NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED
NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended, and the Utah Refunding Bond Act, Title 11, Chapter 27, Utah Code Annotated 1953, as amended (collectively, the “Act”), that on October 21, 2014, the City Council (the “Council”) of the City of Draper, Utah (the “Issuer”), intends to adopt a resolution (the “Resolution”) authorizing the issuance of the Issuer’s Sales Tax Revenue Refunding Bonds, Series 2014 (the “Series 2014 Bonds”) (to be issued in one or more series and with such other series or title designation(s) as may be determined by the Issuer) and call a public hearing to receive input from the public with respect to (a) the issuance of the Series 2014 Bonds and (b) any potential economic impact that the Refunded Bonds described herein to be financed with the proceeds of the Series 2014 Bonds may have on the private sector. Pursuant to the Resolution, the Issuer proposes to refund all or a portion of the Municipal Building Authority of the City of Draper Lease Revenue Bonds, Series 2005 (the “Refunded Bonds”).
TIME, PLACE AND LOCATION OF PUBLIC HEARING
The Issuer shall hold a public hearing on October 21, 2014, at the hour of 7:00 p.m. at 1020 E. Pioneer Road, Draper, Utah. The purpose of the hearing is to receive input from the public with respect to (a) the issuance of the Series 2014 Bonds and (b) any potential economic impact that the Project to be financed (or refinanced) with the proceeds of the Series 2014 Bonds may have on the private sector. Interested individuals are invited to express their views, both orally and in writing, on the proposed issue of the Series 2014 Bonds. All members of the public are invited to attend and participate. Written comments may be submitted to the Issuer at the City Recorder’s office located at 1020 E. Pioneer Road, Draper, Utah, until 5:00 p.m. on October 21, 2014. Additional information may be obtained from the Issuer at its office shown above or by calling (801) 576-6506.
PURPOSE FOR ISSUING THE SERIES 2014 BONDS
The Series 2014 Bonds will be issued for the purpose of (a) refunding all or a portion of the Refunded Bonds and (b) paying costs of issuance of the Series 2014 Bonds.
PARAMETERS OF THE SERIES 2014 BONDS
The Issuer intends to issue its Sales Tax Revenue Refunding, Series 2014, in the aggregate principal amount of not more than Five Million Dollars ($5,000,000), to mature in not more than twelve (12) years from their date or dates, to be sold at a price not less than ninety-seven percent (97%) of the total principal amount thereof, and bearing interest at individual coupon rate or rates of not to exceed five percent (5.0%) per annum. The Series 2014 Bonds are to be issued and sold by the Issuer pursuant to the Resolution, including as part of said Resolution, a General Indenture of Trust and a Supplemental Indenture of Trust (collectively, the “Indenture”) which were before the Council and attached to the Resolution in substantially final form at the time of the adoption of the Resolution and said Indenture is to be executed by the Council in such form and with such changes thereto as shall be approved by the Council; provided that the principal amount, interest rate or rates, maturity, and discount of the Series 2014 Bonds will not exceed the maximums set forth above.
EXCISE TAXES PROPOSED TO BE PLEDGED
The Issuer proposes to pledge 100% of the sales and use tax revenues received by the Issuer pursuant to the Local Sales and Use Tax Act, Title 59, Chapter 12, Part 2 of Utah Code Annotated 1953, as amended, to the payment of the Bonds.
OUTSTANDING BONDS SECURED BY PLEDGED TAXES
Other than the proposed Series 2014 Bonds, the Issuer currently has $23,995,000 of bonds outstanding (the “Outstanding Bonds”) secured by the Revenues (as more fully described in the Indenture).
OTHER OUTSTANDING BONDS OF THE ISSUER
Additional information regarding the Issuer’s Outstanding Bonds may be found in the Issuer’s financial report (the “Financial Report”) at: http://auditor.utah.gov/accountability/financial-reports-of-local-governments/. For additional information, including any information more recent than as of the date of the Financial Report, please contact Bob Wylie, Finance Director at (801) 576-6500.
TOTAL ESTIMATED COST
Based on the Issuer’s current plan of finance and a current estimate of interest rates, the total principal and interest cost of the Series 2014 Bonds if held until maturity is $4,415,615.56.
A copy of the Resolution and the Indenture are on file in the office of the Draper City Recorder, 1020 E. Pioneer Road, Draper, Utah, where they may be examined during regular business hours of the City Recorder from 8:00 a.m. to 5:00 p.m., Monday through Friday, for a period of at least thirty (30) days from and after the date of publication of this notice.
NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of the publication of this notice is provided by law during which (i) any person in interest shall have the right to contest the legality of the Resolution, the Indenture (but only as it relates to the Series 2014 Bonds), or the Series 2014 Bonds, or any provision made for the security and payment of the Series 2014 Bonds, and that after such time, no one shall have any cause of action to contest the regularity, formality, or legality thereof for any cause whatsoever and (ii) registered voters within the City of Draper, Utah may sign a written petition requesting an election to authorize the issuance of the Series 2014 Bonds. If written petitions which have been signed by at least 20% of the registered voters of the City of Draper, Utah are filed with the Issuer during said 30-day period, the Issuer shall be required to hold an election to obtain voter authorization prior to the issuance of the Series 2014 Bonds. If fewer than 20% of the registered voters of the City of Draper, Utah file a written petition during said 30-day period, the Issuer may proceed to issue the Series 2014 Bonds without an election.
DATED this September 26, 2014.
/s/ Rachelle Conner