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