City of Milford Public Hearing

73

Submitted By The City of Milford

CITY OF MILFORD PUBLIC HEARING
PUBLIC HEARING DATE: July 13, 2015
TIME: 7:00 p.m.
To receive public comments on a proposed loan through the
United States Department of Agriculture Rural Utilities Service

The following resolution proposing to borrow these funds was adopted by City Council
at its regular meeting held on June 8, 2015:

CITY OF MILFORD
RESOLUTION 2015-04

RESOLUTION AUTHORIZING THE ISSUANCE OF UP TO $1,600,000 MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF A GENERAL OBLIGATION BOND OR BONDS IN ORDER TO FINANCE COSTS ASSOCIATED WITH IMPROVEMENTS TO THE SEWER SYSTEM OF THE CITY OF MILFORD AND ESTABLISHING THE TIME AND PLACE FOR A PUBLIC HEARING THEREON.

WHEREAS, the City of Milford (the “City”) pursuant to Article 8 of 72 Del. Laws Ch. 148, as amended (the “Charter”) proposes to issue up to $1,600,000 maximum aggregate principal amount of the City’s general obligation bond or bonds (collectively, the “Bonds”) in order to (i) partially finance the construction costs associated with the City’s approved improvements, rehabilitations, upgrades and repairs to its sewer system, including the addition of a sewer supervisory control and data acquisition (SCADA) system instrumentation, pump stations upgrades and removal of external inflow and infiltration sources; and (ii) pay the costs of issuance of the Bonds (collectively, the “Project”);

WHEREAS, the City has applied for a loan through the United States Department of Agriculture – Rural Utilities Service (the “Department”) in order to provide funds to pay for the Project;

WHEREAS, the Department has issued a Letter of Conditions dated September 10, 2014, as amended April 27, 2015, to lend the City up to $1,600,000 in the maximum aggregate principal amount for the Project for a period of forty (40) years, with an interest rate for the first partial loan of $600,000 not-to-exceed 2.375% and an interest rate for the second partial loan of $1,000,000 not-to-exceed 2.125%;

WHEREAS, in addition to the aforementioned loan, the City also expects to receive a grant from the Department to help finance the Project in an amount up to $2,000,000, and the City must directly contribute $400,000 of its Sewer Fund Reserves towards the Project before utilizing loan and grant funds from the Department; and

WHEREAS, to authorize the borrowing of up to $1,600,000 through the issuance of the Bonds for the Project and in order to comply with the requirements of Article 8 of the Charter, the City Council, through its adoption of this Resolution, hereby gives notice to the electors of the City that the City Council proposes to borrow an amount of money, not to exceed $1,600,000 maximum aggregate principal amount, to partially fund the Project, which is a permitted purpose under Article 8 of the Charter, and hereby establishes that a public hearing on the matter be fixed on July 13, 2015, at 7:00 p.m., prevailing time, in the Council Chambers at the Milford City Hall located at 201 South Walnut Street, Milford, Delaware 19963.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Milford as follows:
The City Council of the City of Milford hereby gives notice to the electors of the City that the City proposes to borrow an amount of money, not to exceed $1,600,000 maximum aggregate principal amount, to partially fund the Project.

Pursuant to Article 8.03 of the Charter:
Amount of Borrowing: Total maximum aggregate principal amount not to exceed $1,600,000.
Rate(s) of Interest: The interest rate for the first partial loan of $600,000 shall not exceed 2.375% and the interest rate for the second partial loan of $1,000,000 shall not exceed 2.125%.

Manner of Securing the Same: The City will borrow the funds through the issuance of a general obligation bond or bonds of the City to partially finance the Project and the full faith and credit of the City will be pledged to pay the principal of and interest on the Bonds.

Manner of Paying or Funding: The Bonds shall be paid or funded from sewer impact fees, sewer fund operating revenues and tax revenues of the City in the order of priority as stated.

Purpose for Borrowing: The City Council hereby finds that the Project constitutes the following, which is a permitted purpose for which money may be borrowed under Article 8 of the Charter:

Finance the construction costs associated with the City’s approved improvements, rehabilitations, upgrades and repairs to its sewer system, including the addition of a sewer SCADA system instrumentation, pump stations upgrades and removal of external inflow and infiltration sources.

Such costs, including the costs of issuance of the Bonds, are estimated not to exceed $4,000,000 and are expected to be paid for by the loan and grant from the Department and a direct contribution from the City.

The City Council hereby establishes that a public hearing upon the Resolution and the proposed borrowing described herein shall be held on July 13, 2015, at 7:00 p.m., prevailing time, in the Council Chambers at the Milford City Hall located at 201 South Walnut Street, Milford, Delaware 19963, and hereby directs that notice of such hearing be published and posted as required by Article 8.04 of the Charter, by:
publication in one (1) issue of a newspaper published in the City at least one week before the time set for the public hearing; and posting copies thereof in five (5) public places throughout the City at least one week before the time set for the public hearing.

The City Council hereby directs that this matter be placed on the agenda for the regular meeting of the City Council on July 13, 2015 at the Milford City Hall to determine whether to proceed with the proposed borrowing described herein.

ADOPTED AND RESOLVED this 8th day of June, 2015.

s/Mayor Bryan W. Shupe