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.
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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.
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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]
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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
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ANGELA CKSON, Ci k co
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APPROVED TO FORM:
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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
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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
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City of Baytown, Texas
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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
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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
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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.
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