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CC Resolution No. 2888 RESOLUTION NO. 2888 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 ONE OR MORE PRELIMINARY OFFICIAL STATEMENTS; 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 issuance of the Certificates for projects that may be treated as self- supporting from revenue sources other than ad valorem taxes may be financially beneficial to the City; and WHEREAS, the City desires to approve the preparation of one or more preliminary official statements (the "Preliminary Official Statements") and one or more notices of sale (the "Notices of Sale"), if any, 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 date 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. Section 6. The Mayor,the Director of Finance,the City Manager and 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 one or more Preliminary Official Statements and Notices of Sale, if any, relating to the sale of the Certificates and to make other necessary arrangements for the sale of the Certificates at a future meeting the City Council of the City. Section 7. The City hereby authorizes the City Manager or the Director of Finance to approve the final form of and deem final any such Preliminary Official Statements within the meaning and for the purposes of paragraph (b)(1) of Rule 15c2-12 of the United States Securities and Exchange Commission. Section 8. The Mayor, the City Manager, the Director of Finance, the 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 9. 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] -2- IM-#10272700.6 INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown, Texas this 22"d day of February, 2024. NDON CAPETI O, MJyor ATTEST: (1kir—, ANGELA JA KSON, City Clerk o�$NYTO W,,V� �� A, •' °e [�S 0 s • 'C2 o °•°° ° �. °-0.. y�r V[- APPROVED AS FORM: SCOTT LE D, City Attorney Signature Page to Resolution No. , I M-#10272700.6 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 25°i day of April, 2024, which is the time and place tentatively set for the passage one or more ordinances and such other action as may be deemed necessary to authorize the issuance, from time to time, of one or more series of the City's certificates of obligation (the "Certificates") in a maximum aggregate principal amount not to exceed $60,000,000 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, improvement and equipment of drainage and detention facilities, (ii) the design, construction, improvement and equipment of the City's waterworks and sanitary sewer system, including lift station improvements, wastewater treatment plant improvements, water meter replacements, and water and sewer line replacements and rehabilitation, (iii) the design, construction, improvement and equipment of City streets, sidewalks, and related infrastructure, (iv) the design, construction, renovation and equipment of improvements to existing City buildings and facilities housing governmental functions of the City, and(v)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$87,746,256. Such estimate is provided for illustrative purposes only and is based on an assumed interest rate of 3.760%. 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. , dated February 22, 2024, which resolution is available from the City upon request) is $91,600,992, 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 $119,216,819. WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this 22°d day of February, 2024. Angela Jackson City Clerk City of Baytown, Texas A-1 EXHIBIT B SELF-SUPPORTING DEBT Total Principal Amount Designated as Self-Supporting: $72,489,008 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 $ 6,935,000 General Obligation and Refunding Bonds, Series 2014 $ 2,024,826 General Obligation and Refunding Bonds, Series 2015 $ 5,900,182 General Obligation Refunding Bonds, Series 2016 $10,019,000 Combination Tax and Revenue Certificates of Obligation, Series 2016 $12,035,000 Combination Tax and Revenue Certificates of Obligation, Series 2019 $15,205,000 General Obligation Refunding Bonds, Series 2019 $ 2,120,000 General Obligation Refimding Bonds, Series 2019A $ 885,000 Combination Tax and Revenue Certificates of Obligation, Series 2020 $ 5,225,000 General Obligation Refunding Bonds, Series 2020 $ 4,665,000 General Obligation Refunding Bonds, Series 2021 A $ 7,475,000 B-1 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 22"d day of February, 2024, 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 I Sarah Graham Council Member, District 2 Ken Griffith Council Member, District 3 James Franco 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): thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written RESOLUTION NO. 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 ONE OR MORE PRELIMINARY OFFICIAL STATEMENTS; 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". Members) of City Council shown present abstained from voting. 2. A true, Rill 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, frill 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 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 22"`' day of February, 2024. City Clerk [SEAL] City of Baytown, Texas FY24 Proposed Debt Issuance General • CIPF Environmental Health Dept(Building 3) 3,000,000 Facility ADA Compliance 200,000 Facility Improvements FY24 2,000,000 Garth Road Reconstruction from IH-10 to SH 146 4,100,000 Market Street Revitalization 3,500,000 Sidewalk Master Plan Implementation 200,000 Annual Renewal of Asphalt Streets 2,000,000 General Fund CIPF Total $ 15,000,000 Stormwater Utility Danubina Area Drainage System Improvements 7,190,787 West Baytown Drainage Improvements 5,000,000 West Texas Avenue Improvements 785,643 South Main & Republic Drainage Improvements 3,834,163 Stormwater Utilty Total $ 16,810,593 San Jacinto Regional Detention 7,500,000 TIRZ#1 Total $ 7,500,000 Water & Sewer CIPF IH-10 Lift Station#1 Improvements 2,000,000 Abbe Addition Lift Station 1,100,000 Trunkline Sewer Evaluation and Rehabilitation 1,500,000 EDWWTP Phase 1 Rehabilitation 3,500,000 ARP-WWTP & LS SCADA Install and Upgrades 4,000,000 ARP-WDWWTP Op. Building Upgrades 3,500,000 ARP-CDWWTP Equipment and Operations Efficiency Improvements Project 1,000,000 Transite Pipe Water Line Replacement Program -Bayway 700,000 Water Meter Replacement Program 2,100,000 Lead Service Line Replacement 350,000 COB Critical Facility Generators 120,855 Water&Sewer CIPF $ 19,870,855 Grand Total $ 59,181,448