HomeMy WebLinkAbout1996-07-08 96-306 ORDERCOUNCIL ACTION
Date: 7-8-96 Item No 96-306
Item/8ubject: ORDER Authorizing an Issue of $1,500,000 Aggregate
Principal Amount of Bonds and a Tax Levy Therefor for various
City and School Department projects
Reaponeible Department: City Manager
CO®antaryl The attached Order would authorize bunch for a variety of School
Department and City projects. The largest portion is for the School Department
and is designed to address avre
iety of heads identified in recent "are.
This is the second portion ofa three year project to address these needs.
The i includes $1.000,000 in Bond Anticipation Note$ for new projects
and $1,500,000 in Bond Anticipation Notes to retire those that were issued
last year.
City projects include repaving and reroofing at the Motor Pool, improvement,
to Sawyer N9na, reroofing the Central Fire Station and various RACTS
projects.
Prior to formal action on this 6Mer, a public hearing is required.
Additionally, 'a two thirds majority of the Council must approve the issuance
of this debt.
Associated Infotmeticn:
Budget Approval:
PINANCP DIRECTOR
Legal Approval:
CITY SOLICIT
_Introduced For
_ Passage
• First Reading Page of_
• Referral to Finance Committee
?wIy Ir 5/1.�
&=-151111.•
Aarigmd [o CowcOw Blanchette July 8, 1996
r CITY OF BANGOR
(TITLE.) 0HT1>ET,11.1..1.,.,, AUTHORISING. AN ISSUE OF _$1,500,000 AGGREGATE
PRINCIPAL AMOUNT OF BONDS, PLUS UP TO 38 OF THE PRINCIPAL AMOUNT
TO FUND ISSUANCE COSTS, AND A TAX LEVY THEREFORE FOR VARIOUS
61TY AND-WHOOL DEPARTMENT PROSBCTS
By Nm city CesseV efthe City afBanssr..
1 t �
THAT
Pursuant to 30-A M.R.S.A. §5072, Section 8 of
Article VI of the City Charter (Private and Special Laws of 1931,
Chapter 56) authority thereto enabling, there Is hereby
authorised the issue up to One Million Five Hundred Thousand
Dollars ($1,500,000) aggregate principle amount of general
obligation bonds of the City of Bangor, plus up to three percent
(38) of the principal amount of each issue or
series to fund
issuance casts. The proceeds derived from the sale of said
Bonds, less premium, if any, will be used and are hereby
appropriated to pay the costs (as herein defined) for the
projects listed below as follows:
Prosect Amount Prviect of Utility
(000'x)
Roof Replacement/Paving, Motor Pool $190.0 10-15 years
Roof Repair, Central Fire Station 35.0 15 years
Sawyer Arena Improvanents 150.0 20 years
Bangor Area Comprehensive Trans-
portation Study Projects 175.0 15-20 years
Various School Department Projects 1,000.6 10 years
Total $1,500.0
THAT the estimated period of utility for the properties
Constitutes the projects to be financed with the proceeds of said
bonds is hereby determined to be the period of utility shown
above.
TMT the date, maturities, denominations, interest rate or
rates, place of payment and other details of each issue of said
bands, including the timing and provision for their sale and
award and the selection of an underwriter, shall be determined by
the Finance Director, or Acting Finance Director, with the
IN CITY COUNCIL
July B, 1996
First Reading
Referred to Finance
co® ttee
rS4;n1 CLE
COUNCIL
July 22, 1996
Public Rearing Opened
No Cements were beard
Public Rear -Closed
Paas a
CITY CLERM
96-306
0"R➢ER
Iftle, Autborizng an Issue of
$1,500,00 Aggregate Principal
Amount of Bonds, .Plus; Up To 3%
'of'Erie'eiiricfQel'Aw6udf'6 Wuj 044''4
Issuance Costs, and e Tex Levy
.ThexeEaxe .ECxXaxl4Va Qi" .444 Acho2l
Paper Projects.
Paper
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Councilman
f'.
96-306
approval of the Finance Committee and the Chairman of the City
Council, and said bonds shall be signed by the Finance Director,
or Acting Finance Director, countersigned by the Chairman of the
City Council, sealed with the seal of the City, attested by its
Clerk, and shall be in such form and contain such terms and
provisions as they may approve, their approval to be conclusively
evidenced by their execution thereof. Any issue of bonds may be
consolidated with and issued at the same time as any other issue
of bonds authorised prior to their issuance, and the bonds may be
divided into multiple series and issued in separate plans of
financing, all as determined in the discretion of the Finance
Director, or Acting Finance Director, with the approval of the
Finance Committee and the Chairman of the City Council.
THAT if the Finance Director, Acting Finance Director,
Chairman of the Council, or Clerk are for any reason unavailable
to approve and execute the Bonds or any of the Bond Documents,
the person or persons then acting in any such capacity, whether
as an assistant, a deputy, or otherwise, is authorized to act for
such official with the same force and effect as if such official
had himself performed such act.
THAT the investment earnings on the proceeds of the Bands,
If any, and the excess proceeds of the Bonds, if any, be and
hereby are appropriated for the following purposes, such proceeds
to be held and applied in the following order of priority:
1. To any costs of the Project in excess of the principal
amount of the Bonds;
2. In accordance with applicable terms and provisions of
the Arbitrage and the use of Proceeds Certificate
delivered in connection with the sale of the Bonds
including, to the extent permitted thereunder, to the
City's General Fund.
THAT the bonds hereby authorized may be made subject to call
for redemption, with or without a premium, before the date fixed
for final payment of the bonds, as provided in 30-A M.R.S.A.
45772(6), as amended, as shall be determined by the Finance
Director, or Acting Finance Director, with the approval of the
Finance Committee and the Chairman of the City Council.
THAT, in each of the "are during which any of the bonds are
outstanding, there shall be levied a tax in an amount which, with
other revenues, if any, available for that purpose, shall be
sufficient to pay the interest on said bonds, payable in such
"are, and the principal of such bonds maturing in such years.
THAT, pursuant to 30-A M.R.S.A. §5772, Section 10 of Article
vI of the City Charter and any other authority thereto enabling,
96-306
the Finance Director, or Acting Finance Director, with approval
of the Finance Committee and the Chairman of the City Council, is
hereby authorized to issue temporary notes of the City in
anticipation of the foregoing bond issue, said notes to be signed
by the Finance Director, or Acting Finance Director,
countersigned by the Chairman of the City Council, sealed with
the seal of the City, attested to by its Clerk, and otherwise to
be in such form and contain such terms and provisions, including
without limitations, maturities, denominations, interest rate or
rates, place of payment and other details as they shall approve,
their approval to be conclusively evidenced by their execution
thereof.
THAT any temporary notes (including notes in renewal
thereof) authorized to be issued under this Order may be issued
In combination with temporary notes (including notes in renewal
thereof) and bonds authorized to be issued by the City Council at
any time .prior to the date of issuance of the temporary notes.
THAT the Finance Director, or Acting Finance Director, be
and hereby is authorized to appoint the registrar, paying agent
and transfer agent (the "Transfer Agent") for the bends of the
City.
THAT the bonds issued hereunder shall be transferable only
upon registration books of the City kept by the Transfer Agent
and said Honda of are maturity may be exchanged for an equal
aggregate principal amount of bonds of the same maturity (but not
of another maturity) in the denomination of $5,000 or any
multiple thereof, upon surrender thereof at the principal office
of the Transfer Agent, with a written instrument of transfer
satisfactory to the Transfer Agent duly executed by the
registered owner or his attorney duly authorized in writing.
THAT, upon each exchange or transfer of bonds, the City and
Transfer Agent shall make a charge sufficient to cover any tax,
fee or other governmental charge required to be paid with respect
to such transfer or exchange, and subsequent to the first
exchange or transfer, the cost of which shall be borne by the
City, the cost of preparing new bonds upon exchanges or transfers
thereof shall be paid by the person requesting the same.
THAT the Finance Director, or Acting Finance Director, and
the Chairman of the City Council be and hereby are authorized to
undertake all acts necessary to provide for the issuance and
transfer of the bonds in book -entry form pursuant to the
Depository Trust Company Book -Entry Only system, as an
alternative to the provisions of the foregoing resolution
regarding physical transfer of bonds, and the Finance Director,
or Acting Finance Director, be and hereby is authorized and
empowered to enter into a Letter of Representation or any other
96-306
contract, agreement or understanding necessary or, in his
opinion, appropriate in order to qualify the bonds for
participation in the Depository Trust Company Book -Entry Only
System.
THAT the Finance Director, or Acting Finance Director, and
the Chairman of the City Council shall from time to time execute
such bonds and notes as may be required to provide for exchanges
or transfer of bonds and notes as authorized herein, all such
bonds and notes to bear the original signature of the Treasurer
and the Chairman of the City Council, and in the case of any
officer of the City whose signature appears on any bond or note
shall cease to be such officer before the delivery of such bond
or note, such signature shall nevertheless be valid and
sufficient for all purposes, the sam as if such officer had
remained in the office until delivery thereof.
THAT the Finance Director, or Acting Finance Director,
Chairman of the City Council, Clerk and other proper officials of
the city be, and hereby are, authorized and empowered in its name
and on its behalf to do or cause to be done all such acts and
things as may be necessary or desirable in order to effect the
Bale and delivery of the bonds and notes as
hereinbefore authorized.
THAT the City covenants and certifies that no part of the
proceeds of the issue and sale of the bonds or notesauthorized
to be issued by this Order shall be used, directly or indirectly,
to acquire any securities or obligations, the acquisition of
which would cause such bonds or notes to be "arbitrage bonds'
within the meaning of Section 148 of the Internal Revenue Code of
1986, as amended.
THAT, the Finance Director, or Acting Finance Director, be
and hereby is authorized to covenant and agree on behalf of the
city and for the benefit of all the holders of all bonds and
notes issued hereunder that the City will file any required
reports and take any other action that may be necessary to insure
that interest on the bonds and any notes issued in anticipation
thereof, will remain exempt from Federal income taxation, and
that the City will refrain from taking any action that will cause
interest on the bonds or notes to be subject to Federal income
taxation.
THAT, the officers executing the Bonds be and hereby are
individually authorized to covenant, certify and agree, on behalf
of the City, for the benefit of the holders of such Bonds, that
the City will file any required reports, make any annual
financial or material event disclosure, and take any other action
96-346
that may be necessary to insure that the disclosure requirements
imposed by Rule 15c2-12 of the Securities and Exchange
Commission, if applicable, are met.
THAT the Finance Director, or Acting Finance Director, be
and hereby is authorized and empowered in the name of the City
and on its behalf to determine whether the bonds authorized
hereunder will be sold through a negotiated sale or competitive
bid. The Finance Director, or Acting Finance Director, be and
hereby is authorized and empowered to execute and deliver in the
name of and on behalf of the City any and all loan agreements,
contracts, certificates and other documents necessary or, in his
opinion, appropriate in connection with the negotiated sale or
competitive bidding.
THAT the Finance Director, or Acting Finance Director, be
and hereby is authorised and empowered to take all such action as
may be necessary to designate such of the bonds as qualified tax-
exempt obligations for purposes of Section 265(b) of the Code; it
being the City Council's intention that the Finance Director, or
Acting Finance Director, with advice of bond counsel, makes the
required Section 265(b) election with respect to such bonds to
the extent the election may be available and advisable as
determined by the Finance Director, or Acting Finance Director.
THAT this Order constitutes a Declaration of Official Intent
by the City pursuant to Treasury Regulation 51.150-2 to reimburse
any original expenditures made on the Project out of the General
Fund and that the City Intends to issue the bonds on a tax-exempt
basis to the extent they qualify for such treatment, and
otherwise to issue such bonds on a taxable basis.
THAT the term "Cost" or "Costs' as used herein and a
applied to the Project, or any portion of the Project, includes,
but is not limited to (1) the purchase price or acquisition cost
of all or any portion of the Project; (2) costs of construction,
building, alteration, enlargement, reconstruction, renovation,
improvement and equipping of the Project; (3) all appurtenances
and other facilities either on, above or under the ground which
are used or usable in connection with the Project; (4)
landscaping, site preparation and remodeling of any improvements
or facilities; (5) the coat of all labor, materials, building
systems, machinery and equipment; (6) the cost of all lands,
structures, real property interests, rights, easements and
franchises acquired in connection with the Project; (7) the cost
of all utility extensions and site development; (8) the
specifications, surveys , engineering, feasibility studies, legal
and other professional services; (9) the cost of environmental
studies and assessments; (10) the cost of financing charges and
issuance costs, including premiums for insurance, interest prior
to and during construction, underwriters' fees and costa, legal
96-306
and accounting fees and costs, application fees and other
financing fees, the cost of reserves for payment of future debt
service related to the financing transaction; and (11) the coat
of all other expenses necessary or incident to the Project and
the financing authorized hereunder. -
PUBLIC HEARING
CITY OF BANGOR
$1,500,000 in General Obligation Bonds
Various City and School Department Projects.
The Bangor City Council will hold a public hearing at its regular meeting at
7:30 PM on Monday, July 22, 1996 in the City Council Chambers, on the
third floor of City Hall, 73 Hadow Street, Bangor, Maine, for the purpose of
--.hearing. public comment on the proposed issuance of $1.,500,000 in
general obligation bonds to fund a variety of City and School Department
Projects as follows: Roof repair and paving projects at the Motor Pool
($140,000); improvements to Sawyer Arena ($150,000); mofng at the
Central Fire Station ($35,000); the widening of Broadway pursuant to the
Bangor Area Comprehensive Transportation Study ($175,000); and
various major School Department maintenance and improvement projects
($1,000,000).
A copy of the emirs bond order is available to the public in the City Clerk's
Office at Bangor City Hall. The public is invited to address the Council on
this proposed bond issue.
July 9, 1996. Gari_ E., Ca6p6e11s..City :Gl@rk.
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