R-96-06-27-10B - 6/27/1996WHEREAS, the City Council (the "Council ") of the City of
RESOLUTION NO. R- 96- 06- 27 -10B
RESOLUTION DIRECTING THE PUBLICATION OF
NOTICE OF INTENTION TO ISSUE CITY OF ROUND
ROCK, TEXAS ANTICIPATION NOTES, SERIES 1996
AND OTHER MATTERS RELATED THERETO.
Round Rock, Texas (the "City ") has determined it to be in the
City's best interest to issue a series of notes to make certain
water and wastewater system improvements (the "Anticipation
Notes "); and
WHEREAS, the City finds that the payment in whole or in part
of contractual obligations incurred or to be incurred for
improvements and extensions to the City's combined water and
wastewater system including (i) treatment plant expansions, and
(ii) payment of professional services including legal, fiscal,
architectural, engineering and any costs of issuance including
funding a reserve fund (the "Improvements ") would be beneficial to
the inhabitants of the City and are needed to perform essential
City functions; and
WHEREAS, the Council has deemed it advisable to give notice
of intention to issue the Anticipation Notes in a maximum principal
amount not to exceed $11,500,000 pursuant to the provisions of
Article 717w Vernon's Annotated Texas Civil Statutes, as amended,
for the purpose of financing the Improvements; and
WHEREAS, prior to issuance of the Anticipation Notes, the
City is required under Article 2368a and Chapter 252, Local
Government Code, to publish notice of its intention to issue the
K:\ MPDOCS \RRSOLUTI \R560627B.MPD /scg
Anticipation Notes in a newspaper of general circulation in the
City; and
WHEREAS, the meeting at which this Resolution is adopted was
open to the public and public notice of the time, place add purpose
of the meeting was given, all as required by Chapter 551, Texas
Government Code, as amended.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ROUND ROCK, TEXAS:
1. Attached hereto as Exhibit "A" is a form of the Notice of
Intention to issue the Anticipation Notes, the form and substance
of which is hereby adopted and approved.
2. The City Secretary or other authorized representatives of
the City, shall cause the notice to be published in substantially
the form attached hereto, in a newspaper of general circulation in
the City, once a week for two consecutive weeks, the date of the
first publication to be at least 14 days prior to the time set for
the final passage of the ordinance authorizing issuance of the
Anticipation Notes, as shown in the notice.
3. This Resolution shall become effective immediately upon
adoption. The Mayor and City Secretary are hereby authorized and
directed to execute the certificate to which this Resolution is
attached on behalf of the City and the Mayor, City Secretary and
City Manager are further authorized to do any and all things proper
and necessary to carry out the intent of this Resolution including
approving appropriate changes to the notice.
RESOLVED this 27th day of June, 1996.
2.
ATTEST:
City Secretary
3.
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HARLES CULP ••'•, Mayor
City of Round ock, Texas
EXHIBIT "A"
CITY OF ROUND ROCK; TEXAS
NOTICE OF INTENTION TO ISSUE
ANTICIPATION NOTES, SERIES 1996,
IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO
EXCEED $11,500,000
NOTICE IS HEREBY GIVEN that it is the intention of the City Council of the City of
Round Rock, Texas, to issue Anticipation Notes of the City entitled "City of Round Rock, Texas
Anticipation Notes, Series 1996 ". The Notes will be payable from (i) the proceeds of future
water and wastewater system bonds or notes, (ii) the proceeds of the sale of a portion of the
City's wastewater system, and (iii) a subordinate lien on and pledge of the Net Revenues of the
City's Combined Water and Wastewater Utility System, all as will be further described, defined
and provided in the aforesaid Ordinance. The notes will bear interest from their date at a
maximum rate not to exceed 15% per annum, being the maximum permitted by Article 717k -2,
V.A.T.C.S., and will be scheduled to mature serially within a maximum of not to exceed 40
years from their date, and will be subject to redemption prior to maturity, and will have such
other and further characteristics as will be provided in the aforesaid Ordinance. The notes will
be authorized, issued, sold and delivered pursuant to Articles 717w and 1111 through 1118,
V.A.T.C.S., and other applicable laws, for the purpose of paying in whole or in part contractual
obligations incurred or to be incurred for the improvement and extensions to the City's combined
water and wastewater system including (i) treatment plant expansions, and (ii) payment of
professional services including legal, fiscal, architectural, engineering and any costs of issuance.
The City Council tentatively proposes to introduce an ordinance authorizing the notes at a
meeting to commence at 7 o'clock p.m. on the 25th day of July, 1996, at the City Hall, 221 E.
Main Street, Round Rock, Texas. The maximum amount of Anticipation Notes that may be
authorized for such purpose is $11,500,000.
/5/
CHARLES CULPEPPER, Mayor
City of Round Rock, Texas
DATE: June 25, 1996
SUBJECT: City Council Meeting, June 25, 1996
ITEM: 10. B. Consider a resolution directing the publication of Notice of Intention to issue
City of Round Rock, Texas Anticipation Notes, Series 1996 and other matters
related thereto.
STAFF RESOURCE PERSON: David Kautz
In the near future, the City expects to finalize the terms of an agreement between the City, the
Lower Colorado River Authority (LCRA) and the Brazos River Authority (BRA) for the providing
of wastewater treatment services.
However, in the event the agreement is delayed, the City must preserve its ability to adequately
finance the treatment plant expansion which is underway. If bond anticipation notes (BANs) are
utilized as interim, short -term financing, the City must publish a notice of intent to issue the notes
in the newspaper. This notice is required by the Attorney General because the City is pledging
water and sewer revenues to the repayment of the BANs.
This resolution authorizes publication of the notice only and does not initiate the issuance of
BANS.