NOTICE TO CITY OF MILFORD ELECTORS
Authorization to BORROW THROUGH USDA/RURAL UTILITIES SERVICE
SPECIAL ELECTION SCHEDULED
TUESDAY, september 1, 2015 7:00 a.m. to 7:00 p.m.
RESOLUTION 2015-10 AUTHORIZING THE ISSUANCE BY THE CITY OF MILFORD, DELAWARE, OF UP TO $1,600,000 MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF A GENERAL OBLIGATION BOND OR BONDS TO FINANCE COSTS ASSOCIATED WITH IMPROVEMENTS TO THE SEWER SYSTEM OF THE CITY OF MILFORD AND ORDERING A SPECIAL ELECTION IN CONNECTION THEREWITH.*
Whereas, the City of Milford, Delaware (the “City”) pursuant to Article 8 of 72 Del. Laws Ch. 148, as amended (the “Charter”) proposes to borrow an amount not exceeding the maximum aggregate principal amount of $1,600,000 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 (the “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 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;
WHEREAS, pursuant to a Resolution adopted on June 8, 2015 (the “Initial Resolution”), the City gave notice of its intention to borrow up to $1,600,000 through the issuance of a general obligation bond or bonds (collectively, the “Bonds”) of the City for the Project and established a public hearing on the matter for July 13, 2015; and
WHEREAS, having conducted the public hearing, after notice, and having adopted a resolution authorizing the Loan, all in accordance with Article 8 of the Charter, the Council of the City (the “City Council”) hereby determines to proceed with the proposed borrowing and hereby orders a Special Election to be held not less than thirty (30) nor more than sixty (60) days after the aforementioned public hearing, for the purpose of voting for or against the proposed borrowing, all in accordance with the Charter.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Milford, Delaware, as follows:
Pursuant to the Initial Resolution and after a public hearing conducted on June 8, 2015, after notice, and following adoption of a resolution authorizing the Loan, all in accordance with the requirements of the Charter, the City Council hereby resolves to proceed with borrowing an amount of money, not to exceed $1,600,000, to fund the Project.
Pursuant to Article 8 of the Charter:
Amount of Borrowing: Total 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 a grant from the Department and a direct contribution from the City.
The City Council hereby orders that a Special Election be held on September 1, 2015 (the “Special Election”) for the purpose of voting for or against the proposed borrowing. The Special Election shall be conducted at the Milford City Hall, 201 South Walnut Street, Milford, Delaware, 19963, and the polls shall open at 7:00 a.m. and shall close at 7:00 p.m. Such Special Election shall be held not less than thirty (30) nor more than sixty (60) days after the aforementioned public hearing and adoption of the resolution authorizing the Loan.
At such Special Election, every person who would be entitled to vote at an annual election if held on that day shall be entitled to one vote.
The City Council hereby directs that notice of such Special Election be posted and published as required by the Charter, Article 8.04 by:
posting notices thereof in five (5) public places in the City at least two weeks prior to the day fixed for the holding of the Special Election; and
publishing a copy of such notice once each week during those two (2) weeks immediately preceding that week during which the day fixed for the holding of the Special Election shall fall in a newspaper generally circulated in the City.
Pursuant to Article 8 of the Charter, the Special Election shall be conducted by an Election Board (the “Board of Election”) whose members shall be appointed or selected in the same manner and they shall have the same qualifications as provided in the case of annual elections of the City.
The Board of Election shall count the votes for and against the proposed borrowing and shall announce the result thereof. The Board of Election shall make a certificate under their hands of the number of votes cast for and against the proposed borrowing, and shall deliver the same, in duplicate, to the City Council, one copy of the certificate shall be entered in the minutes of the next meeting of the City Council, and the other copy shall be filed with the papers of the City Council.
Pursuant to Article 8 of the Charter, the City Council shall hereby cause the notices of the Special Election to be published and/or posted as provided herein and by the Charter and to take such other actions as are necessary or appropriate and in the best interest of the City to effectuate the resolutions adopted above and the requirements of the Charter.
ADOPTED AND RESOLVED this 13th day of July, 2015.
s/Mayor Bryan W. Shupe
*VOTER REGISTRATION DEADLINE AUG 3, 2015