Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Combining Certain Bonds into a Single and Combined Issue
Amount to be Financed: $20,250,000.00
Source of Appropriation: Bonds
Purchaser:
Project Information:
(Description/ Project No./Amount Appropriated/Ordinance No.)
Additional Information:
Invitation: Acting Finance Director, March 18, 2014
body
RESOLUTION COMBINING CERTAIN BONDS OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX INTO A SINGLE AND COMBINED ISSUE PURSUANT TO N.J.S.A. 40A:2-26(f)
WHEREAS, on July 25, 2005 the Governing Body of the City of Newark, in the County of Essex, New Jersey (the "City") finally adopted bond ordinance 6S&FA(S) entitled "BOND ORDINANCE PROVIDING FOR SEWER UTILITY IMPROVEMENTS IN THE CITY OF NEWARK, APPROPRIATING $29,500,000. THEREFORE AND AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $29,500,000. OF BONDS AND/OR NOTES OF THE CITY OF NEWARK FOR FINANCING SAID PURPOSES SET FORTH HEREIN AND AITHORIZED TO BE UNDERTAKEN BY THE CITY OF NEWARK, IN THE COUNTY OF ESSEX,STATE OF NEW JERSEY" (the "2005 Ordinance"); and
WHEREAS, on November 7, 2013 the Governing Body of the City finally adopted Bond Ordinance 6PSF_d entitled "BOND ORDINANCE OF THE CITY OF NEWARK AMENDING CERTAIN OF THE PURPOSES OF BOND ORDINANCE NO. 6S&FA(S) JULY 25, 2005, PREVIOUSLY ADOPTED BY THE CITY OF NEWARK" (the "2013 Amending Ordinance"); and
WHEREAS, on November 7, 2013 the Governing Body of the City finally adopted Bond Ordinance 6PSF-a entitled "A BOND ORDINANCE OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, NEW JERSEY, PROVIDING FOR SEWER UTILITY CAPITAL IMPROVEMENTS AND OTHER RELATED EXPENSES IN AND FOR THE CITY OF NEWARK AND APPROPRIATING $17,750,000. THEREFOR, AND PROVIDING FOR THE ISSUANCE OF $17,750,000. IN BONDS OR NOTES OF THE CITY OF NEWARK TO FINANCE THE SAME" (the "2013 Ordinance"); and
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, NEW JERSEY, AS FOLLOWS:
Section 1. Pursuant to the provisions of N.J.S.A. 40A:2-26(f), of the aggregate $2,500,000 of bonds or notes of the City authorized pursuant to the 2005 Ordinance and 2013 Amending Ordinance for the specified projects and the $17,750,000 of bonds or notes of the City authorized pursuant to the 2013 Ordinance (collectively, the "Ordinances"), up to $20,250,000 of such amount shall be combined into a single and combined issue of bonds of the City, consisting of not to exceed $6,075,000 in principal amount of the City's Sewer Utility Bonds, Series 2014A and not to exceed $16,200,000 in principal amount of the City's Sewer Utility Bonds, Series 2014B (the combined amount not to exceed $20,250,000 (collectively, the "2014 Bonds"). The details of the 2014 Bonds shall be determined by separate resolution of the City.
Section 2. The principal amount of 2014 Bonds authorized to be combined into a single issue as above provided, the bond ordinances authorizing the 2014 Bonds, and the period or average period of usefulness determined in each of the bond ordinances, are respectively as follows:
Bond Ordinance Amount of Bonds or Notes Authorized Useful Life
2005 Ordinance (as amended) $ 2,500,000. 40 years
2013 Ordinance $ 17,750,000. 40 years
At the time of issuance of the 2014 Bonds, the Acting Chief Financial Officer shall designate the amount of 2014 Bonds issued (a combined amount not to exceed to $20,250,000.).
Section 3. The following matters are hereby determined with respect to the combined issue of 2014 Bonds:
(a) The average period of usefulness, computed on the basis of the respective amounts of 2014 Bonds presently authorized to be issued pursuant to each of the bond ordinances and the respective periods or average periods of usefulness therein determined, is not less than 40 years.
(b) The 2014 Bonds of the combined issue shall mature within the average period of usefulness herein determined.
(c) The 2014 Bonds of the combined issue shall be sold and issued in accordance with the provisions of the Local Bond Law applicable to the sale and issuance of bonds authorized by a single bond ordinance, and accordingly may be sold with other issues of bonds.
Section 4. This resolution shall take effect immediately.
STATEMENT
This Resolution Combines Bonds of Several Ordinances into a Single Bond Issue