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
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