NOTICE TO THE TAXPAYERS AND RESIDENTS
OF THE BOROUGH OF MOOSIC
LACKAWANNA COUNTY, PENNSYLVANIA
SETTING FORTH ITS INTENT TO ISSUE A GENERAL OBLIGATION NOTE, SERIES OF 2023, IN THE PRINCIPAL AMOUNT OF ONE MILLION FIVE Hundred Thousand Dollars ($1,500,000)
NOTICE IS HEREBY GIVEN that the Council (the “Council”) of the Borough of Moosic, Lackawanna County, Pennsylvania (the “Borough”), at a meeting to be held not less than three (3) nor more than thirty (30) days as calculated from the date of publication of this Notice, proposes to enact an Ordinance authorizing, among other things, the incurrence of nonelectoral indebtedness of the Borough to be evidenced by a certain general obligation note of the Borough (the “Note”).
The caption and summary of the Ordinance to be considered by the Council at such meeting is as follows:
A ORDINANCE OF THE COUNCIL OF THE BOROUGH OF MOOSIC, LACKAWANNA COUNTY, PENNSYLVANIA, SETTING FORTH ITS INTENT TO ISSUE A GENERAL OBLIGATION NOTE, SERIES OF 2023, IN THE PRINCIPAL AMOUNT OF ONE MILLION FIVE Hundred Thousand Dollars ($1,500,000) PURSUANT TO THE ACT OF THE GENERAL ASSEMBLY OF THE COMMONWEALTH OF PENNSYLVANIA, 53 Pa.C.S. Chapters 80-82, as amended, reenacted and supplemented, KNOWN AS THE LOCAL GOVERNMENT UNIT DEBT ACT (THE “ACT”); FINDING THAT A PRIVATE SALE BY NEGOTIATION IS IN THE BEST FINANCIAL INTEREST OF THE BOROUGH; DETERMINING THAT SUCH NOTE SHALL EVIDENCE NONELECTORAL DEBT OF THE BOROUGH; SPECIFYING THAT SUCH INDEBTEDNESS IS TO BE INCURRED TO PROVIDE FUNDS TO FINANCE A PROJECT OF THE BOROUGH CONSISTING OF all or any of the following: (1) planning, designing, acquiring, constructing, installing, furnishing and equipping of NEW FACILITIES AND improvements and renovations to EXISTING facilities of the Borough; (2) purchasing capital equipment for use by the Borough; (3) additional capital projects of the Borough to the extent approved by the Council of the Borough; and (4) paying the costs and expenses of issuance of the Note; SETTING FORTH THE REASONABLE ESTIMATED USEFUL LIFE OF THE PROJECT TO BE FINANCED BY THE NOTE; ACCEPTING A PROPOSAL FOR THE PURCHASE OF SUCH NOTE AT PRIVATE SALE BY NEGOTIATION; PROVIDING THAT SUCH NOTE, WHEN ISSUED, SHALL CONSTITUTE A GENERAL OBLIGATION OF THE BOROUGH; FIXING THE DENOMINATION, DATED DATE, INTEREST PAYMENT DATES, INTEREST RATES, REDEMPTION PROVISIONS AND PLACE OF PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH NOTE; AUTHORIZING SPECIFIED OFFICERS OF THE BOROUGH TO CONTRACT WITH THE PAYING AGENT FOR ITS SERVICES IN CONNECTION WITH THE NOTE; SETTING FORTH THE SUBSTANTIAL FORM OF THE NOTE EVIDENCING THE DEBT; AUTHORIZING EXECUTION AND ATTESTATION OF SUCH NOTE; PROVIDING COVENANTS RELATED TO DEBT SERVICE APPLICABLE TO SUCH NOTE TO THE EXTENT REQUIRED BY THE ACT AND PLEDGING THE FULL FAITH, CREDIT AND TAXING POWER OF THE BOROUGH IN SUPPORT THEREOF; CREATING A SINKING FUND IN CONNECTION WITH SUCH NOTE, TO THE EXTENT REQUIRED BY THE ACT; DESIGNATING THE PAYING AGENT TO BE THE SINKING FUND DEPOSITARY; PROVIDING A COVENANT TO INSURE PROMPT AND FULL PAYMENT FOR SUCH NOTE WHEN DUE; SETTING FORTH REGISTRATION AND TRANSFER PROVISIONS WITH RESPECT TO SUCH NOTE; AUTHORIZING AND DIRECTING SPECIFIED OFFICERS OF THE BOROUGH TO DO, TO TAKE AND TO PERFORM CERTAIN SPECIFIED, REQUIRED, NECESSARY OR APPROPRIATE ACTS TO EFFECT THE ISSUANCE OF THE NOTE, INCLUDING, WITHOUT LIMITATION, THE PREPARATION OF A DEBT STATEMENT AND BORROWING BASE CERTIFICATE, AND THE FILING OF SPECIFIED DOCUMENTS WITH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT, ALL AS REQUIRED BY THE ACT; DECLARING THAT THE DEBT TO BE EVIDENCED BY SUCH NOTE, TOGETHER WITH ALL OTHER INDEBTEDNESS OF THE BOROUGH, WILL NOT BE IN EXCESS OF ANY APPLICABLE LIMITATION IMPOSED BY THE ACT; AUTHORIZING PROPER OFFICERS OF THE BOROUGH TO DELIVER THE NOTE UPON THE APPROVAL OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT; SETTING FORTH CERTAIN COVENANTS PRECLUDING THE BOROUGH FROM TAKING ACTIONS WHICH WOULD CAUSE THE NOTE TO BECOME AN “ARBITRAGE BOND” OR A “PRIVATE ACTIVITY BOND” AS THOSE TERMS ARE USED IN THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AND APPLICABLE REGULATIONS PROMULGATED THEREUNDER; DESIGNATING THE NOTE AS A “QUALIFIED TAX-EXEMPT OBLIGATION” UNDER SECTION 265(b) OF THE CODE; AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION AND DELIVERY OF ALL OTHER REQUIRED DOCUMENTS AND THE TAKING OF ALL OTHER REQUIRED ACTION; PROVIDING WHEN THIS ORDINANCE SHALL BECOME EFFECTIVE; PROVIDING FOR SEVERABILITY OF PROVISIONS; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES INSOFAR AS THE SAME SHALL BE INCONSISTENT HEREWITH.
A copy of the full proposed text of the Ordinance described above, which includes a copy of the substantial form of the Note evidencing the nonelectoral indebtedness to be incurred by the Borough, may be examined by any citizen at the office of the Secretary of the Borough, located at the Moosic Borough Municipal Building, 715 Main Street, Moosic, PA 18507, on regular business days (Monday through Friday) between the hours of 8:30 a.m. and 4:00 p.m. prevailing time.
The Ordinance currently on file will be completed by insertion of certain information and will be amended prior to enactment by the Council to reflect the details of the proposal for the purchase of such indebtedness (the “Proposal”) presented to the Council at such meeting by the Purchaser of the Note. The Ordinance may be amended in any other respect upon final enactment by the Council as the Council may deem necessary or appropriate or as may be required by the Proposal presented at such meeting.
THE ORDINANCE CURRENTLY ON FILE, AMONG OTHER THINGS, ESTIMATES THE PRINCIPAL AMOUNT OF THE NONELECTORAL INDEBTEDNESS TO BE INCURRED BY THE BOROUGH WILL BE $1,500,000; HOWEVER, SUCH AMOUNT MAY BE INCREASED OR DECREASED PRIOR TO FINAL ENACTMENT.
If the Ordinance is enacted, a notice of enactment, including a summary of any omitted details (including the amount of indebtedness to be incurred and the principal amount of the Note to be issued, the purchase price for the Note, the interest rate to be borne by the Note, the maturity dates and redemption provisions of the Note, and a summary of any other amendments made on final enactment) will be advertised after enactment and posted in accordance with the provisions of the Local Government Unit Debt Act.
This Notice is published in compliance with the Local Government Unit Debt Act of the Commonwealth of Pennsylvania.
Secretary
Borough of Moosic,
Lackawanna County, Pennsylvania