HomeMy Public PortalAboutOrd. 20-01No. 20 °1 of the
lgoroug4 of &r#eret, N J,
Councilman Presents the following Ordinance Seconded by Councilman
BOND ORDINANCE PROVIDING FOR THE CONSTRUCTION OF A
PERFORMING ARTS CENTER IN AND BY THE BOROUGH OF CARTE RET,
IN THE COUNTY OF MIDDLESEX, NEW JERSEY, APPROPRIATING
$5,000,000 THEREFOR AND AUTHORIZING THE ISSUANCE OF
$4,750,000 BONDS OR NOTES OF THE BOROUGH TO
FINANCE PART OF THE COST THEREOF
BE IT ORDAINED BY THE BOROUGH COUNCIL OF THE BOROUGH OF
CARTE RE IN THE COUNTY OF MIDDLESEX, NEW JERSEY (not less than two -
11i rds of all members thereof affirmatively concurring) AS FOLLOWS:
Section 1. The improvement described in Section 3(a) of this bond ordinance is
hereby authorized to be undertaken by the Borough of Carteret, in the County of
Middlesex, New Jersey (the "Borough ") as a general improvement. For the improvement
or purpose described in Section 3(a), there is hereby appropriated the sum of $5,000,000,
including the sum of $250,000 as the down payment required by the Local Bond Law.
The down payment is now available by virtue of provision for down payment or for
capital improvement purposes in one or more previously adopted budgets.
Section 2. Hr order to finance the 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 $4,750,000 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 the construction of a performing arts
center at the corner of Cooke and Washington Avenues in the Borough, including all
work and materials necessary therefor and incidental thereto and including all related
costs and expenditures necessary therefor and incidental thereto.
(b) The estimated maximum amount of bonds or bond anticipation
notes to be issued for the improvement or purpose is as stated in Section 2 hereof,
together with the (i) $3,095,238 in bonds and bond anticipation notes authorized to be
issued pursuant to Bond Ordinance 419 -3, finally adopted on March 7, 2019, (ii)
$2,904,760 in bonds and bond anticipation notes authorized to be issued pursuant to
Bond Ordinance #19 -6, finally March 21, 2019 and (iii) $4,712,000 in bonds and bond
anticipation notes authorized to be issued pursuant to Bond Ordinance #19 -20, finally
September 19, 2019.
(c) The estimated cost of the improvement or purpose is equal to
the amount of the appropriation herein made therefor, together with the (i) $3,250,000
appropriated by Bond Ordinance #19 -3, finally adopted on March 7, 2019, (ii)
$3,050,000 appropriated by Bond Ordinance 419 -6, finally adopted on March 21, 2019
and (iii) $4,960,000 appropriated by Bond Ordinance #19 -20, finally adopted on
September 19, 2019.
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 bond anticipation
note shall mature later than one year from its date, unless such bond anticipation notes are
permitted to mature at such later date in accordance nvith applicable law. The bond
anticipation 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 bond anticipation notes issued pursuant to this bond
ordinance, and the chief financial officer's signature upon the bond anticipation notes
shall be conclusive evidence as to all such determinations. All bond anticipation notes
issued hereunder may be renewed front time to time subject to the provisions of the Local
No. 20 -1
PAGE 2
Bond Law or other applicable law. The chief financial officer is hereby authorized to sell
part or all of the bond anticipation 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 bond anticipation 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 bond anticipation notes sold, the price
obtained and the name of the purchaser.
Section S. The Borough hereby certifies that it has adopted a capital budget or a
temporary capital budget, as applicable. The capital or temporary capital budget of the
Borough is hereby amended to conform with the provisions of this bond ordinance to the
extent of any inconsistency herewith. To the extent that the purposes authorized herein
are inconsistent with the adopted capital or temporary capital budget, a revised capital or
temporary capital budget has been filed with the Division of Local Government Services.
Section 6. The following additional matters are hereby determined, declared,
recited and stated:
(a) The improvement or purpose described in Section 3(a) 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 benefitted 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 20 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 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 $4,750,000, and the obligations authorized herein will be within all debt
limitations prescribed by the Local Bond Law.
(d) An aggregate amount not exceeding $750,000 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.
Section 7. The Borough hereby declares the intent of the Borough to issue bonds
or bond anticipation notes in the amount authorized in Section 2 of this bond ordinance
and to use the proceeds to pay or reimburse expenditures for the costs of the purposes
described in Section 3(a) 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 purpose described in Section 3(a)
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 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 time 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 15e2 -12 of the Securities and
Exchange Conmrission (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
connection 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
No. 20 -1
PAGE 3
undertaking, the Borough shall not be liable for any monetary damages, and the remedy
shall be limited to specific performance of the undertaking.
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.
DO NOT USE SPACE BELOW THIS LINE
RECORD OR COUNCIL VOTE
COUNCILMAN
YES
NO
NV
A.B.
COUNCILMAN
YES
NO
NV
A.B.
BELLINO
X
JOHAL
X
_
DIAZ
X
KRUM
X
DIMASCIO
X
NAPLES
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, N.I., on
January 6,
2019
Adopted on second rending after hear)ug on
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APPROV D BY
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AFFIDAVIT OF PUBLICATION
The following is a true copy of an 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:
January 10, 2020
Notary blic of New Jersey
Sworn and subscribed before
me this - '�'' dav of � c
MARGARET K RLISSO
NOTARY PUBLIC OF NEW JERSEY
My Commission Expires April 4, 2020
Acting Municipal Clerk
AFFIDAVIT OF PUBLICATION
The following is a true copy of an 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:
February 15, 2020
Notary lic of New Jersey
Sworn and subscribed before
me this ( '5 of _A A)
MARGARET M. RUSSO
NOTARY PUBLIC OF NEW JERSEY
My Cornmission Expires April 4, 2020