title
ORDINANCE AMENDMENT OF THE NEW HAVEN BOARD OF ALDERS TO APPROPRIATING ORDINANCE #3 FOR FISCAL YEAR 2026-2027 AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS FISCAL YEAR 2026-2027 AND APPROPRIATING $27,000,000 TO FUND THE LITIGATION SELF-INSURANCE FUND FOR THE CITY’S SETTLEMENT OF HORN V. CITY OF NEW HAVEN, ET AL AND JACKSON V. CITY OF NEW HAVEN, ET AL
body
WHEREAS, the City of New Haven, Connecticut (the “City”) entered into litigation settlement agreements for the cases of Horn v. City of New Haven, et al and Jackson v. City of New Haven, et al (the “Settlements”); and
WHEREAS, the Litigation Settlement Committee of the City approved the Settlements on August 19, 2026; and
WHEREAS, the City is seeking approval from the Board of Alders of the City of New Haven to authorize general obligation bonds in an amount not to exceed $27,000,000 to fund the Litigation Self-Insurance Fund, established pursuant to Section 273 of the Special Laws of the City of New Haven(the “Litigation Self-Insurance Fund”), wherefrom the City is authorized to pay the sum of any judgment, compromise, adjustment, award, or settlement under a voluntary agreement of compensation, memoranda of understanding, memoranda of agreement, and/or letter of agreement, that may be entered into between the City and a claimant and approved by the Litigation Settlement Committee.
NOW THEREFORE BE IT ORDAINED by the Board of Alders of the City of New Haven that:
(a) Not exceeding $27,000,000 General Obligation Bonds (the “Bonds”) shall be issued in one or more series for the purpose of financing the Settlements, and the proceeds thereof are hereby appropriated for said purpose, as follows; and
|
Project Number |
Project Name |
Amount |
|
New |
Litigation Self-Insurance Fund |
Not exceeding $27,000,000 |
BE IT FURTHER ORDAINED by the Board of Alders of the City of New Haven as follows:
(b) The Bonds of each series shall mature not later than the maximum maturity permitted by the General Statutes of Connecticut, Revision of 1958, as amended from time to time (the “Connecticut General Statutes”), be executed in the name and on behalf of the City by the manual or facsimile signatures of the Mayor, City Treasurer and Controller, bear the City seal or a facsimile thereof, bear the Corporation Counsel’s endorsement as to form and correctness, be certified by a bank or trust company designated by the Controller which bank or trust company may also be designated as the paying agent, registrar, and transfer agent, and be approved as to their legality by Robinson & Cole LLP, bond counsel. The Bonds shall bear such rate or rates of interest as shall be determined by the Bond Sale Committee. 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. The aggregate principal amount of Bonds to be issued, the annual installments of principal, interest rates, including taxable rates, redemption provisions, if any, the date, time of issue and sale, and other terms, details, and particulars of such Bonds shall be determined by the Bond Sale Committee in accordance with the requirements of the Connecticut General Statutes. The issuance of any Bonds the interest on which is included in gross income for federal income tax purposes is hereby determined to be in the public interest. No proceeds of the bonds authorized by this Ordinance shall be used to fund any judgments or settlements arising from an employment contract or in connection with a construction contract.
(c) Said Bonds shall be sold by the mayor with the approval of the Bond Sale Committee in a competitive offering or by negotiation. If sold in a competitive offering, the Bonds shall be sold at not less than par and accrued interest based on the lowest net or true interest cost to the City. A notice of sale or a summary thereof describing the Bonds and setting forth the terms and conditions of the sale shall be published at least five days in advance of the sale in a recognized publication carrying municipal bond notices and devoted primarily to financial news and the subject of state and municipal bonds.
(d) The Mayor and the Controller are authorized to make temporary borrowings in anticipation of the receipt of the proceeds of said Bonds. Notes evidencing such borrowings shall be in such denominations, bear interest at such rate or rates, and be payable at such time or times as shall be determined by the Bond Sale Committee, be executed in the name of the City by the manual or facsimile signatures of the Mayor, City Treasurer and Controller, have the City seal or a facsimile thereof affixed, bear the Corporation Counsel’s endorsement as to form and correctness, be certified by a bank or trust company designated by the Controller pursuant to Section 7-373 of the Connecticut General Statutes, and be approved as to their legality by Robinson & Cole LLP, bond counsel. Such notes shall be issued with maturity dates, which comply with the provisions of the Connecticut 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 improvements for the financing of which said notes were issued. Upon the sale of the 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 notes then outstanding or shall be deposited with a bank or trust company in trust for such purpose.
(e) The Mayor and the Controller are authorized to use the proceeds of bonds previously authorized and issued in accordance with any other bond ordinance to fund the Self-Insurance Fund to finance the Settlements pending the issuance of the Bonds. Such temporary use shall be reimbursed upon the issuance of the Bonds authorized by this Ordinance.
(f) The City hereby expresses its official intent pursuant to Section 1.150-2 of the Federal Income Tax Regulations, Title 26 (the “Regulations”), to reimburse expenditures paid 60 days prior to and any time after the date of passage of this Ordinance in the maximum amount of and for the Settlements with the proceeds of bonds, notes, or other obligations authorized to be issued by the City (“Reimbursement Obligations”) which shall be issued to reimburse such expenditures not later than eighteen 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 its intention to reimburse as expressed herein is based upon its reasonable expectations as of this date. The Controller or his designee is authorized to pay project expenses in accordance herewith and Section 278 of the Special Laws of the City of New Haven pending the issuance of the Reimbursement Obligations.
(g) The Mayor, the Controller and the Treasurer, or any two of them are hereby authorized on behalf of the City to enter into agreements or otherwise covenant for the benefit of bondholder’s to provide information on an annual or other periodic basis to the Municipal Securities Rulemaking Board (the “MSRB”) and to provide notices to the MSRB of certain events not in excess of ten (10) business days after the occurrence of the event as enumerated in Securities and Exchange Commission Exchange Act Rule 15c2-12, as amended, as may be necessary, appropriate or desirable to effect the sale of bonds and notes authorized by this ordinance. Any agreements or representations to provide information to the MSRB made prior hereto are hereby confirmed, ratified, and approved.
(h) The Mayor, the Controller, and the Treasurer, or any two of them, are hereby authorized on behalf of the City to enter into any other agreements, instruments, documents, and certificates necessary or desirable with respect to the consummation of the transactions contemplated by this ordinance.