HomeMy Public PortalAboutr 02:280No. 02-280 Date of Adoptio~02
RESOLUTION AUTHORIZING THE ISSUANCE OF NOT
EXCEEDING $3,000,000 TAX ANTICIPATION NOTES OF
2002 OF THE BOROUGH OF CARTERET, IN THE COUNTY
OF MIDDLESEX, NEW JERSEY.
BE IT RESOLVED BY THE BOROUGH COUNCIL OF THE BOROUGH OF
CARTEl{ET, IN THE COUNTY OF MIDDLESEX, NEW JERSEY (not less than the
majority of the full membership of the governing body) AS FOLLOWS:
Section 1. In anticipation of the collection of taxes
during the current fiscal year, there are hereby authorized to be
issued tax anticipation notes of the BorouEhofCm~, each to be
known as "Tax Anticipation Note of 2002," in amounts not exceeding
$3,000,000. The proceeds of such notes shall be applied only to
purposes provided for in the budget or for which taxes are levied
for the current year.
Section 2. The following certificate has been prepared by
the Borough of Carteret and is filed in the office of the Borough
Clerk:
CERTIFICATE WITH P~ESPECT TO TAX ANTICIPATION NOTES
I, Chief Financial Officer of the Borough of Carteret, in the
County of Middlesex, New Jersey HEREBY CERTIFY as follows:
1. The gross borrowing power in respect to tax anticipation
notes for the fiscal year of 2002, being 30 percent of the tax levy
for all purposes of the fiscal year of 2001, plus 30 percent of the
amount of miscellaneous revenues realized in cash during the fiscal
year of 2001, is $13,096,048.82.
2. The amount of notes outstanding in anticipation of the
collection of taxes of the fiscal year of 2002, except such notes
as will be renewed by or paid from the proceeds of the notes to be
issued, is $0.
3. The net borrowing power, being the excess of the first
over the second of the two above amounts, is $13,096,048.82.
4. This certificate is made with respect to $3,000,000 Tax
Anticipation Notes of 2002 about to be authorized by the Borough
Council of the Borough of Carteret.
IN WITNESS WHEREOF, I have hereunto set my hand this__day
of , 2002.
Chief Financial Officer
NO. 02-280 P^GE 2 Of 4
Section 3. The following matters in connection with the
notes are hereby determined:
(a) All 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 120 days following the end of the
fiscal year.
(b) All notes issued hereunder shall bear interest at such
rate or rates as may be determined by the chief financial officer.
(c) All notes shall be in the form prescribed by the Local
Budget Law and otherwise as determined by the chief financial
officer and such officer's signature upon the notes shall be
conclusive as to such determination;
(d) Notes issued hereunder may be renewed from time to time,
provided, however, that no renewal note shall be issued later than
the last day of the fiscal year.
(e) All notes shall be executed by the Mayor and the Chief
Financial Officer and attested by the Borough Clerk.
Section 4. The chief financial officer is authorized and
directed to determine all matters in connection with the notes not
determined by this or by a subsequent resolution and such officer's
signature upon the notes shall be conclusive as to such
determination.
Section 5. The chief financial officer is hereby
authorized to sell the notes from time to time at public or private
sale in such amounts as such officer may determine at not less than
par and to deliver them from time to time to the purchasers thereof
upon receipt of payment of the purchase price plus accrued interest
from their dates to the date of delivery thereof and payment
therefor.
Section 6. Any instrument issued pursuant to this
resolution shall be a general obligation of the Borough, and 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.
NO. 02-280 PAGE 3 o[ 4
Section 7. The chief financial officer is authorized and
is directed to report in writing to the Borough Council at the
meeting next succeeding the date when any sale or delivery of the
notes pursuant to this resolution is made, such report to include
the amount, the description, the interest rate and the maturity of
the notes sold, the price obtained and the name of the purchaser.
Section 8. The chief financial officer, in connection with
other professionals of the Borough acting under [his] [her]
direction, is hereby authorized to prepare and to update from time
to time as necessary a financial disclosure document for the
Borough, as it may be so updated from time to time, to be
distributed in connection with the sale of obligations of the
Borough. The chief financial officer is hereby authorized to
execute such disclosure document on behalf of the Borough.
Section 9. (a) Solely for purposes of complying with Rule
15c2-12 of the Securities and Exchange Commission (the "Rule"), and
provided that an issue of notes authorized by this resolution is
not exempt from the Rule and provided that an issue of notes is not
exempt from the following requirements in accordance with paragraph
(d) of the Rule, for so long as an issue of notes of the Issuer
remains outstanding (other than an issue of notes which has been
wholly defeased), the Borough shall provide in a timely manner to
each nationally recognized municipal securities information
repository ("National Repositories") or to the Municipal Securities
Rulemaking Board, and to the appropriate State information
depository, if any, ("State Depository," and together with the
National Repositories, the "Repositories") notice of the following
events with respect to an issue of notes, if material (herein
"Material Events"):
(1) Principal and interest payment delinquencies;
(2) Non-payment related defaults;
(3) Unscheduled draws on debt service reserves
reflecting financial difficulties;
(4) Unscheduled draws on credit enhancements reflecting
financial difficulties;
(5) Substitution of credit or liquidity providers, or
their failure to perform;
(6) Adverse tax opinions or events affecting the
tax-exempt status of the security;
(7) Modifications to rights of security holders;
(8) Bond calls;
(9) Defeasances;
(10) Release, substitution, or sale of property securing
repayment of the securities; and
(11) Rating changes.
~0. 02-280 p^GE4 of 4
(b) The covenants and undertakings contained in this Section
are made for the benefit of the holders or beneficial owners of the
notes issued under this resolution.
(c) The chief financial officer shall determine, in
consultation with Bond Counsel, the application of the Rule or the
exemption from the Rule for each issue of notes prior to their
offering. Such officer is hereby authorized to enter into written
contracts or undertaking to implement this resolution and is
further authorized to amend such contracts or undertakings as
needed to comply with the Rule or upon the advise of Bond Counsel.
(d) In the event that the Borough fails to comply with this
resolution or the written contract or undertaking, the Borough
shall not be liable for monetary damages, remedy of the holders or
beneficial owners of the notes being hereby specifically limited to
specific performance of the covenants contained in this resolution
or the written contract or undertaking.
Section 10. This resolution shall take effect immediately.
The foregoing resolution was adopted by the following vote:
Adopted this 18th day of July, 2002
and certified as a true copy of the
original on July 19, 2002.
KATHLEEN M. BARNEY, RMC/CMC
Municipal Clerk
RECORD OF COUNCIL VOTE
COUNCILMAN YES NO NV A.B. COUNCILMAN YES NO NV A.B.
PARISI X gA~*ra~'~ X
_ BPIYMAN X S~HAYDA X
w[(36; X SOStIU,4SKI X
X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Ovcrruie Veto c.p
Adopted at a meeting of the Municipal Council ,~July 18. 2002
CLERK ~ ~