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Home My WebLink AboutPR 21180: CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $10,000.000.00 P.R. No. 21180 11/25/19 kd RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS, AUTHORIZING THE PUBLICATION OF THE NOTICE OF INTENTION TO ISSUE CITY OF PORT ARTHUR, TEXAS CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000 FOR THE CONSTRUCTION OF PUBLIC WORKS AND ANY ITEMS RELATED THERETO AND FOR THE PAYMENT OF CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES; AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES; AND CONTAINING OTHER PROVISIONS RELATING THERETO. WHEREAS, the City Council (the "City Council") of the City of Port Arthur, Texas (the "City"), is authorized to issue certificates of obligation to pay contractual obligations to be incurred for the construction of public works, any items related thereto, and for the payment of contractual obligations for professional services pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended; and WHEREAS, the City Council has determined that it is in the best interest of the City and otherwise desirable to issue certificates of obligation in a principal amount not to exceed $10,000,000 (the "Certificates of Obligation") for the construction of public works, more specifically, the construction, reconstruction of City streets and other street related improvements, including but not limited to drainage and sidewalks on such street projects, and any items related thereto, and for the payment of contractual obligations for professional services incurred in connection with the construction of such public works; and WHEREAS, prior to the issuance of the Certificates of Obligation, the City is required to publish notice of its intention to issue the Certificates of Obligation (the "Notice") in a newspaper of general circulation in the City stating (i) the time and place the City Council tentatively proposes to pass the ordinance(s) authorizing the issuance of the Certificates of Obligation; (ii) the maximum principal amount of Certificates of Obligation proposed to be issued; (iii) the purpose for which the Certificates of Obligation are to be issued; (iv) the manner in which the City Council proposes to pay for the Certificates of Obligation; (v) the then-current principal of all outstanding debt obligations of the City; (vi) the then-current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full, which may be based on the City's expectations relative to the interest due on any variable rate debt obligations; (vii) the estimated combined principal and interest required to pay the Certificates of Obligation to be authorized on time and in full; (viii) the estimated interest rate for the certificates to be authorized or that the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and (ix) the maximum maturity date of the certificates to be authorized. Page 1 of 5 #71582295_v2 WHEREAS, for purposes of providing for the sale of the Certificates of Obligation, the City Council intends to authorize the preparation of a Preliminary Official Statement (the "Preliminary Official Statement") to be used in the public offering of the Certificates of Obligation; and WHEREAS, the City Council has been presented with and has examined the proposed form of the Notice and finds that the form and substance thereof are satisfactory, and that the recitals and findings contained therein are true, correct and complete; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the facts and recitations contained in the preamble of this Resolution are hereby found and declared to be true and correct. Section 2. That attached hereto and marked "Exhibit A" is a copy of the Notice, the form and substance of which are hereby adopted and approved. Section 3. That the Mayor or the City Secretary shall cause the Notice to be published, in substantially the form attached hereto, in a newspaper, as described in Section 2051.044, Texas Government Code, of general circulation in the City for two consecutive weeks with the date of first publication to be before the 45th day before the date tentatively set for the passage of the ordinance authorizing the issuance of the Certificates of Obligation. Section 4. That the City Council hereby approves the preparation and distribution by the City's financial advisor to prospective purchasers of the Certificates of the Preliminary Official Statement, as the same may be completed, modified, or supplemented with the approval of the Mayor or other authorized officers and agents of the City. Section 5. That the Mayor, City Secretary and other officers and agents of the City are hereby authorized and directed to do any and all things necessary or desirable to carry out the provisions of this Resolution. READ, ADOPTED, AND APPROVED, this day of December, 2019 AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Resolution-Publication of Notice of Intention to Issue COs 2020 Page 2 of 5 #71582295_Q Thurman Bill Bartle, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: // i Valecia R. Tizeno, y Attorney APPROVED FOR ADMINISTRATION: Ronald Burton, City Manager Resolution-Publication of Notice of Intention to Issue COs 2020 Page 3 of 5 #71582295_v2 EXHIBIT A NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that the City Council of the City of Port Arthur, Texas (the "City") will meet at its regular meeting place in the City Council Chamber at City Hall, 444 4th Street, Port Arthur, Texas at 5:30 p.m. on the 27th day of January, 2020, which is the time and place tentatively set for the passage of one or more an ordinances and such other action as may be deemed necessary to authorize the issuance of the City's certificates of obligation, payable from ad valorem taxation and a limited (in an amount not to exceed $10,000) subordinate pledge of certain revenues of the waterworks and sewer system of the City, in the maximum aggregate principal amount of $10,000,000 for the purpose of evidencing the indebtedness of the City to pay all or any part of the contractual obligations to be incurred for the purpose of (1) the construction of public works, more specifically, the construction, reconstruction of City streets and other street related improvements, including but not limited to drainage and sidewalks on such street projects, and any items related thereto, and (2) professional services incurred in connection with item (1). The City proposes to provide for the payment of such certificates of obligation from the levy and collection of ad valorem taxes in the City as provided by law and from a pledge of limited surplus revenues of the City's waterworks and sewer system, remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve, and other requirements in connection with all of the City's revenue bonds or other obligations (now or hereafter outstanding), which are payable from all or any part of the net revenues of the City's waterworks and sewer system. The certificates of obligation are to be issued, and this notice is given, under and pursuant to the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended ("Chapter 271"). In accordance with the provisions of Chapter 271, the following information has been provided by the City (excludes $1,848,277 principal amount of outstanding debt obligations the City has designated as self-supporting and which the City reasonably expects to pay from revenue sources other than ad valorem taxes; provided, however, that in the event such self-supporting revenue sources are insufficient to pay debt service, the City is obligated to levy ad valorem taxes to pay such debt obligations): (i) the principal amount of all outstanding debt obligations of the City is $32,011,723; (ii) the current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full is $35,880,700; (iii) the maximum principal amount of the certificates of obligation to be authorized is $10,000,000; (iv) the estimated combined principal and interest required to pay the certificates of obligation to be authorized on time and in full is $15,082,047; (v) the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and (vi) the maximum maturity date of the certificates of obligation to be authorized is February 15, 2060. The resolution designating certain outstanding debt obligations of the City as self-supporting for purposes of Chapter 271 is available upon request to the City at the address noted above Resolution-Publication of Notice of Intention to Issue COs 2020 Page 4 of 5 #71582295_‘2 WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this day of December, 2019. Sherri Bellard, City Secretary City of Port Arthur, Texas Resolution-Publication of Notice of Intention to Issue COs 2020 Page 5 of 5 #71582295_v2