Loading...
CC Resolution No. 2788 RESOLUTION NO. 2788 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION; APPROVING THE PREPARATION OF A PRELIMINARY OFFICIAL STATEMENT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** WHEREAS, the City Council of the City of Baytown, Texas (the "City"), deems it advisable to issue certificates of obligation (the "Certificates") of the City in accordance with the notice hereinafter set forth; and WHEREAS, the City desires to approve the preparation of a preliminary official statement (the "Preliminary Official Statement") in anticipation of its issuance of the Certificates; NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS: Section 1. The findings, determinations, definitions and recitations set out in the preamble to this resolution are found to be true and correct and are hereby adopted by City Council and made a part hereof for all purposes. Section 2. The City Clerk is hereby authorized and directed to cause to be published and posted in the manner required by law and in substantially the form attached hereto as Exhibit A, a notice of the City's intention to issue the Certificates (the "Notice"). Section 3. The Notice shall be published once a week for two (2) consecutive weeks in a newspaper that is 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 the Notice for the passage of the ordinance authorizing the issuance of the Certificates. In addition, the Notice shall be posted continuously on the City's website for at least forty-five (45) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the Certificates. Section 4. For purposes of section 1.150-2(d) of the Treasury Regulations, this Notice serves as the City's official declaration of intent to reimburse itself from proceeds of the Certificates in the maximum principal amount and for expenditures paid in connection with the projects, each as set forth in Exhibit A hereof. Any such reimbursement will only be made(i) for an original expenditure paid no earlier than 60 days prior to the date hereof and (ii) not later than 18 months after the later of(A)the date the original expenditure is paid or(B)the date the project to which such expenditure relates is placed in service or abandoned, but in no event more than three years after the original expenditure is paid. Section 5. For the 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. The City plans to continue to pay these public securities based on this practice; however, there is no guarantee this practice will continue in future years. DM-#8263450.4 Section 6. The Director of Finance, the City Manager, other appropriate officials of the City, the City's financial advisor, Hilltop Securities, Inc., and the City's bond counsel, Bracewell LLP, are authorized and directed to proceed with the preparation of the Preliminary Official Statement and to make other necessary arrangements for the sale of the Certificates at a future meeting of the City Council of the City. Section 7. The Mayor, City Manager, the Director of Finance, City Clerk, 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 8. This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown. [Remainder of Page Intentionally Left Blank] DM-#8263450.4 -2- INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown, Texas this 281h day of July, 2022. NDON CAP TILLO Mayor ATTEST: �OF Q,p,YTO6YN lF e % e° ANGELA CKSON, Ci k co 0�R% APPROVED TO FORM: c SCOTT LEM, ND, City Attorney R:Karen Mderson\RESOLUTIONS CITY COUNCIU2022\2022.07.28 DM-8263450A-City of Baytown-NOI Resolution(2022 CO CompNeg Param).DOCX Signature Page to Resolution No. Z7 DM-#8263450.4 EXHIBIT A NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that the City Council of the City of Baytown, Texas (the "City"), will meet at City Hall, 2401 Market Street, Baytown, Texas, 77520, at 6:30 p.m. on the 22"d day of September, 2022, which is the time and place tentatively set for the passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of the City's certificates of obligation, in the maximum aggregate principal amount not to exceed $45,000,000 payable from ad valorem taxes and from a limited pledge of a subordinate lien on the net revenues of the City's waterworks and sanitary sewer system, bearing 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 of the City at the time of issuance of the Certificates, and maturing over a period not to exceed forty (40) years from the date of issuance, for the purposes of evidencing the indebtedness of the City for all or any part of the costs associated with (i) the design,construction,and equipment of streets,sidewalks,and related infrastructure,(ii)the design, construction, and equipment of storm water drainage facilities and improvements, (iii) the design, construction, renovation, and equipment of firefighting facilities and the purchase of related land and/or rights-of-way located in the vicinity of the 2200 block of Market Street, (iv) the design, construction, renovation, and equipment of public safety facilities; (v) the design, construction, renovation, and equipment of parks and recreational facilities, (vi) the design, construction, renovation, and equipment of improvements to existing municipal buildings and facilities, including (a) buildings and facilities for municipal courts, public works, facilities maintenance, mosquito control,and environmental health and community services,(b)the Arts League Building, and (c) Sterling Library, and (vii) the cost of professional services incurred in connection therewith. The estimated combined principal and interest required to pay the Certificates on time and in full is approximately$64,715,600. Such estimate is provided for illustrative purposes only, and is based on an assumed interest rate of 4.00°o. Market conditions affecting interest rates vary based on a number of factors beyond the control of the City, and the City cannot and does not guarantee a particular interest rate associated with the Certificates. As of the date of this notice, the aggregate principal amount outstanding of tax-supported debt obligations of the City (excluding public securities secured by an ad valorem tax but designated by the City as self- supporting in Resolution No. VI , dated July 28,2022, which resolution is available from the City upon request) is $96,663,803, 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 (excluding public securities secured by an ad valorem tax but designated by the City as self-supporting) on time and in full is $114,495,210. WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY,this 28`h day of July, 2022. \�o�gp,YTOWN l •° °°F Angela Jackson City Clerk ° City of Baytown, Texas Gj 06 OF DM-#8263450.4 EXHIBIT B SELF-SUPPORTING DEBT Total Principal Amount Designated as Self-Supporting: $85,615,331 The total principal amount of self-supporting debt is comprised of some or all of the debt from the following series of obligations: Series Designation Combination Tax and Revenue Certificates of Obligation, Series 2014 General Obligation and Refunding Bonds, Series 2014 General Obligation and Refunding Bonds, Series 2015 General Obligation Refunding Bonds, Series 2016 Combination Tax and Revenue Certificates of Obligation, Series 2016 Combination Tax and Revenue Certificates of Obligation, Series 2019 General Obligation Refunding Bonds, Series 2019A Combination Tax and Revenue Certificates of Obligation, Series 2020 General Obligation Refunding Bonds, Series 2020 General Obligation Refunding Bonds, Series 2021A DM-#8263450.4 -2- CERTIFICATE FOR RESOLUTION THE STATE OF TEXAS § COUNTIES OF HARRIS AND CHAMBERS § I,the undersigned officer of the City Council of the City of Baytown,Texas, hereby certify as follows: 1. The City Council of the City of Baytown,Texas, convened in a regular meeting on the 28`h day of July, 2022, at the regular meeting place thereof, within said City, and the roll was called of the duly constituted officers and members of said City Council, to wit: Brandon Capetillo Mayor Laura Alvarado Council Member, District 1 Chris Presley Council Member, District 2 Charles R. Johnson Council Member, District 3 Heather Betancourth Council Member, District 4 Jacob Powell Council Member, District 5 Mike Lester Council Member, District 6 and all of said persons were present,except the following absentee(s): N , thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written RESOLUTION NO. L12, S A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS. AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION; APPROVING THE PREPARATION OF A PRELIMINARY OFFICIAL STATEMENT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. was duly introduced for the consideration of said City Council and read in full. It was then duly moved and seconded that said resolution be adopted; and, after due discussion, said motion, carrying with it the adoption of said resolution,prevailed and carried by the following vote: Member(s)of City Council shown present above voted "Aye". Member(s)of City Council shown present above voted "No". Member(s)of City Council shown present abstained from voting. 2. A true, full and correct copy of the aforesaid resolution adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate;that said resolution has been duly recorded in said City Council's minutes of said meeting; that the above and foregoing paragraph is a true, full and correct excerpt from said City Council's minutes of said meeting pertaining to the adoption of said resolution; that the persons named in the above and DM-#8263450.4 foregoing paragraph are the duly chosen, qualified and acting officers and members of said City Council as indicated therein; that each of the officers and members of said City Council was duly and sufficiently notified officially and personally, in advance, of the date,hour,place and purpose of the aforesaid meeting, and that said resolution would be introduced and considered for adoption at said meeting, and each of said officers and members consented, in advance, to the holding of said meeting for such purpose; that said meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of said meeting was given as required by Chapter 551, Texas Government Code. SIGNED AND SEALED this 28`"day of July, 2022. J o��p,YTOWN l City Clerk eeeepeaeseeeeeee e� �e e' City of Baytown, Texas t eN 1. e tP e e e v] ee ee 31 •� . � Deeee>• eqe �OF � -2- DM-#8263450.4