HomeMy WebLinkAboutOrdinance No. 16,481 (Item 6.f.)ORDINANCE NO. 16,481
AN ORDINANCE OF THE CITY OF BAYTOWN, TEXAS, AMENDING CHAPTER
98 "UTILITIES," ARTICLE VII, "IN -CITY MUNICIPAL UTILITY DISTRICTS,"
SECTION 98-703, "CONDITIONS TO CREATION," SUBSECTION 17, OF THE CODE
OF ORDINANCES, BAYTOWN, TEXAS, TO REMOVE REFERENCES TO TEXAS
COMMISSION ON ENVIRONMENTAL QUALITY APPROVAL OF, AND RECORDS
RELATED TO, BONDS OR NOTES FOR WHICH THE AGENCY HAS NOT
ADOPTED RULES REQUIRING REVIEW AND APPROVAL; PROVIDING FOR A
PENALTY NOT EXCEEDING FIVE HUNDRED AND NO1100 DOLLARS ($500.00);
PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; AND
PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That Chapter 98 "Utilities," Article VII "In -City Municipal Utility Districts," Section
98-703, "Conditions to Creation," Subsection 17 is hereby amended to read as follows:
CHAPTER 98. UTILITIES
ARTICLE VII. IN -CITY MUNICIPAL UTILITY DISTRICTS
See. 98-703. - Conditions to Creation.
(17) Unless otherwise agreed to by ordinance or resolution of the city:
a. no bonds or notes of the municipal utility district shall be issued or sold unless:
for issuances subject to review and approval by the Texas Commission on
Environmental Quality, not less than 20 days following the filing of an application
with the Texas Commission on Environmental Quality for the approval of projects
and bonds, the municipal utility district provides the city with a copy of such
application and not less than 30 days prior to publication of notice of sale, the
municipal utility district provides the city with a copy of the staff memorandum of
Texas Commission on Environmental Quality approving the projects and bonds;
not less than 30 days prior to the sale, the municipal utility district provides the
city with a copy of its proposed bond order, preliminary official statement, bid
form and notice of sale; and
the criteria in subsection (b), below, are met.
b. Unless otherwise agreed to by ordinance or resolution by the city, the municipal utility
district shall not issue bonds unless the following conditions have been satisfied:
The municipal utility district shall not issue any bonds, other than refunding bonds,
unless the purpose for which the proceeds of such bonds may be used is limited to
one or more of the following and no others:
(a) Designing, purchasing and/or constructing or otherwise acquiring:
(i) Waterworks facilities to provide water supply for municipal,
domestic, and commercial uses, excluding industrial uses;
(ii) Wastewater facilities to collect, transport, process, dispose of and
control all domestic or communal wastes, excluding industrial
waste, whether in fluid, solid or composite state;
(iii) Stormwater drainage and detention facilities to gather, conduct,
divert and control local stormwater or other local harmful excesses
of water in the municipal utility district;
(iv) Roads or improvements thereto, including storm drainage, in aid
of those roads; or
(v) Recreational facilities or improvements thereto;
(b) Purchasing, constructing, owning, operating, repairing, improving,
extending or otherwise acquiring interests in real property, improvements,
facilities, appliances, equipment, buildings, plants or structures necessary
or incidental to the operation of waterworks facilities, wastewater
facilities, or stormwater drainage facilities, roads, or recreational facilities,
including contingencies;
(c) Payment of administrative and organization expenses, operation expenses
during construction, creation costs, interest during construction,
capitalized interest and developer interest. Proceeds of the bonds for costs
of operations of the municipal utility district shall not exceed ten percent
of the issuance amount; and
(d) All costs of issuance of the bonds (including but not limited to legal fees,
financial advisory fees, administrative fees and expenses, printing
expenses, and publication expenses).
2. The municipal utility district shall not sell or issue any bonds unless:
(a) The terms of such bonds expressly provide that the municipal utility
district reserves and shall have the right to redeem the bonds not later than
the 15th anniversary of the date of issuance, without premium;
(b) The bonds, except refunding bonds, are sold after the taking of public bids
therefor;
(c) None of such bonds and bonds sold to a federal or state agency, other than
refunding bonds, is sold for less than 95 percent of par;
(d) The net effective interest rate on bonds so sold, taking into account any
discount or premium as well as the interest rate borne by such bonds, does
not exceed two percent above the highest average interest rate reported by
the Daily Bond Buyer in its weekly "20 Bond Index" during the one -month
period next preceding the date notice of the sale of such bonds is given and
bids for the bonds will be received not more than 45 days after notice of
sale of the bonds is given;
(e) The maximum term of any debt issuance shall be no greater than 25 years;
(f) The minimum par amount of any bonds issued, except a final issue, shall
be $1,000,000.00;
(g) Each issue of bonds shall be structured to achieve either level principal
payments or level debt service payments, excluding the first two years of
debt service;
(h) The municipal utility district shall submit to the city pro forma cash flows
prepared in a manner consistent with the financial feasibility rules of the
Texas Commission on Environmental Quality evidencing a municipal
utility district tax rate (both maintenance and operations rate and interest
and sinking rate combined) not to exceed $1.50 per $100.00 assessed
valuation; and
(i) Each bond issue shall not include more than two years of capitalized
interest.
C. The city staff shall review the documents required to be provided hereunder and the
evidence of compliance with the foregoing criteria within 15 days following receipt of
same. If the city staff gives a favorable approval of the bonds, an item will be placed on
the next available regular or special council meeting agenda for consideration by the city
council. The issuance of bonds by the municipal utility district must be approved by the
city council of the city, or its designee. Any costs incurred by the city in connection with
review of the issuance of bonds shall be paid by the municipal utility district, in an amount
not to exceed $2,500.00;
d. For bonds secured by a pledge of the municipal utility district's revenues from its water
and sewer and /or drainage system, the municipal utility district's resolution authorizing
the issuance of the municipal utility district's bonds must contain a provision that the pledge
of the revenues from the operation of the municipal utility district's water and sewer and/or
drainage system to the payment of the municipal utility district's bonds will terminate when
and if the city takes over the assets of the municipal utility district and assumes all of the
obligations of the municipal utility district.
Section 2: Every person convicted of a violation of any provision of this ordinance herein shall
be punished by a fine not exceeding FIVE HUNDRED AND NO/100 DOLLARS ($500.00). Each act of
violation and each day upon which any such violation shall occur shall constitute a separate offense. In
addition to the penalty prescribed above, the City may pursue other remedies such as abatement of
nuisances, injunctive relief, administrative adjudication and revocation of licenses or permits.
Section 3: All ordinances or parts of ordinances inconsistent with the terms of this ordinance
are hereby repealed; provided, however, that such repeal shall be only to the extent of such inconsistency;
and in all other respects, this ordinance shall be cumulative of other ordinances regulating and governing
the subject matter covered by this ordinance.
Section 4: If any provision, section, exception, subsection, paragraph, sentence, clause or
phrase of this ordinance or the application of same to any person or the set of circumstances shall for any
reason be held unconstitutional, void or invalid, such invalidity shall not affect the validity of the remaining
provisions of this ordinance or their application to other persons or sets of circumstances; and to this end,
all provisions of this ordinance are declared to be severable.
Section 5: This ordinance shall take effect from and after ten (10) days from its passage by the
City Council. The City Clerk is hereby directed to give notice hereof by causing the caption of this
ordinance to be published in the official newspaper of the City of Baytown at least twice within ten (10)
days after passage of this ordinance.
INTRODUCED, READ, and PASSED by the affirmative vote of the City Council of the City of
Baytown this the 28" day of May, 2026.
ARLES JO , Mayor
ANG
APPRO V
IkRiSTIN HOLMES, Assistant City Attorney
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