NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED
PUBLIC NOTICE IS HEREBY GIVEN that on December 7, 2016, the Mayor and City Council of LaVerkin City (the "Issuer"), adopted a resolution (the “Resolution”) declaring its intention to issue its Parity Sales Tax Revenue Bonds (the “Bonds”) pursuant to the Utah Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended and to call a public hearing to receive input from the public with respect to the issuance of the Bonds.
TIME, PLACE AND LOCATION OF PUBLIC HEARING
The Issuer shall hold a public hearing on January 4, 2017, at the hour of 6:00 p.m. The location of the public hearing is in the City Office, 435 North Main Street, LaVerkin, Utah. The purpose of the meeting is to receive input from the public with respect to the issuance of the Bonds and any potential impact to the private sector from the construction of the Project. All members of the public are invited to attend and participate.
PURPOSE FOR ISSUING BONDS
The Issuer intends to issue the Bonds for the purpose of (i) financing a portion of the cost of constructing street improvements, including rotomilling of existing surface and installation of new road surface material, the installation of curb, gutter and sidewalks and the restoration of a retaining wall with railing as well as the relocation of power poles, fire hydrants and related water system improvements, together with any and all other related improvements (the “Project”); and (ii) paying costs of issuing the Bonds.
PARAMETERS OF THE BONDS
The Issuer intends to issue the Parity Sales Tax Revenue Bonds in the principal amount of not to exceed $350,000, to bear interest at a rate not to exceed 3.0% per annum, to mature in not to more than 25 years from their date or dates, and to be sold at a price not less than 100% of the total principal amount thereof, plus accrued interest to the date of delivery. The Bonds will specify that any installment of principal on the Bonds which shall not be paid when due shall bear interest at the rate of 18% per annum from the due date thereof until paid.
EXCISE TAXES PROPOSED TO BE PLEDGED
The Issuer proposes to pledge all of the excise tax revenues received by the Issuer pursuant to Sections 59-12-201, et. seq., Utah Code Annotated 1953, as amended for the repayment of the Bonds.
OUTSTANDING BONDS SECURED BY THE SAME REVENUE
The Issuer currently has outstanding bonds secured by the pledge of sales tax revenues, namely: the 2015 Sales Tax Revenue Refunding Bonds, sold to Bank of Utah in the original principal amount of $1,428,000.
ESTIMATED TOTAL COST OF THE BONDS
The estimated total cost to the Issuer for the proposed Bonds is $362,100.00. The estimated cost of principal on the Bonds is $282,000.00 and estimated cost of interest is $80,100.00.
The Series 2017 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 form of Supplemental Indenture of Trust (collectively, the “Indenture”), which were before the Governing Body at the time the Resolution was adopted.
A copy of the Resolution and the Indenture are on file in the office of the City Recorder, 435 North Main Street, LaVerkin, Utah, where they may be examined during regular business hours of the County Clerk 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 any person in interest shall have the right to contest the legality of the Resolution, the Indenture (only as it relates to the Series 2017 Bonds), or the Series 2017 Bonds, or any provision made for the security and payment of the Series 2017 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.
DATED this December 7, 2016.
/s/ Kyle Gubler