HomeMy WebLinkAbout2003-01-13 03-47 ORDERcouxaL AMON
teem W. 03-47
Date: 1-1303
Ilam/Subject Order, Autlwnzing the Issuance of $3,500,000 Aggregate Pnnccpal Amount of General
Obligation Bolls and a Tax Levy Therefor
ReaporelbW Department Finance
In 1992, the City mares $5,750,000 of limited revenue dNigation bonds W finance the expansion all
rehabiliation of theterminal at Bangor International Airport As the NrpWs revenue was suffickM to
cover debt service and the uncertainty surrounding how much general obligation debt would have In be
issued for the Combin cl Sewer 0ver lwv program, the City opted to issue limbed revenue M urethan
bonds, which carry a higher coupon nate ringing from 4.4%- 6.7%, Instead of lower cost general
obligagonbonds. Asyouareawam,intem#mtahavirgbeenfallhgforsomeume,eherefomdhe Pty
proposes to -all" the 1992 bonds and re inaM the debt at a ower geneml obligation bond rate. SidR
antrapata that the coupon rate carried by the"new bonds" will range from 1.4%- 3.85%. Thus
resuming in sign i ant savings.
When the original bons were issued, the Airport was required to hweR a certain amount as a debt
service reserve. By caliig the bonds, this reserve will no longer be recasarr and will allow the Airport
rd barrow in excess of $500,000less than is neetletl m canple[e tlhe refirarran9. Overthe neat nine
years, the Airport entropies saving in excess a $727,000.
Department Head
Mareger'c Camnxrrm: Prim to wring an this item, the Council must hold a public hearing. Ager the
pudic hearing is dosed, the Ceunol may proceed to ad on this ceder. % afOrnal votes are required
for approval. The attached bond order nary be amended, but such amendments are lumber to reducing
the amount W be borrowed and no additional projects may be added. I would recommend your
approval.
�n ra.r�t huati++uu�44m" iq f as
City Manager
AssodMetl InMrma[ion: Onkr, Public Notice.
Legal Avprowl:
CI Solicitor
Introduced roc
Passage
saReading Page Of
Refi Re
� Refernal -Finance Committee 1/22/03
03-a7
Assigud m Cwmtiler Paler January 13. 2003
CITY OF BANGOR
(TITLE.) ORDER, AUTHORIIING THE ISSUANCE OF $3,500,000 AGGREGATE
PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS AND A TAX LEVY THEREFOR
WHEREAS, on September 11; 1991, the City Council authorized issuance of $5,750,000
of the Citys Lbnited Obligation Revenue Bonds (Burger International Airport Project) (the
"1992 Bonds"originally Issued m acquire, mnstnxt and equip an exp rislon to the Civs
airport facility (the "Project-); and
WHEREAS, on October 1, 1992 the City issued the 1992 Bonds; and
WHEREAS, due M 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
City;
NOW, THEREFORE, by the Gly Council of the City of Bangor, R Is hereby
ORDERED:
THAT Pursuant to 30-A M.R.SA. §5772, Section 13 of Article VI of the City Charter
(Private and Special laws of 1931, Chapter 59) and all amendments thereof and acts additional
thereto, and all other authority i)tereM enabling, Urcre Is hereby authorized the Issue ant sale
at one time and from time M time up to Three Million Five Hundred Thousand Dollars
($3,5)D,D00) aggregate principal amount of general obligation bonds of the City of Bangor (the
"Bonds'). The proceeds derived from Me sale of said bonds, Including premium, tany, shall
be used and are hereby appropriatetl to pay for the refunding of the prindpal outstanding of
the 1992 Bonds;
THAT the estimatetl remaining weighted period of utility for the property constituting
the project financed with the proceeds of the 1992 Bonds and to be refinanced wilt the
proceeds of the Bonds is hereby determined to be not less than 1S years;
THAT the date, maturities (trot M exceed 15 years from the Issue date), denominations,
Interest rate or rates (not to exceed 5.00% per annum), place of payment, and other details of
each issue of said Bonds, Including the timing and provision for Meir sale and award, shall be
determined 4 the Fnance Director with the approval of the Finance Committee;
THAT the Bonds hereby authorized may be made subject to call for redemption, with or
without a premium, before the data fixed for final payment of the Bonds, as provided in 3 A
M.R.S.A §5772(6), as amended, as shall be determined by the Finance Director with the
approval of the FnarXe Committee.
THAT mid Bonds shall be signed by the Finance Director, countersigned by the
Chairman of the City Council, sealed with the seal of the City, attested by its Clerk and shall be
in such farm and contain such tams and provisions not inconsistent herewith As they may
03-47
approve, Meir approval M be conclusively evidenced by Meir execution thereof. Airy Issue of
Bonds may be consolidated with and issued at the same time as any other issue of the City's
bends autfarimcl prior to their issuance, and the Bonds may be divlded Into multiple series and
issued in separate plans of financing, with the approval of the Finance Committee.
T T pursuarR to 30-A M.R.SA. §5772, Section 15 of Article VI of the City Charter and
and other authority thereto enabling, the Finance Director, with approval of the Finance
Committee, is hereby authorized to issue temporary noes of tiro City in anticipation of the
forgoing issue of Bonds, said temporary notes to be signed "a Finance Director,
countersigned by the Chairman of the City Council, sealetl with the seal of the City, arrestetl by
its Clerk, and othervrise to be in such form and contain such terms and provisions including,
without limitation, maturities (not be exceed 3 years from the issue date), denaninations,
interest rate or rates (not to exceed 5.00% per annum), place of payment, and other details as
May shall approve, their approval M be conclusively evidenced by Meir 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 Cincluding notes in
renewal thereof) and bonds authorized to be Issued by the City Courcil at any time prior tu the
data of issuance of Me tempoary notes.
THAT the Bonds and temporary notes shall be transferable only an the registration
books of the Cty kept by the transfer agent, and said principal amount of the Bonds and
temporary, notes tithe same maturity (but not of other maturity), upon surrender thereof at
Me principal office of the tarsrer agent, wAh a wrakn instrument of transfer satisfactory M
the transfer agent duly executed by the registered owner or his or her atMmey duly autharizeci
in writing.
THAT the Finance Director be and hereby Is authorized to select the registrar, paying
agent, and transfer agent (the "transfer Agent"), financlal advisor and underwater for the
Bonds and tempoary rates and to execute and deliver such contracts and agreements as may
be necessary or appropriate to secure Meir services.
THAT the Rnance Direrior and Chairman of the City Council from time to time shall
emoute such Bonds or temporary notes as may be required to provide for exchanges or
tanafers of Bonds or temporary nates as heretofore authorized, all such Bonds or temporary
notes tu bear the original signature of the Finance Dinedor and Chairman of Me City Council,
and in case any officer of the City whose signature appears on any Band or temporary note
shall mase to be such officer before Me tlelNer of said Bond or temporary rare, such signature
shall nwe a eless be valid and sufficient for all purposes, the same as'd such officer had
remained in office until delivery thereof.
THAT upon each erdhange or transfer of Bon& or temporary notes, the City and
transfer agent shall make adage sufficient to cover any tax, fee, or other governmental
large required th be paid wdh respell M such transfer or exchange, and subsequent tu the
first exchange or transfer, Me cost of which shall be bome by the City, are cost of preparing
new bonds or tempoary notes upon exchanges or transfers thereof shall be paid by the person
requesting the same.
T T, 9 the Bonds or temporary notes, or any part of them are issued on a tax ecempt
basis, the officers executing such Bands or temporary notes be and hereby are individually
auttmrized and directed to covenant and certify an behalf of the City that no part of the
proceeds of the'vsue and sale of the Bonds or temporary notes authorized to be issued
03-67
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 [ands" within the
meaning of Section 198 of the Internal Revenue Code of 1986, as amended (the "CoW)
TH11T, ifthe Bonds or temporary note, or any part of them, are Issued on a tax
exempt basis, the officers executing such Bonds or temporary nates 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 MU file any required reports; and take any other
action that may be necessary te ensure that Interest on the Bonds or temporary notes will
remain exempt from federal income taxation and that the City will refrain from any action that
would cause interest on the Bonds or temporary notes to be subject to federal income taxation
THAT the officers executing the Bonds or temporary hams be and hereby are
individually authorized to covenant, certify, and agree, on behalf of the City, for the benefit of
Me holders of such Bonds or temporary notes, that the City will file any required reports, make
any annual financial or material event disclosure, and take any other action that may be
necessary te ensure that one disclosure requirements imposed by Rule 15c2-12 of the Securities
and Pxchange Commission, W applicable, are met.
THAT the term "cost" or "costs" as used herein and applied to the Projear, or any
portion thereof, includes, but is not limited to the cost of financing charges and issuance casts,
inducting premiums for insurance, interest for a period not to exceed 3 years from the issue
data thereof, underwriters! fees and cosh, legal and accounting fees and costs, applicatan
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.
TMT the France Director, Chairman of the City Council, Clerk, and other proper
officials "e City the, and hereby are, authorized and empowered in he name and on Its behalf
W do or cause to be done all such acts and things as may be necessary or desirable In order to
effect the issuance, sale, and delivery of the Bonds and temporary notes hereinbefore
authorized.
THAT X the Finance Director, Chairman of the City Council, or perk are for arty reason
unavailable to approve and execute the Bonds or temporary notes 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 such official with the same force and effect as if
such official had himself or herself perfomred such a¢.
THAT in each of the years during which any of the Bonds are outstanding, there shall
be levied a tax in an amount that, with other revenues, R any, available for that purpose, shall
be sufficient to pay the Interest on said BOMB, payable in such years, and the principal of such
Bonds mawring in such years.
M CITY COOPCIL
January 13. 2003
First Heading
Referred to Finance
fu®ittee
t TY
IN GCiy COMCIL
January 27, 2003
Motion gads and Seconded to
Open Public Hearing. Public
Hearing Opened. No one from
the Public same forward.
Motion Bade and Seconded to
Close Pub11c Hearing. Public
Hearing closed
Motion Made and Seconded
for Passage
Passed
lfT G"gg I
(TITLE, Auchoriafvg cbe Ieanramre at ^.
i3sgoa� _ agate nr w t o
Gaceral Obligation goods and a Saz Levy
Assigned to Councilor
03-66 6 0317
03-66 6 03-67
LEGAL NOTICE
CITY OF BANGOR, MAINE
NOTICE OF PUBLIC HEARING ON ISSUANCE
OF GENERAL OBLIGATION REFUNDING BONDS
Notice is hereby given that the Bangor City Council will hold a Public Hearing on January 27,
2003 at 7:00 p.m. a City Had, Burger, Maine on the Proposed Issuance of General Obligation
Refunding Bonds in the following amounts and for the following purposes:
1. General Obligation Refunding Bonds in the Maximum Principal Amount of $3,500,000 to
Refund the Principal Outstanding of the City's $5,750,0001992 Series Limited Obligation
Revenue Hands (Bangor fi temazimml Airport Project) dated October 1992 issued to finance the
costs of Acquisition, Construction and Equipping of an Expansion to the Terminal at the Bangor
International Airport and Related Infrastructure. The facilities financed are owned and operated
by the City.
2. General Obligation Refunding Bonds in the Maximum Principal Amount of $6,410,000 to
refund the Principal Outstanding of the City's $12,550,0001992 General Obligation Bonds dated
August 1, 1992 issued to finance (1) the Garland Street Middle School (William S. Cohen
School) Recovering and Addition; (2) Combined Sewer Overflow Facilities Plan and Sewer
Recreation Separation Projects; (3) the City Nursing Facility Expansion; and (4) Bass Park
Improvements.
The Bonds will be General Obligations of the City and to the extent not paid from specific fees
or other designated revenue sources, will be repaid from general for: revenues. ]hese Bonds will
pledge the full faith and credit of the City of Bangor for their repayment.
All persons who desire to be heard on the Proposed Issuance of the General Obligation
Refwding Bonds are invited to around da Public Hearing. The City Council will consider the
Adoption of Resolutions Authori ang 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