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HomeMy WebLinkAboutOrder No. 2017-0215 Bond Election Order CERTIFICATE FOR ORDER THE STATE OF TEXAS § § COUNTIES OF DENTON AND TARRANT § I, the undersigned Secretary of the Board of Directors of Trophy Club Municipal Utility District No. 1, hereby certify as follows: 1. The Board of Directors of Trophy Club Municipal Utility District No. 1 convened in regular session in the Board Room of the District, located at 100 Municipal Drive, Trophy Club, Texas, inside the boundaries of the District, on the 15th of February, 2017, and the roll was called of the duly constituted officers and members of the Board, to wit: Kevin Carr President Gregory Wilson Vice President Jim Hase Secretary/Treasurer Jim Thomas Director Bill Rose Director and all of said persons were present, thus constituting a quorum. Whereupon, among other business, the following was transacted at the meeting: a written ORDER CALLING A BOND ELECTION FOR TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 AND MAKING PROVISIONS FOR CONDUCTING SUCH ELECTION AND OTHER PROVISIONS INCIDENTAL AND RELATED THERETO was introduced for the consideration of the Board of Directors. It was then duly moved and seconded that the Order be adopted; and, after due discussion, the motion, carrying with it the adoption of the Order, prevailed and carried by the following vote: Ayes: 3 Nays: 1 Abstentions: 1 2. A true, full and correct copy of the aforesaid Order adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; the Order has been duly recorded in the Board’s minutes of the meeting; the persons named in the above and foregoing paragraph were the duly chosen, qualified and acting officers and members of the Board as indicated therein; each of the officers and members of the Board was duly and sufficiently notified officially and personally, in advance, and notice was posted and given more than 72 hours in advance, of the time, place and purpose of the aforesaid meeting in accordance with applicable law, including Chapter 551, Texas Government Code, as amended, and that the Order would be introduced and considered for adoption at the meeting; and each of the officers and members consented, in advance, to the holding of the meeting for such purpose. [The remainder of this page intentionally left blank.] ORDER 2017-0215 ORDER CALLING A BOND ELECTION FOR TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 AND MAKING PROVISIONS FOR CONDUCTING SUCH ELECTION AND OTHER PROVISIONS INCIDENTAL AND RELATED THERETO WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a conservation and reclamation district created under and essential to accomplish the purposes of Section 59, Article XVI of the Texas Constitution and currently operates pursuant to Chapters 49 and 54, Texas Water Code, as amended; and WHEREAS, Section 54.501 of the Texas Water Code provides that a municipal utility district may issue its bonds for any purpose authorized by law, including for the purpose of purchasing, constructing, acquiring, owning, operating, repairing, improving, or extending any district works, improvements, facilities, plants, equipment, and appliances needed to accomplish the purposes for which a district is created, including works, improvements, facilities, plants, equipment, and appliances needed to provide a waterworks system, sanitary sewer system, storm sewer system, and solid waste disposal system; WHEREAS, Section 54.505, Texas Water Code, provides that bonds payable wholly or partially from ad valorem taxes shall not be issued until authorized by a majority vote of the resident electors of the District voting in an election called and held for that purpose; and WHEREAS, Section 49.106(a), Texas Water Code, provides that before an election is held to authorize the issuance of bonds, there shall be filed in the office of the District and open to inspection by the public an engineer’s report covering the land, improvement, facilities, plants, equipment, and appliances to be purchased or constructed and their estimated cost, together with maps, plats, profiles, and data fully showing and explaining the report; and WHEREAS, there has been filed in the office of the District, open to inspection by the public, an engineer’s report covering the facilities to be voted including the works, improvements, facilities, land, plants, equipment and appliances to be purchased, acquired and constructed by the District and the property, contract rights, rights of use and interests in property, and regional, regulatory or joint use participation rights to be purchased or acquired as well as the estimated cost of all the foregoing, together with maps, plats, profiles and data showing and explaining the report, and the report has been carefully considered by the Board of Directors of the District (the “Board”) and has been fully approved by the Board; however, the engineer’s report is not part of the proposition to be voted on and is not a contract with the voters; and WHEREAS, said works, improvements, facilities, land, plants, equipment, appliances, property, contract rights, rights of use and interests in property are designed and intended to improve the District’s waterworks system for and of benefit to the District and its residents; and WHEREAS, the engineer’s report heretofore filed and approved contain an estimate of the cost of the purchase, acquisition and construction of the proposed works, improvements, facilities, land, plants, equipment, appliances and an estimate of the District’s cost due or to become due under contracts and the cost of purchasing and acquiring such property, contract rights, rights of use and interests in property, administrative facilities and expenses incident thereto, as generally follows: ESTIMATED ENGINEERING AND CONSTRUCTION COSTS Water Facilities $1,646,750 Construction Contingency (15%) $247,012 Engineering and Surveying $284,064 TOTAL CONSTRUCTION COSTS $2,177,827 NON-CONSTRUCTION COSTS Legal Fees $72,250 Fiscal Agent Fees $53,800 Bond Discount (3%) $72,600 Bond Application Report Costs $15,000 Issuance Costs $20,053 TCEQ Fee $6,050 Attorney General Fee $2,420 SUBTOTAL NON-CONSTRUCTION COSTS $240,000 TOTAL BOND ISSUE REQUIREMENT $2,420,000 WHEREAS, the above costs are estimates only and the actual improvements and the costs thereof may change, and the Board reserves the right to authorize amendments to the engineer’s report and to reallocate costs and make such other changes as necessary to meet the requirements of the District; WHEREAS, the Board finds that the amount of the above estimates is reasonable and proper and will be sufficient for the costs of the improvements and approves the same; and WHEREAS, the Board desires to proceed with the ordering of said bond election. BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: Section 1. The matters and facts set out in the preamble of this Order are hereby found and declared to be true and complete. Section 2. The engineering report estimates of costs hereinabove mentioned are hereby approved; provided, however, the District reserves the right to authorize amendments to the engineer’s report and to reallocate costs and make such other changes as necessary to meet the changing requirements of the District. Section 3. A special election shall be held on May 6, 2017, between the hours of 7:00 a.m. and 7:00 p.m. at the places listed on Exhibit “A”, being the polling places established by Tarrant County and Denton County to serve each county’s regular election precincts within the District, as required by Section 42.0621 of the Texas Election Code. The polling locations designated on Exhibit “A” may be changed from time to time to reflect any changes to the County election precincts and polling locations established by the counties. After duly considering the requirements of the Texas Election Code, the Board hereby finds said polling places to be proper places for conducting the election and that said locations can adequately and conveniently serve the affected voters of the District and will facilitate the orderly conduct of the election. Section 4. The Denton County Election Administrator is hereby appointed as the officer of said election for the qualified voters of the District that reside in Denton County, and the Tarrant County Election Administrator is appointed to serve as the officer of said election to conduct the election for qualified District voters residing in Tarrant County. The Denton County Election Administrator and Tarrant County Election Administrator are conducting the election pursuant to election agreements (the “Election Agreements”) between the District and Denton County and Tarrant County, as authorized under Section 31.092 of the Texas Election Code. The election shall be held as a joint election pursuant to Chapter 271 of the Texas Election Code and a joint election agreement to be entered into between the District and the other participating entities located in such counties that are holding an election on May 6, 2017. The election equipment of Denton County and Tarrant County shall be used in the election. The election judges and clerks shall be appointed in accordance with the Election Agreements and the Texas Election Code, as amended. Section 5. The following proposition shall be submitted to the resident qualified electors of the District: PROPOSITION SHALL THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BE AUTHORIZED TO ISSUE THE BONDS OF SAID DISTRICT IN ONE OR MORE ISSUES OR SERIES IN THE MAXIMUM AGGREGATE ORIGINAL PRINCIPAL AMOUNT OF $2,420,000 MATURING SERIALLY OR OTHERWISE IN SUCH INSTALLMENTS AS ARE FIXED BY SAID BOARD OVER A PERIOD OR PERIODS NOT EXCEEDING FORTY (40) YEARS FROM THEIR DATE OR DATES, BEARING INTEREST AT ANY RATE OR RATES, AND TO SELL SAID BONDS AT ANY PRICE OR PRICES, PROVIDED THAT THE NET EFFECTIVE INTEREST RATE ON ANY ISSUE OR SERIES OF SAID BONDS SHALL NOT EXCEED THE MAXIMUM LEGAL LIMIT IN EFFECT AT THE TIME OF ISSUANCE OF EACH ISSUE OR SERIES OF BONDS, ALL AS MAY BE DETERMINED BY THE BOARD OF DIRECTORS OF SAID DISTRICT, FOR THE PURPOSE OR PURPOSES OF PURCHASING, CONSTRUCTING, ACQUIRING, OWNING, OPERATING, REPAIRING, IMPROVING, OR EXTENDING, OR PAYING FOR INSIDE AND OUTSIDE THE DISTRICT'S BOUNDARIES, ANY WORKS, IMPROVEMENTS, FACILITIES, PLANTS, EQUIPMENT AND APPLIANCES, NEEDED FOR THE DISTRICT’S WATERWORKS SYSTEM, INCLUDING, BUT NOT LIMITED TO, ALL ADDITIONS TO SUCH SYSTEM AND ALL WORKS, IMPROVEMENTS, FACILITIES, PLANTS, EQUIPMENT, APPLIANCES, INTERESTS IN PROPERTY, AND CONTRACT RIGHTS, RIGHTS OF USE, AND INTERESTS IN PROPERTY NECESSARY, APPROPRIATE OR INCIDENT THERETO AND ADMINISTRATIVE FACILITIES NEEDED IN CONNECTION THEREWITH, AND TO PROVIDE FOR THE PAYMENT OF PRINCIPAL OF AND INTEREST ON SUCH BONDS BY THE LEVY AND COLLECTION OF A SUFFICIENT TAX UPON ALL TAXABLE PROPERTY WITHIN SAID DISTRICT, ALL AS AUTHORIZED BY THE CONSTITUTION AND LAWS OF THE STATE OF TEXAS? Section 6. Voting in the election shall be by use of electronic or paper ballots which shall show the propositions in both English and Spanish and which shall conform to the requirements of federal law, including the Help America Vote Act and the Texas Election Code, as amended. The ballots used in the election shall contain the following: PROPOSITION [ ] FOR THE ISSUANCE OF $2,420,000 BONDS FOR WATERWORKS SYSTEM IMPROVEMENTS AND THE LEVY OF TAXES IN PAYMENT OF [ ] AGAINST THE BONDS Each voter shall vote on the proposition by placing an "X" in the square beside the statement indicating the way he or she wishes to vote. Section 7: Oral assistance in Spanish shall be made available to all persons requiring such assistance. Any person requiring oral assistance in Spanish should contact the presiding judge or the early voting clerk. Section 8: The early voting ballot board presiding judge and alternate presiding judge shall be appointed in accordance with the Election Agreement and the Texas Election Code. Section 9: Early voting in the election by personal appearance shall be conducted at the times, dates, polling places used for the Denton County General Election and Tarrant County General Election which will be attached as Exhibit “B” to this Order and the exhibit is incorporated by reference for all purposes. The Denton County Election Administrator is the Early Voting Clerk for the qualified voters of the District residing in Denton County, and the Tarrant County Election Administrator is the Early Voting Clear for the qualified voters of the District residing in Tarrant County. The Early Voting Clerks’ mailing addresses to which ballot applications and ballots to be voted by mail may be sent are as follows: For Qualified Voters of the District residing in Denton County: Early Voter Clerk Denton County Elections Administration 701 Kimberly Drive, Suite A101 Denton, Texas 76208 For Qualified Voters of the District residing in Tarrant County: Early Voter Clerk Tarrant County Elections Administration 2700 Premier Street Fort Worth, Texas 76111 Section 10: The Denton County Elections Administrator and Tarrant County Elections Administrator may use a central count station as provided by Section 127.000 et. seq., as amended, Texas Election Code. The central counting station presiding judge and the alternate presiding judge shall be appointed in accordance with the Election Agreements and the Texas Election Code. Section 11: The election shall be held and conducted and returns shall be made to the Board in accordance with State and Federal law including the Help America Vote Act and the Texas Election Code as modified by Chapters 49 and 54, Texas Water Code, and the Election Agreement. Section 12: All qualified resident electors of the District shall be entitled to vote in the elections. Section 13: In accordance with Section 4.003(a)(2) of the Texas Election Code, a substantial copy of this Order, appearing in English and Spanish, shall serve as proper notice of said election, and the President of the Board or other representatives of the District shall cause the notice to be posted, not later than the 21st day before election day, at a public place in each election precinct that is in the jurisdiction of the District. In addition, pursuant to Section 4.003(f) of the Texas Election Code, a copy of this Order shall be posted: (i) on election day and during early voting by personal appearance, in a prominent location at each polling place; (ii) not later than the 21st day before the election, in three public places in the boundaries of the District; and (iii) during the 21 days before the election, on the District’s internet website, prominently and together with the notice of the election and the contents of the proposition, if the District maintains an internet website. Section 14: Immediately after the election, the officers holding same shall make and deliver returns of the results thereof to the Secretary of the Board, who shall safely keep them and deliver same to the Board, at which the Board shall canvass the returns and declare the results of the election pursuant to 49.101 of the Texas Water Code and Section 67.003, Texas Election Code, as amended. Section 15: In accordance with the provisions of Sec. 3.009(b), Texas Election Code, the following information is provided: A. The proposition language that will appear on the ballot is set forth in Section 5 of this Order. B. The purposes for which the bonds are to be authorized are set forth in Sections 5 and 6 of this Order. C. The principal amounts of the bonds to be authorized are set forth in Sections 5 and 6 of this Order. D. As set forth in Sections 5 and 6 of this Order, if the bonds are approved by the voters, taxes sufficient to pay the annual principal of and interest on the bonds may be levied without limitation as to rate or amount. E. The maximum estimated tax rate of the debt obligations or any series of debt obligations under the Proposition is $0.05 per $100 of assessed valuation in the District based on market conditions at the time of this election and as calculated in accordance with applicable law. Such estimate takes into account a number of factors including issuance schedule, maturity schedule and the estimated projected interest rate on the bonds. The estimated maximum tax rate is provided for informational purposes only in accordance with Section 3.009(b)(5) of the Texas Election Code and could be affected by material changes in the assumptions used, including future economic and legal changes that are beyond the control of the District. The estimated maximum tax rate provided herein is not a limitation on the tax rate which may be levied by the District for purposes of paying the annual principal of or interest on the bonds, or any series thereof. Such estimate does not create a contract with the voters and shall not in any way limit the District from setting a higher tax rate if necessary; F. The maximum interest rate of the debt obligations or any series of debt obligations under the Proposition is 5.50% based upon the bond market conditions at the date of adoption of this Order and as calculated in accordance with applicable law. Such estimate takes into account a number of factors including issuance schedule, maturity schedule and the estimated projected tax rate. The estimated maximum interest rate is provided for informational purposes only in accordance with Section 3.009(b)(5) of the Texas Election Code and could be affected by material changes in the assumptions used, including future economic and legal changes that are beyond the control of the District. The estimated maximum interest rate provided herein is not a limitation on the interest rate at which the bonds, or any series thereof, may be submitted to the TCEQ for purposes of approval of issuance of the bonds or the interest rate at which the bonds, or any series thereof, may be sold. Such estimate does not create a contract with the voters and shall not in any way limit the District from setting a higher tax rate if necessary; G. If approved by the voters, the bonds may be issued in one or more series to mature serially over a period not to exceed forty (40) years; H. The aggregate amount of the outstanding principal of the District’s debt obligations as of the beginning of the District’s fiscal year in which this election is ordered is $10,160,000; I. The aggregate amount of the outstanding interest of the District’s debt obligations as of the beginning of the District’s fiscal year in which this election is ordered is $2,668,880; and J. The ad valorem tax rate for the District at the time this election is ordered is $0.0484 per $100 of assessed valuation of taxable property in the District. The information provided in this section if provided solely for the purpose of compliance with Sec. 3.009(b), Texas Election Code and is for illustration purposes only. The information is not part of the proposition to be voted on and does not create a contract with the voters. Section 16: The President and Secretary are authorized and directed to take any action necessary to carry out the provisions of this order. Section 17: It is hereby found that the meeting at which this Order has been considered and adopted is open to the public, as required by law, and that written notice of the time, place, and subject matter of said meeting, and to the proposed adoption of this Order, was given as required by 49.063, Texas Water Code, as amended. The Board further ratifies and confirms said written notice and the contents and posting thereof. Exhibit “A” Voting Times and Polling Places Exhibit “B” Early Voting Times, Dates and Polling Places