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HomeMy WebLinkAboutOrd 2002-05 Bond Issue.pdfORDINANCE NO. 2002-05 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 the facilities to be constructed, acquired, and improved by such Authority. WHEREAS, the Greater Texoma Utility Authority (the "Authority') and the City of Anna, Texas (the "City'), have previously executed and delivered a Contract for Water Supply and Sewer Service (the "Contract") 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; WHEREAS, in connection with the proposed "Greater Texoma Utility Authority Contract Revenue Bonds, Series 2002" (City of Anna Project) (the "Bonds"), the Texas Agricultural Finance Authority (the "Finance Authority") 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 sufficient 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, acquired, and improved with the proceeds of the Bonds for the Project described in Exhibit A attached to 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 facilities to be constructed, acquired, and improved by the Authority with the proceeds of the Bonds for the Project described in Exhibit A attached to the Bond Resolution are hereby approved. The use of the proceeds of the Bonds, as described in Exhibit A attached 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 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, in compliance with the Finance Authority's commitment. The City agrees with the obligations and conditions set forth in the Finance Authority's Commitment to purchase the Bonds. 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 the Finance Authority 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 the Authority to proceed with the construction, acquisition, and improvement of 45158043.1\10202579 the facilities at the earliest possible date, but nothing herein shall be construed as a limitation upon the right and power of the City to approve a change in the 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 Bond 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. The Contract is amended to include the definition of Project attached hereto as Exhibit A. A copy of Exhibit A shall be attached to the Contract, as Exhibit C. In all other respects the Contract is reapproved and shall be and remain in full force as the agreement of the parties. 45158043.1\10202579 2 PASSED AND APPROVED, this the �L ICY 1 (��Q Mayor City of Anna, Texas ATTEST: Ovu t City ecretary City of Anna, Texas (Seal) 45158043.1\10202579 S_1 EXHIBIT A PROJECT DESCRIPTION Proceeds of the bond issue will be used to finance construction of a new wastewater treatment plant on the site of the existing plant, including a new sewage lift station, extended aeration activated sludge treatment, chlorination wedge wire sludge dewatering beds, and an emergency generator. 45158043.1\10202579 A-1 EXHIBIT B COMMITMENT OF TEXAS AGRICULTURAL FINANCE AUTHORITY 45158043.1\10202579 B_2