HomeMy WebLinkAboutPR 21555: TEXAS CERTIFICATES OF OBLIGATION P.R. No. 21555
3/9/2021 DM
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 $32,900,000 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
$32,900,000 (the "Certificates of Obligation") for the construction of public works, more
specifically, (1) the construction or reconstruction of City streets and other street related
improvements, including but not limited to drainage and sidewalks on such street projects;
(2) construction or reconstruction of the drainage system including but not limited to
drainage pump stations; (3) the construction or reconstruction of new City facilities, including
but not limited to an animal shelter and a health facility; (4) construction or reconstruction
of the City's Water and Sewer System including but not limited to lift stations, water lines,
sewer mains, force mains and collection system rehabilitation, and any items related thereto
and (5) professional services incurred in connection with items 1-4; 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 purpose for which the Certificates of Obligation are to be issued; (iii) the
manner in which the City Council proposes to pay for the Certificates of Obligation; (iv) the
then-current principal of all outstanding debt obligations of the City; (v) 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; (vi) the maximum principal amount of Certificates
of Obligation proposed to be authorized; (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
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for the Certificates of Obligation may not exceed the maximum legal interest rate; and (ix)
the maximum maturity date of the Certificates of Obligation to be authorized.
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,
THAT:
Section 1. The facts and recitations contained in the preamble of this Resolution are
hereby found and declared to be true and correct.
Section 2. 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. The Mayor or the City Secretary shall cause the Notice to be published,
in substantially the form attached hereto, (i) 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; and (ii) continuously on the City's website for at least 45 days before the date
tentatively set for the passage of the ordinance authorizing the issuance of the Certificates
of Obligation.
Section 4. The City Council hereby approves the preparation and distribution by the
City's financial advisor to prospective purchasers of the Certificates of Obligation 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. 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.
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Section 6. The following is a list of the outstanding self-supporting debt obligations
of the City, which is allocated to Port Arthur Economic Development Corporation and the
City's Water Works and Sewer System:
Bond issue Self-Supporting Amount
$9,120,000 City of Port Arthur General Obligation $1,288,320
Refunding Bonds, Series 2019 (EDC portion)
$9,595,000 City of Port Arthur General Obligation $24,500
Refunding Bonds, Series 2012 (EDC portion)
$9,530,000 City of Port Arthur General Obligation $96,000
Refunding Bonds, Series 2011 (EDC portion)
$56,310,000 City of Port Arthur Certificates of Obligation, $56,310,000
Series 2020B (Water)
Total $57,718,820
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READ, ADOPTED AND APPROVED on this day of A.D.,
2021, at a Meeting of the City Council of the City of Port Arthur, by the following vote: AYES:
Mayor:
Councilmembers:
NOES:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Valecia Tizeno, City Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton, City Manager
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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 11th day of May, 2021, 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 not to exceed $32,900,000 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 the construction of public works, more specifically, (1) the
construction or reconstruction of City streets and other street related improvements,
including but not limited to drainage and sidewalks on such street projects; (2) construction
or reconstruction of the drainage system including but not limited to drainage pump stations;
(3) the construction or reconstruction of new City facilities, including but not limited to an
animal shelter and a health facility; (4) construction or reconstruction of the City's Water and
Sewer System including but not limited to lift stations, water lines, sewer mains, force mains
and collection system rehabilitation, and any items related thereto and (5) professional
services incurred in connection with items 1-4.
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 $57,718,820 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 $27,511,180; (ii) the current combined principal
and interest required to pay all outstanding debt obligations of the City on time and in full is
$33,112,198; (iii) the maximum principal amount of the certificates of obligation to be
authorized is $32,900,000; (iv) the estimated combined principal and interest required to pay
the certificates of obligation to be authorized on time and in full is $44,199,760; (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 August
15, 2051.
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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.
WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this 16th day
of March, 2021.
Sherri Bellard, City Secretary
City of Port Arthur, Texas
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CERTIFICATE FOR RESOLUTION
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
I, the undersigned City Secretary of the City of Port Arthur, Texas (the "City"), hereby
certify as follows:
1 . The City Council of the City convened in regular meeting on March 16, 2021,
at the place stated in the notice of such meeting given as stated below, and the roll was
called of the duly constituted official and members of said City Council, to wit:
Thurman Bartle Mayor
Ingrid Holmes Councilmember, District 1
Cal J. Jones Councilmember, District 2
Thomas Kinlaw, Ill Councilmember, District 3
Kenneth Marks Councilmember, District 4
Charlotte Moses Councilmember, District 7 — Mayor Pro Tem
Donald Frank Councilmember, District 8
and all of said persons were present, thus constituting a quorum. Whereupon, among other
business, the following was transacted at said meeting: a written
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 $32,900,000 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.
Was duly introduced for the consideration of said City Council and read in full. It was then
duly moved and seconded that said Resolution be adopted; and, after due discussion„ said
motion, carrying with it the adoption of said Resolution, prevailed and carried by the following
vote:
AYES: All those present voted "aye"
NOES:
ABSTENTIONS:
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2. That a true, full, and correct copy of the aforesaid ordinance adopted at the
meeting described in the above and foregoing paragraph is attached to and follows this
certificate; that said
ordinance has been duly recorded in said City Council's minutes of said meeting; that the
above and foregoing paragraph is a true, full, and correct excerpt from the said City Council's
minutes of said meeting pertaining to the adoption of said ordinance; that the persons named
in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and
members of said City Council as indicated therein; that each of the officers and members of
said City Council was duly and sufficiently notified officially and personally, in advance, of
the date, hour, place, and purpose of the aforesaid meeting, and each of said officers and
members consented, in advance, to the holding of said meeting for such purpose; that said
meeting was open to the public as required by law; and that public notice of the date, hour,
place and subject of said meeting was given as required by the Texas Open Meetings Act.
SIGNED AND SEALED this , 2021.
Sherri Bellard, City Secretary
City of Port Arthur, Texas
(SEAL)
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