September 21, 2014
BOND ORDINANCE PROVIDING FOR THE ACQUISITION OF A LEASEHOLD INTEREST IN THE BUTLER HIGH SCHOOL IN AND BY THE BOROUGH OF BUTLER, IN THE COUNTY OF MORRIS, NEW JERSEY, APPROPRIATING $220,000 THEREFOR AND AUTHORIZING THE ISSUANCE OF $209,500 BONDS OR NOTES OF THE BOROUGH FOR FINANCING SUCH APPROPRIATION.
BE IT ORDAINED BY THE BOROUGH COUNCIL OF THE BOROUGH OF BUTLER, IN THE COUNTY OF MORRIS, NEW JERSEY (not less than two-thirds of all the members thereof affirmatively concurring), AS FOLLOWS:
Section 1.The improvement described in Section 3 of this bond ordinance is hereby authorized as a general improvement to be made or acquired by The Borough of Butler, New Jersey. For the said improvement or purpose stated in said Section 3, there is hereby appropriated the sum of $220,000, said sum being inclusive of all appropriations heretofore made therefor and including the sum of $10,500 as the down payment for said improvement or purpose required by law and now available therefor by virtue of provision in a previously adopted budget or budgets of the Borough for down payment or for capital improvement purposes.
Section 2.For the financing of said improvement or purpose and to meet the part of said $220,000 appropriation not provided for by application hereunder of said down payment, negotiable bonds of the Borough are hereby authorized to be issued in the principal amount of $209,500 pursuant to the Local Bond Law of New Jersey. In anticipation of the issuance of said bonds and to temporarily finance said improvement or purpose, negotiable notes of the Borough in a principal amount not exceeding $209,500 are hereby authorized to be issued pursuant to and within the limitations prescribed by said Local Bond Law.
Section 3.(a) The improvement hereby authorized and purpose for the financing of which said obligations are to be issued is the acquisition of a five-year leasehold interest in real property known as the Butler High School located at 38 Bartholdi Avenue in the Borough in order to provide for the renovation of bathrooms therein for ADA compliance, including acquisition and installation of equipment and related costs, to be undertaken jointly by the Borough and the Board of Education as a shared services project for municipal and school district purposes for the benefit of the Borough, the Board of Education and the community and all in accordance with and pursuant to a Ground Lease Agreement and Lease Purchase Agreement, each by and between the Borough and the Butler Board of Education, which agreements will provide for, among other things, the right of the Borough to use the Butler High School at certain times and for certain purposes, including without limitation for purposes of after school activities and recreational and community programs of the Borough.
Section 4.The estimated maximum amount of bonds or notes to be issued for said purpose is $209,500.
Section 5.The following additional matters are hereby determined, declared, recited and stated:
- The estimated cost of said purpose is $220,000, the excess thereof over the said estimated maximum amount of bonds or notes to be issued therefor being the amount of the said $10,500 down payment for said purpose.
Section 6.All bond anticipation notes issued hereunder shall mature at such times as may be determined by the Chief Financial Officer, provided that no note shall mature later than one year from its date. The notes shall bear interest at such rate or rates and be in such form as may be determined by the Chief Financial Officer. The Chief Financial Officer shall determine all matters in connection with the notes issued pursuant to this bond ordinance, and the Chief Financial Officer’s signature upon the notes shall be conclusive evidence as to all such determinations. All notes issued hereunder may be renewed from time to time subject to the provisions of N.J.S.A. §40A:2-8. The Chief Financial Officer is hereby authorized to sell part or all of the notes from time to time at public or private sale and to deliver them to the purchasers thereof upon receipt of payment of the purchase price plus accrued interest from their dates to the dates of delivery thereof. The Chief Financial Officer is directed to report in writing to the governing body of the Borough at the meeting next succeeding the date when any sale or delivery of the notes pursuant to this bond ordinance is made. Such report must include the principal amount, interest rate and maturities of the notes sold, the price obtained and the name of the purchaser.
- The said purpose described in Section 3 of this bond ordinance is not a current expense and is a property or improvement which the Borough may lawfully acquire or make as a general improvement, and no part of the cost thereof has been or shall be specially assessed on property specially benefitted thereby.
- The period of usefulness of said purpose within the limitations of said Local Bond Law, according to the reasonable life thereof computed from the date of the said bonds authorized by this bond ordinance, is five (5) years.
- The supplemental debt statement required by said Local Bond Law has been duly made and filed in the office of the Borough Clerk and a complete executed duplicate thereof has been filed in the office of the Director of the Division of Local Government Services in the Department of Community Affairs of the State of New Jersey, and such statement shows that the gross debt of the Borough as defined in said Local Bond Law is increased by the authorization of the bonds and notes provided for in this bond ordinance by $209,500, and the said obligations authorized by this bond ordinance will be within all debt limitations prescribed by said Local Bond Law.
- An aggregate amount not exceeding $10,000 for interest on said obligations, costs of issuing said obligations and other items of expense listed in and permitted under section 40A:2-20 of said Local Bond Law may be included as part of the cost of said improvement and is included in the foregoing estimate thereof.
Section 7.The full faith and credit of the Borough are hereby pledged to the punctual payment of the principal of and interest on the said obligations authorized by this bond ordinance. Said obligations shall be direct, unlimited obligations of the Borough, and the Borough shall be obligated to levy ad valorem taxes upon all the taxable property within the Borough for the payment of said obligations and interest thereon without limitation of rate or amount.
Section 8.The capital budget or temporary capital budget of the Borough is hereby amended to conform with the provisions of this ordinance to the extent of any inconsistency herewith and the resolutions promulgated by the Local Finance Board showing all detail of the amended capital budget or temporary capital budget and capital program as approved by the Director, Division of Local Government Services, are on file with the Borough Clerk and are available for public inspection.
Section 9.The form and substance of the Ground Lease Agreement and the Lease Purchase Agreement, each by and between the Borough and the Butler Board of Education presented at this meeting and on file in the office of the Borough Clerk, are hereby approved. The Mayor, Administrator, Chief Financial Officer and Clerk of the Borough are hereby each authorized and directed to execute and deliver the Ground Lease Agreement and the Lease Purchase Agreement in substantially the forms presented at this meeting with such changes, insertions and omissions as may be approved by such official after consultation with counsel or bond counsel to the Borough. Such officials are each authorized and directed to take such further action and to execute such other instruments, certificates and documents as may be useful, convenient or desirable in connection with such agreements and the improvement authorized by this bond ordinance.
Section 10.This bond ordinance shall take effect twenty (20) days after the first publication thereof after final adoption, as provided by said Local Bond Law.
Introduced this 17 day of