HomeMy WebLinkAbout2014-05-12 14-172 ORDERCOUNCIL ACTION
Item No. 14-172
Date: May 12, 2014
Item/Subject: Order, Reallocating Excess Proceeds from the City's Prior General Obligation
Bonds
Responsible Department: Finance
Commentary:
The attached Order would reallocate unexpended bond proceeds issued in 2014 to the Penobscot
River Remediation project, for which a declaration of official intent was authorized by Council Order
09-300 on September 14, 2009.
The estimated construction cost related to the Police Station Demolition was in excess of the bids
received. As these bonds will be repaid from the City's Downtown Tax Increment Financing District
funds, the excess proceeds must be reallocated to another qualifying TIF project. The City had
anticipated the potential need to fund costs associated with the Penobscot River remediation with
bond funds, to date these costs have been funded with annual appropriations from the Downtown
TIF funds.
This Order will require a Public Hearing at the May 28th City Council Meeting
D rtment Head
Manager's Comments:
City Manager
Associated Information:
Order
Budget Approval:
Finance Director
Legal Approval: '17 101711
i I'citor
Introduced for
Passage
x First Reading Page _ of
x Referral — Finance Committee of May 19, 2014
Assigned to Councilor Gallant
CITY OF BANGOR
14472
MAY 12, 2014
(TITLE.) Order, Reallocating Excess Proceeds from the City's Prior General Obligation Bonds
WHEREAS, on September 14, 2009, the City of Bangor issued its Declaration of Official
Intent to Reimburse Expenditures on the Penobscot River Coal Tar Remediation Project from
Tax Exempt Obligations ("2009 Declaration of Official Intent's in the amount not to exceed
$1,500,000 pursuant to City Council Order #09-300; and
WHEREAS, on March 1, 2014, the City of Bangor issued additional general obligation
bonds in the aggregate principal amount of $8,669,000 to finance, among other things, Police
Station Demolition; and
WHEREAS, there remain excess proceeds of the 2014 Bonds, which excess proceeds the
City Council desires to reappropriate to be used for Penobscot River Coal Tar Remediation;
NOW, THEREFORE, by the City Council of the City of Bangor, be it hereby ORDERED:
THAT the excess proceeds of the 2014 Bonds, in the amount of $410,000 be and hereby
are appropriated to finance a portion of the costs of the Penobscot River Coal Tar Remediation,
as specified in the 2009 Declaration of Official Intent; and
THAT the Finance Director be, and hereby is, authorized and empowered in the name
and on behalf of the City, to do or cause to be done all such acts and things, and to execute
and deliver, all such financing documents, certificates, and other documents as may be
necessary or advisable, with the advice of counsel for the City, to carry out the provisions of
this Order, as may be necessary or desirable.
(W4088461.1)
IN CITY COUNCIL
May 12, 2014
First Reading and Referral to Finance
Committee Meeting of May 27, 2014
ITY CLEft
IN CITY COUNCIL
MAY 28, 2014
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 Passage
Passed.
CITY CLERK'