ORDINANCE NO. 2006-17

AN ORDINANCE AMENDING BOND ORDINANCE NO. 2006-10 BY INCREASING THE AMOUNT FOR THE ISSUANCE OF BONDS BY $237,500.00 FOR A TOTAL OF $332,500.00 TO FINANCE THE COST OF UTILITY CAPITAL IMPROVEMENTS

THE BOARD OF COMMISSIONERS OF THE BOROUGH OF HARVEY CEDARS, OCEAN COUNTY, NEW JERSEY, DOES ORDAIN:

Section 1. Pursuant to the applicable statutes of the State of New Jersey, there is hereby authorized the capital improvements within the Borough of Harvey Cedars as follows:

Repainting and repairs of water tower in the amount of $237,500.00.

Section 2. It is hereby determined, declared and found as follows:

A. That the estimated maximum amount to be raised from all sources for said purpose is the sum of $250,000.00.

B. That the estimated maximum amount of bonds or notes to be issued for said purpose is $237,500.00.

C. That a down payment for the purposes stated in Section 1 hereof is available in the Capital Improvement Fund of the Borough in the amount of $12,500.00.

Section 3. The sum of $237,500.00 to be raised by the issuance of bonds, together with the sum of $12,500.00 from the Capital Improvement Fund of the Borough, be and the same are hereby appropriated for the purposes stated in this ordinance.

Section 4. That there is hereby authorized the issuance of negotiable bonds of the Borough in an aggregate principal amount not exceeding $237,500.00 for the purposes of financing the cost of the improvements described in Section 1 hereof, to be borne by the Borough at large, pursuant to the Local Bond Law, constituting Chapter 2 of Title 40A of the Revised Statutes of New Jersey.

Section 5. That pending the issuance of the permanent bonds authorized in Section 4 hereof, there is hereby authorized the issuance of bond anticipation notes of the Borough in an aggregate principal amount not exceeding $237,500.00 pursuant to said Local Bond Law.

Section 6. It is hereby determined and declared by this governing body as follows:

A. That the bonds or notes issued pursuant to this ordinance shall bear interest at a rate not exceeding that allowed by law.

B. That the form, maturities, method of sale and other details of the bonds and notes authorized herein shall be determined by subsequent resolutions adopted pursuant to law.

C. That the period of usefulness of the improvements described in Section 1 hereof for which the obligations authorized in this ordinance are to be issued within the limitations prescribed by the Local Bond Law as follows:

Repainting of water tower – fifteen (15) years.

D. That the supplemental debt statement required by Section 40A:2-42 of the Revised Statutes was, prior to the passage of this ordinance on first reading, duly made and filed in the Office of the Borough Clerk, and that the issuance of the obligations authorized by this ordinance is permitted by law, and said supplemental debt statement shows that the gross debt of the Borough, as defined in Section 40A:2-43 of the Revised Statutes, is increased by this ordinance in the sum of $237,500.00.

Section 7. That the amount of the proceeds of the obligations authorized by this ordinance include interest, accounting, engineering and inspection costs, legal expenses and other expenses as authorized in Section 40A:2-20 of the Revised Statutes.

Section 8. The full faith and credit of the Borough of Harvey Cedars, in the County of Ocean, and State of New Jersey, is hereby pledged for the payment of the principal and interest on all of the bonds or notes issued pursuant to this ordinance, and the sums required for such payment shall, in each year that any of said bonds or notes are outstanding, be included in the annual budget.

Section 9. The Capital budget is hereby amended to conform with the provisions of this inconsistency therewith and the resolutions promulgated by the Local Finance Board showing full detail of the amended capital budget and capital program as approved by the Director, Division of Local Government Services as on file with the municipal clerk and is available for public inspection.

Section 10. Any funds received in the form of grants will be used to reduce the authorized debt.

Section 11. This ordinance shall take effect upon final adoption after publication in accordance with law.

 EFFECTIVE DATE: October 17, 2006