Loading...
HomeMy WebLinkAbout2010-11-08 11-009 ORDERItem No. 11 009 Date: 11/8/2010 Item/Subs Order, Authorizing Refinancing of Certain of the CO of Bangor's IXisting Bond Obligations and the Issuance of City of Bangor General Refunding Bonds and a Tax Levy Therefor. Responsible Department: Finance The attached order would aut lze the refunding of $1,575,000 in outstanding 2000 bonds, $3,055,000 in outstanding 2001 bonds, and provide $80,000 to finance the coat of Issuance which includes $30,550 In premiums to bondholders. Additionally, as the short term municipal bond market remains favorable, the City anticipates issuing a total ofapprodmately$6,391,000 of 10 year debtin January. The rest of Me finandng has been previously approved in separate bond ordemoo finance current capital improvements. Based on current minket conditions, the City anticipates realivng significant savings over the remaining life of the debt. The City's ftnanclal advisor has indicated that we can wed an interest rate of approximately 2.5% an the new issue compa red to the rates currently carried by the existing debtof 5.30%to5.90% for Me 200D bondsand 9.90%N 5.00% bathe 2001 bonds. Bytaking advantage ofthe current Interest rate environment it is anticipated that this refinancing will result in Interest cast savings over the next 10 years of approximately $700,000 within the General, Sewer and Parking Funds combined. Manager's Commands: / This item will require a Public Heading on 11/22/10 )QvbA* ' Cry Manager Associated Information: Order Budge Approval: This Item was reviewetl and recommended for apPnwal by the Finance Committee on November 1, 2010. F once Director Legal Approval: ry Solicitor Introduced for _ Passage it First Reading Page _of_ Referral Gvw 84 Assigneeto Councilor- Bova..awemnrr e. zolo CITY OF BANGOR (TITLE.) Order, Authorizing Refinancing of Certain of the City of Bangor's Existing Bond Obligations and the issuance of the City's General Obligation Refunding Bonds and a Tax Levy Therefor. WHEREAS: on or about January 31, 2000 and February 15, 2001, the City of Bangor issued its general obligation bonds In the original stated principal amount of $3,105,000 and $5,816,000 respectively to finance the costs of certain capital Improvement and in furtherance of other municipal purposes (the "Prior Bonds') and WHEREAS: due to the drop in available interest rates, the City desires to refund and refinance a portion of Me Prior Bonds through issuance of its general obligation refunding bonds; Now ffierni by the City Counal of the Qcy of9angor be if hereby OROEREP. THAT Pursuant to 30 A M.R.S.A. §5772, Section 13 of Article VI of the City Charter (Pnvate 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 W time up to Four Million Seven Hundred Ten Thousand Dollars ($4,710,000) aggregate principal amount of general obligation bonds of the City of Bangor. The proceetls derived from the sale of said bonds, including premium, If any, shall be used and are hereby appropriated to refund the Prior Bonds, to pay redemption premium thereon, if any, interest accrued and unpaid to Me redemption date and Issuance costs with respect thereto. THAT Me date, maturities (not to exceed the maximum tens permitted by law), denominations, Interest rate or rates, place of payment, and other details of mid bonds, including the timing and provision for their sale and award shall be determined by the Finance Director with Me approval of the Finance Committee. THAT the bonds hereby authorized may be made subject M 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 Me approval of the Finance Committee. THAT said bonds shall be signed by the Finance Director, countersigned by Me Chairman of the City Counnl, sealed with the seal of the City, attested by its Clerk THAT said bonds shall be in such form and contain such other terms and provisions not inconsistent herewith as the Finance Director may approve, her approval to be conclusively evidenced by her execution thereof. 11, 009 THAT any issue of bends may be consolidated with and Issued at the same time as any other issue of bonds authorized prior to their issuance, and the bolls may be divided Into multiple series and issued in separate plans of financing, with the approval of Ne Finance Committee. THAT In each of the years during which any of the bonds are outstanding, there shall be levietl a tax in an amount that, with other revenues, R 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 bolls 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, vlrth 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 Chairman of the City Council from time to time shall execute such bonds as may be required tu provide for exchanges or transfers of bonds as heretofore authorized, all such bonds to bear the original signature of the Finance DlreQ and Cnahman of the City Council, and in case any officer of the City whose signature appears on any bond shall cease to be such officer before the delivery of said bond, such signature shall nevertheless be valid and sufficent for all purposes, the same as't such officer had remained in office until delivery thereof. THAT upon each exchange or tander of bonds, the City and transfer agent shall make a charge sufficient m cover any tax, fee, or other governmental charge required to be paid with respect to such transfer or exdange, and subsequent ro the first exchange or transfer, the cost of which shall be borne by the City, the cast of preparing new bonds upon exchanges or transfers thereof shall be pald by the person requesting the same. THAT in Ileu of physical certificates of the bonds hereinbefore authorized, the Finance Direcror 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 Tout Company Book - Entry 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 the bonds issued in anticipation thereof be issued an either a taxable or a tax- exempt basis, or a combination thereof, as determined by the Finance Director, with the approval of the Finance Committee. THAT, ti the bonds, or any part of them, are Issued on a tax exempt basis, the officers executxng 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 in won a manner as would cause such bonds to be "private activity bonds" within the meaning of Section 141 of the Internal Revenue Code of 1986, as amended (the 'Cade') or to acquire any securities or obligatiore, the acquisition of which would cause won bonds to be "arbitrage bonds" within the meaning of Section 148 of the Cade. THAT, N the bonds, or any part of Mem, 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, Mat 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 etempt basis, Me 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 far purposes of Section 265(b) of the Code; it being Me City Council's intention Mat, M the extent permitted under the Code, the bonds be Section 265(b) designated and that the Finance Director win advice of bond counsel, make the required Section 265(b) election with respect M such bends to the extent Mat the election may be avallabie and advisable as determined by the Finance Director. THAT Me 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 requited reports, make any annual financial or material event disclosure, and take any other action that may be necessary M ensure that Me disclosure requirements imposed by Rule 150-12 of the Securities and Bxcharge Commission, if applicable, are met. THAT the investment earnings on the proceeds of Me bonds, if any, and the excess proceeds of the bonds (Including premium), if any, be and hereby are appropriated for the following purposes: 1. To any costs incurred to refund Me 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, M the extent permitted thereunder, M the City's General Fund; 3. To pay debt service on the bonds. THAT the Finance Director, Chaiman 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 M do or cause M be done all such Ms 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 maybe necessary or advisable, with Me advice of counsel for the City, to carry out the provisions of the resolutions heretofore adopted at this meeting in conneNon with the refunding of the Prior Bonds, the Issuance, execution, sale, and delivery by the City of the bonds and the execulJon and delivery of the documents. THAT If the Finance Diredpr, Chairman of the City Council, or Cleric are for any reason unavailable M approve and execute Me bonds w any related financing documents, the person or persons Men acting in any such apadty, whether as an assistant, a deputy, or otherwise, is authorized M act for such official wM the same force and effect as'f such official had himself or herself performed such ac. 11 009 THAT If any of the officers or offidals of the City who have signed or sealed the bonds hereinbefore authorized shall cease to be such officers or ohMals before the bonds so signed and sealed shall have been actually authenticated or delivered by the City, such bonds nevertheless may be authentiated, Issued, and delivered with the same force and effect as though the person or persons who signed or sealed such bonds bad not ceased to be such officer or official; and also all such bonds may be signed and sealed on behalf of the Ory by those persons who, at the actual date of the executon 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 during the term any of the bonds are outstanding, the Finance Director is hereby autonzed, in Ube name and on behalf of the City, be issue and deliver refunding bonds to refund some or all of the bonds then oubbnding, and to determine the date, form, interest rate, maturli (not to exceed 30 years from the date of Issuance of the original tonds) and all other details of such refunding bolls, including the form and manner of their sale and award. The Hnance 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 Anance Director, ceuntersgned by the Chairman of the City County, sealed with the seal of the City, attested by is Clerk. m clu COO m Hoveaber 8. 2010 e sta+ate CRR m CRY CWBCIL I Noaembex 22. 2010 Motion Made and Seconded to Open the Public Bearing No doe from the Public came forward Mot1o0 Made and Seconded to Maze the Public Hearing Public Hearing Closed Mot Made cad Seconded fol Passage Pa CIlY L'L (PtTL&.1 (wr ieivg Hefivancieg of Certain of the City of Bangor's Misting Hood Obligation and the Iso ace of City of Bangor Cenral gefundUg�eoads and A T¢ Levy Thevef COtltlp9pp—. CITY OF BANGOR, MAINE NOTICE OF PUBLIC HEARING Notice is hereby given that the Bangor City Council will hold a public hearing at 7:30 p.m., November 22, 2010 at City Hall, 73 Harlow Street, Bangor, Maine on the proposed issuance of $4,710,000 of bonds to refimace the City's outstanding 2000 and 2001 general obligation bonds All persons who desire m be heard on the proposed borrowing are invited to attend the public hearing. The City Council will consider action authorizing the bonds immediately following the public hearing. Copies of the proposed order will be ort file and may be reviewed at the office of the City Clerk prior in said public hearing. To be posted in rwa or more public places andpublional in a newalaillser published in Bangor not less than 10 daye prior to find action by the City Council. W"Cc Or NWICOM:w eM that %p,u, Bezul�rt �M1 XMLnmm- H.> W ammnm�Mi^. ,ng MV u Ree�e� v ca�di vn wM 6vMv m�wr a w a. one