ORDINANCE 11-2003

BOND ORDINANCE PROVIDING FOR VARIOUS CAPITAL IMPROVEMENTS OF THE TOWNSHIP OF MENDHAM, IN THE COUNTY OF MORRIS, NEW JERSEY, APPROPRIATING THE AGGREGATE AMOUNT OF $76,000 THEREFOR AND AUTHORIZING THE ISSUANCE OF $36,200 BONDS OR NOTES OF THE TOWNSHIP TO FINANCE PART OF THE COST THEREOF

BE IT ORDAINED by the Township Committee of the Township of Mendham, in the County of Morris, New Jersey (not less than two-thirds of all members thereof affirmatively concurring) as follows:

Section 1. The several improvements described in Section 3 of this bond ordinance are hereby respectively authorized to be undertaken by the Township of Mendham , New Jersey as general improvements. For the several improvements or purposes described in Section 3, there are hereby appropriated the respective sums of money therein stated as the appropriation made for each improvement or purpose, such sums amounting in the aggregate to $76,000, including the aggregate sum of $39,800 as the several down payments for the improvements or purposes required by the Local Bond Law. The down payments have been made available by virtue of provision for down payment or for capital improvement purposes in one or more previously adopted budgets.

Section 2. In order to finance the additional cost of the several improvements or purposes not covered by application of the several down payments, negotiable bonds are hereby authorized to be issued in the principal amount of $36,200 pursuant to the Local Bond Law. In anticipation of the issuance of the bonds, negotiable bond anticipation notes are hereby authorized to be issued pursuant to and within the limitations prescribed by the Local Bond Law.

Section 3.        The several improvements hereby authorized and the several purposes for which the bonds are to be issued, the estimated cost of each improvement and the appropriation therefore, the estimated maximum amount of bonds or notes to be issued for each improvement and the period of usefulness of each improvement are as follows:

                                                                        Appropriation Down Payment Estimated

                                                                                                And Estimated         and other Maximum Amount    Period of

 Purpose                                                  Cost        Available Funds of Bonds or Notes Usefulness

a) Supplemental appropriation for planning and design $ 35,000 $ 4,500               $ 30,500 10 Years

expenses for emergency government communications (from the

systems (this is in addition to the $30,000 appropriation Capital Improv.

and $28,500 bond authorization provided therefore in Fund)

Section 3(f) of bond ordinance 5-2003 finally adopted

3/25/03 )

b) Supplemental appropriation for the Township’s share

 of planning expenses for the development of a new

 library to be undertaken with the Borough (this is in

 addition to the $25,000 appropriation and $23,750 bond

 authorization provided therefore in Section 3(c) of bond

 ordinance 5-2003 finally adopted 3/25/03 )             $5,000 $5,000                         0 10 Years

 (from the Capital

Surplus Fund)

c) Improvements to the drainage systems in the areas of

  Corey Lane and Ascot Lane                   $16,000 $10,300 $5,700 5 Years

                                                                                                                                ($10,000 from the

                                                                                                                                Capital Surplus Fund

                                                                                                                                And $300 from the

                                                                                                                                Capital Improvement Fund)

d) Acquisition of records management                   $10,000  $10,000 0 5 Years

 systems and other police protection (available from

 equipment for the Police Department a donation and

                                 reserved for the

                                                                                 purchase of police

 equipment

e) Acquisition and installation of $10,000 $10,000 0 5 Years

 fencing for the Middle School and (from the

  Brookside softball fields Recreation

                                                                                                                 Trust Fund

 TOTALS                                  $76,000 $39,800 $36,200

The improvements or purposes above include all costs necessary therefore and incidental thereto. The excess of the appropriation made for each of the improvements or purposes aforesaid over the estimated maximum amount of bonds or notes to be issued therefore, as above stated, is the amount of the down payment, or other funding source as noted, for each purpose.

            Section 4. All bond anticipation notes issued hereunder shall mature at such times as may be determined by the chief financial officer; provided that no note shall mature later than one year from its date. The notes shall bear interest at such rate or rates and be in such form as may be determined by the chief financial officer. The chief financial officer shall determine all matters in connection with notes issued pursuant to this ordinance, and the chief financial officer’s signature upon the notes shall be conclusive evidence as to all such determinations. All notes issued hereunder may be renewed from time to time subject to the provisions of the Local Bond Law The chief financial officer is hereby authorized to sell part or all of the notes from time to time at public or private sale and to deliver them to the purchasers thereof upon receipt of payment of the purchase price plus accrued interest from their dates to the date of delivery thereof. The chief financial officer is directed to report in writing to the governing body at the meeting next succeeding the date when any sale or delivery of the notes pursuant to this ordinance is made. Such report must include the amount, the description, the interest rate and the maturity schedule of the notes sold, the price obtained and the name of the purchaser.

            Section 5. The capital budget of the Township of Mendham is hereby amended to conform with the provisions of this ordinance to the extent of any inconsistency herewith. The resolution in the form promulgated by the Local Finance Board showing full detail of the amended capital budget and capital program as approved by the Director of the Division of Local Government Services is on file with the Clerk and is available there for public inspection.

            Section 6. The following additional matters are hereby determined, declared, recited and stated:

(a)    The purposes described in Section 3 of this bond ordinance are not current expenses. They are all improvements that the Township may lawfully undertake as general improvements, and no part of the costs thereof has been or shall be specially assessed on property specially benefited thereby.

(b)    The average period of usefulness, computed on the basis of the respective amounts of obligations authorized for each purpose and the reasonable life thereof within the limitations of the Local Bond Law, is 9.21 years.

(c)    The Supplemental Debt Statement required by the Local Bond Law has been duly prepared and filed in the office of the Clerk, and a complete executed duplicate thereof has been filed in the office of the Director of the Division of Local Government Services in the Department of Community Affairs of the State of New Jersey . Such statement shows that the gross debt of the Township as defined in the Local Bond Law is increased by the authorization of the bonds and notes provided in this bond ordinance by $36,200, and the obligations authorized herein will be within all debt limitations prescribed by that Law.

(d)    An aggregate amount not exceeding $15,200 for items of expense listed in and permitted under N.J.S.A. 40A:2-20 is included in the estimated costs indicated herein for the purposes or improvements.

Section 7. Any grant monies received for the purpose described in Section 3

hereof shall be applied either to direct payment of the cost of the improvements.

Section 8. The chief financial officer of the Township is hereby authorized to

prepare and to update from time to time as necessary a financial disclosure document to be distributed in connection with the sale of obligations of the township and to execute such disclosure document on behalf of the Township. The chief financial officer is further authorized to enter into the appropriate undertaking to provide secondary market disclosure on behalf of the Township pursuant to Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) for the benefit of holders and beneficial owners of obligations of the Township and to amend such undertaking from time to time in connection with any change in law, or interpretation thereof, provided such undertaking is and continues to be, in the opinion of a nationally recognized bond counsel, consistent with the requirements of the Rule. In the event that the Township fails to comply with its undertaking, the Township shall not be liable for any monetary damages, and the remedy shall be limited to specific performance of the undertaking.

Section 9. The full faith and credit of the Township are hereby pledged to the

punctual payment of the principal of and the interest on the obligations authorized by this bond ordinance. The obligations shall be direct, unlimited obligations of the Township, and the Township shall be obligated to levy ad valorem taxes upon all the taxable real property within the Township for the payment of the obligations and the interest thereon without limitation of rate or amount.

            Section 10. This bond ordinance shall take effect 20 days after the first publication thereof after final adoption, as provided by the Local Bond Law.

Adopted: May 27, 2003