19-R-61 - Publication of notice of intention to issue certificates of oblgationRESOLUTION NO. 19 -R -61
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING AND APPROVING PUBLICATION OF NOTICE
OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION;
COMPLYING WITH THE REQUIREMENTS CONTAINED IN
SECURITIES AND EXCHANGE COMMISSION RULE 15c2 -12; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council (the City Council) of the City of Schertz, Texas (the City)
has determined that it is advisable and necessary to issue and sell one or more series of certificates
of obligation (the Certificates) in an amount not to exceed $7,925,000 as provided pursuant to the
provisions of the Certificate of Obligation Act of 1971, as amended, Texas Local Government
Code, Section 271.041 through Section 271.064, for the purpose of paying contractual obligations
of the City to be incurred for making permanent public improvements and for other public
purposes, to -wit: (1) constructing street improvements (including utilities repair, replacement, and
relocation), curbs, gutters, and sidewalk improvements, including drainage incidental thereto;
(2) designing, constructing, acquiring, purchasing, renovating, equipping, enlarging, and
improving the City's utility system; (3) acquiring and equipping a new fire truck, (4) the purchase
of materials, supplies, equipment, machinery, landscaping, land, and rights -of -way for authorized
needs and purposes relating to the aforementioned capital improvements; and (5) the payment of
professional services related to the design, construction, project management, and financing of the
aforementioned projects; and
WHEREAS, prior to the offering, sale, and issuance of the Certificates, the appropriate
officials of the City must review and approve the distribution of a "deemed final" preliminary
official statement (the Official Statement) in order to comply with the requirements contained in
17 C.F.R. §240.15c2 -12 (the Securities and Exchange Commission Rule); and
WHEREAS, based upon their review of the Official Statement, the appropriate officials of
the City must find to the best of their knowledge and belief, after reasonable investigation, that the
representations of facts pertaining to the City contained in the Official Statement are true and
correct and that, except as disclosed in the Official Statement, there are no facts pertaining to the
City that would adversely affect the issuance of the Certificates or the City's ability to pay the debt
service requirements on the Certificates when due; and
WHEREAS, the City Council will comply with the requirements contained in the
Securities and Exchange Commission Rule concerning the creation of a contractual obligation
between the City and the proposed purchaser(s) of the Certificates (the Purchasers) to provide the
Purchasers with an Official Statement in a time and manner that will enable the Purchasers to
comply with the distribution requirements and continuing disclosure requirements contained in the
Securities and Exchange Commission Rule; and
WHEREAS, the City Council authorizes the Mayor, City Manager, City Secretary, and the
City Attorney, as appropriate, or their designees, to review, approve, and execute any document
74398589.3
or certificate in order to allow the City to comply with the requirements contained in the Securities
and Exchange Commission Rule; and
WHEREAS, prior to the issuance of the Certificates, the City Council is required to publish
notice of its intention to issue the Certificates in a newspaper of general circulation in the City,
such notice stating (i) the time and place the City Council tentatively proposes to pass the ordinance
authorizing the issuance of the Certificates, (ii) the maximum amount proposed to be issued,
(iii) the purposes for which the Certificates are to be issued, (iv) and the manner in which the City
Council proposes to pay the Certificates; and
WHEREAS, the City Council hereby finds and determines that such documents pertaining
to the sale of the Certificates should be approved, and the City should proceed with the giving of
notice of intention to issue the Certificates in the time, form, and manner provided by law; and
WHEREAS, the City Council hereby finds and determines that the adoption of this
Resolution is in the best interests of the residents of the City; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF TIIE CITY OF SCHERTZ, TEXAS
THAT:
SECTION 1. The City Secretary is hereby authorized and directed to cause notice to be
published of the City Council's intention to issue the Certificates in an amount not to exceed
$7,925,000 for the purpose of paying contractual obligations of the City to be incurred for snaking
permanent public improvements and for other public purposes, to -wit: (1) constructing street
improvements (including utilities repair, replacement, and relocation), curbs, gutters, and sidewalk
improvements, including drainage incidental thereto; (2) designing, constructing, acquiring,
purchasing, renovating, equipping, enlarging, and improving the City's utility system;
(3) acquiring and equipping a new fire truck, (4) the purchase of materials, supplies, equipment,
machinery, landscaping, land, and rights -of -way for authorized needs and purposes relating to the
aforementioned capital improvements; and (5) the payment of professional services related to the
design, construction, project management, and financing of the aforementioned capital
improvements. The Certificates will be payable from the levy of an annual ad valorem tax, within
the limitations prescribed by law, upon all taxable property within the City and additionally from
a pledge of and lien on certain revenues derived from the operation of the City's utility system.
The notice hereby approved and authorized to be published shall read substantially in the form and
content of Exhibit A attached hereto, which notice is incorporated herein by reference as a part of
this Resolution for all purposes.
SECTION 2. The City Secretary shall cause the notice described in Section 1 to be
published in a newspaper of general circulation in the City, once a week for two consecutive weeks,
the date of the first publication shall be at least thirty (30) days prior to the date stated therein for
passage of the ordinance authorizing the issuance of the Certificates.
SECTION 3. The Mayor, City Manager, City Secretary, and the City Attorney, as
appropriate, or their designees, are authorized to review and approve the Official Statement
pertaining to the offering, sale, and issuance of the Certificates and to execute any document or
74398589.3 -2-
certificate in order to comply with the requirements contained in the Securities and Exchange
Commission Rule.
SECTION 4. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
SECTION 5. All ordinances and resolutions, or parts thereof, which are in conflict or
inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict,
and the provisions of this Resolution shall be and remain controlling as to the matters resolved
herein.
SECTION 6. This Resolution shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
SECTION 7. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City Council
hereby declares that this Resolution would have been enacted without such invalid provision.
SECTION 8. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, as amended, Texas Government Code.
SECTION 9. This Resolution shall be in force and effect from and after the date of its
adoption, and it is so resolved.
[The remainder of this page intentionally left blank]
74398589.3 -3-
PASSED AND APPROVED, this the 14th day of May, 2019.
CITY OF SCHERTZ, TEXAS
ATTEST:
City Secretary
(CITY SEAL)
74398589.3 -4-
Exhibit A
NOTICE OF INTENTION TO ISSUE
CITY OF SCHERTZ, TEXAS
CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that the City Council of the City of Schertz, Texas will
convene at its regular meeting place in the City Hall in Schertz, Texas, at 6:00 o'clock P.M.,
Schertz, Texas time on July 23, 2019, and, during such meeting, the City Council will consider the
passage of an ordinance or ordinances and take such other actions as may be deemed necessary to
authorize the issuance of one or more series of certificates of obligation in an aggregate principal
amount not to exceed $7,925,000 for the purpose or purposes of paying contractual obligations of
the City to be incurred for making permanent public improvements and for other public purposes,
to -wit: (1) constructing street improvements (including utilities repair, replacement, and
relocation), curbs, gutters, and sidewalk improvements, including drainage incidental thereto;
(2) designing, constructing, acquiring, purchasing, renovating, equipping, enlarging, and
improving the City's utility system; (3) acquiring and equipping a new fire truck, (4) the purchase
of materials, supplies, equipment, machinery, landscaping, land, and rights -of -way for authorized
needs and purposes relating to the aforementioned capital improvements; and (5) the payment of
professional services related to the design, construction, project management, and financing of the
aforementioned projects. The certificates of obligation (the Certificates) will be payable from the
levy of an annual ad valorem tax, within the limitations prescribed by law, upon all taxable
property within the City and from a lien on and pledge of certain revenues derived by the City
from the operation of the City's utility system. The Certificates are to be issued, and this notice is
given, under and pursuant to the provisions of the Certificate of Obligation Act of 1971, as
amended, Texas Local Government Code Section 271.041 through Section 271.064, Chapter 1502,
as amended, Texas Government Code, and the City's Home Rule Charter.
/s/ Brenda Dennis
City Secretary,
City of Schertz, Texas
74398589.3 A -1