HomeMy WebLinkAboutOrd 345-2007 Approving GTUA Contract Revenue Bonds, Series 2007-CORDINANCE NO. 3qs-2QQ7
AN ORDINANCE by the City Council of the City of Anna, Texas, relating to
Greater Texoma Utility Authority Contract Revenue Bonds, Belies 2007-C
(City of Anna Project)"; and approving the issuance thereof and the
facilities to be constructed or acquired by such Authority.
WHEREAS, the Greater Texoma Utility AUMority (the-AUMonty� and the CM of Anna,
Texas (Me 'Cil have previously executed and delivered an Amended! and Restated Contract
for Water Supply and Sewer Service, call as of April 17, 2006 (the'Cormill whereby the
Authority is to provide water and sewer services to the City;
WHEREAS, under Section 4.15 of the Combed, 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 para from
certain moneys that the City has contracted to pay under the provisions of the Contract;
WHEREAS, In connection with the pmposed'Greater Texoma Utility Authority Contact
Revenue Bonds, Series 2007-C (City of Anna Pmjed)' (the 'Bonds'), the Texas Water
Development Board (the "Board") has agreed, pursuant to an Application Requesting Financial
Assistance (Me'Applicabon'), to purchase Me Bonds and, therefore, it is neater necessary nor
advisable for ba Authority to prepare a Notice of Safe because, insofar as Me City is
concerned, the Application contains sufficient information to accomplish the purpose of a Notice
of Sale; and
WHEREAS, the net effective interest rate on Me Bonds will not exceed fifteen percent
(15%) per annum and R is now appropriate for Mis Council to approve the Application (in lieu of
approving a Notice of Sale with respect to the Bonds) as well as the issuance and contrary of
the Bonds and the facilities to be constructed or acquired with Me proceeds of the Bonds forihe
project described in Exhibit A (the "Seri" 20070 Project') attached to Me Resolution of Me
AUMority authoriang the Bonds (the 'Bond Resolution"}, now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS'
SECTION 1. The facilities to be censtmcted, acquired, and improved by the Authority
with the proceeds of the Bonds for the Series 2007-C Project described in Exhibit A hereto and
in Exhibit A attached to Me Bond Resolution are hereby approved. The use of the proceeds of
Me Bonds, as described in Exhibit A to Me Bond Resolution, is hereby approved. The Bond
Resolution is approved as to form and content, and Me City aduwwkdges that the payment of
principal of and interest on Me Bonds is payable, in whole or in pan, from payments to be matte
by Me City under and pursuant to the Contract The City agrees to provide the reports
described in the Bond Resolution within the times specified Mercia in compliance with the
Boards commitment. The City agrees with the obligations and conditions set forth in the
Boards Commitment 0372, 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 Me City to approve the
Bond Resolution, and Me facilities to be constructed, acquired, and Improved in full accordance
with the provisions of the Contract mentioned in Me preamble hereof. To the extent required by
Me Boom or the Office of the Attorney General M Taxes, the Authority is authorized by Mis City
Council to make changes and revisions to the Bond Resolution from Me form approved by MIs
ordinance in order to expedite the delivery of Me Bonds. It is the intentd Me Cityto authorize
45038I68111O11M
Me AUMonty to proceed with the construction, acquisition, and improvement of the facilities at
Me earliest possible date, but nothing herein shall be pens nae! as a limgation upon the right
and power of the City to approve a change in the facilities for which the Bonds are to be issued
(but net the purpose for which the Bonds are to be issued as set forth in the Bond Resolution),
the City specifically reserving the tight to modify the facilities for which the Bonds are being
issued if the ANhoity and the City agree such modification should be made.
SECTION 3. In all respects the Contract is mappruved and shall be and remain in full
force as the agreement of the parties.
SECTION 4 he findings and determinations of the City Council contained in the
preamble hereof are hereby Incorporated by reference and made a pan of this Ordinance for all
purposes as if the same were restated in full in this Section.
(remainder of page left blank intenffonelly)
069J6160ll10711060
PASSED AND APPROVED, this August 28, 2007.
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Cily of Anna, Texan
ATTEST:
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City of Anna, Texas
(City Seal) 1')n^`\J 9
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45138168.1Mm1113133 S-1
EXHIBIT A
SERIES 20074 PROJECT DESCRIPTION
Water Project: The Series 2007C Protect will consist of the construction of watemnes,
gmmM storage tank pumping plant, site piping and other water system appurtenances as
necessary, to secure the connection to and facilitate receiving surface water from a regional
water system
45938168 1110711 M A-1
EXHIBIT B
COMMITMENT OF THE TEXAS WATER DEVELOPMENT BOARD
4593816ean 0711060 B-1
ARESOI.VIION OF Td1BTIXAa WATPR DBVp.OPhffiJ'f BOARD
APPROVING AN APODUHfONPORFINANCLll.ASSbTANC6
T1IX011(BITBCPURCBASROP
ONTRApOORSATERIEIMS.MOITY AVfE 2(0(
CONiRACI REVP.N(CWODS, PROPOSP.D S1BtID5 2006
{CRYOPANNA)
WtffitBAg, Greeter Texoma Utility Authonry(the "Authority"),wbeh�lf of Ne City a(
Avve(tlw"Ltity^),ens fildanappliatiw sating Fnandel assiamnce in the amoua al'
$S;OOO,OoO from Ne Texan WaWrDevelopmmt Fundvmfinatueimpmvemmm Wthe City's
weteraY¢sem, including Ne can¢uuctiw of etww wekrwell CPeojat'�: and:
WffERF.AS, the Authority seeks finueial ssslsuace from the Texas WWIIevelopmmi
Board (the "Bosh') though the Board's pmuhase of ",",M Greztm Tenuous Utility
Authority Conoan Revenue Bode, proposed Series 2M (City of Arms), all m is mane
specifically sat forth in the WHcation and in remmmmdetiov of the Deputy Hxnative
Admirti¢herwfin the. Office afProjem Finance and Consnaetion Assistance, Wwhich -
doccaments expmss inference is made; and
WfBiRP.AS, the Pmjmt pmpascd by the AUNwi(y on behalf of the City is nm comistmt
with the Region C Waw Ram as the Soho Worm Pian; and
WIBBIFAS, the Authority Inns reyuestrA the Barad gens a waiver athe regauement that
the Project adthess nets in a marmm consistrat with the nate and regional water plan; and
Wf�RBAS, the Project is a recommmdM suautU for the NO Stale Waw Plan and is
wnsistent with the 2(K)6 Initially Papered Plans which has undergone a fall analysis aM public
lies gp+oreu; and
WfffiRFAS, in eccoNma with Swaim 17.124 of dee Tem Water Cade, a. rwhc , the
Bond has catefully cw¢idered au metwrs mgnmvclby law aM in particala the followisg:
1, the mounts of the area WhetserveAby the waw supply project, the benefit ofthe
warersupply W Dat to the ante, the celationship of thewausr supply project W the
overall, st&ewide wamrteWs, andthenlatiwship of the watmsuppty projemm
the approved regional and amW weWr plans: aro
2, the availability of menue to the AVNority, from all somas, for the ultimate
copayment of the cost of the water supply pmje , including lowest.
WfIE2P.AS, the Boatel hereby fender:
1. that it hasapproved ate®ons] water plan for the region of the state that includes
the mea benefiting fidfn the fat J Land that the needs to be addressed by the
project will rust he idmased in a manner Nat is ponastent with the approved
regiotul such soon was plans but that conditions warrant gandng a waver to the
Authority fium the tegamsuent that the Project address nerds in a mmvent
consistent with the Region C Water Plan and the State. Water Plan;
2. Nat the public interest requires state assistance in the water supply project
3. that in its option the revenue p]Wpd by the Authority"I be iuffident to mc[
A] the obggadans assumed by the politica subavis on during the succeeding
' period of not mare Nan 50 years;
6. Nat the Authority bas adopW and implemented a program of waterwnservmon
for the mNe eff 'rnt use of water Nat will coast reasonably, antitupstai loco
needs and conditions and that incarnations; intactness, techniques of mchrusi y
ivescribed by the Texts Water Castle and rules of the Bo"; and
5. that crren0y no water audit is due from the Authority under Texas Water Code'
§16.0121.
NOW, TD®tBPORB, bead on sad and Tmth'vgs, the Texas Water
Ocvelopmen[ Board resolves as follows:
1. a waiverfimn the reyoirmen[ of Texas Water Code 916.05N) is granted by the
Boesch pursuant In Texas Water( §16.053(k); -
2. ammimun[ is made by the Bound to O ter Texonm Utility Authority for
finasutia assistmee in the mrmun[ of 55,000,000 through the Board's inuchase of
55.000,000 Cmater.Texmm Utility Authority Contract Revenue Honda, pmpoaed ...
S¢ies 2U06 (City of Anna), hors the Texas WowINevelopment Fends; assal
3. this wmrmtmenr until upon on October 31, MI.
Such comNiwent is conNtloned as follows:
1. Nm the bond counsel opinion must irmlude an opinion that Ne interest on the
obligations is excludable from gins ircome or is exempt from Pehml income
taxaton. Bond counsel mayrelyon covenants aM represmmdons ofthe isauerin
rrndering this opinion;
2. that tie bond comse) opinion roue fncludem opinion 69 the obliggons m not
ofthe isater anybmtla." buss into;; way.NYmcmxnants soatepresepUtims
of the iesua mrenhrmgthia opinion:
3. that the resolution authotving the iseumce of the obligations must include that the
, proceeds of the obligations and the fordithes financed with five procrn4 of the
Miguel will not be reed in a manner that would cause the obligations m be
"pdvee ectivitybonds".
a. that the reolutim aulM1ovingthe issuance of the obligations must itmlude that the
isswur will comply with the promsiom of Section 148 of the Insured Revenue
Code of 1986(eelaing m adrinege); _ ..
S. that lM resolution authorizing the issuance of five obligation turas[include the the
ss ter win make my reyoired rebate to the Unnul Stones of arbitrage estrange;
6. 'that the resolution euthwizing the issuance of the obligations must include drat the
win nal¢ no truce which would cause the interestm the obhgaaons; m be
includable in gross income for Federal inwme to pmposss;
"I. Mat the moneaript most include a NO Arbitrage C flca¢ or simJarmtificate
setting forth the issrv's reasonable expenedous regarding the ase.expenditure
and invesurrentoftbe proceeds of the obligatioot; _
S. tbar Ne transcript must incluse evidence that dor information repotting
requuerneom of Seedm 149(e) of the Invented Revenue Code of 1985 win be
satisfied. 11ds rtgtdremenl is currently satisfied by filing Form 8038 with the
Internal Revenue Service. A completed copy, of M Form 8038 must be piwidW
on rise luauuve Adudsdwetm of the Board prim to mleaee of funds:
9. that the Authority will not cmu or permit the obligations to be treated as
'PedaanYGuarantn eed'obligedms within the meaning of section.149(b)'of tlx
boatel Revenue Code:
10. then d as commimunt is contingent m a firers sale of bonds or no the availabJity
of fonds are hand:
11. that the resolution audwrizing Ne issumwe a obligations will some that
obligatima use be called for early redemption only in inverse ondur of maturity,
and on any date beginning an or after the Ent interest payment doe which is 10
Yew's from dor dans date of the obligations, a a nuudemptlon price of par, together
with accrued interest to the date fined her redemption:
12.
that the Authority, or ad obligated person for whom Removed or operating der is.
Mounted ether individually, or in combination with other issuwe of the Authority
obligations or obligated persons, with at a mivtmwr, covenant to comply with
ralubtau nn for continuing disclosure an an arguing basis substantially in the
manner required by Seamides end Exchenge Commission (SEC) Me 15c2-12 and
downtown as if the Hoard were a Participating Underwriter within the meeting of
south rule, such continuing disclosure undea near; being for be benefit of but
Board used the beneficial owner of the Authority obligations, if be Band sells or
otherwise woad such obligations, and the beneficial owners of be Board's
certificates if the Authority is on obligated person with mVec[ to such Certificates
untlenrde l5c2-12;
13.
first be resolution autholong be obligations contain a innMew but the'
Authority will meinmin rases and charges m the Convecting Parties sufficient to
meet the debt service raldrcmenm an the outstanding obligations of the Authority -
that=supposed by such revenues, and that the Authority will te3rme to in
coney Min be ConmumogPenies that the Contracting Parties maintain rates.
-
and charges for in water system sufficient to pay ell Cootracdng Parries
obligations secured by send made peyeble from the revenues derived fromthe
operation Of in water System;
16:
that prior m closing, the Authority MR submit docbmenntian evidencing the
-
adopamtend implementation of sufficient system rates end charges or, if
apphi le, the levy of an interest and sodding tax tare surfident for be repayment
of system debt smite regw mend;
15.
that bona refund by be Executive Admidsratoq the Authority shell submit
emus) andim of Cunwcting Parries for the Executive Administrator's review;
16.
that prim m the release of funds for the costa of planning. enginwing, -
emhitecoual, legal, tide; fiscal, or monomic invrsdgation, studies, surveys, or
dsedgos fm that Portion: of a project that pmposee groundwater development,dte -.
Executive Administrator of the Board most either issue a written finding men the
Authority has the fight to use be water that the pmjem financed by the Beed will
Provide ora written demdboom that areasonable a Penation Wm that such a
finding will be made before be release of funds for communion;
17.
that prim to the relesee of wnsaunion hands nor but portion of a pmjxt that
proposes grnmdwater development. the Executive Admiriswtor must have made
a women fiinding but the Authority has the right to use the weer but the project
financed by me Based will provide; rad
I&
that the leen is appmved for funding under the Board's pre -design funding option
as specified in Board tale 31 TAC §363.16, and initial=4 tonne releases of funds
are subjmt to all rules of the Board relating to such funding option.
PROVIDE. however, the fnregcingmsolu0 n is sobjmtm the following addiBnnal
'ruluircments prior to funding of the loan:
1. issuance of a wdven approving opinion of the Attorney Geveml of the Some of
Texas stating Net all of file of the laws under which said obligations,
were issued have been complied with; that said obligations were iasuW in
conformiry with the Constimfim and laws of the State of Texas; and that sold
obligations are valid and binding obliethoueof the issms;md
2 compliance with all applicable requirements contained in the Rules. Reeulationa.
and Policies of the T Water Itevelarmiseat faint.
APPROV and oAeecd ofrecoN Ws the 18th day ofOcmber 2005.
TEXABWATHRDEVI3DPM&iTH0ARD
& O. Rod Pimnm, Cheirmm
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