HomeMy WebLinkAboutRes 1991-23(Wav)
RESOLUTION NO. 1991 - 23
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE
OF TOWN OF FOUNTAIN HILLS, ARIZONA STREET AND
HIGHWAY USER REVENUE BONDS, SERIES 1991, IN THE
TOTAL AGGREGATE PRINCIPAL AMOUNT OF $1,200,000
AND DECLARING AN EMERGENCY
WHEREAS, all requirements have been met in calling and
conducting the special street and highway user revenue bond elec-
tion held in the Town of Fountain Hills, Arizona (the "Town "), on
March 12, 1991, relative to the issuance of an aggregate of
$1,200,000 principal amount of street and highway user revenue
bonds of the Town; and
WHEREAS, the Mayor and Common Council of the Town have
heretofore canvassed the returns of the election; and
WHEREAS, the Mayor and Common Council of the Town now
wish to provide for the issuance and sale of $1,200,000 aggregate
principal amount of Town of Fountain Hills, Arizona Street and
Highway User Revenue Bonds, Series 1991, which bonds will consti-
tute the first and only installment of an aggregate voted issue of
$1,200,000 principal amount voted at the election held on March
12, 1991;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, THAT:
Section 1. The principal amount of $1,200,000 Town of
Fountain Hills, Arizona Street and Highway User Revenue Bonds,
Series 1991 (the "Bonds "), are hereby authorized to be issued and
sold, which Bonds shall represent the first and only installment
of an aggregate voted issue of $1,200,000 principal amount approved
at an election held on March 12, 1991.
Section 2. (a) The Bonds shall be dated May 1, 1991,
shall be numbered, by maturity, from 1 consecutively upwards, shall
be fully registered bonds without coupons, shall be in the denomi-
nation of $5,000 or any whole multiple thereof, shall bear inter-
est from the most recent January 1 or July 1 to which interest has
been paid or duly provided for or, if no interest has been paid or
duly provided for, from their date, which interest shall be payable
on January 1, 1992, and semiannually thereafter on July 1 and
January 1 of each year during the term of each of the Bonds (each
an "interest payment date "). The principal of the Bonds shall be
payable upon presentation and surrender thereof at the principal
corporate trust office of First Interstate Bank of Arizona, N.A.,
in Phoenix, Arizona, as Bond Registrar and Paying Agent. Interest
on the Bonds shall be payable by check or draft mailed to the
registered owners thereof, as shown on the registration books for
this series maintained by the Bond Registrar and Paying Agent at
the address appearing therein at the close of business on the 15th
day of the calendar month next preceding that interest payment date
(each a "regular record date "). Any interest which is not timely
paid or duly provided for shall cease to be payable to the
registered owner thereof (or of one or more predecessor Bonds) as
of the regular record date and shall be payable to.the registered
owner thereof (or of one or more predecessor Bonds) at the close
of business on a special record date for the payment of that
overdue interest. The special record date shall be fixed by the
Bond Registrar and Paying Agent whenever moneys become available
for payment of the overdue interest, and notice of the special
record date shall be given to the registered owners of the Bonds
not less than ten (10) days prior thereto. The principal of and
interest on the Bonds shall be payable in lawful money of the
United States of America, the Bonds to mature on July 1 of each of
the years and in the amounts as follows:
Year Amount
1992
$25,000.00
1993
25,000.00
1994
25,000.00
1995
25,000.00
1996
50,000.00
1997
50,000.00
1998
50,000.00
1999
50,000.00
2000
50,000.00
2001
50,000.00
2002
75,000.00
2003
75,000.00
2004
75,000.00
2005
75,000.00
2006
75,000.00
2007
100,000.00
2008
100,000.00
2009
100,000.00
2010
125,000.00
(b) The Bonds shall bear interest at the rate or rates
fixed by the accepted bid but in no event shall the interest rate
on the Bonds exceed twelve percent (12 %) per annum.
(c) First Interstate Bank of Arizona, N.A. is hereby
appointed as Bond Registrar and Paying Agent, and the Mayor and the
Clerk of the Town are hereby authorized and directed to enter into
a contract with said bank covering such services. The Bond
Registrar shall maintain the books of the Town for the registration
of ownership of each Bond. A Bond may be transferred on the
registration books upon delivery of the Bond to the Bond Registrar,
accompanied by a written instrument of transfer in form and with
guaranty of signature satisfactory to the Bond Registrar, duly
executed by the registered owner of the Bond to be transferred or
his attorney -in -fact or legal representative, containing written
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instructions as to the details of the transfer of such Bond. No
transfer of any Bond shall be effective until entered on the
registration books.
(d) In all cases upon the transfer of a Bond, the Bond
Registrar shall enter the transfer of ownership in the registration
books and shall authenticate and deliver in the name of the
transferee or transferees a new fully registered Bond or Bonds of
the denominations of $5,000 or any whole multiple thereof (except
that no Bond shall be issued which relates to more than a single
principal maturity) for the aggregate principal amount which the
registered owner is entitled to receive at the earliest practicable
time in accordance with the provisions of this Section. The Town
or the Bond Registrar shall charge the registered owner of such
Bond, for every such transfer of a Bond, an amount sufficient to
reimburse them for any transfer fee, tax or other governmental
charge required to be paid with respect to such transfer, and may
require that such transfer fee, tax or governmental charge be paid
before any such new Bond shall be delivered.
(e) The Town and the Bond Registrar shall not be
required (i) to issue or transfer any Bonds during a period
beginning with the opening of business on the fifteenth (15th)
business day next preceding either any interest payment date or any
date of selection of Bonds to be redeemed and ending with the close
of business on the interest payment date or day on which the
applicable notice of redemption is given or (ii) to transfer any
Bonds which have been selected or called for redemption.
(f) (i) Bonds maturing on or before July 1, 2000, are
not subject to call for redemption prior to maturity. Bonds
maturing on or after July 1, 2001, are subject to call for
redemption prior to maturity in whole or in part on July 1, 2000,
or on any interest payment date thereafter, by the payment of the
principal amount of each Bond called for redemption plus accrued
interest to the date fixed for redemption plus a premium payable
from any source lawfully available therefor, the premium to be
computed as follows:
Redemption Dates Premium
July 1, 2000 and January 1, 2001 1 %
July 1, 2001 and January 1, 2002
July 1, 2002 and thereafter, without premium
(ii) Not more than forty -five ( 4 5 ) nor less than
thirty (30) days before any redemption date, the Bond Registrar
shall cause a notice of any such redemption to be mailed by
registered or certified mail to the registered owner of each Bond
to be redeemed at the address shown on the registration books
maintained by the Bond Registrar. Failure to mail notice to any
registered owner of Bonds shall not affect the validity of the
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(bwl proceeding for the redemption of Bonds with respect to the
registered owners of other Bonds.
Section 3. The Bonds shall be executed on behalf of the
Town by the Mayor and attested by the Clerk by the manual or
facsimile signatures of such officers and by the imprinting of a
facsimile of the seal of the Town thereon, and such officials are
hereby authorized and directed to execute the Bonds as aforesaid.
Section 4. The Bonds shall be in substantially the
following form, allowing those executing the Bonds to make the
insertions and deletions necessary to conform the Bonds to this
Resolution and the Notice Inviting Proposals For Purchase Of Bonds:
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(FORM OF BOND)
REGISTERED REGISTERED
(FORM OF FACE OF BOND)
UNITED STATES OF AMERICA
STATE OF ARIZONA COUNTY OF MARICOPA
TOWN OF FOUNTAIN HILLS, ARIZONA
STREET AND HIGHWAY USER REVENUE BOND,
SERIES 1991
Interest Rate: Maturity Date: Dated as of: CUSIP:
. . . . % per annum . . . . . . . . . . . . . . May 1, 1991 . . . . . . . .
REGISTERED OWNER: .........................
PRINCIPAL AMOUNT: . . . . . . . . . . . . . . . . . . . . . . . . .
THE TOWN OF FOUNTAIN HILLS, ARIZONA, (hereinafter
referred to as the "Town "), for value received, hereby promises to
pay to the Registered Owner named above, or registered assigns,
solely from the revenues hereinafter specified, the Principal
Amount specified above on the aforesaid Maturity Date, and to pay
interest on the principal amount at the aforesaid Interest Rate on
January 1, 1992 and on July 1 and January 1 of each year thereafter
(each an "interest payment date ") to maturity or redemption prior
to maturity. The principal of this Bond is payable upon
presentation and surrender hereof at the principal corporate trust
office of First Interstate Bank of Arizona, N.A., in Phoenix,
Arizona, as Bond Registrar and Paying Agent. Interest on this Bond
is payable by check or draft mailed to the registered owner hereof,
as shown on the registration books for this series maintained by
the Bond Registrar and Paying Agent, at the address appearing
therein at the close of business on the 15th day of the calendar
month next preceding that interest payment date (each a "regular
record date ") . Any interest which is not timely paid or duly
provided for shall cease to be payable to the registered owner
hereof (or of one or more predecessor Bonds) as of the regular
record date, and shall be payable to the registered owner hereof
(or of one or more predecessor Bonds) at the close of business on
a special record date for the payment of that overdue interest.
The special record date shall be fixed by the Bond Registrar and
Paying Agent whenever moneys become available for payment of the
overdue interest, and notice of the special record date shall be
given to registered owners of Bonds not less than 10 days prior
thereto. The principal and interest on this Bond is payable in
lawful money of the United States of America, on the respective
dates when principal and interest become due.
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Ca'-' REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF. THOSE PROVISIONS SHALL
HAVE THE SAME EFFECT FOR ALL PURPOSES AS IF SET FORTH ON THE FACE
HEREOF.
It is hereby certified, recited and declared that all
acts, conditions and things required to be done, to exist and be
performed precedent to and in the issuance of this Bond in order
to make it a legal, valid and binding obligation of the Town in
accordance with its terms, have been done, do exist and have been
performed in regular and due time, form and manner as required by
law.
IN WITNESS WHEREOF, the TOWN OF FOUNTAIN HILLS, ARIZONA,
has caused this Bond to be executed in the name of the Town by the
facsimile signature of its Mayor and attested by the facsimile
signature of its Clerk, and has caused the facsimile of the seal
of the Town to be reproduced hereon.
TOWN OF FOUNTAIN HILLS, ARIZONA
By (Facsimile)
.... ...............................
Mayor
(SEAL]
ATTEST:
(Facsimile)
...............................
Clerk
C
(FORM OF CERTIFICATE OF AUTHENTICATION)
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within -
mentioned Resolution and is one of the Town of Fountain Hills,
Arizona Street and Highway User Revenue Bonds, Series 1991.
Dateof Authentication: .... ...............................
FIRST INTERSTATE BANK OF ARIZONA,
N.A., as Bond Registrar
By. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Authorized Representative
(FORM OF REVERSE OF BOND)
This Bond is one of a series of bonds (the "Bonds") in
the aggregate principal amount of $1,200,000 issued by the Town of
Fountain Hills, Arizona (the "Town "), pursuant to Resolution No.
1991 - 23 (the "Resolution ") adopted on May 2, 1991, which Bonds
represent the first and only installment of an aggregate voted
issue of $1,200,000 principal amount voted at an election held on
March 12, 1991, for the purpose of providing funds to aid in the
improvement of streets and highways within the Town, under and in
full compliance with the Constitution and laws of the State of
Arizona, including specifically Title 48, Chapter 4, Article 5,
Arizona Revised Statutes, and any amendments thereto.
The Town pledges for annual debt service all revenues
received by the Town from taxes, fees, charges and other moneys
collected by the State of Arizona and returned to the Town for
street and highway purposes pursuant to Title 28, Chapter 9,
Article 4, Arizona Revised Statutes, as amended, except as to
revenues which have been specifically allocated and pledged for the
payment of any other indebtedness of the Town, as authorized by the
provisions of Title 48, Chapter 4, Article 5, Arizona Revised
Statutes, and all amendments thereto. This Bond and the interest
hereon are enforceable exclusively from the pledged revenues above -
recited, and no registered owner hereof shall have the right to
compel any exercise of the taxing power of the Town within the
meaning of any Constitutional or statutory limitation, unless upon
resolution submitted to the qualified electors of the Town at a
special bond election, the Town is authorized to pledge its full
faith and credit for the payment of this Bond. At the date of this
Bond, such election has neither been held, called nor contemplated.
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The Town and the Bond Registrar shall not be required (a)
to issue or transfer any Bonds during a period beginning with the
opening of business on the 15th business day next preceding either
any interest payment date or any date of selection of Bonds to be
redeemed and ending with the close of business on the interest
payment date or day on which the applicable notice of redemption
is given or (b) to transfer any Bonds which have been selected or
called for redemption.
Bonds maturing on or before July 1, 2000, are not subject
to call for redemption prior to maturity. Bonds maturing on or
after July 1, 2001, are subject to call for redemption prior to
maturity in whole or in part on July 1, 2000, or on any interest
payment date thereafter, by the payment of the principal amount of
each Bond called for redemption plus accrued interest to the date
fixed for redemption plus a premium payable from any source
lawfully available therefor, the premium to be computed as follows:
Redemption Dates _ Premium
July 1, 2000 and January 1, 2001 1
July 1, 2001 and January 1, 2002
July 1, 2002 and thereafter without premium
Not more than 45 nor less than 30 days before any
redemption date, the Bond Registrar shall cause a notice of any
such redemption to be mailed by registered or certified mail to
the registered owner of each Bond to be redeemed at the address
shown on the registration books maintained by the Bond Registrar.
Failure to mail notice to any registered owner of Bonds shall not
affect the validity of the proceeding for the redemption of Bonds
with respect to the registered owners of other Bonds.
The Bond Registrar shall maintain the books of the Town
for the registration of ownership of each Bond as provided in the
Resolution.
This Bond may be transferred on the registration books
upon delivery hereof to the Bond Registrar, accompanied by a
written instrument of transfer in form and with guaranty of
signature satisfactory to the Bond Registrar, duly executed by the
registered owner of this Bond or his attorney -in -fact or legal
representative, containing written instructions as to the details
of the transfer. No transfer of this Bond shall be effective
until entered on the registration books.
In all cases upon the transfer of a Bond, the Bond
Registrar shall enter the transfer of ownership in the registration
books and shall authenticate and deliver in the name of the
transferee or transferees a new fully registered Bond or Bonds of
the denominations of $5,000 or any whole multiple thereof (except
that no Bond shall be issued which relates to more than a single
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( 4W)
(4avi principal maturity) for the aggregate principal amount which the
registered owner is entitled to receive at the earliest practicable
time in accordance with the provisions of the Resolution. The Town
or the Bond Registrar shall charge the registered owner of such
Bond, for every such transfer of a Bond, an amount sufficient to
reimburse them for any transfer fee, tax, or governmental charge
required to be paid with respect to such transfer, and may require
that such transfer fee, tax, or governmental charge be paid before
any such new Bond shall be delivered.
The Town and the Bond Registrar shall not be required (a)
to issue or transfer any Bonds during a period beginning with the
opening of business on the 15th business day next preceding either
any interest payment date or any date of selection of Bonds to be
redeemed and ending with the close of business on the interest
payment date or day on which the applicable notice of redemption
is given or (b) to transfer any Bonds which have been selected or
called for redemption.
This Bond shall not be entitled to any security or
benefit under the Resolution or be valid or become obligatory for
any purpose until the certificate of authentication hereon shall
have been signed by the Bond Registrar.
(LEGAL OPINION)
E
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(FORM OF ASSIGNMENT)
Assignment
For value received, the undersigned hereby sells, assigns
and transfers unto . ............................... the within Bond
and irrevocably constitutes and appoints ........................
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
Dated: ..................... .... ...............................
Signature
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signature Guaranteed:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notice: The assignor's signature to
this assignment must corre-
spond with the name as it
appears upon the face of
the within Bond in every
particular, without altera-
tion or any change whatever.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Commercial Bank, Trust
Company or Member of a
National Securities Exchange)
The following abbreviations, when used in the inscription
on the face of the within Bond, shall be construed as though they
were written out in full according to applicable laws or
regulations.
TEN COM - as
TEN ENT - as
JT TEN - as
vi.
UNIF GIFT MIN ACT -
tenants in common
tenants by the entireties
joint tenants with right of sur-
vorship and not as tenants in common
Custodian ........
(Cust) (Minor)
under Uniform Gifts to Minors Act ....................
(State)
Additional abbreviations may also be used though not
included in the above list.
ALL FEES AND COSTS OF TRANSFER SHALL
BE PAID BY THE TRANSFEROR
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Section 5. Upon receipt of payment for the Bonds when
the Bonds have been duly sold by the Town, the Town Manager of the
Town shall set aside and deposit the proceeds received from such
sale, including any premium but exclusive of accrued interest, in
a separate fund to be used solely to aid in the improvement of the
streets and highways within the Town. The moneys in the special
fund shall not be commingled with any other moneys in the hands of
the Town Manager of the Town but shall be deposited in a separate
bank account in the name of the Town.
Section 6. (a) Subject to the provisions allowing for
the issuance of parity bonds or other evidences of indebtedness,
the Bonds shall be secured by a prior and paramount lien on and by
a first pledge of taxes, fees, charges or other moneys collected
by the State of Arizona and returned to the Town for street and
highway purposes pursuant to Title 28, Chapter 9, Article 4,
Arizona Revised Statutes, as amended, except such revenues which
have been specifically allocated and pledged for the payment of any
other indebtedness of the Town, as authorized by the provisions of
Title 48, Chapter 4, Article 5, Arizona Revised Statutes and all
amendments thereto. All of the Bonds shall be equally and ratably
secured without priority by reason of number, date, sale,
execution, authentication or delivery, by such lien upon the
aforesaid revenues as in this Resolution provided. No bonds or
other evidences of indebtedness payable in whole or in part,
directly or indirectly from the aforesaid revenues, shall be issued
by the Town nor any charge of any kind created thereon having any
priority over the Bonds herein authorized to be issued with respect
to payment of principal or interest, except as hereinafter set
forth.
(b) During each year that the indebtedness hereby autho-
rized continues, the Town Manager of the Town shall set aside in
a separate fund, moneys returned to the Town pursuant to Title 28,
Chapter 9, Article 4, Arizona Revised Statutes, as amended, as the
same is received during each of such years from the State of
Arizona, an amount sufficient to pay the principal of and interest
on the Bonds herein authorized and all bonds on a parity with the
Bonds.
(c) If at the end of any fiscal year of the Town during
which the Bonds are outstanding the monies subject to pledge for
payment of the Bonds for such fiscal year is less than two and one -
half (2�) times the highest annual principal and interest to be
paid on the outstanding Bonds prior to their maturity, in each
month during the next succeeding fiscal year the Town Manager of
the Town shall set aside in a separate fund from monies returned
to the Town pursuant to Title 28, Chapter 9, Article 4, Arizona
Revised Statutes, as amended, as the same are received and after
providing for the requirements in Section 6(b), (i) one - twelfth
(1/12) of the lesser of (A) 10 percent of the outstanding principal
amount of the Bonds on such date, (B) 125 percent of the average
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fiscal, annual principal and interest to be paid on the outstanding
Bonds until their maturity and (C) the maximum principal and
interest to be paid on the outstanding Bonds in any fiscal year
prior to maturity (ii) less the amount earned on the amount
deposited in such fund in the immediately preceding month, as a
debt service reserve fund for the Bonds. If the monies subject to
pledge for payment of the Bonds for any two consecutive succeeding
fiscal years is equal to or greater than two and one -half (2k)
times the highest annual principal and interest to be paid on the
outstanding Bonds prior to their maturity in each such year, the
amount so deposited may be withdrawn from such fund and applied by
the Town for any other legally available purpose. The amounts in
such fund are to be used, and are hereby pledged, to pay the Bonds
and any additional parity bonds issued pursuant to Section 7 if the
amounts deposited pursuant to Section 6(b) are insufficient for
such purpose.
Section 7. (a) The Town, for itself, its successors and
assigns, covenants and agrees with the registered owners of the
Bonds herein authorized that so long as any of the Bonds remain
outstanding and the principal thereof or interest thereon is un-
paid or unprovided for, any additional parity bonds or other
evidences of indebtedness payable from the pledged revenues shall
be issued only when:
(i) All of the payments of principal and interest
on the then outstanding Bonds are current, and all
amounts required to be deposited pursuant to Section 6
(c) have been so deposited,
(ii) The moneys subject to pledge for payment of
the Bonds for the preceding twelve -month period exceeds
by two and one half (2J) times the highest annual
principal and interest to be paid on the outstanding
Bonds and the bonds to be issued during any one -year
period;
(iii) The bonds or other evidences of indebtedness
sought to be issued shall mature and the principal and
interest shall be payable at the same times as the
outstanding Bonds and the resolution authorizing such
bonds or other evidences of indebtedness shall provide
the same pledges, payments and deposits for such bonds
or other evidences of indebtedness as provided for the
Bonds in Section 6 hereof; and
(iv) The proceeds from the sale of the bonds or
other evidences of indebtedness shall be used for the
improvement, construction, reconstruction and maintenance
of the municipal streets and highways, including the
acquisition of rights -of -way.
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L �
(b) In the event that the bonds or other evidences of
indebtedness sought to be issued are variable rate bonds or other
evidences of indebtedness described in Title 48, Article 5, Section
48 -688, Subsection C. Arizona Revised Statutes, as amended, then
in that event any repayment to be made to a credit facility under
a reimbursement agreement shall be subordinate to the rights of the
registered owners of the Bonds to the pledged revenues and in
determining the maximum annual debt service on the bonds or other
evidences of indebtedness sought to be issued, the principal
requirements on debt supported by a credit facility shall be
determined in accordance with the principal retirement schedule
specified in the proceedings authorizing the issuance of such
parity bonds or other parity evidences of indebtedness or in the
amortization schedule set forth in the credit facility, whichever
schedule produces the highest maximum debt service amount. The
interest rate requirement is to be calculated using the maximum
interest rate allowed in the proceedings authorizing the issuance
of such parity bonds or other parity evidences of indebtedness or
the maximum interest rate set forth in the credit facility.
Section 8. On behalf of the Town, the Mayor and Common
Council of the Town hereby covenant with the registered owners of
the Bonds that the Town shall comply with every law or regulation
or procedural guideline heretofore or hereafter enacted or
promulgated with respect to Title 28, Chapter 9, Articles 4 and 5,
Arizona Revised Statutes, as amended, including, without
limitation, compliance with all procedural guidelines established
by the Arizona Department of Transportation and the standards
established by the technical advisory committee created pursuant
to Title 28, Chapter 9, Article 4, Arizona Revised Statutes, as
amended, with respect to submitting of needs data and all
information concerning the status of transportation systems for
all modes to the Arizona Department of Transportation in accordance
with Title 28, Chapter 9, Article 5, Arizona Revised Statutes, as
amended. In addition to the foregoing, the Mayor and Common Council
of the Town also covenant with the registered owners of the Bonds
that the Town shall budget and expend local revenues, as defined
in Article IX, Section 20, Constitution of Arizona, for street and
highway purposes other than distributions from the Arizona Highway
Users Revenue Fund or the Local Transportation Assistance Fund in
an amount equal to at least the average amount of local taxes,
other than distributions from the Arizona Highway Users Revenue
Fund or the Local Transportation Assistance Fund budgeted and
expended for street and highway purposes for any four of the
immediately preceding five (5) fiscal years.
Section 9. All of the provisions of this Resolution
shall constitute a contract between the Town and the registered
owner or owners of the Bonds, and no amendments, alterations or
modifications of this Resolution shall be made which will in any
manner impair, impede or lessen the rights of the registered owners
of the Bonds then outstanding.
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Section In consideration of the purchase and
ct n 10 . ( a )
acceptance of the Bonds by the registered owners thereof from time
to time, and as authorized by Arizona Revised Statutes, Title 35,
Chapter 3, Article 7, and in consideration of retaining the
exemption from federal income taxes of the interest income on the
Bonds, the Town covenants and agrees, and the appropriate officials
of the Town are hereby directed, to take all action required, or
to refrain from taking any action prohibited, by the Internal
Revenue Code of 1986, as amended (the "Code "), including, without
limitation (i) to meet the arbitrage rebate provisions of the Code
( Section 148 (f ) of the Code) , (ii) to make the required information
filing pursuant to the Code (Section 149(e) of the Code) , (iii) to
assume that the Bonds are not "hedge bonds" as provided by this
Code (Section 149(g) of the Code) and (iv) to do all other things
necessary to preserve the tax exempt status of the interest income
on the Bonds.
(b) At least 75% of the "available construction
proceeds" of the Bonds are to be used for "construction
expenditures" with respect to property which is to be owned by the
Town as provided in the Code. At least 10% of the available
construction proceeds of such amount of the Bonds shall be spent
for the governmental purposes of the issue within the six -month
period beginning on the date the Bonds are issued, at least 45% of
such proceeds shall be spent for such purposes within the one -year
period beginning on such date, at least 75% of such proceeds shall
be spent for such purposes within the 18 -month period beginning on
such date and at least 100% of such proceeds shall be spent for
such purposes within the two -year period beginning on such date.
At least 100% of the available construction proceeds of such amount
of the Bonds shall be treated as spent for the governmental
purposes of the Bonds within the two -year period beginning on the
date the Bonds are issued if such requirement is met within the
three -year period beginning on such date and such requirement would
have been met within such two -year period but for a reasonable
retainage (not exceeding five percent of the available construction
proceeds of such amount of the Bonds). The Town hereby elects the
application of the option to pay a penalty in lieu of rebate to the
United States pursuant to Section 14 8 (f) (4 ) ( C) (vii) (I) of the Code
with regard to the Bonds. The term available construction proceeds
shall not include earnings on any reserve fund for the Bonds
pursuant to Section 148 (f) (4) (C) (vi) (IV) of the Code.
(c) The Town hereby designates the Bonds as quali-
fied tax - exempt obligations within the meaning of and pursuant to
the provisions of 265(b) of the Code, and the Town represents and
warrants that the reasonably anticipated amount of qualified tax -
exempt obligations (other than private activity bonds) which shall
be issued by the Town during the calendar year 1989 shall not
exceed $10,000,000.
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(d) At no time or times shall any of the proceeds
of the Bonds or other moneys of the Town be used directly or
indirectly in any manner which would cause any Bond to be an
"arbitrage bond" within the meaning of Section 148(a) of the Code.
Section 11. The immediate operation of the provisions
of this Resolution is necessary for the preservation of the public
peace, health and safety; an emergency is hereby declared to exist;
and this Resolution will be in full force and effect from and after
its passage and approval by the Mayor and Council of the Town.
This Resolution is hereby exempt from the referendum provisions of
the Constitution and laws of the State of Arizona.
PASSED, ADOPTED AND APPROVED by the Mayor and Common
Council of the Town of Fountain Hills, Arizona, on May 2, 1991.
May r, Town of Fountain Hills,
Ari na
ATTEST:
.. ...............................
Clerk, Town of Fountain Hills,
Arizona
APPROVED AS TO FORM:
. -.'b ..
P ........... .
O'Connor, Cavanagh, Anderson,
Westover, Killingsworth &
Beshears, P.A., Bond Counsel
15
RESOLUTION NO. 1991 - 24
RESOLUTION AWARDING CONTRACT FOR THE PURCHASE
OF $1,200,000 PRINCIPAL AMOUNT OF TOWN OF
FOUNTAIN HILLS, ARIZONA STREET AND HIGHWAY USER
REVENUE BONDS, SERIES 1991, AND DECLARING AN
EMERGENCY
WHEREAS, sealed proposals have been received pursuant to
a Notice Inviting Proposals For Purchase Of Bonds (the "Notice ")
duly published as provided by law, for the sale of $1,200,000 of
Town of Fountain Hills, Arizona Street and Highway User Revenue
Bonds, Series 1991 (the "Bonds "); and
WHEREAS, the proposal of Dean Witter Reynolds, Inc. has
been determined to result in the lowest net interest rate to the
Town of Fountain Hills, Arizona (the "Town ") and, in all respects,
complies with the terms of said Notice;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, THAT:
Section 1. The proposal of Dean Witter Reynolds, Inc.
for the purchase of the Bonds be and hereby is accepted; and the
Bonds be and hereby are awarded to Dean Witter Reynolds, Inc. (the
"Purchaser ").
Section
2. In accordance with
the terms of the proposal
submitted by the
Purchaser, the Bonds of the various maturities
shall bear interest from May 1, 1991, at
the following rates:
Maturity Date
Principal
Interest Rate
(July 1)
Amount
Per Annum
1992
$25,000.00
9.700%
1993
25,000.00
9.700
1994
25,000.00
9.700
1995
25,000.00
9.700
1996
50,000.00
9.700
1997
50,000.00
9.700
1998
50,000.00
7.875
1999
50,000.00
6.800
2000
50,000.00
6.900
2001
50,000.00
7.000
2002
75,000.00
7.100
2003
75,000.00
7.200
2004
75,000.00
7.250
2005
75,000.00
7.300
2006
75,000.00
7.400
2007
100,000.00
7.400
2008
100,000.00
7.500
2009
100,000.00
7.500
2010
125,000.00
7.500
17
Section 3. All actions heretofore taken relating to the
authorization, issuance and sale of the Bonds are hereby ratified
and affirmed.
Section 4. The Mayor, the Clerk or the Town Manager of
the Town, or any of them, are hereby authorized and directed to
deliver the Bonds to the Purchaser upon receipt of payment
therefor.
Section 5. The Clerk or the Town Manager of the Town be
and hereby is authorized and directed to return forthwith the good
faith checks of all unsuccessful bidders.
Section 6. The immediate operation of this Resolution
is necessary for the preservation of the public health and welfare;
an emergency is hereby declared to exist; and this Resolution shall
be in full force and effect from and after its passage and approval
by the Mayor and Common Council of the Town as required by law.
This Resolution is hereby exempt from the referendum provisions of
the Constitution and laws of the State of Arizona.
PASSED, ADOPTED AND APPROVED by the Mayor and Common
Council of the Town of Fountain Hills, Arizona, on May 2, 1991.
May.r, Town of Fountain Hills,
Ari a
ATTEST:
...Y......` .... .. ..... ......
Clerk, Town of Fountain Hills,
Arizona
APPROVED AS TO FORM:
.............................
O'Connor, Cavanagh, Anderson,
Westover, Killingsworth &
Beshears, P.A., Bond Counsel