Loading...
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'