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Home My WebLink AboutRES 21-189RESOLUTION NO. 21-189 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, AUTHORIZING THE PUBLICATION OF THE NOTICE OF INTENTION TO ISSUE CITY OF BEAUMONT, TEXAS CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $33,000,000 FOR THE CONSTRUCTION OF PUBLIC WORKS AND ANY ITEMS RELATED THERETO AND FOR THE PAYMENT OF CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES, AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES, AND CONTAINING OTHER PROVISIONS RELATING THERETO. WHEREAS, the City Council (the "City Council") of the City of Beaumont, Texas (the "City"), is authorized to issue certificates of obligation to pay contractual obligations to be incurred for the construction of public works and machinery, any items related thereto, and for the payment of contractual obligations for professional services pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended; and, WHEREAS, the City Council has determined that it is in the best interest of the City and otherwise desirable to issue certificates of obligation in a principal amount not to exceed $33,000,000 (the "Certificates of Obligation") for the purpose of (1) the construction of public works, more specifically, the construction and improvement of roads and the drainage system, and any items related thereto, and (2) payment of professional services incurred in connection with item (1); and, WHEREAS, pursuant to Section 271.049 of the Texas Local Government Code, prior to the issuance of the Certificates of Obligation, the City is required to publish notice of its intention to issue the Certificates of Obligation (the "Notice") in a newspaper of general circulation in the City stating (i) the time and place the City Council tentatively proposes to pass the ordinance authorizing the issuance of the Certificates of Obligation, (ii) the maximum amount of Certificates of Obligation proposed to be issued, (iii) the purpose for which the Certificates of Obligation are to be issued, (iv) the manner in which the Council proposes to pay for the Certificates of Obligation; (v) the following: (A) the then -current principal of all outstanding debt obligations of the issuer; (B) the then -current combined principal and interest required to pay all outstanding debt obligations of the issuer on time and in full, which may be based on the issuer's expectations relative to the interest due on any variable rate debt obligations, (C) the maximum principal amount of the certificates to be authorized, and (D) the estimated combined principal and interest required to pay the certificates to be authorized on time and in full; (vi) the estimated interest rate for the certificates to be authorized of that the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and (vii) the maximum maturity date of the certificates to be authorized, and, WHEREAS, for purposes of providing for the sale of the Certificates of Obligation, the City Council intends to authorize the preparation of a Preliminary Official Statement (the 'Preliminary Official Statement') to be used in the public offering of the Certificates of Obligation, and, WHEREAS, the City Council has been presented with and has examined the proposed form of the Notice and finds that the form and substance thereof are satisfactory, and that the recitals and findings contained therein are true, correct and complete; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted, and, 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. Attached hereto and marked "Exhibit A" is a copy of the Notice, the form and substance of which are hereby adopted and approved. Section 3. The Mayor or the City Clerk shall cause the Notice to be published, in substantially the form attached hereto, (i) in a newspaper, as described in Section 2051.044, Texas Government Code, of general circulation in the City for two consecutive weeks with the date of first publication to be before the 45th day before the date tentatively set for the passage of the ordinance authorizing the issuance of the Certificates of Obligation; and (ii) continuously on the City's website for at least 45 days before the date tentatively set for the passage of the ordinance authorizing the issuance of the Certificates of Obligation. Section 4. The City Council hereby approves the preparation and distribution by the City's financial advisor to prospective purchasers of the Certificates of Obligation of the Preliminary Official Statement, as the same may be completed, modified, or supplemented with the approval of the Mayor or other authorized officers and agents of the City. Section 5. The Mayor, 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 6. The following is a list of the outstanding general obligation debt of the City: Bond issue Self -Supporting Amount General Obligation Refunding Bonds, Series 2020A $25,855,000 General Obligation 2020B Refunding Bonds, Taxable Series 80,435,000 Combination Series 2018 Tax & Revenue Certificates of Obligation, 7,890,000 General Obligation _ Refunding Bonds, Series 2016 35,835,000 General Obligation Refunding Bonds, Series 2015 30,160,000 Combination Series 2013 Tax & Revenue Certificates of Obligation, 10,000 Combination Series 2012 Tax & Revenue Certificates of Obligation, 655,000 Total $180,840,000 The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 10th day of August, 2021 ATTEST: 66z"W'- Mayor Robin Mouton - APPROVED AS TO FORM: Tina Brossard, City Clerk Tyrkje Co ity Attorney EXHIBIT A NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that the City Council of the City of Beaumont, Texas (the "City") will meet at its regular meeting place in the City Council Chamber at City Hall, 801 Main St., Beaumont, Texas at 1:30 p.m. on the 28th day of September, 2021, 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, payable from ad valorem taxation and a limited (in an amount not to exceed $10,000) subordinate pledge of certain revenues of the waterworks and sewer system of the City, in the maximum aggregate principal amount not to exceed $33,000,000 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 at the time of issuance and maturing over a period of years not to exceed forty (40) years from the date thereof, for the purpose of evidencing the indebtedness of the City to pay all or any part of the contractual obligations to be incurred for the purpose of (1) the construction of public works, more specifically, the construction and improvement of roads and the drainage system, and any items related thereto, and (2) payment of professional services incurred in connection with item (1). The City proposes to provide for the payment of such certificates of obligation from the levy and collection of ad valorem taxes in the City as provided by law and from a pledge of limited surplus revenues of the City's waterworks and sewer system, remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve, and other requirements in connection with all of the City's revenue bonds or other obligations (now or hereafter outstanding), which are payable from all or any part of the net revenues of the City's waterworks and sewer system. The certificates of obligation are to be issued, and this notice is given, under and pursuant to the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended ("Chapter 271"). Pursuant to Chapter 271, notice is further given of the following information: Current principal of all outstanding debt $180,840,000 obligations of the issuer Current combined principal and interest $235,816,193 required to pay all outstanding debt obligations of the issuer on time and in full, which may be based on the issuer's expectations relative to the interest due on any variable rate debt obligations Maximum principal amount of the certificates $33,000,000 to be authorized Estimated combined principal and interest 41,905,161 required to pay the certificates to be authorized on time and in full EXHIBIT "A" Estimated interest rate for the certificates to 3.00% be authorized of that the maximum interest rate for the certificates may not exceed the maximum legal interest rate Maximum maturity date of the certificates to 3/1/2042 be authorized The resolution designating certain outstanding debt obligations of the City as self- supporting for purposes of Chapter 271 is available upon request to the City at the address noted above. WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this 10th day of August, 2021. 4, Tina Broussard, City Clerk City of Beaumont, Texas