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HomeMy WebLinkAbout2001-06-25 01-257 ORDERCOUNCIL ACTION Item No. 01-257 Date: June 25,2001 Item/Subject: ORDER - Amending Order Nos. 97-310, 97-411 and 98-309 to Re -allocate Bond Proceeds Responsible DeparLrrenb Reance CRmme Bary: The attached order would authorize the malloal of $728,620 in bond proceeds The excess funds result from actual project ass being less than anticipated (Oty Hall), actual projects that were not as ectensave as originally planned (City Nursing Facility) and projects [hat were not undertaken (BACIS, Waterworks Improvements). The re allocation is necessary for two primary reasons: the City must spend general obligation bonds within a strict time frame and our inability to refinance certain debt, currently outstanding. Due to IRS regulations, principal payments on a City general obligation now had to be made In advance of the maturity schedule. This was caused by the faster than anticipated sales of the surplus housing in the Randolph Drive area. By making the unanticipated pdndpal payments, the City has no ability to refinance the prepaid principal with new general obligation bonds. The attached order will allow the City to reimburse itself and pay for interest expense on the City's 1999, 2000 and 2001 debt issues. This will allow the City to use the reimbursed funds to payoff dee existing debt that can not be refinanced. In addition, this order will fund! the Recycling Improvements that were approved in the l capital requests was net Included in the City's annual borrowing, nineerror. A w2 Department Head Manager's Comments: 6 fABkIC ,FtIlew& IS KFQui 02 -0 4CPOP3 Fo,i Ux hw ex City Manager Order, public notice. Budget Approval: Finance Committee recommends your approval. inance Director City Solicitor Introduced for 3 passage _ Rrat Reading Page _ of Referral 01-257 Aaigoed mComubr Pa r Jw 25. 2001 CITY OF BANGOR (TIRE.) ORDER, Amending Order Nos 97-310, 97-411 and 98-309W Re -allocate Bond Proceeds WHEREAS, on July 28, 1997 the City Council of the City of Bangor adopted Order 97-310 authodzing the Issuance of the City's general obligation bonds, $56,700 of which was M be used for the Mall Area Trills Project and remains unexpended as of the daft hereof, and WHEREAS, on October 27, 1997 are CIN Council of Me City of Bangor adapted Order 97411 authoring the imuanoee of the qty's general obligation bonds, $167,370 of which was to he used for the City Nursing Facinty Project and remains unexpended as of Me data hereof; and WHEREAS, on August 10, 19% Um City Council of the City of Bangor adopted Order 98-309 authorizing the Issuance of the City's general obligation bard% $338,750 of which was to be used (or Waterworks Mprovemems; $30,350 for Me City Hall Roof, and $135,450 for the SAM Rojects and remains unexpended as M Me dam hereof (each of Me foregoing projects above referred to as Me "Prior Orders" and each of the foregoing projects above refined to as the "Prior Pmjees'); and WHEREAS, the City Issued the general obligation bonds described above as part of the Cho bond issues In 1999, 2000 and 2001 (the foregoing bond Issues referred to as the "Mor Bonds'); and WHEREAS, the City has decided either not to proceed entirely or partially with or has malted savings on the Nor Pmjeds; and WHEREAS, the unexpended proceeds of the Prior Was Issued to fund such Mor Project must be allocated or re -allocated to other qualifying projects or project costs; NOW, THEREFORE, BE BORDERED by Use City Coundl of the City of Bangor, that the Pdar Projects approved in the Nor Orders be and hereby are amended to include, and Me unexpended proceeds of Me Pdar Bonds be and hereby are allocated or reallocated for, some or all of the following purposes: Allocation or Re -allocation Prot of Proceeds Renovations and Upgrades to the Recycling Building $89,200 Reallocaton to Interest expenses Incurred by 01-257 Me City on Me Prior Balls $639.420 Total $72,620 SHAT, in all other respects, Order Nos. 97-310, 97411 and 98-309 are hereby MbT*d and confirmed and Mat the Acting Roane Director is hareby auMorizeE to establish the necessary a unts. IH CTTf COUNCIL Jose zs. 2001 Notion Hale 6 seconded to Open Public Hearing. Public Hearing Opened. No one fron the Public Cam Forward. Notian Made d seconded to Close Public Hearing. tPublac Hearing Clased Motion Made s seconded for Passage Paecedc N o1 -2A (TITLE,) kneading Ordevd'a 9p-010. 97-411 and 9i"My acs a seen Proceeds �kaeigned bb/Councibr �� 01-257 PUBLIC HEARING CITY OF BANGOR RE -ALLOCATION OF BOND PROCLEDS The Bangor City Council will hold a public hearing at its regular meeting at 7:30on Monday, Jane 25, 2001 in the City Council Chambers on the 3"a Floor of City Hall, 73 Her w Street, Burger, Maine, for the purpose of hearing public comment on a proposed re-allocmion of proceeds of generalobligation bonds of the City previouslyissued pursuant to Orders N¢. 97- 310 (adopted July 28, 1997), 97411 (adopted October 27,1997), 98-309 (adopted August 10, 1998). An meant not w exceed $750,000 of the proceeds of the general obligation hands (including investment earnings) previously issued and outstanding pursuant to the foregoing Orders will be used m firmnce (or to reimburse the City or be reallocated to prior expenditures) on the following projects: Project Interest Expense on the City's 1999, 2000 and 2001 Bonds Recycling Building Improvements Skid Steer loader Conveyor Belt A copy of the Orders will be available to the public in the City Clerk's office at Bangor City Hall prior to the public hearing. The public is invited to address the Council on this proposed reallocation of bond proceeds. lme 15. 2001 Call E. Umphell, City Clerk o To, magor Caw,CNy�ew LlCo oWIW0 Nolhe31d HGiaq�p IN73HIM �: 0,,,1101 W. 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