17-1435 Authorize Financing Under SRF Loan Program to Fund City Wastewater System Imprrovement and ExpansionRESOLUTION NO.17-1435
A RESOLUTION OF CITY OF LONGWOOD, FLORIDA,
AUTHORIZING THE CITY MANAGER TO APPLY FOR UP TO A
FOUR AND ONE-HALF MILLION DOLLAR LOAN UNDER THE
STATE REVOLVING FUND LOAN PROGRAM TO FUND A CITY
WASTEWATER SYSTEM IMPROVEMENT AND EXPANSION
PROJECT AND THE COST OF DEBT ISSUANCE AND IF SUCH
LOAN APPLICATION IS APPROVED, REQUIRING CITY
COMMISSION APPROVAL BY ORDINANCE PRIOR TO
EXECUTION AND DELIVERY OF THE LOAN AGREEMENT,
NOTE AND RELATED CLOSING DOCUMENTS; SUCH LOAN
WOULD PLEDGE UTILITY SYSTEM REVENUES AND SHALL
NOT PLEDGE AD VALOREM TAXES OR BE A GENERAL
OBLIGATION DEBT; PROVIDING FOR CONFLICTS,
SEVERABILITY, AND AN EFFECTIVE DATE.
WHEREAS, Florida Statutes provide for loans to local government agencies to finance the
construction of wastewater treatment facilities; and
WHEREAS, Florida Administrative Code rules require authorization to apply for loans, to
establish pledged revenues, to designate an authorized representative; to provide assurances of
compliance with loan program requirements; and
WHEREAS; the City of Longwood, Florida, desires for its City Manager to apply and seek
approval for a loan agreement from the State of Florida Department of Environmental Protection
under the State Revolving Fund Program for financing design, permitting and construction of
Wastewater System Improvements and Expansions estimated to cost $4.5 million (the
"Wastewater Project"); and
WHEREAS, if the loan application is approved, final approval of the loan- agreement, note and
relating closing documents must come back to the City Commission for final approval via
ordinance approved by at least four of the five City Commissioners.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
LONGWOOD, FLORIDA, AS FOLLOWS:
SECTION I. Recitals. The foregoing findings are incorporated herein by reference and made a
part hereof.
SECTION H. Loan Application Authorization. The City Commission of City of Longwood,
Florida, hereby authorizes its City Manager to apply for and seek approval from the State of
Florida Department of Environmental Protection under the State Revolving Fund Program for up
to four and one-half million dollars ($4,500,000.00) to finance the design, permitting and
construction of the Wastewater Project and for the cost of issuance of such debt. The City
Manager is hereby designated as the authorized representative for the City of Longwood to
provide the assurances and commitments required by the loan application, subject to final
approval of the loan by the City Commission as set forth in this Resolution. Further, the City
Resolution No. 17-1435
Page 1 of
Manager is hereby given the authority to move forward with the preparation of the preliminary
planning documents and other documents needed to secure a loan under the State Revolving
Fund Program to fund the Wastewater Project and to cover the cost of issuance of such debt.
This Resolution does not authorize the approval of any loan agreement, note or any other closing
document in the event the loan application is approved. Pursuant to the City of Longwood
Charter, any loan agreement, note and related closing documents for a loan or debt issuance of
four and one-half million dollars must be approved pursuant to an ordinance approved by at least
four of the five the City Commissioners. Thus, if the loan application is approved, the loan must
come back to the City Commission for final approval via ordinance before a loan agreement,
note and relating closing documents can be approved, executed and delivered.
SECTION III. Revenues Pledg6d/Not General Obligation. The revenues pledged for the
repayment of the intended loan under the State Revolving Fund are, the City's net water and
sewer system revenues after payment of debt service. The loan agreement and note shall not be a
general obligation debt of the City of Longwood. The loan agreement and note, when delivered
by the City of Longwood pursuant to the terms of the loan agreement and authorizing ordinance,
shall not be or constitute an indebtedness of the City of Longwood within the meaning of any
constitutional or statutory limitation of indebtedness, -but shall be payable solely from the
pledged revenues as to be provided in the loan agreement and authorizing ordinance. The loan
agreement and note shall not pledge ad valorem tax revenues or permit or constitute a mortgage
or lien upon any assets owned by the City of Longwood, including, but not limited to, the
Wastewater Project and the City's water and sewer system. The noteholder shall never have the
right to compel the exercise of the ad valorem taxing power of the City or the State, or taxation
in any form of any property to pay the note or the interest thereon.
SECTION IV. Authority. The legal authority for the City borrowing money to construct the
Wastewater Project is pursuant to its home rule authority under Article VII, Section 2 of the
Constitution of the State of Florida and Chapter 166, Part II, Florida Statutes and Chapter 180,
Florida Statutes and pursuant to the City of Longwood Charter. However, this Resolution does
not authorize the borrowing of money, just authorizing the filing of an application seeking loan
approval. j
SECTION V. Conflicts. All resolutions or part of resolutions in conflict with any of the
provisions of this Resolution are heIFeby repealed.
SECTION VI. Severability. If any section or portion of a section of this Resolution proves to be
invalid, unlawful, or unconstitutional, it shall not be held to invalidate or impair the validity,
force, or effect of any other sectionor part of this Resolution.
SECTION VII. Effective Date. This Resolution shall become effective immediately upon its
passage and adoption.
PASSED and ADOPTED this 17'' Day of July 2017.
Resolution No. 17-1435
Page 2 of
CITY OF LQNGWOOD, FLORIDA
D. Sackett,
ATTEST:
1c go, tW, FCRM, City Clerk /
Approved as to form and legality for the use and reliance of the City of Longwood, Florida only.
c�
DanieFW. Langley, YAttpK6;,,�r
Resolution No. 17-1435
Page 3 of 3