Ordinance of the City of Jersey City, N.J

Ordinance of the City of Jersey City, N.J.

File No. Ord. 20-094 Agenda No. 3.1 (1st Reading) Agenda No. 4.1 (2nd Reading and Final Passage)

REFUNDING BOND ORDINANCE OF THE CITY OF JERSEY CITY, IN THE COUNTY OF HUDSON, NEW JERSEY, PROVIDING FOR THE REFUNDING OF ALL OR A PORTION OF CERTAIN OUTSTANDING BOND ISSUES OF THE CITY, APPROPRIATING AN AMOUNT NOT EXCEEDING $21,300,000 IZING THEREFORE THE AND ISSUANCE AUTHOR OF NOT TO EXCEED $21,300,000 GENERAL OBLIGATION REFUNDING BONDS OF THE CITY OF JERSEY CITY FOR FINANCING THE COST THEREOF

COUNCIL AS A WHOLE offered and moved adoption of the following ordinance:

WHEREAS, pursuant to the Local Bond Law (N.J.S.A. 40A:2-1 et seq.), the City of Jersey City, in the County of Hudson, New Jersey (the “City”) has heretofore issued, inter alia, its $1,987,000 principal amount of Qualified Water Improvement Refunding Bonds, Series 2011B dated December 30, 2011 (the “Series 2011B Refunding Bonds”), its $24,875,000 principal amount of Qualified General Improvement Bonds, Series 2012 dated August 31, 2012 (the “Series 2012 Bonds”), its $16,405,000 principal amount of Qualified General Improvement Refunding Bonds, Series 2012A dated September 20, 2012 (the “Series 2012A Refunding Bonds”) and its $4,690,000 principal amount of Qualified General Improvement Refunding Bonds, Taxable Series 2012C dated September 20, 2012 (the “Series 2012C Refunding Bonds”), providing for the financing and/or refinancing of certain capital improvements of the City; and WHEREAS, the Municipal Council has determined that it is in the best interests of the City to refund all or a portion of (i) the $1,660,000 principal amount of outstanding Series 2011B Refunding Bonds maturing on September 1 in the years 2022 through 2028, inclusive, (ii) the $10,035,000 principal amount of outstanding Series 2012 Bonds maturing on March 1 in the years 2023 through 2027, inclusive, (iii) the $5,210,000 principal amount of outstanding Series 2012A Refunding Bonds maturing on September 1 in the years 2023 through 2025, inclusive, and (iv) the $2,930,000 principal amount of outstanding Series 2012C Refunding Bonds maturing on September 1. 2033 (collectively, the “Bonds to be Refunded”); NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF JERSEY CITY, IN THE COUNTY OF HUDSON, NEW JERSEY (not less than two-thirds of all members thereof affirmatively concurring) AS FOLLOWS: Section 1. The City is hereby authorized (A) to refund all or part of the $19,835,000 principal amount of Bonds to be Refunded and (B) to provide for the payment of the costs of issuing the refunding bonds (including printing, advertising, accounting, financial and legal services, and further including bond insurance premium (if any) and underwriting compensation). Section 2. In order to finance the cost of the purpose described in Section 1 hereof, one or more series of negotiable general obligation refunding bonds (the “Refunding Bonds”) are hereby authorized to be issued from time to time in the principal amount not to exceed $21,300,000 pursuant to the Local Bond Law. Section 3. An aggregate amount not exceeding $250,000 for items of expense listed in and permitted under N.J.S.A. 40A:2-51(b) has been included in the aggregate principal amount of refunding bonds authorized herein. Section 4. The purposes for which the Refunding Bonds are to be issued are (i) refunding the Bonds to Be Refunded and (ii) to provide for the payment of the costs of issuing the refunding bonds (including printing, advertising, accounting, financial and legal services, and further including bond insurance premium (if any) and underwriting compensation). Section 5. Further provisions as to the terms of sale, deposit, securing, regulation, investment, reinvestment, disposition or application of the proceeds of the refunding bonds, and any matters in connection therewith, shall be determined by resolution of the Municipal Council of the City adopted prior to the issuance of the refunding bonds.

APPROVED AS TO LEGAL FORM

Business Administrator Corporation Counsel

Page 1 of☐ 9 Certification Required Ord. 20-094

Refunding Bond Ordinance of the City of Jersey City, in the County of Hudson, New Jersey, Providing for the Refunding of all or a Portion of Certain Outstanding Bond Issues of the City, Appropriating an Amount not Exceeding $21,300,000 Therefore and Authorizing the Issuance of not to Exceed $21,300,000 General Obligation Refunding Bonds of the City of Jersey City for Financing the Cost Thereof

Section 6. All other matters relating to the refunding bonds shall be performed or determined by subsequent resolution of the Municipal Council of the City, or the performance or determination thereof shall be delegated by resolution of the Municipal Council of the City to the Chief Financial Officer of the City. Section 7. The full faith and credit of the City are hereby pledged to the punctual payment of the principal of and the interest on the obligations authorized by this refunding bond ordinance. The obligations shall be direct, unlimited obligations of the City, and the City shall be obligated to levy ad valorem taxes upon all the taxable real property within the City for the payment of the obligations and the interest thereon without limitation of rate or amount. Section 8. A certified copy of this refunding bond ordinance as adopted on first reading has been 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, together with a complete statement in the form prescribed by the Director and signed by the chief financial officer of the City as to the indebtedness to be financed by the issuance of the refunding bonds authorized herein. Section 9. This refunding bond ordinance shall take effect 20 days after the first publication thereof after final adoption, as provided by the Local Bond Law, provided that, except for refunding bonds issued in accordance with N.J.S.A. 40A:2-51(c), this refunding bond ordinance shall not be effective as to any refunding bonds unless the consent of the Local Finance Board has been endorsed upon a certified copy of this refunding bond ordinance as finally adopted.

Page 2 of 9 Ord. 20-094

RECORD OF COUNCIL VOTE ON INTRODUCTION – Oct 21 2020 RIDLEY AYE SALEH AYE LAVARRO AYE PRINZ-AREY AYE SOLOMON AYE RIVERA AYE 9-0 BOGGIANO AYE ROBINSON AYE WATTERMAN, AYE PRES

RECORD OF COUNCIL VOTE TO CLOSE PUBLIC HEARING – Nov 12 2020 RIDLEY AYE SALEH AYE LAVARRO AYE PRINZ-AREY AYE SOLOMON AYE RIVERA AYE 8-0 BOGGIANO AYE ROBINSON ABSENT WATTERMAN, AYE PRES.

SPEAKERS: Yvonne Balcer

RECORD OF COUNCIL VOTE ON AMENDMENTS, IF ANY – RIDLEY SALEH LAVARRO PRINZ-AREY SOLOMON RIVERA BOGGIANO ROBINSON WATTERMAN, PRES.

RECORD OF FINAL COUNCIL VOTE – Nov 12 2020 RIDLEY AYE SALEH AYE LAVARRO AYE PRINZ-AREY AYE SOLOMON AYE RIVERA AYE 8-0 BOGGIANO AYE ROBINSON ABSENT WATTERMAN, AYE PRES.

Adopted on first reading of the Council of Jersey City, N.J. on Oct 21 2020 Adopted on second and final reading after hearing on Nov 12 2020

This is to certify that the foregoing Ordinance was adopted by the Municipal Council at its meeting on Nov 12 2020

City Clerk Joyce E. Watterman, President of Council

Approved: Nov 12 2020

Steven M. Fulop, Mayor Date to Mayor: Nov 13 2020 Approved: Nov 13 2020

Page 3 of 9 Ord. 20-094

FACT SHEET - This summary sheet is to be attached to the front of any ordinance that is submitted for Council consideration. Incomplete or vague fact sheets will be returned with the ordinance.

Project Manager Elizabeth Castillo, Chief Financial Officer 201-547-5036 [email protected] Division Division of Management and Budget

Note: Project Manager must be available by phone during agenda meeting (Wednesday prior to council meeting @ 1:00 p.m.)

Purpose Providing for the Refunding of all or a Portion of Certain Outstanding Bond Issues of the City, Appropriating an Amount not Exceeding $21,300,000

Cost (Identify all sources and amounts) Contract term (include all) N/A

ATTACHMENTS: 0906_sds_2020_Submitted to DLGS - Ord 20-094

Approved by Status: John Mercer, Assistant Business Administrator None Melissa Kozakiewicz, Assistant Business Administrator Approved - Sep 30 2020 Gregory Corrado, Asst. Business Administrator None John McKinney, Attorney None Peter Baker, Corporation Counsel None Amy Forman, Attorney None Nick Strasser, Attorney None Norma Garcia, Attorney None Ray Reddington, Attorney Approved - Sep 30 2020 Jeremy Jacobsen, Attorney None Sapana Shah, Attorney None Brian Platt, Business Administrator Approved - Oct 08 2020

Page 4 of 9 Active

State of New Jersey Department of Community Affairs Supplemental Debt Statement

Local Government: Jersey City Prepared As Of: 10/21/2020

Budget Year Ending December 31 (Month D-D) 2020 (Year)

Name: Elizabeth Castillo Phone: (201)547-5036 Title: Chief Financial Officer Email: [email protected] Address: 280 Grove Street, Suite 211 N-1642 City Hall -Budget Office 2nd Floor Jersey City, New Jersey 07302 CFO Cert #:

Elizabeth Castillo, Being duly sworn, deposes and says: Deponent is the Chief Financial Officer of Jersey City here and in the statement hereinafter mentioned called the local unit. The Supplemental Debt Statement annexed hereto and hereby made a part hereof is a true statement of the debt condition of the local unit as of the date therein stated and is computed as provided by the Local Bond Law of New Jersey.

Decrease Increase Net Debt as per Annual Debt Statement (Since December 31, last past) Net Debt Bonds and Notes for School Purposes $0.00 $ $ $0.00 Bonds and Notes for Self- Liquidating Purposes $0.00 $ $ $0.00 Other Bonds and Notes $549,972,164.00 $48,361,070.79 $36,140,000.00 $537,751,093.21

2 Net Debt at the time of this statement is ……………………………………………………………………………………… $537,751,093.21

The amounts and purposes separately itemized of the obligations about to be authorized, and any deductions which may be made on account of each such item are: (see Note "C" below)

Bond Ordinance Purposes Amount Deduction Net Refunding all or portions of Refunding Bond Bond Series 2011B, 2012, Ordinance 2012A and 2012C $21,300,000.00 $19,835,000.00 $1,465,000.00 $21,300,000.00 $19,835,000.00 $1,465,000.00

4 The net debt of the local unit determined by the addition of the net debt amounts stated in items 2 and 3 above is: $539,216,093.21

5 Equalized valuation basis (the average of the equalized valuations of real estate, including improvements and the assessed valuation of class II railroad property of the local unit for the last 3 preceding years) as stated in the Annual Debt Statement or the revision thereof last filed.

Year Equalized Valuation Real Property with Improvements plus assessed valuation of Class (1) 2017 II RR Property $28,403,595,009.00 Equalized Valuation Real Property with Improvements plus assessed valuation of Class (2) 2018 II RR Property $33,950,177,994.00 Equalized Valuation Real Property with Improvements plus assessed valuation of Class (3) 2019 II RR Property $40,064,411,608.00

6 Equalized Valuation Basis – Average of (1), (2) and (3)………………………………………………… $34,139,394,870.33

7 Net Debt (Line 4 Above) expressed as a percentage of such equalized valuation basis (Line 6 above) is: 1.579%

Notes A If authorization of bonds or notes is permitted by an exception to the debt limit, specify the particular paragraph of N.J.S.A. 40A:2-7 or other section of law providing such exception. B This form is also to be used in the bonding of separate (not Type I) school districts as required by N.J.S.A. 18A:24-16, and filed before the school district election. In such case pages 3 and 4 should be completed to set forth the computation supporting any deduction in line 3 above. C Only the account of bonds or notes about to be authorized should be entered. The amount of the "down payment" provided in the bond ordinance should not be included nor shown as a deduction.

Page 5 of 9 COMPUTATION AS TO INDEBTEDNESS FOR IMPROVEMENT OR EXTENSION OF AN EXISTING MUNICIPAL PUBLIC UTILITY, N.J.S.A. 40A:2-7(h); NJSA 40A:2-47(a)

1. Annual Debt Statement, excess in revenues of utility 2. Less Interest and principal computed as provided in N.J.S.A. 40A:2-47(a) for all obligations authorized but not issued to the extent not already charged to income in the annual debt statement. 3. Excess revenue prior to authorizing proposed obligations = (column 1 minus column 2) 4. Interest and principal calculated for proposed obligations N.J.S.A. 40A:2-47(a) (a) Interest for one year at 4 1/2% (b) First installment of serial bonds legally issuable (c) Total charges (Items (a) and (b))

1 2 3 4(a) 4(b) 4(c) 1st Installment of ADS Excess in Less Interest and Municipal Public Utility Excess Revenue Interest for One Year Serial Bonds Total Charges Page 6 of 9 Revenues of Utility Principal Legally Issuable

Note: If line 3 equals or exceeds line 4, obligations may be authorized under the provisions of N.J.S.A. 40A:2-7(h) as limited by N.J.S.A. 40A:2-47(a).

Page 2 of 5 COMPUTATION OF SCHOOL INDEBTEDNESS AND DEDUCTIONS UNDER PROVISIONS OF N.J.S.A. 18A: 24-17

N.J.S.A. 18A:24-19 (Lines 1 to 7) 1 Average of equalized valuations (page 1, line 3) $34,139,394,870.33 2 Gross School District Debt outstanding and authorized but not issued (not including proposed issue) $ 3 Less: Sinking funds held for payment of School Debt, by Sinking Fund Commission $ 4 Net debt for school purposes (line 2, minus line 3) $0.00 5 Debt deduction for school purposes’ % (as per line below) % $ (a) 2½% Kindergarten or Grade 1 through Grade 6 (b) 3 % Kindergarten or Grade 1 through Grade 8 (c) 3½% Kindergarten or Grade 1 through Grade 9 (d) 4 % Kindergarten or Grade 1 through Grade 12 6 Available debt deduction (excess, if any, of line 5 over line 4) $0.00 7 School Bonds about to be authorized $ Note: Omit lines 8 to 13, if line 6 equals or exceeds line 7. or if shown on line 17

N.J.S.A. 18A:24-22 (Lines 8 to 13) 8 Excess of line 7 over line 6 $0.00 9 Municipal Debt Limit (3½% of line 1 above) $1,194,878,820.46 10 Net Debt $537,751,093.21 11 Available Municipal Borrowing Margin (excess, if any, of line 9 over line 10) $657,127,727.25 12 Use of Municipal Borrowing Margin (line 8 not exceeding line 11) $0.00 Remaining Municipal Borrowing Margin after authorization of proposed School Bonds (line 13 11 minus line 12) $657,127,727.25 Note: Omit lines 14 to 16, if line 11 equals or exceeds line 8, or if shown on line 17

N.J.S.A. 18A:24-24 (lines 14 to 16) 14 Amount of line 7 $ 15 Amount of Deduction: (a) Amount of line 6 $0.00 (b) Amount of line 11 $657,127,727.25 Total $657,127,727.25 16 Excess of line 14 over line 15 $0.00

Page 3 of 5

Page 7 of 9 Computation of Regional School Indebtedness

1 2 3 4 5 Average Equalized Valuations 40A:2-43 Total Apportionment of Previous Bonds Issued or Apportionment of Previous Amount Apportionment of Municipality Authorized plus Apportionment Amount Percentage Bonds Issued or Authorized Proposed Bond Issue Proposed Bond Issue (Column 3 plus 4) % Totals % Page 8 of 9

Page 4 of 5 SPECIAL DEBT STATEMENT

BORROWING POWER AVAILABLE UNDER N.J.S.A. 40A:2-7(f)

1 Amount of accumulated debt incurring capacity under RS 40:1-16(d) as shown on the latest Annual Debt Statement. $ 2 Obligations heretofore authorized in excess of debt limitation and pursuant to: (a) N.J.S.A. 40A:2-7(d) $ (b) N.J.S.A. 40A:2-7(f) $ (c) N.J.S.A. 40A:2-7(g) $ Total $0.00 3 Available debt incurring capacity (N.J.S.A. 40A:2-7(f)) $ Obligations about to be authorized pursuant to N.J.S.A. 40A :2-7(f) (If item 3 4 equals or exceeds item 4, obligations may be authorized) $

BORROWING POWER AVAILABLE UNDER N.J.S.A. 40A:2-7(g)

1 Total appropriations made in local unit budget for current fiscal year for payment of obligations of local unit included in Annual Debt Statement or revision thereof last filed as of preceding December 31, 2019 $ Less the amount of such obligations which constitute utility and assessment 2 obligations: $ 3 Excess of item 1 over item 2: $0.00 Amount raised in the tax levy of the current fiscal year by the local unit for the 4 payment of bonds or notes of any school district $ 5 Amount equal to 2/3 of the sum of item 3 and item 4 $0.00 (a) Amount of obligations heretofore authorized under N.J.S.A. 40A:2-7(g) in 6 current fiscal year $ (b) Amount of authorizations included in 6(a) which were heretofore repealed $ (c) Excess of item 6(a) over item 6(b) $0.00 7 Excess of item 5 over item 6(c) $0.00 8 Obligations about to be authorized $ 9 Borrowing capacity still remaining after proposed authorization $0.00

(item 7 less item 8) (If item 7 equals or exceeds item 8, obligations may be authorized)

Page 5 of 5

Page 9 of 9