HomeMy WebLinkAbout2007-03-12 07-119 ORDERItem No,
Date: 3/12/2007 07 17.9
Item/Subject Order, Authorizing the City to Partclpate In the State Revolving Loan Fund with
Respect W Prevrousiy Authorized $2,000,000 General Obligation Bonds
Responsible Department: Finance
Commentary:
As part of lbe $6,568,031 in general obligation bonds authorized by the City Council on September
12, 2005, $2,000,000 was authorized In connection with the City's CSO program.
For many Years, the City has participated! in the Maine Municipal Bond Bank's State Revolving Loan
Fund Program (SRF). The SRF program was created in 1987 ny the Clean Water AR, wherebythe
Environmental Protecdon Agency provided seed moneyto capitalize the state loan program. These
funds are used to assotsewersystems In financing high priority water -quality actinides, ata lower
cost of borrowing.
In order to obtain financing through the SRF program, certain language must be present in the
Orderauthorbirg the issuance of bands. The original order did not contain the necessary language
to be financed through the SRF program. The attached Order amends the original Order as R
relates to the $2,000,000 borrowing for 60 pumoses.
Department Head
Manager's Comments:
As noted, this is a technical amendment that will simply authonze the City to borrow these funds
through Me State Revolving Loan Fund. 1 recommend your approval.
AUIAC15411
❑ty Manager
64�41
Dire4or
CltySolitltor
X Passage
_ First Reading Page _ of_
Referral
03/12/2007
07 11
Asriruedmcomogor Blanchettei 07 119
CITY OF BANGOR
(TITLE.) Order, Authorizing the City to Participate in the State Revolving Loan Fund with
Respect to Previously Authorized $2,000,000 General Obligation Bonds
WHEREAS, on September 12, 2005, Me City Council of the Ory of Bangor adopted a bond
order (the "Bond Order') captioned "Order, Authorizing the Issuance of
$6,568,831 Aggregate principal Amount of General Obligation Bonds, Notes in
Anticipatbn Thereof and a Tax Levy Therefor", which authorized $2,00D,000 of the
City's General Obligation Bonds (the "Bonds') to be issued in connection with the
City's CSO Program, the proceeds of which, less premium, if any, M be used and
were thereby appropriated to pay the cost of certain sewer Improvement projects
more fully described therein (Me 'Project); and
WHEREAS, the City desires to issue the Bons through the State of Maine Revolving Loan
Fund Program an to otherwise supplement Me terms of the Bond Order;
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF
BANGOR:
THAT in order to effect the borrowing and issuance of the Bonds, or any series thereof,
authorized by the Bond Order and to finance the wets of the Project, the Finance Director and
the Chairman of the Ory Council are hereby authorized and empowereci in the name of and on
behalf of the Oty M issue and sell Me Bonds to, an borrow the amount evidenced thereby
from the Maine Munklpal Bond Bank (the "Bank') pursuant to the State's Revolving Loan Fun
program established under 3 M.R.S.A. §IBM -A and administered by the Department of
FnVionmental Protectean and the Bank an M enter into a Loan Agreement between the City
an Me Bank providing for a ban from the Bank in a principal amount not in excess of the
principal amount of the Bonds an the Finance Director be and hereby is authorized and
empowered, in the name an on behalf of the City, to execute and deliver, under the seal of
the City attested by as Carly, a Loan Agreemart between the Ory and the Bank providing for a
ban from the Bank to Me City in an amount not to exceed such amount old Loan Agreement
to be in the usual an ordinary form utilized by the Bank in connection with the State Revolving
Loan Fund which is hereby approved, and to contain such other terms an provisions, not
contrary to the general tenor hereof, as the Finance Director may approve, her approval to be
conclusively evidenced by Me execution thereof.
THAT the Finance Director and the Chairman of the City Council be and hereby are
Individually authorized and empowered, in the name of and an behalf of me City, to execute
an file with Me Bank and/or the Oeoarbnent of Environmental Protection an application for Me
Ory M Issue and sell up M $2,000,000 aggregate principal amount of its bonds M Me Bank
pursuant to the State Revolving Loan Fund Program.
Ur !:
THAT the following resolutions required by Section C(4)(e) of the State of Maine .. `07 17.9
Revolving Loan Fund Rules, Chapter 595, Department d Environmental Protection and Maine
Municipal Bond Bank (the 'SRF Reguladom ), and governing the loan to be made to the M
under the State Revolving Loan Fund! Program be and hereby are adopted:
(1) That a project Account shall be created for the Projects which shall be
separate from all other accounts of the City. If operating revenues are to be used to
retire the debt, a sub -account will be established.
(2) That the project Account shall be maintained in accordance with
standards set form by the Dank and in accordance with generally accepted government
accounting standards.
(3) That a final accounting shall be made to the Bank of the total cast of the
Project upon completion of the Project Performance Certification as set out in Section
G(3) of the SRF Reguladws and the Oty acknowledges that the Bank reserves the 69M
at its sole discretion to be provided with a cost certification of the Project as built.
(4) That an annual audit of the City, prepared by a mrtiBed public
accountant or licensedpublic accountant be provided to the Bank for the term of the
loan.
(5) That the City shall maintain insurance coverage on the Project in an
amount adequate to protect the Bank's interest for the term of the loan with the Bank
named as loss payee.
(6) That the City will comply with any special conditions specified by the
Department of Environmental Pmmcdon5 environmental determination until all financial
obligations to the State have been discharged.
(7) That the City rntify to he Bank that it has secured all permits, licenses
and approvals necessary and that It has a dedicated source of revenue for repayment.
(8) That the City establish a rate, charge or assessment schedule in order to
pay principal and interest. Such rate change or schedule shall provide toml operations
and debt service coverage at a level at which the coverage for the Bank is sufficient
(9) That the City mat demonstrate the ability to pay reasonably anticipated
costs of operating and maintaining the financed Project.
(10) That the City abide by the rules of the Department of Environmental
Protection, the Bank, the SRF Regulations, as revised and amended, and relevant
statutes of the State of Maine.
In CITY caoncn
March 12. 2007
Nati Made am seaaaded
far PVsage
Pas
ITY CLQ
MRyPLgI huthoriving the City to Participate
the Sta=viog ro n £�V1LIf'
Respect [o P[eviaaely du[hari¢ed $2.000,000
Cepteral Ob11gaT>tr�s
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