HomeMy WebLinkAboutRes 1998-33(RESOLUTION NO.1998-33
RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF
$1,075,000 IN AGGREGATE PRINCIPAL AMOUNT OF TOWN OF FOUNTAIN HILLS
STREET AND HIGHWAY USER REVENUE REFUNDING BONDS,SERIES 1998,TO
REFUND BONDS PREVIOUSLY ISSUED AND OUTSTANDING;APPROVING AND
AUTHORIZING THE EXECUTION OF A DEPOSITORY TRUST AGREEMENT FOR
THE SAFEKEEPING AND HANDLING OF SECURITIES AND MONEYS TO BE USED
TO PAY THE BONDS BEING REFUNDED;APPROVING AND AUTHORIZING THE
EXECUTION OF AN AGREEMENT FOR THE SERVICES OF A BOND REGISTRAR,
TRANSFER AGENT AND PAYING AGENT;APPROVING AND AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH THE PURCHASER OF THE BONDS;
APPROVING THE DISSEMINATION OF AN OFFICIAL STATEMENT IN
CONNECTION WITH THE ISSUANCE AND SALE OF THE BONDS;PROVIDING
CERTAIN TERMS,COVENANTS AND PROVISIONS REGARDING THE BONDS
AUTHORIZING THE EXECUTION OF A CONTINUING DISCLOSURE CERTIFICATE;
AND DECLARING AN EMERGENCY
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WHEREAS,itisproposedthatthefollowingstreetandhighwayuserrevenuebonds
(the "Bonds BeingRefunded"),inanaggregateprincipalamount of $950,000aretoberefundedand
paidatmaturityorcalledfor redemption priortomaturityas hereinafter setforth:
Redemption
Maturity Principal or Payment
Date Amount Date Interest Redemption
Issue Designation (July1)Being Refunded (July1)Rate Premium
Streetand Highway User Revenue 1999 $50,000 1999 7.000%N/A
Bonds,Series 1991 2000 50,000 2000 7.000%N/A
2001 50,000 2000 7.000%1.0%
2002 75,000 2000 7.100%1.0%
2003 75,000 2000 7.200%1.0%
2004 75,000 2000 7.250%1.0%
2005 75,000 2000 7.300%1.0%
2006 75,000 2000 7.400%1.0%
2007 100,000 2000 7.400%1.0%
2008 100,000 2000 7.500%1.0%
2009 100,000 2000 7.500%1.0%
2010 125,000 2000 7.500%1.0%
;and
WHEREAS,theissuance of therefundingbonds authorized hereby(the "Bonds")
andtheapplication of thenet proceeds thereof torefundtheBondsBeing Refunded isnecessaryand
advisableandisinthebestinterests of theTown of Fountain Hills,Arizona (the"Town"),because
theBondscanbesoldtobearinterestrateslowerthantheratesontheBondsBeingRefundedand
thisreductionininterestrate,together withtheability of the Town to restructure itsdebtinamore
efficientmanner,willresultinsubstantialdebtservicesavingstotheTown;and
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WHEREAS,theTownhasreceivedanofferforthepurchase of theBondspursuant
toaBondPurchaseAgreement,datedas of August6,1998(the"PurchaseAgreement"),from
Peacock,Hislop,Staley&Given,Inc.;and
WHEREAS,allacts,conditionsandthingsrequiredbytheconstitutionandlaws of
theState of Arizonatohappen,existandbe performed precedent toandintheenactment of this
resolutionhavehappened,existandhavebeenperformedassorequiredinordertomakethis
resolutionavalidand binding instrument forthesecurity of theBonds;and
WHEREAS,bythis resolution the Mayor andCouncilwillauthorizetheissuance
andsale of theBonds,beingtheTown of FountainHills,Arizona,StreetandHighwayUserRevenue
Refunding Bonds,Series1998;
NOW THEREFORE,BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE TOWN OF FOUNTAIN HILLS,ARIZONA:
Section 1,Authorization.Forthepurpose of providing funds torefundthe
BondsBeingRefunded,theBondsareherebyauthorizedtobeissuedandsoldintheaggregate
principalamount of $1,075,000.
Section2.Terms.TheBondswillbedatedas of August1,1998,uponoriginal
issuance.InterestonsuchBondsshallbepayableJanuary1andJuly1 of eachyearcommencing
January 1,1999 (eachan "interest payment date").The Bonds willbeinthe denomination of $5,000
eachorintegralmultiplesthereof.TheBondswillbeissuedonlyinfullyregisteredform.The
Bonds will mature on July 1intheyearsandinthe amounts andshall bear interest attheratesas
follows:
Maturity
Date
(July 1)
Principal
Amount Interest Rate
Maturity
Date
(July 1)
Principal
Amount Interest Rate
1999 $30,000 3.750%2005 $90,000 4.300%
2000 70,000 3.750%2006 85,000 4.400%
2001 70,000 4.000%2007 110,000 4.500%
2002 95,000 4.000%2008 110,000 4.500%
2003 90,000 4.100%2009 105,000 4.600%
2004 90,000 4.200%2010 130,000 4.625%
The principal of the Bonds shallbe payable upon presentation and surrender thereof
atthe designated corporate trustoffice of the Registrar and Paying Agent (assuchtermsare
definedhereafter)inPhoenix,Arizona.InterestontheBondsshallbepayablebycheckmailedon
or prior to each interest payment datetothe registered owner thereof as shown onthe registration
booksforthe Bonds atthe address appearing therein atthe close of business onthe fifteenth (15th)
day of the calendar month next preceding that interest payment date(the "Record Date")or,upon
two(2)days prior writtenrequest of a registered owner of atleast $1,000,000 inprincipalamount
of Bonds outstanding oronany Bonds held bya securities depository,all payments of interest and,
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ifadequateprovisionforsurrenderismade,principalshallbepaidbywiretransferinimmediately
available fundstoan account within the United States designated by such registered owner.
The Bonds shall have such additional termsand provisions asaresetforthinthe
Purchase Agreement andintheform of BondattachedheretoasExhibit A.whichisapart of this
resolution.
The Bonds and all bonds authorized and issued or hereafter issued on diparipassau
basis with the Bonds shallbe payable fromandare secured bya pledge of all revenues receivedby
the Town fromtaxes,fees,charges and other moneys collected bytheState of Arizona and
returned tothe Town for street and highway purposes pursuant tolaw,including particularly the
taxes,fees,charges and other moneys described in Section 3 of this resolution.
The Bonds shall not constitute a debt or general obligation of the Town within the
meaning of any constitutional or statutory debt limitation,norshall payment of theBondsor
interest thereon be enforceable out of any funds other than the revenues pledged to such payment,
norshallany bondholder have the right to compel any exercise of the taxing power of theTownto
make such payment.
Section 3,Security.Subject tothe provisionsallowing the issuance of "Parity
Bonds"as described in Section 6 of this resolution andthe rights of the owners of Parity Bonds
hereafter issued,the Bonds shall be payable fromandare secured bya prior and paramount lienon
andbyafirst pledge of revenues received bythe Town from highway usertaxes,including motor
vehiclefueltaxesandall other fees,charges and other moneys relating to registration,operation or
use of vehiclesonthe public highways orstreetsortofuelsoranyotherenergysourceusedforthe
propulsion of vehiclesonthe public highwaysorstreetscollectedbytheStateandreturnedtothe
Townpursuanttolaw,including the provisions of Title28,Chapter 18,Article2,ArizonaRevised
Statutes,as amended,subject alsotothe parity rightstosuch revenues of the owners of thebonds
heretofore refunded inthe event of any insufficiency inthe obligations purchased tomeetthe
requirements of such refunded bonds.All of theBondsand Parity Bondsshallbeequallyand
ratablysecured without priority byreason of number,date of bonds,sale,execution ordelivery,by
suchlienuponthe aforesaid revenues asinthis resolution provided.Nobondsorotherobligations
payableinwholeorinpart,directlyorindirectlyfromtheaforesaidrevenues,shallbeissuedby
theTownnoranycharge of anykindcreatedthereonhavinganypriorityovertheBondswith
respecttopayment of principalorinterest,exceptashereinaftersetforth.
DuringeachyearinwhichtheBondsareoutstandingand unprovided for,itwillbe
theduty of theTown Manager or Accounting Supervisortosetasideinaseparatefundmoneys
returned tothe Town pursuant to Title 28,Chapter 18,Article 2,Arizona Revised Statutes,as
amended,asthesameis received fromtheState,an amount sufficient topaythe principal of and
interest onthe Bonds and any Parity Bonds hereafter issued.
On behalf of theTown,theMayorandCouncilhereby covenant withtheowners of
anyoneormore of theBondsthattheTownwillcomplywitheverylaworregulationor
procedural guidelineheretoforeenactedorpromulgatedwithrespecttoTitle28,Chapter18,
Article2,Arizona Revised Statutes,asamended,including without limitation compliance withall
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proceduralguidelines established bytheArizonaStateDepartment of Transportationandthe
standardsestablishedbytheTechnicalAdvisoryCommittee of theArizonaStateDepartment of
Transportation with respect to submission of needs,dataandinformationconcerningthestatus of
transportationsystemsforallmodestotheArizonaStateDepartment of Transportationin
accordancewithSection 28-6545(B),Arizona RevisedStatutes.SolongastheTownisrequired
todoso pursuant to Title 28,Chapter 18,Article 2,Arizona Revised Statutes,the Town will
budget and expend local revenues as defined inArticleIX,Section 20,Arizona Constitution,for
streetandhighwaypurposesotherthandistributionsfromtheArizonaHighwayUserRevenue
FundortheLocal Transportation AssistanceFundinanamountatleastequaltotheaverage
amount of localtaxrevenuesotherthandistributionsfromtheArizonaHighwayUserRevenue
FundortheLocal Transportation Assistance Fund,budgetedandexpendedforstreetandhighway
purposesforanyfour of thefivefiscalyearsduringtheperiodcommencingwithfiscalyear 1981-
82and ending with fiscal year 1985-86.
TheBondsandanyParityBondshereafterissuedshallnotconstituteadebtorgeneral
obligation of theTownwithinthemeaning of anyconstitutionalorstatutorydebtlimitation,norshall
payment of theBondsorinterestthereonbeenforceableout of anyfundsotherthantherevenues
pledgedtosuchpayment,norshallanybondholderhavetherighttocompelanyexercise of the
taxing power of theTowntomakesuchpayment.
Section 4.Prior Redemption.TheBondsarenotsubjecttocallforredemption
priortotheirstated maturity dates.
Section 5.Form of Bonds.TheBondsshallbeinsubstantiallytheformsetforth
inExhibit A,attachedheretowhichisapart of thisresolution,withsuchnecessaryand appropriate
omissions,insertionsandvariationsasarepermittedorrequiredherebyandareapprovedbythose
officers executing the Bonds.Execution thereof by such officersshall constitute conclusive evidence
of such approval.
TheBondsmayhavenotations,legendsorendorsementsrequiredbylaw,securities
exchangeruleorusage.EachBondshallshowthedate of itsauthenticationandregistration.
Section 6.Parity Bonds.Foritself,itssuccessorsandassigns,theTown
covenantsandagreeswiththeowners of theBondsthatsolongasany of theBondsremain
outstandingandtheprincipal thereof orinterestthereonisunpaidorunprovidedfor,anyParity
Bonds payable fromthe pledged revenues shallbeissuedonlywhen:
A.All of the payments of principalandinterestonthethenoutstandingBonds
andany Parity Bonds then outstanding are current anddepositsarecurrent;
B.The revenues subject topledgefor payment of theBondsandanyParity
Bondsthenoutstandingforthe preceding twelve-month periodisequaltoatleast:(i)twoandone-
half (2Vi)timesthehighestannualprincipalandinteresttobepaidontheBondsandanyParity
Bonds then outstanding andthe bonds then proposed tobeissuedforadditionalParityBondsissued
priortothe payment of allamountsduewithrespecttotheBondsBeingRefundedand(ii)two(2)
timesthe highest principaland interest tobepaidontheoutstandingBonds,theoutstandingParity
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c BondsandtheadditionalParityBondstobeissuedforadditionalParityBondsissuedafterthe
payment of allamountsduewithrespecttotheBondsBeingRefunded;
C.Thebondsproposedtobeissuedshallmatureandtheprincipalandinterest
shallbepayableatthesametimeastheBonds;
D.Theproceedsfromthesale of thebondsproposedtobeissuedshallbeused
fortheimprovement,construction,reconstruction and maintenance of themunicipalstreetsand
highways,includingtheacquisition of rights-of-way ortorefundbondsissuedforthat purpose;and
E.Inthe event that Parity Bonds sought tobe issued are variable ratebonds
then in that event any repayment tobe made toa credit facility under a reimbursement agreement
shallbe subordinate tothe rights of the registered owners of the Parity Bonds tothepledged
revenues andin determining the maximum annual debtserviceonthe Parity Bonds soughttobe
issued,the principal requirements ondebts supported bya credit facilityshallbe determined in
accordance with the principal retirement schedule specified inthe proceedings authorizing the
issuance of such Parity Bonds orinthe amortization schedule set forth inthe credit facility,
whichever schedule produces the highest maximum annual debt service amount.The interest rate
requirement istobe calculated usingthe maximum interest rateallowedintheproceedings
authorizing the issuance of such Parity Bonds orthe maximum interest ratesetforthinthecredit
facility.
Section 7.Execution and Authentication of Bonds.The Bonds shall be
executedforandon behalf of theTownbytheMayor,countersignedbytheAccountingSupervisor
and attested bythe Town Clerk bytheirmanualorfacsimilesignaturesandtheTownsealwillbe
eitherphotographically,mechanicallyormanuallyimprinted,affixedorreproducedontheBonds.If
anofficer whose signatureisonaBondnolongerholdsthatofficeatthetimetheBondis
authenticated and registered,the Bond shall nevertheless bevalid.
ABondshallnotbevalidorbindinguntilauthenticatedbythemanualsignature of an
authorizedsignatory of theregistrar.Thesignature of theregistrarshallbeconclusiveevidencethat
the Bond has been authenticated and issued under this resolution.
Section 8,Mutilated,Lost or Destroyed Bonds.IncaseanyBondbecomes
mutilated,destroyed,lostorwrongfullytaken,theTownshallcausetobeexecutedanddelivereda
newBond of likedateandtenorinexchangeandsubstitutionforanduponthecancellation of such
mutilatedBondorinlieu of andinsubstitutionforsuchBonddestroyed,lostorwrongfullytaken,
upontheregisteredowner'spayingthe reasonable expenses andcharges of theTownin connection
therewith and,inthecase of the Bond destroyed,lost or wrongfully taken,filing with the Town
ManagerorAccountingSupervisorbytheregisteredownerevidencesatisfactorytotheTown
Manager or Accounting Supervisor thatsuchBondwas destroyed,lostor wrongfully taken,and
furnishingtheTownManagerorAccountingSupervisorwithasufficientindemnitybondpursuantto
§47-8405,Arizona Revised Statutes.
Section 9,Registrar andPaving Agent.NorwestBank Arizona,N.A.,is
appointed astheinitialbond registrar,transferagentandpayingagent (hereinafter referred toasthe
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"Registrar").ThecontractforRegistrar'sservicesisherebyapprovedinsubstantiallytheformonfile
withtheTownClerk.TheMayor,theTownClerkandtheTownManagerorAccountingSupervisor
areherebyauthorizedanddirectedtoexecuteanddeliverthecontract.
TheTownshallmaintainanofficeoragencywhereBondsmaybepresentedfor
registration of transferandanofficeoragencywhereBondsmaybepresentedforpayment(the
"PayingAgent").TheTownmayappointoneormoreadditionalPayingAgents.EachPaying
AgentshallberequiredtoagreeinwritingthatthePayingAgentwillholdintrustforthebenefit of
theowners of theBondsallmoneyheldbythePayingAgentforthepayment of principaland
interestontheBonds.TheRegistrarandPayingAgentmaymakereasonablerulesandset
reasonablerequirementsfortheirrespectivefunctionswithrespecttotheowners oftheBonds.
TheRegistrarmayappointoneormoreauthenticatingagentsacceptabletotheTown
toauthenticateBonds.AnauthenticatingagentmayauthenticateBondswhenevertheRegistrarmay
doso.Eachreferencehereintoauthentication of BondsbytheRegistrarincludesauthenticationby
an authenticating agentactingonbehalfandinthename of theRegistrarandsubjecttothe
Registrar'sdirection.
WhenBondsarepresentedtotheRegistrarwitharequesttoregisteratransfer,the
Registrarshallregisterthetransferontheregistrationbooks if itsrequirementsfortransferaremet
andshallauthenticateanddeliveroneormoreBondsregisteredinthename of thetransferee of the
sameprincipal amount,maturityandrate of interestasthesurrenderedBonds.Bondspresentedto
the Registrar for transfer aftertheclose of business onthe Record Dateand before theclose of
businessonthenextsubsequentinterestpaymentdatewillberegisteredinthename of thetransferee
buttheinterestpaymentwillbemadepayabletoandmailedtotheregisteredownersshownonthe
books of theRegistraras of theclose of businessontheRecordDate.TheRegistrarwillchargethe
ownerforeverysuchtransferanamountsufficienttoreimbursetheRegistrarforanytransferfee,tax
orothergovernmentalchargerequiredtobepaidwithrespecttosuchtransfer,andmayrequirethat
suchtransferfee,taxorothergovernmentalchargebepaidbeforeanysuchnewBondorBondsshall
be delivered.PrincipaloneachBondwillbepayableuponsurrendertothepersonwhoisthe
registered owner of such Bond onitsmaturitydate.
TheTownmaychangetheRegistrarwithoutnoticeandtheTownmayactinany
suchcapacity.
TheRegistrarshallauthenticateBondsfororiginalissue$1,075,000inaggregate
principalamountuponthewrittenrequest of theTownManagerorAccountingSupervisor.The
aggregateprincipalamount of Bondsoutstandingatanytimemaynotexceedthat amount exceptfor
replacement Bonds asto which the requirements of the Registrar andthe Town aremet.
Section 10,Resolution a Contract.This resolution shall constitute a contract
betweentheTownandtheowners of theBondsandshallnotberepealedoramendedinanymanner
whichwouldimpair,impedeorlessentherights of theowners of theBondsthenoutstanding.
(Section 11,Application of Proceeds and Other Moneys.Uponthedelivery of
^y*/and payment for the Bonds in accordance with the terms oftheir sale,the net proceeds ofthe Bonds,
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afterpayment of thecostsandexpenses of theirissuance,shallbeapplied,alongwithanynecessary
amounts acceptable tothe Town,tocreateanirrevocabletrustforthe benefit of theowners of the
BondsBeingRefunded.Amountscreditedtothetrust,otherthananybeginningcashbalance,shall
beinvestedimmediatelyinobligationsissuedbyorguaranteedbytheUnitedStates of Americathe
maturing principal of andinterestonwhich,togetherwithanybeginningcashbalance,willbe
sufficienttopaytheprincipalof,applicablepremiumandinterestontheBondsBeingRefundedas
the same becomes due.
Anybalance of thenetproceeds of theBondsremainingaftercreation of thetrustfor
theBondsBeingRefundedshallbe transferred totheInterestandRedemptionFundscreatedforthe
Bonds.
Section 12,Trust Agreement.TheMayor,theTownManagerorAccounting
Supervisor and/or the Town Clerk arehereby authorized and directed to execute anirrevocable
depositorytrustagreement(the"DepositoryTrustAgreement")with Norwest Bank Arizona,N.A.,a
bankauthorizedtodotrustbusinessintheState of Arizona(the"Trustee"),withrespecttothe
safekeepingandhandling of themoneysandsecuritiestobeheldintrustforthepayment of the
BondsBeingRefunded.TheDepositoryTrustAgreementshallbeinsubstantiallytheformonfile
with the Town Clerk.
If foranyreasontheDepositoryTrustAgreementiscancelledordeclaredvoidor
illegalorisincapable of beingperformedduetoanyimpediment of anynaturewhatsoever,theTown
shallappointorengageasuccessordepositorytrusteetoactintheplace of theTrustee,if such
successorbeready,willingandabletoassumetherole of depositorytrusteeundersuchagreementor
anagreementsimilarinformand substance.Duringanyperiodwhennodepositorytrusteeisin
place,theTownManagerorAccountingSupervisorshallactasthedepositorytrustee.
Section 13,Official Statement.Thedistribution of a Preliminary Official
StatementdatedJuly20,1998 (the "Preliminary OfficialStatement"),whichhasbeenpresentedto
theCouncil,isherebyratified,confirmedandapprovedandthePreliminaryOfficialStatementis
herebydeemed"final"forallpurposes of Section 240.15c2-12,GeneralRulesandRegulations,
SecuritiesandExchangeAct of 1934.TheMayorandtheTownCouncilherebyapprovethesale of
theBondsbythedistribution of anOfficialStatement(the"OfficialStatement")tobedatedonor
aboutthedate of thisResolution.TheMayorortheTownManagerareauthorizedtoexecuteand
delivertheOfficial Statement on behalf of theTown.The Official Statement shallbein substantially
theform of the Preliminary Official Statement with such additions,deletions and modifications as
shallbeapprovedbytheofficerorofficersexecutinganddeliveringthesameon behalf of theTown
andsuchexecutionanddeliveryshallconstituteconclusiveevidence of theapproval of suchofficials
of any departures fromtheformbeforetheCouncil.
Section 14,Tax Covenant.At no time or times shall the Town take or fail to take
any actions which action orfailuretoact will causethe interest income onthe Bonds to become
includedasgrossincomeforfederalincometaxpurposes.TotheextentallowedbylawtheTown
willtakeanyact,modifythisresolutionortheDepositoryTrust Agreement mentioned inSection 12
hereof,ordosuchotherthingsasnecessarytopreservetheexemption of interestincludinganymade
necessarybyfuturechangesintheInternalRevenueCode of theUnitedStates.Suchrequirements
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mayincludebutarenotlimitedtomakingfurtherspecificcovenants;makingtruthfulcertifications
andrepresentationsandgivingnecessaryassurances;complyingwithallrepresentations,covenants
andassurancescontainedincertificatesoragreementstobepreparedbybondcounsel;topaytothe
UnitedStates of Americaanyrequiredamountsrepresentingrebates of arbitrageprofitsrelatingto
theBonds;filingforms,statementsandsupportingdocumentsasmayberequiredunderthefederal
taxlaws;limitingtheterm of andyieldoninvestmentsmadewithmoneysrelatingtotheBonds;and
limitingtheuse of theproceeds of theBondsandpropertyfinancedthereby.
Section 15.Continuing Disclosure Undertaking.In order to comply with the
provisions of theDisclosureRule,theTownisherebyauthorizedanddirectedtoprepare,execute
and deliver on behalf of the Town a written undertaking or agreement forthe benefit of the owners
of theBonds.Thewritten undertaking oragreementshallcontainsuchtermsand provisions asare
necessary to comply with the Disclosure Rule including,but not limited to,an agreement to
providebothannualfinancial information (andauditedfinancialstatements,whenavailable)and
materialeventsdisclosureto nationally recognizedmunicipalsecurities information repositories.
TheMayororthe Town Manager are authorized toexecuteand deliver the written undertaking or
agreement.
Section 16,Rebate Fund.TheMayorandtheCouncilherebyauthorizethe
TownManager,theAccountingSupervisororanyagent thereof tocreateaseparatefundtobe
knownastheRebateFund.Intosuchfundshallbedepositedanyandallmoneysdeemednecessary
bytheTownManagerorAccountingSupervisor,toremainincompliancewiththeprovisions of
Section148 of theInternalRevenueCode of 1986,asamended(the"Code"),oranyregulations
promulgatedthereunder.Moneysinsuchfundshallbesegregatedor (if authorizedinwritingbyan
opinion of bondcounsel)commingled withothermoneys of theTown.
Section 17,Credit Enhancement.Itishereby authorized andapprovedthat
proceeds of theBondsmaybeusedtopayapremiumformunicipalbondinsuranceorothercredit
enhancement.
Section 18.Bank Qualified.TheTownhasdesignateditsBondsas"qualified
tax-exemptobligations"for purposes of Section 265(b)(3)of theInternal Revenue Code of 1986,as
amended(the"Code").TheTownherebycertifiesthatitreasonablyanticipatesthattheaggregate
amount of qualifiedtax-exemptobligations(asdefinedinSection265(b)(3)(B)of theCodewhich
willbeissuedfororbythe Town in calendar year 1998 willnot exceed $10,000,000.
Section 19,Redemption of Bonds.AllBondsBeingRefundedmaturingonor
afterJuly1,2001areherebyirrevocablycalledforredemptionpriortotheirstatedmaturitydates.
TheTrusteeisdirectedtocausenotice of suchredemptiontobe published anddeliveredin
accordancewiththe proceedings authorizingtheissuance of theBonds Being Refunded maturingon
orafterJuly 1,2001.
Section 20,Acceptance of Offer;Sale of Bonds;and Authorization to
Execute.Theproposal of Peacock,Hislop,Staley&given,Inc.(the"Purchaser")forthepurchase of
theBondsisthebestandmostresponsiblebidreceivedandtheBondsareherebyawardedtosuch
Purchaserinaccordance with theterms of thisresolutionandthe Purchase Agreement pertaining to
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theBonds,acopy of whichisonfilewiththeTown.ThePurchaseAgreementisherebyapprovedin
substantially theformonfilewiththeTownClerk.TheMayororTownManagerarehereby
authorizedand directed to execute the Purchase Agreement.
The Town Manager is hereby authorized and directed tocausethe Bonds tobe
deliveredtoorupontheorder of thePurchaseruponreceipt of paymentthereforandsatisfaction of
theotherconditionsfordelivery thereof inaccordancewiththeterms of thesale.
Section21.Defeasance,Payment of alloranypart of theBondsmaybe
providedforbytheirrevocabledepositwithatrustee of moneysorGovernmentObligations,or
both.Themoneysandthe maturing principaland interest income onsuch Government
Obligations,if any,shallbesufficient,asevidencedbyacertificate of anindependentcertified
publicaccountant,afirm of suchaccountantsoranactuary,orfirm of actuaries,orotherexpertsin
thefieldwhoshallcalculatethesufficiency of thesubjectmoneysandGovernmentObligationsto
paywhenduetheprincipal of andinterestonsuchBonds.ThemoneysandGovernment
ObligationsshallbeheldbyatrusteeirrevocablyintrustfortheOwners of suchBondssolelyfor
the purpose of paying the principal of and interest on such Bonds asthe same shall mature or come
due.
If payment of theBondsissoprovidedfor,theTrusteeshallmailanoticesostating
toeach Owners of a Bond so provided for.
Bonds,the payment of whichhasbeen provided forinaccordancewiththis
Section,shallnolongerbedeemedoutstandinghereunderorsecuredhereby.Totheextent
permittedbylaw,the obligation of theTowninrespecttosuchBondsshall nevertheless continue
buttheOwners thereof shallthereafterbeentitledtopaymentonlyfromthemoneysor
GovernmentObligationsdepositedwiththetrusteetoprovideforthepayment of suchBonds.
NoBondmaybeso provided forif,asaresult thereof or of anyotheractionin
connectionwiththeprovisionforpayment of suchBond,theinterestpayableonanyBondis
therebymadesubjecttofederalincometaxes.ThetrusteeandtheTownmayrelyuponanopinion
of anationallyrecognizedbondcounsel(whichopinionmaybebaseduponarulingorrulings of
theInternal Revenue Service)tothe effect thatthe provisions of this Section will not be breached
byso providing forthe payment of any Bonds.
For purposes of this Section 21,"Government Obligations"shall mean (i)direct
and general obligations of the United States of America,or those which are unconditionally
guaranteedasto principal and interest bythesame;and(ii)obligations issued by either the
ResolutionTrust Corporation orthe Resolution Funding Corporation,the payment of which is
ultimately backed bythe United States Treasury.
Additionally,evidences of ownership of proportionate interests infuture interest
andprincipal payments of Government Obligations are permissible.Investments inthese
proportionate interests are limited to circumstances wherein (a)a bank or trust company actsas
custodian andholdsthe underlying obligations;(b)the owner of the investment isthereal party in
interestandhastherightto proceed directly and individually against the obligor of the underlying
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obligations;and(c)the underlying obligations areheldinaspecial account separateandapart
fromthe custodian's general assets,and are not available to satisfy any claim of the custodian,any
person claiming throughthecustodian,oranypersonto whom the custodian maybeobligated.
Section 22,Severability.If any section,paragraph,subdivision,sentence,clause
orphrase of thisresolutionisforanyreasonheldtobeillegalorunenforceable,suchdecisionwill
notaffectthevalidity of theremainingportions of thisresolution.The Mayor andCouncilmembers
herebydeclarethatthis resolution would havebeen enacted andeachandeveryothersection,
paragraph,subdivision,sentence,clauseorphrase hereof andauthorizedtheissuance of theBonds
pursuantheretoirrespective of thefactthatanyoneormoresections,paragraphs,subdivisions,
sentences,clausesor phrases of this resolution maybe held illegal,invalid or unenforceable.
Section 23,Ratification of Actions.Allactions of the officials andagents of the
Town which arein conformity with the purposes and intent of this resolution andin furtherance of
the issuance andsale of the Bonds as contemplated bythis resolution whether heretofore or hereafter
takenshallbeandareherebyratified,confirmedandapproved.Theproperofficialsandagents of
theTownareherebyauthorizedanddirectedtodoallsuchactsandthingsandtoexecuteanddeliver
allsuch documents on behalf of the Town asmaybe necessary tocarry out the terms andintent of
this resolution.
Section24,Emergency.Theimmediateoperation of theprovisions of this
resolutionisnecessaryforthe preservation ofthepublicpeace,health andsafetyandanemergencyis
declaredtoexist,andthisresolutionwillbeinfullforceandeffectfromandafteritspassageand
approvalbytheMayorandCouncilasrequiredbylaw,anditisherebyexemptfromthereferendum
provisions oftheConstitutionandlaws of theState of Arizona.
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PASSED,ADOPTED AND APPROVED bythe Mayor and Council of theTown
of Fountain Hills,Arizona,on August 6,1998.
ATTEST:
Clerk
APPROVED AS TO FORM:
GUST ROSENFELD P.L.C.
BondCounsel U
<zJJsv^4s^J
CERTIFICATION
I,CassieHansen,thedulyappointedandactingTownClerk of theTown of Fountain
Hills,Arizona,doherebycertifythattheaboveand foregoing Resolution No.1998-33 wasduly
passed bythe Town Council ofthe Town of Fountain Hills,Arizona,ata regular meeting held on
August 6,1998,and the vote was \s>aye's and D nay's and that the Mayor and -ST Council
Members were present thereat.
^JjJ^c^Sjj J^La^..J^_>
Cassie Hansen,Town Clerk
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EXHIBIT A
(Form of Bond)
TOWN OF FOUNTAIN HILLS,ARIZONA,
STREET AND HIGHWAY USER REVENUE REFUNDING BOND
SERIES 1998
Number:Denomination:
Interest Maturity Original
Rate Date Dated Date CUSIP
August 1,1998
Registered Owner:
Principal Amount:
The TOWN OF FOUNTAIN HILLS,ARIZONA (the "Town"),forvaluereceived,
herebypromisestopaytothe registered owneridentifiedabove,orregisteredassignsasprovided
herein,onthe maturity date set forth above,the principal amount setforth above andtopay
interest onthe unpaid principal amount atthe interest rateshownabove.
Interest is payable on January 1andJuly1 of each year commencing January1,
1999,andwill accrue from the most recent dateto which interest hasbeenpaid,or,if nointerest
hasbeenpaid,fromtheoriginalissuedatesetforthabove.Interestwillbecomputedonthebasis
of ayearcomprised of 360daysconsisting of twelve (12)months of thirty(30)dayseach.
Bonds of thisissuearenotsubjecttocallforredemptionpriortotheirstated
maturity dates.
Principal hereof andinteresthereonarepayableinlawfulmoney of theUnited
States of America.Interestwillbepaidbycheckpayabletotheorder of andmailedtothe
registered ownerattheaddressshownonthe registration books maintained bythe registrar atthe
close of business onthe record dateas described onthereversehereof.All payments of interest
and,if adequate provisionforsurrenderis made,principal,shallbepaidbywire transfer in
immediately availablefundswithrespecttoanybondheldbya securities depository.Principal
andanypremiumwillbepaidwhenduetotheregisteredowneruponsurrender of thisbondfor
payment atthe designated office of thepaying agent,whichonthe original issuedateisthe
corporatetrustoffice of Norwest BankArizona,N.A.,inPhoenix,Arizona.
Seethereverseside of thisbondforadditionalprovisionswhichareapart of this
bond.
Itisherebycertifiedandrecitedthatall conditions,actsandthings required bythe
Constitution andlaws of theState of Arizona toexist,tooccurandtobe performed precedentto
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andintheissuance of thisbondexist,haveoccurredandhavebeenperformedindueform,time
and manner as required by law.
The Town of Fountain Hillshas caused thisbondtobe executed byitsMayor,
countersigned byits Finance Director and attested byits Town Clerk,which signatures maybe
facsimile signatures.This bond is not valid or binding upon theTown without the manually
affixed signature of an authorized representative of theregistrar.
This bond is prohibited from being issued in coupon or bearer form without the
approval of theTownCouncilandtheoccurrence of certainotherconditions.
TOWN OF FOUNTAIN HILLS,ARIZONA
ATTEST:
(facsimile)(facsimile)
Clerk Mayor
COUNTERSIGNED:
(facsimile)
Finance Director
(SEAL)
AUTHENTICATION DATE:
AUTHENTICATION CERTIFICATE
This bond is one of the Town of Fountain Hills,Arizona,Street and Highway User
Revenue RefundingBonds,Series 1998,describedintheresolutionmentionedinthisbond.
NORWEST BANK ARIZONA,N.A.,
as Registrar
By.
Authorized Representative
(Form of ReverseSide of Bond)
Thebondsarenotsubjecttocallfor redemption priortotheirstated maturity dates.
Thisbondisone of anissueofbondsinthe aggregate principalamountof
$1,075,000 ofliketenorexceptasto amount,maturity date,rateof interest,and number,issued by
the Town to provide funds to refund certain previously issued and outstanding bonds ofthe Town
pursuant toa resolution duly enacted bythe Mayor and Town Council on August 6,1998 (the
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"BondResolution"),andpursuanttotheConstitutionandlaws of theState of Arizona,in
accordancewithTitle48,Chapter4,Article5,ArizonaRevisedStatutes,andallamendments
thereto andall other laws of theState of Arizona thereunto enabling.
This bond andall bonds of the series of which this bond is one,andall bonds issued
onaparitybasiswiththisbond,whetherpriortoorsubsequenttotheissuance of thisbond,
providedsuchbondshavenotbeendefeasedpursuanttotheterms of theBond Resolution,are
payablefromandaresecuredbyapledge of allrevenuesreceivedbytheTownfromtaxes,fees,
chargesandothermoneyscollectedbytheStateandreturnedtotheTownforstreetandhighway
purposespursuanttolaw,includingTitle28,Ch.18,Art.2 of theArizonaRevised Statutes,as
amended,subjecttotherightstosuchrevenues of theowners of thebondsheretoforerefundedin
theevent of anyinsufficiencyintheobligationspurchasedtomeettherequirements of such
refunded bonds,as authorized bythe provisions of theAct.Payment of thisbondandtheinterest
hereonareenforceableexclusivelyfromtherevenuesabove-recitedandnoowner hereof shall
havetherighttocompelanyexercise of thetaxingpower of theTowntopaythisbondorthe
interest hereon.This bond isnotadebt of the Town within the meaning of any Constitutional or
statutorylimitation.ThisbondisissuedonaparitywiththeTown'sStreetandHighwayUser
Revenue Bonds,Series 1991.
The registrar or paying agent maybe changed without notice.
Thisbondistransferablebytheregisteredownerinpersonorbyattorneyduly
authorizedinwritingatthedesignatedoffice of theregistraruponsurrenderandcancellation of
thisbond,butonlyinthemannerandsubjecttothelimitationanduponpayment of anychargesas
provided inthe authorizing resolution.Uponsuch transfer anewbondofthesame maturity and
interestratewillbeissuedtothetransfereeinexchange.TheTownhaschosenthefifteenthday of
themonth preceding aninterestpaymentdateastherecorddateforthisissue of bonds.Should
thisbondbesubmittedtotheregistrarfortransferduringtheperiodcommencingaftertheclose of
businessontherecorddateand continuing toand including thenext subsequent interest payment
date,ownership willbe transferred inthenormalmannerbuttheinterestpaymentwillbemade
payable toand mailed tothe registered owner as shown onthe registrar's books atthe close of
business on the record date.
Bonds of thisissueareissuableonlyinfullyregisteredforminthedenomination of
$5,000eachorintegralmultiples of $5,000.
TheTown,theregistrarandthepayingagentmaytreattheregisteredownerofthis
bondastheabsoluteownerforthepurpose of receivingprincipal,interestandanypremiumand
forallotherpurposesandnone of themshallbeaffectedbyanynoticetothecontrary.
[INSERT INSURANCE REQUIREMENTS HERE]
The following abbreviations,whenusedinthe inscription onthefaceofthisbond,
shallbeconstruedasthoughtheywerewrittenoutinfullaccordingtoapplicablelawsor
regulations:
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(Form of Assignment)
TEN COM -astenantsin common UNIF GIFT/TRANS MIN ACT-Custodian
TENENT-astenantsbythe entireties (Cust)(Minor)
JTTEN-asjointtenantswithright of survivorship UnderUniform Gifts/Transfers to Minors Act_
andnotastenantsin common (State)
Additional abbreviations may alsobeused though notinlistabove
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells,assignsandtransfersunto
(Nameand Address of Transferee)
thewithinbondandallrights thereunder,andherebyirrevocablyconstitutesandappoints
attorney to transfer the within bond onthe books kept for registration thereof,with full power of substitution inthe
premises.
Dated
Note:Thesignature(s)onthis assignment must
correspond withthename(s)aswrittenonthe face of the
within registered bondinevery particular without alteration
or enlargement oranychange whatsoever.
Signature Guaranteed:
Firm or Bank
Authorized Signature
The signature(s)shouldbe guaranteed byaneligible
guarantor institution pursuant toSECRule 17Ad-15
ALL FEES AND TRANSFER COSTS SHALL BE PAID BY THE TRANSFEROR
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