Ordinance # 096-1
An Ordinance Authorizing Bolivar Borough to Incur Non - Electoral Debt in the amount of Ten thousand Dollars
An now, this 17th day of June 1996, the Borough of Bolivar hereby enacts this Ordinance for purposes of incurring non-electoral debt in the amount of Ten Thousand and no dollars ($10,000.00).
Whereas, the Borough desires to execute a General Obligation Note in the amount of Ten Thousand and no/100 ($10,000.00) dollars for: the sundry purposes for utilization in the Borough the fixing of the terms, date, interest, and maturity of the debt obligation, the specifics and covenants for the payment of the debt service on the Note; and the creation of a sinking fund depository for the Note and authorizing Council to execute said Note:
Whereas, the monies acquired as a result of the General Obligation Note is to provide monies to complete the recreational capital improvements within the Borough,
Whereas it is the intent of the borough to repay this loan as soon as grant monies become available;
Therefore, this Ordinance provides the authorization to execute the General Obligation Note as Follows:
A. Borough Council acting through its President upon enactment of this Ordinance authorizes the Borough to incur non-electoral debt in the amount of Ten Thousand dollars with the said Note being issued by the Johnstown Bank and Trust Company with a principal sum in the amount of $10,000.00 and an interest rate of 5.29% per annum (based on a year of 365 days) payable monthly and at maturity, with a final maturity date of five (5) years. Payments shall be made to the Johnstown Bank and Trust Company's Bolivar office at 622 Washington Street, Bolivar Pennsylvania 15923. Monthly payments including both principal and interest. There shall also be no pre-payment penalty of any kind.
B. The Borough hereby determines to incur non-electoral debt, in accordance with the provisions of Section 409 of the Local Government Unit Debt Act, Act Number 52 of the 1978 General Assembly of the Commonwealth of Pennsylvania, as amended (hereinafter referred to as the "Act" ), by the issuance of a Ten Thousand Dollar ($10,000.00) principal amount of the 2
General Obligation Note to finance a recreational project within the Borough hereby determined to have a realistic useful life in excess of twenty(20 ) years.
C. The indebtedness shall be evidence by a General Obligation Note, in registered form, in the principal sum of $10,000 dated and bearing interest from the earliest date of possible issue under the Statutory time requirements as set forth in the Act at the rate of interest of 5.29% per annum, payable annually on the unpaid balance of the Note on the anniversary date of the Note during the term of the Note, together with interest on overdue interest, at a rate of 6% per annum (computed on a basis of 365 days to the year) until paid, which shall mature in installments on the annual anniversary date of the Note.
D. The Borough of Bolivar reserves the right to anticipate any and all installments of principal of any payment of interest at any time prior to the respective payment dates thereof without notice of penalty or any prepayment penalties.
E. The principal and interest of the Note shall be payable at the office of the sinking fund depository selected for the Note being Johnstown Bank and Trust Company at 622 Washington St, Bolivar Pennsylvania 15923
F. The note is hereby declared to be a general obligation of the borough of Bolivar. The Borough of Bolivar hereby covenants that the Municipality shall include the amount of the debt service on the note for each fiscal year in which the sums are payable in its budget for that year, shall appropriate such amounts to the payment of such debt services, and shall duly and punctually cause to be paid the principal of the Note and interest thereon at the dates and places in the manner stated in the Note according to the true intent and meaning thereof and for such proper budgeting, appropriation and payment the full faith in credit and taxing power of the Borough of Bolivar is hereby irrevocably pledged.
G. The amounts which the Municipality hereby covens to pay in each of the following fiscal years on the basis of an interest rate of 5.29% is as follows (See attached Addendum A )
H. The form of this Note shall be shown in Exhibit A which is attached hereto and made a part hereof.
I. The note shall be executed in the name and under the corporate seal of the borough of Bolivar, duly and properly executed by the President of council and the Borough Secretary, and attested to by the Borough Secretary. the Treasurer is hereby authorized and directed to deliver the Note to the Purchaser and receive payment thereof on behalf of the Borough of Bolivar. The Borough Treasurer, Secretary, and President of Council are authorized and directed to prepare any necessary actions as may be required.
J. The Johnstown Bank and Trust Company's Bolivar Office is hereby designated as the Sinking Fund Depository for the Note referred to in this Ordinance. The creation of the sinking fund depository is hereby created and established and shall be known as the "General Obligation Term Loan Note Sinking Fund" for the payment of the principal and interest on the Note. The treasurer shall deposit into the sinking fund, which shall be maintained until the Note is paid in full, sufficient amounts for payment of principal and interest on the Note no later than the day prior to the date upon which payments shall become due. the sinking fund depository shall, and as said payment are due, without further action by the Borough of Bolivar withdraw available monies in the sinking fund and apply said monies to the payment of the principal and interest on the Note.
K. The President and Secretary of the Borough of Bolivar are authorized to contract with the Johnstown Bank and Trust Company for its services as sinking fund depository and paying agent for the same.
L The note in the amount of Ten Thousand Dollars herein authorized to be issued and sold is hereby awarded and sold to the Johnstown Bank and Trust Company in accordance with its proposal to purchase the Note at bar, provided the Note is dated the date of delivery thereof to Johnstown Bank and Trust Company and is in the form set forth in Section 5 of this Ordinance. It is found that the private negotiate sale of the Note is in the best financial interest of the Municipality.
Wherefore, after a duly advertised public meeting and a advertised convening of Borough Council at a regularly scheduled meeting date wherein a quorum was present, a majority of Council voted to enact the above Amendments on this 24th day of June 1996.
J. Diane Robinson
Arthur W. Ssisitki
Original Ordinance on file in Vault