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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