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AN ORDINANCE OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, NEW JERSEY, PROVIDING FOR THE REHABILITATION OF A PORTION OF THE PEQUANNOCK AQUEDUCTS AND OTHER RELATED EXPENSES IN AND FOR THE CITY AND APPROPRIATING $22,000,000.00 THEREFOR, AND PROVIDING FOR THE ISSUANCE OF $22,000,000.00 IN BONDS OR NOTES OF THE CITY TO FINANCE THE SAME.
Deferred 6PSF-k 080223
Deferred 6PSF-a 090723
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BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, NEW JERSEY (not less than two-thirds of all members thereof affirmatively concurring), THAT:
Section 1. The improvement or purpose described in Section 3 of this Bond Ordinance is hereby authorized to be undertaken by the City of Newark, in the County of Essex, New Jersey (the "City"), as a general improvement. For the improvement or purpose described in Section 3 hereof, there is hereby appropriated the amount of $22,000,000.00. No down payment is required hereunder as this ordinance involves an environmental infrastructure project to be funded by loans pursuant to the New Jersey Water Bank Financing Program.
Section 2. In order to finance the cost of the improvement or purpose, negotiable bonds are hereby authorized to be issued in the principal amount of $22,000,000.00 pursuant to the Local Bond Law. In anticipation of the issuance of the bonds, negotiable bond anticipation notes are hereby authorized to be issued pursuant to and within the limitations prescribed by the Local Bond Law.
Section 3. (a) The improvement hereby authorized and the purpose for which the bonds or notes are to be issued is for the rehabilitation of the upstream approximately six (6) miles of the twin, parallel, 48-inch and 42-inch Pequannock aqueducts located in the Township of West Milford, the Borough of Kinnelon, the Borough of Butler and the Township of Pequannock, including, without limitation, improvements to the air/vacuum release, aqueduct sustainability, aqueduct operability and site work, and including all work and materials necessary therefor or incidental thereto.
(b) The estimated maximum amount of bonds or notes to be issued for the improvement or purpose is $22,000,000.00.
(c) The estimated cost of the improvement or purpose is $22,000,000.00.
Section 4. All bond anticipation notes issued hereunder shall mature at such times as may be determined by the chief financial officer; provided that, except as provided in N.J.S.A. 58:11B-9(e), no note shall mature later than one year from its date. The notes shall bear interest at such rate or rates and be in such form as may be determined by the Chief Financial Officer. The notes shall be executed by the chief financial officer and the Mayor of the City of Newark and shall be under the seal of the City and attested by the Acting City Clerk. The Chief Financial Officer shall determine all matters in connection with notes issued pursuant to this bond ordinance, and the Chief Financial Officer's signature upon the notes shall be conclusive evidence as to all such determinations. All notes issued hereunder may be renewed from time to time subject to the provisions of the Local Bond Law. The Chief Financial Officer is hereby authorized to sell part or all of the notes from time to time at public or private sale and to deliver them to the purchasers thereof upon receipt of payment of the purchase price plus accrued interest from their dates to the date of delivery thereof. The Chief Financial Officer is directed to report in writing to the Governing Body at the meeting next succeeding the date when any sale or delivery of the notes pursuant to this bond ordinance is made. Such report must include the amount, the description, the interest rate and the maturity schedule of the notes sold, the price obtained and the name of the purchaser.
Section 5. The capital budget or temporary capital budget (as applicable) of the City is hereby amended to conform with the provisions of this Bond Ordinance to the extent of any inconsistency herewith. In the event of any such inconsistency and amendment, the resolution in the form promulgated by the Local Finance Board showing full detail of the amended capital budget or amended temporary capital budget (as applicable) and capital program as approved by the Director of the Division of Local Government Services is on file with the Acting City Clerk and is available there for public inspection.
Section 6. The following additional matters are hereby determined, declared, recited and stated:
(a) The improvement or purpose described in Section 3 of this Bond Ordinance is not a current expense. No part of the costs thereof has been or shall be specially assessed on property specially benefited thereby.
(b) The period of usefulness of the improvement or purpose, within the limitations of the Local Bond Law, according to the reasonable life thereof computed from the date of the bonds authorized by this Bond Ordinance, is forty (40) years.
(c) The Supplemental Debt Statement required by the Local Bond Law has been duly prepared and filed in the office of the Acting City Clerk, and a complete executed duplicate thereof has been filed in the office of the Director of the Division of Local Government Services in the Department of Community Affairs of the State of New Jersey. Such statement shows that the gross debt of the City as defined in the Local Bond Law is increased by the authorization of the bonds and notes provided in this Bond Ordinance by $22,000,000.00, and that the obligations authorized herein will be within all debt limitations prescribed by that Law.
(d) An aggregate amount not exceeding $4,203,000.00 for items of expense listed in and permitted under N.J.S.A. 40A:2-20 is included in the estimated cost indicated herein for the improvements or purposes.
(e) The City reasonably expects to commence acquisition and construction of the improvement or purpose described in Section 3 hereof, and to advance all or a portion of the costs in respect thereof, prior to the issuance of bonds or notes hereunder. To the extent such costs are advanced, the City further reasonably expects to reimburse such expenditures from the proceeds of the bonds or notes authorized by this Bond Ordinance, in an aggregate amount not to exceed the amount of bonds or notes authorized in Section 2 hereof.
Section 7. Any grant moneys received for the purposes described in Section 3 hereof shall be applied either to direct payment of the cost of the improvement or to payment of the obligations issued pursuant to this Bond Ordinance. The amount of obligations authorized hereunder shall be reduced to the extent that such funds are so used.
Section 8. The full faith and credit of the City is hereby pledged to the punctual payment of the principal of and the interest on the obligations authorized by this Bond Ordinance. The obligations shall be direct, unlimited obligations of the City, and the City shall be obligated to levy ad valorem taxes upon all the taxable property within the City for the payment of the obligations and the interest thereon without limitation of rate or amount.
Section 9. To the extent that any previous ordinance or resolution is inconsistent herewith or contradictory hereto, said ordinance or resolution is hereby repealed or amended to the extent necessary to make it consistent herewith.
Section 10. This Bond Ordinance shall take effect twenty (20) days after the first publication thereof after final adoption, as provided by the Local Bond Law.
STATEMENT
An Ordinance providing for the rehabilitation of a portion of the Pequannock Aqueducts and other related expenses in and for the City of Newark and appropriating $22,000,000.00 therefor, and providing for the issuance of $22,000,000.00 in Bonds or Notes of the City of Newark to finance the same.