RES 2013-35 Adopted RESOLUTION NO. 2013-35
PROVIDING FOR THE DEFEASANCE OF ALL OUTSTANDING
MATURITIES OF THE ORIGINAL PRINCIPAL AMOUNT $4,710,000 GENERAL
OBLIGATION BONDS, SERIES 2006, OF THE CITY OF NORTH AUGUSTA, SOUTH
CAROLINA; AND AUTHORIZING CERTAIN CITY OFFICIALS TO TAKE ALL
ACTION NECESSARY TO EFFECT SUCH DEFEASANCE
WHEREAS, the Mayor and the City Council of the City of North Augusta,
South Carolina (the "City") enacted Ordinance No. 2006-08, entitled "AN ORDINANCE
TO PROVIDE FOR THE ISSUANCE AND SALE OF NOT EXCEEDING FOUR
MILLION SEVEN HUNDRED TEN THOUSAND DOLLARS ($4,710,000) GENERAL
OBLIGATION BONDS, SERIES 2006, OF THE CITY OF NORTH AUGUSTA, SOUTH
CAROLINA, TO PRESCRIBE THE PURPOSES FOR WHICH THE PROCEEDS SHALL
BE EXPENDED, TO PROVIDE FOR THE PAYMENT THEREOF, AND OTHER
MATTERS RELATING THERETO"on August 21, 2006 (the"Bond Ordinance");
WHEREAS, pursuant to the Bond Ordinance, the City issued and delivered
its $4,710,000 General Obligation Bonds, Series 2006, on December 12, 2006 (the "Series
2006 Bonds");
WHEREAS, the Series 2006 Bonds are currently outstanding in the amount
of$3,070,000 and debt service on the Series 2006 Bonds through final maturity on April 1,
2021, totals approximately$3,600,000;
WHEREAS, maturities of the Series 2006 Bonds maturing on or before April
1, 2017 are not subject to redemption, while maturities of the Series 2006 Bonds maturing
after April 1, 2017 are subject to redemption on April 1, 2017 (the "First Call Date") and
after at a redemption price equal to par plus accrued interest to the date of redemption;
WHEREAS, the City has determined that significant financial and budgetary
benefits will accrue to the City and its citizens from the defeasance of the Series 2006 Bonds
in the form of avoided interest cost and maintenance of level annual aggregate millage, and
desires to redeem the Series 2006 Bonds at the First Call Date; and
WHEREAS, the City, upon advice received from its financial advisor, has
determined that sufficient monies are on deposit in its Capital Projects Fund that, together
with investment earnings thereon, will be sufficient to effect the defeasance of the Series
2006 Bonds.
NOW THEREFORE, BE IT RESOLVED that the Mayor and the City
Council of the City of North Augusta, South Carolina, have determined the following:
1. The City Administrator, the Finance Director, or both, shall be
authorized to take all action necessary to effect the defeasance of the Series 2006 Bonds
through the application of certain monies in the Capital Projects Fund, and to make
provision for the costs of defeasance for the same.
RESOLUTION AUTHORIZING DEFEASANCE
SERIES 2006 BONDS Page 2
2. In connection with effecting the defeasance, the City Administrator is
charged with obtaining an opinion of bond counsel stating that the Series 2006 Bonds have
been defeased in accordance with Section 7.01 of the Bond Ordinance and are no longer
Outstanding as that term is defined in the Bond Ordinance.
DONE, RATIFIED AND ADOPTED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF NORTH AUGUSTA, SOUTH CAROLINA, ON THIS
°'
2 °� DAY OF D b e , 2013.
Lark W. Jones, Mayor
ATTEST:
By: .
Donna B. Young, Munici p Clerk
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