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HomeMy WebLinkAbout1995-06-26 95-294 ORDERCOUNCIL ACTION Date: 6-26-95 Item No. 95-294 Item/Subject: ORDER, Authorizing an Issue of $2,030,000 Aggregate Principal Amount of Bonds and a Tax Levy Therefor for Various City and School Department Projects Responsible Department: City Manager The attached Order would authorize bonds fora variety of School Department and City projects. The largest portion is for the School Department and Is designed to address a variety of needs including major maintenance to school buildings, ADA compliance, and tank removal. This is the first portion of a three year project to address these needs. we anticipate that the $1.5 million for these purposes will be obtained through issuing Bond Anticipation Notes which will allow for the additional debt service to be absorbed over time as existing debt is paid off. The City projects include tank removal projects at the Armory, Fire Department, and Motor Pool, Dakin Pool Improvements, Sawyer Arena Improvements, and the final amount required to complete closure of Kittredge Road landfill. Prior to formal action on this Order, a Public Nearing moat be held. A two- thirds majority of the Council most approve the issuance of debt. Department Mead Manager's Commence: KKJ�.1/ KK�S t��ITF 1,U City Manager Associated Information: Order Budget Approval: V Finance DiDi ect� Legal Approval: City Sol r Introduced For Passage _2L First Reading page of � Referral to Finance Committee 95-294 Anipted to Counedor Soucy June 26, 1995 CITY OF BANGOR (TITLU (®rber, AUTHORIZING AM ISSUE OF $2,030,000 AGGREGATE PRINCIPAL AMOONT OF BONDS AMD ATAE LEVY THEREFOR POR VARIOUS CITY ARD By W City CosuaR of Us cup of Ba .. ORDERRD, TWT Pursuant to 30-A M.R.S.A. S5772, Section 8 of Article VI of the City Charter (Private and Special Laws of 1931, Chapter 56) authority thereto enabling, there is hereby authorized the issue up to Two Million Thirty Thousand Dollars ($2,030000) aggregate principle amount of general obligation bonds of the City of Rangar, plus up to three percent (38) of the principal amount of each issue or series to fund issuance costs. The proceeds derived front 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: Pr'olect Amount Tank removal, Armory 100000 10 pears Task removal, Fire Dept 50,000 10 years Task removal, Motor Pool 1120000 10 years Dakin Pool Improvements 100,000 10 years Sawyer Arena Improvements 150,000 20 years Rittridge Landfill Closure 100,000 20 years Various School Dept Projects 1.500.000 10 years TOTAL $21030,D00 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. TRAT the date, maturities, dentainations, interest rate or rates, place of payment and other details of each issue of said bonds, 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 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 95-294 to be conclusively evidenced by their execution thereof. Any issue of bonds may be consolidated with and issued at the same time as any ether Issue of bonds authorized prior to their issuance, Bud the bonds may be divided into multiple series and issued in separate plane 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 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 H.R.S.A., 55702(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 years during which any of the bonds are outstanding, them 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 years, and the principal of such bonds maturing in such years. THAT, pursuant to 30-A M.R.S.A.S5772, Section 10 of Article Vi of the City Charter and any other authority thereto enabling, the Finance Director, or acting Finance Director, with approval of the Finance Committee and the Chairman of the City Council, is hereby authorised 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, countereigned by the Chairman of the City Council, sealed with the Beal of the City, attested 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 ether details as they shall approve, their approval to be conclusively evidenced by their execution thereof. THAT any teaporary 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 bonds of the City. THAT the bonds issued hereunder shall be transferable only upon registration hooka of the City kept by the Transfer Agent and said Honda of one 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 written instrument of transfer satisfactory to the Transfer Agent duly executed by the registered owner or his attorney duly authorized an writing. 95-296 THAT, upon each exchange or transfer of bonds, the City and the Transfer Agent shall make a charge sufficient to cover any tax, fee or ether 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 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 o 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 nate, such signature shall nevertheless be valid and sufficient for all purposes, the same 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 an 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 issuance, sale 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 notes authorized 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 198 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 95-294 taking any action that will cause interest on the bonds or notes to be subject to Federal income taxation. 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. mixT the Finance Director, or acting Finance Director, be and hereby is authorized 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 Cede; 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 81.150-2 to reimburse any original expenditures made on the Project out of the general fund, and that the City intently 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 "Coat" or "Costs" as used herein and as applied to the Project, or any portion of the Project, includes, but is not limited to (1) the purchase price or acquisition coat of all or any portion of the Project; (2) costa 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 cost of all labor, materials, building systema,machinery and equipment; (6) the cost of all lands, structures, real property interests, rights, easements and franchisee 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 chargee and issuance costs, Including premiums for insurance, interest prior to and during construction, underwriters,' fees and costs, legal and accounting fees and Costs, application fees and other financing fees, the coat of reserves for payment of future debt service related to the financing transaction; and (11) the cost of all other expenses necessary or incident to the Project and the financing authorized hereunder. IN CITY COUNCIL June 26, 1995 First Reading Referred to Appropriate vcoxee weae ITY CLE IN CITY COUNCIL July 10, 1995 Public Rearing held - No Comments from the general Public ORDER - Passed by the Following vote: 9 Yee Voting Yes: Soldered, Blanchette, Cohen, Frankel, Popper, Soucy, So v Tyler d WoowOo cock CITY C 95 -294 ORDER Title,Aytltoriping an Issues of /2,030,00 Aggregate Principal Amount of Bonds and Tao ryry Therefor for various City. and 5211ab'$x%-.a"'ydflg(t Y[O,{ECTB: ................................... a TI]� "iged to Councilman PUBLIC HEARING CITY OF BANGOR $975,000 In General Obligation Tax Increment Financing Bonds The Bangor City Council will hold a public hearing at 7:30 p.m. on Monday, July 10, 1995 in the City Council Chambers, 3rd Floor, Bangor City Hall, 73 Harlow Street, Bangor, Maine for the purpose of hearing public Comment on the proposed issuance of $975,000 in general obligation tax increment financing bonds to be need for development of certain public improvements, including sewer line improvements, renovation of the Bangor Gasworks site and street and traffic improvements, and certain real estate improvements associated with construction of a supermarket, equipment to be installed in the supermarket and associated development costa as more specifically described in the 'Main Street Municipal Development District and Tax Increment Financing Development Program" adopted by the City Council on .June 12, 1995. A copy of the entire bond order as well as the "Main Street Municipal Financing Development Programs is available to the public in the City Clerk's Office, Bangor City Hall. All members of the public are invited to address the Council on this proposed bond issue. June 30, 1995 Russell J. McKenna City Clerk