Notice of Public Hearing and Bonds to be Issued
NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED
NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended (the “Act”), that on February 7, 2017, the City Council (the “Council”) of Midvale City, Utah (the “Issuer”), adopted a resolution (the “Resolution”) in which it authorized the issuance of the Issuer’s Sales Tax Revenue Bonds, Series 2017 (the “Series 2017 Bonds”) (to be issued in one or more series and with such other series or title designation(s) as may be determined by the Issuer), and called a public hearing to receive input from the public with respect to (a) the issuance of that portion of the Series 2017 Bonds issued under the Act and (b) any potential economic impact that the Project described herein to be financed with the proceeds of the Series 2017 Bonds issued under the Act may have on the private sector.
TIME, PLACE AND LOCATION OF PUBLIC HEARING
The Issuer shall hold a public hearing on March 7, 2017, at the hour of 6:00 p.m. at 7505 South Holden Street, Midvale, Utah. The purpose of the hearing is to receive input from the public with respect to (a) the issuance of that portion of the Series 2017 Bonds issued under the Act and (b) any potential economic impact that the Project to be financed with the proceeds of that portion of the Series 2017 Bonds issued under the Act may have on the private sector. All members of the public are invited to attend and participate.
PURPOSE FOR ISSUING THE SERIES 2017 BONDS
The Series 2017 Bonds will be issued for the purpose of (a) financing all or a portion of the costs of the reconstruction and rehabilitation of roads, including asphalt surface, curb, gutter, sidewalk and storm drain features and other related improvements (the “Series 2017 Project”), (b) funding any debt service reserve funds, as necessary, and (c) paying costs of issuance of the Series 2017 Bonds.
PARAMETERS OF THE SERIES 2017 BONDS
The Issuer intends to issue the Series 2017 Bonds in the aggregate principal amount of not more than Eleven Million Five Hundred Thousand Dollars ($11,500,000), to mature in not more than twenty-one (21) years from their date or dates, to be sold at a price not less than ninety-seven percent (97%) of the total principal amount thereof, and bearing interest at a rate or rates not to exceed six percent (6.00%) per annum. The Series 2017 Bonds are to be issued and sold by the Issuer pursuant to the Resolution, including as part of said Resolution, a General and a Supplemental Indenture (together, the “Indenture”) which were before the Council in substantially final form at the time of the adoption of the Resolution and said Indenture is to be executed by the Issuer in such form and with such changes thereto as shall be approved by the Issuer; provided that the principal amount, interest rate or rates, maturity, and discount of the Series 2017 Bonds will not exceed the maximums set forth above. The Issuer reserves the right to not issue the Series 2017 Bonds for any reason and at any time up to the issuance of the Series 2017 Bonds.
SALES AND USE TAXES PROPOSED TO BE PLEDGED
The Issuer proposes to pledge all or any portion of the revenues produced by local sales and use and excise taxes levied by the Issuer and legally permitted to be used for the 2017 Project (the “Revenues”).
OUTSTANDING BONDS SECURED BY PLEDGED TAXES
The Issuer currently has $22,850,000 of parity bonds outstanding (relating to a pledge agreement of the Issuer securing the Redevelopment Agency of Midvale City Tax Increment and Sales Tax Revenue Bonds, Series 2010B) secured by the Revenues.
OTHER OUTSTANDING BONDS OF THE ISSUER
Additional information regarding the Issuer’s outstanding bonds may be found in the Issuer’s financial report (the “Financial Report”) at: http://secure.utah.gov/auditor-search/. For additional information, including any information more recent than as of the date of the Financial Report, please contact Laurie Harvey, Director of Administrative Services at (801) 567-7238.
TOTAL ESTIMATED COST OF BONDS
Based on the Issuer’s current plan of finance and a current estimate of interest rates, the total principal and interest cost of the Series 2017 Bonds to be issued under the Act to finance the 2017 Project, if held until maturity, is $11,747,000.
A copy of the Resolution and the Indenture are on file in the office of Midvale City Recorder, 7505 South Holden Street, Midvale, Utah, where they may be examined during regular business hours of the City Recorder from 8:00 a.m. to 6:00 p.m. Monday through Friday, for a period of at least thirty (30) days from and after the date of publication of this notice.
NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of the publication of this notice is provided by law during which (i) any person in interest shall have the right to contest the legality of the Resolution, the Indenture (as it pertains to the Series 2017 Bonds), or the Series 2017 Bonds, or any provision made for the security and payment of the Series 2017 Bonds, and that after such time, no one shall have any cause of action to contest the regularity, formality, or legality thereof for any cause whatsoever and (ii) registered voters within Midvale City, Utah may sign a written petition requesting an election to authorize the issuance of the Series 2017 Bonds. If written petitions which have been signed by at least 20% of the registered voters of Midvale City, Utah are filed with the Issuer during said 30-day period, the Issuer shall be required to hold an election to obtain voter authorization prior to the issuance of the Series 2017 Bonds. If fewer than 20% of the registered voters of Midvale City, Utah file a written petition during said 30-day period, the Issuer may proceed to issue the Series 2017 Bonds without an election.
DATED this February 7, 2017.
/s/ Rori Andreason
Tuesday, February 07, 2017