payment installment, and concluding July 1, 2031, in accordance with the debt service schedule attached hereto as Schedule 1. The owner of record of this Bond is the ' owner appearing as such in the bond register as of the close of business on the fifteenth day (whether or not a business day) of the month immediately preceding a semi-annual installment payment date. Interest on and, upon presentation and surrender hereof at the principal office of the bond registrar hereinafter named, the principal of this Bond are payable by check or draft drawn by the Registrar. The principal of and interest on this Bond are payable in lawful money of the United States of America. Interest on this Bond shall be calculated on the basis of a 365/365 day year. The County Treasurer shall initially serve as Registrar for this Bond. Terms used in this Bond with initial capital letters and not defined herein have the meanings given them in the Resolution. ' This Bond constitutes an issue that evidences a loan from the Purchaser to the County in the principal amount of$339,750 (the "Bonds") for the purpose of financing or reimbursing the ' County for the costs and expenses of making certain local improvements (the "Improvements") for the special benefit of property located in Rural Special Improvement District No. 2510 (the "District"), funding a deposit to the District Reserve Account, funding a deposit to the County's Rural Special Improvement District Revolving Fund (the "Revolving Fund") and paying costs of issuance of the Bonds and other incidental costs. The Bonds are issued pursuant to and in full conformity with the Constitution and laws of the State of Montana thereunto enabling, including Montana Code Annotated, Title 7, Chapter 12, Part 21, as amended (the "Act"), and ordinances and resolutions duly adopted by the governing body of the County, including the Resolution. The Bonds are issuable only as fully registered bonds payable in equal_ssemiannual' stallments ' of principal and interest. This Bond evidences a loan made from the Purchaser iii the County and constitutes a special, limited indebtedness of the County. This Bond is payable from the collection of a special tax or assessment 1eied upon all assessable real property within the boundaries of the District benefited'by the.Improvements, in an aggregate principal amount not less than $339,750, excezas such amounts may be reduced or ' increased in accordance with provisions of Montana law ;Such assessments constitute a lien against the property against which they are made and levied and are to be deposited into the 2015 Rural Special Improvement District No. 2510 lAmd of the Couttty�tlie "District Fund"). The County has established in the District Fund, andrid&with, certain proceeds of the Bonds, a District Reserve Account, from which monQys are ta_be apple d to pay principal of and interest on the Bonds in the event collections ofspectalassessm-efts are insufficient therefor. There is no ' obligation for the County to replentsl "fhe District Reserve Account if funds are withdrawn therefrom. The Bonds are not general obligation o€the-County. ' The County has validly established the Revolving Fund to secure the payment of certain of its rural special improvement duct bonds, including the Bonds. The County has also agreed, to the extent permitted try the`Aef, tAsue orders annually, or more often as necessary, authorizing Loans or advances from' the Revolving Fund to the District Fund, in amounts sufficient to make-%O9 d any'dgficiency in the District Fund to pay principal of or interest on the Bonds, to the.extent Nat fund`s are available in the Revolving Fund, and to provide funds for the Revolving Fund by annually making a tax levy or loan from its general fund in an amount sufficienYgr thafpu pose, subject to the limitation that no such tax levy or loan may in any year cause the balance iri'the Revolving Fund to exceed ten percent of the principal amount of the ' County's then outstanding rural special improvement district bonds secured thereby and the durational limitations specified in the Act and provided that at any time such a loan or advance is to be made, the District Reserve Account shall have been or shall be depleted on the next interest ' payment dater .:While any property tax levy to be made by the County to provide funds for the Revolving Fund is subject to levy limits under current law, the County has agreed in the Resolution to levy property taxes to provide funds for the Revolving Fund to the extent described in this paragraph and, if necessary, to reduce other property tax levies correspondingly to meet applicable levy limits. The Bonds are subject to mandatory redemption in order of installments of principal and interest by the Registrar, on any interest payment date if, after paying all principal and interest then due on any Bonds, there are funds to the credit of the District Fund, from the prepayment of 2 ' assessments levied in the District or from the transfer of surplus money from the Construction Account to the Principal Account or otherwise, for the redemption thereof, and in the manner ' provided for the redemption of the same. In addition, the Bonds are subject to redemption, in whole or in part, at the option of the County from sources of funds available therefor, at a redemption price equal to the principal amount thereof to be redeemed plus interest accrued to the redemption date, without premium, on any date selected by the County; provided that such date may not be earlier than a date that is 30 days following written notice of redemption and prepayment from the County to the Purchaser or the then-holder of the Bonds. The date of ' redemption and principal amount of the Bonds to be prepaid and redeemed shall be fixed by the County Treasurer, as Registrar, to give notice, by first class mail, postage prepaid,,to the owner or owners of the Bonds at their addresses appearing on the bond register which date'shall not be ' less than 30 days after the date of mailing of notice. On the date so fired iieiest-on the Bonds or portions thereof so redeemed shall cease to accrue interest. Partial prepayments of ti Bond will be applied in chronological order of installments of principal. For so long,as there is only one owner of the Bonds, upon partial redemption and prepdy3 pent of this Bond;°a new debt service schedule will replace the schedule attached hereto ..as Schedule:, l to reflect the reamortization in substantially equal semiannual installments of principal and interest of the remaining principal amount outstanding, and this Bond, wifli such substituted Schedule 1, shall continue in full force and effect. If there are two or more-separate owners of the Bonds, upon partial redemption of the Bonds, a new Bond with a substituted Schedule 1 will be delivered to ' the registered owner of each such Bond, each B;uid showing rearrortization in substantially equal semiannual installments of principaF�aftid interest of tltexhen remaining principal amount outstanding. The Bonds have been designated by theitinty as "qualified tax-exempt obligations" pursuant to Section 265 of the Intemal Revenue Code of 1986, as amended. As provided in the Resolutidii.;and subject to certain limitations set forth therein, this Bond is transferable up cin the books of Aid,County at the principal office of the Registrar, by the ' registered owner hereot, _ person'or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or his`4tto1M6y. Upon such transfer or exchange, the County will cause a ' new Bond to be issued in the name of the transferee or registered owner, of the same aggregate principal amount,'bearing interest at the same rate and maturing on the same date, subject to reimbursement for any"tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The Countyand the Registrar may deem and treat the person in whose name this Bond is ' registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the County nor the Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all things required to be done precedent to the issuance of this Bond have been properly done, ' happened and been performed in the manner prescribed by the laws of the State of Montana and the resolutions and ordinances of Jefferson County, Montana, relating to the issuance hereof. 3 This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have ' been executed by the Registrar by the manual signature of one of its authorized representatives. IN WITNESS WHEREOF, Jefferson County, Montana, by its governing body, has ' caused this Bond to be executed by the signatures of the Chair of the Board of County Commissioners and the County Treasurer and attested by the signature of the County Clerk and Recorder, and has caused the official seal of the County to be affixed hereto, and has caused this IBond to be dated as of the 17th day of November, 2015. ww Chair,of Board oI`County Commissioners ' (SEAL) " ' mmCpunty Treasurer Attest: -s County Clerk and Rec9r&t= Dated Novem�ax 17„2015 CERTIFICATE OF AUTHENTICATION Thisi§�one of the Bonds delivered pursuant to the Resolution mentioned herein. JEFFERSON COUNTY, MONTANA, as Registrar, Transfer Agent, and Paying Agent By ' County Treasurer 4 ' The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM—as tenants UTMA...........Custodian............... in common (Gust) (Minor) ' TEN ENT— as tenants by the entireties under Uniform Transfers to Minors,-' JT TEN— as joint tenants Act . . . . . . . . . . . . . . . . . . . . . with right of (State) survivorship and not as tenants in common 1 Additional abbreviations may also be used.. ASSIGNMENT FOR VALUE RECEIVED the undersign&€-tickeby sells, ass, s and transfers unto the wlthtiM il trtd all rights and title thereunder, and hereby irrevocably constitutes and appoints: attorney to transfer the within Bond on the books kept for registration thergof wifhTull power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY. OR OTHER IDENTIPnNG MJMBER 1 OF ASSIGNEE. NOTICE: The signature to this assignment must correspond with the name as it appears ' upon the face of the within Bond in every particular, without alteration, enlargement or any change whatsoever. ' SIGNATURE GUARANTEED Signature(s)must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, ' which requirements include membership or participation in STAMP or such other `'signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, ail in accordance with the Securities Exchange Act of 1934,as amended. 5 ' SCHEDULEI ' Disbursement Data: November 17,2015 Repayment Scandal.: Inatellment Interest Rate: 4.300 Gatcuimloo Method: 3651365. U.S.Rulo Payment Payment Payment Interest Principal Remaining Number Date Amount Paid paid Balance t 0143-2017 15,893.05 15,993.05 0.00 339,750.00 2 07-01-2017 15,893.05 7,801,96 81091.09 331,858.91 2017 TOTALS: 31,786.10 23,696.01 8,091.09 3 01-01-2018 15,893.05 7,189.28 8,703.77 322,955.14 4 07-01-2018 15,893.05 6;886,47 9,006.58 313,948.56 2018 TOTALS: 31,786.10 14,075.76 17;710.35 5 01.01-2019 15,893.05 6,805,37 91087.68 304,860.98 6 07-01-2019 15,893.05 6,600,64 9,392.41 295,468.47 2019 TOTALS: 31.786.10 13,306.01 18,480.09 7 01-01-2020 15,899.05 6,404,79 9,488.26 285,980,21 ' 8 07-01-2020 15,893.05 6,131.73 9,761.32 276,218:89 2020 TOTALS: 81,780,10 12,538,52 19,249.58 9 01-01-2021 15,893;06 5,987.52 9;905.53 266,313.3$ 10 07.01.2021 15,893.05 5,678.68 10,214.37 268,098,99 2021 TOTALS: 31,786.10 11,666.20 20,119.90 11 01-01-2022 15,893.05 5,551.38 10,341.67 245,757,32 12 07-01-2022 15,893.05 5,240,35 10,652.70 235,100.62 2022 TOTALS: 31,786.10 10,791,73 20:994.37 13 01-01-2023 15,893.05 5,09630 10,79675 224,307.87 14 07.01-2023 15;893-05 4,782.98 11,11007 213,197:80 2023 TOTALS: 31,788.10 9,879,28 21,906.82 15 01-01-2024 15,893.05 4,621.43 11,271,62 201,926:19' 16 07-01.2024 15,893.05 4,329.52 11,563.53 190,362.66 2024 TOTALS:: 31.786.10 8,960.96 221835.16 17 01.01.2026 15,888.05 4;126,44 11,766.61 178,596.04 ' 18 07-01-2025 15,893,06 31808.26 12,084,80 166.511.24 2025 TOTALS; 31,786.10 7,934.69 23,861.41 19 01.01-2026 15,893.05 3,609.42 12,283.63 154,227.61 20 07-01-2026 15,89105 3;288.64 12,604.41 141,823;20 ' 2026 TOTALS: 31,786.10 6,898.06 24.888.04 -� 21 0101.2027 15,893.05 3,069.93 12,823.12 128,800.08 22 07-01-2027 15,893106 2J46-44 13,146,61 115,653.47 ' 2027 TOTALS: 31,786.10 5,816.37 25,969.73 23 01-01-2028 15,693.06 2,506.99 13,386.06 142,267.41 24 07-01-2028 15,893.05 2,192.73 13.700.32 88;567.09 2028 TOTALS: 31,786.10 4,698.72 27,086.38 25 01-01-2029 15,893.05 1,919.84 13,973,21 74,593.88 26 07-01-2029 15,893.05 1,690.59 14.302.46 60,291.42 2029 TOTALS: 31,786.10 3,510.43 28,275.67 27 01-01.2030 15,893.05 1,306.92 14,586.13 45,705.29 28 07-Ot-2030 15,893.05 97459 14,918.46 30,786.83 2030 TOTALS: 31,786.10 2,281.51 29,504.59 ' 29 01-01-2031 15,893.05 667.36 15,225.69 15,561.14 30 07-01-2031 15,893.05 331.91 15,561.14 0.00 2031 TOTALS: 31,786.10 999.27 30.786.83 ' TOTALS: 476,791.50 137,041.50 339,750.00 -- 6 1 1 1 1 1 1 1 1 1 ' OORSEY" Jefferson County Boulder, Montana First Madison Valley Bank ' Ennis, Montana Re: $339,750 Rural Special Improvement District No. 2510 Bonds ' Jefferson County, Montana Ladies and Gentlemen: ' We have acted as Bond Counsel to Jefferson County, Montana (the"County") in connection with the authorization, issuance and sale by the County of the obligation described ' above, dated, as originally issued, as of the date hereof(the `Bonds"). In that capacity, we have examined certified copies of certain proceedings taken, and certain affidavits and certificates furnished, by the County in the authorization, sale and issuance of the Bonds, including ' Resolution No. 29-2015, adopted by the Board of County Commissioners of the County on November 3, 2015, establishing the form and terms of the Bonds (the "Bond Resolution"), As to questions of fact material to our opinion, we have assumed the authenticity of and relied upon ' the proceedings, affidavits and certificates furnished to us without undertaking to verify the same by independent investigation. ' From our examination of such proceedings, affidavits and certificates, and on the basis of existing law, it is our opinion that: ' 1. The County has validly created Rural Special Improvement District No. 2510 (the "District') and has covenanted to levy special assessments for costs of the improvements and incidental costs to be paid from proceeds of the Bonds. The special assessments are to be payable in installments, with interest on the balance of the special assessments remaining unpaid, and are to be deposited in the 2015 Rural Special Improvement District No. 2510 Fund of the County (the"District Fund"). The principal of and interest on the Bonds are payable solely from the District Fund. 2. The County has validly established a Rural Special Improvement District Revolving ' Fund (the "Revolving Fund") to secure the payment of certain of its rural special improvement district bonds, including the Bonds. The County has agreed, to the extent permitted by Montana Code Annotated, Title 7, Chapter 12, Part 21, as amended (the "Act'), to issue orders annually authorizing loans or advances from the Revolving Fund to the District Fund, in amounts sufficient to make good any deficiency in the District Fund to pay principal of or interest on the Bonds after depletion of amounts in the District Reserve Account, to the extent that funds are available in the Revolving Fund, and to provide funds for the Revolving Fund by annually making a tax levy or loan from its general fund in an amount sufficient for that purpose, subject to the limitation that no such tax levy or loan may in any year cause the balance in the Revolving ' Fund to exceed an amount in excess of the maximum amount established by law and County DORSEY & W 'hEY _[-P • '.V.V',V,DORSEY.COM • T 406.721.6025 • F 406.043.0863 MILLENNIUM SO L--IVG • 1?5 BAN4 STREET• SUITE 600 • MISSOULA, MONTANA 59802-4407 LJ S'A CANAEA FLJF3C]PE ASIA-F'AL IFIC ' OORSEY" Jefferson County, Montana First Madison Valley Bank ' Page 2 ' proceedings and subject to the durational limitations specified in the Act. Any property tax levy to be made by the County to provide funds for the Revolving Fund is subject to levy limits under ' current law. The Bonds are not general obligations of the County and, except to the extent described in this paragraph (2), the taxing power of the County is not pledged to the payment of the principal thereof or the interest thereon. 3. The Bonds and the Bond Resolution are valid and binding special, limited obligations of the County enforceable in accordance with their terms and the provisions of the Constitution and laws of the State of Montana now in force, including the Act. ' 4. Interest on the Bonds: (a) is not includable in gross income for federal income tax purposes; (b) is not an item of tax preference includable in alternative minimum taxable income for purposes of the federal alternative minimum tax applicable to all taxpayers; and (c) is includable in adjusted current earnings of corporations in determining alternative minimum taxable income for purposes of the federal alternative minimum tax. 5. The County has designated the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), and financial institutions described in Section 265(b)(5) of the Code may treat the Bonds for ' purposes of Sections 265(b)(2) and 291(e)(1)(B) of the Code as if they were acquired on August 7, 1986. 6. Interest on the Bonds is not includable in gross income for State of Montana individual income tax purposes, but is includable in the computation of income for purposes of the Montana alternative corporate income tax and the Montana corporate income tax. ' The opinions expressed in paragraphs 1, 2 and 3 above are subject, as to enforceability, to the effect of any applicable state or federal laws relating to bankruptcy, insolvency, ' reorganization, moratorium or creditors' rights and principles of equity, whether considered at law or in equity. We do not express any opinion as to any laws other than the law of the State of Montana and federal laws of the United States of America as in effect on the date hereof. The opinions expressed in paragraphs 4 and 5 above are subject to the condition of the County's compliance ' with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon may be, and continue to be, excluded from gross income for federal income tax purposes and the Bonds be and continue to be a "qualified tax-exempt obligations." ' The County has covenanted to comply with these continuing requirements. Its failure to do so DCRSEV &\NHII'NEY-LP ' OORSEY ° Jefferson County, Montana First Madison Valley Bank ' Page 3 ' could result in the inclusion of interest on the Bonds in federal gross income, retroactive to the date of issuance of the Bonds. Except as stated in this opinion, we express no opinion regarding ' federal, state or other tax consequences to the owners of the Bonds. We have not been engaged, and have not undertaken, to review the accuracy, ' completeness or sufficiency of any offering materials relating to the Bonds and, accordingly, we express no opinion with respect thereto. Dated: November 17, 2015. ' Very truly yours, 1 , r 1 1 1 1 1 1 1 1 1 1 CORSEY awHITN-v -LP 1 1 ' CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of Jefferson County,Montana(the"County"),hereby certify that the attached resolution is a true copy of a Resolution No. 11-2007, entitled: "RESOLUTION RELATING TO THE RURAL SPECIAL ' IMPROVEMENT DISTRICT REVOLVING FUND OF THE COUNTY; CREATING, ESTABLISHING AND MAINTAINING THE REVOLVING FUND AND PROVIDING FOR ' TRANSFERS THERETO FROM THE GENERAL FUND,ANNUAL TAX LEVIES THEREFOR AND LOAN THEREFROM TO RURAL SPECIAL IMPROVEMENT DISTRICT ' FUNDS OF THE COUNTY"(the "Resolution'), on file in the original records of the County in my legal custody; that the Resolution was duly adopted by the Board of County Commissioners of the County at a regular meeting on May 8, 2007, and that the meeting was duly held by the ' Board of CountyCommissioners and was attended throughout by-a quonun,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 certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof. M56L tan EoEL1e�i rt,l llQ s emAT��ezt 'ievdutn �tuc1 Cr�k1eC55UZA Lql yes'ml voted against the same: _tyre �Rrh abstained from voting thereon: �Ty-e, : or were absent: i4cm, WITNESS my hand and seal officially this day of ,20�1. (SEAL) County Clerk and R order RESOLUTION 11-2007 RESOLUTION RELATING TO THE RURAL SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND OF THE COUNTY; CREATING, ' ESTABLISHING AND MAINTAINING THE REVOLVING FUND AND PROVIDING FOR TRANSFERS THERf'O FROM THE GENERAL, FUND, ANNUAL TAX LEVIES THEREFOR AND LOAN THERtFROM ' TO RURAL SPECIAL IMPROVEMENT DISTRICT FUNDS OF THE COUNTY BE IT RESOLVED by the Board of County Commissioners (the `Board") of Jefferson County, Montana(the"County"), as follows: ' Section 1. Creation of Rural Special Improvement District Revolving Fund. In order to secure the prompt payment of principal of and interest on rural special improvement district bonds or warrants hereafter issued by the County,pursuant to Montana Code Annotated, Title 7, ' Chapter 12,Part 21, as amended(the "Act"), and determined by the Board to be so secured in accordance with the Act(collectively,the`Bonds',there is hereby created and established pursuant to Montana Code Annotated, Sections 7-12-2181 through 7-12-2186, as amended, a ' fund of the County to be kept and maintained by the County Treasurer separate and apart from all other funds of the County,and to be designated as the"Rural Special Improvement District Revolving Fund" (the"Revolving Fund"). ' Section 2. Funding of Revolving Fund. In order to provide funds for the Revolving Fund, the.Board: ' (a) from the proceeds of an issue of Bonds, shall deposit five percent(5%) of the original principal amount thereof in the Revolving Fund, as autlorized and required ' by Section 7-12-2153(2) of the Act; (b) may, in its discretion and from time to time, transfer to the Revolving Fund ' from the general fund of the County such amount or amounts as may be deemed necessary, and such amounts so transferred shall be considered to be loans from the general fund to the Revolving Fund; and ' (c) shall, in addition to or in lieu of such transfers from the general fund, levy and collect for the Revolving Fund a property tax on all of the taxable property in the ' County in amounts and at times sufficient to meet the financial requirements of the Revolving Fund. ' The aggregate amount of the levies and transfers authorized by clauses (b) and(c)hereof shall not cause the balance in the Revolving Fund to exceed five percent(5%) of the principal amount of the Bonds then outstanding. Section 3. Loans from Revolving Fund. Whenever the principal of or interest on any Bond shall become due and payable during the period of the undertaking of the Board to pledge the Revolving Fund to the payment thereof, and there shall then be either no money or insufficient money to pay the same in the rural special improvement district fund upon which the ' 2 Bond is drawn(after the exhaustion of the district reserve account for the district, if any, as ' provided in Section 7-12-2153 of the Act), an amount sufficient to make up the deficiency shall be loaned by the Revolving Fund to such district fund,to the extent such funds are available, as provided in the next succeeding paragraph. Thereupon, the principal of or interest on such Bond ' shall be paid from the money in the district fund, as supplemented by the loan. In the event that the balance on hand in the Revolving Fund fifteen days prior to any date ' when interest is due on any Bonds is not sufficient to make good all deficiencies then existing in the special improvement district funds for which Bonds are outstanding, the balance on hand in the Revolving Fund shall be allocated to the funds of the special improvement districts in which ' such deficiencies then exist in proportion to the amounts of the deficiencies, until all interest accrued on all Bonds has been paid. On any date when all accrued interest on Bonds has been paid, any balance remaining in the Revolving Fund shall be loaned or advanced to the special ' improvement district fund for payment and redemption of Bonds to the extent the special improvement district fund is deficient for such purpose, and, if money in the Revolving Fund is insufficient for all Bonds then to be paid or redeemed, in an amount proportionate to the amount ' of such deficiencies. Section 4. Lien and Loan Repayment. Whenever any loan is made to any rural special improvement district fund from the Revolving Fund, the Revolving Fund shall have a lien therefor on the land within the district which is delinquent in the payment of its assessments and on all unpaid assessments and installments of assessments on such district(whether delinquent or ' not) and on all money thereafter coming into such district fund,to the amount of such loan, together with interest thereon from the time it was made at the rate of interest bome by the Bond with respect to which such loan was made. Whenever there is money in the rural special improvement district fund which is not required to pay principal of or interest on any Bond, so much of such money as may be necessary ' to pay the loan provided for in Section 3 shall,by order of the Board,be transferred to the Revolving Fund. After all of the Bonds drawn on any rural special improvement district have been fully paid, all money remaining in such district fund(including the district reserve account) shall,by order of the Board,be transferred to the Revolving Fund;provided,however,if the Board determines that the balance in the Revolving Fund is adequate for the purposes thereof, ' the Board, in its discretion,may transfer money in the district fund(but not money in the district reserve account)to the district's maintenance fund. If after all the Bonds drawn on any rural special improvement district have been fully paid and all moneys remaining in such district fund have been transferred to the Revolving Fund and the loan from the Revolving Fund pursuant to Section 3 has not been fully repaid, the Board ' may foreclose the lien upon property within the district owing unpaid assessments to the district for the purpose of paying off said loan to the Revolving Fund. Section 5. Covenants To Utilize Revolving Fund. In connection with the sale and ' issuance of rural special improvement district bonds or warrants, the Board may undertake and agree to secure said bonds or warrants by the Revolving Fund and to issue orders annually authorizing loans or advances from the Revolving Fund to the district fund upon which the bonds or warrants-are-drawn in amounts sufficient to make good any deficiency in the bond-and interest 3 accounts thereof, to the extent that funds are available in the Revolving Fund; and the Board may ' further undertake and agree to provide funds for the Revolving Fund by annually making the tax levy or, in lieu thereof, the transfers from the general fund provided in Section 2, subject to any limitations imposed by law. ' Such covenants to utilize the Revolving Fund in connection with a particular issue of Bonds shall be binding upon the County so long as any principal of or interest on such Bonds ' remains unpaid or as otherwise then provided by law or in the resolution authorizing the issuance of such Bonds. ' In addition, to address levy limit laws, the County is authorized to make covenants in resolutions authorizing the issuance of Bonds to the effect that the County will reduce correspondingly other property tax levies of the County to the extent required to make available ' funds for the Revolving Fund by the levy of a property tax. Section 6. Surplus Funds in Revolving Fend. Subject to any covenants undertaken by ' the Board pursuant to Section 5, whenever the moneys on deposit in the Revolving Fund exceed five percent(5%) of the principal amount of the Bonds then outstanding, and the Board deems any part of such excess to be greater than the amount necessary for the payment or redemption of ' outstanding Bonds or the payment of interest thereon, the Board may order all or any part of the amount the Board considers greater than the amount necessary to be transferred to the general fund of the County. Section 7. Loans To Make Emergency Repairs. Whenever any rural special improvement district maintenance fund does not have sufficient moneys to pay the cost of emergency repairs, the Board may loan money from the Revolving Fund to such district maintenance fund as permitted by Montana Code Annotated, Section 7-12-2183, as amended; provided that such loan shall be made only from funds in the Revolving Fund that maybe transferred to the general fund in accordance with Section 6. ' Done and dated this 8a'day of May, 2007. KEN WEBER, C] TO" E LYTHGOE OMTIISSIONER S Lw 5&wz'a� CHUCK NOTB HM, COMMISSIONER Attest: Bonnie Ramey, Clerk & ' Recorder. _ ' 4 1 1 1 1 1 1