HomeMy WebLinkAbout032787 ORD - 06/28/2022 1
ORDINANCE NO. ° 3 2 7 8
ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF CORPUS
CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE
IMPROVEMENT, SERIES 2022B FOR WATER, WASTEWATER, AND
STORMWATER UTILITY IMPROVEMENTS IN AN AMOUNT NOT TO
EXCEED $102,000,000, WITHIN SET PARAMETERS AND ACCORDING
TO THE PLAN OF FINANCE SET BY THE CITY'S FINANCIAL
ADVISORS; MAKING PROVISIONS FOR THE PAYMENT AND
SECURITY THEREOF BY A JUNIOR AND INFERIOR LIEN ON AND
PLEDGE OF THE NET REVENUES OF THE CITY'S UTILITY SYSTEM
ON A PARITY WITH CERTAIN CURRENTLY OUTSTANDING UTILITY
SYSTEM REVENUE OBLIGATIONS; DELEGATING AUTHORITY TO
THE CITY MANAGER, CHIEF FINANCIAL OFFICER, DIRECTOR OF
FINANCE AND PROCUREMENT AND CERTAIN OTHER
AUTHORIZED OFFICIALS TO APPROVE AND EXECUTE
DOCUMENTS RELATING TO THE ISSUANCE, SALE AND DELIVERY
OF THE BONDS; ENACTING OTHER PROVISIONS INCIDENT AND
RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council (the City Council) of the City of Corpus Christi, Texas (the
City) has heretofore issued, and there are currently Outstanding, revenue bonds (the Previously
Issued Junior Lien Obligations)secured by a first and prior lien on and pledge of the Net Revenues
(hereinafter defined) of the City's combined utility systems (as further described and defined
herein,the System); and
WHEREAS,in the City ordinances authorizing the issuance of the Previously Issued Junior
Lien Obligations,the City reserved the right to issue revenue bonds on a parity with the Previously
Issued Junior Lien Obligations (hereinafter defined) from time to time outstanding; and
WHEREAS, the City Council has heretofore issued, and there are currently outstanding,
obligations supported by a lien on and pledge of the Net Revenues of the System that are inferior
to the lien thereon and pledge thereof securing the Junior Lien Obligations (the Previously Issued
Subordinate Lien Obligations); and •
WHEREAS, the City Council has determined for the purpose of improving the credit
quality of its Junior Lien Obligations,which has become its primary lien for issuing System debt,
that it will no longer issue"Priority Bonds"which were previously secured by a first and prior lien
on and pledge of the Net Revenues of the System; and
WHEREAS, on the date hereof, no Priority Bonds remain outstanding and all System
revenue obligations previously subordinate and inferior to the Priority Bonds in priority of lien on
and pledge of Net Revenues have been elevated in kind and as hereinbefore stated,and all revenue
obligations herein and hereafter issued as Junior Lien Obligations shall be secured by a first and
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