HomeMy WebLinkAbout2017 02_OPWA_Revenue Anticipation Note_2017.11.07OWASSO PUBLIC WORKS AUTHORITY
RESOLUTION 2017 -02
A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY AUTHORIZING THE
ISSUANCE, EXECUTION AND DELIVERY OF THE OWASSO PUBLIC WORKS AUTHORITY
REVENUE ANTICIPATION NOTE IN AN AMOUNT NOT TO EXCEED SEVEN MILLION
DOLLARS ($7,000,000.00), TO THE CITY OF OWASSO, OKLAHOMA, APPROVING THE
AGREEMENT, FORM OF THE REVENUE ANTICIPATION NOTE AND OTHER DOCUMENTS
AND AGREEMENTS AS MAY BE NECESSARY OR REQUIRED; AUTHORIZING THE
TRANSFER OF PROCEEDS OF THE NOTE TO THE CAPITAL IMPROVEMENTS FUND OF THE
CITY OF OWASSO; AND CONTAINING OTHER PROVISIONS RELATING THERETO
WHEREAS, the Owasso Public Works Authority was created by a Declaration of Trust,
dated as of January 10, 1973, (collectively the "Trust Indenture ") for the use and benefit of the
City of Owasso, Oklahoma (the "City ") under authority of and pursuant to the provisions of Title
60 O.S. 1981, Section 176 to 180.3 inclusive as amended and supplemented and other
applicable statutes of the State of Oklahoma; and,
WHEREAS, the Authority has determined that it would be most advantageous at this time
for the Authority to provide funds for the financing of Capital Improvement Projects for the
construction located in the City; and
WHEREAS, there has been presented to this meeting a form of Agreement and Revenue
Anticipation Note, dated as of the 8th day of November, 2017, by and between the Authority
and the City of Owasso, Oklahoma (the "Note ").
NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS
AUTHORITY THAT, TO -WIT:
SECTION ONE. The Agreement and form of the Note presented to this meeting be, and
hereby is, approved, and the Chair or Vice -Chair of the Trustees and the Secretary or any
Assistant Secretary of Trustees of the Authority be, and hereby are, authorized, directed, and
empowered to execute and deliver in the name of the Authority, the Agreement and the Note
in said form and containing the terms and provisions contained in said Note, the execution
thereof by such officers being conclusive evidence of such approval, and to execute and
deliver in the name of and on behalf of the Authority all documents, closing papers, certificates
and such other documents as are necessary to accomplish the issuance of the Revenue
Anticipation Note.
SECTION TWO. The signatures of the officers of the Authority appearing on the
Agreement and the Note and other documents and agreements, closing papers and
certificates executed and delivered pursuant to this resolution shall be conclusive evidence of
their approval thereof and of their authority to execute and deliver such agreements and
documents on behalf of the Authority.
SECTION THREE. The Chair or Vice -Chair of the Trustees and the Secretary or any Assistant
Secretary of the Trustees of the Authority be, and they hereby are, authorized and empowered
for and on behalf of the Authority to execute and deliver such further agreements and
documents and to take such action as such officer or officers may deem necessary or desirable
in order to carry out and perform the Note and any contracts, documents, or instruments
executed and delivered in connection with the issuance of the Note, and to effect the purposes
thereof and to consummate the transactions contemplated thereby.
SECTION FOUR. The Treasurer of the Authority is authorized to transfer the proceeds of the
Note to the Capital Improvements Fund of the City of Owasso on an as needed basis to provide
funds for the Capital Improvement Projects of the City.
PASSED AND APPROVED this 7th day of November, 2017.
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APPROVED AS TO FORM:
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OPWA Resolution 2017 -02, page 2 of 2
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SUBJECT:
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The Honorable Chair and Trustees
Owasso Public Works Authority
BACKGROUND:
Linda Jones
Finance Director
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Nov usTEFs
Resolution 2017 -02, Revenue Anticipation Note (RAN) Financing of CIP Projects
November 3, 2017
The City of Owasso and its trust authorities have utilized RAN financing several times in the past.
First used in 1998 for the financing of the Elm Creek Sewer Interceptor project, RAN financing was
utilized most recently for the purchase of police vehicles in 2015.
As has been discussed with Council on multiple occasions, currently authorized Capital
Improvement Projects (CIP) will require over six years of sales tax revenues to fund. To enable
the City to advance the progress of approved CIP projects without delay, staff recommends
utilization of a RAN "construction loan" of up to $7 million to be paid over a seven -year period at
an interest rate of 2% of the outstanding loan balance.
RAN FINANCING —HOW IT WORKS:
The City of Owasso utilizes a "pooled" cash system for the receipt, disbursement and investment
of all funds. The Consolidated (pooled) Cash Fund includes all cash and investments for the city
and its trust authorities. The total in the Consolidated Cash Fund varies throughout the year
depending on cash flow and major expenditures. The current pooled cash balance is in excess
of $20 million including approximately $7 million in the Capital Improvements fund.
Actions necessary to accomplish this financing method are as follows:
1. OPWA Trustee approval of a Resolution authorizing the borrowing and issuance of a
RAN.
2. Council approval of a Resolution authorizing the investment in a RAN of the OPWA.
3. Council and OPWA authorization to execute the Loan Agreement.
4. Council and OPWA approval of budget amendments for the receipt of RAN
proceeds, transfer of funds from OPWA to the Capital Improvements fund and
increased capital expenditures in the Capital Improvements fund.
5. OPWA Trustee approval of the transfer of the proceeds of the RAN from the OPWA to
the Capital Improvements Fund of the City.
6. Council approval of future fiscal year budgets transferring funds from the Capital
Improvements fund to the OPWA for debt service payments on the RAN.
RECOMMENDATION:
Staff recommends approval of Resolution 2017 -02, authorizing issuance of a Revenue
Anticipation Note (RAN) of the Owasso Public Works Authority in an amount not to exceed $7
million approving the Loan Agreement and Revenue Anticipation Note, authorizing the transfer
of the Note proceeds to the City Capital Improvements fund, and authorizing the execution of
all related documents.
ATTACHMENTS:
Resolution 2017 -02
Revenue Anticipation Note
Loan Agreement
Council Memo dated October 6, 2017,