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HomeMy WebLinkAbout2004-04-26 04-123 ORDERItem NO, ns -rev Date: 4-26-g4 Item/Subjem: ORDER Authorizing the Issuance of $2,650,000 Aggregate Principal Amount of General Obligafon Bonds, Notes in Anticipation Thereof and a Tax Lery Therefore for CSO Projects Responsible Department: Finance Commentary: The attached order wM authorize rhe Issuance of up to $2,650,000 in general obligation bonds to continue the CWs combined sewer overflow program Improvements. Once again, the City will pursue issuing the bonds through the Maine Municipal Bonet Bank's State Revolving Loan Fund, thereby reducing the total future cost of the projects. Department Head Manager's Comments:.-k.D ht &a a.d to /,cr,e.ran.�a� R+'i+e Furor. Ce+rvMc 'amid, Luz City Manager Associated Information: Budget Approval:(/// Finance Director Legal Approval: City Solicitor Irrtrodaced for Passage _ii First Reading Page _ of Referral -to Finance Committee M-123 AsArMw Cmnoflor tleallcT April 26, 20M �i °^ CITY OF BANGOR (=E.) ORDER Authorizing the Issuance of $2,650,000 Aggregate Principal Amount of General Obligation Bonds, Notes in Anticipation Thereof and a Tax Levy Therefore for CSO projects ORDERED, THAT Pursuant M 304 MRSA. §5112, Semon 13 by Man W of Me City Owner (Private and Special -was of 1931,E pter 59 and all ameramems thereof and ads additional overseas, and all dher authority thereto ambling, Mere Is hemby authonzed the Issue and sale at one time and From time as me up M Two Million Six Hundred Fifty Thousand W am ($2,650,000) aggregate principal amount of general obligation borAs of the City 0Bargor. The proceeds derived Rom Me sale of mid bonds, Including premium, g am, and any investment earnings thereon stag he used and are hereby approproMtl M pay a portion d Me costs (as herein defied) a Me following Proj t(Me"ProIedn: Estimated DesuleHm Amount life Cmnal Sewer Ovetlaw(M) $2,650,000 25 years Improvements THAT that estimated weighted periotl of utility for the property oasMutng Me Pmjt be Raymond WM the proceeds of said bonds is hereby de[ennined M be the period of time indicated above M mid Project THAT Me date, maturities (m[ M exceed 25 years From the Issue clan), denominations, interest me or rams (not to exceed 5.00% per anmm), dans of payment, and other details of each issue of mid dads, mcludirg the aming and provision for their me and award stall be determined by Me finance Director with Me approval of Me Finance committee. as amended, As man be determined by Me Firence Dimmer wed the appro al of Me Finance Oommillm THAT mid bans shall be signed by the France Dimdor, countersigned by Me Chairman of Me aty Council, sealed with Me seal aMe City, attested by it Clad: and shall be In such form and contain such terms and pmvislors not Incomm ent herewith as they may appmwe, their approval M be mralusrveiy eAdenced by Meir exmtbn Hereof. Am issue of bonds may be consolidated wed and cowed at the same time as arty other Issue of hands autharired prior Mer Issuance, and Me bonds may, be dhdded into multiple series and issued in separate plans of financing, wed the approml of Me France committee. TWIT mrsuant to 30-A M.RS.A.§W1 Section 15 of Ardde v1 of Me ata Charter and arty other ambodty thereto enabling, Me names Cineplex, wilt approval tithe Finance committee Is hereby authorized M issue temporary notes of the Cap in anticipation of Me foregoing bond Issue, rola bonds M "real "a France Director, muntersigred by the Chairman of the City CowpT, makd wet Me seal of Me City, attested by its aeM, and otherrim M be In such four and remain soon terms and pmWslons Includng, vnihom Iimaatiml, penalties Mot M exceed 3 years from the roue date), O -123 demminammi, Interest rate or mens Motto exceed! 5.066 per annum), place of payment and other details as they shall approve MM approval M be conclusivey evidencetl by Meir execution Hereof. THAT any bonds or nones (Including notes in renewal Mereof) authorized M he Issued under this Order may, be issued in mmbinatiun when notes (including notes in whevwl thereon and bonds authorized M be issued by the City Council M any tate pour to the data ahomence of Me bonds or nota. THAT Me fironoe Director M and hereby sauthmiuM M select Me underwriter, a financial advisor and Me registrar, paying agent, and Mamfer agent for the bonds and nota and M execute and deliver such contracts and agreements as may M necessary or appropdate to secure Meir services. TMRT the bonds and nates shall be unbMeoble only on the registration hooks of Me City kept by the Mousier agent, and mid winter amount of the bonds and noses of the serve maturity (but net of other maturity), upon surrender thereof at the principal &I NMe [randier agent, who a wri Instrument of transfer sathfacNry M Me tramper agent dory demoted! by Me regsMed cwmr or his a her attorney duly authorhed in wriMg. THAT Viz Firose Directer M and hereby Is autlgrized to undertake all arts necessary te provide for Me Issuance and transfer N Me bores (and rases) in mokentry form pursuant a Me Depos0.ory Tart Company Some -Entry Onty System, as an alternative a the Mwidons of the foregoing paregmph above regarding physical banner of bonds and rants, and the Finance Dimmer be and hereby Is authorize] and empowered to enter Into a Letter of Repromtadon Or any other cantmct, agreement or undersandlrg neoasary m, In bar opinion, appmpwate in orders gually the bonds and notes far and participate in Me Depen ry Trust Gompanry Rook -Entry Only System. THAT the Finan Dindsixer and Chairmen of Me City Council horn tlme to hire shall execute such bonds or notes as may he required M provide for exchargx or transfers of bonds or rata as heretofore authormd, all sunt bonds or nota a bear Me original slgnaWre of Me finanoe Director and Tagman of the City Cgundl, and M one any ommr of to City whose sig 5ture appears w any hand or note stall cease M M sunt Officer before Me deliver of said bond or none, such sgnaWm shall nevertheless be valid and sufficient for all purposes, Me same as If such officer had rmnalned in office uwl delivery Mento. THAT upon each exchange or transfer Of bows or nota, the City and transfer agent Mag make a Mail suMdeM M cover any tax, one, or OthergovernmeMN Marge required M he rod with respect M such transfer Or exchange, and subsequent to the first a change ort ionsfir, Me mA of which Mall he heard by the City, the cost N prep rig new bonds or rata upon exchanges or transfers thereof Mall M pad by the person requesting Me same. THAT Me bows and nota ismad M anticipation Mvmf he issued an after taxable or a tax - Oxon of x- e onof basis, or a Mmpnetion thereof, as detemnned by the Finance Director, with the amnand of Me Hrance CommMee. THAT, If the bonds or nota, or any part a them are Issued on a ax exempt tads, Me Officers aecutng who bows or notes M and hereby are individually auMmiaed and dlieMrsl M covenantand certify on balwlf of the City that no pall OF Me tramway of the issue and sale Ofthe bonds Or mites auUwrzcd M be Issued hereunder shall he used directly or iwireMi m acqu've any securihes m obligations, the acquisition of whtrth would muse sunt bonds or notes M M "arbitrage bonds"within Me meaning NSectdn I%Nthe Indented Revenue Code IM, as; amended (the "Cwe ). THAT, if Me bunds or notes, or any part of Mem, are Issued on a ax exenryht basis, Me officers aecvudg sunt bonds or nota M and hereby are MOINNualy auMorae l to covenant and agree, on behalf of the Ory, fix the herafit of Me holders asuch bonM or rates, Mat Me City will fib any handled! voters and take any other action that may he ner.¢sary m ensure Mat watered on Me bonds or nate will remain exempt fnm federal income tomdon and that Me City will renown from any Orden Mat wood cause Interest on Me bonds or nota to be subject M reseal income axatgn. 04-123 THAT the ommers executing the bonds or nota he and hereby are Individually authorized m orvetoatity, and agree, an beMt M the Cha, for the henefitN the Mlders Msuoh bonds e, notes, tMt thee City will Ole arty t may h reports, make any annual financial ho materialirevent disclosure, and bice any 12Ofthe thatmaybe necessary to ensure that the dcac ,a requirements imposed by Rule ISr2-12 of the Sewritla and Exchange Commission, 0applimbk, are toll. THAT, tithe lands or notes, or any part of Mem, are Isued on a tax exempt baals, the Rho nee Dac2Nr be and hereby is educated and empowered to take all such arton as may be mammary to deegnale the bolls or note; as qualified tax-exempt obligations for purposes of Section 265(b) of the Care; it being the City (annoys intention that to the edem permitted under the Dade, the bonds or nexas be SeNon 265(0) desgnated and that the Rm= Director with advice aWW courser, make the required Section 265(b) election wim respect such bonds to Me stmt that the election may be available and advisable as dehmmined by the plumose Director. THAT tiro man 'cosi Or "wars"as used herein and applied to the Project or any podcn thermt include, but is not limited m: (1) the purchase once or acculsitlm one N all or a" pardon Mthat Project; (2) Me cost of canstructon, building, alienation, enlargement mmmtruction, renovation, hnprowxratnt and equipping Mlle Pmject (3) the coat Nall appurtenances all other Wines either FiT•E^ ,fR5!i-T.'�IS1F?ST�^ came thamt uncerwrilcrs' foes and casts, legal and aodouhding far and costs, applbatlon fes, and other far and expenses relating to the f nandn transaction; and (11) the coat Nall Other finanung authorised hereunder, whether related or unrelated m the foregoing. THAT the invemnent earnings on the proceeds ame hands and rola, 0 arty, and the ertem pmmed;M the bolls or hates, If arty, he and hereby are apprepdated for the following purposes, such promedsto he hand and applied in the following oder of priority: 1. To any dots of the Project In excess of the principal amount Of me hands or Mia authmhed hermnder; 2. If the bonds or notes are Isued on thereunder, to the City's General Fund. THAT the Room Dbe lor, Chapman of the City Comhcd, Clerk, and other proper officials Mlle City be, and hereby are, authorized and empowved In b home and M its heMtt to do Or mute m he dorm all such am and tangs as may he necessary, or desirable in Order M effect the Isuamat, Ink and deFuery 4 m bonds and nota as herelMefae authorlred. THAT tithe Finance Director, Charman ofthe City County, or Clark are for airy reamer ursimilabneth appmve and eecute the bonds or a" related financing documents, the person or perms than acting in any such capeft whether as an assistant, a deputy, or otherwise, is authorized Matt for such official with the same home and effect as tsuch aifrial had MhsaM or herself patrimonial such act. THAT in each Of the years during which any Nthe Mho are autslandmW there shall be levied a tax in an amount Nat with other revenue, if any, available forthat purpose, shall he sufficknt to pay the In erect on mid bonds, payable in such years, and the principal ofsuch bonds manuring in such years. 9— May 10. e 2004 ttlw Haae ane acwaea to Open Public Opening. Public m, the H Opined. No ce form, Otothe �liccape £aforward.d. tcNot Node end riClose geang. to Claes Prim. Hearing. Public Closed. Notion�Ifc Nearing Closed. tHw tae and Seconded for Passage O HOER MLAuthorizing the Insurance of 00 Aggregate Principes Awwt o General Obligation goods. Notes to Therefore for CSG Projects Assignee to Councilor