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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 (the “Act”), that on February 23, 2021, the City Council (the “Council”) of the City of Moab, Utah (the “Issuer”), adopted a resolution (the “Resolution”) in which it authorized the issuance of the Issuer’s Sales Tax Revenue and Refunding Bonds, Series 2021 (the “Series 2021 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 called a public hearing.
TIME, PLACE, LOCATION AND PURPOSE OF PUBLIC HEARING
The Issuer shall hold a public hearing on March 23, 2021, at the hour of 7:00 p.m. by electronic means. The public may view the Issuer’s electronic public hearing by viewing the Issuer’s YouTube channel: https://www.youtube.com/MoabCityGovernment. The purpose of the hearing is to receive input from the public with respect to (a) the issuance of the Series 2021 Bonds and (b) any potential economic impact that the project to be financed with proceeds of the Series 2021 Bonds may have on the private sector. All members of the public are invited to attend electronically and participate. Call-in information to make comments during the public hearing can be found on the agenda at: https://moabcity.org/AgendaCenter/City-Council-1.
PURPOSE FOR ISSUING THE SERIES 2021 BONDS
The Series 2021 Bonds will be issued for the purpose of (a) financing all or a portion of the cost of construction of an affordable multi-family housing complex, and all related improvements (the “Series 2021 Project”), (b) refunding certain outstanding obligations of the Issuer, (c) funding any debt service reserve funds, as necessary, and (d) paying costs of issuance of the Series 2021 Bonds.
PARAMETERS OF THE SERIES 2021 BONDS
The Issuer intends to issue the Series 2021 Bonds in the aggregate principal amount of not more than Eight Million Five Hundred Thousand Dollars ($8,500,000), to mature in not more than twenty (20) years from their date or dates, to be sold at a price not less than ninety-eight percent (98%) of the total principal amount thereof, and bearing interest at a rate or rates not to exceed three percent (3.0%) per annum. The Series 2021 Bonds are to be issued and sold by the Issuer pursuant to the Resolution, including as part of said Resolution, a Master Resolution (the “Master Resolution”) which were before the Council in substantially final form at the time of the adoption of the Resolution and said Master Resolution is to be executed by the Issuer in such form and with such changes thereto as shall be approved by the Issuer; provided that the principal amount, interest rate or rates, maturity, and discount of the Series 2021 Bonds will not exceed the maximums set forth above. The Issuer reserves the right to not issue the Series 2021 Bonds for any reason and at any time up to the issuance of the Series 2021 Bonds.
REVENUES PROPOSED TO BE PLEDGED
The Issuer proposes to pledge 100% of the local 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 the Utah Code for the payment of the Series 2021 Bonds (the “Revenues”).
OUTSTANDING BONDS SECURED BY PLEDGED TAXES
The Issuer currently has $3,739,000 of bonds outstanding secured by the Revenues.
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: https://reporting.auditor.utah.gov/searchreport. For additional information, including any information more recent than as of the date of the Financial Report, please contact Joel Linares, City Manager at (435) 259-5121.
TOTAL ESTIMATED COST OF BONDS
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 2021 Bonds, if held until maturity, is $9,797,209.30.
A copy of the Resolution and the form of the Master Resolution are on file in the office of the Moab City Recorder, 217 East Center Street, Moab, 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 Master Resolution (as it pertains to the Series 2021 Bonds), or the Series 2021 Bonds, or any provision made for the security and payment of the Series 2021 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 Moab, Utah may sign a written petition requesting an election to authorize the issuance of the Series 2021 Bonds. If written petitions which have been signed by at least 20% of the registered voters of the City of Moab, 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 2021 Bonds. If fewer than 20% of the registered voters of the City of Moab, Utah file a written petition during said 30-day period, the Issuer may proceed to issue the Series 2021 Bonds without an election.
DATED this February 23, 2021.