HomeMy WebLinkAbout1995-09-11 95-400 ORDERCOUNCIL ACTION
Date: 9-11-95 Item No 95-400
Item/Subject: ORDER, Ratifying and Approving the Issuance of $2,500,000
Aggregate Principal Amount of General Obligation Bonds
and a Tax Levy Therefor
Responsible Department: City Manager
Commentary:
On Nay 22, 1995 the City Council adopted a bond order authorizing the.
issuance of $2,500,000 in bonds for purposes of renovating and adding to the -
Bangor Public Library. That bond order was adopted in accordance with the
City's charter provisions which require publication of a notice of public
hearing on a bond order ten days prior to the meeting at which the bond order
is adopted along with posting notice in two public places. As we prepare to
sell the first installment of the Library Bonds ($500,000(, our bond counsel
has informed us that due to the Library's statue of a 501C-3 Tax Exempt
Institution, Internal Revenue guidelines require that a public notice of a
hearing be given at least fourteen days in advance of a Council vote to
authorize bonds for such an agency. As a result, it is neceasary to ratify
and reapprove the action of the Council at its May 22nd meeting.
The attached Bond Order has been drafted and provided to us by our bond
attorneys and will meet the requireaents of the IRS regulations.
Please note that prior to acting on this Order, the Council must hold a
public hearing to conform with Treasury Department regulations.
nF.PARTMFNT HFAn
Manager's Comments:
As noted above, this action is necessary in order to fully comply with
regulations regarding the issuance of tax exempt bonds for the benefit of a
501C-3 organization. I would recommend your approval.
Associated Information:
Order
Budget Approval:
ECTO
Legal Appmval:
Introduced For
X Passage
First Reading Pege of_
_ Referral
95-400
Amigned to CamcOo, Soucy September 11, 1995
CITY OF BANGOR
UR66) WIDCT Ratifying and_Appmving the Issuance gf_a 62,500,000
Y..............
Aggregate Principal Amount of General Obligation Bonds and a Tax Levy
Therefor
By w City CoyroB of Nm City ofBynpor:
ORDERED,
TT pursuant M.R.S.A. a 5]]2, Section B of Article VI Of
the City�arter(Private and Special Lave of 1931, Chapter 56) and
all amendments thereof and actions additional thereto, and all other
authority thereto enabling, there is herehy authorized and approved
the issuance sale at one time and from time to time up to Two Million
Five Hundred Thousand Dollars ($2,500,000) aggregate principal 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 t0 fund
issuance costs, under the terms and conditions all as more
specifically described in that certain Order of the City Council dated
May 22, 1995 and titled Order, Authorizing an Issue of $2,500,000
Aggregate Principal Amount of Bonds and a Tax Levy Therefor to Support
the. Rehabilitation and Expansion of the Bangor Public LararyD
AND BE IT FURTHER ORDERED THAT, except as specifically set
forth in the, foregoing resolutions, the votes adopted by the City
Council on May 22, 1995 shall continue in full force and effect as
originally adopted and are hereby ratified, confirmed, approved, and
readopted as though more fully set forth herein.
IN..CITY Caucit.
:September -11, 1995
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CITY C RK
95-400
0 R D,ER
Title, Ratifying and Approving the
Issuance of a $2,500,000 Aggregate
' Principal Amount of general Oblifation
R'ddde 'edd 8 Tax YeJy `ffier Ydl: '
95-400
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