19-1515 Seek Approval for State Revolving Fund Program for Longdale Septic Tank Abatement and Wastewater ProjectRESOLUTION NO. 19-1515
A RESOLUTION OF CITY OF LONGWOOD, FLORIDA, AUTHORIZING THE
CITY MANAGER TO APPLY FOR UP TO A $3,987,000 LOAN UNDER THE
STATE REVOLVING FUND LOAN PROGRAM TO FUND THE CITY'S
LONGDALE SEPTIC TANK ABATEMENT AND 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 Longdale Septic Tank Abatement and Wastewater System Improvements and
Expansion Project estimated to cost $3,987,000 (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 IL 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
$3,987,000 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
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in this Resolution. Further, the City 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 in an amount of $3,000,000.01 and up to and including $6,000,000.00 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 Pledged/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.
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PASSED and ADOPTED this 16th Day of December. 2019.
City Commission of the City of Longwood
City Clerk
Approved as to form and legality for the City of Longwood's reliance only.
Daniel W. Lan y, City Attorney
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Matt Morgan, Mayor