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North East Borough Enacts Ordinance to Guarantee $12 Million Debt Obligation

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Legal Notice of Enactment: Notice is hereby given that on August 5, 2019 the Borough Council for the Borough of North East (“Borough”) enacted an Ordinance that, among other things, authorized the Borough to enter into a Guaranty Agreement among the Borough, North East Borough Sewer Authority (the “Authority”) and the Pennsylvania Infrastructure Investment Authority (“Pennvest”) for the Authority’s $12,618,000 Debt Obligation (the “Obligation”) issued to Pennvest. The Guaranty is being entered into in order to guarantee the obligations of the Authority with respect to the payment of principal of, interest and premium, if any, on the Obligation.

The Guaranty Agreement will result in the Borough incurring lease rental debt with annual payments (for full years) ranging from $0 (until such time as any the principal of the Obligation is drawn down) to $735,038.04.

A summary of the Ordinance was advertised on July 29, 2019, and the proposed text has been available for examination at the office of the undersigned. No amendments were made to the Ordinance on final enactment. A complete text of the Ordinance, as finally enacted, may be examined by any citizen in the offices of the in the North East Borough Office, 31 West Main Street, North East, PA 16428, Monday through Friday between the hours of 8:00 a.m. and 4:30 p.m. prevailing time on any regular business day. This Notice is given in accordance with the Pennsylvania Local Government Unit Debt Act, as amended.

Patrick J. Gehrlein Borough Manager

The following text is the summary referenced in the above notice. It appeared in the print edition of the Erie Times News on July 29th. We did not see the notice in the online notices section of GoErie.com which is why it did not appear here on that day.

Notice is hereby given that the Borough Council for the Borough of North East (“Borough”) will consider the enactment of a proposed ordinance (the “Ordinance”),a summary of which is described in this Legal Notice at an official public meeting and legislative session of the Borough Council, which will be held on Monday, August 5, at 7:00 p.m., prevailing time, at Borough Hall, 31 West Main Street, North East, PA 16428.

If enacted, the Ordinance will:

(a) approve the plan of North East Borough Sewer Authority (the “Authority”) for the issuance of a Debt Obligation In a principal amount not to exceed $12,618,000 (the “Obligation”);
(b) approve use of the proceeds of the Obligation to undertake a public sewer system capital improvements project consisting of the financing of:

  1. the design, construction and/or installation of upgrades and renovations to the Authority’s public sewer system, including improvements to its Site I and Site II Wastewater Treatment Plants, and an effluent pump station and force main to convey treated effluent into Lake Erie, and
  2. the payment of costs of issuing the Obligation;

(c) approve the issuance of a Guaranty Agreement by the Borough guaranteeing payment of principal and interest of the Obligation;
(d) fix the annual amounts of principal and interest to be paid under the Guaranty Agreement and designate the debt incurred thereunder as lease rental debt;
(e) covenant to pay the debt incurred under the Guaranty Agreement ·and pledge the full faith credit and taxing power of the Borough therefor;
(f) authorize the preparation and filing of a debt statement, borrowing base certificate and self-liquidating debt report (to the extent appropriate), and the preparation and filing of any other statements and reports required to qualify the Guaranty Agreement or any portion thereof for exclusion from the appropriate debt limit as self-liquidating debt,
(g) approve the proposal of the Pennsylvania Infrastructure Investment Authority to purchase the Obligation at a private sale; and
(h) authorize the officials of the Borough to take such other appropriate action as is necessary to effect the foregoing purposes.

A copy of the full text of the proposed Ordinance, which includes a copy of the substantial form of the Guaranty Agreement, may be examined by any citizen in the offices North East Borough Office, 31 West Main Street, North East, PA 16428, Monday through Friday between the hours of 8:00 a.m. and 4:30p.m. prevailing time on any regular business day.

This Notice is given in accordance with the Pennsylvania Local Government Unit Debt Act, as amended.

Patrick J. Gehrlein
Borough Manager

Filed Under: Public notices Tagged With:

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