HomeMy WebLinkAbout2026-08-10 26-252 Order26-252 00/10/2026
THAT the City Council delegates to the Finance Director the power and authority, in the name of and on behalf
of the City, to establish, determine and approve the time of the sale, award and settlement of the bonds and
notes, which may be issued at one time or from time -to -time, through a public offering or a private sale, on a
competitive or negotiated basis, in serial form or as term debt, or some combination of any of the foregoing,
such establishment, determination and approval to be made in his/her sole discretion, all in such manner as the
Finance Director deems appropriate and in the best interest of the City, and to be conclusively evidenced by
his/her execution thereof.
THAT to the extent not payable from other funds, each year that any of the bonds remain outstanding, the City
shall levy a tax in an amount sufficient to pay the annual principal and interest on such bonds.
THAT the City Council delegates to the Finance Director the power and authority, in the name of and on behalf
of the City, to do or cause to be done all such acts and things necessary and expedient in connection with the
financing of the Projects and the issuance the bonds and notes, and the investment of the proceeds thereof,
including to select a financial or municipal advisor, underwriter, bond counsel and paying agent/registrar with
respects to the bonds and notes, and to execute, deliver and approve all agreements, investment agreements,
bond purchase agreements, preliminary and final official statements or other offering documents, escrow
agreements, continuing disclosure agreements, tax compliance agreements, or arbitrage certificates, and all
other closing certificates and documents (collectively referred to as the "Bond Documents"), which Bond
Documents may be in such form and contain such terms, conditions and provisions including, without limitation,
the waiving of the City's sovereign or governmental immunity with respect to the enforceability of any of the
forgoing, which waiver of sovereign or governmental immunity is hereby authorized, confirmed and approved,
as the Finance Director shall establish, determine and approve, such establishment, determination and approval
to be conclusively evidenced by his/her execution thereof.
THAT the City Council delegates to the Finance Director the power and authority, in the name of and on behalf
of the City:
• To covenant and agree (A) that no part of the proceeds of the bonds or notes, or the Projects, shall
be used directly or indirectly in any manner that would cause the bonds or notes to be "private activity
bonds" or "arbitrage bonds" within the meaning of Sections 141 or 148 of the Internal Revenue Code
of 1986, as amended (the "Code"), and (B) that the City will take all such action as may be necessary
to ensure that interest on the bonds or notes will remain exempt from federal income taxation and
that the City will refrain from any action that would cause interest on the bonds or notes to be subject
to federal income taxation;
• To designate such bonds or notes as qualified tax-exempt obligations for purposes of Section
265(b)(3) of the Code, to the extent such designation is available and permissible under said Section
265(b)(3); and
• To covenant, certify, and agree for the benefit of the holders of such bonds or notes, 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 Projects, or any portion thereof, includes, but
is not limited to: (1) the purchase price or acquisition cost of all or any portion of the Projects; (2) the cost to
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design, construct or reconstruct, renovate, improve, repair, furnish and equip the Projects; (3) the cost of land,
easements and other real property interests, landscaping and site preparation, all appurtenances and other
fixtures, facilities, buildings and structures either on, above, or under the ground which are used or usable in
connection with the Projects; (4) the cost of feasibility studies, surveys, environmental studies and assessments,
engineering, plans and specifications, legal and other professional services associated with the Projects; (5) the
cost of demolition, disposal, site preparation, permitting and environmental remediation in connection with the
Projects; (6) issuance costs, including premiums for insurance, capitalized interest and other fees and expenses
relating to the financing transaction and issuance of the bonds and notes, and (7) other costs of the Projects
ancillary or related to the foregoing costs.
THAT the proceeds of the bonds and notes (including premium and investment earnings thereon, if any), are
appropriated for the following purposes, to be selected by the Finance Director, in his/her sole discretion:
1. To the cost of the Projects;
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 or notes including, to the extent permitted
thereunder, to the City's General Fund;
3. To pay debt service on the bonds or notes.
THAT if the Finance Director, Chair of the City Council, or Clerk are for any reason unavailable to approve and
execute the bonds or notes or any related Bond Document, the person or persons then acting in any such
capacity, , whether as an assistant, a deputy, or otherwise, in an interim or acting capacity, is hereby authorized,
in the name of and on behalf of the City, to act for such official with the same force and effect as if such official
had himself or herself performed such act.
THAT if the Finance Director, Chair of the City Council, or Clerk who have signed or sealed the bonds or notes
shall cease to be such officers or officials before the bonds or notes so signed and sealed shall have been actually
authenticated or delivered by the City, such bonds or notes 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
notes had not ceased to be such officer or official; and also any such bonds or notes may be signed and sealed
in the name of and on behalf of the City by those persons who, at the actual date of the execution of such bonds
or notes, shall be the proper officers and officials of the City, although at the nominal date of such bonds or
notes any such person shall not have been such officer or official.
THAT if the actual cost of any Project differs from the estimated cost, whether due to completion, delay or
abandonment of such Project, or for any other reason, the City Council delegates to the Finance Director the
power and authority, in the name of and on behalf of the City, in his/her sole discretion, to reallocate proceeds
of the bonds or notes to any other Project or improvement that the City Council has approved or may in the
future approve as part of the City's annual capital improvement plan or for which the City Council has authorized
the issuance of the City's bonds.
THAT while any of the bonds remain outstanding, the City Council delegates to the Finance Director the power
and authority, in the name of 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, with the
approval of the Finance Committee, the date, form, denominations, interest rates, maturities (not to exceed the
maximum term authorized by law), provisions for early redemption, and all other details of such refunding bonds,
such establishment, determination and approval to be conclusively evidenced by the execution thereof, and to
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execute and deliver, in the name of and on behalf of the City, such additional Bond Documents as may be
reasonable or necessary with respect to such refunding, and each refunding bond issued hereunder shall be
signed in the same manner as the bonds.
THAT if, following issuance of some but less than all of the bonds authorized hereby, the Finance Director
determines, in his/her sole discretion, that the remaining authorized but unissued bonds will not be issued in
furtherance of the Projects, then the Finance Director is authorized, in the name of and on behalf of the City, to
note on the financial books and records of the City, in the form and manner as he/she shall determine to be
appropriate, that such authorized but unissued bonds will not be issued, following which notation the remaining
unissued bonds shall not thereafter be issued and the authority established pursuant to this Order to issue such
remaining unissued bonds shall be extinguished and of no further force and effect.
THAT if, the bonds or notes, or any portion of them, are issued through the CWSRF program, the following
resolutions required by Section C(4)(e) of the State of Maine Revolving Loan Fund Rules, Chapter 595,
Department of Environmental Protection and the Bond Bank (the "SRF Regulations"), and governing any loan to
be made to the City under the State Revolving Loan Fund Program be and hereby are adopted with respect to
the said Bonds or Notes issued through the CWSRF program:
(1) that a Project Account shall be created for the Projects, which shall be separate from all
other accounts of the City. If operating revenues are to be used to retire the debt, a sub -
account will be established.
(2) that the Project Account shall be maintained in accordance with standards set forth by the
Maine Municipal Bond Bank and in accordance with generally accepted government account
standards.
(3) that a final accounting shall be made to the Bond Bank of the total cost of the project upon
completion of the Project performance certification as set out in Section G(3) of the SRF
Regulations and the City acknowledges that the Bond Bank reserves the right at its sole
discretion to be provided with a cost certification of the Project as built.
(4) that an annual audit of the City, prepared by a certified public accountant or licensed public
accountant, be provided to the Bond Bank for the term of the loan.
(5) that the City shall maintain insurance coverage on the Project in an amount adequate to
protect the Bond Bank's interest for the term of the loan, with the Bond Bank named as loss
payee.
(6) that the City will comply with any special conditions specified by the Department of
Environmental Protection's environmental determination until all financial obligations to the
State have been discharged.
(7) that the City certify to the Bond Bank that it has secured all permits, licenses, and approvals
necessary and that it has a dedicated source of revenue for repayment.
(8) that the City establish a rate, charge, or assessment schedule in order to pay principal and
interest. Such rate change or schedule shall provide total operations and debt service coverage
at a level at which the coverage for the Bond Bank is sufficient.
(9) that the City must demonstrate the ability to pay reasonably anticipated costs of operating
and maintaining the financed Project.
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(10) that the City abide by the SRF Regulations, as revised and amended, and relevant State
statutes of the State of Maine.
THAT the City may pay certain costs of the Projects prior to the issuance of the bonds and notes authorized
hereby (referred to as "original expenditures"); to that end, the City hereby declares its official intent to
reimburse itself for such original expenditures from the proceeds of such bonds and notes, and this Order shall
constitute the City's declaration of official intent pursuant to Treasury Regulation §1.150-2.
CITY COUNCIL ACTION
Council Meeting Date:
Item No:
Responsible Dept:
Requested Action:
Summary
Committee Action
Meeting Date:
For: Against:
City Manager City Solicitor Finance Director
Map/Lot:
Introduced for:
Order
Committee:
Action:
Previous Council Actions
Date:
Item No:
Assigned to Councilor:
IN CITY COUNCIL
AUGUST 10, 2026
COrd 26-252
First Reading and Referral to Finance Committee on August 17, 2026
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CITY CLERK
IN CITY COUNCIL
AUGUST 10, 2026
COrd 26-252
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
Vote: 9— 0
Councilors Voting Yes: Beck, Carson, Deane, Fish, Faloon, Leonard, Mallar,Walker, Hawes
Councilors Voting No: None
Passed
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CITY CLERK