Library Bond Resolutions

The Town Board adopted the following resolution at its April 26, 2010 meeting.
 
A Resolution Authorizing an Additional not-to-exceed $660,000 Aggregate Principal Amount of Serial Bonds to Finance Costs Incurred in Connection With the Construction and Reconstruction of the Mendon Public Library Including, without Limitation, an Addition Thereto, Delegating the Power to Issue Bond Anticipation Notes in Anticipation of the Sale of Such Bonds to the Town Supervisor and the Modification of the Plan of Financing for Said Project.
 
WHEREAS, by Resolution duly adopted by the Town Board of the Town of Mendon, New York (the “Town”) on February 8, 2010 (the “Original Resolution”), the Town Board approved the Project and the issuance of serial general obligation bonds in the aggregate principal amount of not to exceed $1,350,000 pursuant to the Local Finance Law of New York (the “Original Bonds”), in order to finance the construction of an addition to and the reconstruction of the Mendon Public Library, including site work thereat, and the acquisition of original furnishings, equipment, machinery or apparatus required for the purposes for which such addition and reconstructed building are to be used (the “Project”);

WHEREAS, in the Original Resolution, the Town Board defined the plan for financing the Project (the “Financing Plan”), by stating that the Project would be financed by the issuance of the Original Bonds and the expenditure of not to exceed $2,604,303 of funds, gifts and grants (the “Other Funding Sources”) received by the Town for the purpose of financing the Project as such Other Funding Sources become available;
 
WHEREAS, the Original Resolution was adopted subject to a permissive referendum, and the time for Town residents to subject the Original Resolution to a referendum has elapsed;
 
WHEREAS, the Town Board has determined that the Financing Plan should be amended to allow for the Project to be financed by, in addition to the proceeds from the Original Bonds and the Other Funding Sources, the proceeds of an additional upto $660,000 in serial bonds, or bond anticipation notes issued in anticipation thereof (collectively, the “Supplemental Bonds”);
 
WHEREAS, the Town Board has adopted this resolution after being notified by the Board of Trustees of the Mendon Public Library (the “Library”) that A) certain fundraising activities (the “Capital Campaign”) are being undertaken on behalf of the Library by The Friends of the Mendon Public Library, Inc. (“Friends”) and B) as of the date of this resolution, neither the Library, nor the Friends, are able to ascertain the extent to which proceeds of the Capital Campaign will constitute Other Funding Sources.
 
NOW THEREFORE BE IT RESOLVED, by the Town Board of the Town of Mendon, Monroe County, New York (the “Town”) as follows:
 
Section 1.   The specific object or purpose (herein referred to as “Purpose”) to be financed pursuant to this resolution is the construction of an addition to and the reconstruction of the Mendon Public Library, including site work thereat, and the acquisition of original furnishings, equipment, machinery or apparatus required for the purposes for which such addition and reconstructed building are to be used.  The estimated maximum cost of the Purpose is not to exceed $3,954,303, which cost includes certain soft cost expenditures incurred prior to the adoption of this Bond Resolution (the “Prior Expenditures”), some or all of which may be reimbursed from the proceeds of the notes or Supplemental Bonds authorized herein.  The Town is hereby authorized to issue the Supplemental Bonds in the aggregate principal amount of not to exceed $660,000 pursuant to the Local Finance Law of New York in order to finance, in part, the cost of the Purpose.
 
Section 2.   The Town plans to finance the total cost of the  Purpose, including without limitation all or part of the Prior Expenditures, by the issuance of the Original Bonds, the issuance of the Supplemental Bonds and the expenditure of not to exceed $2,604,303 of Other Funding Sources as such Other Funding Sources become available.
 
Section 3.  It is hereby determined that the Purpose is an object or purpose described in subdivision 12(a) of paragraph a. of Section 11.00 of the Local Finance Law and that the period of probable usefulness of the  Purpose is twenty-five years.
 
Section 4.  It is hereby determined that the proposed maturity of the obligations authorized by this resolution will be in excess of five years.
 
Section 5.  Current funds are not required to be provided prior to the issuance of the Supplemental Bonds or any notes issued in anticipation of such Supplemental Bonds by virtue of paragraph 9 of subsection d. of Section 107.00 of the Local Finance Law, with respect to the Purpose authorized hereby.
 
Section 6.  The faith and credit of said Town are hereby irrevocably pledged for the payment of the principal of and interest on such Supplemental Bonds as the same respectively become due and payable.  An annual appropriation shall be made in each year sufficient to pay the principal of and interest on such Supplemental Bonds becoming due and payable in such year.  There shall annually be levied on all the taxable real property of said Town a tax sufficient to pay the principal of and interest on such Supplemental Bonds as the same become due and payable.
 
Section 7.  Subject to the terms and contents of this resolution and the Local Finance Law, and pursuant to the provisions of Sections 30.00, 50.00, and 56.00, of said Law, the power to authorize bond anticipation notes in anticipation of the issuance of the Supplemental Bonds and the renewals of said notes and the power to prescribe the terms, form and content, and the manner of execution of the Supplemental Bonds, and said bond anticipation notes, including the consolidation with other issues, and also the availability to issue bonds with substantially level or declining annual debt service, and the power to sell and deliver the Supplemental Bonds and any bond anticipation notes issued in anticipation of the issuance of such Supplemental Bonds, is hereby delegated to the Town Supervisor,  the Chief Fiscal Officer of the Town.
 
Such bonds and bond anticipation notes shall contain substantially the recital of validity clause provided for in Section 52.00 of the Local Finance Law, and shall otherwise be in such form and contain such recitals, in addition to those required by Section 51.00 of the Local Finance Law, as the Town Supervisor shall determine consistent with the provisions of the Local Finance Law.
 
Section 8.  The Town Supervisor is further authorized to take such actions and execute such documents as may be necessary to ensure the continued status of the interest on the Supplemental Bonds, and any notes issued in anticipation thereof, as excludable from gross income for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”) and to designate the Supplemental Bonds and any notes issued in anticipation thereof, as “qualified tax-exempt obligations” in accordance with Section 265(b)(3) of the Code.
 
Section 9.  Pending the sale of the Supplemental Bonds, the temporary use of funds from the Town’s general fund, pursuant to the provisions of Section 165.10 of the New York Local Finance Law, is hereby authorized.  The Town reasonably expects to reimburse itself from the proceeds of bonds or notes herein authorized for expenditures made for the purpose to be financed by this resolution prior to the issuance of such bonds or notes, and this resolution is intended to constitute a declaration of official intent to reimburse for the purposes of U.S. Treasury § 1.150-2.
 
Section 10.  On December 28, 2009, the Town determined that the Purpose, including the issuance of bonds to finance the Purpose, will not have a significant effect on the environment and issued a negative declaration pursuant to the State Environmental Quality Review Act (“SEQRA”) and, in considering this resolution, has determined that the issuance of the Supplemental Bonds will not adversely impact the negative declaration so as to require the Town to amend the prior SEQRA determination.
 
Section 11.   The validity of the Supplemental Bonds or of any bond anticipation notes issued in anticipation of the sale of the Supplemental Bonds may be contested only if:
 
1. Such obligations are authorized for an object or purpose for which said Town is not authorized to expend money, or

2. The provisions of law which should be complied with at the date of the publication of this resolution are not substantially complied with, and an action, suit or proceeding contesting such validity is commended within twenty days after the date of such publication, or
 
3. Such obligations are authorized in violation of the provisions of the Constitution of New York.
 
Section 12.  The Town Clerk is hereby authorized and directed to publish this resolution, or a summary thereof, together with a notice in substantially the form provided by Section 81.00 of the Local Finance Law, in The Sentinel, the official newspaper of said Town, after a period of time shall have elapsed for the submission and filing of a petition for a permissive referendum and a valid petition shall not have been submitted and filed.
 
Section 13.  The firm Hiscock and Barclay, LLP is hereby appointed Bond Counsel of the Town in connection with the bonds and notes herein authorized.
 
Section 14.  This resolution is adopted subject to permissive referendum pursuant to Section 35.00 of the Local Finance law and the Town Clerk is hereby authorized and directed within ten (10) days after the adoption of said resolution to cause to be published a notice which sets for the date of the resolution’s adoption and contains an abstract of the resolution concisely stating its purpose and effect.
 
 
The Town Board adopted the following resolution at its February 8, 2010 meeting.