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HomeMy WebLinkAboutR-2021-52 Publication of Notice of Intent to Issue Certificates of ObligationRESOLUTION NO.2021-52 RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENT TO ISSUE CERTIFICATES OF OBLIGATION STATE OF TEXAS § COUNTY OF HARRIS § CITY OF LA PORTE § WHEREAS, the City Council (the "City Council") of the City of La Porte, Texas (the "City") has determined that it is in the best interests of the City to issue certificates of obligation in a principal amount not to exceed $13,500,000 (the "Certificates") pursuant Subchapter C of Chapter 271, Texas Local Government Code, in accordance with the notice hereinafter set forth; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. The facts and recitations contained in the preamble of this Resolution are hereby found and declared to be true and correct. Section 2. The City Secretary is hereby authorized and directed to prepare and cause to be published a notice of intent to issue the Certificates in substantially the form attached hereto as Exhibit A (the " Notice"). The Notice shall be published once a week for two (2) consecutive weeks in a newspaper of general circulation in the City, the date of the first publication to be at least forty-six (46) days before the date tentatively set in said Notice for the passage of the ordinance authorizing the issuance of such certificates of obligation. In addition, the Notice shall be posted continuously on the City's interact website for at least forty-five (45) days before the date tentatively set for the passage of the order or ordinance authorizing the issuance of the Certificates. Section 3. For purposes of the Notice, the City hereby designates as self-supporting those public securities listed in the attached Exhibit B, the debt service on which the City currently pays from sources other than ad valorem tax collections. Section 4. The City hereby authorizes the preparation and distribution of a Preliminary Official Statement relating to the Certificates, and authorizes the Director of Finance or City Manager to approve the final form of and deem final such Preliminary Official statement within the meaning and for the purposes of paragraph (b)(1) of Rule 15c2-12 of the United States Securities and Exchange Commission. Section 5. The Mayor, City Secretary, City Manager, Director of Finance 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 6. This Resolution shall take effect immediately upon its passage W611iY MUNI PASSED AND APPROVED the 24th day of May, 2021 ATTEST: CITY OF LA PWKEI.TEXAS 1 Mayo 92 S-1 HOU:3738151.1 EXHIBIT A NOTICE OF INTENT TO ISSUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that the City Council of the City of La Porte, Texas (the "City") will meet at its regular meeting place at City Council Chambers, City Hall, 604 West Fairmont Parkway, La Porte, Texas at 6:00 p.m. on July 12, 2021, which is the time and place tentatively set for the passage of an ordinance authorizing the issuance of the City's certificates of obligation (the "Certificates") in a principal amount not to exceed $13,500,000 to pay all or any part of contractual obligations to be incurred for the construction of public works and the purchase of materials, supplies, equipment, machinery, buildings, land and rights -of -way for authorized needs and purposes, to wit: (i) planning, acquisition, design, construction and equipment of a new City Hall, (ii) renovation, improvement and equipment of existing City buildings, (iii) construction, improvement, extension, upgrade and development of City streets, including drainage, streetscaping, signalization and other traffic controls, sidewalks, street lights and the acquisition of any right-of-way, (iv) drainage improvements, (v) construction, renovation, improvement, and equipment of the City's water and sewer system, (vi) purchase of land for and construction, renovation, improvement, and equipment of the City's Bay Forest Golf Course and related facilities, and (vii) the cost of professional services rendered in connection the above listed projects. The Certificates shall bear 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 shall mature over a period of years not to exceed thirty (30) years from their date. The Certificates shall be payable from ad valorem taxes and a limited pledge of surplus net revenues of the City's water and sewer system. It is estimated that the combined principal and interest required to pay the Certificates is $18,995,348. Such estimate is provided for illustrative purposes only, and is based on an assumed interest rate of 3.00%. Such amounts are derived from projections obtained from the City's financial advisor based upon current market conditions, and are provided by the City without assurance that such projections will be realized. The City cannot guarantee that such conditions will continue through the date of the sale of the Certificates. As of the date of this notice, the aggregate principal amount outstanding of tax -supported debt obligations of the City is $21,041,001, 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 on time and in full is $23,791,967 (in each case excluding public securities secured by an ad valorem tax but designated by the City as self-supporting pursuant to a resolution adopted by the City Council on May 24, 2021, which resolution is available from the City upon request). CITY OF LA PORTE, TEXAS A-1 HOU:3738151.1 EXHIBIT B SELF-SUPPORTING DEBT Outstanding Percentage Principal Amount Designated as Designated as Self Series Designation Self -Supporting Supporting General Obligation Refunding Bonds, Series 2012 49.82% $2,857,177 General Obligation Refunding Bonds, Series 2014 54.78% $1,911,822 General Obligation Refunding Bonds, Series 2016 100% $2,465,000 Total Principal Amount Designated as Self - Supporting B-1 nOU:3738151.1 $7,233,999