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HomeMy WebLinkAbout2014-02-10 14-079 ORDERCOUNCIL ACTION Item No. 14-079 Date: February 10, 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 2013 to projects authorized for bonding at the conclusion of the FY 2014 budget process. The 2013 bond issue was based on estimated equipment costs. A number of purchases were below estimates such as: chiller repairs, plow tucks, tach buggy and snow blower. In addition, the 2013 bond issue anticipated the replacement of the curbside recycling pickup vehicle. With the City transitioning to a single -stream recycling contract, these funds will not be expended. This reallocation of unexpended bond funds will reduce the amount of bonds that will be issued to fund the FY 2014 projects authorized in August of 2013. This Order will require a Public Hearing at the February 24th City Council Meeting Department Head Manager's Comments: City Manager Associated Information: Order Budget Approval: Finance Director Legal Approval: licitor Introduced for Passage x First Reading Page _ of _ x Referral — Finance Committee of February 19, 2014 Assigned to Councilor Gallant CI`T'Y OF BANGOR 14-079 FEBRUARY 10, 2014 (TITLE.) Order, Reallocating Excess Proceeds from the City's Prior General Obligation Bonds WHEREAS, on June 5, 2013, the City of Bangor issued its 2013 General Obligation Bonds — Series A in the aggregate principal amount of $9,030,000 (the "2013 Bonds' pursuant to City Council Order #12-248 (adopted August 13, 2012) (the "Prior Order', a portion of the proceeds of which was authorized to be used to finance the acquisition of municipal equipment and vehicles, including plow trucks, recycling truck, tach buggy, snow blower, sidewalk plow, and Parks & Recreation Equipment, including a Zamboni and chiller (referred to as the "Prior Equipment Projects"); and WHEREAS, on June 5, 2013, the City of Bangor issued additional general obligation bonds in the aggregate principal amount of $4,740,000 pursuant to City Council Order #13-250 (adopted August 12, 2013) (the "2013 CIP Order") to finance, among other things, municipal equipment and vehicles, including plow trucks, low bed trailer and sidewalk plows (referred to as the "New Equipment Projects"); and WHEREAS, there remain excess proceeds of the 2013 Bonds, which excess proceeds the City Council desires to reappropriate to be used for New Equipment Projects, thereby reducing the amount of the City's general obligation bonds required to be issued under the 2013 CIP Order; NOW, THEREFORE, by the City Coundl of the City of Bangor, be it hereby ORDERED: THAT the excess proceeds of the 2013 Bonds, in the amount of $303,562 be and hereby are appropriated to finance a portion of the costs of the New Equipment Projects, as more specifically specified in the 2013 CIP Order 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 February 10, 2014 First Reading and Referral to Finance Committee MV5EPg of ru 19, 2014p CITY CL RR IN CITY COUNCIL February 24, 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 Passe CITY C