Complete Agenda Package - Town of Hilton Head Island

ORDINANCE NO. _______ PROPOSED ORDINANCE NO. 2013-02
AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED
$9,000,000 GENERAL OBLIGATION BONDS, IN ONE OR MORE SERIES, IN ONE OR
MORE YEARS, WITH APPROPRIATE SERIES DESIGNATIONS, OF THE TOWN OF
HILTON HEAD ISLAND, SOUTH CAROLINA; FIXING THE FORM AND CERTAIN
DETAILS OF THE BONDS; AUTHORIZING THE TOWN MANAGER OR HIS
LAWFULLY AUTHORIZED DESIGNEE TO DETERMINE CERTAIN MATTERS
RELATING TO THE BONDS; PROVIDING FOR THE PAYMENT OF THE BONDS
AND THE DISPOSITION OF THE PROCEEDS THEREOF; TO ADOPT WRITTEN
PROCEDURES RELATED TO TAX-EXEMPT DEBT; OTHER MATTERS RELATING
THERETO; AND PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE .
WHEREAS, the Town Council has been advised that the remaining $5,000,000 in approved
referendum bonds, the proceeds of which must be used for the land acquisition projects approved in the
November 4, 2008, referendum, have to be issued prior to November 4, 2013; and
WHEREAS, the Town Council has identified land acquisition projects including but not limited
to the Planter’s Row Golf Course (the “Referendum Projects”) to be funded with the November 4, 2008
referendum bond proceeds; and
WHEREAS, the Town Council has been advised that due to the current market rates, it would be
in the Town’s best interest to issue general obligation bonds for other capital improvements including but
not limited to purchasing and equipping a new Sheriff’s Office and SHARE Center and making upgrades
to the sewer systems in the Town (the “Capital Projects”); and
WHEREAS, the Town Council has previously adopted a Reimbursement Resolution for the
Capital Projects and has expended funds which will be reimbursed with a portion of the proceeds of the
Bonds.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
HILTON HEAD ISLAND, SOUTH CAROLINA, AND IT IS OREDERED AND ORDAINED BY
SAID AUTHORITY OF COUNCIL:
SECTION 1. Findings and Determinations. The Town Council (the “Council”) of the Town of
Hilton Head Island, South Carolina (the “Town”), hereby finds and determines:
(a) The Town is an incorporated municipality located in Beaufort County, South Carolina, and
as such possesses all powers granted to municipalities by the Constitution and laws of the State of South
Carolina (the “State”).
(b) Article X, Section 14 of the Constitution of the State of South Carolina, 1895, as amended
(the “Constitution”), provides that general obligation debt may be incurred by the governing body of each
municipality of the State for any public and corporate purpose in an amount not exceeding eight (8%)
percent of the assessed value of all taxable property of such municipality and upon such terms and
conditions as the General Assembly may prescribe. Such Article further provides that if general obligation
debt is authorized by a majority vote of the qualified electors of the municipality voting in a referendum
authorized by law, there shall be no conditions or restrictions limiting the incurring of such indebtedness
except as specified in such Article.
COLUMBIA 1105720v3
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