From
Cheryl Davenport, Treasurer
Title
Resolution approving and authorizing a Principal Forgiveness Agreement between the Texas Water Development Board and the City.
Presenter
Diana G. Ortiz, Chief Financial Officer
Recommended Action
Approve
Analysis
On January 26, 2017, TWDB approved the City's financial assistance request in the amount of $5,741,174, consisting of a $5,110,000 loan and $631,175 in loan forgiveness, from the Clean Water State Revolving Fund. The City will use the funds to finance construction of wastewater system improvements. The timeline and schedule of activities was presented to the Finance and Government Committee on March 7, 2017. The pricing of the bonds will take place the week of April 10 and the bonds will be structured over a thirteen year term.
Financial Consideration
Debt service expenditures are budgeted in the Water and Wastewater Debt Service Fund.
Body
A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A PRINCIPAL FORGIVENESS AGREEMENT BETWEEN THE TEXAS WATER DEVELOPMENT BOARD AND THE CITY OF GRAND PRAIRIE, TEXAS
WHEREAS, the Texas Water Development Board (the “TWDB”) adopted Resolution No. 17-005 on January 26, 2017 (the “TWDB Resolution”) making a commitment to provide financial assistance to the City of Grand Prairie, Texas (the “City”) in the amount of $5,741,175 from the Clean Water State Revolving Fund through the TWDB’s proposed purchase of $5,110,000 City of Grand Prairie, Texas Water and Wastewater System Revenue Bonds, New Series 2017 and the execution of a Principal Forgiveness Agreement in the amount of $631,175 to finance wastewater system improvements; and
WHEREAS, the City Council hereby finds and determines that the Principal Forgiveness Agreement between the City and the TWDB (substantially in the form and content of Exhibit A attached hereto) should be approved and authorized to be executed; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
Section 1. The form of Principal Forgiveness Agreement between the TWDB and the City attached hereto as Exhibit A and incorporated herein for all purposes is hereby approved for and on behalf of the City as to form and content, and such agreement in substantially the form and substance attached hereto, together with such changes or revisions as the Mayor and/or City Secretary may deem necessary to accomplish the financing contemplated, is hereby authorized to be executed by the Mayor for and on behalf of the City and as the act and deed of this Council; and such Principal Forgiveness Agreement as executed by said officials shall be deemed approved by the City Council and constitute the agreement herein approved.
Section 2. The City Council hereby authorizes the execution and delivery of any and all other documents related to the Principal Forgiveness Agreement including any required escrow agreement and any other documents, instruments or certificates related to obtaining the Principal Forgiveness.
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PASSED AND ADOPTED, this April 18, 2017.