HomeMy WebLinkAboutRes 1998-09RESOLUTION NO,1998-09
RESOLUTION GRANTING PRELIMINARY APPROVAL TO NEGOTIATE THE SALE
OF NOT TO EXCEED $1,100,000 AGGREGATE PRINCIPAL AMOUNT OF TOWN OF
FOUNTAIN HILLS STREET AND HIGHWAY USER REVENUE REFUNDING BONDS,
SERIES 1998;PROVIDING CERTAIN TERMS,COVENANTS AND CONDITIONS
CONCERNING THE BONDS;AND RATIFYING ALL ACTIONS TAKEN WITH
RESPECT TO THE BONDS AND THE PREPARATION AND DISSEMINATION OF A
PRELIMINARY OFFICIAL STATEMENT.
WHEREAS,theTown of Fountain Hills,Arizona(the "Town"),hasissuedandhas
currently outstandingStreetandHighwayUserRevenueBondsandwishestorefundsuchbonds;and
WHEREAS,theMayorandCouncildesiretonegotiatethepurchase of theTown's
refunding bondswith Peacock,Hislop,Staley&Given,Inc.(the "Underwriter");and
WHEREAS,bythisresolutiontheMayorandCouncilwillgiveapprovaltoproceed
withthe negotiations withtheUnderwriterto establish thetimeandthetermsandconditions ofthesale
ofthebondsandwill authorize theexecution,issuanceandsale ofthebondstothe Underwriter;
NOW,THEREFORE,IT IS RESOLVED BY THE MAYOR AND COUNCIL
OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,as Mows:
'w Section 1,Authorization.This Mayor and Council hereby authorizes to be
issuedandsoldanissue of refundingbondsinan aggregate principalamount of nottoexceed
$1,100,000.Thebondsso authorized shallbedesignated Town of FountainHills,Arizona,Streetand
HighwayUserRevenueRefundingBonds,Series1998(the"Bonds"),withsuchother designation as
maybenecessarytoidentifytheBonds.TheBondsshallbeissuedandsoldand delivered against
payment thereforbytheUnderwriterinaccordancewiththe provisions of aresolutiontobeadoptedby
thisMayorandCouncilatalaterdategranting final approval of thetermsandconditions of thesale of
theBonds(the"AuthorizingResolution")andinaccordancewiththeprovisions of abondpurchase
agreement tobeenteredintobetweentheTownandtheUnderwriter(the"Purchase Agreement").
Section2.Terms.TheBondswillbedatedsuchdateasmaybesetforthinthe
PurchaseAgreementandwillbearinterestfromtheirdatetothematurity of each oftheBondsatarate
orrates of interest of nottoexceedtenpercent(10%)perannum.Theactualterms of theBonds,
including the principal amounts,maturitydates,interestratesandanyredemptionprovisionswillbeset
forthintheAuthorizingResolutionandinthePurchaseAgreement.
InterestontheBondsshallbepaid semiannually oneachJuly1andJanuary1during
theterm of theBonds.TheBondsshallbeinthe denomination of $5,000eachorintegral multiples
thereof,and shall be fully registeredasto principal and interest.TheBonds shall bein fully registered
form.
,Section 3.Proposalsfor Registrar Services.ThisMayorandCouncilhereby
x^s directsthatproposals of costbereceivedfortheservices of theregistrar,transferagentandpaying
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agent.Withtheadvice oftheUnderwriter,theTown'sManagerorTreasurerwilldeterminethelowest
and bestcostwhichwillconstitutethis Council's selection of registrar,transfer agent and paying agent.
The registrar,transfer agentandpayingagentwillbe designated intheAuthorizing Resolution.
Section4.Official Statement.The preparation of a preliminary oflBcial statement
ishereby authorized,andtheTown'sManageror Treasurer isauthorizedtodeem "final"for all
purposes of Section 240.15c2-12,General Rulesand Regulations,Securities ExchangeAct of 1934
(the "Rule"),such preliminary oflBcial statement.Thedeemed "final"preliminary oflBcial statement,
after approval bytheTown'sManageror Treasurer,ishereby authorized tobe distributed bythe
Underwriter.The Town willcausea final oflBcial statement(the "OflBcial Statement")in substantially
theform of the preliminary oflBcial statement referred toabovetobe prepared and distributed withthe
Bonds upon initial issuance.
Section 5,Compliance with the Tax and Laws and Continuing Disclosure.
The Town covenantstotakeallactionsnecessarytoassurethattheinterestpaidontheBondsisatthe
time of issuance and remains thereafterexcludedfromgrossincomefor federal incometax purposes.
Theofficersandagents of the Town arehereby authorized and directed totakesuch actions andto
givesuch certifications asmaybe appropriate to assure compliance withthe aforesaid covenant.
TheTown'sManageror Treasurer orapartner of GustRosenfeld P.L.C.,bondcounsel
totheTown,is authorized toexecuteand file onbehalf oftheTown information reporting returns and
to file ordeliversuchotherinformationasmaybe required bySection149(e)of the Internal Revenue
Code of 1986,asamended(the"Code").
Section 6.Qualified Tax-Exempt Obligations.The Town hasdesignatedits
Bondsas "qualified tax-exempt obligations"forpurposes of Section265(b)(3)ofthe Internal Revenue
Code of 1986,asamended(the"Code").TheTownhereby certifies thatit reasonably anticipates that
the aggregate amount of qualified tax-exempt obligations (asdefinedinSection265(b)(3)(B)of the
Codewhichwillbeissuedforor by the Town in calendar year1998willnotexceed $10,000,000.
Section 7.Severability.If anysection,paragraph,subdivision,sentence,clause
or phrase of this resolution isforany reason heldtobe illegal or unenforceable,such decision willnot
affectthevalidity ofthe remaining portions ofthis resolution.TheMayorandCouncilhereby declare
thattheywouldhaveadoptedthisresolutionandeachandeveryother section,paragraph,subdivision,
sentence,clauseorphrase hereof andauthorizedtheissuance oftheBonds pursuant hereto irrespective
ofthe fact thatanyoneormore sections,paragraphs,subdivisions,sentences,clauses or phrases ofthis
resolutionmaybeheld illegal,invalidor unenforceable.
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PASSED,ADOPTED AND APPROVED bytheMayorand Council oftheTownof
Fountain Hills,Arizona,on February 5,1998.
Mayor
ATTEST:
Clerk
APPROVED AS TO FORM:
CdftTTT ^-(2~J=±
Bond Counsel
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