2003R01- CERTIFICATES OF OBLIGATION
RESOLUTION NO. 03-R-Ol
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 $3,500,000 as provided
pursuant to the provisions of the Certificate of Obligation Act of 1971, as amended, Texas Local
Government Code, Section 271.041 through 271.063, 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: (I) constructing street and sidewalk improvements (including utilities
repair, replacement, and relocation) and drainage incidental thereto, (2) constructing drainage
improvements, (3) constructing a fire station, (4) constructing improvements to the municipal
swimming pool, (5) constructing improvements to the City's library system; (6) the purchase of
vehicles, materials, supplies, equipment, books, land, and rights-of-way for authorized needs and
purposes relating to the fire station, public safety, public works, library, and general municipal
purposes, and (7) the payment of professional services related to the construction 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 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 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 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
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document or certificate in order to allow the City to comply with the requirements contained in
the Securities and Exchange 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;
WHEREAS, the City Council hereby finds and determines that the adoption of this
Resolution is in the best interests of the citizens ofthe City; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE 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
$3,500,000 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: (I) constructing
street and sidewalk improvements (including utilities repair, replacement, and relocation) and
drainage incidental thereto, (2) constructing drainage improvements, (3) constructing a fire
station, (4) constructing improvements to the municipal swimming pool, (5) constructing
improvements to the City's library system; (6) the purchase of vehicles, materials, supplies,
equipment, books, land, and rights-of-way for authorized needs and purposes relating to the fire
station, public safety, public works, library, and general municipal purposes, and (7) the payment
of professional services related to the construction and financing of the aforementioned projects.
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 fifteen (15) days prior to the date stated
therein for passage ofthe resolution 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
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certificate in order to comply with the requirements contained in the Securities and Exchange
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.
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PASSED AND APPROVED, this the 21st day of January, 2003.
J
CITY OF S HERTZ, TEXAS
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ATTEST:
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City ecretary
(CITY SEAL)
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45267712.2
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 7:00 o'clock P.M.,
Schertz, Texas time on March 4,2003, 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 $3,500,000 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 and sidewalk improvements
(including utilities repair, replacement, and relocation) and drainage incidental thereto,
(2) constructing drainage improvements, (3) constructing a fire station, (4) constructing
improvements to the municipal swimming pool, (5) constructing improvements to the City's
library system; (6) the purchase of vehicles, materials, supplies, equipment, books, land, and
rights-of-way for authorized needs and purposes relating to the fire station, public safety, public
works, library, and general municipal purposes, and (7) the payment of professional services
related to the construction 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 271.063, Chapter 1502, as amended, Texas Government
Code, and the City's Home Rule Charter.
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City Secretary
City of Schertz, Texas
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