Title
A Resolution of the Lexington-Fayette Urban County Government authorizing the advertisement for bids and the distribution of a preliminary official statement for the purchase of the principal amount of its (I) various purpose General Obligation Bonds, Series 2017A, in an aggregate principal amount of $34,790,000 (which amount may be increased by an amount of up to ten percent (10%)); and (II) Taxable General Obligation Pension Funding Refunding Bonds, Series 2017B, in an aggregate principal amount of $22,560,000 (which amount may be increased by an amount of up to ten percent (10%)). [Dept. of Finance, O'Mara]
Summary
Authorization for a Resolution advertising for bids for as well as the distribution of a Preliminary Official Statement for the purchase of the principal amount of its Various Purpose General Obligation Bonds, series 2017A in an aggregate principal amount of $34,790,000 which May be increased by an amount up to 10% and the Taxable General Obligation Pension Refunding Bonds, Series 2017B in an aggregate principal amount of $22,560,000. Required component of the Issuance of the FY 2018 GO 2017A CIP Bonds and the Taxable GO Pension refunding Bonds 2017B. The bond issuances will result in debt service. There is no fiscal impact for this Resolution. (L0874-17)(O’Mara)
Budgetary Implications [select]: NO
Advance Document Review:
Law: {Yes/, Completed by [Attorney Barberie, Date]}
Risk Management: {Select Yes/No, Completed by [Official, Date]}
Fully Budgeted [select]: Yes
Account Number:
This Fiscal Year Impact: $0
Annual Impact:
Project:
Activity:
Budget Reference:
Current Balance:
Body
WHEREAS, the Lexington-Fayette Urban County Government has previously determined the necessity of financing the acquisition of various projects for Dept.s within the Lexington-Fayette Urban County Government, including, but not limited to, (i) the construction, installation, renovations, repairs and upgrades and equipping of Fire stations, software system upgrades, safety operations and other safety related projects, new Firetrucks, new Police equipment, new Police cars, Rd. resurfacing, Rd. maintenance, Rd. upgrades, street scapes and sidewalk improvements, renovations, repairs and upgrades related to public buildings, renovations, repairs and upgrades related to park projects, and various other improvements within Dept.s of the Lexington-Fayette Urban County Government, and (II) providing funding for a program to preserve and manage agricultural, rural and natural lands, including the purchase of conservation easements or development rights, (collectively, the “Series 2017A Project”); and
WHEREAS, the Lexington-Fayette Urban County Government, heretofore issued its $35,825,000 Taxable General Obligation Pension Funding Bonds, Series 2010D, currently outstanding in the principal amount of $26,470,000, (the "Prior Bonds,") the proceeds of which were used for the purpose of funding certain unfunded liabilities to the Policemen's and Firefighters' Retirement Fund of the Lexington-Fayette Urban County Government (the "Series 2010D Project"), based on computations set forth in actuarial reports dated July 1, 2008, as supplemented, prepared by Cavanaugh Macdonald Consulting LLC (the "Actuaries"); and
WHEREAS, the Lexington-Fayette Urban County Government has determined to proceed with the advertisement of bids for the purchase of its Various Purpose General Obligation Bonds, Series 2017A, in one or more subseries in the principal of $34,790,000, (which amount May be increased by an amount of up to ten percent (10%)) (the “Series 2017A Bonds”), in order to (i) provide funds to finance a portion of the Series 2017A Project, and (II) pay the costs of issuing the Series 2017A Bonds; and
WHEREAS, the Lexington-Fayette Urban County Government has determined that due to the present conditions of the municipal market it is advantageous and in the best interests of the Lexington-Fayette Urban County Government for the purpose of realizing interest cost savings (as determined by the Commissioner of Finance) to proceed with the advertisement of bids for the purchase of its Taxable General Obligation Pension Funding Refunding Bonds, Series 2017B (the "Series 2017B Bonds" and together with the Series 2017A Bonds, the "Series 2017 Bonds") in one or more subseries, in a principal amount of $22,560,000 (which amount May be increased by an amount of up to ten percent (10%)), in order to provide funds to (i) refund all or a portion of the Prior Bonds and (II) pay the costs of issuing the Series 2017B Bonds;
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT (THE "URBAN COUNTY COUNCIL"):
SECTION 1. The Lexington-Fayette Urban County Government, an Urban County Government and political subdiv. of the Commonwealth of Kentucky, shall issue its Series 2017A Bonds in one or more subseries in the principal amount of $34,790,000, (which amount May be increased by an amount of up to ten percent (10%)), in order to provide funds for (i) the Series 2017A Project as identified above; and (II) pay the costs of issuing the Series 2017A Bonds. The Lexington-Fayette Urban County Government shall also issue its Series 2017B Bonds in a principal amount of $22,560,000 (which amount May be increased by an amount of up to ten percent (10%)) (provided that the refunding of the Prior Bonds shall result in debt service savings for the Lexington-Fayette Urban County Government as determined by the Commissioner of Finance and the financial advisor to the Lexington-Fayette Urban County Government) in order to provide funds to (i) refund all or a portion of the Prior Bonds and (II) pay the costs of issuing the Series 2017B Bonds.
SECTION 2. The Lexington-Fayette Urban County Government shall comply with the requirements of KRS Chapter 66 by advertising for bids for the purchase of the Series 2017 Bonds. The Mayor, the Clerk of the Urban County Council, the Commissioner of Finance and/or Chief Administrative Officer are hereby authorized to prepare such instruments and to distribute such information as shall be necessary to accomplish the foregoing, including preparation of a Preliminary Official Statement (the "Preliminary Official Statement") which Preliminary Official Statement is to be deemed final in accordance with Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"). In order to enable prospective purchasers to submit bids for the purchase of the Series 2017 Bonds, the Lexington-Fayette Urban County Government hereby covenants and agrees that it will execute, comply with and carry out all of the provisions of a continuing disclosure certificate (the "Continuing Disclosure Certificate") in connection with the issuance of the Series 2017 Bonds. Failure to comply with any such provisions of the Continuing Disclosure Certificate shall not constitute a default on the Series 2017 Bonds; however, any holder of the Series 2017 Bonds, including the beneficial owners of the Series 2017 Bonds, May take such action as May be necessary and appropriate, including seeking specific performance, to cause the Lexington-Fayette Urban County Government to comply with its obligations under the Continuing Disclosure Certificate. Further, the Mayor is hereby authorized and directed on behalf of the Lexington-Fayette Urban County Government to execute all such instruments as shall be necessary to accomplish all of the foregoing.
SECTION 3. Such proposals shall be received and reviewed by the Commissioner of Finance and shall be acted upon by the Mayor on that same day in accordance with the terms of the bond Ordinance with respect to the Series 2017 Bonds. The Lexington-Fayette Urban County Government hereby approves the "Notice of Bond Sale," substantially in the form attached hereto to be published as required by law.
SECTION 4. The Mayor shall, in a certificate of award accepting the successful bid for the Series 2017A Bonds and the Series 2017B Bonds (collectively, the "Certificate of Award"), determine the exact principal amount of Series 2017 Bonds to be issued, the subseries designations of the Series 2017 Bonds, the rate or rates of interest which said Series 2017 Bonds shall bear, redemption provisions and the interest rate or rates on said Series 2017 Bonds shall be automatically fixed at the rate or rates set out in the successful bid accepted by said Certificate of Award. The proceeds of the sale of the Series 2017A Bonds shall be applied to the costs of the Series 2017A Project and paying the costs of issuance of the Series 2017A Bonds, and shall be expended as provided in the bond Ordinance authorizing the Series 2017A Bonds. The proceeds of the sale of the Series 2017B Bonds shall be applied to the costs of the refunding of all or a portion of the Prior Bonds and paying the costs of issuance of the Series 2017B Bonds, and shall be expended as provided in the bond Ordinance authorizing the Series 2017B Bonds
SECTION 5. In the event that no bid shall be accepted for the purchase of the Series 2017 Bonds, bids May again be solicited for the purchase of the Series 2017 Bonds at a future date and hour at the discretion of the Mayor and the Commissioner of Finance, without the necessity of further authorization by the Urban County Council of the Lexington-Fayette Urban County Government.
SECTION 6. All Resolutions or orders or parts thereof, if any, in conflict with the provisions of this Resolution, are to the extent of such conflict, hereby repealed.
SECTION 7. This Resolution shall become effective upon the date of its passage.
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INTRODUCED AND GIVEN FIRST READING AND SECOND READING AND ADOPTED at a duly convened meeting of Urban County Council of the Lexington-Fayette Urban County Government held on the _____ day of _________, 2017, signed by the Mayor, attested under seal by the Clerk of Urban County Council, and ordered to be published, filed and indexed as provided by law.
ATTEST:
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Martha Allen Urban County Council Clerk |