Adopt Proposed Debt Ordinance

NOTICE BOROUGH OF MOOSIC

     SUMMARY OF DEBT ORDINANCE

NOTICE IS HEREBY GIVEN that at a public meeting of the Council of the Borough of Moosic to be held at Main Street, Moosic, Pa at 7:00 p.m., prevailing local time, on June 14, 2022, the Council will consider the adoption of an Ordinance (the “Ordinance”) authorizing the incurring of nonelectoral debt by the Borough for the purpose of issuing general obligation note(s) to provide funds for purchase, planning, designing, constructing, and renovating for the purpose of construction a new police station and certain payments to the Volunteer Fire Company for land and a building to be used in coordination with a Federal grant for a combined police and fire station in the Borough of Moosic,; and (2) paying for the cost of issuance of the hereinafter-defined Note(the “Project”).

The following is a summary of the provisions of the Ordinance:

The ordinance Approves the Project and determines it to be in the best interest of the Borough to incur debt, authorizes the incurring of nonelectoral debt to be evidenced by an issue of General Obligation Note of the Borough, Series of 2022 in an aggregate principal amount of up to $1,000,000.00, specifies the Note as a general obligation note, specifies the indebtedness as non-electoral, authorizes and directs the execution of the Note by the President of Council or the Vice-president, provides a form of the Note, establishes a Sinking Fund in respect of the Note, specifies a useful life of the Project, authorizes the Council to take such action as may be incidental to the issuance of the Note including the filing with Pennsylvania Department of Community and Economic Development the Ordinance, Debt Statement and a Borrowing Base Certificate and purchase agreement, providing the Note is a qualified Tax Exempt Obligation, authorizes and directs the execution of any contracts necessary with the sinking fund depository, provides for the acceptance of a purchase proposal from Fidelity Deposit & Discount Bank and authorizes delivery of the Note to the purchaser upon receipt of the accepted purchase price and upon compliance with all conditions precedent to such delivery and further authorizes the appropriate offices to execute any and all documents, pledges the full faith and credit of the Borough for the payment thereof,  provides that the Borough will not assume the payment of any taxes in consideration of the purchase, states that the Borough covenants that it will make no investment or other use of the proceeds of the Notes or take any other actions which would cause the Notes to be arbitrage Notes within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and that the County will comply with the requirements of such Code that must be met in order that interest on the Notes not be included in gross income for federal income tax purposes and provides for execution of certain related documents, provides for the deposit of the Note proceeds in appropriate accounts for the purpose of payment on the Project, Authorizes officers of the Borough to take such further actions and to execute, file and deliver such other documents as they deem necessary  or appropriate to effectuate settlement on the Notes and to comply with the Purchase Contract and requirement of the Local Government Unit Debt Act, provides the ordinance is a contract with the note holders, provides for a severability clause, provides for a repealer clause and provides an effective date. The funds to be obtained from the borrowing will be used for the following purposes: rehabilitation and repair of the Borough municipal building located at 715 Main Street, Moosic Pennsylvania.

A copy of the Ordinance summarized above may be examined by any citizen during regular business hours (9:00 a.m. to 4:00 p.m., prevailing local time) in the office of the Secretary of the Borough of Moosic, 715 Main Street, Moosic, Pennsylvania.

The Ordinance currently on file omits certain details which have not yet been ascertained.  If the Ordinance is adopted, a notice of adoption thereof, including a summary of the omitted details, a statement of the exact principal amount of the Notes, the range of interest rates of the Note and the price to be paid for the Note, all of which will be determined at the meeting and will be inserted in the Ordinance prior to adoption, and also including any amendments to the Ordinance during final passage, will be advertised after adoption and made available for examination by any citizen in accordance with the Act.

                                  Moosic Borough