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HomeMy Public PortalAboutOrdinance 01:47;ouncilman Presents thc following Ordinance Seconded ~y Councilman BOND ORDINANCE PROVIDING FOR DEMOLITION AND DISPOSAL OF UNSAFE BUILDINGS IN AND BY THE BOROUGH OF CARTERET, IN THE COUNTY OF MIDDLESEX, NEW JERSEY, APPROPRIATING $450,000 THEREFORE AND AUTHORIZING THE ISSUANCE OF $450,000 BONDS OR NOTES OF THE BOROUGH TO FINANCE PART OF THE COST THEREOF BE IT ORDAINED BY THE BOROUGH COUNCIL OF THE BOROUGH OF CARTERET, IN THE COUNTY OF MIDDLESEX, NEW JERSEY (not less than txvo-thirds of all members thereof affirmatively concurring) AS FOLLOWS: Section 1. Thc improvement described in Section 3 of this bond ordinance is hereby authorized to be undertaken by the Borough of Carteret, New Jersey as a general improvement. For thc improvement or purpose described in Section 3, there is hereby appropriated the sum of $450,000, to be funded through the provision of a zero interest loan through the New Jersey Department of Community Affairs Urban and Rural Centers Unsafe Building Demolition Bond Loan Program. No down payment is required pursuant to N.J.S.A. 40A:2-11© as this bond ordinance authorizes obligations solely for a purpose described in N.J.S.A. 40A:2-7(d) as more fully explained in Section 6(e) of this ordinance. Section 2. in order to finance thc cost of the improvement or purpose not covered by application of the down payment, negotiable bonds are hereby authorized to be issued in the principal amount of $450,000 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 the financing of which the bonds are to be issued is for the demolition of carious unsafe buildings and structures in the Borough, as shown on and set forth in a list of project sites on file in the office of the Clerk, which plans are hereby approved, including all work and materials necessary therefore and incidental thereto. (b) The estimated maximum amount of bonds or notes to be issued for the improvement or purpose is as stated in Section 2 hereof. NO. 01-47 PAGE_ 2 (c) The estimated cost of the improvement or purpose is equal to the amount of the appropriation herein made theretbre. Section 4. All bond anticipation notes issucd hereunder shall mature at such times as may be detemfined by the chicf financial officer; provided that no note shall ~nature 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 chief financial officer shall determine all matters in connection with notes issued pursuant to this ordinance, and the chief financial officer's signature upon the notes shall be conclusive evidence as to all such determinations. All ootes issued hereunder may be renewed from time to time subject to the provisions of N.J.S.A. 40A:2-8(a). The chief financial officer is hereby authorized to sell part or all of thc notes from time to time at public or private sale and to deliver them to the purchasers thereof upon receipt of payment for the purchases 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 of Carteret 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 shoxving 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 improvement or purpose described in Section 3 of this bond ordinance is not a current expense. It is an improvement or purpose that the Borough may lawfully undertake as a general improvement, and no part of the cost 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 ordinance, is 15 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 NO. 01-47 PAGE 3 thereof has been filed in the office of the Director of Local Government Services in the Department of Community Afl'airs of the State of New Jersey. Such statement shows that the gross debt of the Borough as defined in the Local Bond Law is increased by the autlaorization of the bonds and notes provided in this bind ordinance by $450,000, and the obligations authorized herein will be within all debt limitations prescribed by that Law. (d) An aggrcgate amount not exceeding $90,000 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 purpose or improvement. (e) This bond ordinance authorizes obligations of the Borough solely for a purpose described in N.J.S.A. 40A:2-7(d). This purpose is in the public interest and is for the health, welfare, convenience or betterment of the inhabitants of the Borough. The amounts to be expended for this purpose pursuant to this bond ordinance are not unreasonable or exorbitant, and the issuance of the obligations authorized by this bond ordinance will not materially impair the credit of the Borough or substantially reduce its ability to pay punctually the principal of and the interest on its debts and to supply other essential public improvements and services. The Local Finance Board, in the Division of Local Government Services of the Department of Community Affairs of the State of New Jersey has heretofore made a determination to this effect and has caused its consent to be endorsed upon a certified copy of this bond ordinance as passed upon first reading. Section 7. Any grant moneys received for the purpose 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 ordinance. The amount of obligations authorized but not issued hereunder shall be reduced to the extent that such funds are so used. Section 8. The Chief Financial Officer of the Borough is hereby authorized to prepare and to update from time to time as necessary a financial 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 NO. 01-47 I! PAGE 4 II Borough and to amend such undertaking form time to time in connection with any change in law, or interpretation thereof, provided such undertaking is and contimtes to be, in thc opinion of a nationally recognized bond counsel, consistent with the requirements of thc Rule. In the event that the Borough fails to comply with its undertaking, the Borough shall not be liable for any monetary damages, and thc remedy shall be limited to specific performance of the undertaking. Section 9. 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 bind ordinance. The obligations shall be direct, unlimited obligations of thc 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 10. This bond ordinance shall take effect 20 days after the first publication thereof after final adoption, as provided by the Local Bond Law. DO NOT USE SPACE BELOW THIS LINE RECORD OF COUNCIL VOTE par COUNCILMAN COUNCILMAN IYESl NO I NV IA.mi OUINONES ORO X - Indicate Vote AB - Absent N - Not Voting XOR - Indicates Vote to Overrule Veto Adopted on first reading of the Council of the Borough of Carteret, N.J., on November 1, 2001 Adopted on second reading after hearing on D~*eomhor 20 ~ 7'fie1 ' -1 MUNIC~A'L CLtRK