19-1490 State Revolving Fund Loan, to Fund Wastewater System Improvement and Expansion ProjectRESOLUTION NO. 19-1490
A RESOLUTION OF CITY OF LONGWOOD, FLORIDA, AUTHORIZING THE
CITY MANAGER TO APPLY FOR UP TO A $2,226,984 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
$2,226,984 (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 If. 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 $2,226,984 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 Manager is hereby given the
Resolution No. 19-1490
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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 three million dollars must be approved pursuant to an ordinance approved by at
least three 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 Pledeed/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.
SECTION V. Conflicts. All resolutions or part of resolutions in conflict with any of the provisions
of this Resolution are hereby 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 section or part of this Resolution.
SECTION VII. Effective Date. This Resolution shall become effective immediately upon its
passage and adoption.
PASSED and ADOPTED this 215t Day of January 2019.
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ATTEST:
City Clerk
CITY COMMISSION
CITY OF LONGWOOD, FLORIDA
By:
Approved as to form and legality for use and reliance by the City of Longwood, Florida only:
Daniel W. L gl y,Pity torney
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