NOTICE OF MEETING FOR CONSIDERATION OF PROPOSED ORDINANCE AUTHORIZING THE INCURRENCE OF NONELECTORAL DEBT
NOTICE IS HEREBY GIVEN that the Council of the City of Easton (the “City”) will hold a public meeting not less than three (3) nor more than thirty (30) days after the date of publication of this notice [Wednesday, September 23, 2020 at 6:00 p.m.] via ZOOM, for the purpose of considering and acting upon an ordinance (the “Ordinance”) authorizing the incurrence of nonelectoral debt by the City. To obtain the ZOOM link for the meeting please go to the City’s website and access the City’s Calendar of Events https://www.easton-pa.com/city-council/events/32123 and click the link for the appropriate meeting.
The following is a summary of the contents of the Ordinance which, among other things:
1. Authorizes the City to incur nonelectoral debt in the maximum principal amount of $55,500,000 pursuant to the Local Government Unit Debt Act, as amended (the “Act”), and to evidence such indebtedness by the issuance of its Federally Taxable General Obligation Notes, Series of 2020 (the “Notes”) to finance:
(i) a capital project consisting of the construction of a new seven (7) level parking deck on the City’s North Fourth Street parking lot which will have approximately 495 parking spaces (the “Capital Project”);
(ii) a refinancing program to
(A) currently refund a portion of the City’s outstanding
- General Obligation Bonds, Federally Taxable Series A of 2007 (the “Refunded 2007A Bonds”),
- Federally Taxable General Obligation Bonds, Series B of 2015 (the “Refunded 2015B Bonds”),
- General Obligation Bonds, Series C of 2015 (the “Refunded 2015C Bonds”), and
- General Obligation Bonds, Series B of 2017 (Federally Taxable) (the “Refunded 2017B Bonds” and together with the Refunded 2007A Bonds, the Refunded 2015B Bonds and the Refunded 2015C Bonds, collectively, the “Current Refunded Bonds”);
(B) advance refund all or a portion of the City’s outstanding
- General Obligation Bonds, Series of 2013 (the “Refunded 2013 Bonds”),
- General Obligation Bonds, Series A of 2015 (the “Refunded 2015A Bonds”), and
- General Obligation Bonds, Series A of 2017 (the “Refunded 2017A Bonds” and together with the 2013 Refunded Bonds and the Refunded 2015A Bonds, collectively, the “Advance Refunded Bonds” and the Current Refunded Bonds and the Advance Refunded Bonds are collectively referred to herein as the “Refunded Bonds”) )(the “Refinancing Program”, and together with the Capital Project, the “Projects”); and
(iii) payment of the costs and expenses of issuing the Notes.
2. States the estimated useful lives of the Projects and that the City has obtained realistic cost estimates for the Projects.
3. Determines and states that the purpose of the Refinancing Program is to substitute notes for bonds.
4. States that the debt to be incurred through the issuance of the Notes is nonelectoral.
5. Finds, after due consideration and investigation, a private sale of the Notes by negotiation is in the best financial interest of the City.
6. Provides for the sale of the Notes at a private negotiated sale, and accepts a proposal for the purchase of the Notes from PNC Capital Markets, LLC and Boenning and Scattergood, Inc., which will be presented at the meeting.
7. Contains a statement that the Notes, when issued, will be a general obligation notes.
8. Authorizes the proper officers of the City and their successors, to perform all actions necessary to execute all necessary documents, including but not limited to a Debt Statement and a Borrowing Base Certificate, to file a transcript of the proceedings pertaining to the Notes with the Pennsylvania Department of Community and Economic Development and to take further action necessary to carry out the Ordinance.
9. Contains a covenant by the City as required by the Constitution of Pennsylvania and by the Act that the City shall include in the budget for each fiscal year the amount of debt service due on the Notes for each such fiscal year; that it shall appropriate such amounts from its general revenues for the payment of such debt service; that it shall duly and punctually pay or cause to be paid the interest on and principal of the Notes as the same shall become due; and that, for such budgeting, appropriation and payment, the full faith, credit and taxing power of the City is pledged.
10. Provides for the creation of a Sinking Fund for the Notes and the appointment of a Paying Agent and Sinking Fund Depository and authorizes the proper officers of the City to enter into a contract with the Paying Agent and Sinking Fund Depository.
11. Provides for the form of the Notes and the authentication certificate appertaining thereto and the terms thereof, including the schedule of principal maturities on a not to exceed basis, the maximum rates of interest and interest payment dates, and place of payment and redemption provisions (if any) for the Notes.
12. Authorizes the application of the proceeds of the Notes, including the payment of the costs and expenses of the Notes.
13. Authorizes the redemption and payment of the Refunded Bonds and the establishment of escrow funds therefor.
14. Approves the preparation and distribution of a Preliminary Official Statement and final Official Statement for the Notes.
15. Provides for other matters in connection with the issuance and sale of the Notes.
A copy of the proposed Ordinance described above may be examined by any citizen at the office of the City Clerk, City Hall, located at 123 South Third Street, 3rd floor, Easton, Pennsylvania 18042, on business days between the hours of 8:30 a.m. and 4:30 p.m. The City Council will hold a meeting on Wednesday, September 23, 2020 at 6:00 p.m. online via ZOOM as set forth at the beginning of this notice. The Ordinance may be enacted at such meeting or at any other meeting held during the period described at the beginning of this notice. If the Ordinance is enacted, a Notice of Enactment thereof, including a summary of the omitted details, all of which will be determined at the meeting and will be inserted in the Ordinance prior to enactment, and also including any amendments to the Ordinance during final passage will be advertised after enactment and made available for examination by any citizen in accordance with the Act.
Rita M. Messa, City Clerk CITY OF EASTON, PENNSYLVANIA
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