HomeMy WebLinkAboutOrd 344-2007 Approving GTUA Contract Revenue Bonds, Series 2007-BORDINANCE NO. 34 yea 00
AN ORDINANCE by the City Council of the City of Anna, Texas, relating to
Greater Texoma Utility Authority Contract Revenue Bonds, Series 2007-8
(City of Anna Project); and approving the issuance thereof and the
facilities t0 be constructed or acquired by such Anthony.
WHEREAS, the Greater Texoma Utility Authority (the "Authority') and the City of Anna,
Texas (the'City'), have previ0usy executed and delivered an Amended and Restated Contract
for Water Supply and Sawed Service, dated as of April 17, 20W (the'Contracti whereby the
Authority is to provide water and answer 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 (in whole or in part) from
certain moneys that the City has connected to pay under the provisions of the Contract;
WHEREAS, in connection with the proposed 'Greater Texoma Utility Authority Contract
Revenue Bonds, Series 2007-B (City of Anna Project)' (the -Bonds°), the Texas Water
Development Board (the "Board') has agreed, pursuant to an Application Requesting Financial
Assistance (the °Application'), to purchase the Bonds and, therefore, it is neither necessary nor
advisable for the Authority to prepare a Notice of Sale because, insofar as the City is
concerned, the Application contains suffmient information to accomplish the purpose of a Notice
of Sale; and
WHEREAS, the net effective interest rate on the Bonds will not exceed fifteen percent
(15%) per annum and it is now appropriate for this Council to approve the Application (in lieu of
approving a Notice of Sale with respect to the Bonds) as well as the Issuance and delivery of
the Bonds and the facilities to be constructed or acquired with the proceeds of the Bonds for the
project described in Exhibit A (the -Series 2007-B Project") attached t0 the Resolution of the
Authority authorizing the Bonds (the 'Bond Resolution'); now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITU OF ANNA, TEXAS:
SECTION 1. The facilities to be constructed, acquired, and improved by the Authority
with the proceeds of the Bonds for the Sense 2007-8 Project described in Exhibit A hereto and
in Exhibit A attached to the Bond Resolution are hereby approved The use of the proceeds of
the Bonds, as described in Exhibit A to the 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 pad, 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, in compliance with the
Boards commitment. The City agrees with the obligations and conditions set form in the
Board's Commitment 07-54, as amended. A copy of such commitment is attached hereto as
Exhibit B.
SECTION 2. It is the purpose and intent of the City Council of the City to approve the
Bond Resolution, and the facilities to be constructed, acquired, and improved in full accordance
with the provisions of the Contract mentioned In the preamble hereof. To the extent required by
Me Board or 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 intent of the City to authorize
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the Authority to proceed with the construction, acquisition, and improvement of the facilities at
the earliest possible date, but nothing herein shall be corwtmed as a limitation upon the right
and power of the City to approve a change in Has facilities for which the Bonds are to be issued
(but not the purpose for which the Bonds are to be issued as set forth in the Bontl Resolution),
the City specifically reserving the right to modify the facilities for which the Bonds are being
issued if the Authority and the City agree such modification should be made.
SECTION 3. In all respects the Contract is re -approved and shall be and remain in NII
force as the agreement of the parties.
SECTION 43he 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 rf the same were restated in full in this Section.
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PASSED AND APPROVED, this August 28, 2007.
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ATTEST.
CA Secretary
C' Secretary
Anna. Texas
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EXHIBIT A
SERIES 2007-B PROJECT DESCRIPTION
Sewer Project:
The Series 2007-B Project will consists of a 24' diameter, 8,900 feel long sewer line
from the Anna wastewater treatment plant to FR 455 along the mote of Slater Creek. The
Series 2007-8 Project will eliminate an existing lift station et FIR 455 and relieve the load on an
existing 12" sewer line.
4se2soea.v10i A-1
EXHIBIT B
COMMITMENT OF THE TEXAS WATER DEVELOPMENT BOARD
aesne .211070211 B-1
A RESOLUTION OF THE TEXAS WATER DEVELOPIrfENT BOARD
APPROVING AN APPLICATION FOR FINANCIAL ASSISTANCE
THROUGH THE PURCHASE OF
$2,500,000 GREATER TEXObfA UTETCY AUTHORITY
CONTRACT REVENUE BONDS,
PROPOSED SERIES 200'1
(CITY OF ANNA)
(07-56)
WHEREAS, Greater Texoma UtilityAuthority (the "AuthoriWj, on behalf of the City of
Amu (the "City, has filed au application seeking financial assistance in the summer of
$2,500,000 Gam the Texas Water Development Funds to finance wastewater system
improvements; and
WIIEREAS, the Authority seeks financial assistance from the Texas Water Development
Board (the "Boerd'I in the amount of$2,5W,000 through the Board's purchase of $2,500;000
Custer Texoma Utility AuthorityCom mu Revenue Bonds, proposed Sores 200 (City of
Anna), all as is more specifically set forth in the application end in recommendations of the
Deputy Executive Adminishamr for the Office of Project Finance and Construction Assistance,
to which documents express reference is made; and
WHEREAS, in accmdaece with Section 17.275 of the Texas Water Code, as revised, the
Board has c rcA ly considered all matters reeuired by law and in particular the following:
1. the water quality needs of the waters into which effluent from the headrest works
wig be discharged, the benefit of the treatment works to such water quafity needs,
the relationship of the treatment works to the overall, statewide water quality
needs;and the relationship of the treatment winks to water quality plam ngf
the state;
2. the availability ofnevenue to the Authority, fium an sources, for the ultimate
repayment of the cost of the mounted works, including imterest sed
3, whether the Authority has been desig ted, pursuant to Section 26.082 of the
Texas Water Code, to provide a regional system 0 serve all or part of Ne waste
disposal needs of defined area, the development of such systema being the
declared policy of the legislature.
WHEREAS, the Board hereby finds:
1. that the public interest will benefit tom state assistance in the fivsncing of the
treatment works; and
2.. that the Authority and the City have adopted and implemented a program of water
conservation ferthe more efficient use ofwatermat will meet reasonably anticipated
local needs and conditions and that incorporates practices, techniques or tedmilogy
proscribed by the Texas Water Code and rules of the Board.
NOW, THEREFORE, based on said considerations and findings, Ne Texas Water
Development Board resolves as follows:
A commitment is made by the Board to Greater Tacoma Utility Authority for fimncial
assistance in the amount ofS2,500,000 through Ne Board's purchase ofS2,500,000
Greeter Texoma Utility Authority Contract Revenue Bonds, proposed Series 2007 (City
ofAnnaldarough the Team Water Development Funds. Tins commitment will expne
March 31, 2009.
Such commitment is conditioned as follows:
1. tint the bond coursed opinion must include an Winion mat rhe interest on the
obligations is excludable from gross income or is exempt firm Federal income
taxation. Bond counsel mayrely or covenants and representations ofthe issuain
rendering this opinion;
2. that the bond counsel opinion moat include an opinion that the obligations are not
"private activity bonds." Bond counsel may rely on covenant and represmttiou
of the issuer on rendering Nis opinion;
3. Nat the resolution authmving the issuance of the obligations must include that the
proceeds of the obligations and the facilities fimnced with the proceeds of the
obligations will rot he used in a roamer that would case Ne obligation to be
"private activitybonds' ;
4. Nat Ne resolution authorizing the issuance of the obligation must include that the
issuer will comply with Ne purvisiom of Section 148 of the Internal Rev®m
Code of 1996 (mbatirg to arbitrage);
5. Naz Ne resolution mNornmag the issuance of the obligation most include that the
boner will make any required rebate to the United Sores of arbitrage earrings;
6. Nat the resolution athorizdng Ne issuance of the obligation must include that Ne
issuer will take an action which would tomes the interest on the obligations to be
includable in gross income for Federal income tax purposes;
]. Nat Ne transcript mut include a No Arbmage Certificate or similar comficate
seting muni the issuer's reasonable expectation regarding Ne ase, expenditure
and investment of the proceeds of the obligations;
8. that the trancript must include evidence that the information reporting
requirement; of Section 149(e) of the Internal Revenue Cade of 1986 will be
satisfied, This requirement is currently satisfied by filing IRS Farm 8038 with the
Intemal Revenue Service. A completed copyof US Form 5038 m=a provided
to the Executive Administrator of the Board prior b release of funds;
9. that the Authority will not cause or permit the obligations m be treated as
"Fedvally Convinced" obligations within the maturing of section 149(6) of the
Interad Revenue Code;
10. Nat this covwitmmt is contingent on a future sale of bonds or on the availability
of fords on hand;
11. that the resolution authorizing the issuance of obligations will state that
obligations can be calf for early redemption only in inverse order of maturity,.
and on any date beginumg on or after the first intern[ payment daze which is 10
years from the dated date of the obligations, at a redemption price of par, together
with acmed interest to the date fixed for rdmption;
12. that the Authonity, or an obligated person for whom financial or operating data is
presented either ind lidudly or in combination with other issum of the
Authority§ obligations or obligated persons, will, at a narro m, covenant to
amply with requirements for continuing disclosure on an ongoing basis
substantially in the manner rationed by Securities and Exchange Commission
(SEC) rate 15c2-12 and determined a; if the Hoard were a participating
UMervoida within the meaning of each rule, such continuing disclosure
undenalring being for the benefit of the Bond and Ne beneficial owner of the
Authority's obligations, SNC Board sells or Otherwise transfm.such Obligations,
and the beneficial owners of %a Board's bonds ifthe Authority is an obligated
person with respect to such bonds under SEC note 15c2-12;
13. . that prior to closing, the Authority will submit documentation evidencing the
adolmon and implementation of sufficient systm rates and charges or, S
applicable, the levy of an interest and siNring tax rate sufficient for the repayment
of system debt service requirements;
14. that the resolution authorizing the obligations contain a provision that the
Authority will maintain rates and charges th the City sufficient to meet the debt
sermot requirements on the outstanding obligations of the Authority that we
supported by such mems«, and that the Authority will require in its contract with
the City that the City maintain rates and charges for its water and sewer system
sufficient to pay all the City s obligations secured by and made payable from the
revenues derived from the operation of its water and sewer system;
15, that upon request bythe Executive Administrator, the Authority shall submit
amual audits of the City for We Pxautive Administrator's review;
16, that the loan is approved for funding under the Board's pre -design funding option
as specified in Board rule 31 TAC §363.16, and initial and future releases offends
are subject to all rules of the Bowl relating to such funding option; and
17, that prior to Closing,Ne Authority shall submit an executed consultingengineer
contract, the form and substance of which is satisfactory to the Incentive
Administrator of Ne Bond.
PROVIDED, however, the foregoing resolution is subject to the following additional
raluvanmta prior to funding of the low:
1.issuamce of a written approving opinion of the Attorney Gmval of We State of
Texas stating Naz all of the requirements of the laws under which said obligations
were issued have been complied with; that said obligations were issued in
conformity with the Constitution and laws of Ne State of Teems; and Nat said
obligations are valid and binding obligations of the issue; and
2. compliance with all applicable regoir®mts contained in the Rules. Regulations.
suit Policies of the Texas Waver Development Bound
APPROVED and ordered ofrecmd this Ne 27N day of March 2007.
r: a• t :a�•r
ATTEST:__
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Ward
e„mtive Administrator