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Bill No. 08054300.pdf
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City of Philadelphia
*Information on file in Room 402 City Hall.
City of Philadelphia - 1 -
City Council
Chief Clerk's Office
402 City Hall
Philadelphia, PA 19107
BILL NO. 080543
Introduced June 5, 2008
Councilmember Tasco
for
Council President Verna
(By Request)*
Referred to the
Committee on Finance
AN ORDINANCE
Authorizing the creation of a loan or loans to provide funds for and toward various
capital municipal purposes; authorizing the Mayor, City Controller and City Solicitor or a
majority of them to sell bonds at public or private negotiated sale; setting forth the capital
purposes and the amounts for which the proceeds of the loan or loans will be expended,
including reimbursement of City capital expenditures; providing for the maturities and
for other terms and conditions and for the form of the bonds; providing that certain bonds
may be redeemable prior to maturity; providing sinking funds for the bonds and for
appropriations to the Sinking Fund Commission for the payment thereof; authorizing
agreements to provide credit or payment or liquidity sources for the bonds and interest
rate swaps in connection with issuance of the bonds, and certain other actions; providing
for obtaining the consent of the electors to increasing the indebtedness of the City of
Philadelphia; and fixing a day for holding the election for obtaining such consent and
providing for the arrangements for holding such election.
WHEREAS, the Council desires by this Ordinance to authorize the creation of a
loan or loans for the purpose of financing new capital projects and expenditures of the
City, including reimbursing City capital expenditures previously made in connection with
the identified capital projects, subject to the approval of the electors; now therefore
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. The Mayor, City Controller and City Solicitor, or a majority of them
(in this Ordinance called the "Bond Committee"), are hereby authorized on behalf of the
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City to borrow, by the issuance and sale of general obligation bonds of the City for the
payment of which the full faith, credit and taxing power of the City shall be pledged, a
sum or sums which in the aggregate, shall not exceed FIFTY THREE MILLION EIGHT
HUNDRED FORTY THOUSAND DOLLARS ($53,840,000), to be expended as
provided in Section 2 of this Ordinance; provided, however, that the authority to increase
the City's indebtedness as herein contained shall not be effective unless the electors shall
give their consent thereto at a public election to be held on Tuesday, November 4, 2008
and the results of such election shall have been filed in and certified by the Office of
Prothonotary. Each issue of bonds authorized by this Ordinance may be sold at a private
negotiated sale, or at a public sale to the highest responsible bidder as authorized by law,
at such price and upon such other terms and conditions not inconsistent with this
Ordinance and other applicable law as the Bond Committee shall prescribe; provided,
however, that prior to a private negotiated sale of any bonds pursuant to this Ordinance,
the Council shall adopt a resolution which finds that private negotiated sale is in the best
financial interest of the City.
SECTION 2. The monies raised by the loan or loans authorized by Section 1 of this
Ordinance shall be used as authorized by the Act of June 15, 1915, P.L. 846, Section 1
(53 P.S. §15782) to provide capital funds for and toward the acquisition of interests in
real estate, property and equipment and the extension, construction and improvement of
facilities and other capital expenditures, including reimbursement of City capital
expenditures, for the following purposes, and in amounts not to exceed, as follows:
Transit $ 3,401,000
Streets and Sanitation $ 10,935,000
Municipal Buildings $ 24,858,000
City of Philadelphia
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Parks, Recreation and Museums $ 11,753,000
Economic and Community Development $ 2,893,000
Total $ 53,840,000
Provided, that with the approval of Council so much of the total loan or loans as it
may not be practical, advisable or desirable to use for any of the forgoing purposes may
be used for any of the other purposes listed.
SECTION 3. The date of each issue of bonds authorized under this Ordinance, the
determination whether to issue such bonds in different series, the maturities of such
bonds or series of bonds, the provision for payments into the sinking fund created by
Section 4 hereof, which payments must be in equal or graded annual or other periodic
installments, commencing as to at least one series on a date not more than one and one-
half (1-1/2) years from the date of such bonds, and the other terms, conditions, provisions
and details thereof, within the requirements and limitations of this Ordinance, shall be
determined by the Bond Committee, or as applicable, may be specified in the purchase
proposal of the successful bidder or bidders for the bonds responsive to specifications of
the bidding. The bonds of each issue shall be in the denominations of five thousand
dollars ($5,000) or any whole multiple thereof or such larger amounts as may be
determined by the Bond Committee, shall be in fully registered form, and shall be
substantially in the form provided for serial issues of the City by Section 19-301 (1)(b) of
The Philadelphia Code as the same may from time to time be amended, with such
modifications as may be required to express the terms and conditions authorized by this
Ordinance; provided, however, that the Bond Committee is hereby also authorized to
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issue all or part of each issue authorized by this Ordinance in such other form (including
book entry securities) or combination of forms as the Bond Committee shall determine.
The bonds shall bear interest from the date thereof at prescribed rates, including
variable rates (not exceeding any limitation prescribed by law) payable initially on a date
not more than nine (9) months from the date of the bonds and weekly, monthly, quarterly
or semi-annually or annually thereafter to maturity or prior redemption, if any; may be
subject to redemption prior to maturity at the option of the City, either as a whole or from
time to time in part, or be subject to mandatory redemption, on prescribed dates, at
prescribed prices, not less than par, and, in respect of partial redemption, by lot or by
prescribed order and within orders by lot; and shall be payable as to both principal and
interest at the Office of the City's Fiscal Agent in the lawful money of the United States.
If bonds of any issues shall be subject to redemption prior to maturity, such redemption
shall be made only after mailing notice of redemption to the registered owners of bonds
at the owner's address on the registry of the Fiscal Agent not less than ten (10) nor more
than forty-five (45) days prior to the date fixed for redemption.
SECTION 4. There is hereby created a sinking fund to be administered by the
Sinking Fund Commission for the payment of the principal of and interest on the bonds
of each issue authorized by this Ordinance. The City covenants that in each year in
which such issue of bonds shall be outstanding there shall be appropriated from the tax
and other general revenues of the City to the Sinking Fund Commission for deposit to the
credit of each such sinking fund a sum at least equal to the interest on and the principal of
such bonds as the same becomes due and payable. The amounts of such appropriations
shall be paid over on the respective due dates of required sinking fund payments for such
principal and interest. The City also covenants that in each year the Agreements (defined
City of Philadelphia
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in Section 5) are outstanding it shall appropriate from the tax and other revenues of the
City sufficient funds to meet its obligations as they become due under the Agreements.
The City covenants that, so long as any bonds issued by virtue of this Ordinance
shall remain unpaid, it will make payments out of its sinking fund or any other of its
general revenues or funds at such times and in such annual amounts as shall be sufficient
for the payment of the interest thereon and the principal thereof when due, and so long as
the Agreements are outstanding, it will make payments out of its general revenues or
funds at such time and in such amounts as shall be sufficient to pay the City's obligations
under the Agreements.
SECTION 5. The Bond Committee is authorized on behalf of the City to enter into
agreements (the "Agreements") with any bank, insurance company or other appropriate
entity providing credit or payment or liquidity sources for the bonds, including, without
limitation, letters of credit, lines of credit and insurance, and to enter into interest rate
swap agreements in connection with the issuance of the bonds. Such Agreements may
provide for payment or acquisition of the bonds if the City does not pay the bonds when
due and may provide for repayment to the bank or other institution from the date of such
payment or acquisition. The Bond Committee is authorized to take any and all other
actions as may be necessary to effect this Ordinance.
SECTION 6. For the purpose of obtaining the consent of the electors to the increase
of the City's indebtedness in the sum of FIFTY THREE MILLION EIGHT HUNDRED
FORTY THOUSAND DOLLARS ($53,840,000), as authorized in Section 1, the Council
by its Clerk, shall after the passage of this Ordinance, give notice by advertisement once
a week for three (3) weeks in each of two (2) daily newspapers having a bona fide
circulation in Philadelphia of at least thirty thousand (30,000) copies per issue and also in
City of Philadelphia
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City of Philadelphia - 6 -
the Legal Intelligencer of an election to be held on Tuesday, November 4, 2008 for the
purpose of obtaining such consent. The notice of advertisement shall contain a summary
of the provisions of each section of this Ordinance and shall also set forth a certificate of
the City Controller as required by the Act of June 25, 1919, P.L. 581, Article XVIII,
Section 5, as amended (53 P.S. §12585).
SECTION 7. The proper officers are hereby authorized and directed to prepare and
distribute the necessary voting equipment and paraphernalia, and to take such action as
may be required for the holding of said election as provided for in the laws of the
Commonwealth of Pennsylvania governing the increase of indebtedness of cities of the
first class and holding elections thereof.