HomeMy WebLinkAbout2013-04-22 13-142 ORDERCOUNCIL ACTION
Item No. 13-142
Date: April 22, 2013
Item/Subject: Order, Authorizing Refinancing of Certain of the City of Bangor's Existing Bond
Obligations (Bangor International Airport) and the Issuance of the City's General Obligation
Refunding Bonds and a Tax Levy Therefor.
Responsible Department: Finance
Commentary:
The attached Order would authorize the issuance of up to $1,300,000 in taxable general obligation
bonds to refinance portions of the Airports 2005 taxable bonds. If approved, these bonds will be
offered for competitive sale in May 2013 in conjunction with the taxable bonds approved realted to
the C & L Aerospace project. Based on existing and expected taxable interest rates, the refinancing
of this debt is anticipated to result in $120,000 in interest cost savings over the next 12 years.
This Order will require a Public Hearing at the May 13th City Council Meeting
Manager's Comments:
Associated Information:
Order
Budget Approval:
Legal Approval:
Introduced for
Passage
x First Reading
x Referral — Finance Committee of 5/6/13
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Department Head
i City Manager
Page _of_
Finance Director
icitor
Assigned to Councilor Blanchette
CITY OF BANGOR
13-142
APRIL 22, 2013
(TITLE.) Order, Authorizing Refinancing of Certain of the City of Bangor's Existing Bond
Obligations (Bangor International Airport) and the Issuance of the City's
General Obligation Refunding Bonds and a Tax Levy Therefor.
WHEREAS: the City of Bangor previously issued its Series 2005B general obligation
bonds to finance the costs of certain improvement at 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;
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, Article VIII, Section 13(f) 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, there is hereby authorized the issue and sale
at one time and from time to time the City's general obligation bonds not to exceed the
aggregate principal amount of One Million Three Hundred Thousand Dollars ($1,300,000). The
proceeds derived from the sale of said bonds, including premium, if any, may 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 terns 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.
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
(W36459503)
IN CITY COUNCIL
April 22, 2013
First Reading and Referral to Finance Committee
ee g of May 6, 2013
CITY C RK
IN CITY COUNCIL
May 13, 2013
Motion made and seconded to Open the Public Hearing
Public Hearing Opened
Motion made and seconded to Close the Public Hearing
Public Hearing Closed
Motion made and seconded for Approval
Approved
C
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DEftn CITY CLEA
13-142
APRIL 22, 2013
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 care 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
ookEntry 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, if the bonds, or any part of them are issued on a tax exempt basis, 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, if the bonds, or any part of them, are issued on a tax exempt basis, 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.
THAT, if the bonds, or any part of them, are issued on a tax exempt basis, 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
{W3645950.1)
13-142
APRIL 22, 2013
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 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:
I. To any costs incurred to refund the Prior Bonds;
2. If the bonds are issued on a tax exempt basis, 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 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 cavy out the provisions of the resolutions heretofore adopted at this
meeting in connection with the Projects, 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 notes 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.
{W3645950.1}
13-142
APRIL 229 2013
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.
(W3645950.1)