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HomeMy WebLinkAboutPR 22581: CERTIFICATES OF OBLIGATION CERTIFICATE FOR RESOLUTION 5 O I THE STATE OF TEXAS § Noy C 0ASe—Ak- 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 May 24, 2022, 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 Bartie Mayor Ingrid Holmes Councilmember, District 1 —Mayor Pro Tem Cal J. Jones Councilmember, District 2 Thomas Kinlaw, III Councilmember, District 3 Kenneth Marks Councilmember, District 4 Charlotte Moses Councilmember, District 7 Donald Frank Councilmember, District 8 and all of said persons were present, except , 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 COMBINATION TAX AND REVENUE 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. 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: voted"aye" NOES: voted"No" ABSTENTIONS: 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 Page 1 of 8 #157628119_v1 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 , 2022. City Secretary City of Port Arthur, Texas (SEAL) Resolution-Publication of Notice of Intention to Issue COs 2022 Page 2 of 8 #157628119_v1 P.R. No. 22581 5/16/2022 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 COMBINATION TAX AND REVENUE 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, (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; 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 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; and Resolution-Publication of Notice of Intention to Issue COs 2022 Page 3 of 8 #157628119_v1 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. Resolution-Publication of Notice of Intention to Issue COs 2022 Page 4 of 8 #157628119 vl 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 $1,143,322 Refunding Bonds, Series 2019 (EDC portion) $56,310,000 City of Port Arthur Certificates of Obligation, $56,305,000 Series 2020B (Water) $28,080,000 Combination Tax and Revenue Certificates of $8,190,000 Obligation, Series 2021 (Water portion) Total $ $65,638,322 Resolution-Publication of Notice of Intention to Issue COs 2022 Page 5 of 8 #157628119_v1 READ, ADOPTED AND APPROVED on this day of May A.D., 2022, at a Regular Meeting of the City Council of the City of Port Arthur, by the following vote: AYES: Mayor: Councilmembers: NOES: Thurman Bartle Mayor APPROVED AS TO FORM: ATTEST: Sherri Bellard Valecia Tizeno City Secretary City Attorney Resolution-Publication of Notice of Intention to Issue COs 2022 Page 6 of 8 #157628 119 vl 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 in person at [ ]:00 [a.m./p.m.] on the [ ]th day of [ ], 2022, 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 $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 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. 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 CONFIRMED. 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 $65,638,322 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 $41 ,226,678; (ii) the current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full is $54,178,614; (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 $14,797,707; (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, 2042. Resolution-Publication of Notice of Intention to Issue COs 2022 Page 7 of 8 #157628119 \1 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 noted above. The public will also be able to view the Public Hearing via the City's website at www.portarthurtx.gov. Any person may participate in the Public Hearing and address the City Council by dialing one of the Toll Free Numbers: (877) 853-5247 US Toll Free and (888) 788-0099 US Toll Free and Entering the Meeting ID: 822 2118 7681 and Participant ID: 328699. WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this day of , 2022. Sherri Bellard, City Secretary City of Port Arthur, Texas Resolution-Publication of Notice of Intention to Issue COs 2022 Page 8 of 8 #157628119_v1