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HomeMy WebLinkAbout2006-03-13 06-112 ORDERItem No. 06 112 Date: 3-13-06 Item/Subject ORDER, AUTHORTMI G THE ISSUANCE OF $1,265,000 AGGREGATE PRINCIPALAMOUNT OF GENERAL OBLIGATION REFUNDING BONDS AND A TAX LEW THEREFOR Responsible Department: Finance The attachetl order will authorize the City W issue up to $1,265,000 In general obligation bonds to refund the oubtaMing portions of its 1995 and 1996 bond. issues. Both of the anginal issues allow for the bands to be 'called' after 10 years, at a premium. Therefore, in oneerto retire $1,215,000 in bonds, the City will issue $1,265,000 in refunding bonds. The Interest bass on the 1995 and 1996 issue range fmm 5.2%- 5.9%. The Cry estimates the interest rate on the refunding bonds will be beNmen 3.5%- 4%. It is es4mated that the refunding will provide enough savings to miter the increased principal costs as well as produce an worried $65,000 in interest savings aver the next 30 years. lo^ i& c�- Department Head Notice of Public Hearing eutlget Approval: Finance Director Legal Approval: Solicitor Introduced for Passage -)[ First Reading Page _ of— _3_ f__3_ Referral- Finance CommiNee of March 20, 2006 1115:00 pm 06 112 t1 a,v eeeappea to comeitar eaamscoo March 13. zoob CITY OF BANGOR (TITLE.) ORDER, AUTHORIZING THE ISSUANCE OF $1,265,000 AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION REFUNDING BONDS AND A TAX LEVY THEREFOR. WHEREAS, the City Council previously adopted bond orders that authorized issuance of the City's general obligation bonds in the following among and for the following purposes: Dated Amount Amount Adopted Authorized Issued Project Description May 22,1995 $2,500,000 $1,50000 The Library Pmjw July 10, 1995 $180,000 $180,000 Took Removal Project July 10, 1995 $100,000 $100,000 Pool Improvements Project July 10, 1995 $150,000 $150,000 Sawyer Arena Improvements Project July 10, 1995 $1001000 $100,000 Landfill Closure Project July22,1996 $140,000 —I' $140,000 Motor Pool Project July22,1996 $35,600 $35,000 Central Fire Station Project July 22, 19% $150,000 ,' $150,000 Sawyer Arena Improvement Project July22,1996 $175,000 $175,000 Broadway Widening Project WHEREAS, on September 28,1995 the City issued us general obligation bonds for me of the foregoing purposes in the aggregate principal amount of $1,030,000 (the "1995 Bonds"). WHEREAS, on September 26, 1996 the City issued its general obligation bonds for some of the foregoing purposes in the aggregate principal amont of $1,500,000 (the "1996 ends"). WHEREAS, due to a drop in interest rates, the City Council now desires to refinance (refund) the outstanding principal of the 1995 Bonds and the 1996 Bonds (the "Prior Bonds') in order to achieve debt service savings for the City; BE IT ORDERED BY THE CITY COUNCIL OF TEE CITY OF BANGOR, THAT Pursuant to 30-A M.R.S.A. §57TL, Section 13 of Article VI of the City Charter (Private and Special Laws of 1931, Chapter 54) and all amendments thereof and acts additional thereat, end all other authority thereto enabling, there is hereby authorized the issue and sale at one time and from time to time up to One Million Two Hundred Sixty-five Thousand Dollars ($1,265,000) aggregate principal amount of general obligation bonds of the City of Bangor. The Proceeds derived from the sale of said bonds, including premium, if any, shall be used and are 1t M hereby appropriated to pay frrthe refunding (including redemption premium and issuance posts) of the principal outstanding of the Prior Bonds; THAT the estimated remaining weighted period of utility for the property constituting the projects financed with the proceeds of the Prior Bonds and to be refinanced with the proceeds of the bonds is hereby determined to be not less than 15 years; THAT the date, minorities (not to exceed the maximum term permitted by law), denominations, interest care or rates (not to exceed & M, per ram), place of payment, mal other details of each issue of said Bonds, including the timing and provision for their sale and award, shall be demarmined by the Finance Director with the approval of the Finance Committee; THAT the bonds hereby authorized may be made subject to call for redemption, with or without aPremium, before due date fixed for that 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 the approval of the Finance Committee. THAT said bonds shall be signed by the Finance Director, wuntemiuned by the Chairman of the City Council, sealed with the seal of the City, attested by its Clerk, and shall be in such form and contain such terms and provisions not inconsistent herewith as they may approve, their approval to be conclusively evidenced by their execution thereof Any issue of bonds may be consolidated with and issued at the same time as any other issue of the City's bonds authorized prior to their issuance, and the bonds may be divided trim multiple series and issued in separate plans of pumping, with the approval of the Finance Committee. THAT any bonds (including bonds in renewal thereof) authorized to be issued under ibis Order may be issued in combination with bonds (including bonds in renewal thereof) authorized to be issued by the City Council at any time Prior to the date of issuance of such bonds. THAT the Finance Director be and hereby is authorized to select the registrar, paying agent, and transf agent (the" fraosfer Agent'%financial adviser and underwriter for the bonds and to execute and deliver such contracts and agreements as may be necessary or appropriate to secure their services,' THAT the bonds 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, with 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 in lieu of physical certificates of the bonds hereinbefore authorized, the Finance Director 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 Trost Company Book - Entry Only System, as an alternative to the provisions of the foregoing paragraph regarding physical number of bonds, and the Finance Director be and hereby is authorized and empowered to eater into a Letter of Representation or any other contract agreement or understanding [MaIM9 1) 06 112 accessory or, in his opinion, appropriate in order to qualify the bonds for and participate in the Depository Trost Company Book -Entry Only System; THAT the Finance Director and Chairman of the City Council from time to time shall execute such bonds as may be required to provide for exchanges or transfers of bonds as heretofore authorized, all such bonds to bear the original signature of the finance Ethernet and Chairman of fee City Council, and in case any officer of the City whose signature appears on any Bond or temporary note shall cease to be such officer before the deliver of said Band or temporary note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery thereof. THAT upon each exchange or transfer of bonds, the City and transfer agent shall make a charge sufficient to cover any ter fee, or other governmental charge required or be paid with respect to such transfer or exchange, and subsequent to the first exchange or transfer, the cost of which shall be home by the City, the cost of preparing new bonds or temporary notes upon exchatages or vansfers thereof shall be paid by the person requesting the same. THAT the bonds and notes issued in anticipation thereof be issued an either a taxable or a tax-exempt bads, or a combination thereof, as determined by the finance Director, with the approval of the Finance Committee. THAT, if Ne bonds, or any part of Nem are issued on a tax exempt basis, Ne officers executing 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 Ixi issued hereunder shall be used directly or indirectly to acquire any securities or obligations, the acquisition of which would cause such bonds or notes to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended One "Code"). THAT, if the bonds, or any pan of them, are issued on a tax exempt basis, Ne 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 or notes, that 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 Nat would cause interest on the bonds to be subject to federal income taxation. THAT the officers executing the bonds be and hereby am individually authorized to common, certify, and agree, on behalf of the City, for Ne benefit of the holders of such bonds, that the City will file any required reports, make any annual financial or material event disclosure, and take any other action Nat may be necessary to ensure that the disclosure reptimments imposed by Rule 15c2-12 of the Securities and Exchange Commission, if applicable, are me. THAT, if the bonds or notes, or any part of Nem, are issued on a tax exempt basis, the Finance Director be and hereby is authorized and empowered to take all such action as may be necessary to de ignam the bonds or nates as qualified rax -exempt obligations for purposes of Section 265(6) of Oe Code; it being the City Council's intention that to the extent permitted under the Code, the bonds or notes be Section 265(6) designated and that the Finance Director with advice of bond counsel, make the required Section 265(b) election with respect to such bonds to the extent that the election may be available and advisable as determined by the Finance Director. THAT the term "cost" or "vests" as used herein and applied to the Projects, or any portion thereof, includes, but is not limited to the cost of financing charges, redemption premium, and issuance costs, including premiums for insurance, interest for a period not to exceed 3 years from the issue date thereof, underwriters' fees and costs, legal and accounting foes and costs, application fees, and other fees and expenses relating to the financing transaction; and the cost of all other financing authorized hereunder, whether related or unrelated to the foregoing THAT the Finance Director, Chairman of the City vCouncil, Clerk, and other proper officials of the City be, and hereby are, authorized and empowered in its name and on its behalf to do or cause to be done all such acts and things as maybe necessary or desirable in order to effect the issuance, sale, and delivery of the bonds hereinbefore authorized. THAT if fire Finance Director, Chairman of the City Council, or Clerk are for any reason unavailable to approve and execute the bonds or any related financing documents, the person or persons that acting in any such rapacity, whether as an assistant, a deputy, or otherwise, is authorized to act for such official with the same force and effect as if such official had himself or herself performed such act. THAT in each of the years during which any of file bonds are outstanding, there shall be levied a tax in an amount Coag with other revenues, if 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. 06 112 t1 a,v eeeappea to comeitar eaamscoo March 13. zoob CITY OF BANGOR (TITLE.) ORDER, AUTHORIZING THE ISSUANCE OF $1,265,000 AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION REFUNDING BONDS AND A TAX LEVY THEREFOR. WHEREAS, the City Council previously adopted bond orders that authorized issuance of the City's general obligation bonds in the following among and for the following purposes: Dated Amount Amount Adopted Authorized Issued Project Description May 22,1995 $2,500,000 $1,50000 The Library Pmjw July 10, 1995 $180,000 $180,000 Took Removal Project July 10, 1995 $100,000 $100,000 Pool Improvements Project July 10, 1995 $150,000 $150,000 Sawyer Arena Improvements Project July 10, 1995 $1001000 $100,000 Landfill Closure Project July22,1996 $140,000 —I' $140,000 Motor Pool Project July22,1996 $35,600 $35,000 Central Fire Station Project July 22, 19% $150,000 ,' $150,000 Sawyer Arena Improvement Project July22,1996 $175,000 $175,000 Broadway Widening Project WHEREAS, on September 28,1995 the City issued us general obligation bonds for me of the foregoing purposes in the aggregate principal amount of $1,030,000 (the "1995 Bonds"). WHEREAS, on September 26, 1996 the City issued its general obligation bonds for some of the foregoing purposes in the aggregate principal amont of $1,500,000 (the "1996 ends"). WHEREAS, due to a drop in interest rates, the City Council now desires to refinance (refund) the outstanding principal of the 1995 Bonds and the 1996 Bonds (the "Prior Bonds') in order to achieve debt service savings for the City; BE IT ORDERED BY THE CITY COUNCIL OF TEE CITY OF BANGOR, THAT Pursuant to 30-A M.R.S.A. §57TL, Section 13 of Article VI of the City Charter (Private and Special Laws of 1931, Chapter 54) and all amendments thereof and acts additional thereat, end all other authority thereto enabling, there is hereby authorized the issue and sale at one time and from time to time up to One Million Two Hundred Sixty-five Thousand Dollars ($1,265,000) aggregate principal amount of general obligation bonds of the City of Bangor. The Proceeds derived from the sale of said bonds, including premium, if any, shall be used and are IN CITY COUNCIL March 13, 2006 Bixise-mReading 6 Nefei[ed t Tiate =tree CITY MIRK IN CITY COUNCIL March 22, 2006 MotiOn-Made and Seconded to Open Public Rearing Public Heating Opened No me can, forward Motion Maas and Secanaea to Close Public Nearing Public Hearing Closed Notion Made and saturated for Paas Ma Pas a t. cl3z cL # 06-112 Ci1TLE� Autheriaing the Ieemvice of i1,26J,aua xggregnx rr xncxper Of General Obligation Refusal" Ronde and a Tax lxmy therefor '!Anigned la C�ounnccilorrtf., nth'{/� (� &W