THE FOLLOWING Resolution was offered by Council member Cullen Jackson. and seconded by. Council member Roy Jackson
THE FOLLOWING Resolution was offered by Council member Cullen Jackson. and seconded
by. Council member Roy Jackson
RESOLUTION NO. 070711-3
A RESOLUTION AUTHORIZING THE CITY OF GRAMBLING, PARISH OF LINCOLN, STATE OF LOUISIANA (THE "ISSUER") TO INCUR DEBT AND TO ISSUE ITS CERTIFICATE OF INDEBTEDNESS, SERIES 2011 IN AN AMOUNT NOT TO EXCEED ONE HUNDRED EIGHTY THOUSAND DOLLARS ($180,000); MAKING APPLICATION TO THE STATE BOND
COMMISSION; AND OTHERWISE PROVIDING WITH RESPECT
WHEREAS, the City of Grambling, Parish of Lincoln (the "Issuer") is a municipality and a political subdivision of the State of Louisiana (the "State"); and WHEREAS, the Issuer has an option to purchase certain real property for the sum of One Hundred Seventy-Five Thousand Dollars ($175,000) (the “Project”), such Project being for the purpose of economic development and public improvement; and
WHEREAS, LSA-R.S. 33:2921-2927 (inclusive) of the Louisiana Revised Statutes of 1950, as amended (the "Act"), authorizes the Issuer to issue a certificate of indebtedness covering its cost of public improvements, title to which will be in the public; and WHEREAS, in order to finance the cost of the Project, the Issuer now desires to authorize the incurrence of debt and the issuance of its Certificate of Indebtedness, Series 2011 (the "Certificate"), in the manner authorized and provided for by the Act for the purpose of (i) financing the cost of the Project and (ii) paying costs of the issuance of the Certificate; and WHEREAS, in connection with the issuance of the Certificate, the Issuer desires to authorize the filing of an application with the Louisiana State Bond Commission (the "SBC") requesting that the SBC approve the issuance and sale of the Certificate in accordance with the Act; and WHEREAS, in connection with the issuance of the Certificate, the Issuer desires to authorize the employment of Bond Counsel. NOW THEREFORE, BE IT RESOLVED, by the Mayor and City Council acting
as governing authority of the Issuer (the "Governing Authority"), that:
SECTION 1. Preliminary Approval. For the purpose of providing funds to (i) finance the cost of the Project and (ii) pay the costs of issuance of the Certificate, this Governing Authority hereby gives preliminary approval to the issuance of its not to exceed One Hundred Eighty Thousand Dollars ($180,000) Certificate of Indebtedness, Series 2011.2
SECTION 2. Pledge/Placement/Payment. The Certificate shall be secured by and payable as to principal and interest from a pledge of the excess annual revenues of the Issuer above statutory, necessary and usual charges in each fiscal year during which the Certificate is outstanding and any other legally available excess revenues of the Issuer. The Certificate shall bear interest at a fixed rate not to exceed four and fifty hundredths (4.50%) per centum per annum, maturing over a period not to exceed ten (10) years from the date thereof. The Certificate shall be issued under the authority of the Act and other constitutional and statutory authority supplemental thereto. The acceptance of an offer for sale of the Certificate and the further details of the Certificate shall be established by an ordinance to be adopted by this Governing Authority. It is anticipated that a local bank or institution will purchase the Certificate. It is further anticipated that excess funds in the Town's economic development fund will be used to amortize the Certificate.
SECTION 3. Publication. This Resolution shall be published immediately after its adoption in one (1) issue of The Ruston Daily Leader, a weekly newspaper published in the City of Grambling, Louisiana, being the official journal of the Issuer, and, if the validity of the Certificate is not raised within of thirty (30) days from the date of publication of this Resolution, no court shall have the authority or jurisdiction to inquire into the legality thereof.
SECTION 4. Employment of Bond Counsel. It is hereby recognized, found and determined that a real necessity exists for the employment of Bond Counsel in connection with the issuance of the Certificate, and accordingly, The Boles Law Firm, APC ("Bond Counsel"), is hereby employed to do and to perform comprehensive, legal and coordinate professional work with respect to the issuance and sale of the Certificate. Bond Counsel shall (i) prepare and submit to the Issuer for adoption all of the proceedings incidental to the authorization, issuance, sale and delivery of the Certificate, (ii) counsel and advise the Issuer with respect to the issuance and sale of the Certificate and (iii) furnish their opinion with respect to the legality of the issuance thereof. The fee to be paid Bond Counsel shall be an amount not to exceed that allowed by the Attorney General's then current Bond Counsel Fee Schedule and other guidelines for comprehensive, legal and coordinate professional work in the issuance of revenue bonds applied to the actual aggregate principal amount issued, sold, 3 delivered and paid for at the time the Certificate is delivered, together with reimbursement of out-of-pocket expenses incurred in advance in connection with the issuance of the Certificate, said fee to be payable out of proceeds of the Certificate or other funds provided by the Issuer, subject to the Attorney General's written approval of said employment and fee to be paid with the Certificate proceeds or other funds. The fee to be paid Bond Counsel is payable contingent on the sale and delivery of the Certificate. A certified copy of this Resolution shall be submitted to the Attorney General of the State of Louisiana for his written approval of said employment of Bond counsel and of the fees to be paid Bond Counsel herein designated.
SECTION 5. State Bond Commission Application. Application is hereby formally made by the Issuer to the Louisiana State Bond Commission for consent and authority to issue, sell and deliver the Certificate. The Governing Authority hereby authorizes and directs Bond Counsel to proceed to execute and deliver to the State Bond Commission applications and any and all additional instruments, documents and certificates for consent and authority to issue sell and deliver the Certificate. Additionally, the Mayor and/or the Clerk of the Issuer are hereby authorized to do all things necessary, on the advice of the Bond Counsel to the Issuer, to effectuate and implement this Resolution, including the publication hereof as required by the Act.
SECTION 6. Declaration of Official Intent Under Reg. 1.150-2. Prior to the issuance of the Certificate, the City anticipates that it may pay a portion of the costs of the Project described above from its General Fund or other available funds. Upon the issuance of the Certificate or other debt to provide permanent financing for the Project, the Issuer reasonably expects that it will reimburse any such interim expenditures from a portion of the proceeds of the Certificate or other debt. Any such allocation of proceeds of the Certificate or other debt for reimbursement will be with respect to capital expenditures (as defined in Reg. 1.150-1(b)) and will be made upon the delivery of the Certificate or other debt and not later than eighteen (18) months after the later of (i) the date such expenditure was paid or (ii) the date on which the Project is placed in service, but in no event more than three (3) years after the original expenditure is paid. This Section is intended to be a declaration of official intent within the meaning of Section 4 1.150-2 of the U.S. Treasury Regulations under Section 150 of the Internal Revenue
Code of 1986, as amended.
SECTION 7. SBC Swap Approval. By virtue of the Issuer's application for, acceptance and utilization of the benefits of the Louisiana State Bond Commission's approval(s) resolved and set forth herein, it resolves that it understands and agrees that such approval(s) are expressly conditioned upon, and it further resolves that it understands, agrees and binds itself, its successors and assigns, to full and continuing compliance with the "State Bond Commission Policy on Approval of Proposed Use of Swaps, or other forms of Derivative Products Hedges, Etc.", adopted by the State Bond Commission on July 20, 2006, as to the borrowing(s) and other matter(s) subject to the approval(s), including subsequent application and approval under said Policy of the implementation or use of any swap(s) or other product(s) or enhancement(s) covered
SECTION 8. Effective Date. This Resolution shall become effective
immediately upon adoption hereof. The foregoing resolution having been submitted to a vote, the vote thereon was as follows:
YEAS: Council members Birdex Copeland, Jr., Cathy Holmes, Yanise Days, Cullen Jackson, & Roy Jackson
And the resolution was adopted on this the 7th day of July, 2011, in Grambling, Louisiana.
Edward R. Jones, Mayor
Pamela J. Stringfellow, Certified Municipal Clerk
3td: July 13, 19, & 26, 2011