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 Various Purpose General Obligation Bonds, Series 2021A, in an aggregate principal amount of $28,500,000 (which amount may be increased by an amount of up to ten percent (10%) or decreased by an unlimited amount). [Dept. of Finance, Hensley]
Summary
Authorization to approve advertisement of bids, as well as distribution of a Preliminary Official Statement, for the purchase of the principal amount of its Various Purpose General Obligation Bonds, Series 2021A in an aggregate Principle amount not to exceed $28,500,000 (which May be increased by 10%). This Fiscal Year Impact: The cost is included in the issuance of the bonds per the Ordinance authorizing the sale of the bonds. (L1139-21) (Hensley)
Budgetary Implications: Yes, the cost is included in the issuance of the bonds per the Ordinance authorizing the sale of the bonds.
Advance Document Review:
Law: Yes, Completed by David Barberie, 10/29/21
Risk Management: No
Fully Budgeted: Yes
Account Number: 1101-141401-1680-78402
This Fiscal Year Impact: The cost is included in the issuance of the bonds per the Ordinance authorizing the sale of the bonds.
Annual Impact: $0
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 departments within the Lexington-Fayette Urban County Government, including, but not limited to (i) repairs and upgrades and equipping of fire stations, safety operations, new firetrucks and other fire safety related projects, new police equipment, new police cars, road resurfacing, road maintenance, road upgrades, streetscapes and sidewalk improvements, pedestrian safety improvements, renovations, repairs and upgrades related to public buildings, park playground equipment and various other improvements within departments of the Lexington-Fayette Urban County Government, (ii) providing funding for a program to preserve and manage agricultural, rural and natural lands, including the purchase of conservation easements or development rights, Government (collectively, the “Series 2021A Project”); 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 2021A, in one or more subseries on a tax-exempt or taxable basis in the principal amount of $28,500,000, (which amount may be increased by an amount of up to ten percent (10%) or decreased by an unlimited amount) (the “Series 2021A Bonds”), in order to (i) provide funds to finance a portion of the Series 2021A Project, and (ii) pay the costs of issuing the Series 2021A Bonds; and
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 subdivision of the Commonwealth of Kentucky, shall issue its Series 2021A Bonds in one or more subseries on a tax-exempt or taxable basis in the principal amount of $28,500,000 (which amount may be increased by an amount of up to ten percent (10%) or decreased by an unlimited amount), in order to provide funds for (i) the Series 2021A Project as identified above; and (ii) pay the costs of issuing the Series 2021A Bonds.
SECTION 2. The Lexington-Fayette Urban County Government shall comply with the requirements of Chapter 66 and 424 of the Kentucky Revised Statutes by advertising for bids for the purchase of the Series 2021A Bonds. Advertisement may be publicized by newspaper publication in The Courier-Journal, published in Louisville, Kentucky; the Lexington Herald-Leader, published in Lexington, Kentucky; and The Bond Buyer, published in New York City, New York; or, in the alternative, by posting a notice of sale to a nationally recognized electronic bidding system. 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 2021A 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 2021A Bonds. Failure to comply with any such provisions of the Continuing Disclosure Certificate shall not constitute a default on the Series 2021A Bonds; however, any holder of the Series 2021A Bonds, including the beneficial owners of the Series 2021A 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 2021A 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 2021A Bonds (the “Certificate of Award”), determine the exact principal amount of Series 2021A Bonds to be issued, the subseries designations of the Series 2021A Bonds, the rate or rates of interest which said Series 2021A Bonds shall bear, redemption provisions and the interest rate or rates on said Series 2021A 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 2021A Bonds shall be applied to the costs of the Series 2021A Project and paying the costs of issuance of the Series 2021A Bonds, and shall be expended as provided in the bond ordinance authorizing the Series 2021A Bonds.
SECTION 5. In the event that no bid shall be accepted for the purchase of the Series 2021A Bonds, bids may again be solicited for the purchase of the Series 2021A 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 _________________, 2021, 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.
LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT
By:
ATTEST:
By:
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Abigail Allan Urban County Council Clerk |
CERTIFICATE
I, the undersigned, Urban County Council Clerk of the Lexington-Fayette Urban County Government, do hereby certify that the foregoing Resolution is a true and complete copy of a certain Resolution duly adopted by the Urban County Council of said Lexington-Fayette Urban County Government at a lawfully convened meeting of the Urban County Council of the Lexington-Fayette Urban County Government held on ________________, 2021, signed by the Mayor and now in full force and effect, all as appears from the official records of the Lexington-Fayette Urban County Government in my possession and under my control.
I do hereby further certify that said Resolution has not been amended, modified, superseded or repealed and that same remains in full force and effect as of the date of this Certificate.
WITNESS my hand as of this ____ day of ________________, 2021.
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Urban County Council Clerk |
[SEAL]
CERTIFICATE
I do hereby certify that the title to this enactment contains an accurate synopsis of the contents thereof and may be used to satisfy the reading and publication requirements of law.
DINSMORE & SHOHL LLP
By:
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John C. Merchant, Esq. Attorney at Law |
EXHIBIT A
FORM OF NOTICE OF BOND SALE
Notice is hereby given that electronic bids will be received by the Commissioner of Finance of the Lexington-Fayette Urban County Government until 11:00 a.m., E.T. on ____________, ___________________, 2021 with respect to the principal amount of approximately $28,500,000 of Various Purpose General Obligation Bonds, Series 2021A, (the “Series 2021A Bonds”); (or at such later time and date announced by noon, E.T. on the day preceding the Bid Opening via the Parity® system or the Thomson Municipal News wire). The Series 2021A Bonds will be dated their date of initial delivery, being fully registered bonds in denominations in multiples of $5,000 (within the same maturity). The Series 2021A Bonds mature as to principal in varying amounts on August 1 in varying amounts in each of the years 2022 through 2041. Electronic bids may be submitted via BiDCOMP™/PARITY™, in the manner described below.
Electronic bids must be submitted through BiDCOMP/Parity®, as described in the Official Terms and Conditions of Bond Sale related to the Series 2021A Bonds which are included in the Preliminary Official Statement contained in the Preliminary Official Statement, available from the undersigned, at www.idealprospectus.com <http://www.idealprospectus.com>, or from the Financial Advisor: Robert W. Baird & Co. Incorporated, 500 West Jefferson Street, Louisville, Kentucky 40202, Attention Mr. Chip Sutherland (502) 588-8462. No other form of bid or provider of electronic bidding services will be accepted. For further information regarding BiDCOMP/Parity®, potential bidders may contact BiDCOMP/Parity®, telephone (877) 588-5030.
The Preliminary Official Statement has been deemed “final” by the Corporation within the meaning of Securities and Exchange Commission Rule 15c2-12. For further information regarding PARITY®, potential bidders may contact PARITY®, telephone (800) 850-7422. In order to assist bidders in complying with the continuing disclosure requirements of the Rule, the Lexington-Fayette Urban County Government will undertake in a Continuing Disclosure Certificate to be delivered at closing, to provide to the applicable repositories annual reports and notices of certain material events with respect to the Series 2021A Bonds. Reference is made to the Official Terms and Conditions of Bond Sale contained in the Preliminary Official Statement for further details and bidding conditions.
Sale of the Series 2021A Bonds subject to the approving legal opinion of Dinsmore & Shohl LLP, Bond Counsel, Cincinnati, Ohio. The Series 2021A Bonds have not been designated as “qualified tax-exempt obligations” within the meaning of §265(b)(3) of the Internal Revenue Code of 1986, as amended.
The Lexington-Fayette Urban County Government reserves the right to reject any and all bids or to waive informality.
LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT
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By: |
/s/ Linda Gorton |
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Title: |
Mayor |