• SUMMARY OF ORDINANCE Author...

SUMMARY OF ORDINANCE



Authorizing the issuance from time to time of one or more series of general obligation bonds to provide funds to refund certain outstanding general obligation bonds of The City of Philadelphia; authorizing the Mayor, City Controller and City Solicitor or a majority of them to sell the bonds at public or private negotiated sale; setting forth the purposes for which the proceeds of the bonds will be expended; providing for the maturities and for other terms and conditions and for the form of the bonds; providing that 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 enhancement or payment or liquidity sources for the bonds and certain other actions.


The following is a summary of the provisions of each section of the proposed Ordinance introduced November 21, 2019 (Bill No. 190935) authorizing the issuance of bonds without the consent of the electors:


SECTION 1. Authorizes the Mayor, City Controller and City Solicitor, or a majority of them (the "Bond Committee"), to borrow, by the issuance and sale, from time to time, of one or more series of general obligation bonds of the City (the "Bonds"), taxable or tax-exempt, for the payment of which the full faith, credit and taxing powers of the City shall be pledged, a sum or sums which, in the aggregate, shall not exceed One Billion Five Hundred Million Dollars ($1,500,000,000), exclusive of Bonds in an amount required to pay costs of issuance of the Bonds, including, but not limited to, underwriters' discount, costs of liquidity and/or credit enhancement, original issue discount or redemption premiums, if any, on the Prior Bonds (hereinafter defined) or similar items, for the purposes set forth in Section 2 of the Ordinance. States that the Bonds may be sold, from time to time, at a private negotiated sale or at a public sale to the highest responsible bidder as authorized by law. Finds that, if a private negotiated sale is utilized, the sale of all or any portion of the Bonds at a private negotiated sale or sales is in the best financial interest of the City.


SECTION 2. Directs that the proceeds of the Bonds shall be used to provide funds for and towards the refunding of all or a portion of the City's General Obligation Multi-Modal Refunding Bonds, Series 2009B, General Obligation Bonds, Series 2011, General Obligation Refunding Bonds, Series 2012A, General Obligation Bonds, Series 2013A, General Obligation Refunding Bonds, Series 2014A, General Obligation Refunding Bonds, Series 2015A, General Obligation Bonds, Series 2015B, General Obligation Refunding Bonds, Series 2017, General Obligation Bonds, Series 2017A, General Obligation Refunding Bonds, Series 2019A and General Obligation Bonds, Series 2019B (collectively, the "Prior Bonds").


SECTION 3. Provides that the dates of issue of the Bonds and the other details thereof, within the limitations of the Ordinance, shall be determined by the Bond Committee or, as applicable, may be specified in one or more purchase proposals of the successful bidder or bidders or purchaser or purchasers of the Bonds; that the Bonds shall contain series or subseries designations, shall be in denominations of Five Thousand Dollars ($5,000) or any whole integral multiple thereof, as may be determined by the Bond Committee, and shall be substantially in the forms approved by the Bond Committee, consistent with applicable law and regulations; that the Bonds shall bear interest from the respective dates of issuance thereof at the prescribed rates, including variable interest (not exceeding any limitation prescribed by law) payable initially on a date not more than nine (9) months from the date of issuance thereof and thereafter on a monthly, quarterly, semi-annual or annual basis or such other time period as shall be set forth in the Bonds, to maturity or prior redemption, if any; and may be subject to redemption prior to maturity at the option of the City, or be subject to mandatory redemption or tender as set forth in the Bonds; and further states the procedure to be followed in the event of redemption prior to maturity.


SECTION 4. Creates a sinking fund to be administered by the Sinking Fund Commission and covenants that in each year in which any such issue of Bonds shall be outstanding, the City will appropriate from the tax and other general revenues of the City to the Sinking Fund Commission for deposit to the credit of such sinking fund a sum at least equal to the interest on and the principal of such Bonds as the same become due and payable; that in each year that the Agreements (defined in Section 5 of the Ordinance) are outstanding, the City will appropriate from the tax and other revenues of the City sufficient funds to meet its obligations as they become due under the Agreements; that so long as any Bonds issued by virtue of the Ordinance shall remain outstanding, the City 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 interest thereon and the principal thereof when due, whether at maturity or redemption; and that so long as the Agreements are outstanding, the City will make payments out of its general revenues or funds at such times and in such amounts as shall be sufficient to pay the City's obligations under the Agreements.


SECTION 5. Authorizes the Bond Committee to enter into Agreements (the "Agreements") with any bank, insurance company or other appropriate entity (including any governmental insurance program) providing credit or payment or liquidity sources for the Bonds, including, without limitation, letters of credit, lines of credit and insurance (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).


SECTION 6. Further authorizes the Bond Committee to make all such covenants and to take any and all such other actions on behalf of the City as may be necessary or appropriate in connection with the consummation of the transactions contemplated in the Ordinance or as may be necessary to effect the Ordinance.


Michael A. Decker
Chief Clerk of the Council
of the City of Philadelphia



Ref# 0003411103-01
PostedNovember 21, 2019