There came on for consideration the matter of providing financing for various capital improvements for the City of Natchez, Mississippi, and after a discussion of the subject matter, Alderwoman Hall offered and moved the adoption of the following resolution:
RESOLUTION OF THE MAYOR AND BOARD OF ALDERMEN OF THE CITY OF NATCHEZ, MISSISSIPPI, DECLARING THE INTENTION TO ISSUE GENERAL OBLIGATION BONDS OF THE CITY, TO ISSUE A GENERAL OBLIGATION BOND OF THE CITY FOR SALE TO THE MISSISSIPPI DEVELOPMENT BANK, OR TO ENTER INTO A LOAN AGREEMENT WITH THE MISSISSIPPI DEVELOPMENT BANK IN THE MAXIMUM PRINCIPAL AMOUNT OF $6,000,000 TO PROVIDE FUNDS FOR THE PURPOSE OF CONSTRUCTING, IMPROVING, AND PAVING STREETS, SIDEWALKS, AND PARKWAYS, AND PURCHASING LAND THEREFOR; CONSTRUCTING BRIDGES AND CULVERTS; REPAIRING, IMPROVING, AND EXTENDING THE SANITARY, STORM, DRAINAGE, AND SEWERAGE SYSTEMS OF THE CITY; PROTECTING THE CITY, ITS STREETS, AND SIDEWALKS FROM OVERFLOW, CAVING BANKS, AND OTHER LIKE DANGERS;; DIRECTING PUBLICATION OF NOTICE OF SUCH INTENTION; AND FOR RELATED PURPOSES.
WHEREAS, the Mayor and Board of Aldermen of the City of Natchez, Mississippi (the “Governing Body” of the “City”), acting for and on behalf of the City hereby finds, determines, adjudicates, and declares as follows:
1. It is necessary and in the public interest to issue debt obligations of the City to provide funds for the purpose of (i) constructing, improving, and paving streets, sidewalks, and parkways, and purchasing land therefor; constructing bridges and culverts; repairing, improving, and extending the sanitary, storm, drainage, and sewerage systems of the City; protecting the City, its streets, and sidewalks from overflow, caving banks, and other like dangers; (the “Authorized Purposes”); (ii) funding a capitalized interest account, if necessary; and, (iii) paying the costs of the authorization, issuance, sale, validation, and delivery of the debt obligations (together, the “Project”).
2. The City is authorized by Sections 21-33 301 et seq., Mississippi Code of 1972, as amended (the “City Improvements Act”), to issue general obligation bonds of the City in an amount not to exceed the principal amount of $6,000,000, in one or more series (the “Bonds”), for the Project, and for which purpose there are no other available funds on hand.
The assessed value of all taxable property within the City, according to the last completed assessment for taxation, is One Hundred Forty Eight One Hundred Two Thousand Six Hundred Seventy Five Dollars ($148,102,675). The City has outstanding bonded indebtedness subject to the 15% debt limit prescribed by the City Improvements Act, in the amount of $2,000,000, and outstanding bonded and floating indebtedness subject to the 20% debt limit prescribed by the City Improvements Act (which amount includes the sum set forth above subject to the 15% debt limit), in the amount of $2,000,000. The issuance of the bonded indebtedness hereinafter proposed to be issued, when added to the outstanding bonded indebtedness of the City, will not result in bonded indebtedness, exclusive of indebtedness not subject to the aforesaid 15% debt limit, of more than 15% of the assessed value of taxable property within the City, and will not result in indebtedness, both bonded and floating, exclusive of indebtedness not subject to the aforesaid 20% debt limit, in excess of 20% of the assessed value of taxable property within the City, and will not exceed any constitutional or statutory limitation upon indebtedness which may be incurred by the City.
3. Under the provisions of the City Improvements Act, Sections 31-25-1 et seq., Mississippi Code of 1972, as amended (the “Bank Act”), and other applicable laws of the State of Mississippi (the “State”), the City is authorized to undertake activities for the Project and to provide for the payment of the costs thereof, or any portion of such costs, by issuing a general obligation bond or general obligation bonds of the City in an amount not to exceed the principal amount of $6,000,000, in one or more series, for the Project (the “Qualified Obligation”), for sale to the Mississippi Development Bank (the “Bank”), or entering into a loan agreement and obtaining a loan from the Bank for the Project in an amount not to exceed the principal amount of $6,000,000, in one or more series (the “Loan”).
4. The City reasonably expects that it will incur expenditures for the Project for which the City will advance internal funds prior to the issuance of the Bonds, the Qualified Obligation, or the Loan, and that it should declare its official intent to reimburse itself for all or a portion of such expenditures of the Project made in anticipation of the issuance of the Bonds, the Qualified Obligation, or the Loan.
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY AS FOLLOWS:
SECTION 1. This resolution is adopted pursuant to the City Improvements Act, the Bank Act, and other applicable laws of the State (together, the “Act”).
SECTION 2. The Governing Body, acting for and on behalf of the City, does hereby declare its intention to issue and sell the Bonds or the Qualified Obligation or enter into the Loan, pursuant to the Act.
SECTION 3. The Bonds or the Qualified Obligation, if issued, will be general obligations payable as to principal and interest out of and secured by an irrevocable pledge of the avails of a tax to be levied annually, if necessary, upon all the taxable property within the geographical limits of the City, which tax, together with any other moneys available for such purpose, shall be sufficient to provide for the payment of the principal of and the interest on the Bonds according to the terms thereof. The Loan, if issued, will be payable from the legally available revenues of the City. Other funds available to the City which may be lawfully used for payment of the principal of and interest on the Bonds, Qualified Obligation, or the Loan, if issued, include, but are not limited to, use taxes remitted from the State to the City as a result of the Infrastructure Modernization Act of 2018, House Bill 1, 2018 First Extraordinary Session.
SECTION 4. Pursuant to Section 1.150-2
of the Treasury Regulations (the “Reimbursement Regulations”), the Governing Body hereby declares its official intent to reimburse expenditures made for the Project prior to the issuance of the Bonds, the Qualified Obligation, or the Loan with the proceeds of the Bonds, the Qualified Obligation, or the Loan, to the extent permitted by the Reimbursement Regulations.
SECTION 5. The Governing Body proposes to direct the issuance of the Bonds, the Qualified Obligation, or the Loan in the amount, for the purpose, and secured as aforesaid, at a meeting of the Governing Body to be held at its regular meeting place and time in the City Council Chambers of the City located at 115 S. Pearl Street at 6:00 p.m. on August 23, 2022, or at some meeting held subsequent thereto. If 20%, or 1,500, whichever is less, of the qualified electors of the City shall file with the City Clerk a written protest against the issuance of the Bonds, the Qualified Obligation, or the Loan on or before the aforesaid date and hour, then the Bonds, the Qualified Obligation, or the Loan shall not be issued unless authorized at an election to be called and held as provided by law on the question of the issuance of the Bonds, the Qualified Obligation, or the Loan. If no sufficient protest is filed, then the Bonds, the Qualified Obligation, or the Loan may be issued without an election on the question of the issuance thereof at any time within a period of 2 years after the date above specified.
SECTION 6. This resolution shall be published once a week for at least 3 consecutive weeks in the Natchez Democrat, a newspaper published in and having a general circulation in the City and qualified under the provisions of Section 13-3-31, Mississippi Code of 1972, as amended. The first publication of this resolution shall be made not less than 21 days prior to the date fixed herein for the issuance of the Bonds, the Qualified Obligation, or the Loan, and the last publication shall be made not more than 7 days prior to such date.
SECTION 7. The City Clerk shall be and is hereby directed to procure from the publisher of the aforesaid newspaper the customary proof of the publication of this resolution and have the same before the Governing Body on the date and hour specified in Section 5 hereof.
SECTION 8. The Governing Body authorizes Watkins & Eager, PLLC, Jackson, Mississippi, to serve as Bond Counsel (the “Bond Counsel”), and authorizes the Mayor to execute the letter of engagement attached hereto as Attachment “A”; Bryan H. Callaway, Esq., to serve as City Counsel, (the “City Counsel” or “Issuer’s Counsel”), Government Consultants, Inc., Madison, Mississippi, to serve as Municipal Advisor (the “Municipal Advisor”) and authorizes the Mayor to execute the letters of engagement and disclosure attached hereto as Attachment “B”. The Governing Body authorizes the compensation of said parties through negotiated agreements executed by the Mayor, payable from funds to be determined by the Mayor, in a manner not inconsistent with the Act.
SECTION 9. If any one or more of the provisions of this resolution shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any of the other provisions of this resolution, but this resolution shall be construed and enforced as if such illegal or invalid provision or provisions had not been contained herein.
Following the reading of the foregoing resolution and discussion thereof, Alderwoman Hall moved and Alderwoman Smith seconded the motion to adopt the foregoing resolution, and the question being put to a roll call vote, the result was as follows:
Alderwoman Valencia Hall voted: Aye
Alderman Billie Joe Frazier voted: Aye
Alderwoman Sarah Carter- Smith voted: Aye
Alderwoman Felicia Bridgewater-Irving voted: Aye
Alderman Benjamin Davis voted: Aye
Alderman Daniel Dillard voted: Aye
The motion having received the affirmative vote of a majority of the members present, the Mayor declared the motion carried and the resolution adopted this day, July 26, 2022.
City of Natchez, Mississippi
/s/ Dan M. Gibson
Dan M. Gibson, Mayor
/s/ Megan McKenzie
Megan McKenzie, City Clerk
Natchez Democrat: July 29, Aug, 5, 12 and 19, 2022