Loading...
HomeMy WebLinkAbout2019-09-09 19-364 Order 09/09/201919-364 09/09/2019 19-364 Finance Order N/A Title, Order Authorizing Refinancing of Certain of the City of Bangor’s Existing Bond Obligations (Series 2012B (Bangor Arena Project) and Series 2013B) and the Issuance of the City’s General Obligation Refunding Bonds and a Tax Levy Therefor. For several years, the City has refinanced its outstanding tax-exempt general obligation bonds on a fairly regular basis to take advantage of a continued low interest rate environment. The Tax Cuts and Jobs Act of 2017, eliminated the ability of municipalities to advance refund outstanding tax-exempt general obligation bonds with new tax-exempt general obligation bonds. With the current market condition, the City has the opportunity to advance refund portions of two of its current outstanding debt issues, the majority of its tax-exempt arena bonds and a portion of an airport taxable bond issue on a taxable basis. The largest savings that would be generated are on the arena bonds, even though the new bonds would be on a taxable basis. The initial estimated savings is approximately $2.5 million of the remaining life of the debt (Arena 2043, Airport 2034). Recommend for passage This item will require a public hearing prior to a City Council vote. 09/16/2019 First Reading & Referral Finance Committee 09/09/201919-364 CITY OF BANGOR ORDER 09/09/2019 19-364 Weston Authorizing Refinancing of Certain of the City of Bangor’s Existing Bond Obligations (Series 2012B (Bangor Arena Project) and Series 2013B) and the Issuance of the City’s General Obligation Refunding Bonds and a Tax Levy Therefor. WHEREAS, the City of Bangor previously issued (a) its 2012 Series B general obligation bonds to finance the Bangor Arena Project and (b) its 2013 Series B general obligation bonds to finance and refinance the costs of certain improvement at the Bangor International Airport (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 in order to achieve debt service savings; NOW THEREFORE, By the City Council of the City of Bangor, be it hereby ORDERED: 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 Fifty-five Million Dollars ($55,000,000). 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. 19-364 00/09/2019 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 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 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 to refinance and advance refund the Prior Bonds, included interest on the Prior Bonds, to pay issuance costs for the Bonds, including underwriters' and financial advisory fees and costs, legal and accounting fees and costs, application fees, and other fees and expenses relating to the financing transaction, and, to the extent available, to pay interest and principal on the Bonds. 19-364 00/09/2019 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 financing documents, contracts, agreements, refunding escrow agreements, certificates 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 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 SEPTEMBER 9,2019 CO 19-364 FIRST READING AND REFERRAL TO FINANCE COMMITTEE OF SEPTEMBER 16,2019 City CLERK SEPTEMBER 23,2019 CO 19-364 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 PASSED CIT17 CLERK