HomeMy WebLinkAboutRes 2020-08 Calling for the Defeasance and Redemption of Certain Outstanding BondsCity of West University Place
Harris County, Texas
RESOLUTION NO. 2020-08
A RESOLUTION CALLING FOR THE DEFEASANCE AND REDEMPTION
OF CERTAIN OUTSTANDING BONDS OF THE CITY OF WEST
UNIVERSITY PLACE, TEXAS; DIRECTING THE REDEMPTION OF SUCH
BONDS; AND CONTAINING OTHER MATTERS RELATED THERETO
THE STATE OF TEXAS §
COUNTY OF HARRIS §
CITY OF WEST UNIVERSITY PLACE, TEXAS §
WHEREAS, the City of West University Place, Texas (the "City"), acting through its City
Council, has previously adopted an ordinance on July 10, 2017 (the "Bond Ordinance") authorizing
the issuance of general obligation refunding bonds designated as "City of West University Place,
Texas General Obligation Refunding Bonds, Series 2017," dated September 7, 2017, in the original
principal amount of $9,965,000 (the "Bonds"); and
WHEREAS, the Bonds are currently outstanding in the principal amount of $9,660,000;
and
WHEREAS, the Bond Ordinance provides that the Bonds may be redeemed, at the option
of the City, on any date, as a whole or in part, as selected and designated by the City, at a
redemption price equal to the principal amount to be redeemed plus accrued interest to the date
fixed for redemption; and
WHEREAS, the Bond Ordinance further provides the notice and publication requirements
to effectuate the redemption of the eligible outstanding Bonds; and
WHEREAS, the City, in accordance with this Resolution, will deposit funds with the
paying agent/registrar for the Bonds, First National Bank Texas, Killeen, Texas, in an amount
sufficient to fully pay all principal and interest due on the Bonds having a stated maturity on
February 1 in the years 2022 through 2028, inclusive, on March 9, 2021, in the principal amounts
describe below (collectively, the "Redeemed Bonds"):
Maturity
Principal Amount
Amount Being
Date 2/1
Outstanding ($)
Redeemed ($)
Interest Rate
2022
100,000
100,000
2.01
2023
105,000
105,000
2.01
2024
725,000
550,000
2.01
2025
2,090,000
550,000
2.01
2026
2,140,000
550,000
2.01
2027
2,180,000
550,000
2.01
2028
2,220,000
550,000
2.01
WHEREAS, it is in the best interest of the City and the residents of the City to redeem the
Redeemed Bonds as herein provided in order to reduce the payment of interest thereon and to
reduce the City's aggregate debt service requirements and legal debt outstanding;
4130-0970-7302.1
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WEST UNIVERSITY PLACE, TEXAS THAT:
SECTION 1: Redemption of Redeemed Bonds. The Redeemed Bonds are hereby called
for redemption, and shall be redeemed on March 9, 2021. This redemption and the attached notices
of redemption are irrevocable upon adoption of this resolution (the "Resolution") by the City. The
form of the Notice of Redemption is attached as Exhibit A hereto and incorporated by reference
for all purposes.
SECTION 2: Deposit with Applicable Paying _Agent/Registrar. The discharge and
defeasance of the Redeemed Bonds shall be effectuated pursuant to a deposit by the City from its
debt service fund and from other lawfully available funds of the City, on or before March 9, 2021,
with First National Bank Texas, Killeen, Texas, the paying agent/registrar for the Redeemed
Bonds. Such deposit will comply with all applicable laws and regulations relating to the
redemption of the Redeemed Bonds in order to carry out the intent and purpose of this Resolution
and the Bond Ordinance. The Mayor and City Secretary of the City, or the designees thereof, are
hereby authorized to take such actions as are necessary to effectuate the deposit with the applicable
paying agent/registrar for the Redeemed Bonds and the redemption of the of the Redeemed Bonds.
SECTION 3: Notice of Redemption. The Mayor and City Secretary of the City, or the
designees thereof, are authorized and instructed to provide the notice of redemption described
herein to the applicable paying agent/registrar for each series of the Redeemed Bonds called for
redemption in the manner provided in the Bond Ordinance.
SECTION 4: Further Actions Authorized. The Mayor and City Secretary of the City, or the
designees thereof, are authorized to evidence adoption of this Resolution and to do any and all
things necessary or convenient to effect the redemption of the Redeemed Bonds described herein
and otherwise give effect to the intent hereof.
SECTION 5: Recitals Incorporated. 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.
SECTION 6: Repealer. All orders 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 7: Choice of Law. This Resolution shall be construed and enforced in
accordance with the laws of the State of Texas and the United States of America.
SECTION 8: Severability. 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
City Council hereby declares that this Resolution would have been enacted without such invalid
provision.
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4130-0970-7302.1
SECTION 9: Oben Meeting. 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 10: Headings. The titles and headings of the sections are for convenience of
reference only and are not to be considered a part hereof and shall not in any way modify or restrict
any of the terms and provisions hereof.
SECTION 11: Effective Date. This Resolution shall be in force and effect from and after its
passage, and it is so resolved.
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4130-0970-7302.1
PASSED AND APPROVED, this the 27`h day of July, 2020.
CITY OF WEST UNIVERSITY PLACE, TEXAS
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Mayor
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City ecretary
RECOMMENDED BY:
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City Attorney
4130-6910-",Y32.1
EXHIBIT "A"
Notice is hereby given that the City of West University Place, Texas (the "City"), acting
through its City Council, has called for redemption the following outstanding obligations:
"City of West University Place, Texas General Obligation Refunding Bonds, Series
2017," dated September 7, 2017 (the "Bonds"), bearing interest, and stated to
mature on February 1 in the years listed below year as follows:
Maturity
Principal Amount
Amount Being
Date (1-1)
Outstanding M
Redeemed ($)
Interest Rate (°:o)
2022
100,000
100,000
2.01
2023
105,000
105,000
2.01
2024
725,000
550,000
2.01
2025
2,090,000
550,000
2.01
2026
2,140,000
550,000
2.01
2027
2,180,000
550,000
2.01
2028
2,220,000
550,000
2.01
The date fixed for redemption of the Bonds is March 9, 2021 (the "Redemption Date"), as
authorized by the ordinance authorizing the issuance of the Bonds and as directed by the City
pursuant to a resolution adopted on July 27, 2020. You are hereby notified that the Bonds should
be presented for redemption on or before the Redemption Date and that interest shall cease to
accrue from and after that date, and that on such date there shall become due and payable on each
of the Bonds the redemption price equal to the principal amount thereof, without premium, plus
unpaid accrued interest to the Redemption Date.
Notice is further given that the Bonds will be payable at and should be submitted by
certified or registered mail to First National Bank Texas, at the following address:
FIRST NATIONAL BANK TEXAS
P.O. Box 909
Killeen, Texas 76540
This notice is issued and given pursuant to the option of redemption reserved to the City in
the ordinance authorizing the issuance of the Bonds.
WITNESS MY OFFICIAL SIGNATURE this July 27, 2020.
CITY OF WEST UNIVERSITY PLACE, TEXAS
City Secretary
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4130-0970-7302.1