Loading...
02-02-21-Resolution-Certificates of Obligation Series 2021A-03/01/2021Resolution 02-02-21 RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION, SERIES 2021A IN A PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000 AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO THE STATE OF TEXAS § COUNTY OF DENTON § THE CITY OF SANGER § WHEREAS, the City Council (the "City Council") of the City of Sanger, Texas (the "City"), is authorized to issue certificates of obligation to pay contractual obligations to be incurred (1) for water and sewer system expansion and improvements, electric utility system renovations and line relocations, and city wide street repairs and improvements and (2) for professional services pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended; WHEREAS, the City Council has determined that it is in the best interests of the City and otherwise desirable to issue certificates of obligation in a principal amount not to exceed $20,000,000.00 styled "City of Sanger, Texas Certificates of Obligation, Series 2021A" (the "Certificates"); WHEREAS, in connection with the Certificates, the City Council intends to publish notice of intent to issue the Certificates (the "Notice") in a newspaper of general circulation in the City; and WHEREAS, the City Council has been presented with and has examined the proposed form of Notice and finds that the form and substance thereof are satisfactory, and that the recitals and findings contained therein are true, correct and complete. BE IT THEREFORE RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS: Section 1. Preamble. The facts and recitations contained in the preamble of this Resolution are hereby found and declared to be true and correct. Section 2. Authorization of Notice. The City Secretary is hereby authorized and directed to execute and deliver the Notice set forth in Exhibit A hereto and to publish such Notice on behalf of the City once a week for two (2) consecutive weeks in a newspaper which is of general circulation in the City, the date of the first publication of the Notice to be at least forty-six (46) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the Certificates. In addition, the Notice shall be posted continuously on the City's website for at least forty-five (45) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the Certificates. Section 3. Designation of Self -Supporting Securities. For the purposes of the Notice, the City hereby designates as self-supporting those public securities listed in the attached 41254265-6043.1 Exhibit B, the debt service on which the City currently pays from sources other than ad valorem tax collections. The City plans to continue to pay these public securities based on this practice; however, there is no guarantee this practice will continue in future years. Section I Engagement of Professionals. This City Council hereby approves the engagement of Orrick, Herrington & Sutcliffe LLP, as bond counsel ("Bond Counsel") in connection with the issuance of the Certificates. Section 4. Authorization of Other Matters Relating Thereto. 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. Section 5. Effective Date. This Resolution shall take effect immediately upon passage. Section 6. Public Meeting. It is officially found, determined and declared that the meeting at which this Resolution is adopted was open to the public in compliance with the advisory issued by the Office of the Governor and public notice of the time, place and subject matter of the public business to be considered at such meeting, including this Resolution, was given all as required by the Texas Government Code, Chapter 551, as amended. [Remainder of Page Intentionally Left Blank] 4125-4265-6043.1 PASSED AND APPI20VID this 1 st day of March, 2021. Mayor City of Sanger, Texas A'I'"I�CST: iffy Secretary City of Sanger,Texas a i zs-awe-caa3. i EXHIBIT A NOTICE OF INTENTION TO ISSUE CERTIFICATES NOTICE IS HEREBY GIVEN that the City Council of the City of Sanger, Texas (the 'City') will hold a meeting at its regular meeting place at the Historic Church Building, 102 N. 71h Street, Sanger, Texas (or if the City is still subject to a stay-at-home order via teleconference and video conference in compliance with an advisory issued by the Office of the Governor) at 7:00 p.m. on the 19th day of April, 2021, which is the time and place tentatively set for the passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of the City's certificates of obligation, payable from an annual ad valorem taxation, as well as a limited (in an amount not to exceed $1,000) pledge of certain revenues of the water and sewer system, in the maximum aggregate principal amount of $20,000,000.00, bearing interest at any rate or rates not to exceed the maximum interest rate now or hereafter authorized by law, as shall be determined within the discretion of the City Council at the time of issuance and maturing over a period of years not to exceed forty (40) years from the date thereof, for the purpose of evidencing the indebtedness of the City (1) for water and sewer system expansion and improvements, electric utility system renovations and line relocations, and city wide street repairs and improvements and (2) for professional services pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended. The estimated combined principal and interest required to pay the Certificates on time and in full is $28,386,038.75. Such estimate is provided for illustrative purposes only and is based on an assumed interest rate of 2.22%. Market conditions affecting interest rates vary based on a number of factors beyond the control of the City, and the City cannot and does not guarantee a particular interest rate associated with the Certificates. As of the date of this notice, the aggregate principal amount of public securities of the City secured by and payable from ad valorem taxes (excluding public securities secured by an ad valorem tax but designated by the City as self-supporting) is $2,368,500.00 and based on the City's expectations, as of the date of this notice the combined principal and interest required to pay all of the outstanding tax -supported debt obligations of the City secured by and payable from ad valorem taxes (excluding public securities secured by an ad valorem tax but designated by the City as self-supporting) on time and in full is $2,729,358.00. City Secretary City of Sanger, Texas 4125-4265-6043.1 EXHIBIT B SELF-SUPPORTING DEBT Principal Amount Designated as Self Supporting Series Designation $ 524,700 Certificates of Obligation, Series 2007 1845800 General Obligation Refunding Bonds, Series 2012 25710,400 Certificates of Obligation, Series 2013 5,430,000 Certificates of Obligation, Series 2015 29100 General Obligation Refunding Bonds, Series 2016 91240,000 Certificates of Obligation, Series 2017 0 General Obligation Refunding Bonds, Series 2019 $18,381,500 Total Principal Amount Designated as Self -Supporting 4125-4265-6043.1 CERTIFICATE FOR RESOLUTION THE STATE OF TEXAS § COUNTY OF DENTON § THE CITY OF SANGER § We, the undersigned officers of the City of Sanger, Texas (the "City"), hereby certify as follows: 1. The City Council of the City convened in a regular meeting on March 1, 2021 at the regular meeting place thereof, within the City, and via teleconference and video conference in compliance with an advisory issued by the Office of the Governor and the roll was called of the duly constituted officers and members of the City Council, to wit: Thomas Muir Gary Bilyeu Marissa Barrett Dennis Dillon Allen Chick David Clark Mayor Mayor Pro Tem Councilmember, Place 1 Councilmember, Place 3 Councilmember, Place 4 Councilmember, Place 5 and all of such persons were present, thus constituting a quorum. Whereupon, among other )usiness, the following was transacted at said meeting: a written RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION, SERIES 2021A IN A PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000.00 AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO (the "Resolution") was duly introduced for the consideration of the City Council and read in full. It was then duly moved and seconded that such Resolution be adopted; and, after due discussion, the motion, carrying with it the adoption of the Resolution, prevailed and carried by the following vote: AYES: 5 NAYS: 0 ABSTENTIONS: 0 2. That a true, full and correct copy of the Resolution adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that the Resolution has been duly recorded in the City Council's minutes of such meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of such meeting pertaining to the adoption of the Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place and subject of the aforesaid meeting, and that the Resolution would be introduced and considered for adoption at such meeting, and each of such officers and members consented, in advance, to the holding of such meeting for such purpose; that such meeting was open to the public in compliance with the advisory issued by the Office of the Governor; and that public notice of the date, hour, place and subject of such meeting was given as required by the Open Meetings Law, Chapter 551, Texas Government Code. 41254265-6043.1 SIGNED this March 1, 2021. City of Sanger, Texas . 2 Mayor of Sanger, Texas 4125-42G5-6043.1