CITY of ALBUQUERQUE
TWENTY-SECOND COUNCIL
COUNCIL BILL NO. F/S O-17-36 ENACTMENT NO. __________________
SPONSORED BY: Don Harris, by request
ORDINANCE
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F/S Authorizing The Issuance And Sale Of $34,107,000 City Of Albuquerque, New Mexico General Obligation Bonds, Consisting Of $22,850,000 General Purpose General Obligation Bonds, Series 2017A, And $11,257,000 Short-Term General Obligation Bonds, Series 2017B, Authorized At An Election Of The City Held On October 6, 2015 To Finance Projects Relating To Public Safety, Citizens’ Centers, Parks And Recreation, Facilities And Equipment, Library, Public Transportation, Zoo, Biological Park And Museum Facilities, Storm Sewers, And Streets (Harris, by request)
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AUTHORIZING THE ISSUANCE AND SALE OF $34,107,000 CITY OF ALBUQUERQUE, NEW MEXICO GENERAL OBLIGATION BONDS, CONSISTING OF $22,850,000 GENERAL PURPOSE GENERAL OBLIGATION BONDS, SERIES 2017A, AND $11,257,000 SHORT-TERM GENERAL OBLIGATION BONDS, SERIES 2017B, AUTHORIZED AT AN ELECTION OF THE CITY HELD ON OCTOBER 6, 2015 TO FINANCE PROJECTS RELATING TO PUBLIC SAFETY, CITIZENS’ CENTERS, PARKS AND RECREATION, FACILITIES AND EQUIPMENT, LIBRARY, PUBLIC TRANSPORTATION, ZOO, BIOLOGICAL PARK AND MUSEUM FACILITIES, STORM SEWERS, AND STREETS; PROVIDING FOR THE LEVY AND COLLECTION OF AD VALOREM TAXES FOR THE PAYMENT OF THE SERIES 2017 BONDS; PROVIDING FOR THE FORMS, TERMS, PURCHASE, PAYMENT, EXECUTION AND OTHER PROVISIONS OF AND CONCERNING THE SERIES 2017 BONDS; PROVIDING FOR THE AWARD AND SALE OF THE SERIES 2017A BONDS TO THE PURCHASER THEREOF; AUTHORIZING THE SALE OF THE SERIES 2017B BONDS TO THE STATE OF NEW MEXICO; PRESCRIBING OTHER DETAILS IN CONNECTION WITH THE SERIES 2017 BONDS AND THE PAYMENT THEREOF; AND RATIFYING PRIOR ACTION TAKEN IN CONNECTION THEREWITH.
Capitalized words used in the following preambles are defined in Section 1 of this Bond Ordinance, unless the context requires otherwise.
WHEREAS, the City is a legally and regularly created, established, organized and existing municipal corporation under the general laws of the State and its Charter, as amended; and
WHEREAS, the City has Home Rule Powers; and
WHEREAS, as a result of the affirmative vote of the qualified electors authorized to vote at the municipal election held on October 6, 2015 (the “2015 Election”), the City was given the authority to issue general obligation bonds in the principal amounts stated in the Bond Schedule under the column entitled “Authorized at 2015 Election” (the “Authorized Bonds”):
BOND SCHEDULE
GENERAL PURPOSE Authorized at Series 2017
BONDS 2015 Election Financing
Public Safety $12,900,000 $3,815,000
Citizens' Centers and Community Enhancement 12,160,000 5,570,000
Parks and Recreation 10,710,000 3,060,000
Facilities & Equipment 11,375,000 5,705,000
Library 8,685,000 4,085,000
Public Transportation 4,445,000 217,000
Affordable Housing 4,495,000 -0-
Streets 33,675,000 3,675,000
Metropolitan Redevelopment 2,375,000 -0-
Zoo, Bio Park and Museum Facilities 3,940,000 240,000
SUBTOTAL $104,760,000 $26,367,000
Storm Sewer 14,240,000 7,740,000
TOTAL $119,000,000 $34,107,000
WHEREAS, the City desires to issue part of the Authorized Bonds sufficient to finance the projects described in the Bond Schedule above under the column entitled “Series 2017 Financing” (the “Series 2017 Bonds”); and
WHEREAS, the Council desires to authorize the issuance and sale of the Series
2017 Bonds; and
WHEREAS, it is essential to proceed with the City’s capital improvement programs by issuing and selling the Series 2017A Bonds at competitive sale and by issuing and selling the Series 2017B Bonds at private sale to the State of New Mexico to fund the Series 2017 Bond Projects; and
WHEREAS, pursuant to the Series 2017 Series A Bond Notice, which was given as required by law, unconditional bids for the purchase of the Series 2017A Bonds were reviewed and examined on March 6, 2017; and
WHEREAS, it is in the best interests of the City to sell the Series 2017A Bonds to the Purchaser in accordance with the terms set forth in the Bond Ordinance; and
WHEREAS, Section 6-15-5 NMSA 1978 and Section 6-15-10 NMSA 1978 authorize municipalities to sell general obligation bonds to the State of New Mexico at the price and terms agreed upon by the municipality and the State; and
WHEREAS, it is in the best interests of the City to sell the Series 2017B Bonds to the State of New Mexico in a negotiated sale on the terms set forth in the Bond Ordinance; and
WHEREAS, all required authorizations, consents or approvals of any state governmental body, agency or authority in connection with the authorization, execution and delivery of the Series 2017 Bonds required as of the date of the adoption of the Bond Ordinance have been obtained and those required to be obtained prior to the date of the delivery of any Series 2017 Bonds will be obtained by the date of delivery of the Series 2017 Bonds; and
WHEREAS, the Preliminary Official Statement, the form of the Continuing Disclosure Undertaking (attached as Appendix D to the Preliminary Official Statement), the form of Official Statement and a form of Bond Purchase Agreement with respect to the Series 2017B Bonds have been on deposit with the City Clerk and presented to City Council;
BE IT ORDAINED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ALBUQUERQUE:
SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION.
(A) DEFINITIONS. As used in the Bond Ordinance, the following terms shall have the meanings specified unless the context clearly requires otherwise:
ACT. Sections 3-30-1 to 3-30-9 NMSA 1978, Sections 6-15-1 to 6-15-22 NMSA 1978, the Public Securities Short-Term Interest Rate Act, being Sections 6-18-1 to 6-18-16 NMSA 1978, as amended, the City Charter, the Home Rule Powers and the Bond Ordinance.
AUTHORIZED AT 2015 ELECTION. The amount of debt authorized at the 2015 Election to be incurred by the City for each separate project listed in the Bond Schedule.
AUTHORIZED DENOMINATIONS. Denominations of $5,000 and integral multiples of $5,000 for the Series 2017A Bonds; provided however that the Series 2017B Bonds may be sold in such odd lot denominations as an Authorized Officer of the City may determine.
AUTHORIZED OFFICER. The City’s Mayor, Chief Administrative Officer, Director of Department of Finance and Administrative Services, Treasurer, or other officer or employee of the City when designated by a certificate signed by the Mayor of the City from time to time.
BEST BID - Series 2017A Bonds. The following bids of the Purchaser for the Series 2017A Bonds: the principal amount of $22,850,000.00 for the Series 2017A Bonds, plus a net premium of $2,547,892.20, bearing interest at the rates set forth in Section 5(D) of the Bond Ordinance. The true interest cost for the Series 2017A Bonds, taken as a whole and stated as a percentage, is 2.46501%; and the total interest cost for the Series 2017A Bonds stated in dollars is $6,779,744.44. The net effective interest rate on Series 2017A Bonds is less than 10% per annum.
BOND COUNSEL. An attorney or attorneys at law or firm or firms of attorneys, designated by the City, of nationally recognized standing in matters pertaining to the issuance of, and the tax-exempt nature of interest on, bonds issued by states and their political subdivisions.
BOND ORDINANCE. This ordinance, being City Ordinance Twenty-Second Council Bill No. F/S O-17-36, as amended or supplemented from time to time.
BOND PURCHASE AGREEMENT (2017B). The agreement between the City and the State pursuant to which the Series 2017B Bonds will be sold to the State.
BOND SCHEDULE. The schedule in the preambles to the Bond Ordinance specifying the aggregate of the indebtedness authorized at the 2015 Election and the indebtedness for each Series 2017 Bond Project authorized at the 2015 Election.
BUSINESS DAY. Any day other than (i) a Saturday or Sunday or (ii) any day on which the offices of the City or the offices of banks located in the cities in which the principal offices of the Paying Agent and Registrar are located are authorized or required to remain closed or (iii) a day on which the New York Stock Exchange is closed.
CITY. The City of Albuquerque, in the County of Bernalillo and State of New Mexico.
CONTINUING DISCLOSURE UNDERTAKING. The agreement of the City pursuant to which the City will agree for the benefit of Owners and beneficial owners that, while the Series 2017A Bonds are Outstanding, the City will annually provide certain financial information and operating data and will provide notice of certain material events.
COUNCIL. The Council, the governing body of the City, and any successor thereto.
DEFEASANCE OBLIGATIONS. (1) Government Obligations or; (2) if permitted by law, other obligations which would result in defeased Series 2017 Bonds receiving the same rating from any national rating agency then rating those Series 2017 Bonds as would have been received if the obligation described in clause (1) of this definition had been used.
DEPOSITORIES. The following registered securities depository: The Depository Trust Company, 570 Washington Boulevard, Jersey City, New Jersey 07310, http://www.dtcc.com; or in accordance with then-current guidelines of the Securities and Exchange Commission, to such other addresses and/or such other securities depositories, or no such depositories, as an Authorized Officer may designate in a certificate of the City.
EXPENSES. The reasonable and necessary fees, costs and expenses incurred by the City in connection with the issuance of the Series 2017 Bonds including, without limitation, costs of advertising and publication of the Bond Ordinance, costs of printing the Series 2017 Bonds, if any, and any disclosure documents, legal fees and expenses, fees and expenses of the Paying Agent and Registrar, and disclosure matters pertaining or allocable to, the Series 2017 Bonds, and necessary fees and administrative costs of the City relating to the foregoing.
FISCAL YEAR. The twelve-month period used by the City for its general accounting purposes as the same may be changed from time to time, presently being the period beginning July 1 each year and ending June 30 of the next succeeding year.
FITCH: Fitch Ratings, and, if such corporation is dissolved or liquidated or no longer performs the functions of a securities rating agency, another nationally recognized securities rating agency designated by the City, if any.
GOVERNMENT OBLIGATIONS. Direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America or certificates or receipts established by the United States Government or its agencies or instrumentalities representing direct ownership of future interests or principal payments on direct obligations of, or obligations fully guaranteed by, the United States of America or any of its agencies or instrumentalities, the obligations of which are backed by the full faith and credit of the United States, which obligations are held by a custodian in safekeeping on behalf of the holders of such receipts, and rated or assessed in its highest Rating Category by S&P, Moody’s and Fitch, if then rating any of the Series 2017 Bonds.
HOME RULE POWERS. The powers of the City as a home rule city to exercise legislative powers given pursuant to the City Charter adopted by the City pursuant to Article X, Section 6 of the State Constitution and all enactments of the Council relating to the issuance of the Series 2017 Bonds, including the Bond Ordinance.
INTEREST AND SINKING FUND. The fund created herein in Section 18 for the payment of debt service on the Series 2017 Bonds.
INTEREST PAYMENT DATE. For the Series 2017A Bonds, each January 1 and July 1 (or if such day is not a Business Day, then the next succeeding Business Day), beginning January 1, 2018. For the Series 2017B Bonds, July 1, 2017, the maturity date of the Series 2017B Bonds.
MOODY’S. Moody’s Investor’s Service, Inc. and, if such corporation is dissolved or liquidated or no longer performs the functions of a securities rating agency, another nationally recognized securities rating agency designated by the City, if any.
NMSA. New Mexico Statutes Annotated, 1978 Compilation, as amended or supplemented.
OFFICIAL STATEMENT. The final disclosure document relating to the issuance and sale of the Series 2017A Bonds.
OUTSTANDING. When used in reference to bonds, on any particular date, the aggregate of all such bonds issued and delivered under the applicable City ordinance authorizing the issuance of such bonds except:
(1) those canceled at or prior to such date or delivered to or acquired by the City at or prior to such date for cancellation;
(2) those which have been paid or are deemed to be paid in accordance with the City ordinance or resolution authorizing the issuance of the applicable bonds or otherwise relating thereto;
(3) in the case of variable rate bonds, bonds deemed tendered, but not yet presented for payment; and
(4) those in lieu of or in exchange or substitution for which other bonds shall have been delivered, unless proof satisfactory to the City and the paying agent for the applicable bonds is presented that any bond for which a new bond was issued or exchanged is held by a bona fide holder or in due course.
As used in this definition, the term bond includes any evidence of debt.
OWNER. The registered owner or owners of any Series 2017 Bond as shown on the registration books for the Series 2017 Bonds maintained by the Registrar.
PAYING AGENT. The City Treasurer or any trust company, national or state banking association or financial institution qualified to act and appointed as the paying agent for the Series 2017 Bonds by an Authorized Officer from time to time.
PERMITTED INVESTMENTS. Any investment legally permitted pursuant to Section 6-10-10 NMSA 1978, the City Charter and the City Investment Policy.
PRELIMINARY OFFICIAL STATEMENT. The initial disclosure document dated February 24, 2017 relating to the issuance and sale of the Series 2017A Bonds.
PURCHASER. With respect to the Series 2017A Bonds, Hutchinson Shockey Erley & Co., and members of the purchasing syndicate for the Series 2017A Bonds. With respect to the Series 2017B Bonds, the State of New Mexico.
RATING CATEGORY. A generic securities rating category, without regard, in the case of a long-term rating category, to any refinement or gradation of such long-term rating category by a numerical modifier or otherwise.
RECORD DATE. The twenty-fifth day of the calendar month preceding each Interest Payment Date.
REGISTRAR. The City Treasurer or any trust company, national or state banking association or financial institution qualified to act and appointed as the registrar for the Series 2017 Bonds by an Authorized Officer from time to time.
S&P. S&P Global Ratings, a division of S&P Global Inc., its successors and their assigns, and, if such corporation is dissolved or liquidated or no longer performs the functions of a securities rating agency, another nationally recognized securities rating agency designated by the City, if any.
SERIES 2017 BOND NOTICE. The notice of bond sale for publication and the Official Notice of Bond Sale for the Series 2017A Bonds set forth in the Series 2017 Bond Notice Resolution given pursuant to Section 6-15-5 NMSA 1978, as amended.
SERIES 2017 BOND NOTICE RESOLUTION. City Resolution Twenty-Second Council Bill No. F/S R-158, authorizing the giving of notice to receive bids for the sale of the Series 2017A Bonds.
SERIES 2017 BOND PROJECTS. Collectively, the projects to be financed with Series 2017 Bonds, which are listed in Section 4(C).
SERIES 2017 BONDS. The Series 2017A Bonds and the Series 2017B Bonds, which consist of a portion of the 2015 Election Bonds, collectively.
SERIES 2017A BONDS. The Series 2017A Bonds in the original principal amount of $22,850,000 designated as the “City of Albuquerque, New Mexico General Obligation General Purpose Bonds, Series 2017A” authorized to be issued and sold by the Bond Ordinance.
SERIES 2017B BONDS. The Series 2017B Bonds in the original principal amount of $11,257,000 designated as the “City of Albuquerque, New Mexico General Obligation Short-Term Bonds, Series 2017B” authorized to be issued and sold by the Bond Ordinance.
STATE. The State of New Mexico.
2015 ELECTION. The City’s municipal election held on October 6, 2015.
2015 ELECTION BONDS. The general obligation bonds of the City authorized to be issued at the 2015 Election.
(B) RULES OF CONSTRUCTION. For purposes of the Bond Ordinance, unless otherwise expressly provided or unless the context requires otherwise:
(1) All references in the Bond Ordinance to designated Sections and other subdivisions are to the designated Section and other subdivision of the Bond Ordinance.
(2) The words “herein,” “hereof,” “hereunder,” and “herewith” and other words of similar import refer to the Bond Ordinance as a whole and not to any particular Section or other subdivision.
(3) All accounting terms not otherwise defined in the Bond Ordinance have the meaning assigned to them in accordance with generally accepted accounting principles.
(4) Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders.
(5) The headings used in the Bond Ordinance are for convenience of reference only and shall not define or limit the provisions of the Bond Ordinance.
(6) Terms in singular include plural and vice versa.
SECTION 2. RATIFICATION. All action (not inconsistent with the provisions of the Bond Ordinance) previously taken by the Council and the officers of the City directed toward the 2015 Election, the Series 2017 Bond Notice and the authorization, issuance, sale of and bidding process for the Series 2017 Bonds, is ratified, approved and confirmed.
SECTION 3. FINDINGS. The Council declares that it has considered all relevant information and data and makes the following findings:
(A) ADOPTION OF BOND ORDINANCE. The Bond Ordinance has been adopted by the affirmative vote of a majority of the members of the Council present at a regularly scheduled meeting of the Council on the date of adoption. The number of members present constituted a quorum of the Council.
(B) ISSUANCE OF SERIES 2017 BONDS. The issuance of the Series 2017 Bonds under the Act to provide funds to finance the Series 2017 Bond Projects is necessary and in the best interest of the public health, safety, morals and welfare of the residents of the City.
(C) USE OF PROCEEDS OF SERIES 2017 BONDS. The City will acquire, improve and finance the Series 2017 Bond Projects with the proceeds of the Series 2017 Bonds.
SECTION 4. AUTHORIZATION OF SERIES 2017 BOND PROJECTS AND EXPENSES.
(A) SERIES 2017 BOND PROJECTS; PAYMENT OF EXPENSES. The acquisition and construction of the Series 2017 Bond Projects and the payment of Expenses using proceeds of the Series 2017 Bonds in a total aggregate principal amount of $34,107,000 plus net premium of $2,547,892.20 (excluding costs of the Series 2017 Bond Projects to be paid from any source other than the proceeds of the Series 2017 Bonds), is authorized and approved; provided that the total principal amount of Series 2017 Bond proceeds used to finance each Series 2017 Bond Project and related Expenses shall not exceed the amount for that Series 2017 Bond Project stated under the caption “Series 2017 Financing” in the Bond Schedule (excluding costs of that Series 2017 Bond Project to be paid from any source other than the proceeds of the Series 2017 Bonds). Net premium received after payment of Expenses shall be deposited in the Interest and Sinking Fund.
(B) EXPENSES. Expenses relating to the issuance of the Series 2017 Bonds, to the extent payable from the proceeds of the Series 2017 Bonds, including net premium, attributable to each Series 2017 Bond Project shall be payable as set forth in the Bond Ordinance.
(C) DESCRIPTION OF SERIES 2017 BOND PROJECTS. Proceeds of the Series 2017 Bonds shall be used for the following Series 2017 Bond Projects:
(1) $3,815,000 to design, develop, study, construct, modernize, automate, renovate, rehabilitate, recondition, landscape, furnish, enhance, and otherwise improve, and to acquire land, buildings, property, vehicles, apparatus, and equipment for, police and fire department facilities (the “Public Safety Project”);
(2) $5,570,000 to plan, design, develop, construct, demolish, equip, reconstruct, renovate, rehabilitate, expand, repair, study, landscape, streetscape, enhance and otherwise improve, and to acquire property for, City-owned community centers including those for families, youth, senior citizens, and for economic development projects and for infrastructure and/or facility improvements associated with Metropolitan Redevelopment Area projects and for community enhancement projects (the “Citizens’ Center Project”);
(3) $3,060,000 to study, map, plan, design, develop, construct, rehabilitate, renovate, expand, furnish, equip, enhance and otherwise improve and to acquire property, vehicles and equipment for park and recreational facilities, including public parks and facilities within those parks, swimming pools, tennis courts, sports fields and other recreational facilities, open space, medians, bikeways, bosque lands and trails (the “Parks and Recreation Project”);
(4) $5,705,000 to modernize, make energy- and/or water-efficient, upgrade, equip, improve, acquire, design, survey, develop, construct, rehabilitate, renovate, maintain, expand, furnish, enhance, and otherwise improve, and to acquire property, vehicles and equipment for, public buildings, facilities, and systems (the “Facilities and Equipment Project”);
(5) $4,085,000 to acquire property, study, plan, design, develop, construct, reconstruct, renovate, rehabilitate, modernize, preserve, automate, upgrade, landscape and otherwise improve, and to acquire books, media, and equipment for, public libraries (the “Library Project”);
(6) $3,675,000 to study, design, develop, construct, reconstruct, rehabilitate, renovate, automate, modernize, sign, enhance, landscape and otherwise improve, and to acquire property and equipment for municipal streets and roads, interstate roadways and interchanges, medians, trails, bikeways, walkways, sidewalks, railroad crossings, and bridges (the “Street Project”);
(7) $217,000 to design, develop, construct, rehabilitate, renovate, expand, recondition, modernize, automate, study, furnish, enhance and otherwise improve, and to acquire property, vehicles, and equipment for public transportation facilities (the "Public Transportation Project");
(8) $7,740,000 to plan, design, develop, construct, reconstruct, rehabilitate, renovate, expand, extend, enhance, study, monitor and otherwise improve, and to acquire property and equipment for the storm sewer system (the "Storm Sewer System Project");
(9) $240,000 to study, design, develop, construct, reconstruct, rehabilitate, renovate, repair, refurbish, modernize, preserve, maintain, expand, enhance, landscape and otherwise improve, and to acquire artifacts, animals, plant material, exhibits, furnishings and equipment for the Zoo, Tingley Beach, Aquarium, Botanic Garden and/or City-owned museums and cultural facilities (the “Zoo, Biological Park and Museum Project”).
SECTION 5. SERIES 2017 BONDS.
(A) AWARD AND SALE OF SERIES 2017 BONDS. The Council hereby waives irregularities and informalities in the bids for the purchase of the Series 2017A Bonds as permitted by the Series 2017 Bond Notice. The Series 2017A Bonds are sold and awarded to the Purchaser of the Series 2017A Bonds at the purchase price set forth in the definition of Best Bid - Series 2017A Bonds. The Series 2017B Bonds are authorized to be sold to the State of New Mexico at the price and terms set forth in the Bond Purchase Agreement (2017B).
(B) AUTHORIZATION OF THE SERIES 2017 BONDS. For the purpose of protecting the public health, conserving the property, protecting the general welfare and prosperity of the residents of the City and constructing and acquiring the Series 2017 Bond Projects, it is necessary that the City issue, and the City is authorized to issue, pursuant to the Act, its fully registered Series 2017 Bonds in an aggregate principal amount of $34,107,000. The Series 2017 Bonds shall be issued in two series to be designated as “General Obligation General Purpose Bonds, Series 2017A,” and “General Obligation Short-Term Bonds, Series 2017B.” The Series 2017 Bonds shall be dated the respective dates of delivery of the Series 2017 Bonds.
No Series 2017 Bonds Authorized at the 2015 Election shall be issued or sold after June 1, 2018 (three years from the date of the initiation of proceedings for the 2015 Election, that is, three years after the introduction of City Resolution Enactment No. R-2015-059 by the City Council on June 1, 2015), except as permitted by Section 6-15-9, NMSA 1978, as amended from time to time.
(C) GENERAL DETAILS OF SERIES 2017 BONDS. Series 2017 Bonds shall be issued as fully registered bonds, with each series numbered from 1 upwards consecutively and with such other prefixes or other distinguishing designations as the Registrar may determine necessary or appropriate. The Series 2017A Bonds shall be issued in Authorized Denominations. The Series 2017B Bonds may be issued in any denomination.
(D) MATURITIES, PRINCIPAL AMOUNTS AND INTEREST OF SERIES 2017A BONDS. The Series 2017A Bonds shall bear interest from the most recent date to which interest has been paid or provided for or, if no interest has been paid or provided for, from the date of the Series 2017A Bonds until maturity. Interest on the Series 2017A Bonds will be paid on each Interest Payment Date and computed on the basis of a 360-day year, consisting of twelve, 30-day months. If, at maturity, payment of the principal amount of any Series 2017A Bonds is not made as required by the Bond Ordinance, interest on the unpaid principal amount on that Series 2017A Bonds shall continue to accrue at the interest rate stated or described in that Series 2017A Bonds, until the principal amount of that Series 2017A Bonds is paid in full.
Series 2017A Bonds
Years Principal Interest
Maturing Amount Rate
2018 $1,760,000 5.00%
2019 1,760,000 5.00%
2020 1,760,000 5.00%
2021 1,760,000 5.00%
2022 1,760,000 5.00%
2023 1,760,000 5.00%
2024 1,760,000 5.00%
2025 1,760,000 5.00%
2026 1,760,000 5.00%
2027 1,760,000 4.00%
2028 1,760,000 3.00%
2029 1,760,000 3.00%
2030 1,730,000 3.00%
(E) MATURITY, PRINCIPAL AMOUNT AND INTEREST OF SERIES 2017B BONDS. The Series 2017B Bonds shall mature on July 1, 2017 in the principal amount of $11,257,000. The Series 2017B Bonds shall bear interest at a rate equal to the three-month London Interbank Offered Rate ("LIBOR") plus five (5) basis points, as determined by the Director of Finance and Administration in consultation with the office of the State Treasurer prior to the date of delivery of the Series 2017B Bonds, provided, however, that in no event shall the net effective interest rate on the Series 2017B Bonds exceed 10%.
(F) BOOK-ENTRY. The Series 2017A Bonds may be issued, in whole or in part, in book-entry form with no physical distribution of bond certificates made to the public. A Depository will act as securities depository for the Series 2017A Bonds. A single certificate for each maturity date of the Series 2017A Bonds shall be delivered to the Depository and immobilized in its custody. The book-entry system will evidence ownership of the Series 2017A Bonds in Authorized Denominations, with transfers of ownership effected on the books of the Depository and its participants (“Participants”). As a condition to delivery of the Series 2017A Bonds in book-entry form, the Purchaser will, immediately after acceptance of delivery thereof, deposit the Series 2017A Bonds certificates with the Depository, registered in the name of the Depository or its nominee. Principal, premium, if any, and interest will be paid to the Depository or its nominee as the Owner of Series 2017A Bonds in book-entry form. The transfer of principal and interest payments to Participants will be the responsibility of the Depository; the transfer of principal and interest payments to the beneficial owners of the Series 2017A Bonds (“Beneficial Owners”) by Participants will be the responsibility of such Participants and other nominees of Beneficial Owners maintaining a relationship with Participants (“Indirect Participants”). Neither the City nor the Paying Agent will be responsible or liable for maintaining, supervising or reviewing the records maintained by the Depository, Participants or Indirect Participants.
If (i) the Series 2017A Bonds are not eligible for the services of a Depository, (ii) a Depository determines to discontinue providing its services with respect to the Series 2017A Bonds, or (iii) the City determines that a continuation of the system of book-entry transfers through a Depository ceases to be beneficial to the City or the Owners of the Series 2017A Bonds, the City will either identify another Depository or bond certificates will be delivered to Beneficial Owners or their nominees and the Beneficial Owners or their nominees, upon authentication of the Series 2017A Bonds, and registration of the Series 2017A Bonds in the Beneficial Owners’ or nominees’ names, will become the Owners of the Series 2017A Bonds for all purposes. In that event, the City shall mail an appropriate notice to the Depository for notification to Participants, Indirect Participants and Beneficial Owners of the substitute Depository or the issuance of Series 2017A Bonds certificates to Beneficial Owners or their nominees, as applicable.
Authorized Officers are authorized to execute and deliver agreements with Depositories relating to the matters set forth in this Section.
SECTION 6. OPTIONAL REDEMPTION OF SERIES 2017A BONDS; SERIES 2017B BONDS NOT REDEEMABLE. The Series 2017A Bonds maturing on and after July 1, 2027 are subject to redemption prior to maturity at the option of the City, in whole or in part at any time on or after July 1, 2026, at a redemption price of 100% of the principal of the Series 2017A Bonds to be redeemed, plus accrued interest, if any, to the date of redemption. The Series 2017B Bonds are not subject to redemption prior to maturity.
SECTION 7. APPOINTMENT OF PAYING AGENT AND REGISTRAR; PAYMENT OF SERIES 2017 BONDS.
(A) APPOINTMENT. The City Treasurer is hereby appointed as the initial Paying Agent and Registrar for the Series 2017 Bonds.
(B) TRANSFER OF PAYMENTS TO PAYING AGENT. The City shall transfer or credit to the Paying Agent amounts sufficient to pay the principal of and interest on the Series 2017 Bonds on or before the dates on which they become due.
(C) PAYMENT OF SERIES 2017 BONDS. The principal of and premium, if any, on the Series 2017 Bonds shall be payable upon presentation and surrender of the Series 2017 Bonds at the principal office of the Paying Agent at or after their maturity. Interest on Series 2017 Bonds shall be payable by check or draft mailed to the Owners (or by such other arrangement as may be mutually agreed to by the Paying Agent and an Owner). An Owner shall be deemed to be that person or entity shown on the registration books of the Series 2017 Bonds maintained by the Registrar at the address appearing in the registration books at the close of business on the applicable Record Date. However, interest which is not timely paid or provided for shall cease to be payable to the Owners of the Series 2017 Bonds (or of one or more predecessor Series 2017 Bonds) as of the regular Record Date, but shall be payable to the Owners of the Series 2017 Bonds (or of one or more predecessor Series 2017 Bonds) at the close of business on a special record date for the payment of the overdue interest. The special record date shall be fixed by the Paying Agent and Registrar whenever money becomes available for payment of the overdue interest and notice of the special record date shall be given to the Owners of such Series 2017 Bonds not less than ten days prior to that date. Payment shall be made in the coin or currency of the United States of America that is at the time of payment legal tender for the payment of public and private debts. If the principal amount of any Series 2017 Bond presented for payment remains unpaid at maturity, the unpaid principal shall continue to bear interest at the rate designated in that Series 2017 Bond. Payments of Series 2017 Bonds shall be made without deduction for exchange or collection charges.
SECTION 8. SALE OF SERIES 2017 BONDS. The Series 2017A Bonds shall be sold and delivered to the designated Purchaser or delivered to a Depository for and on behalf of the appropriate Purchaser upon receipt by the City of the purchase price set forth in the definition of Best Bid and upon the terms set forth in the Bond Ordinance. The Series 2017B Bonds shall be sold and delivered to the State of New Mexico upon receipt by the City of the purchase price set forth in the Bond Purchase Agreement (2017B).
SECTION 9. REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP OF SERIES 2017 BONDS.
(A) REGISTRATION, TRANSFER AND EXCHANGE. The City shall cause books for registration, transfer and exchange of the Series 2017 Bonds to be kept at the principal office of the Registrar. Upon surrender for transfer or exchange of any Series 2017 Bonds at the principal office of the Registrar duly endorsed by the Owner or his attorney duly authorized in writing, or accompanied by a written instrument or instruments of transfer or exchange in form satisfactory to the Registrar and properly executed, the City shall execute and the Registrar shall authenticate and deliver in the name of the transferee or Owner, as appropriate, a new Series 2017 Bond or Series 2017 Bonds of the same series, maturity, interest rate and same aggregate principal amount in Authorized Denominations.
(B) OWNER OF SERIES 2017 BONDS. The person in whose name any Series 2017 Bond is registered shall be deemed and regarded as its absolute Owner for all purposes, except as may otherwise be provided with respect to the payment of interest in Section 7(C). Payment of either the principal of or interest on any Series 2017 Bond shall be made only to or upon the order of its Owner or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability on Series 2017 Bonds to the extent of the amount paid.
(C) REPLACEMENT SERIES 2017 BONDS. If any Series 2017 Bond is lost, stolen, destroyed or mutilated, the Registrar shall, upon receipt of that Series 2017 Bond, if mutilated, and the evidence, information or indemnity which the Registrar and the City may reasonably require, authenticate and deliver a replacement Series 2017 Bond or Series 2017 Bonds of the same series, aggregate principal amount, maturity and interest rate, bearing a number or numbers not then outstanding. If any lost, stolen, destroyed or mutilated Series 2017 Bond has matured or been called for redemption, the Registrar may direct the Paying Agent to pay that Series 2017 Bond in lieu of replacement.
(D) CHARGES. Exchanges and transfers of Series 2017 Bonds shall be made without charge to the Owner or any transferee except that the Registrar may make a charge sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to that transfer or exchange.
(E) RESTRAINTS ON TRANSFER OR EXCHANGE. The Registrar shall not be required to transfer or exchange (a) any Series 2017 Bond during the five-day period preceding the mailing of notice calling Series 2017 Bonds for redemption and (b) any Series 2017 Bond called for redemption.
SECTION 10. NEGOTIABILITY; GENERAL OBLIGATIONS; PAYMENT AND SECURITY. The Series 2017A Bonds shall be fully negotiable and have all the qualities of negotiable instruments, and the Owners of Series 2017A Bonds shall possess all rights enjoyed by the owners of negotiable instruments under the provisions of the Uniform Commercial Code-Investment Securities in effect in the State. Series 2017B Bonds are not negotiable. Outstanding Series 2017 Bonds shall be equally and ratably secured in all respects, without preference, priority or distinction on account of the date or dates or the actual time or times of the issuance or maturity of the Series 2017 Bonds. The Series 2017 Bonds constitute the general obligation of the City payable from general (ad valorem) property taxes levied against all property within the City subject to taxation, without limitation as to rate or amount, and the full faith and credit of the City is hereby pledged for their payment.
SECTION 11. EXECUTION AND CUSTODY OF SERIES 2017 BONDS.
(A) EXECUTION. The Series 2017 Bonds shall be signed and executed in the name of the City by the manual or facsimile signatures of the Mayor and the City Clerk and shall be authenticated by the manual signature of, or an authorized officer of, the Registrar. The corporate seal of the City or a printed, engraved, stamped or otherwise reproduced facsimile of that corporate seal shall be placed on each Series 2017 Bond. The Series 2017 Bonds bearing the signatures of the officers in office at the time of signing shall be the valid and binding obligations of the City. Notwithstanding that before the delivery and payment of the Series 2017 Bonds any of the persons whose signatures appear on the Series 2017 Bonds, the Mayor and the City Clerk may each adopt as his or her own facsimile signature the facsimile signature of his or her predecessor in office, if that facsimile signature appears upon any of the Series 2017 Bonds. No manual or facsimile signature of an officer of the City or the Registrar shall be required if the Series 2017 Bonds are issued in book-entry form without the delivery of any physical securities.
(B) AUTHENTICATION. The Series 2017 Bonds shall be authenticated by the manual signature of the Registrar or an authorized officer of the Registrar. No Series 2017 Bond shall be valid or obligatory for any purpose unless the certificate of authentication has been duly executed by the Registrar. The Registrar’s certificate of authentication shall be deemed to have been fully executed if manually signed and inscribed by the Registrar or, if applicable, an authorized officer of the Registrar but it shall not be necessary that the same officer sign the certificate of authentication on all of the Series 2017 Bonds issued under the Bond Ordinance.
(C) FILING OF SIGNATURES. Prior to the execution of any Series 2017 Bond pursuant to Sections 6-9-1 to 6-9-6 NMSA 1978, as amended, the Mayor and City Clerk shall each file with the New Mexico Secretary of State, his or her manual signature certified by him or her under oath, provided that filing shall not be necessary for any officer where any previous filing has legal application to the Series 2017 Bonds.
(D) CUSTODY. The Registrar shall hold in custody all Series 2017 Bonds signed and attested by the Mayor and City Clerk until ready for delivery to the Depository, Purchaser, transferee or registered owner.
SECTION 12. FORM OF SERIES 2017 BONDS.
(A) SERIES 2017A BONDS. The Series 2017A Bonds shall be issued as fully registered bonds in substantially the following form:
[Form Of Series 2017A Bonds]
UNITED STATES OF AMERICA
STATE OF NEW MEXICO COUNTY OF BERNALILLO
CITY OF ALBUQUERQUE
GENERAL OBLIGATION GENERAL PURPOSE BONDS
SERIES 2017A
Bond No. __________ $_____________________
INTEREST RATE MATURITY DATE DATE OF BOND CUSIP
_______% per annum ______________ _________, 2017 ______
Registered Owner:
Principal Amount:
The City of Albuquerque (the “City”), in the County of Bernalillo and State of New Mexico (the “State”), a municipal corporation duly organized and existing under the Constitution and other laws of the State, for value received, promises to pay the Principal Amount stated above to the Registered Owner stated above or registered assigns, on the Maturity Date stated above upon presentation and surrender of this bond at the principal office of the City Treasurer in Albuquerque, New Mexico or its successors (referred to in this bond as the “Paying Agent” or “Registrar,” as applicable). The City also promises to pay interest on the unpaid Principal Amount at the Interest Rate stated above on January 1 and July 1 of each year, commencing January 1, 2018 until payment of the Principal Amount has been made or provided for at maturity or the prior redemption date if permitted and called for redemption. This bond shall bear interest from the most recent date to which interest has been paid or provided for or if no interest has been paid or provided for from the Date of Bond stated above until maturity. If, upon presentation of this bond on the Maturity Date, payment is not made as required by the Bond Ordinance, defined below, interest on the unpaid Principal Amount of this bond shall continue to accrue at the Interest Rate until the Principal Amount is paid in full.
This bond is one of a duly authorized issue of fully registered bonds of the City in the aggregate principal amount of $22,850,000 issued in denominations of $5,000 or integral multiples of $5,000, designated as City of Albuquerque, New Mexico General Obligation General Purpose Bonds, Series 2017A (the “Bonds”) issued under and pursuant to City Ordinance Twenty-Second Council Bill No. F/S O-17-36 (the “Bond Ordinance”).
The Bonds constitute the general obligation of the City payable from property taxes levied against all property of the City subject to taxation by the City, without limitation as to rate or amount, and the full faith and credit of the City is irrevocably pledged for the punctual payment of the principal of and interest on the Bonds.
Payment of the principal of this bond shall be made only to or upon the order of the Registered Owner or his legal representative. Interest on this bond is payable by check or draft mailed to the Registered Owner or his legal representative (or by such other arrangement as may be mutually agreed to by the Paying Agent and the Registered Owner) as shown on the registration books for the Bonds maintained by the Registrar at the address appearing in the registration books at the close of business on the twenty-fifth day of the calendar month next preceding the applicable Interest Payment Date (the “Record Date”). Any interest which is not timely paid or duly provided for shall cease to be payable to the Registered Owner as of the Record Date but shall be payable to the Registered Owner as shown on the registration books at the close of business on a special record date to be fixed by the Paying Agent and Registrar for the payment of interest. The special record date shall be fixed whenever money becomes available for payment of the overdue interest and notice of the special record date shall be given to the owners of the Bonds as then shown on the Registrar’s registration books not less than ten days prior to the special record date. If, upon presentation at maturity, payment of this bond is not made as required, all interest shall continue at the Interest Rate until the Principal Amount is paid in full. The principal of, premium, if any, and interest on this bond are payable in lawful money of the United States of America, without deduction for the services of the Paying Agent. All such payments shall be valid and effectual to satisfy and discharge the liability on this bond to the extent of the sum or sums paid.
The Bonds maturing on and after July 1, 2027 are subject to redemption prior to their maturity dates at the option of the City, in whole or in part at any time on or after July 1, 2026, at a redemption price of 100% of the principal of the Bonds to be redeemed, plus accrued interest, if any, to the date of redemption.
The Bonds are issued in book-entry form with no physical distribution of Bond certificates made to the public and a securities depository is acting as securities depository for the Bonds.
The Bonds are issued by the City, together with the City’s $11,257,000 Short-Term General Obligation Bonds, Series 2017B and the net premium paid therefore, upon its behalf and upon the credit of the City, for the following City purposes: (1) $3,815,000 for public safety; (2) $5,570,000 for citizens' centers; (3) $3,060,000 for parks and other recreational facilities; (4) $5,705,000 for facilities and equipment; (5) $4,085,000 for public libraries; (6) $3,675,000 for streets; (7) $217,000 for public transportation facilities; (8) $7,740,000 for storm sewer systems; and (9) $240,000 for zoo, biological park and museum facilities.
Books for the registration and transfer of the Bonds will be kept by the Registrar. The person in whose name this bond is registered shall be deemed and regarded as its absolute owner for all purposes, except as may otherwise be provided with respect to payment of interest as set forth above. Upon surrender for transfer or exchange of this bond at the principal office of the Registrar duly endorsed by the Registered Owner or his attorney duly authorized in writing or accompanied by a written instrument or instruments of transfer or exchange in form satisfactory to the Registrar and properly executed the City will execute and the Registrar will authenticate and deliver in the name of the transferee or Registered Owner, as appropriate, a new Bond or Bonds in fully registered form of the same maturity, interest rate and aggregate principal amount and authorized denominations.
The issuance of the Bonds has been authorized by the electors of the City qualified to vote and voting at a municipal election of the City held on October 6, 2015. All of the requirements of law have been complied with by the proper officers of the City for the issuance of the Bonds. The total indebtedness of the City, including that of the Bonds, and the indebtedness for each of the projects described in the Bonds does not exceed any limit of indebtedness prescribed by the Charter of the City or the Constitution or law of the State. Provision has been made for the levy and collection of annual taxes which will be sufficient to pay the principal of, premium, if any, and interest on the Bonds when the same become due.
If sufficient funds are deposited with the Paying Agent to pay the principal of any Bonds becoming due at maturity, together with interest accrued to the due date, interest on such Bonds will cease to accrue on the due date, and thereafter the owners will be restricted to the funds deposited as provided in the Bond Ordinance.
All conditions, acts and things required to exist, to have happened or to have been performed precedent to or in the issuance of the Bonds exist, have happened and have been performed in due time, form and manner, as required by law.
IN WITNESS WHEREOF, the City has caused this bond to be signed and executed on the City’s behalf by the manual or facsimile signature of the Mayor and the manual signature of the City Clerk, has caused the corporate seal of the City to be placed on this bond, and has caused this bond to be authenticated with the manual signature of the Treasurer of the City, as Registrar for the bonds, all as of the Date of Bond stated above.
CITY OF ALBUQUERQUE, NEW MEXICO
By
Mayor
(SEAL)
ATTEST:
By
City Clerk
CERTIFICATE OF AUTHENTICATION
This is one of the City of Albuquerque, New Mexico General Obligation General Purpose Bonds, Series 2017A, described above and in the Bond Ordinance, and this bond has been registered on the registration books of the City by the undersigned as Registrar for the Bonds.
Date of Authentication:____________________, 2017
By
As Registrar
FOR VALUE RECEIVED _____________________________ hereby sells, assigns and transfers this bond to _______________________________________ (please print or type name and address of assignee), whose social security or other identification number is __________________, and irrevocably appoints ___________________________, as attorney, to transfer this bond on the registration books of the City, with power of substitution of revocation.
DATE: ______________
NOTICE: The signature on this assignment must correspond with the name as it appears on the face of this bond in every particular, without alteration or enlargement or any change whatsoever.
[End Of Form Of Series 2017A Bonds]
(B) SERIES 2017B BONDS. The Series 2017B Bonds shall be issued as fully registered bonds in substantially the following form:
[Form Of Series 2017B Bonds]
UNITED STATES OF AMERICA
STATE OF NEW MEXICO COUNTY OF BERNALILLO
CITY OF ALBUQUERQUE
SHORT-TERM GENERAL OBLIGATION BONDS
SERIES 2017B
Bond No. R-1 $
INTEREST RATE MATURITY DATE DATE OF BOND
____% per annum July 3, 2017 April 11, 2017
Registered Owner: STATE OF NEW MEXICO
Principal Amount:
The City of Albuquerque (the “City”), in the County of Bernalillo and State of New Mexico (the “State”), a municipal corporation duly organized and existing under the Constitution and other laws of the State, for value received, promises to pay the Principal Amount stated above to the Registered Owner stated above or registered assigns, on the Maturity Date stated above upon presentation and surrender of this bond at the principal office of the City Treasurer in Albuquerque, New Mexico or its successors (referred to in this bond as the “Paying Agent” or “Registrar,” as applicable). The City also promises to pay interest on the unpaid Principal Amount at the Interest Rate stated above on the Maturity Date. This bond shall bear interest from the most recent date to which interest has been paid or provided for or if no interest has been paid or provided for from the Date of Bond stated above until maturity. If, upon presentation of this bond on the Maturity Date, payment is not made as required by the Bond Ordinance, defined below, interest on the unpaid Principal Amount of this bond shall continue to accrue at the Interest Rate until the Principal Amount is paid in full.
This bond is one of a duly authorized issue of fully registered bonds of the City in the aggregate principal amount of $11,257,000, designated as City of Albuquerque, New Mexico General Obligation Short-Term Bonds, Series 2017B (the “Bonds”) issued under and pursuant to City Ordinance Twenty-Second Council Bill No. F/S O-17-36 (the “Bond Ordinance”).
The Bonds constitute the general obligation of the City payable from property taxes levied against all property of the City subject to taxation by the City, without limitation as to rate or amount, and the full faith and credit of the City is irrevocably pledged for the punctual payment of the principal of and interest on the Bonds.
Payment of the principal of this bond shall be made only to or upon the order of the Registered Owner or his legal representative. Interest on this bond is payable by check or draft mailed to the Registered Owner or his legal representative (or by such other arrangement as may be mutually agreed to by the Paying Agent and the Registered Owner) as shown on the registration books for the Bonds maintained by the Registrar at the address appearing in the registration books at the close of business on the twenty-fifth day of the calendar month next preceding the applicable Interest Payment Date (the “Record Date”). Any interest which is not timely paid or duly provided for shall cease to be payable to the Registered Owner as of the Record Date but shall be payable to the Registered Owner as shown on the registration books at the close of business on a special record date to be fixed by the Paying Agent and Registrar for the payment of interest. The special record date shall be fixed whenever money becomes available for payment of the overdue interest and notice of the special record date shall be given to the owners of the Bonds as then shown on the Registrar’s registration books not less than ten days prior to the special record date. If, upon presentation at maturity, payment of this bond is not made as required, all interest shall continue at the Interest Rate until the Principal Amount is paid in full. The principal of, premium, if any, and interest on this bond are payable in lawful money of the United States of America, without deduction for the services of the Paying Agent. All such payments shall be valid and effectual to satisfy and discharge the liability on this bond to the extent of the sum or sums paid.
The Bonds are not subject to redemption prior to maturity.
The Bonds are issued by the City, together with its $22,850,000 General Obligation General Purpose Bonds, Series 2017A, upon its behalf and upon the credit of the City, in the following amounts for the following City purposes: (1) $3,815,000 for public safety; (2) $5,570,000 for citizens' centers; (3) $3,060,000 for parks and other recreational facilities; (4) $5,705,000 for facilities and equipment; (5) $4,085,000 for public libraries; (6) $3,675,000 for streets; (7) $217,000 for public transportation facilities; (8) $7,740,000 for storm sewer systems; and (9) $240,000 for zoo, biological park and museum facilities.
Books for the registration and transfer of the Bonds will be kept by the Registrar. The person in whose name this bond is registered shall be deemed and regarded as its absolute owner for all purposes, except as may otherwise be provided with respect to payment of interest as set forth above. Upon surrender for transfer or exchange of this bond at the principal office of the Registrar duly endorsed by the Registered Owner or his attorney duly authorized in writing or accompanied by a written instrument or instruments of transfer or exchange in form satisfactory to the Registrar and properly executed the City will execute and the Registrar will authenticate and deliver in the name of the transferee or Registered Owner, as appropriate, a new Bond or Bonds in fully registered form of the same maturity, interest rate and aggregate principal amount and authorized denominations.
The issuance of the Series 2017B Bonds has been authorized by the electors of the City qualified to vote and voting at the municipal election of the City held on October 6, 2015. All of the requirements of law have been complied with by the proper officers of the City for the issuance of the Bonds. The total indebtedness of the City, including that of the Bonds, and the indebtedness for each of the projects described in the Bonds does not exceed any limit of indebtedness prescribed by the Charter of the City or the Constitution or law of the State. Provision has been made for the levy and collection of annual taxes which will be sufficient to pay the principal of, premium, if any, and interest on the Bonds when the same become due.
If sufficient funds are deposited with the Paying Agent to pay the principal of any Bonds becoming due at maturity, together with interest accrued to the due date, interest on such Bonds will cease to accrue on the due date, and thereafter the owners will be restricted to the funds deposited as provided in the Bond Ordinance.
All conditions, acts and things required to exist, to have happened or to have been performed precedent to or in the issuance of the Bonds exist, have happened and have been performed in due time, form and manner, as required by law.
IN WITNESS WHEREOF, the City has caused this bond to be signed and executed on the City’s behalf by the manual or facsimile signature of the Mayor and the manual signature of the City Clerk, has caused the corporate seal of the City to be placed on this bond, and has caused this bond to be authenticated with the manual signature of the Treasurer of the City, as Authenticating Agent for the bonds, all as of the Date of Bond stated above.
CITY OF ALBUQUERQUE, NEW MEXICO
By
Mayor
(SEAL)
ATTEST:
By
City Clerk
CERTIFICATE OF AUTHENTICATION
This is one of the City of Albuquerque, New Mexico General Obligation Short-Term Bonds, Series 2017B, described above and in the Bond Ordinance, and this bond has been registered on the registration books of the City by the undersigned as Authenticating Agent for the Bonds.
Date of Authentication:____________________, 2017
By
As Authenticating Agent
FOR VALUE RECEIVED _____________________________ hereby sells, assigns and transfers this bond to _______________________________________ (please print or type name and address of assignee), whose social security or other identification number is __________________, and irrevocably appoints ___________________________, as attorney, to transfer this bond on the registration books of the City, with power of substitution of revocation.
DATE: ______________
NOTICE: The signature on this assignment must correspond with the name as it appears on the face of this bond in every particular, without alteration or enlargement or any change whatsoever.
[End Of Form Of Series 2017B Bonds]
SECTION 13. DELIVERY OF SERIES 2017 BONDS. When the Series 2017 Bonds have been properly executed and authenticated, an Authorized Officer shall deliver the Series 2017A Bonds to the Purchaser or the Depository on behalf of the appropriate Purchaser on receipt by the City of the agreed purchase price set forth in the definition of Best Bid in the Bond Ordinance. An Authorized Officer shall deliver the Series 2017B Bonds to the State Treasurer on or about April 11, 2017 upon receipt by the City of the agreed purchase price.
SECTION 14. DISPOSITION AND USE OF SERIES 2017 BOND PROCEEDS; APPROPRIATIONS. The proceeds of the Series 2017 Bonds shall be used only for the Series 2017 Bond Projects and related Expenses in the amounts stated in the Bond Schedule under Series 2017 Financing. The Purchasers of Series 2017 Bonds shall not be responsible for the application by the City or by any of its officers of any of the proceeds of the Series 2017 Bonds. The City shall account for the proceeds of the Series 2017 Bonds as follows:
(A) PREMIUM. The premium of $2,547,892.20 paid for the purchase of the Series 2017A Bonds shall be credited to a separate book account and used, and is hereby appropriated, to pay Expenses of the Series 2017A Bonds, with any excess premium deposited in the Interest and Sinking Fund. No premium will be payable for the Series 2017B Bonds.
(B) USE OF PROCEEDS OF SERIES 2017 BONDS. The following amounts shall be credited to separate book accounts for each Series 2017 Bond Project financed with the proceeds of Series 2017 Bonds. The amounts on deposit in each account shall be maintained by the City and used for the payment, in whole or in part, of the costs of the Series 2017 Bond Projects and the payment of Expenses as set forth in Section 14(C):
(1) the amount of $3,815,000 shall be credited, and is hereby appropriated, for the payment of the Public Safety Project;
(2) the amount of $5,570,000 shall be credited and is hereby appropriated for the payment of the Citizens’ Center Project;
(3) the amount of $3,060,000 shall be credited, and is hereby appropriated, for the payment of the Parks and Recreation Project;
(4) the amount of $5,705,000 shall be credited, and is hereby appropriated, for the payment of the Facilities and Equipment Project;
(5) the amount of $4,085,000 shall be credited, and is hereby appropriated, for the payment of the Library Project;
(6) the amount of $217,000 shall be credited, and is hereby appropriated, for the payment of the Public Transportation Project;
(7) the amount of $7,740,000 shall be credited, and is hereby appropriated, for the payment of the Storm Sewer System Project;
(8) the amount of $3,675,000 shall be credited, and is hereby appropriated, for the payment of the Streets Project; and
(9) the amount of $240,000 shall be credited, and is hereby appropriated, for the payment of the Zoo, Biological Park and Museum Project.
(C) EXPENSES.
(1) The amount of $250,000.00 from Series 2017A Bond proceeds, including the net premium paid therefore, is hereby appropriated for the payment of Expenses relating to the issuance of the Series 2017A Bonds. Any part of that amount, other than net premium, which is not necessary to pay such Expenses, shall be used for the respective Series 2017A Bonds Projects listed in Section 4(C).
(2) The amount of $0 from Series 2017B Bond proceeds is hereby appropriated for the payment of Expenses relating to the issuance of the Series 2017B Bonds.
SECTION 15. APPROVAL OF DOCUMENTS.
(A) COUNCIL APPROVAL. The Preliminary Official Statement and the forms of the Official Statement, Continuing Disclosure Undertaking and Bond Purchase Agreement (2017B) have been on deposit with the City Clerk and presented to the Council for approval. The form, terms and provisions of the Preliminary Official Statement, the Official Statement, the Continuing Disclosure Undertaking, and the Bond Purchase Agreement (2017B) are hereby ratified, approved and confirmed. The Mayor or other Authorized Officer is hereby authorized to execute the Official Statement, the Continuing Disclosure Undertaking, and the Bond Purchase Agreement.
(B) FURTHER ACTS. From and after the adoption of the Bond Ordinance, the officers, agents and employees of the City are authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Bond Ordinance.
SECTION 16. DISCLOSURE MATTERS.
(A) DISTRIBUTION AND USE. The use and distribution of the Preliminary Official Statement for the sale of the Series 2017A Bonds are ratified, approved and confirmed. The use and distribution of the Official Statement for the sale of the Series 2017A Bonds are hereby approved.
(B) OFFICIAL STATEMENT; MATERIAL CHANGE. The City shall provide to the Purchaser of the Series 2017A Bonds, within seven Business Days after the date of the adoption of the Bond Ordinance and in sufficient time to accompany any confirmation that requires payment from any customer, copies of the Official Statement in sufficient quantities to enable the original Purchaser to comply with Rule 15c2-12 under the Securities and Exchange Act of 1934, as amended (the “Rule”), and the rules of the Municipal Securities Rulemaking Board. The City shall notify the Purchaser of the Series 2017A Bonds promptly of any material change in the affairs or financial conditions of the City which may occur prior to the date on which the Series 2017A Bonds are initially issued and delivered. The City further agrees to notify the Purchaser of any material development impacting the Series 2017A Bonds, or the availability of funds of the City for the payment of the Series 2017A Bonds, which the City becomes aware between the date of the adoption of the Bond Ordinance and a date which is twenty-five (25) days after the end of the underwriting period for purposes of the Rule, which date shall be deemed to be the date on which the Series 2017A Bonds, are initially issued and delivered. Upon such notification, if, in the opinion of the City or the Purchaser, a change would be required in the Official Statement in order to make the statements therein true and not misleading or incomplete in any material respect, then the Official Statement as so amended or supplemented will be prepared and furnished to the Purchaser, at the expense of the City, in reasonable quantities for distribution.
(C) CONTINUING DISCLOSURE. The City will execute, deliver and comply with the Continuing Disclosure Undertaking for the benefit of the Purchaser.
SECTION 17. FUNDS AND ACCOUNTS. Funds and accounts relating to the Series 2017 Bonds, the Series 2017 Bond proceeds and the payments of the Series 2017 Bonds shall be established by an Authorized Officer to be controlled and maintained by the City or its designee.
SECTION 18. TAX LEVIES. In order to pay the principal of and interest on the Series 2017 Bonds as they become due and, at the option of the City, to reimburse the general fund or other funds for the payment of principal of or interest on Series 2017 Bonds for which property taxes were not available, there shall be an annual assessment and levy upon all of the taxable property of the City subject to taxation which provides an amount sufficient to pay the principal of (including, without limitation, any mandatory sinking fund payments) and the interest on the Series 2017 Bonds as they become due and payable. However, the City may, at its option, apply any other funds lawfully available for the purpose to the payment of principal of or interest on the Series 2017 Bonds as they become due and the levies required by this Section may be reduced to the extent other revenues are or will be available and used for payment of the Series 2017 Bonds. To the extent property taxes are not available for that purpose, the principal of and interest accruing on Series 2017 Bonds shall be paid from the City’s general fund or from any other fund lawfully available for that purpose. The taxes shall be assessed, levied and collected annually at the time and in the manner as other City taxes are assessed, levied and collected. Annually, the Council shall take all reasonable action to insure the levy and collection of taxes by the governmental authority charged with legal responsibility to levy and collect taxes in amount sufficient at the time to pay the principal of and interest on the Series 2017 Bonds. The money produced by the levy of taxes provided in this Section to pay the principal of and interest on the Series 2017 Bonds is appropriated for that purpose and that amount shall be included in the annual budget and the appropriation bills adopted and passed by the Council each year. The taxes collected shall be maintained in an Interest and Sinking Fund, which is hereby created, and kept for and applied only to the payment of the principal of and interest on the Series 2017 Bonds when due and as otherwise required or permitted by law.
SECTION 19. GENERAL ADMINISTRATION OF FUNDS. The funds and accounts established pursuant to the Bond Ordinance shall be administered as follows:
(A) INVESTMENT OF MONEY. To the extent practicable, any money in any such fund or account shall be invested in Permitted Investments within any limitations imposed by the Bond Ordinance. Obligations purchased as an investment of money in any fund or account shall be deemed at all times to be part of that fund or account, and the interest accruing and any profit realized on those investments shall be credited to that fund or account, unless otherwise stated in the Bond Ordinance (subject to withdrawal at any time for the uses directed and permitted for such money by the Bond Ordinance), and any loss resulting from such investment shall be charged to that fund or account. The City Treasurer shall present for redemption or sale on the prevailing market any Permitted Investment in a fund or account when necessary to provide money to meet a required payment or transfer from that fund or account.
(B) DEPOSITS OF FUNDS. The money and investments which are part of the funds and accounts designated in the Bond Ordinance shall be maintained and kept in an Insured Bank or Banks as permitted by New Mexico law. Each payment shall be made into and credited to the proper fund or account at the designated time, except that when the designated time is not a Business Day, then the payment shall be made on the next succeeding Business Day unless otherwise required in the Bond Ordinance. The City may establish one or more accounts in Insured Banks, for all of the funds and accounts or combine such funds and accounts with any other Insured Bank account or accounts for other funds and accounts of the City.
SECTION 20. PROTECTIVE COVENANTS. The City covenants and agrees with the Owners:
(A) USE OF SERIES 2017 BOND PROCEEDS. When issued, the City will proceed without unreasonable delay to use the proceeds of the Series 2017 Bonds for the acquisition and construction of the respective Series 2017 Bond Projects for which the Series 2017 Bonds are issued in the amounts stated in the Bond Ordinance.
(B) PAYMENTS. The City will pay the principal of and the interest on every Series 2017 Bond at the place, on the date and in the manner specified in the Bond Ordinance and the Series 2017 Bonds.
(C) CITY’S EXISTENCE. The City will maintain its corporate identity and existence so long as any of the Series 2017 Bonds remain outstanding, unless another political subdivision by operation of law succeeds to the liabilities and rights of the City, without adversely affecting to any substantial degree the privileges and rights of any Owner. The City may annex and de-annex land.
SECTION 21. SERIES 2017 BONDS NOT PRESENTED WHEN DUE. If any Series 2017 Bonds are not duly presented for payment when due at maturity, and if money sufficient to pay those Series 2017 Bonds is on deposit with the Paying Agent for the benefit of the Owners of those Series 2017 Bonds, all liability of the City to those Owners for the payment of the Series 2017 Bonds shall be completely discharged, those Series 2017 Bonds shall not be deemed to be Outstanding and it shall be the duty of the Paying Agent to segregate and to hold the money received for payment in trust, without liability for interest to the Owners, for the benefit of those Owners.
SECTION 22. DELEGATED POWERS. The Authorized Officers of the City are authorized and directed to take all action from time to time which is necessary or appropriate to effectuate the provisions of the Bond Ordinance, including, without limitation, the delivery of a “deemed final” certificate relating to the Preliminary Official Statement, the publication of a notice of adoption of the Bond Ordinance, the distribution of material relating to Series 2017 Bonds, the printing of Series 2017 Bonds, certificates pertaining to the Series 2017 Bonds and the delivery of and security for the Series 2017 Bonds as may be reasonably required by the Purchaser.
The Director of the Department of Finance and Administrative Services of the City, or his successor in interest, is hereby authorized and directed to make such changes or corrections to the procedures established in the Bond Ordinance relating to the times of day or the days on which actions are required to be taken, or the persons responsible for particular actions, the form of notice of the occurrence of events, the types and forms of actions required and other administrative matters which, in his judgment, are necessary and appropriate to accomplish the purposes of the Bond Ordinance and to provide for the efficient administration of the Series 2017 Bonds program. Notice of any such changes or corrections shall be given to all persons affected thereby and to Bond Counsel for the City and a certificate of such changes and corrections shall be filed with the City Clerk.
SECTION 23. AMENDMENT OF BOND ORDINANCE.
(A) LIMITATIONS UPON AMENDMENTS. The Bond Ordinance may be amended by resolution or ordinance of the Council without the consent of Owners:
(1) To cure any ambiguity, or to cure, correct or supplement any defect or inconsistent provision contained in the Bond Ordinance;
(2) To grant to the Owners any additional rights, remedies, powers or authority that may lawfully be granted to them;
(3) To obtain or maintain a rating on Series 2017 Bonds from any rating agency which amendment, in the judgment of Bond Counsel, does not materially adversely affect the Owners;
(4) To achieve compliance with federal securities or tax laws; and
(5) To make any other changes in the Bond Ordinance which, in the opinion of Bond Counsel, are not materially adverse to the Owners.
(B) ADDITIONAL AMENDMENTS. Except as provided above, the Bond Ordinance may only be amended or supplemented by ordinance adopted by the Council in accordance with the laws of the State, without receipt by the City of any additional consideration, but with the written consent of the Owners of a majority of the principal amount of the Series 2017 Bonds affected by such amendment or supplement then Outstanding (not including Series 2017 Bonds which are then owned by or for the account of the City); provided, however, that no such ordinance shall have the effect of permitting:
(1) An extension of the maturity of any Series 2017 Bond; or
(2) A reduction in the principal amount of or interest rate on any Series 2017 Bond; or
(3) A reduction of the principal amount of Series 2017 Bonds required for consent to such amendment or supplement.
(C) PROOF OF INSTRUMENTS. The fact and date of the execution of any instrument under the provisions of this Section may be proved by the certificate of any officer in any jurisdiction who by the laws of that jurisdiction is authorized to take acknowledgments of deeds within that jurisdiction that the person signing the instrument acknowledged before him the execution of that instrument, or may be proved by an affidavit of a witness to the execution sworn to before such officer.
(D) PROOF OF SERIES 2017 BONDS. The principal amount and numbers of Series 2017 Bonds owned by any person executing such instrument and the date of holding that instrument may be proved by a certificate executed by a responsible bank or trust company showing that on the date mentioned that person had on deposit with the bank or trust company the Series 2017 Bonds described in the certificate.
SECTION 24. DEFEASANCE. When all principal and interest in connection with all or any part of the Series 2017 Bonds have been paid or provided for, the pledge and lien and all obligations under the Bond Ordinance with respect to those Series 2017 Bonds shall be discharged and those Series 2017 Bonds shall no longer be deemed to be outstanding within the meaning of the Bond Ordinance.
Without limiting the preceding paragraph, there shall be deemed to be such payment when the Council has caused to be placed in escrow and in trust with an escrow agent located within or without the State and exercising trust powers, an amount sufficient (including the known minimum yield from Defeasance Obligations in which such amount may be initially invested) to pay all requirements of principal and interest on the Series 2017 Bonds to be defeased as the same become due to their final maturities. The escrow agent shall have received evidence satisfactory to it that the cash and Defeasance Obligations delivered to it will be sufficient to provide for the payment of the Series 2017 Bonds to be defeased as stated above. Neither the Defeasance Obligations nor money deposited with the escrow agent shall be withdrawn or used for any purpose other than as provided in the escrow agreement relating thereto and the Defeasance Obligation and money shall be segregated and held in trust for the payment of the principal or redemption price of and interest on the Series 2017 Bonds with respect to which such deposit has been made. The Defeasance Obligations shall become due prior to the respective times at which the proceeds are needed in accordance with a schedule established and agreed upon between the City and the escrow agent at the time of the creation of the escrow, or the Defeasance Obligations shall be subject to redemption only at the option of the holders or owners thereof to assure the availability of the proceeds as needed to meet the schedule.
If any Series 2017 Bonds are deemed to be paid and discharged pursuant to this Section, then, within fifteen (15) days after the date of defeasance, the City shall cause a written notice to be given to each Owner of Series 2017 Bonds deemed paid and discharged at the address shown on the Series 2017 Bond register for the Series 2017 Bonds on the date on which those Series 2017 Bonds are deemed paid and discharged stating the numbers of the Series 2017 Bonds deemed paid and discharged (if less than all Series 2017 Bonds are deemed paid and discharged), describing the Defeasance Obligations and specifying any date or dates on which the Series 2017 Bonds defeased are to be paid.
SECTION 25. BOND ORDINANCE IRREPEALABLE. After any of the Series 2017 Bonds are issued, the Bond Ordinance shall be and remain irrepealable until the principal of and interest on all Series 2017 Bonds are fully paid and discharged or there has been defeasance of all Series 2017 Bonds and the Series 2017 Bonds have been canceled.
SECTION 26. REPEALER. All ordinances, or parts of ordinances, inconsistent with the Bond Ordinance are repealed by the Bond Ordinance but only to the extent of that inconsistency. This repealer shall not be construed to revive any ordinance, or part of any ordinance, previously repealed.
SECTION 27. SEVERABILITY. If any section, paragraph, clause or provision of the Bond Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of that section, paragraph, clause or provision shall not affect any of the remaining provisions of the Bond Ordinance.
SECTION 28. FORM OF PUBLICATION. The title and general summary of the subject matter contained in the Bond Ordinance shall be published in substantially the following form:
[Form Of Summary Of Ordinance For Publication]
CITY OF ALBUQUERQUE, NEW MEXICO
NOTICE OF ADOPTION OF ORDINANCE
Notice is hereby given of the title and of a general summary of the subject matter contained in the City Ordinance Twenty-Second Council Bill No. F/S O-17-36 duly adopted and approved by the City Council of the City of Albuquerque, New Mexico on March 6, 2017. Complete copies of the Ordinance are available for public inspection during the normal and regular business hours of the City Clerk at the Albuquerque/Bernalillo County Government Center, One Civic Plaza, Albuquerque, New Mexico.
The title of the Ordinance is:
ORDINANCE
AUTHORIZING THE ISSUANCE AND SALE OF $34,107,000 CITY OF ALBUQUERQUE, NEW MEXICO GENERAL OBLIGATION BONDS, CONSISTING OF $22,850,000 GENERAL PURPOSE GENERAL OBLIGATION BONDS, SERIES 2017A, AND $11,257,000 SHORT-TERM GENERAL OBLIGATION BONDS, SERIES 2017B, AUTHORIZED AT AN ELECTION OF THE CITY HELD ON OCTOBER 6, 2015 TO FINANCE PROJECTS RELATING TO PUBLIC SAFETY, CITIZENS’ CENTERS, PARKS AND RECREATION, FACILITIES AND EQUIPMENT, LIBRARY, PUBLIC TRANSPORTATION, ZOO, BIOLOGICAL PARK AND MUSEUM FACILITIES, STORM SEWERS, AND STREETS; PROVIDING FOR THE LEVY AND COLLECTION OF AD VALOREM TAXES FOR THE PAYMENT OF THE SERIES 2017 BONDS; PROVIDING FOR THE FORMS, TERMS, PURCHASE, PAYMENT, EXECUTION AND OTHER PROVISIONS OF AND CONCERNING THE SERIES 2017 BONDS; PROVIDING FOR THE AWARD AND SALE OF THE SERIES 2017A BONDS TO THE PURCHASER THEREOF; AUTHORIZING THE SALE OF THE SERIES 2017B BONDS TO THE STATE OF NEW MEXICO; PRESCRIBING OTHER DETAILS IN CONNECTION WITH THE SERIES 2017 BONDS AND THE PAYMENT THEREOF; AND RATIFYING PRIOR ACTION TAKEN IN CONNECTION THEREWITH.
The title of the Ordinance contains a summary of its provisions. This notice constitutes compliance with Sections 6-14-4 through 6-14-7, New Mexico Statutes Annotated, 1978.
[End Of Form Of Summary Of Ordinance For Publication]
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