THE FOLLOWING resolution was offered by Ronda Jacobs, seconded by Daisy Cole
RESOLUTION
A resolution making application to the State Bond Commission for approval of the issuance of not exceeding One Million Two Hundred Thousand Dollars ($1,200,000) of Sales Tax Bonds, Series 2019 of the City of DeQuincy, State of Louisiana, and providing for other matters in connection therewith.
WHEREAS, the City of DeQuincy, State of Louisiana (the “Issuer”), pursuant to an election held on November 2, 2010, is authorized to levy a 1% sales and use tax through December 31, 2035, at which election the following proposition was approved by a majority of the qualified voters voting therein:
PROPOSITION
SUMMARY: A CONTINUED AND REDEDICATED 1% SALES AND USE TAX, WITH AUTHORITY FOR THE CITY OF DEQUINCY, LOUISIANA (THE “CITY”) TO LEVY AND COLLECT A 1% SALE AND USE TAX FOR A PERIOD OF 25 YEARS BEGINNING JANUARY 1, 2011 (THE “TAX”) WITH COLLECTIONS FROM THE LEVY OF THE TAX ESTIMATED TO BE $494,175 FOR ONE CALENDAR YEAR, DEDICATED AND USED FOR CONSTRUCTING, OPERATING, MAINTAINING, AND IMPROVING , SEWERAGE AND SEWERAGE DISPOSAL WORKS, WASTEWATER SYSTEMS, AND OTHER OPERATING EXPENSES OF AND WORKS OF PUBLIC IMPROVEMENT WITHIN THE CITY; AND AUTHORITY TO FUND THE TAX AVAILS INTO BONDS FOR SUCH PURPOSES; AND CONTINGENT UPON SUCCESSFUL PASSAGE OF THIS PROPOSITION UPON FIRST LEVY OF THE TAX TO CANCEL AND TERMINATE THE EXISTING 1% SALES AND USE TAX CURRENTLY LEVIED AND COLLECTED BY THE CITY.
Shall The City of DeQuincy, Louisiana (the “City”) pursuant to Article VI, Sections 29 and 30 of the Louisiana Constitution of 1974, and other constitutional and statutory authority, be authorized to levy and collect a sales and use tax of one percent (1%), for a period of 25 years beginning January 1, 2011, with collections from the levy of the tax estimated to be $494,175 for one calendar year, upon the sale at retail, use, lease or rental, consumption and storage for use or consumption of tangible personal property and on sales of services within the City, all as presently or hereafter defined in La. R.S. 47:301 to 317, inclusive (the “Tax”), with the avails of the Tax (after paying reasonable and necessary costs of collecting and administrating the Tax) dedicated and used for the purpose of constructing, acquiring, operating, maintaining, or improving sewerage and sewerage disposal works, wastewater systems, and other operating expenses of and works of public improvement within the City of DeQuincy, title to which shall be in the public; and, authorization to fund avails of the tax into bonds in various series at various times, to be used to fund the capital costs of improvements within the City, as permitted by Louisiana law, including Sub-Part F, Part III, Chapter 4, Title 39 of the Louisiana Revised Statutes of 1950, as amended; and, upon successful passage of this proposition and initial levy of the Tax to permanently cancel and terminate the existing 1% sales and use tax authorized by an election on October 22, 1983?
WHEREAS, this DeQuincy City Council (the “Governing Authority”), acting as the governing authority of the Issuer, now wishes to issue not exceeding One Million Two Hundred Thousand Dollars ($1,200,000) of Sales Tax Bonds, Series 2019 (the “Bonds”), payable from and secured by an irrevocable pledge and dedication of the avails or proceeds of the Tax, for the purpose of constructing and acquiring improvements, extensions and replacements to the Issuer’s sewerage collection and disposal system, including equipment, fixtures and appurtenances therefor and paying costs of issuance of WHEREAS, the Issuer presently has outstanding no bonds or indebtedness of any kind or nature payable from or enjoying a lien on the revenues of the Tax; and
WHEREAS, it is estimated that the revenues of the Tax in calendar year 2019 will be at least $570,000 and the maturities of the Bonds will be arranged so that the total amount of principal and interest falling due in any year on the Outstanding Parity Bonds and the Bonds will not exceed 75% of the revenues of the Tax estimated to be received by the Issuer in the calendar year in which the Bonds are to be issued; and
WHEREAS, this Governing Authority now wishes to fix the details necessary with respect to the issuance of the Bonds pursuant to Section 1430 of Title 39 of the Louisiana Revised Statutes as amended, and other constitutional and statutory authority, supplemental thereto, and to provide for other matters pertaining thereto, as hereinafter provided;
NOW, THEREFORE, BE IT RESOLVED by the DeQuincy City Council, acting as the governing authority of the City of DeQuincy, State of Louisiana, that:
SECTION 1. State Bond Commission . Application is hereby made to the State Bond Commission for approval of the issuance of not exceeding $1,200,000 of Sales Tax Bonds, Series 2019, of the City of DeQuincy, State of Louisiana, for the purpose of constructing and acquiring improvements, extensions and replacements to the Issuer’s sewerage collection and disposal system, including equipment, fixtures and appurtenances and paying costs of issuance of the Bonds pursuant to the provisions of Section 1430 of Title 39 of the Louisiana Revised Statutes of 1950, as amended, and other constitutional and statutory authority. The Bonds will be payable solely from and secured by an irrevocable pledge and dedication of the avails or proceeds of the special one percent (1%) sales and use tax in the Issuer, the Tax being levied and collected by the Issuer pursuant to election held on November 2, 2010, subject only to the prior payment of the reasonable and necessary costs and expenses of collecting and administering the Tax. The Bonds shall bear interest at a rate or rates not to exceed five percent (5.00%) per annum and shall mature over a period not exceeding fifteen (15) years from the dated thereof. The Bonds shall be issued in fully registered form, shall be sold to the purchaser thereof at a price of par.
SECTION 2. Compliance with State Bond Commission Regulation. By virtue of applicants/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 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 thereby.
SECTION 3. Reimbursement. Prior to the issuance of the Bonds, the Issuer anticipates that it may pay a portion of the costs of the Project from revenues in the general fund. Upon issuance of the Bonds, the Issuer reasonably expects to reimburse said expenditures from the proceeds of the Bonds. Any such allocation of the proceeds of the Bonds for reimbursement will be with respect to capital expenditures [as defined in Treasury Regulation 1.150-1(b)] and will be made upon the delivery of the Bonds and not later than 18 months year after the date of
(i) the date such expenditure was made or (ii) the date the improvements were placed in service.
This resolution is intended to be a declaration of intent to reimburse in accordance with the provisions of Treasury Regulation 1.150-2.
SECTION 4. Bond Counsel. The Issuer hereby acknowledges that it proposes to employ Foley & Judell, L.L.P., of New Orleans, Louisiana, as Bond Counsel for the Bonds, and in connection therewith, the Mayor of the Issuer is hereby authorized and directed to execute, and this Governing Authority hereby agrees to and accepts the terms of, the engagement letter of Bond Counsel, a copy of which is on file with the Clerk of the Council. Future ordinance will provide for the employment of Bond Counsel.
This resolution having been submitted to a vote, the vote thereon was as follows:
MEMBERS YEAS: Denise Maddox, X; Mark James Peloquin, X; Ronda Jacobs, X; Judy Jeanette Landry, X; Daisy Cole, X.
NAYS
ABSENT
ABSTAINING
And the resolution was declared adopted on this, the 8th day of April, 2019.
/s/ Pat Brummett
Clerk of the Council
/s/ Denise Maddox
Council Chairman
STATE OF LOUISIANA PARISH OF CALCASIEU
I, the undersigned Clerk of the DeQuincy City Council of the City of DeQuincy, State of Louisiana, do hereby certify that the foregoing pages constitute a true and correct copy of a resolution adopted on April 8, 2019, making application to the State Bond Commission for approval of the issuance of not exceeding One Million Two Hundred Thousand Dollars ($1,200,000) of Sales Tax Bonds, Series 2019, of the City of DeQuincy, State of Louisiana, and providing for other matters in connection therewith.
IN FAITH WHEREOF, witness my official signature and the impress of the official seal of the Issuer at DeQuincy, Louisiana, on this, the 8th day of April, 2019.
/s/Pat Brummett
Clerk of the Council
[SEAL]
Run: April 17, 2019 (A-6)
