HomeMy WebLinkAbout2018-08-13 18-321 ORDERTitle, Order
CITY COUNCIL ACTION
Council Meeting Date: 08/13/2018
Item No: 18-321
Responsible Dept: Finance
Requested Action: Order
08/13/2018 18-321
Map/Lot: N/A
Authorizing Refinancing of Certain City of Bangor's Existing Bond Obligations (Series 2009A) and the Issuance
of the City's General Obligation Refunding Bonds and a Tax Levy There For
Summary
The attached Order would authorize the issuance of $1,555,000 of currently outstanding general obligation
bonds to refinance general obligation bonds issued in 2009. The City's general obligation bonds typically
include a call feature 10 years into their life. The anticipated interest rate savings are expected to exceed
$100,000. The City will maintain the final maturity date of September 2028.
This Order will require a Public Hearing at the August 27th City Council Meeting.
Committee Action
Committee: Finance Committee Meeting Date:
Action: Recommend for passage For: Against:
Staff Comments & Approvals
cot �, � 141
City Manager
Introduced for: First Reading
City Solicitor
Finance Director
CITY OF BANGOR ORDER
Date: 08/13/2018
Item No: 18-321
Assigned to Councilor: Davitt
08/13/2018 18-321
Authorizing Refinancing of Certain City of Bangor's Existing Bond Obligations (Series 2009A) and the Issuance
of the City's General Obligation Refunding Bonds and a Tax Levy There For
WHEREAS: the City of Bangor previously issued its 2009 Series A general obligation bonds to finance the costs
of certain capital improvement and in furtherance of other municipal purposes (the "Prior Bonds"); and
WHEREAS: due to the drop in available interest rates, the City desires to advance refund and refinance a
portion of the Prior Bonds through issuance of its general obligation refunding bonds;
Following a public hearing held upon due notice posted and published pursuant to Article VIII, Section 13 of
the City Charter,
Be it Ordered by the City Council of the City of Bangor that,
THAT pursuant to 30 A M.R.S.A. §5772, Section 13(f) of Article VIII of the City Charter (Private and Special
Laws of 1931, Chapter 54 and all amendments thereof and acts additional thereto), and all other authority
thereto enabling, and to evidence such loan, there is hereby authorized the issue and sale at one time and
from time to time the City's general obligation bonds in like amount to the above authorized loan, not to
exceed the aggregate principal amount of One Million Five Hundred Fifty-five Thousand Dollars ($1,555,000).
The proceeds derived from the sale of said bonds, including premium, if any, and any investment earnings
thereon shall be used and are hereby appropriated to refund a portion of the Prior Bonds, to pay redemption
premium thereon, if any, interest accrued and unpaid to the redemption date and issuance costs with respect
thereto.
THAT the date, maturities (not to exceed the maximum term permitted by law), denominations, interest rate
or rates, place of payment, and other details of said bonds, including the timing and provision for their sale
and award shall be determined by the Finance Director with the approval of the Finance Committee.
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. §5772(6), as amended, as
shall be determined by the Finance Director with the approval of the Finance Committee.
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THAT said bonds shall be signed by the Finance Director, countersigned by the Chair of the City Council,
sealed with the seal of the City, attested by its Clerk, and that said bonds shall be in such form and contain such
terms and provisions not inconsistent herewith 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 authorized prior to their issuance, and the bonds may be divided into multiple series and
issued in separate plans of financing, with the approval of the Finance Committee
THAT in each of the years during which any of the bonds are outstanding, there shall be levied a tax in
an amount that, 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 the bonds shall be transferable only on the registration books of the City kept by the transfer
agent, and said principal amount of the bonds of the same maturity (but not of other maturity), 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 or her attorney duly authorized in writing.
THAT the Finance Director and Chair of the City Council from time to time shall execute such bonds as
may be required to provide for exchanges or transfers of bonds as heretofore authorized, all such bonds to bear
the original signature of the Finance Director and Chair of the City Council, and in case any officer of the City
whose signature appears on any bond or note shall cease to be such officer before the delivery of said bond or
note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had
remained in office until delivery thereof.
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 in lieu of physical certificates of the bonds hereinbefore authorized, the Finance Director be and
hereby is authorized to undertake all acts necessary to provide for the issuance and transfer of such bonds in
book -entry form pursuant to the Depository Trust Company Book -Entry Only System, as an alternative to the
provisions of the foregoing paragraphs regarding physical transfer of bonds, and the 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 her opinion, appropriate in order to qualify the bonds for and participate in
the Depository Trust Company Book -Entry Only System.
THAT the officers executing such bonds be and hereby are individually authorized and directed to
covenant and certify on behalf of the City that no part of the proceeds of the issue and sale of the bonds
authorized to be issued hereunder shall be used directly or indirectly to acquire any securities or obligations, the
acquisition of which would cause such bonds to be "arbitrage bonds" within the meaning of Section 148 of the
Internal Revenue Code of 1986, as amended (the "Code').
THAT the officers executing such bonds be and hereby are individually authorized to covenant and agree,
on behalf of the City, for the benefit of the holders of such bonds, that the City will file any required reports and
take any other action that may be necessary to ensure that interest on the bonds will remain exempt from
federal income taxation and that the City will refrain from any action that would cause interest on the bonds to
be subject to federal income taxation.
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THAT the Finance Director be and hereby is authorized and empowered to take all such action as may
be necessary to designate the bonds as qualified tax-exempt obligations for purposes of Section 265(b) of the
Code; it being the City Council's intention that, to the extent permitted under the Code, the bonds be Section
265(b) designated and that the Finance Director with advice of bond counsel, make the required Section 265(b)
election with respect to such bonds to the extent that the election may be available and advisable as determined
by the Finance Director.
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 that may be necessary
to ensure that the disclosure requirements imposed by Rule 15c2-12 of the Securities and Exchange Commission,
if applicable, are met.
THAT the term "cost" or "costs" as used herein and applied to the Project, or any portion thereof,
includes, but is not limited to: (1) the purchase price or acquisition cost of all or any portion of the Project; (2)
the cost of construction, building, alteration, enlargement, reconstruction, renovation, improvement, and
equipping of the Project; (3) the cost of all appurtenances and other facilities either on, above, or under the
ground which are used or usable in connection with the Project; (4) the cost of landscaping, site preparation,
and remodeling of any improvements or facilities; (5) the cost of all labor, materials, building systems, machinery
and equipment; (6) the cost of land, structures, real property interests, rights, easements, and franchises
acquired in connection with the Project; (7) the cost of all utility extensions and site improvements and
development; (8) the cost of planning, developing, preparation of specifications, surveys, engineering, feasibility
studies, legal and other professional services associated with the Project; (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 and, following completion of construction, for a period not to exceed 3
years from the issue date thereof, underwriters' fees and costs, legal and accounting fees and costs, application
fees, and other fees and expenses relating to the financing transaction; and (11) the cost of all other financing
authorized hereunder, whether related or unrelated to the foregoing.
THAT the investment earnings on the proceeds of the bonds, if any, and the excess proceeds of the
bonds (including premium), if any, be and hereby are appropriated for the following purposes:
1. To any costs incurred to refund the Prior Bonds;
2. In accordance with applicable terms and provisions of the Arbitrage and 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;
3. To pay debt service on the bonds.
THAT if the actual cost of any Project differs from the estimated cost set forth herein, the Finance Director
is authorized, in her discretion to reallocate proceeds of the Bonds to any other listed Project.
THAT the Finance Director, Chair 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, and to execute, deliver, file, approve, and record all such financing documents, contracts, agreements,
deeds, assignments, certificates, memoranda, abstracts, and other documents as may be necessary or advisable,
with the advice of counsel for the City, to carry out the provisions of the resolutions heretofore adopted at this
meeting in connection with the Project, the issuance, execution, sale, and delivery by the City of the bonds and
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the execution and delivery of the documents, including the entering into of a Loan Agreement with the Bond
Bank, as may be necessary or desirable.
THAT if any of the officers or officials of the City who have signed or sealed the bonds hereinbefore
authorized shall cease to be such officers or officials before the bonds so signed and sealed shall have been
actually authenticated or delivered by the City, such bonds nevertheless may be authenticated, issued, and
delivered with the same force and effect as though the person or persons who signed or sealed such bonds had
not ceased to be such officer or official; and also any such bonds may be signed and sealed on behalf of the
City by those persons who, at the actual date of the execution of such bonds, shall be the proper officers and
officials of the City, although at the nominal date of such bonds any such person shall not have been such
officer or official.
THAT if the Finance Director, Chair of the City Council, or Clerk are for any reason unavailable to approve
and execute the bonds or any related financing 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 or herself performed such act.
THAT during the term any of the bonds are outstanding, the Finance Director is hereby authorized, in
the name and on behalf of the City, to issue and deliver refunding bonds on either a current or advance refunding
basis, to refund some or all of the bonds then outstanding, and to determine the date, form, interest rate,
maturities (not to exceed 30 years from the date of issuance of the original bonds) and all other details of such
refunding bonds including the form and manner of their sale and award. The Finance Director is hereby further
authorized to provide that any of such refunding bonds hereinbefore authorized be made callable, with or without
premium, prior to their stated date(s) of maturity, and each refunding bond issued hereunder shall be signed by
the Finance Director, countersigned by the Chair of the City Council, sealed with the seal of the City, attested
by its Clerk.
IN CITY COUNCIL
AUGUST 27, 2018
CO 18-326
PASSED
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CITY CLERK
IN CITY COUNCIL
AUGUST 13, 2018
CO 18-321
FIRST READING
CITY CLER9 BneZi-:w4.2
IN CITY COUNCIL
AUGUST 27, 2018
CO 18-321
MOTION MADE AND SECONDED TO OPEN PUBLIC HEARING
PUBLIC HEARING OPENED
MOTION MADE AND SECONDED TO CLOSE PUBLIC HEARING
PUBLIC HEARING CLOSED
MOTION MADE AND SECONDED FOR PASSAGE
PAWED
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CITY CLERK