HomeMy WebLinkAboutOrd 239-2005 Bonds by GTUA Refunding and Refinancing.pdfORDINANCE NO. 239-2005
AN ORDINANCE by the City Council of the City of Anna, Texas, relating to
bonds proposed to be issued and delivered by the Greater Texoma Utility
Authority, approving the issuance thereof, and approving the refunding
and refinancing of obligations previously issued by such Authority for the
benefit of the City of Anna.
WHEREAS, the Greater Texoma Utility Authority (the "Authority") and the City of Anna,
Texas (the "City'), have previously executed and delivered an Amended and Restated Contract
for Water Supply and Sewer Service (the "Contrail') whereby the Authority is to provide water
and sewer services to the City;
WHEREAS, under Section 4.15 of the Contract, it is provided that the City shall approve
the issuance by the Authority of any bonds that are to be payable from certain moneys that the
City has contracted to pay under the provisions of the Contract and the form of any purchase
contract for the purchase of such bonds;
WHEREAS, in connection with the proposed "Greater Texoma Utility Aufthty Contract
Revenue Refunding Bonds, Series 2005 (City of Anna Project)" (the "Bonds"), Bank of America,
N.A., Austin, Texas (the "Purchaser) has agreed, pursuant to a Purchase Agreement between
the Purchaser and the Authority, dated as of November 21, 2005 (the "Purchase Agreement"),
to purchase the Bonds, and such purchase of the Bonds by the Purchaser and the terms of the
Purchase Agreement relating to the City are hereby approved;
WHEREAS, the City acknowledges that no Notice of Sale relating to the Bonds has
been prepared, and the City hereby waives any requirement that a Notice of Sale relating to the
Bonds be prepared, because the City has found and determined and hereby finds and
determines that it is neither necessary nor advisable for the Authority to prepare a Notice of
Sale relating to the Bonds because, insofar as the City is concerned, the Purchase Agreement
evidences a 'private placement" of the Bonds with the Purchaser and contains sufficient
information to accomplish the purposes of a Notice of Sale; and
WHEREAS, the net effective interest rate on the Bonds will not exceed fifteen percent
(75%) per annum, and it is now appropriate for this Council to approve the Purchase Agreement
(in lieu of approving a Notice of Sale relating to the Bonds) as well as the issuance and delivery
of the Bonds and the refunding and refinancing of the fdlowing previously issued obligations
payable from Contract revenues:
"Greater Texoma Utility Authority Contract Revenue Bonds, Series 2002 (City of
Anna Project)," dated August 1, 2002, maturing May 1 in each of the years 2006
through 2026, inclusive, and aggregating in the principal amount of $1,850,000
(the "Series 2002 Refunded Bonds"), and
"Greater Texoma Utility Authority Contract Revenue Bonds, Series 2004A (City
of Anna Project)," dated March 15, 2004, maturing May 1 in each of the years
2006 through 2028, inclusive, and aggregating in the principal amount of
$975,000 (the "Series 2004A Refunded Bonds")
45886578.1/10501058
(collectively, the "Refunded Bonds"); such refunding and refinancing to be accomplished with
the proceeds of the Bonds, as more fully set forth in the Resolution of the Authority (the "Bond
Resolution") authorizing the Bonds; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS:
Section 1. The refunding and refinancing of the Refunded Bonds as described in the
preamble hereof and in the Authority's Bond Resolution are hereby approved. The use of the
proceeds of the Bonds, as described above and in the Authority's Bond Resolution, is hereby
approved. The Bond Resolution is approved as to form and content, and the City acknowledges
that the payment of principal of and interest on the Bonds is payable, in whole or in part, from
payments to be made by the City under and pursuant to the Contract. The City agrees to
provide the reports described in the Bond Resolution within the times specified therein, and in
compliance with the Purchase Agreement. The City agrees with the obligations and conditions
set forth in the Purchase Agreement. A copy of such Purchase Agreement is attached hereto
as Exhibit A.
Section 2. It is the purpose and intent of the City Council of the City to approve the
Bond Resolution and the refunding and refinancing of the Refunded Bonds. To the extent
required by the Office of the Attorney General of Texas, the Authority is authorized by this City
Council to make changes and revisions to the Bond Resolution from the form approved by this
ordinance in order to expedite the delivery of the Bonds. It is the indent of the City to authorize
the Authority to proceed with the refunding and refinancing of the Refunded Bonds at the
earliest possible date.
Section 3. In all respects, the Contract is reapproved and shall be and remain in full
force as the agreement of the parties.
Section 4. The findings and determinations of the City Council contained in the
preamble hereof are hereby incorporated by reference and made a part of this Ordinance for all
purposes as if the same were restated in full in this Section.
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PASSED AND APPROVED, this the 22nd day of November, 2005.
City of A�Texas'
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ATTEST:
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Cit Secretary
City of Anna, Texas
(Seal)
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EXHIBIT A
FORM OF PURCHASE AGREEMENT
ae 578.vlo lam A-1