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HomeMy WebLinkAbout2003-01-13 03-46 ORDERItem No. ci s6 Data:1-13A3 Item/Subject: Oder, Authorizing Me Issuance of $6,410,000 Aggregate Pnndpal Amount of Geneml Obligation Bonds and a Tax Levy Ther for Responsible DepartmdR: Finance In 1992, the City Issued $12,550,OOD of general obligation bontls m f ram the costs of a variety of capital projects as listed M the attached order. At the arae of issuance, the caribou rates on the unde lyhm3 bands ranged ban 5.0%- 5.30%. As you are aware, interest rates having been balling for some time, therefore the ❑N Proposes to 'call' the 1992 bonds and refinance Me debt a[ a owner rate. SURanticlpatstlw!MecouponmRmme by Me"nMb &'willrangetram2.5%-3.6%. Thus muntIng In significant sa angs. Over the nvt can years, Me City (General Fund, Sewer Fund and Bass Parr Fund) anticipates sating $257,275. In atltlbion, az the laryes[ porton of Me r�undlrg tlebt is related o Me renovation of the Cohen MMdb School, the State savings should apprmbnate $222,829 ower the same arae period. legal APpreval: City Solldor Introduced for Passage First Reading page_af �!_ Referral — Finance Committee 1/22/03 Department Head Aber Me Cemmenm:Nor mvod:g on Misbem,ct orders[ hooa publicMe Fuelchea'ri n this public"al. the allch a bonnier odes, suchr.Six nabw votes aMrmaa recl are reucing may he a amendnd, tau! soca her approval. The d bond coder may but lvntaz are limited reducing ortonr l d. the amount o bebo:mwetl and ro additional projx4 may be atldetl. I ments o I vwuo recommend your aPPmval. � � �/1�� �,�f1 'Fy/W.ayhaa wu.pauNq aup "Sxa'nmx^QdO�rlF✓l City Manager Associated Information: Oder, Public Notice. legal APpreval: City Solldor Introduced for Passage First Reading page_af �!_ Referral — Finance Committee 1/22/03 03-66 A gndh) o=Zilm nreem January 13, 2e03 CITY OF BANGOR (TITLE.) ORDER, AUMORI ME ISSUANCE OF $6,410,000 AGGREGATE PRINC1PAL AMOUNT F GENEM OBIAGATIONAND A TAX LEVY MEREIFOR WHEREAS, on September 11, 1991 the City Council adopted Order No. 91-312 which authorized Issuance of the Citys general obligation bonds in the following amounts and for the following purposes: $6,695,000 Garland Street Middle School $3,365,000 CSO $11W0,000 Bass Park Complex Renovations and Improvements $450,000 City Nursing Fadlity Expansion WHEREAS, on lune 22, 1992 the City Council adopted Order No. 92-2W which authorized issuance of the Ctyrs general obligation bonds In the following amounts and for the following oumsoes: $1,700,000 1992 CSO projects WHEREAS, on August 1, 1992 the City Issued Its general obligation bonds for the foregoing purposes in the aggregate prindpal amount of $12,550,000 (the "1992 Bonds") WHEREAS, clue to a drop in interest rates, the City Council now desires to refinance (refund) the outstanding principal of the 1992 Bonds in order to achieve Interest savings for the Cry; NOW, THEREFORE, by the City Council of the City of Bangor, it is hereby ORDERED: THAT Pursuant to 304 M.R.S.A. §SIR, Section 13 of Ankle VI of the City Charter (Private and Special taws 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 tme to time up to Six Million Four Hundred Ten Thousand Dollars ($6,410,000) aggregate principal amount of general obligation bonds of the City of Bangor. The proceeds derived from the sale of said bonds, Including premium, R any, shall be used and are hereby appropriated to pay for the refunding of the principal outstanding of the 1992 Bonds; MAT the estimated remaining weighted period of utility for the property constituting the projects financed with the proceeds of the 1992 Bonds and W be refinanced with the proceeds of the Bonds is hereby determined to be not less than 15 years; MAT the date, maturities (not to exceed 15 years from the issue date), denominations, Interest rate or rates (not to exceed 5.00% per annum), place of payment, and other demils of each issue of said Bonds, Including the timing and provision for their sale and award, shall be determined by the Rnance Director with the approval of the Finance Committee; TW 1T the Bonds hereby authorized may be made wb)ect to call for redemption, with or without a premium, before the date fixed for final payment of the Bonds, as provided in 3" M.R.S.A. §MZ(6), as amended, as shall be determinetl by the finance Director with the approval of the France Committee. THAT said Bands shall be signed "e finance Director, countersigned by the Chairman of the City Coundl, sealed with the seal of me City, attested by is 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 evidence by their execution thereof. Any issue of Bonds may be consolidated with and issued at me same time as any other Issue of die City's bonds authorized prior to their Issuance, and he Bolls may be divided into multiple series and issued in separate plans of finandng, with the approval of the Finance Committee. THAT pursuant to 3 A M.R.S.A. §5P2, Section 15 of Article VI of the City Charter and any other authority thereto enabling, the Finance Director, with approval of me Finance Committee, is hereby authorized to issue temporary rmtos of the CM in anticipation of the forgoing issue of Bonds, said temporary notes to be signed by me Finance Director, countersigned by the Claiman of the City Council, sealed with the seal of his City, attested by its Cleric, and otherwise to be in such form and contain such terms and provisions Including, without limitation, maturities (not to exceed 3 years from the IsAre date), denominations, interest rate or aces (not to exceed 5.00% per annum), place of payment, and ower details as they shall approve, Meir approval to be conclusively evidenced by their execution thereof. THAT any temporary notes (Including notes in renewal thereof) authorized to be issued under this Order may be issued in combination with temporary notes (including notes in renewal thereof) and bonds authorized to be issued by the City Council at any time prior to One date of issuance of the temporary notes. THAT the Bonds and temporary notes shall be transferable only on the registration books of one City kept by the transfer agent, and said prindpal amount of the Bonds and temporary notes of the same maturity (but not of other maturity), upon surrender thereof at the prindpal 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 the finance Director be and hereby is authorized to select me registrar, paying agent, and transfer agent (the "Transfer Agent"), financial advisor and underwriter for the Bonds and temporary notes and to execute and deliver such contracts and agreements as may be necessary or appropriate to secure their services. THAT Bre France Director and Chairman of the City Council from Brae to Brae shall execute such Bonds or temporary notes as may be required to provide for exchanges o transfers of Bonds or temporary notes as heretofore authorized, all such Bonds or temporary notes to bear the original signature of the Finance Director and Chairman of me City Council, and in care any officer of the City whose signature appears on any Both or temporary note shall cease to be such officer before Use deliver of said Bond or temporary note, such signature shall nevertheless be valid and sufficient for all purposes, the same as B such officer had remained in office until delivery thereof. THAT upon each exchange or transfer of Bonds or temporary rotes, the City and transfer agent shall make a charge sufficient to cover any tax, fee, or other governmental charge required to be paid aim respect to such harder or exchange, and subsequent to the 03-96 first exchange or transfer, the cost of which shall be borne by the City, the cost of preparing new bonds or temporary notes upon exchanges or transfers thereof shall be paid by Me person requesting the same. THAT, If the Bonds or emporary notes, or any part of Mem are issued on a tax exempt basis, the officers emouUrg such Bonds or temporary notes 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 one of me Bonds a temporary notes authorized to be Issued hereunder shall be used directly or indirectly a acquire any securities or obligations, the acquisition of which would cause such bonds or notes to be "arbitrage boodle within the meaning of Section 198 of the Internal Revenue Code of 1986, as amended (the "Code"). T T, if the Bonds or temporary notes, or any part of them, are issued on a tax exempt basis, the officers executing such Bonds or temporary notes 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 or temporary notes will remain exempt from federal Income taxation and that the City will refrain from arty action that would cause interest on the Bands or temporary rates to be subject to federal income taxation. THAT the officers executing the Bonds or temporary notes be and hereby are Individually authorized to covenant, certify, and agree, on behalf of the Cry, for the benefit of the holders of such Bonds or temporary noes, that the City will fie any required reports, make any annual financial or material event disclosure, and take any other action that may be necessary m ensure tat the disclosure requirements imposed by Rule 15c2-12 of the Securities and tEcdange Commission, if applicable, are met. THAT the beim "cost" or "costs" as used herein and applied to the Projects, or any porton thereof, Includes, but Is not limited a the cost of financing charges and anuarrce costs, including premiums for insurance, interest for a period not to exceed 3 years from the issue data thereof, undetwi lens' fees and costs, legal and accounting fees and costs, application fees, and other fees and expenses reading to the financing transaction; and the cost of all other financing authorized hereunder, whether related or unrelated a Me foregoing. THAT the France Director, Chairman of the City Council, Clerk, and other proper officials of the City be, and hereby are, authorized and empowered in its name and on Has behalf W do or cause to be done all such acts and things as may be necessary or desirable in order te effect the issuance, sale, and delivery of the Bonds and temporary notes hereinbefore authorized. THAT R the Rrance Director, Chairman of the City Council, or Clerk are for any reason unavailable to approve and execute the Bonds or temporary noes or any related financing documents, the person or persons then acting in any such capacity, whether as an assistant, a deputy, or otherwise, is authorized to act for won official with the same farce and effect as if such official tad himself or herself performed such act THAT in each of the years during whkh any of the Bonds are outstanding, Mere shall be levied a box in an amount that, with other revenues, IF arty, available for that purpose, shall be sufficlent to pay the interest on mid Bonds, payable in such years, and he princtpal of such Bonds maturing in won years. m CITY CORMCIL January 13, 2003 First Reading Referred to Piaavcs Ca® [tee / / mfgg In"CO®CIL ]aaoary 27. 2003 vation Made and seconded to Open Public nearing. Public Rearing Opece& No me free the Public came fornard. Motion Made and stressed to Close Public Rearing. Public Rearing Closed. Motion Made and Seconded for Passage Passed ¢Merz o ROgR (TITLE) eatboriring the lasoanne of $6,610.000 Aggregate Principal AmcuoL of Coastal obligation goods and a Tax Levy Aselgnedto Coundlor yn'AW/I�lC/ 6 03-46 LEGAL NOTICE CITY OF BANGOR, MAINE NOTICE OF PUBLIC HEARING ON ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS Notice is hereby given tam the Bangor City Council will hold a Public Hearing on January 27, 2003 at 7:00 p.m.9 City Hall, Bangor, Maine on the Proposed Issuance of General Obligation Refunding Bonds in the following amounts and for the following proposes: I. General Obligation Refunding Bonds in the Maximum Principal Amount of $3,500,000 to Refund the Principal Outstanding of the City's $5,750,000 1992 Series Limited Obligation Revenue Bonds (Bangor International Airport Protect) dated October 1992 issued to finarrce the costs of Acquisition, Concoction end Equipping of an Expansion b the Terminal or the Bangor Intenm0onal Airport and Related Infrastructure. The facilities financed we owned and operated by the City. 2. General Obligation Refunding Bonds in the Maximum Principal Amount of$6,410,000 an refund the Principal Outstanding of the City's $12,550,0001992 General Obligation Bonds dated August I, 1992 issued to finance (1) the General Strew Middle School (William S. Cohen School) Renovation and Addition; (2) Combined Sewer Overflow Facilities Plan and Sewer Renovation Separation Projects; (3) the City Nursing Facility Expansion; and (4) Bess Park Improvements. The Bonds will be General Obligations of the City and to the extent not paid from specific f or other designated revenue sources, will he repaid from general tax revenues. These Bonds will pledge fie fail faith and credit of the City of Banger for their repayment. All persons who desire to be heard on the Proposed Issuance of the General Obligation Refunding Bonds are invited to word the Public Hearing. The City Counc0 will consider the Adoption of Reminders Authofizing the Issuance of the Bonds immediately following the Public Hearing. Copies of the Proposed Orders will be on file and may be reviewed at the office of the City Clerk prior to said Public Hearing. January 13, 2003 Gail E. Campbell, City Clerk 1