HomeMy Public PortalAboutOrd. 11-028MrbriktaltU
No. 11-28 elf t48
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Councilman Presents the following Ordinance Seconded by Councilman
ORDNANCE PROVIDNG FOR VARIOUS CAPITAL
hVIPROVEMENTS WITHIN! THE SPECIAL MIPROVENIENT
DISTRICT N AND BY THE BOROUGH OF CARTERET, N
THE COUNTY OF MIDDLESEX, NEW JERSEY,
APPROPRIATING $12,250,000 THEREFOR AND
AUTHORIZING THE ISSUANCE OF $12,250,000 BONDS OR
NOTES OF THE BOROUGH TO FINANCE PART OF THE
COST THEREOF TO BE REPAID WITH CONTRIBUTIONS
FROM SPECIAL IMPROVEMENT DISTRICT.
WHEREAS, by ordinance number 03 -47, duly adopted by the Borough Council (
"Borough Council ") of the Borough of Carteret (the "Borough") on December 13, 2003, i
Borough created a special improvement district (the "Special Improvement District') pursuant
N.J.S.A. 40:56 -65 et seq.; and
WHEREAS, the Special Improvement District is pvcmed by a district
corporation, as that term is defined in N.J.S.A. 40:56 -66c, entitled "Carteret
Partnership, Inc." (tile "CBP "); and
WHEREAS, the Borough desires to help finance the cost of improvements to be
iken within the Special Improvement District through the issuance of bonds, or notes
in anticipation thereof, pursuant to the Local Bond Law, N.J.S.A. 40A:2 -1 or seq.; and
WHEREAS, the purposes of the above - described improvements are the promotion of the
ric and general welfare of the Special Improvement District and the Borough; and
WHEREAS, the CBP has adopted a resolution pursuant to which it will contribute to the
Borough a portion of the revenues collected each year by the CBP to pay the debt service due on
the notes and/or bonds described above and authorized herein; and
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PAGE 2
WHEREAS, the Borough and the CBP will enter into an agreement, in substantially the
e form as that on file with the Borough Clerk, to memorialize the obligation of the CBP to
:e annual payments to the Borough described above and the obligation of the Borough to
ly such funds to the payment of the debt service on the debt authorized herein; and
WHEREAS, as a result of the CBP's obligation to make the payments described above
the Borough's obligation to apply such funds to the payment of the debt service on the debt
herein, the debt authorized herein is self - liquidating and is deductible from the
of the Borough pursuant to N.J.S.A. 40A:2 -44f; and
WHEREAS, pursuant to N.J.S.A. 40A:2 -1 le and 2 -7h, no down payment is required.
BE IT ORDAINED BY THE BOROUGH COUNCIL OF THE BOROUGH
IN THE COUNTY OF MIDDLESEX, NEW JERSEY (not less than hvo -thuds
members thereof affirmatively concurring) AS FOLLOWS:
Section 1. The several improvements described in Section 3 of this bond ordinance
respectively authorized to be undertaken by the Borough as general improvements. For
several improvements or purposes described in Section 3, there are hereby appropriated
e sums of money therein stated as the appropriation made for each improvement or
such sums amounting in the aggregate to $12,250,000. No down payment is required
to N.J.S.A. 40A:2 -11(c) as the several purposes authorized herein are deemed self -
g and the obligations authorized herein are deductible from the gross debt of the
as more fully explained in Section 6(e) of this bond ordinance.
Section 2. In order to finance the cost of the several improvements or
negotiable bonds are hereby authorized to be issued in the principal amount of $1
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
by the Local Bond Law.
Section 3. (a) The several improvements hereby authorized and the several purposes for
the bonds are to be issued, the estimated cost of each improvement and the
therefor, the estimated maximum amount of bonds or notes to be issued for each
the period of usefulness of each improvement, all of which are to be undertaken with the
special improvement district, are as follows:
1 11-28 PAGE --3-
(b) The estimated maximum amount of bonds or notes to be issued for the several
or purposes is as stated in Section 2 hereof.
(c) The estimated cost of the several improvements or purposes is equal to the
amounts of the appropriations herein made therefor.
Section 4. All bond anticipation notes issued hereunder shall mature at such times as
may be determined by the chief financial officer; provided that 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
I
may be determined by the chief financial officer. The chief financial officer shall determine all
matters in connection with notes issued pursuant to this ordinance, and the chief
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 offi cer is hereby authorized to sell part or all of the notes from
II time to time at public or private sale and to deliver them to the purchasers thereof upon receipt of
Estimated
Appropriation
Maximum Amount
and Estimated
of Bonds or
Period of
Purpose
Cost
Notes
Usefulness
a) Portion of Borough's share of
costs of construction and
installation of a marine ferry
terminal and marina, including
dredging and all work and
materials necessary therefor
-
and incidental thereto.
$5,500,000
$5,500,000
40 years
b) Construction or installation of
structured parking facility,
including all work and
materials necessary therefor
and incidental thereto.
$6,000,000
$6,000,000
40 years
Estimated
Appropriation
Maximum Amount
and Estimated
of Bonds or
Period of
Puroose
Cost
Notes
Usefulness
c) Portion of Borough's share of
costs of construction or
installation of various road
improvements and traffic signal
system improvements at or
adjacent to the Post
BoulevardNlinue Street/
Roosevelt Avenue intersection,
_
including all work and
materials necessary therefor
and incidental thereto.
$750.000
$750,000
10 years
TOTALS
512250.000
$12.250.000
(b) The estimated maximum amount of bonds or notes to be issued for the several
or purposes is as stated in Section 2 hereof.
(c) The estimated cost of the several improvements or purposes is equal to the
amounts of the appropriations herein made therefor.
Section 4. All bond anticipation notes issued hereunder shall mature at such times as
may be determined by the chief financial officer; provided that 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
I
may be determined by the chief financial officer. The chief financial officer shall determine all
matters in connection with notes issued pursuant to this ordinance, and the chief
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 offi cer is hereby authorized to sell part or all of the notes from
II time to time at public or private sale and to deliver them to the purchasers thereof upon receipt of
NO. x-28
PAG
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
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 of the Borough is hereby amended to conform with the
provisions of this ordinance to the extent of any inconsistency herewith. The resolution in the
form promulgated by the Local Finance Board showing full detail of the amended capital budget
and capital program as approved by the Director of the Division of Local Government Services
is on file with the Clerk and is available there for public inspection.
Section 6. The following additional matters are hereby determined, declared, recited and
stated:
(a) The improvements described in Section 3 of this bond ordinance are not current
expenses. They are all improvements that the Borough may lawfully midertake as general
improvements, and no part of the costs thereof has been or shall be specially assessed on
property specially benefitted thereby.
(b) The average period of usefulness, computed on the basis of the respective
amounts of obligations authorized for each purpose and the reasonable life thereof within the
limitations of the Local Bond Law, is 33.16 years.
(c) The Supplemental Debt Statement required by the Local Bond Law has been duly
prepared and filed in the office of the 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
i
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gross debt of the Borough as defined in the Local Bond Law is increased by the authorization of
the bonds and notes provided in this bond ordinance by 512,250,000, but that the net debt of ttie
Borough determined as provided in the Local Bond Law is not increased by this bond ordinance.
The obligations authorized herein will be within all debt limitations prescribed by that Law.
(d) An aggregate amount not exceeding $2,450,000 for items of expense listed in and
permitted tinder N.J.S.A. 40A:2 -20 is included in the estimated cost indicated herein for the
purposes or improvements.
NO. 11-28
I PAGE S
(e) This bond ordinance authorizes obligations of the Borough solely for purposes
described in N.J.S.A. 40A:2 -7(h). The obligations authorized herein are to be issued for
purposes for which.there are accounts receivable or amounts which may be payable, which funds
are applicable only to the payment of the gross debt authorized herein and are deductible from
gross debt pursuant to N.J.S.A. 40A:2 -44(t) and, thus, such purposes are self - liquidating.
(f) The Mayor is hereby authorized to execute an agreement with the CBP, in
substantially the same form as that on file with the Borough Clerk, for the purpose of
memorializing the obligation of the CBP to make payments to the Borough for the purpose of
making debt service payments in connection with the debt authorized herein.
Section 7. The Borough hereby declares the intent of the Borough to issue the bonds or
bond anticipation notes in the amount authorized in Section 2 of this bond ordinance and to use
proceeds to pay or reimburse expenditures for the costs of the purposes described in Section 3 of
this bond ordinance. This Section 7 is a declaration of intent within the meaning and for
purposes of Treasury Regulations.
Section 8. Any grant moneys received for the purposes described in Section 3 hereof
shall be applied either to direct payment of the cost of the improvements or to payment of the
obligations issued pursuant to this ordinance. The amomnt of obligations authorized but not
issued hereunder shall be reduced to the extent that such funds are so used.
Section 9. The chief financial officer of the Borough is hereby authorized to prepare and
to update from ti to time as necessary a financial disclosure document to be distributed in
connection with the sale of obligations of the Borough and to execute such disclosure document
on behalf of the Borough. The chief financial officer is further authorized to enter into the
appropriate undertaking to provide secondary market disclosure on behalf of the Borough
pursuant to Rule 15c2 -12 of the Securities and Exchange Commission (the "Rule ") for the
benefit of holders and beneficial owners of obligations of the Borough and to amend such
undertaking from time to time in comnection with any change in law, or interpretation thereof,
provided such undertaking is and continues to be, in the opinion of a nationally recognized bond
counsel, consistent with the requirements of the Rule. In the event that the Borough fails to
comply with its undertaking, the Borough shall not be liable for any monetary damages, and the
remedy shall be limited to specific performance of the undertaking.
NO. 11 -2$
PAGE 6
Section 10. The full faith and credit of the Borough are 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 Borough, and the Borough shall be
obligated to levy ad valorem taxes upon all the taxable real property within the Borough for the
payment of the obligations and the interest thereon without limitation of rate or amount.
Section 11. This bond ordinance shall take effect 20 days after the first publication
thereof after final adoption, as provided by the Local Bond Law.
RECORD OF COUNCIL VOTE -
COUNCILMAN
YES
NO
NV
A.B.
COUNCILMAN
YES
NO
NV
A.B.
B ULL
X
KRUN
x
DW
X
IQAFLES
x
DIMMO
X
SrMz
x
X - Indicate Vote AB - Absent
NV - Not Voting XOR - Indicates Vote to Overrule Veto
Adopted on first reading of the Council of the Borough of Carteret, NJ., on
Adopted on second reading after hearing on December 19, 2011
DxaTbPx 1, 2011
APPROVED BY A
idAYOR
ON
r
AfiiNlPl 1 v v
it_
17 N � �'►
The following is a true copy of a Ordinance or Resolution of
the Borough of Carteret that has appeared in the Star Ledger,
a newspaper which is printed in Newark, New Jersey and
published in Essex County, of general circulation in said
county and state. One (1) time(s) once in each issue as follows:
December 10, 2011
V , X
The following is a true copy of a Ordinance or Resolution of
the Borough of Carteret that has appeared in the Star Ledger,
a newspaper which is printed in Newark, New Jersey and
published in Essex County, of general circulation in said
county and state. One (1) time(s) once in each issue as follows:
December 10, 2011
m
/U77\T /'f 1[17 Nrlll[I7►1
The following is a true copy of a Ordinance or Resolution of
the Borough of Carteret that has appeared in the Star Ledger,
a newspaper which is printed in Newark, New Jersey and
published in Essex County, of general circulation in said
county and state. One (1) time(s) once in each issue as follows:
December 24, 2011
Notary Public of New Jersey
Kathleen M. Barney, M C
Municipal Clerk
Sworn and Subscribed before LINDA A. RIVERA
Me this -3 day of NOTARY PUBLIC OF NEW JERSEY
11Y COMMISSION EX"iRES MAY 2, 2016