Common Council

COMMON COUNCIL MIDDLETOWN, CONNECTICUT SPECIAL MEETING MONDAY, AUGUST 19, 2024 6:00 PM MINUTES A Special Meeting of the Common Council of the City of Middletown was held on Monday, August 19, 2024, at 6:00 PM. This meeting was hybrid: in-person in the Common Council Chamber and remotely accessible via WebEx. The meeting was also livestreamed on the City’s website, on local cable television, and on the City’s Facebook page. Present: Councilwoman Jeanette Blackwell Councilman Anthony Mangiafico Councilman Grady Faulkner, Jr. Councilman Eugene Nocera, President Councilman Darnell Ford Councilman Jonathan Pulino Councilman Anthony Gennaro, Sr. Councilwoman Linda Salafia Councilman Steven Kovach Councilwoman Leslie Spatola Councilman Vincent Loffredo Councilwoman Kelly Sweeney Also Present: Hon. Benjamin Florsheim, Mayor Parliamentarian: Kelly Scott, Esq. Sergeant-at-Arm, Middletown Police Officer Philip Thomas Linda Reed, Clerk of the Common Council Public: Chamber: 40+ WebEx: 5 Facebook: 9 1. Call to Order The Chair calls the meeting to order at 6:02 PM. He welcomes everyone to the Common Council Regular Meeting. A. Pledge of Allegiance The Chair invites everyone to join and recite the Pledge of Allegiance. B. Council Clerk Reads the Call of the Meeting and Mayor declares call a legal call and meeting a legal meeting The Clerk of the Common Council reads the Call of the Meeting and the Chair declares the call a legal 2. Informational Presentations and Councilmember Questions A. Macdonough Elementary School i. Informational Presentation Following an introduction by the Chair, a presentation of the proposed Macdonough Elementary School renovation project is given by Superintendent of Schools Alberto Vasquez Matos and TSKP Architects.  Macdonough Elementary School is in need of renovation due to outdated systems, safety concerns, and lack of modern amenities. Renovating the school would provide a safe and modern learning environment for students.  Existing building has challenges with orientation, roof leaks, and outdated systems.  Proposal includes renovating the 1924 building and removing less efficient contemporary additions.  Site plan options include maintaining current property lines or expanding to create more parking and a prominent entrance.  The Buckley Elementary school is the first net zero verified school in New England.  The cost for moving students from Macdonough to Kegwin and the plans for the BOE's involvement were discussed.  There is a $500,000 budget allocation for Kegwin renovations, including replacing air handlers and making alterations for younger students.  The design fees for the project are estimated to be several hundred thousand dollars. AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 2  The cafeteria in the current design is envisioned to be enclosed to address noise issues.  The historical nature of the building will be preserved while ensuring compliance with building codes.  The school is adding approximately 16 additional teaching environments, including dedicated STEM and program rooms.  The project cost is estimated to be around $48 million, with additional costs for Kegwin school renovations and swing space.  Renovations to three restrooms and one stair tower are needed for the younger population at Kegwin.  Kegwin is currently being used as swing space for the high school and other district programs.  There is over 5000 sq ft of storage at Kegwin that would need to be moved out.  A new dispatch center is needed to accommodate increased call volume and provide proper space for equipment.  A phase two study will be conducted to ensure the site meets EPA standards and address any contaminants.  The current dispatch space is inadequate and a new facility is necessary to enhance service. ii. Councilmember Question & Answer Following the informational presentation, a Question & Answer session for Councilmembers is held. B. Public Safety 911 Center Following an introduction by the Chair, a presentation of the proposed Public Safety 911 Center is given by Director Wayne Bartolotta. i. Informational Presentation  The new space will be state-of-the-art and include amenities such as a fitness center and quiet spaces for employees.  The architects have experience in designing 911 communication centers and have worked on similar projects.  The proposed facility in Middletown is larger than other comparable facilities in the area.  The impact on residents' taxes due to the proposed projects is expected to be minimal.  Debt is being added to the budget, potentially causing problems if more projects are added.  The proposed cost for the 911 center includes additional bonding costs.  There is concern about managing other projects and prioritizing them effectively to avoid overwhelming taxpayers. ii. Councilmember Question & Answer Following the informational presentation, a Question & Answer session for Councilmembers is held. 3. Public Hearing on Agenda Items -- Opens The Chair opens the public hearing on the proposed bond ordinances at 8:02 PM. The Chair states that any member of the public wishing to speak, either in person in the Council Chamber or online via WebEx, may do so by raising their hand or approaching the podium here in the Chamber. Speakers are asked to limit remarks to five (5) minutes and keep comments germane to the agenda topic that you are speaking to. A one (1) minute warning on time will be provided/ Also, please state your name and address for the record. Comments are offered by the following members of the public: Philip Pessina Kate Merritt Orlando Ruiz Logan Dancy Patrick McKenna Sigrid Atherton Darrell Ponzio Erik Costa, Police Chief - City of Middletown James Trzaski, Chief - South Fire District David Albert, Chief – Middletown Fire District Sebastian Giuliano, Former Councilmember (no first name) Jones Sheila Daniels Public comments include: AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 3  Macdonough Elementary School is a neighborhood school with high community involvement and various services for students.  The school is in need of renovation and additional space to better serve the community.  There is a strong desire for Macdonough School to become a net zero energy building and generate its own power.  The preservation of green space, including the basketball court, is important to the community.  The proposed renovations to the dispatch center are supported by the Westfield Fire Department and the Chief of Police.  Macdonough School is an important part of the community's history and should be preserved in its current location.  The dispatch center needs a new facility to better support emergency response and protect the citizens of Middletown.  The reimbursement rates for the committee have increased by 10%.  The importance of valuing and supporting the dispatch center was emphasized through a personal anecdote. 4. Public Hearing on Agenda Items – Closes There being no further comment, the Chair closes the public hearing at 8:56 PM 5. Mayor requests Council Clerk to read appropriation and bond ordinance requests and the Certificate of Director of Finance NOTICE OF PUBLIC HEARING AND APPROPRIATION Notice is hereby given that a special meeting of the Common Council of the City of Middletown will be held in the Common Council Chamber of the Municipal Building and remotely, via WebEx, at Join A Meeting, Event # 2344 172 8589 on MONDAY, AUGUST 19, 2024, at 6:00 PM, to conduct a public hearing on the following Appropriation Ordinance: AN ORDINANCE APPROPRIATING $10,000,000 FOR THE ESTABLISHMENT AND OPERATIONS OF A PUBLIC SAFETY 911 CENTER AND AUTHORIZING THE ISSUE OF $10,000,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE Any and all persons interested may appear and be heard. The complete text of the proposed Ordinance is on file and open to public inspection in the office of the City Clerk. ATTEST: Hon. Benjamin Florsheim, Mayor Dated at Middletown, Connecticut, this 14th day of August 2024 NOTICE OF PUBLIC HEARING AND APPROPRIATION Notice is hereby given that a special meeting of the Common Council of the City of Middletown will be held in the Common Council Chamber of the Municipal Building and remotely, via WebEx, at Join A Meeting, Event # 2344 172 8589 on MONDAY, AUGUST 19, 2024, at 6:00 PM, to conduct a public hearing on the following Appropriation Ordinance: AN ORDINANCE APPROPRIATING $48,900,000 FOR THE MACDONOUGH ELEMENTARY SCHOOL RENOVATION AND EXPANSION PROJECT AND AUTHORIZING THE ISSUE OF $48,900,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE Any and all persons interested may appear and be heard. The complete text of the proposed Ordinance is on file and open to public inspection in the office of the City Clerk. ATTEST: Hon. Benjamin Florsheim, Mayor Dated at Middletown, Connecticut, this 14th day of August, 2024 AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 4 A. An Ordinance appropriating $10,000,000 for the establishment and operations of a Public Safety 911 Center, and authorizing the issue of $10,000,000 bonds of the City to meet said appropriation, and, pending the issuance thereof, the making of temporary borrowings for such purpose. APPROVED ORDINANCE NO. 13-24; CC: review/ ORDINANCE – 911 Public Safety Ord 13-24 – 19 Aug 2024 AN ORDINANCE APPROPRIATING $10,000,000 FOR THE ESTABLISHMENT AND OPERATIONS OF A PUBLIC SAFETY 911 CENTER AND AUTHORIZING THE ISSUE OF $10,000,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE Section 1. The sum of $10,000,000 is hereby appropriated for costs of the planning, design, establishment and construction, and furnishing and equipping the operations of a new Public Safety 911 Center (the “911 Center”) in the City of Middletown, Connecticut (the “City”), such costs to include securing a new site and site improvements, demolition, concrete, the acquisition and installation of equipment including, but not limited to, furnishings, fixtures, materials, mechanical systems including HVAC, plumbing, electrical, fire suppression, architect and engineering fees, contract administration costs, environmental costs, contingencies, consultants, training, testing, legal, administrative and financing costs and any other related costs necessary to establish and operate the 911 Center as may be accomplished within said appropriation (hereafter the “Project”). Said appropriation shall be inclusive of state and federal grants and any other revenues that may be applied to the project in aide thereof. Section 2. The expected useful life of the Project is in excess of thirty (30) years. The total estimated cost of the Project is $10,000,000, no portion of which is expected to be paid from sources other than the proposed bond issue. Section 3. To meet said appropriation $10,000,000 bonds of the City, or so much thereof as may be necessary for said purpose, may be issued, maturing not later than the twentieth (20 th) year after their date, or such later date as may be allowed by law. The bonds may be issued in one or more series as shall be determined by the Mayor and the City Treasurer or equivalent officer, and the amount of bonds of each series to be issued shall be fixed by the Mayor and the City Treasurer or equivalent officer. The bonds shall be issued in an amount necessary to meet the cost of the Project and will provide funds sufficient with other funds available for such purpose to pay the principal of and the interest on all temporary borrowings in anticipation of the receipt of the proceeds of said bonds outstanding at the time of the issuance thereof, and to pay for the administrative, printing and legal costs of issuing the bonds. The bonds shall be in the AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 5 denomination of $1,000 or a whole multiple thereof, or, be combined with other bonds of the City and such combined issue shall be in the denomination per aggregate maturity of $1,000 or a whole multiple thereof, be issued in bearer form or in fully registered form, be executed in the name and on behalf of the City by the manual or facsimile signatures of the Mayor and the City Treasurer or equivalent officer, bear the City seal or a facsimile thereof, be certified by a bank or trust company designated by the Mayor and the City Treasurer or equivalent officer, which bank or trust company may be designated the registrar and transfer agent, be payable at a bank or trust company designated by the Mayor and the City Treasurer or equivalent officer, and be approved as to their legality by Bond Counsel. The bonds shall bear such rate or rates of interest (whether fixed or floating) as shall be determined by the Mayor and the City Treasurer or equivalent officer. The bonds shall be general obligations of the City and each of the bonds shall recite that every requirement of law relating to its issue has been duly complied with, that such bond is within every debt and other limit prescribed by law, and that the full faith and credit of the City are pledged to the payment of the principal thereof and the interest thereon and paid from property taxation to the extent not paid from other funds available for the payment thereof. The aggregate principal amount of the bonds of each series, the annual installments of principal, maturity dates, prices, redemption provisions, if any, time of issue and sale, and other terms, details and particulars of such bonds, including the terms of any reserve that might be established as authorized herein, shall be determined by the Mayor and the City Treasurer or equivalent officer in the best interests of the City and in accordance with the requirements of the General Statutes of Connecticut, as amended. Section 4. Said bonds shall be sold by the Mayor and City Treasurer or equivalent officer in a competitive offering or by negotiation, in their discretion. If sold at competitive offering, the bonds shall be at not less than par and accrued interest on the basis of the lowest net or true interest cost to the City, or comparable method. If the bonds are sold by negotiation, the purchase contract shall be approved by the Mayor and City Treasurer or equivalent officer. Section 5. The Mayor and the City Treasurer or equivalent officer are authorized to make temporary borrowings in anticipation of the receipt of the proceeds of any series of said bonds. Notes evidencing such borrowings shall be signed by the manual or facsimile signatures of the Mayor and the City Treasurer or equivalent officer, have the seal of the City or a facsimile thereof affixed, be payable at a bank or trust company designated by the Mayor and the City Treasurer or equivalent officer, be certified by a bank or trust company designated by the Mayor and the City Treasurer or equivalent officer pursuant to the General Statutes of Connecticut, as amended, and be approved as to their legality by Bond Counsel. The notes shall be issued with maturity dates which comply with the provisions of the General Statutes governing the issuance of such notes, as the same may be amended from time to time. The notes shall be general obligations of the City and each of the notes shall recite that every requirement of law relating to its issue has been duly complied with, that such note is within every debt and other limit prescribed by law, and that the full faith and credit of the City are pledged to the payment of the principal thereof and the interest thereon. The net interest cost on such notes, including renewals thereof, and the expense of preparing, issuing and marketing them, to the extent paid from the proceeds of such renewals or said bonds, shall be included as a cost of the Project. Upon the sale of said bonds the proceeds thereof, to the extent required, shall be applied forthwith to the payment of the principal of and the interest on any such temporary borrowings then outstanding or shall be deposited with a bank or trust company in trust for such purpose. Section 6. In connection with the issuance of any bonds or notes authorized herein, the City may exercise any power delegated to municipalities pursuant to Section 7-370b, as may be approved and executed by the Mayor and the City Treasurer or equivalent officer, including the authority to enter into agreements moderating interest rate fluctuation, provided any such agreement or exercise of such authority shall be approved by the Common Council. Section 7. With respect to the receipt of original issuance premium or bid premium upon the sale of the bonds or notes herein authorized, the Mayor and City Treasurer or equivalent officer are authorized, but not required, to apply original issuance premium and bid premium, if applicable, to fund future debt service payments on such bonds or notes or to fund any purpose for which bonds of the City are authorized to be issued, and such application shall reduce the amount of authorized and unissued bonds of the purpose to which the premium was applied, in the amount so applied. Section 8. In order to meet the capital cash flow expenditure needs of the City, the Director of Finance, with notice to and advice from the Mayor and the City Treasurer or equivalent officer, is authorized to allocate and reallocate expenditures incurred for the Project to any bonds or notes of the City outstanding as of the date of such allocation, and the bonds or notes to which such expenditures have been allocated shall be deemed to have been issued for such purpose, including the bonds and notes and Project herein authorized. Section 9. The issue of the bonds aforesaid and of all other bonds or notes of the City heretofore authorized but not yet issued, as of the effective date of this Ordinance, would not cause the indebtedness of the City to exceed any debt limit calculated in accordance with law as shown by the “Debt Statement” attached hereto. Section 10. The Mayor is hereby authorized to spend a sum not to exceed the aforesaid appropriation for the Project for the purposes set forth herein, and the Mayor is specifically authorized to make, execute and deliver any contract or contracts, and any other documents necessary or convenient to complete the improvements authorized herein and the financing thereof. Section 11. The Mayor, the City Treasurer or equivalent officer, the Director of Finance and any other proper City official are each hereby authorized to apply for and accept any available State or Federal grant in aid of the financing of the Project, and to take all action necessary or proper in connection therewith. AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 6 Section 12. The City hereby expresses its official intent pursuant to 1.150-2 of the Federal Income Tax Regulations, Title 26 (the “Regulations”), to reimburse expenditures paid 60 days prior to and after the date of passage of this ordinance in the maximum amount and for the Project with the proceeds of bonds, notes, or other obligations authorized to be issued by the City. Such obligations shall be issued to reimburse such expenditures not later than 18 months after the later of the date of the expenditure or the substantial completion of the Project, or such later date as the Regulations may authorize. The City hereby certifies that the intention to reimburse as expressed herein is based upon its reasonable expectations as of this date. The Director of Finance or his designee is authorized to pay project expenses in accordance herewith pending the issuance of any such reimbursement obligations, and to amend this declaration. Section 13. The Director of Finance is hereby authorized to exercise all powers conferred by Section 3-20e of the general statutes with respect to secondary market disclosure and to provide annual information and notices of material events as enumerated in Securities and Exchange Commission Exchange Act Rule 15c2-12, as amended, as may be necessary, appropriate or desirable to affect the sale of the bonds and notes authorized by this ordinance. Section 14. This ordinance shall take effect when the same shall have been approved by a majority of those voting thereon at a referendum called and warned for such purpose. The date and other particulars of such referendum shall be determined by resolution of the Common Council. In the event that this ordinance shall not be approved at such referendum, it shall be null and void and of no effect. SEE ATTACHED DEBT LIMITATION SCHEDULE DEBT STATEMENT June 30, 2024 CITY OF MIDDLETOWN, CONNECTICUT ANNUAL RECEIPTS FROM TAXATION AND REIMBURSEMENTS ("BASE") Fiscal Year Ended June 30, 2023 149,209,117 BORROWING CAPACITY FOR EACH CLASS 2-1/4 times base for General Purposes 335,720,513 4-1/2 times base for Schools 671,441,027 3-3/4 times base for Sewers 559,534,189 3-1/4 times base for Urban Renewal 484,929,630 3 times base for Unfunded Past Benefit Obligations 447,627,351 MAXIMUM AGGREGATE BORROWING CAPACITY 1,044,463,819 7 times Base INDEBTEDNESS BONDS AND NOTES: GENERAL PURPOSES 79,906,740 SCHOOLS 29,822,950 SEWERS 16,189,404 URBAN RENEWAL - UNFUNDED PAST BENEFIT OBLIGATIONS - BONDS AND NOTES AUTHORIZED BUT UNISSUED: GENERAL PURPOSES 54,360,678 SCHOOLS 8,374,115 SEWERS 16,419,884 URBAN RENEWAL - UNFUNDED PAST BENEFIT OBLIGATIONS - CLEAN WATER FUND LOANS: SEWERS 20,415,490 SUB-TOTAL INDEBTEDNESS 225,489,261 LESS FEDERAL AND STATE OF CONNECTICUT BUILDING GRANTS, COMMITMENTS AND RECEIVABLES GENERAL PURPOSE - SCHOOLS 7,684,681 SEWERS - URBAN RENEWAL - TOTAL DEDUCTIONS 7,684,681 NET INDEBTEDNESS 217,804,580 TOTAL DEDUCTIONS BALANCE OF BORROWING CAPACITY FOR EACH CLASS: GENERAL PURPOSE 201,453,095 SCHOOLS 640,928,643 SEWERS 506,509,411 URBAN RENEWAL 484,929,630 UNFUNDED PAST BENEFIT OBLIGATIONS447,627,351 BALANCE OF MAXIMUM AGGREGATE BORROWING CAPACITY AVAILABLE 826,659,239 Councilwoman Jeanette Blackwell reads the proposed ordinance and moves to approve. Councilman Grady Faulkner, Jr. seconds the motion Councilman Vincent Loffredo moves to waive the reading of the complete ordinance. Councilman Anthony Gennaro, Sr, seconds the motion AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 7 There being no discussion on the motion to waive the reading, the Chair calls for a voice vote. The motion is approved unanimously with 12 Aye votes. (AYE: Councilmembers Blackwell, Ford, Faulkner, Gennaro, Kovach, Loffredo, Mangiafico, Nocera, Pulino, Salafia, Spatola, and Sweeney). The matter is approved. There being no discussion on the underlying motion to approve the proposed bond ordinance appropriation, the Chair asks the Council Clerk to call the roll. Councilwoman Blackwell Aye Councilman Faulkner Aye Councilman Ford Aye Councilman Gennaro Aye Councilman Kovach Aye Councilman Loffredo Aye Councilman Mangiafico Aye Councilman Nocera Aye Councilman Pulino Aye Councilwoman Salafia Aye Councilwoman Spatola Aye Councilwoman Sweeney Aye The motion is approved unanimously with 12 Aye votes. (AYE: Councilmembers Blackwell, Ford, Faulkner, Gennaro, Kovach, Loffredo, Mangiafico, Nocera, Pulino, Salafia, Spatola, and Sweeney). The matter is approved. B. An Ordinance appropriating $48,900,000 for the Macdonough Elementary School renovation and extension project, and authorizing the issue of $48,900,000 bonds of the City to meet said appropriation and, pending the issuance thereof, the making of temporary borrowings for such purpose. APPROVED ORDINANCE NO. 14-24; BOE: review/ ordinance/ Macdonough School bond $48.9M – ORD 14- 24 – 19 Aug 2024 AN ORDINANCE APPROPRIATING $48,900,000 FOR THE MACDONOUGH ELEMENTARY SCHOOL RENOVATION AND EXTENSION PROJECT AND AUTHORIZING THE ISSUE OF $48,900,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE Section 1. The sum of $48,900,000 is hereby appropriated for the Macdonough Elementary School Renovation and Extension project in the City of Middletown, Connecticut (the “City”) consisting of the renovation and extension of the Macdonough Elementary School, such costs to include, but not be limited to, planning, design, demolition, construction, roof repair and/or replacement, property acquisition, site and traffic work, parking, roadways, the acquisition and installation of equipment including, but not limited to, furnishings, fixtures, materials, computers and technology upgrades, mechanical systems including HVAC, plumbing, electrical, architect and engineering fees, contract administration costs, environmental costs, contingencies, consultants, testing, legal, administrative and financing costs and any other related costs necessary and as may be accomplished within said appropriation (hereafter the “Project”). Said appropriation shall be inclusive of state and federal grants and any other revenues that may be applied to the project in aide thereof. Section 2. The expected useful life of the Project is in excess of thirty (30) years. The total estimated cost of the Project is $48,900,000, no portion of which is expected to be paid from sources other than the proposed bond issue. Section 3. To meet said appropriation $48,900,000 bonds of the City, or so much thereof as may be necessary for said purpose, may be issued, maturing not later than the twentieth (20 th) year after their date, or such later date as may be allowed by law. The bonds may be issued in one or more series as shall be determined by the Mayor and the City Treasurer or equivalent officer, and the amount of bonds of each series to be issued shall be fixed by the Mayor and the City Treasurer or equivalent officer. The bonds shall be issued in an amount necessary to meet the cost of the Project and will provide funds sufficient with other funds available for such purpose to pay the principal of and the interest on all temporary borrowings in anticipation of the receipt of the proceeds of said bonds outstanding at the time of the issuance thereof, and to pay for the administrative, printing and legal costs of issuing the bonds. The bonds shall be in the denomination of $1,000 or a whole multiple thereof, or, be combined with other bonds of the City and such combined issue shall be in the denomination per aggregate maturity of $1,000 or a whole multiple thereof, be issued in bearer form or in fully registered form, be executed in the name and on behalf of the City by the manual or facsimile signatures of the Mayor and the City Treasurer or equivalent officer, bear the City seal or a facsimile thereof, be certified by a bank or trust company designated by the Mayor and the City Treasurer or equivalent officer, which bank or trust company may be designated the registrar and transfer agent, be payable at a bank or trust company designated by the Mayor and the City Treasurer or equivalent officer, and be approved as to their legality by Bond Counsel. The bonds shall bear such rate or rates of interest (whether fixed or floating) as shall be determined by the Mayor and the City Treasurer or equivalent officer. The bonds shall be general obligations of the City and each of the bonds shall recite that every requirement of law relating to its issue has been duly complied with, that such bond is within every debt and other limit prescribed by law, and that the full faith and credit of the City are pledged to the payment of the principal thereof and the interest thereon and paid from property taxation to the extent not paid from other funds available for the payment AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 8 thereof. The aggregate principal amount of the bonds of each series, the annual installments of principal, maturity dates, prices, redemption provisions, if any, time of issue and sale, and other terms, details and particulars of such bonds, including the terms of any reserve that might be established as authorized herein, shall be determined by the Mayor and the City Treasurer or equivalent officer in the best interests of the City and in accordance with the requirements of the General Statutes of Connecticut, as amended. Section 4. Said bonds shall be sold by the Mayor and City Treasurer or equivalent officer in a competitive offering or by negotiation, in their discretion. If sold at competitive offering, the bonds shall be at not less than par and accrued interest on the basis of the lowest net or true interest cost to the City, or comparable method. If the bonds are sold by negotiation, the purchase contract shall be approved by the Mayor and City Treasurer or equivalent officer. Section 5. The Mayor and the City Treasurer or equivalent officer are authorized to make temporary borrowings in anticipation of the receipt of the proceeds of any series of said bonds. Notes evidencing such borrowings shall be signed by the manual or facsimile signatures of the Mayor and the City Treasurer or equivalent officer, have the seal of the City or a facsimile thereof affixed, be payable at a bank or trust company designated by the Mayor and the City Treasurer or equivalent officer, be certified by a bank or trust company designated by the Mayor and the City Treasurer or equivalent officer pursuant to the General Statutes of Connecticut, as amended, and be approved as to their legality by Bond Counsel. The notes shall be issued with maturity dates which comply with the provisions of the General Statutes governing the issuance of such notes, as the same may be amended from time to time. The notes shall be general obligations of the City and each of the notes shall recite that every requirement of law relating to its issue has been duly complied with, that such note is within every debt and other limit prescribed by law, and that the full faith and credit of the City are pledged to the payment of the principal thereof and the interest thereon. The net interest cost on such notes, including renewals thereof, and the expense of preparing, issuing and marketing them, to the extent paid from the proceeds of such renewals or said bonds, shall be included as a cost of the Project. Upon the sale of said bonds the proceeds thereof, to the extent required, shall be applied forthwith to the payment of the principal of and the interest on any such temporary borrowings then outstanding or shall be deposited with a bank or trust company in trust for such purpose. Section 6. In connection with the issuance of any bonds or notes authorized herein, the City may exercise any power delegated to municipalities pursuant to Section 7-370b, as may be approved and executed by the Mayor and the City Treasurer or equivalent officer, including the authority to enter into agreements moderating interest rate fluctuation, provided any such agreement or exercise of such authority shall be approved by the Common Council. Section 7. With respect to the receipt of original issuance premium or bid premium upon the sale of the bonds or notes herein authorized, the Mayor and City Treasurer or equivalent officer are authorized, but not required, to apply original issuance premium and bid premium, if applicable, to fund future debt service payments on such bonds or notes or to fund any purpose for which bonds of the City are authorized to be issued, and such application shall reduce the amount of authorized and unissued bonds of the purpose to which the premium was applied, in the amount so applied. Section 8. In order to meet the capital cash flow expenditure needs of the City, the Director of Finance, with notice to and advice from the Mayor and the City Treasurer or equivalent officer, is authorized to allocate and reallocate expenditures incurred for the Project to any bonds or notes of the City outstanding as of the date of such allocation, and the bonds or notes to which such expenditures have been allocated shall be deemed to have been issued for such purpose, including the bonds and notes and Project herein authorized. Section 9. The issue of the bonds aforesaid and of all other bonds or notes of the City heretofore authorized but not yet issued, as of the effective date of this Ordinance, would not cause the indebtedness of the City to exceed any debt limit calculated in accordance with law as shown by the “Debt Statement” attached hereto. Section 10. The Mayor is hereby authorized to spend a sum not to exceed the aforesaid appropriation for the Project for the purposes set forth herein, and the Mayor is specifically authorized to make, execute and deliver any contract or contracts, and any other documents necessary or convenient to complete the improvements authorized herein and the financing thereof. Section 11. The Mayor, the City Treasurer or equivalent officer, the Director of Finance and any other proper City official are each hereby authorized to apply for and accept any available State or Federal grant in aid of the financing of the Project, and to take all action necessary or proper in connection therewith. Section 12. The City hereby expresses its official intent pursuant to 1.150-2 of the Federal Income Tax Regulations, Title 26 (the “Regulations”), to reimburse expenditures paid 60 days prior to and after the date of passage of this ordinance in the maximum amount and for the Project with the proceeds of bonds, notes, or other obligations authorized to be issued by the City. Such obligations shall be issued to reimburse such expenditures not later than 18 months after the later of the date of the expenditure or the substantial completion of the Project, or such later date as the Regulations may authorize. The City hereby certifies that the intention to reimburse as expressed herein is based upon its reasonable expectations as of this date. The Director of Finance or his designee is authorized to pay project expenses in accordance herewith pending the issuance of any such reimbursement obligations, and to amend this declaration. Section 13. The Director of Finance is hereby authorized to exercise all powers conferred by Section 3-20e of the general statutes with respect to secondary market disclosure and to provide annual information and notices of material events as enumerated in Securities and Exchange Commission Exchange Act Rule 15c2-12, as amended, as may be necessary, appropriate or desirable to affect the sale of the bonds and notes authorized by this ordinance. AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 9 Section 14. This ordinance shall take effect when the same shall have been approved by a majority of those voting thereon at a referendum called and warned for such purpose. The date and other particulars of such referendum shall be determined by resolution of the Common Council. In the event that this ordinance shall not be approved at such referendum, it shall be null and void and of no effect. SEE ATTACHED DEBT LIMITATION SCHEDULE DEBT STATEMENT June 30, 2024 CITY OF MIDDLETOWN, CONNECTICUT ANNUAL RECEIPTS FROM TAXATION AND REIMBURSEMENTS ("BASE") Fiscal Year Ended June 30, 2023 149,209,117 BORROWING CAPACITY FOR EACH CLASS 2-1/4 times base for General Purposes 335,720,513 4-1/2 times base for Schools 671,441,027 3-3/4 times base for Sewers 559,534,189 3-1/4 times base for Urban Renewal 484,929,630 3 times base for Unfunded Past Benefit Obligations 447,627,351 MAXIMUM AGGREGATE BORROWING CAPACITY 1,044,463,819 7 times Base INDEBTEDNESS BONDS AND NOTES: GENERAL PURPOSES 79,906,740 SCHOOLS 29,822,950 SEWERS 16,189,404 URBAN RENEWAL - UNFUNDED PAST BENEFIT OBLIGATIONS - BONDS AND NOTES AUTHORIZED BUT UNISSUED: GENERAL PURPOSES 54,360,678 SCHOOLS 8,374,115 SEWERS 16,419,884 URBAN RENEWAL - UNFUNDED PAST BENEFIT OBLIGATIONS - CLEAN WATER FUND LOANS: SEWERS 20,415,490 SUB-TOTAL INDEBTEDNESS 225,489,261 LESS FEDERAL AND STATE OF CONNECTICUT BUILDING GRANTS, COMMITMENTS AND RECEIVABLES GENERAL PURPOSE - SCHOOLS 7,684,681 SEWERS - URBAN RENEWAL - TOTAL DEDUCTIONS 7,684,681 NET INDEBTEDNESS 217,804,580 TOTAL DEDUCTIONS BALANCE OF BORROWING CAPACITY FOR EACH CLASS: GENERAL PURPOSE 201,453,095 SCHOOLS 640,928,643 SEWERS 506,509,411 URBAN RENEWAL 484,929,630 UNFUNDED PAST BENEFIT OBLIGATIONS447,627,351 BALANCE OF MAXIMUM AGGREGATE BORROWING CAPACITY AVAILABLE 826,659,239 Councilman Eugene Nocera reads the proposed ordinance and moves to approve. Councilwoman Jeanette Blackwell seconds the motion Councilman Vincent Loffredo moves to waive the reading of the complete ordinance. Councilman Eugene Nocera seconds the motion AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 10 There being no discussion on the motion to waive the reading, the Chair calls for a voice vote. The motion is approved unanimously with 12 Aye votes. (AYE: Councilmembers Blackwell, Ford, Faulkner, Gennaro, Kovach, Loffredo, Mangiafico, Nocera, Pulino, Salafia, Spatola, and Sweeney). The matter is approved. The following Councilmembers offer comments on the pending matter: Councilwoman Blackwell Councilman Faulkner Councilman Nocera Councilwoman Spatola There being no further discussion on the underlying motion to approve the proposed bond ordinance appropriation, the Chair asks the Council Clerk to call the roll. Councilwoman Blackwell Aye Councilman Faulkner Aye Councilman Ford Aye Councilman Gennaro Aye Councilman Kovach Aye Councilman Loffredo Aye Councilman Mangiafico Aye Councilman Nocera Aye Councilman Pulino Aye Councilwoman Salafia Aye Councilwoman Spatola Aye Councilwoman Sweeney Aye The motion is approved unanimously with 11 Aye votes and 1 Nay vote. (AYE: Councilmembers Blackwell, Ford, Faulkner, Gennaro, Kovach, Loffredo, Nocera, Pulino, Salafia, Spatola, and Sweeney; NAY: Councilman Mangiafico). The matter is approved. 6. Resolutions, Ordinances, etc. A. Approving sending the bond ordinance for $10,000,000 for the establishment and operations of a Public Safety 911 Center to the voters on November 5, 2024, and approving the referendum question and ballot label. APPROVED RESOLUTION No: 91-24; K: review/resolution/ CC – bond ord - $10M 911 Center – RES 91-24 – 19 Aug 2024 RESOLUTION PROVIDING FOR REFERENDUM BE IT HEREBY RESOLVED BY THE COMMON COUNCIL OF THE CITY OF MIDDLETOWN: That the ordinance entitled “AN ORDINANCE APPROPRIATING $10,000,000 FOR THE ESTABLISHMENT AND OPERATIONS OF A PUBLIC SAFETY 911 CENTER AND AUTHORIZING THE ISSUE OF $10,000,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE”, as adopted by this meeting of the Common Council, be submitted to a referendum vote of the electors of the City for approval or disapproval in conjunction with the general election on November 5, 2024, between the hours of 6:00 A.M. and 8:00 P.M. and that the warning of said referendum state the question to be voted upon and the ballot label with respect thereto as follows: Question 1: “Shall the ordinance entitled AN ORDINANCE APPROPRIATING $10,000,000 FOR THE ESTABLISHMENT AND OPERATIONS OF A PUBLIC SAFETY 911 CENTER AND AUTHORIZING THE ISSUE OF $10,000,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE‘’ as adopted by the Common Council on August 19, 2024, be approved? YES ____ NO_____” The ballot label for said question shall read as follows: “Shall the $10,000,000 appropriation and bond authorization for the planning, design, construction, and equipping of a new Public Safety 911 Center be approved? YES ___ NO ____” The voting will be by paper/electronic ballot. Those desiring to vote for the question shall fill in the box in front of the question on the ballot at “YES”. Those desiring to vote against the question shall fill in the box in front of the question on the ballot at “NO”. Absentee ballots will be made available in accordance with the law. The warning of said referendum shall also state that the full text of the aforesaid ordinance and question are on file open to public inspection in the office of the City and Town Clerk, that the vote on the aforesaid bond ordinance is taken pursuant to Chapter IX, Section 2 of the City Charter and Chapters 90 and 152 of the Connecticut General Statutes, as amended, and that absentee ballots will be made available in accordance with the law. AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 11 The City and Town Clerk is hereby authorized and directed to prepare and print pursuant to section 9-369b of the Connecticut General Statutes (i) explanatory text for the foregoing question and (ii) materials concerning such question in addition to the explanatory text. Councilwoman Jeanette Blackwell reads the proposed resolution and moves to approve. Councilman Grady Faulkner, Jr. seconds the motion There being no discussion, the Chair calls for a voice vote. The motion is approved unanimously with 12 Aye votes. (AYE: Councilmembers Blackwell, Ford, Faulkner, Gennaro, Kovach, Loffredo, Mangiafico, Nocera, Pulino, Salafia, Spatola, and Sweeney). The matter is approved. B. Approving sending the bond ordinance for $48,900,000 for the Macdonough Elementary School renovation and extension project to the voters on November 5, 2024, and approving the referendum question and ballot label. APPROVED RESOLUTION No; 92-24; K: review/resolution/ CC – Macdonough School bond $48.9M – RES 92-24 – 19 Aug 2024 RESOLUTION PROVIDING FOR REFERENDUM BE IT HEREBY RESOLVED BY THE COMMON COUNCIL OF THE CITY OF MIDDLETOWN: That the ordinance entitled “AN ORDINANCE APPROPRIATING $48,900,000 FOR THE MACDONOUGH ELEMENTARY SCHOOL RENOVATION AND EXTENSION PROJECT AND AUTHORIZING THE ISSUE OF $48,900,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE”, as adopted by this meeting of the Common Council, be submitted to a referendum vote of the electors of the City for approval or disapproval in conjunction with the general election on November 5, 2024, between the hours of 6:00 A.M. and 8:00 P.M. and that the warning of said referendum state the question to be voted upon and the ballot label with respect thereto as follows: Question 1: “Shall the ordinance entitled ‘AN ORDINANCE APPROPRIATING $48,900,000 FOR THE MACDONOUGH ELEMENTARY SCHOOL RENOVATION AND EXTENSION PROJECT AND AUTHORIZING THE ISSUE OF $48,900,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE’ as adopted by the Common Council on August 19, 2024, be approved? YES ____ NO_____” The ballot label for said question shall read as follows: “Shall the $48,900,000 appropriation and bond authorization for the renovation and extension of the Macdonough Elementary School be approved? YES ___ NO ____” The voting will be by paper/electronic ballot. Those desiring to vote for the question shall fill in the box in front of the question on the ballot at “YES”. Those desiring to vote against the question shall fill in the box in front of the question on the ballot at “NO”. Absentee ballots will be made available in accordance with the law. The warning of said referendum shall also state that the full text of the aforesaid ordinance and question are on file open to public inspection in the office of the City and Town Clerk, that the vote on the aforesaid bond ordinance is taken pursuant to Chapter IX, Section 2 of the City Charter and Chapters 90 and 152 of the Connecticut General Statutes, as amended, and that absentee ballots will be made available in accordance with the law. The City and Town Clerk is hereby authorized and directed to prepare and print pursuant to section 9-369b of the Connecticut General Statutes (i) explanatory text for the foregoing question and (ii) materials concerning such question in addition to the explanatory text. Councilman Eugene Nocera reads the proposed resolution and moves to approve. Councilman Grady Faulkner, Jr. seconds the motion There being no discussion, the Chair calls for a voice vote. The motion is approved with 11 Aye votes and 1 Nay vote. (AYE: Councilmembers Blackwell, Ford, Faulkner, Gennaro, Kovach, Loffredo, Nocera, Pulino, Salafia, Spatola, and Sweeney; NAY: Councilman Mangiafico). The matter is approved. AUGUST 19, 2024 COMMON COUNCIL – SPECIAL MEETING Page 12 7. Adjournment There being no further discussion the Chair closes the meeting at 9: 26 PM. Councilman Eugene Nocera moves to adjourn. Councilwoman Linda Salafia seconds the motion. There being no discussion, the Chair calls for a voice vote. The motion is approved unanimously with 12 Aye votes. (AYE: Councilmembers Blackwell, Ford, Faulkner, Gennaro, Kovach, Loffredo, Mangiafico, Nocera, Pulino, Salafia, Spatola, and Sweeney). The matter is approved. The meeting is adjourned at 9:27 PM. ATTEST: LINDA S.K. REED, COMMON COUNCIL CLERK K: review/ minutes/ 2024 Aug 19 – special meeting – 19 Aug 2024