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ORDINANCE 2005-04 (2)Closing Item No. 2 • ORDINANCE 2005 -4 REFUNDING BOND ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $30,000,000 AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION REFUNDING BONDS BY THE TOWNSHIP OF CHERRY HILL, IN THE COUNTY OF CAMDEN, STATE OF NEW JERSEY FOR THE PURPOSE OF REFUNDING CERTAIN BONDS HERETOFORE ISSUED BY THE TOWNSHIP, AND APPROPRIATING THE PROCEEDS OF SUCH REFUNDING BONDS TO SUCH PURPOSE WHEREAS, pursuant to the Local Bond Law, N.J.S.A. §40A:2 -1 et seq., as amended and supplemented (the "Local Bond Law "), the Township of Cherry Hill, in the County of Camden, State of New Jersey (the "township ") has issued $29,030,000 General Obligation Bonds, .Series 2001, dated October 1, 2001, $28,610,000 of which are currently outstanding and $26,755,000 of which are maturing on or after July 15, 2012 and are subject to redemption, consisting of $25,045,000 General Improvement Bonds (the "General Refunded Bonds ") and $1,710,000 Sewer Bonds (the "Sewer Refunded Bonds" and together with the General Refunded Bonds, the "Refunded Bonds "); WHEREAS, the Township Council has determined that refunding bonds can be issued to refund, in whole or in part, such Refunded bonds which, under current market conditions, can generate a debt service savings to the Township; and • WHEREAS, the Township has determined to provide for the refunding of the Refunded Bonds through the issuance by the Township of its General Obligation Refunding Bonds in an aggregate principal amount not to exceed $30,000,000, consisting of General Improvement Refunding Bonds and Sewer Utility Refunding Bonds, as provided in this refunding bond ordinance. NOW, THEREFORE, BE IT ORDAINED AND ENACTED BY THE TOWNSHIP COUNCIL OF THE TOWNSHIP OF CHERRY HILL, IN THE COUNTY OF CAMDEN, STATE OF NEW JERSEY AS FOLLOWS: Section 1. In order to finance the purposes described in Section 2 hereof, negotiable refunding bonds of the Township hereby designated as General Obligation Refunding Bonds (the "Refunding Bonds ") are hereby authorized to be issued in an aggregate principal amount not to exceed $30,000,000. The proceeds of the Refunding Bonds are hereby appropriated to the purposes described in Section 2 hereof. Section 2. (a) The purposes for which the Refunding Bonds are to be issued are (1) refunding the principal amount of Refunded Bonds, including the payment of interest accrued thereon to the date fixed for redemption and the redemption price thereof, and (ii) paying the cost of the issuance relating to the Refunding Bonds, including printing, advertising, accounting, financial and legal services, rating agency fees, underwriter's discount, and bond insurance premium, if any. • (b) The aggregate cost of issuing the Refunding Bonds, as provided by • N.J.S.A. §40A:2 -51(b) (which amount includes all items described in Section 2(a)(ii) hereof) will not exceed $300,000 (exclusive of bond insurance premium). Such amount is included in the maximum authorized aggregate principal amount set forth in Section 1 hereof. (c) The Refunded Bonds shall be called for redemption prior to maturity thereof as provided in the Refunded Bond certificates. A portion of the proceeds from the sale of the Refunding Bonds shall be deposited in trust to provide for the payment and retirement of the Refunded Bonds. Any moneys in trust may be invested as provided in N.J.S.A. §40A:2 -60. Section 3. Any further provisions as to terms of sale, deposit, securing, regulation, investment, reinvestment, disposition or application of the proceeds of the Refunding Bonds, and matters in connection therewith, shall be determined by resolution of the Township adopted prior to the issuance of the Refunding Bonds. Section 4. The Township Council hereby delegates to the Chief Financial Officer of the Township, the power to sell the Refunding Bonds at private sale, to determine the terms of the Refunding Bonds and to perform such other actions and make such other determinations, subject to the limitations to be set forth in a subsequent resolution of the Township. Section 5. The Township Council hereby authorizes and delegates to the Chief Financial Officer, in consultation with the Financial Advisor and Bond Counsel, the authority to negotiate and execute on behalf of the Township a Bond Purchase Contract for the • purchase and sale of the Refunding Bonds with an underwriter to be determined by a subsequent resolution of the Township. Section 6. All other matters relating to the Refunding Bonds shall be performed or determined by subsequent resolution of the Township, or the performance or determination thereof shall be delegated by resolution of the Township to a financial officer of the Township. Section 7. A certified copy of this refunding bond ordinance, as introduced and adopted upon first reading, shall be filed with the Director of the Division of Local Government Services in the Department of Community Affairs of the State of New Jersey prior to final adoption hereof, together with the statement signed by the Chief Financial Officer of the Township required by N.J.S.A. §40A:2 -55. Section 8. The full faith and credit of the Township are hereby pledged to the punctual payment of the principal of and the interest on the Refunding Bonds authorized by this refunding bond ordinance. The Refunding Bonds shall be direct, unlimited obligations of the Township, and, unless paid from other sources, the Township shall be obligated to levy ad valorem taxes upon all the taxable property within the Township for the payment of the Refunding Bonds and the interest thereon without limitation as to rate or amount. 40 Section 9. After passage upon first reading of this refunding bond ordinance, • the Township Acting Township Clerk is hereby authorized and directed to publish the full text of this refunding bond ordinance, together with the "NOTICE OF PENDING BOND ORDINANCE" (with appropriate completions, insertions and corrections), at least once in a newspaper qualified under N.J.S.A. §40A:2 -19, at least seven (7) days prior to the date set for public hearing and further consideration for final passage (which date shall be at least ten (10) days after introduction and first reading). The Acting Township Clerk is further directed to comply with all provisions of N.J.S.A. §40A:2 -17(b) regarding postings, publications, and the provision of copies of this. refunding bond ordinance. Section 10. After final adoption of this refunding bond ordinance by the Township Council, the Acting Township Clerk is hereby directed to publish the full text of this refunding bond ordinance, as finally adopted, together with the "NOTICE OF ADOPTION OF BOND ORDINANCE" (with appropriate completions, insertions and corrections), at least once in a newspaper qualified under N.J.S.A. §40A:2 -19. Section 11. The Township Council hereby covenants on behalf of the Township to take any action necessary or refrain from taking such action in order to preserve the tax - exempt status of the Refunding Bonds authorized hereunder as is or may be required under the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the "Code "), including compliance with the Code with regard to the use, expenditure, investment, timely reporting and rebate of investment earnings as may be required thereunder. Section 12. The purpose of the issuance of the Refunding Bonds is to effect a • debt service savings to the Township. Section 13. This bond ordinance shall take effect twenty (20) days after the first publication hereof after final adoption, as provided by Section 8 hereof and the Local Bond Law, but not prior to the time that the consent of the Local Finance Board, Division of Local Government Services in the New Jersey Department of Community Affairs has been endorsed upon a certified copy of this refunding bond ordinance as finally adopted, as provided by N.J.S.A. §40A:2 -55. • INTRODUCED: JANUARY 24, 2005 ADOPTED: FEBRUARY 14 2005 COUNCIL PRESIDENT ATTEST: NANCY L. SAFFOS, RMC TOWNSHIP CLERK SNJ 1 \287754 \1 142413.000 •